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May 23 2013

16:33

The newsonomics of value exchange and Google Surveys

whittier-daily-news-google-survey-paywall

What happens when a reader hits the paywall?

Only a small percentage slap their foreheads, say “Why didn’t I subscribe earlier?” and pay up. Most go away; some will come back next month when the meter resets. A few will then subscribe; others just go elsewhere.

So what if there were a way to capture some value from those non-subscribing paywall hitters — people who plainly have some affinity for a certain news site but aren’t willing to pay?

Welcome to the emerging world of value exchange. It’s not a new idea; value exchange has been used in the gaming world for a long time. As the Zyngas have figured out, only a small percentage of people will pay to play games. So they’ve long used interactive ads, quizzes, surveys, and more as ways to wring some revenue out of those non-payers.

It’s a variation on the an old saw that says much of life boils down to two things: money and time. It also brings to mind the classic Jack Benny radio routine, “Your Money or Your Life.” If people won’t pay for media with currency, many are willing to trade their time.

Now the idea is arriving at publishers’ doorsteps. It is being tested mainly, but not exclusively, as a paywall alternative. Yet, as we’ll see it, there may be many other innovative uses of time-based payment.

In part, this is part of the digital generational shift we might call “beyond the banner.” Static, smaller-display advertising is increasingly out of favor, with both prices and clickthrough rates moving deeper into the bargain basement. But marketers want to market, readers want to read, and viewers want to watch, so new methods that combine the marketing of brands and offers and the go-button on media consumption are au courant.

That’s where value exchange fits. Publishers are seeing double-digit, $10-$19 CPM rates from value exchange, and that’s more than many average for their online advertising. Annual revenues in the significant six figures are now flowing in to the companies that have gotten in early on the business.

The big player in publisher-oriented value exchange is Google Consumer Surveys (GCS), a year-old brainchild born out of the Google’s 20-percent-free-time-for-employees program (and first written about here at Nieman Lab). GCS now claims more than 200 publisher partners, including the L.A. Times, Bloomberg, and McClatchy properties. It says it has so far exposed some 500 million survey “prompts” to readers.

GCS will soon have more company in the value exchange game. Companies like Berlin-based SponsorPay, which offers interactive ad experiences in exchange for access mainly to games, is beginning to pursue publisher possibilities, both in Europe and the U.S, where half of its current clients are based. SponsorPay emphasizes mobile and social in its business.

L.A.-based SocialVibe, newly headed by hard-charging CEO Joe Marchese, is an ad tech company. It’s mainly oriented to non-newspaper media, especially TV companies.

How does this value exchange exactly work? Typical is the implementation at one smaller paper, the Whittier Daily News in the L.A. area., one of some 35 Digital First Media papers (both MediaNews and Journal Register brands) that have deployed GCS almost since its inception. Upon reading their 10th, and last, free metered article of the month, readers get a choice: buy a sub for 99 cents for the first month — or take a survey. “Do you own a cat?” for instance.

Publishers get a nickel for each completed response. Response rates tend to fall between 10 and 20 percent. “Completion rates” improve by targeting specific questions to specific audiences. The nickels add up.

For publishers, then, we have a new acronym: PAM, Paywall Alternative Monetization.

Consider the innovation a by-product of the paywall revolution. If you haven’t created a barrier to free access, you have less leverage to force wannabe readers to choose the lesser of two choices to proceed with their reading. Now, publishers can say, pay me for access with money — or with time. The time is short — measured in seconds or maybe minutes, depending on a video’s length or a survey’s questions.

What does the consumer get for answering a question? It varies. Respondents can get as little as a single “free” article, or an hour, or a day of access.

These programs can offer side-by-side offers. For instance, someone like a Press+ (which now powers some 380 newspaper sites) may power a subscription offer in one box, and Google Surveys or a SocialVibe can offer up an alternative in a neighboring one.

Digital First Media, long a public skeptic of paywalls, is using value exchange as an adjunct to its paywalls, many of which were deployed before DFM took over management of the MediaNews papers. While it is using it successfully as a paywall alternative, says Digital First Ventures managing director Arturo Duran, it’s also finding a couple of other ways to wring money out of surveys.

At many of its digital properties, including The Denver Post, its photo- and video-heavy Media Center hub offers Google surveys as speed bumps for continued access. Readers perceive value; enough of them are willing to pay with a few seconds of time to keep getting access to visuals. Similarly, Boston.com’s The Big Picture “news stories in photographs” uses GCS.

This approach, putting up a speed bump — in the form of a survey — instead of paywall explores the nuances of differing consumer valuation of differing parts of news sites. The Texas Tribune has offered a similar approach, having used Google surveys on its extensive data section. How often a survey is deployed can be adjusted by the publisher, working with Google, to maximize both revenue and reduce traffic lost. The search here is for the magic sweet spots.

The Christian Science Monitor is also an earlier surveys adopter. “We don’t have a paywall,” says online director David Clark Scott. “So we tried an experimental speed bump.” Those bumps were installed first on a single section, and now have grown, popping up on much of the site. One CSM twist: If you come to the site directly, you won’t see the surveys. If you come via some search, social, or other referrals, you will.

Digital First is also testing survey deployment for a group notoriously hard for the news industry to monetize: international readers. “We can’t sell [ads] in Kenya, Japan, and India,” says Duran. Instead of fetching bottom-of-the-ad-network prices, as low as 25 cents, surveys can return money in the whole dollars. One lesson so far: “It’s a much better experience than an ad,” for many readers, says Duran.

Publishers are also finding other ways to get readers to “pay.” At the Newton (Iowa) Daily News, the paywall also provides these two alternatives: answer a survey question or a share an article (via Twitter, Facebook, or Google+) in exchange for continued passage.

“It wasn’t about market research at all — it was about trading time for content,” says Paul McDonald, head of Google Consumer Surveys. McDonald, who developed the product along with engineer Brett Slatkin, says they tested out what people would most likely be willing to do, in exchange for some good. They tested a million impressions at The Huffington Post and found that question-answering was the most likable activity. Hence, Google Consumer Surveys.

“Most research is stuck in old ways — paper, email, and phone. It’s a stagnant industry, ” McDonald says. The industry, of course, has responded, offering its own critique of GCS’ rapid-fire — surveys can be commissioned and deployed within a day, with complete results, broken down by customized demographics (at an extra cost to survey buyers) within 48 hours — disruption of the market survey space. Still, industry reaction is more than mixed, with the positives of Google’s new technique winning adherents among bigger brands and smaller businesses. It’s a self-service buying technique, borrowing from Google’s flagship AdWords model.

Interestingly, Google itself is using Surveys to obtain consumer insight. Yes, the company that derives more data from our clicks than anyone still finds asking a human being a question can yield unexpected learning — which, of course, can be combined with clickstream analytics. YouTube is among the many GCS deployers.

It’s a new frontier, and one that I think offers a number of curious potentials.

  • At scale, if there is scale to the business, it’s about significant new sources of revenue.
  • As a paywall alternative, it may be a detour that leads back to the road to subscription. If a reader is engaged enough with a news brand over time — kept engaged in part through value exchange — maybe he or she will eventually subscribe. Does a value exchange-using customer have a higher likelihood of subscribing in the future? It’s too early to know, but we may have soon have sufficient data to see.
  • Value exchange could expand the ability to gain customer data. Each time someone trades some time for reading, she or he could be asked for an additional piece of profiling information. Essentially “registered,” that new customer becomes more targetable for subscription offers or advertising.
  • We can start to widen the idea of trading time for access. Remember the idea of the “reverse paywall,” espoused by then-Washington Post managing editor Raju Narisetti and Jeff Jarvis? Spend enough time with a news product, and get rewarded, they proposed. Value exchange begins to structure that kind of relationship, providing value both to readers and publishers. Rough equalization of value would be a painful process, but it may be doable through much experimentation.
  • Let’s combine two things: the rise of mobile traffic and value exchange. Mobile may not be ad-friendly, but customers might be far more willing to watch a video or touch through a quick questionnaire on a cell phone — and that can ring a different key on the digital cash register. “Mobile is already more diversified,” says SponsorPay CEO Andreas Bodczek, explaining that it is moving beyond gaming companies for value exchange and will soon include publishers.
  • GCS is an easily deployable tool for small- and medium-sized businesses. As such, it could be an interesting add-on for publishers’ emerging marketing services businesses (“The newsonomics of selling Main Street”). That’s a line Google could allow newspaper companies to resell, just as many resell Google paid search.

April 01 2013

18:15

Shaping technology to the story: The Brown Institute for Media Innovation is finding its niche

The Brown Institute for Media Innovation just began accepting applications from students or alumni of Columbia and Stanford for its second round of Magic Grants. Helen Gurley Brown made headlines last year when she donated $30 million jointly to Columbia and Stanford to found the Brown Institute for Media Innovation, a bicoastal effort toward helping students build “usable tools” for the proliferation of “great content.”

The idea was that combining the engineering prowess of Stanford students with the journalistic know-how of Columbia students would propel innovation in the news industry. To that end, Columbia would construct a $6 million state-of-the-art newsroom within its j-school building (now under construction), and the institute would offer serious grant money — up to $150,000 per team, or $300,000 if it features members from both schools — for projects. Its next batch of Magic Grantees — due to be announced at the end of May — will go a long way toward further defining what a direct collaboration between computer science and journalism can produce.

The quest for personalized TV

The first three Magic Grants were awarded last June. Connecting the Dots is a project by two Stanford students dedicated to drawing out large, complex, data-heavy news stories through logic mapping, similar to the way that metropolitan transit maps simplify networks of trains and busses. Dispatch, a joint startup that already has an app for sale through Apple, helps journalists in crisis scenarios conceal their identities while publishing via mobile device.

The largest team belongs to the third winner, EigenNews — 10 members from both campuses combined. The idea: personalized television, built around a playlist of of national news clips based on the user’s selected preferences (by both category and by show) and by viewing behavior and user voting. (You can sign up and get a daily email update from EigenNews — it works pretty well.)

eigennews-screenshot

The design is meant to provide the user up-to-the-minute broadcast news while filtering out certain types of stories, but to maintain a sense of immediacy, some current very popular current stories make the playlist no matter what. “The playlist strikes a balance between presenting the most important stories currently and those stories that might be of particular interest to you,” wrote Stanford-based team member David Chen in an email. “For the second factor to be more evident, the user’s view history has to contain a sufficient number of samples.” As the project’s description puts it:

We forecast that next-generation video news consumption will be more personalized, device agnostic, and pooled from many different information sources. The technology for our project represents a major step in this direction, providing each viewer with a personalized newscast with stories that matter most to them…

Our personalized news platform will analyze readily available user data, such as recent viewing history and social media profiles. Suppose the viewer has recently watched the Republican presidential candidates debate held in Arizona, an interview with a candidate’s campaign manager, and another interview with the candidate himself. The debate and the candidate’s interview are “liked” by the viewer and several friends on Facebook. This evidence points to a high likelihood that a future video story about the Republican presidential race will interest the viewer. The user’s personalized news stream will feature high-quality, highly-relevant stories from multiple channels that cover the latest developments in the presidential race.

Chen said the EigenNews team wants to incorporate more sharability in the future — currently, you can generate a link by click a button on the player, but they hope to add comments soon. He also said they’re looking toward a future model that would incorporate more local coverage and user-generated video content.

“Seeing situations where the journalism is leading”

Mark Hansen, who was appointed director of the Columbia side of the Brown Institute last fall, says he imagines some form of the EigenNews project will probably live on. “That work is work that Bernd [Girod, his Stanford counterpart] does as part of his research program, so my guess would be that some part of that work will be funded consistently.” Hansen will be overseeing the administration of the second round of funding. Coming from the Center for Embedded Networked Sensing at UCLA, where he gradually began to realize the implications of data journalism, he is a blend of journalist and statistician.

“Over the course of my ten years at UCLA, the Center shifted…to more participatory systems, where we were encouraging the public to get involved with data collection. As we started working with community groups, as we started reaching out to high schools, the character of the enterprise changed,” he says. While sensor networks are opening up the power of public data, coordinating the gathering, calibration, analysis, and dissemination of that information is no small order. Hansen says that realization has honed his understanding of the important role that journalists play. His students learn to code — not just how to work with engineers who code — but what he’s most interested in are projects whose genesis is a journalistic question, not a technological advancement.

“I’m interested in seeing situations where the journalism is leading. Where there’s some story that needs to be told, or some aspect of a story that can’t be told with existing technology, but then drives the creation of a new technology,” he said. “As opposed to, ‘Look, we made tablets — okay, now you guys tell stories around tablets.’”

Since moving to Columbia, Hansen has had ample opportunity to observe the interplay of hard science and journalistic practice. He teaches a course on computational journalism, and he says the transition from teaching statisticians to journalism students has been enlightening. “When you teach a statistician about means, for example, their comment on the data will end with ‘The mean is 5.’ The journalist will say: ‘The mean is 5, which means, compared to this other country, or five countries, or other neighborhood…’ The journalists will go from the output of the method to the world. They contextualize, they tell stories — Emily Bell calls this narrative imagination — and they are hungrier than any other students I have ever worked with.”

Hansen plans to use the resources of the Brown Institute to recreate the open dialogue and experimentation of the classroom, in hopes of uncovering ideas for projects and prototypes to receive Magic Grant funding. “I’m usually the one writing the grants, not the one giving them away,” he joked. To that end, he’s been in conversation with industry professionals from the likes of ProPublica, The New York Times and Thomson Reuters, trying to figure out “what the interesting questions are,” he says. Defining what Brown can do that is distinct from the other institutes, labs, and other entities in the space is a top priority.

Organizing hackathons and other collaborative events is another route Hansen wants to explore. He is interested in a hackathon model with more concrete pedagogical objectives than the typical open-ended approach. The Brown Institute has already hosted a data hackathon, as well as a conference Hansen calls a “research threeway,” after the three sectors he aims to bring together — journalism, technology, and “opportunity” (that is, funding). Mixing speakers with journalism, media, and engineering backgrounds resulted in a “beautiful collision of language,” he said, and some intriguing ideas.

“There was a nice conversation around serendipity, especially as it connects to large data sets. I think often times we fall back on a kind of search metaphor where we are constantly googling something. If we don’t know what it is we’re looking for, how do we activate an archive, how do we activate a data set? How do you engineer serendipity?”

Building a space

Meanwhile, Hansen has also been overseeing some engineering in a more concrete sense. He hopes to unveil the Brown Institute’s newsroom by summer 2014, a two-story facility which he says draws inspiration from both traditional newsrooms and the “large, open, reconfigurable workspace” that we associate with startups and tech incubators. The space will feature a mezzanine, transparent conference rooms, and shared workspaces called “garages.” It’ll be a wireless office space with flat panel displays and a number of projectors, shared by Brown grantees, fellows, and faculty. “Emily Bell will be teaching a class on the sensor newsroom, a kind of pop-up newsroom,” Hansen says, “and that space will be the perfect space to try out the ideas that are coming out of that class.”

Hansen says one of the most rewarding parts of his directorship so far was having the chance to share the plans for the newsroom with donor Helen Gurley Brown just before she passed away last August. Both the architects and the web designers for the Institute’s new website were told to use the creative output of Brown and her husband, film producer David Brown, as a design compass. As a result, the website will feature a rotating color palette, updated on a monthly basis to reflect covers from Cosmopolitan magazine throughout Brown’s career.

Running a bicoastal institute is not without its challenges, and the hope is that the new space in New York and a newly unified website should help to deal with those. Stanford grantees and fellows don’t have a centralized office space like their New York counterparts, but travel costs are covered by Magic Grants for bicoastal projects and regular project reviews.

Still, Hansen says figuring out how to operate as one entity has been challenging. “Not only is [Stanford] 3,000 miles away, and not only is it two different disciplines,” he says, “but it’s also the quarter system and the semester system, and three hours’ [time] difference — every little thing you could imagine is different is different.” In addition, engineering grad students study for four to five years, while Columbia’s main graduate journalism program is only one year long. To allow the journalism students equal opportunity to participate, they’ll be eligible to apply for Magic Grants as part of an additional, second year. Says Hansen: “We’re doing what we can to make it feel like a cohesive whole.”

The Brown Institute is also invested in ensuring that, when it funds successful projects, they have the opportunity to live on. While grant winners can apply for a second year of funding, Hansen is also focused on communicating with private investors, companies, and other foundations. He’s particularly excited about the potential addition of computational journalism to the National Science Foundation‘s official subfields, which would open up significant additional funding for Brown Institute alums.

“It does really feel like a great moment to be thinking about technology and storytelling, technology and journalism,” Hansen says. But in addition to using technology to propel the journalism industry into the future, he takes cues from the memory of the Browns, and hopes to shape the Institute into something that reflects them both.

“Helen and David were showmen, if you will,” Hansen says. “They really understood audiences and how to tell a good story.”

August 23 2012

15:46

The newsonomics of a New York Times + CNN combination

Mark Thompson faces a defining and daunting challenge: Lead The New York Times on that thin tightrope to a new stability, one tethered to the digital world. We’ve seen lots of good ideas already freely offered to the incoming NYT CEO. Let me offer a new one.

Let’s imagine what a New York Times/CNN combination would look like — and what it could do for both companies. Combination? Yes, a purposely squishy word. I’m not talking about a merger of the companies. I’m thinking about what each company offers the other strategically, at this point in media history, and how each could see its business advanced. We’ll leave the messy details of corporate development, of partnership, of joint venture, for a later day.

So why put these two entities closer together? Two big reasons provide some logic.

First, the marketplace is pushing companies toward convergence. The worlds of completely separate TV (video), newspapers/magazines (text), and radio (audio) have simply been overwhelmed by the reality of consumption devices that bring all three together for us — the iPad being the current crown of creation. But the legacy roots of each medium has made it really tough to either (re-)build truly multi-platform companies or forge newspaper/TV alliances (Tampa, Chicago, etc.) that work. Logic compels greater multi-platform creation; inevitably that will mean new combinations of legacy companies, even as legacy companies try to remake themselves internally.

Second, both CNN and The New York Times fill in numerous of the other’s weaknesses. At this digital moment when “mobile” and the tablet are tossing old habits up in the air and forcing consumers to re-form new ones, it’s a great time for both the Times and CNN to double down on their native advantages, and make their products no-brainer top-three places to go in the news everywhere-and-anywhere world.

For CNN, a partnership could be part of a strategy to reclaim its mojo after seeing TV ratings drop to 21-year lows. For the Times, having turned small corners in the last year, it’s a way to increase its sense of momentum, separating itself from the pack of other top news sources.

The timing is near-perfect. Mark Thompson, after all, comes to the Times as a broadcaster. With a 33-year TV career, he knows TV, and he knows the Times is just beginning to escape its print roots. Scaling the wall of video/TV, where huge revenues still exist, is one of his daunting challenges. He is one of the few people who could have taken the job who brings both a broadcast background and one of airtight news credibility, given the BBC’s standards. He is the perfect person to imagine a strong video/TV presence for the next-gen Times. The Times is looking currently at what a major investment in video would look like; how does it climb the incremental mountain with the next generations of TimesCasts?

CNN is searching for recently resigned president Jim Walton’s successor. While the 32-year-old network’s staff debates the realities and fantasies, and CNN-directed truths, of Aaron Sorkin’s “The Newsroom,” the once top-of-the-heap TV news source faces a fundamental identity crisis and big strategic moment. It has wavered along hard/soft news lines and in programming choices, spun into a dither by Fox News’ Roger Ailes and MSNBC’s Phil Griffin.

Now the next CNN president must renew brand purpose and internal pride. Focus on news — especially adding to its forte of who, what, and where the why and how aspects of news as it has been edging into (The Freedom Project, an award-winning series on human trafficking, and Saving Aesha, for example) — or play with more entertainment/personality positioning? Worry about the Foxes and the MSNBCs, or grab the moment of the greatest potential global news reach technology and literacy has ever made possible?

There are smaller plays for both, to be sure. CNN’s been around the block with CBS News, talking news merger, but those talks foundered on issues of control and culture. The Times has tried all manner of tests, from longer-standing ones with Google to newer ones with Flipboard.

What both need is a game changer: a move that will simultaneously do three things:

  • Rocket it ahead of the news competition, as consumers decide those handful of must-go-to news sources they’ll visit each day, across their many screens.
  • Add a large new dimension of content to its current brand. While both the Times and CNN have lots of content, both — as is the case of all news companies — can use more to satisfy insatiable digital reading appetites.
  • Create a strong, new revenue line, as both see traditional lines weakened by market change.

Before I get to how a game-changer may work, let’s try this as a simplified chart to compare the two companies:

The New York Times CNN Brand Ascendant; mobile apps have now separated NYT from other “newspapers”; digital circulation has newly marked NYT as innovator Ubiquitous in U.S. and worldwide; its image — what it stands for — is unclear Top leadership CEO Mark Thompson begins in November Search on for replacement for President Jim Walton Audience Top-five web site; newspaper circulation flat Top-three web site; TV ratings at 21-year low Revenue Reader revenue, newly revived and growing, with all-access digital circulation programs; online advertising under pricing pressure, and by ad marketplace change; print advertising in 5-10 percent annual decline. Net loss of $39.7 million (2011) Cable/satellite fees, increasingly threatened by low ratings and the potential unbundling of forced consumer packages; advertising, on air and online, both under pricing pressure by ad marketplace change. Profit of $600 million (est. 2012) Global Times moving that way, with ~10 percent of paying digital-only customers outside U.S.; new China site By definition, global and recognized globally. Great worldwide distribution and name recognition TV culture/experience Experimenting, unevenly, with “video” It’s a TV company Text culture/experience It’s a newspaper company Experimenting, unevenly, with “text” Content Deep, authoritative, agenda-setting; fairly good breadth, but the deep web is exposing its areas of weakness Immediate, wide, truly global, largely authoritative; good breadth, and worldwide, though subpar to AP Access to TV platforms Minimal Ubiquitous Revenue sources Readers, advertisers Cable/satellite cos., advertisers Aggregator chops Little developed; a powerful potential for adding breadth to its brand Little developed, but it bought top-three tablet aggregator Zite Community-generated content Fledgling efforts have gone awry CNN’s iReport is a prototype for user-generated reporting; if those CNN/Mashable talks work their way to completion, CNN would have a leg up on social media journalism Wire Longstanding NYT wire and syndicate are mature Newer CNN wire fighting for place in market

There’s clearly a complementarity here that makes sense — on paper. How might it work in reality?

It’s easiest to see how the two might exploit two green fields, areas so new neither has as much ego or business invested.

If we look at the coming five screens of access, it is the emerging two — connected TV and connected car — that are most virgin, while laptop/desktop, smartphone and tablet are already deeply competitive. Both connected TV and connected car offer many new product opportunities and access to new revenue. A partnership could focus on those two, as the least threatening way to combine smarts and assets.

More immediately, we could see a new focus on tablet and smartphone products. For starters:

  • Next-generation news video products for the tablet: The Wall Street Journal has burst out of its word box this year with a major emphasis on video. It has just begun to leverage its deep journalistic expertise, though the presentation is still more talking head than “TV.” Combining the beat expertise of New York Times journalists with CNN TV smarts — and its own formidable behind-the-scenes journalistic workforce — offers breakout potential for tablet video news. CNN’s journalist workforce numbers is a hard number to compare to the Times’ 1,150 journalists; how do you count those who provide the technology to present the journalism? Yet CNN’s journalists often get short shrift in the press, which favors endless Wolf Blitzer and Anderson Cooper stories. Here’s one area where print is superior: In the breadth of The New York Times’ Sunday edition, for instance, you can see the great stretch of its journalistic talent. With the flat screen of the TV or the computer or tablet, you can’t see the rich CNN reporting behind its facade.
  • The leading global news product: Everyone from Bloomberg to the FT and BBC and from the Journal to the Times and the Guardian, is now moving on the vast global opportunity (English-speaking and otherwise). No longer must the Brits be satisfied with their one percent of the world market, or Americans with five percent. Here both CNN and the Times are among the top contenders. With 32 journalists outside the U.S. and 24 foreign bureaus, the Times has maintained a global presence, when most of its print brethren have severely cut back. CNN’s 33 foreign bureaus and vast carriage across the world lay continued claim to its birthright. If you are overseas and watch CNN International, it’s a night-and-day different product than CNN U.S.; adding the Times to the mix would lengthen its international lead.
  • Reinventing the “wire”: CNN’s wire, launched in 2009, marked its emergence from AP. The goal: compete with AP, leveraging its substantial journalistic investment with syndication, selling the same content to many, many others. That wire, like many competitors to AP and Reuters, has found tough going against the incumbents. Meanwhile, The New York Times’ wire and syndicate face the same struggles of most in that niche wire business: maturity at best, holding on to as much of the old, dwindling print world as they can. A combined “wire,” focusing on those next-generation syndicatable digital/mobile products, could harvest joint assets well.

Then, there’s the web in general and TV, the former where both engage in head-to-head combat and the latter in which CNN, though struggling, is the incumbent and NYT the wannabe. The hurdles to cooperation, there, are highest, though the payoff may be the greatest.

For CNN, the questions would be: How could TV people harness the added depth of The New York Times’ report and intelligence? How could it marry its video and text in new state-of-the-art ways?

While CNN is now much more profitable than the Times, the fragmentation and disruption of TV business models is happening quickly (see “The newsonomics of breakthrough digital TV, from Aereo to Dyle and MundoFox to Google Fiber TV”). A Times partnership could help CNN find ways to create new news and information products that consumers will pay for, as the Times has now nimbly done, with its digital circulation initiative.

For The New York Times, the questions would be: How could text-based journalists move into the next generation of multimedia storytelling, bringing over their craft and standards, but learning new skills? How could video be graft onto the Times DNA, make the Times the company it needs to be in the next age?

How could the Times tap into the revenue stream of TV access, either through programming that cable and satellite companies would pay then for, as they pay Time Warner/CNN? It isn’t as if Times reporters haven’t been well-used on broadcast. NPR does a masterful job of that, but the Times gets no revenue out of the relationship. That’s the key: wringing TV money out of a deal.

For both, the tasty intangible: Would a combination of two of the best brands in news world reinforce and heighten each side’s? Of course, there are lots of reasons why it wouldn’t, couldn’t or shouldn’t work. Yet, it if did, it would give real meaning to convergence — finally — as the old demarcations of print and TV fast erode.

It’s easy to tick off the numerous factors that make it difficult: control, valuation and culture top the list. It’s at least, though, a whiteboard exercise that allocates strengths and deficits, opportunities and challenges over a five-year time span. That’s the level of thinking, and timespan, that Mark Thompson will need to bring to the Times, as will CNN’s new chief when she or he arrives in Atlanta.

August 07 2012

19:36

'The Currency of Government': Bloomberg.com launches new politics page and 'Political Capital' blog

Bloomberg Blog :: Bloomberg.com today announced the launch of a new Politics page featuring top stories, daily video commentary from Bloomberg’s Al Hunt, a state-by-state analysis of campaign spending and a “Political Capital” blog offering data-rich perspectives and insight.

Run by Deputy Managing Editor for U.S. Government News, Mark Silva and reported by Bloomberg News’ Washington bureau, the “Political Capital” blog focuses on “The Currency of Government,” illuminating the connection between money and governance, the business of campaigns and the impact of the economy on elections.

Announcement here Lauren Meller, blog.bloomberg.com

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Tags: Bloomberg

August 02 2012

18:07

China keeps up block on Bloomberg website

CNN :: Bloomberg's news website remains blocked by China's state censors a full month after it detailed the riches amassed by the family of Xi Jinping, the man who is expected to be the country's next president. Although periodic outages of foreign media websites in China are common, the month-long total blackout of Bloomberg is an unusually harsh response.

A report by Simon Rabinovitch, FT.com, edition.cnn.com

April 19 2012

13:17

The newsonomics of risking it all

Alfredo Corchado was used to getting mortal threats.

He received three in Mexico, but now he was in a Laredo bar, north of the border.

You better stop what you’re doing, or you’ll end with a bullet in your head and your body in a vat of acid, he was told. And then we’ll deliver the bones to your family in El Paso.

It was a chilling warning, or at least we’d expect it to put a chill into Corchado. An investigative reporter for the Dallas Morning News (and a former Nieman Fellow), he’s been covering the ravages of drug trafficking for years, much to the concern of his parents living, as the traffickers plainly know, in El Paso. Yet Corchado goes on with his work — as do Adela Navarro Bello of Tijuana’s Zeta news magazine, Jerry Mitchell of the Clarion-Ledger in Jackson, Miss., and Ramita Navai of the U.K.’s Channel 4. As Navarro Bello explained of her paper’s coverage of the drug trafficking that has consumed at 50,000 Mexican lives, “If we don’t publish this information, we are part of the problem.” (Filmmaker Bernardo Ruiz has captured Zeta’s struggle — including the murder of two of its journalists — with a new movie.)

Each is an investigative reporter who put their lives on the line to reveal stories they think readers must know about. They spoke on the “When the Story Bites Back” panel this weekend, at UC Berkeley, part of the sixth annual Reva and David Logan Investigative Reporting Symposium (live blogging of the conference, here, with a #Logan12 Twitter feed).

That panel and the entire spirited weekend, organized and led by esteemed investigative producer Lowell Bergman, tells us a fair amount about the business of journalism. Though it is not — like most of my work — concerned with the dollars and cents of the business, in its very essence, it describes why the current crazy-quilt economics of the business matters. Funding the journalism business isn’t like funding Sears and Kodak (“The newsonomics of the long good-bye”) or other fading institutions. It’s not even about saving a perhaps-vital American industry, like the auto industry.

It’s about keeping a lifeline of funding open so that our best reporters can do their jobs.

I’ll call it the newsonomics of risking it all because that’s what these reporters do. Many of the other Logan participants and attendees, thankfully, do less life-threatening work. Yet those represented at the conference — from ProPublica, the Washington Post, and New York Times to ABC, NBC, and NPR — are among the cream of the crop of investigative work and produce work with real public interest impact.

As we endlessly debate pay models, whether or not to work with Facebook, how to deal with Apple and Amazon and multi-platform journalism, the Logan Symposium is good tonic — certainly for those of us who attended, but really for all of us who know why this business matters to democracy. Whether and how the economics of the new news business work out isn’t an arcane question; it’s central to our collective future. The value of good, deep reporting is truly priceless.

So what about the state of investigative reporting? Look at the glass as half full and half cloudy.

What emerged from the conference, surprising to some, is that national investigative reporting is keeping its head above water. Both NBC and ABC talked about their expansions in the investigative area, while companies like NPR and Bloomberg have put new resources in as well. Units at the Post, L.A. Times, and New York Times may not be growing much, but seem to be sustaining themselves, for now.

“For now” is an important qualifier, and New York Times managing editor Dean Baquet’s opening interview at Logan, in its over-the-top self-assurance, bothered many of the conference participants with whom I talked.

Washington Post investigative editor Jeff Leen suggested that there were 200 investigative reporters paid by news media in the U.S., which I calculate as one for every 1.5 million Americans. That’s not a ratio that’s going to hold many big institutions — government, business, labor — to account. Maybe that’s why as Logan participant and new-media vet Neil Budde tweeted, “How many times will ‘existential’ be used this weekend? I think count is six so far.”

Importantly, it is largely the largest news media — mainly national and global ones — that continue to put money into investigative work; these are the Digital Dozen companies I identified in my Newsonomics book. For them, as NBC senior executive producer David Corvo put it, investigative work is a “differentiator,” important to distinguishing big news brands from one another in the digital age.

What’s going on regionally is more of a patchwork.

Dozens of people like the Logan family are using their wealth to fund investigative enterprises from coast to coast, most with little fanfare. The Knight Foundation, represented at the conference by its senior advisor and grant-giver extraordinaire Eric Newton, has put $20 million into investigative journalism. With the decline in newspaper budgets, and thus in funding of investigative teams at many regional papers, such private funding has been a lifeline, though there’s a profound sense that significantly less in-depth work is being done at former powerhouse regional papers.

This Logan conference lacked the always-odd spontaneity of a Julian Assange appearance, but it offered intriguing emphases:

  • Front and center, though not appearing in person was Rupert Murdoch. After screening “Murdoch’s Scandal,” Bergman’s Frontline documentary that aired March 27, “The Murdoch Effect: News At Any Price,” made for a raucous panel. Milly Dowler attorney Mark Lewis told how the phone hacking scandal had consumed his life and spoke of the “commercial despotism of Murdochracy” in the U.K., given the News Corp. CEO’s multi-party, decades-long influence. Big questions: What next, and if and how this tale plays out in the U.S.
  • “If it’s not on TV, the American public doesn’t know it,” observed Diana Henriques, the New York Times financial investigative reporter. Yes, we may be on the brink of this multi-platform age, where old newspapers like the Times and the Journal do video alongside print, but still — in terms of notice and public action — there’s nothing like the impact of TV documentary.
  • This is a generational challenge. Journalism has always had its challenges, but never has there been more uncertainty about how one generation can pass along its best practices to the next. Through that foundation funding, a couple of dozen younger journalists and students had their way paid into the conference. Surveying the group on the last day, Robert Rosenthal, executive director of the Center for Investigative Reporting and California Watch, summed his baby-boomer generation’s role: “I’m a bridge — we’re all bridges to the future.”

Bridging is, in part, what Lowell Bergman’s program does. UC Berkeley’s Investigative Reporting Program is a partner in the new Collaboration Central project, along with PBS MediaShift. With new funding, IRP will soon move into a new permanent office. It provides lots of training and fellowships, bringing along new generations to work alongside people like the Pulitzer Prize-winning Bergman, whose career has spanned from early Ramparts through CBS, The New York Times, and Frontline, and who was played by Al Pacino in the tobacco industry exposé The Insider.

Bergman paid tribute to his one-time CBS colleague Mike Wallace, underscoring Wallace’s storied tenacity. That tenacity, based on Wallace’s fierce journalistic power (highlighted at CBS, in story and video), is what it took a non-journalist to highlight in Berkeley.

Jules Kroll, who led the invention of the modern intelligence and security industry, gave the trade good, pointed advice. Saying he had heard a lot of journalists talking about how beleaguered they are, he noted, “You have a big impact.” His shared his inside view of the power of a good investigation. Colloquial translation: Stop whining and get on with it.

And that’s always good advice. As ProPublica managing editor Steve Engelberg aptly said, “They were whining in 1989, when times were good.” That’s true. There may be more to whine about these days than in 1989, but the power of great public service work, sometimes when lives are on the line, is one of the things that must propel the trade forward.

Photo of Alfredo Corchado by the U.S. embassy in Paraguay used under a Creative Commons license.

April 13 2012

19:24

Bloomberg Businessweek: How well can magazine content work on the iPhone?

Nieman Lab :: Bloomberg Businessweek is testing a question: How well can magazine content work on the iPhone? Magazine companies have jumped feet first into the iPad marketplace, attracted to the idea that a lean-back medium like magazines would work well in a lean-back platform like tablets. But they’ve proven less interested in jumping onto iPhones and other smartphones — a target market that, while possibly less magazine-friendly, is also much larger.

The Bloomberg Businessweek+ app crossed that divide.

Continue to read Justin Ellis, www.niemanlab.org

February 09 2012

20:05

Thomson Reuters and Bloomberg compete for the Financial Times

Guardian :: Let me follow a rumor in real time … My lunch companion, a senior executive at Thomson Reuters – where, it seems, just about every journalist of a certain age and experience is going to work, or wants to go to work – drops a passing remark about how, at Thomson Reuters, they might use the Financial Times. Then, this is contrasted with how the FT might be used at Bloomberg, Thomson Reuters' great rival, and the other place where all out-of-work, or worried-that-they-soon-will-be-out-of-work, journalists want to be.

Then, it trips out, according to my friend – said quite unselfconsciously, rather as though it should be obvious to all; for a moment, I actually think I've somehow missed the story – that the FT, having flirted with and then turned down an acquisition offer from Bloomberg, is now talking to Thomson Reuters.

Continue to read Michael Wolff, www.guardian.co.uk

February 03 2012

15:26

Daily Must Reads, Feb. 3, 2012

The best stories across the web on media and technology, curated by Lily Leung.

1. Netflix and WaPo bought a combined $8M in Facebook ads last year, IPO says (All Facebook)



2. Analysis: A sobering look at Facebook (Reuters)



3. How the Huffington Post became a new-media behemoth (GigaOM)



4. News Corp. names Bloomberg exec as Dow Jones CEO (The Wrap Media)



5. Tumblr has hired its first executive editor (Reuters)



6. New York Times to expand health blog (paidContent)



7. Google can't weigh in on 'used' digital music case (Online Media Daily)



8. Google convicted in France for offering free maps (paidContent)




Subscribe to our daily Must Reads email newsletter and get the links in your in-box every weekday!



Subscribe to Daily Must Reads newsletter

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December 13 2011

21:41

AP's new strategy: "The New Disctinctiveness" or the pressure of now

Huffington Post :: As AP's traditional rivals like Bloomberg and Reuters ramp up opinion and analysis -- and as competition increased from the rest of the web -- AP executives realized the organization needed to provide more smart and immediate analysis, video, and interactive features that expand upon the day's news. Senior managing editor Michael Oreskes presented Tuesday in a memo to 3,000 AP staffers worldwide AP's new strategy. It's called "The New Distinctiveness."

Continue to read Michael Calderone, www.huffingtonpost.com

December 11 2011

11:21

Relations between local press and the NYPD had deteriorated before #OccupydsWall Street' protest, lawyers say

Capital New York :: The Occupy Wall Street incidents, which were addressed in a Nov. 21 letter to NYPD brass co-signed by 13 news organizations, and again in a meeting two days later between Police Commissioner Ray Kelly and representatives from several of those outlets, were actually only a recent development in a longer pattern of police-press showdowns stretching back at least to the summer, before Occupy Wall Street was a glimmer in Bloomberg's eye.

Within the past year, Mickey Osterreicher, general counsel for the National Press Photographers Association, began noticing an uptick in complaints from photojournalists—both in New York and other cities—claiming police had interfered with their work.

Continue to read Joe Pompeo, www.capitalnewyork.com

August 02 2011

20:48

Crazy move? - Bloomberg Businessweek increases paid circulation +10pc

Act of desperation or smart strategic move?

AdAge :: Magazines once pumped up paid circulation as far as they could, even if customer acquisition, paper, printing and distribution costs overwhelmed any circulation revenue they got, because advertisers seeking big audiences made it worthwhile. In a rather unusual move for the magazine business these days, Bloomberg Businessweek is increasing the paid circulation it promises advertisers to 980,000 early next year from 900,000 now, more than undoing the prior owner's rate base cut in 2006.

Continue to read Nat Ives, adage.com

July 20 2011

09:50

Bloomberg: Microsoft is said to drop out of auction for Hulu

Microsoft is dropping out of the bidding for Hulu LLC, the online video service put up for sale by its media-company owners, according to a person with knowledge of the matter. The company told Hulu executives last week it wouldn’t continue into a second round, said the person, who wasn’t authorized to talk publicly. The person didn’t rule out Microsoft re-entering later.

Continue to read Ronald Grover | Dina Bass, www.bloomberg.com

July 17 2011

06:55

News without end - Andy Lack, building Bloomberg

Bostonia :: It’s a rainy spring morning in midtown Manhattan, and on the sixth floor of the futuristic glass skyscraper known as Bloomberg Tower, Andy Lack is listening, energetically, as a half-dozen producers run through a short list of potential guests for Bloomberg West, a daily hourlong TV show whose next topic will be Google’s controversial purchase of ITA Software. Lack’s head is bobbing in what could be a favorable opinion as the discussion bounces easily among people in the room and those who are videoconferenced in from Bloomberg’s San Francisco studio. The CEO of the recently formed Bloomberg Media Group twists his bushy eyebrows upward, he leans forward and covers his chin with his long finger—he’s Rodin’s The Thinker with attention deficit disorder. What is it like to 

Continue to read Art Jahnke, www.bu.edu

May 03 2011

22:27

What's the Best Social Media Policy for News Organizations?

So far, most legacy news organizations have been all over the map when it comes to social media policies. The old guard doesn't want reporters and editors to go on Twitter and show bias or give opinions on stories in progress. The new guard wants to mingle with the audience and have some personality on social media. The latest place to put up restrictions is Bloomberg, which asked reporters to join Twitter but "we should not share work in progress or use social media as a vehicle for breaking news."

So what is the right balance for a social media policy? How much freedom should reporters and editors have to engage with people, and how much should be restricted? Vote in our poll below, or share your own thoughts in the comments.




What's the best social media policy for news organizations?online surveys

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March 01 2011

17:30

November 11 2010

16:00

The Newsonomics of journalist headcounts

[Each week, our friend Ken Doctor — author of Newsonomics and longtime watcher of the business side of digital news — writes about the economics of the news business for the Lab.]

We try to make sense of how much we’ve lost and how much we’ve gained through journalism’s massive upheaval. It’s a dizzying picture; our almost universal access to news and the ability of any writer to be her own publisher gives the appearance of lots more journalism being available. Simultaneously, the numbers of paid professional people practicing the craft has certainly lowered the output through traditional media.

It’s a paradox that we’re in the midst of wrestling with. We’re in the experimental phase of figuring out how much journalists, inside and out of branded media, are producing — and where the biggest gaps are. We know that numbers matter, but we don’t yet know how they play with that odd measure that no metrics can yet definitively tell us: quality.

I’ve used the number of 1,000,000 as a rough approximation of how many newspaper stories would go unwritten in 2010, as compared to 2005, based on staffing reduction. When I brought that up on panel in New York City in January, fellow panelist Jeff Jarvis asked: “But how many of those million stories do we need? How many are duplicated?” Good questions, and ones that of course there are no definitive answers for. We know that local communities are getting less branded news; unevenly, more blog-based news; and much more commentary, some of it produced by experienced journalists. There’s no equivalency between old and new, but we can get some comparative numbers to give us some guidelines.

For now, let’s look mainly at text-based media, though we’ll include public radio here, as it makes profound moves to digital-first and text. (Broadcast and cable news, of course, are a significant part of the news diet. U.S. Labor Department numbers show more than 30,000 people employed in the production of broadcast news, but it’s tough to divine how much of that effort so far has had an impact on text-based news. National broadcast numbers aren’t easily found, though we know there are more than 3,500 people (only a percentage of them in editorial) working in news divisions of the Big Four, NBC, ABC, Fox, and CBS — a total that’s dropped more than 25 percent in recent years.)

Let’s start our look at text-based media with the big dog: daily newspapers. ASNE’s annual count put the national daily newsroom number at 41,500 in 2010, down from 56,400 in 2001 (and 56,900 in 1990). Those numbers are approximations, bases on partial survey, and they are the best we have for the daily industry. So, let’s use 14,000 as the number of daily newsroom jobs gone in a decade. We don’t have numbers for community weekly newspapers, with no census done by either the National Newspaper Association or most state press associations. A good estimate looks to be in the 8,000-10,000 range for the 2,000 or so weeklies in the NNA membership, plus lots of stringers.

Importantly, wire services aren’t included in the ASNE numbers. Put together the Associated Press, Reuters, and Bloomberg (though some of those workforces are worldwide, not U.S.-based) and you’ve got about 7,500 editorial staffers.

Let’s look at some areas that are growing, starting with public radio. Public radio, on the road to becoming public media, has produced a steady drumbeat of news about its expansion lately (“The Newsonomics of public radio argonauts,” “Public Radio $100 Million Plan: 100 Journalist Per City,”), as Impact of Government, Project Argo, Local Journalism Centers add more several hundred journalists across the country. But how many journalists work in public broadcasting? Try 3,224, a number recently counted in a census conducted for the Corporation for Public Broadcasting. That’s “professional journalists”, about 80% of them full-time. About 2,500 of them are in public radio, the rest in public TV. Should all the announced funding programs come to fruition, the number could rise to more than 4,000 by the end of 2011.

Let’s look at another kind of emerging, non-profit-based journalism numbers, categorized as the most interesting and credible nonprofit online publishers by Investigative Reporting Workshop’s iLab site. That recent census includes 60 sites, with the largest including Mother Jones magazine, The Christian Science Monitor, ProPublica, the Center for Investigative Reporting, and and the Center for Public Integrity. Also included are such newsworthy sites as Texas Tribune, Bay Citizen, Voice of San Diego, the New Haven Independent and the St. Louis Beacon. Their total full-time employment: 658. Additionally, there are high dozens, if not hundreds, of journalists operating their own hyperlocal blog sites around the country. Add in other for-profit start-ups, from Politico to Huffington Post to GlobalPost to TBD to Patch to a revived National Journal, and the journalists hired by Yahoo, MSN and AOL (beyond Patch), and you’ve got a number around another thousand.

How about the alternative press — though not often cited in online news, they’re improving their digital game, though unevenly. Though AAN — the Association of Alternative Newsweeklies — hasn’t done a formal census, we can get an educated guess from Mark Zusman, former president of AAN and long-time editor of Portland’s Willamette Week, winner of 2005 Pulitzer for investigative reporting. “The 132 papers together employ something in the range of 800 edit employees, and that’s probably down 20 or 25 percent from five years ago”.

Add in the business press, outside of daily newspapers. American City Business Journals itself employs about 600 journalists, spread over the USA. Figure that from the now-veteran Marketwatch to the upstart Business Insider and numerous other business news websites, we again approach 1,000 journalists here.

What about sports journalists working outside of dailies? ESPN alone probably can count somewhere between 500 and 1000, of its total 5,000-plus workforce. Comcast is hiring by the dozens and publications like Sporting News are ramping up as well (“The Newsonomics of sports avidity“). So, we’re on the way to a thousand.

How about newsmagazine journalists? Figure about 500, though that number seems to slip by the day, as U.S. News finally puts its print to bed.

So let’s look broadly at those numbers. Count them all up — and undoubtedly, numerous ones are missing — and you’ve got something more than 65,000 journalists, working for brands of one kind or another. What interim conclusions can we draw?

  • Daily newspaper employment is still the big dog, responsible for a little less than two-thirds of the journalistic output, though down from levels of 80 percent or more. When someone tells you that the loss of newspaper reporting isn’t a big deal, don’t believe it. While lots of new jobs are being created — that 14,000 loss in a decade is still a big number. We’re still not close to replacing that number of jobs, even if some of the journalism being created outside of dailies is better than what some of what used to be created within them.
  • If we look at areas growing fastest (public radio’s push, online-only growth, niche growth in business and sports), we see a number approaching 7,500. That’s a little less than 20 percent of daily newspaper totals, but a number far higher than most people would believe.
  • When we define journalism, we have to define it — and count it — far more widely than we have. The ASNE number has long been the annual, depressing marker of what’s lost — a necrology for the business as we knew it — not suggesting what’s being gained. An index of journalism employment overall gives us a truer and more nuanced picture.
  • Full-time equivalent counts only go so far in a pro-am world, where the machines of Demand, Seed, Associated Content, Helium and the like harness all kinds of content, some of it from well-pedigreed reporters. While all these operations raise lots of questions on pay, value and quality, they are part of the mix going forward.

In a sense, technologies and growing audiences have built out a huge capacity for news, and that new capacity is only now being filled in. It’s a Sim City of journalism, with population trends in upheaval and the urban map sure to look much different by 2015.

Photo by Steve Crane used under a Creative Commons license.

October 28 2010

14:00

The Newsonomics of the third leg

[Each week, our friend Ken Doctor — author of Newsonomics and longtime watcher of the business side of digital news — writes about the economics of the news business for the Lab.]

Most publishing stood proudly and stably on two feet, for decades.

You got readers to help pay for the product. And you got advertisers to pay as well. While American newspapers dependably got 20 percent of their revenue from readers, European ones have gotten more than 30 percent and Japanese ones more than 50 percent. In the consumer magazine, trade, and B2B worlds, the splits vary considerably, but the same two legs makes the businesses work.

Even public radio, seemingly a different animal, has followed a similar model. Substitute “members” for subscribers and “underwriters” for advertisers, and the same two-legged model is apparent.

In our digital news world, though, the news business has been riding, clumsily, a unicycle for more than a decade. Revenue — other than the Wall Street Journal’s and the Financial Times’ — has been almost wholly based on advertising. So, that’s why we’re seeing the big paid content push. “Reader digital revenue in 2011!” is the cry and the quest, as the News Corp. pay walls have gone up, Journalism Online hatches its Press+ eggs, The New York Times prepares to turn on its meter, and Politico launches its paid e-newsletters. They all have the same goal in mind: digital reader revenue.

The simple goal: a back-to-the-future return to a two-legged business model. (See Boston.com’s New Strategies: Switch and Retention). We’ll see how strong that second leg is as 2011 unfolds.

While two legs are good, and better than one, consider that three would be better still. Three provide a stronger stool, and a more diversified business. We’re beginning to see a number of third legs emerging. So it’s look at the emerging newsonomics of the third leg.

The clearest to see is foundation funding. Foundations, led by Knight, have been pouring money into online startups. The startups, of course, are selling advertising and/or sponsorship, and some are selling memberships, as well. In addition to those same two legs, foundation funding provides a third leg — at least for awhile. Our 2010 notion is that foundation funding isn’t a lasting revenue source, but a jumpstart; that may change as we move toward 2015. We may well see foundation funding turn into endowments for local journalism, so it may become a dependable third leg.

Make no mistake: It’s not just the new guys who benefit from foundation “third leg” funding. Take California Watch, the Center for Investigative Reporting’s statewide investigative operation. Barely a year old, its dozen-plus staffers have written stories that have appeared throughout the traditional press, from major dailies to commercial broadcasters to the ethnic press. California Watch work — at this point wholly funded by foundations, though CIR, too, is looking back to the traditional legs for future funding — then is used by the old press both to improve quality and cut their own costs. So, indirectly, the old press derives benefit from this third leg of foundation funding.

Take a couple of examples from the cable industry. We’ve seen the Cablevision model, as the New York-based company bought Newsday, took the website “paid” and bundled it with its cable subscriptions. The notion, here: Cablevision is driving “exclusive” value for its cable (and Triple Play) offers by offering Newsday online content, content not otherwise available without paying separately (or subscribing to print Newsday). Newsday.com sells advertising, and online access, but the real value being tested is what its content does to spur retention and new sales in Cablevision’s big business: cable.

Similarly, Comcast — a pipes company fitfully becoming a content company as well as it tries to complete its NBCU deal — is making a big investment in digital sports. Headed by former digital newspaper exec Eric Grilly, ex of Philly.com and Media News, it’s a big play. Well-deployed in five cities — Chicago, Boston, Philadelphia, the Bay Area and Washington D.C. — and headed for nine more, all in which it runs regional sports cable networks. Comcast Digital Sports now employs more than 80 people and is producing more than 50 hours of programming a week in each market.

While Comcast is ramping up advertising sales and may test paid reader products as well, it’s that same third leg — the cable revenue — that is the biggest reason behind the push. “We want to provide value to the core business,” Grilly told me last week.

In the cable cases, news production can be justified because it feeds a bigger revenue beast. Thomson Reuters and Bloomberg’s large news staffs do the same, feeding bigger financial services businesses.

Lastly, let’s consider the new Associated Press-lead push for an industry-wide “rights consortium.” While its daily newspapers try to stand taller on the two legs of digital ad and reader revenue, the business that could emerge from this new company is about syndication. In that sense, it could be a business-to-business-to-consumer (B2B2C) push, aimed at a third growing revenue source for all, as news content un-tethered from publishers’ own branded sites is used — and monetized — across mobile platforms, mixed and matched in all kinds of ways.

Maybe, overall, it’s a regeneration process for the news business, as the old legs have grown weaker, the environment is forcing evolutionary experimentation. Over the next several years, we’ll see which third legs survive and prosper, and which others become dead ends.

Photo by This Particular Greg used under a Creative Commons license.

October 18 2010

17:30

Online journalist cuffed in Alaska explains his biz model

When I talked with the editor of a startup news site in Alaska, Tony Hopfinger, last week, he told me his business model is based on cultivating an audience inside the Frontier State, while still writing stories with a national appeal. Proof of concept! Hopfinger was handcuffed by Senate hopeful Joe Miller’s private security guards at a public campaign event Sunday in Anchorage — a story picked up by big political blogs, cable news, and the Associated Press.

The site, Alaska Dispatch, was down last I checked, but perhaps that’s just proof of Hopfinger’s concept.

“Alaska has a lot of appeal beyond its borders,” Hopfinger told me a few days before the cuffing incident, referring to politics (you may have heard of up-and-comer Sarah Palin), industry, and environment stories. “Certainly we are focused on building our Alaska readership, but we also have readers interested in the state beyond.”

Hopfinger started the site during the 2008 presidential race when he was stringing for national news outlets like Bloomberg and Newsweek.

In the spring, Hopfinger raised investment money from now-publisher Alice Rogoff, formerly the CFO of U.S. News and World Report, to expand his staff. The site now employs 10 reporters and editors, plus a small ad sales team. Hopfinger hopes good reporting with a hybrid local-national appeal will draw in enough advertising to make the site sustainable in the next few years. “I think if you hustle and you work hard at it, you’re going to find there are many businesses that want to try online advertising,” he said.

About 100 Alaska-based businesses have bought ads so far, and he says many have signed on for year-long contracts at rates competitive with the largest newspaper in the state, the Anchorage Daily News.

His pitch for typical local businesses is straightforward: Alaska Dispatch reaches locals. But because many businesses are dependent on tourists, local businesses in Alaska also care about outsiders. Hopfinger hopes eventually to tap into the advertising budgets of hotels, cruise lines, and other tourist-based industries.

The site draws in about 7,000 unique visitors per day, spiking to 10,000-12,000 when they have a big story. Hopfinger says about 50 to 60 percent of users are Alaskans.

“Once we break even, we’re not like McClatchy looking to get 20 percent profits,” he told me. “Once we hit that, we’re going to reinvest in the journalism. We’re not interested in these big profits.”

Just the big stories.

October 14 2010

14:30

The Newsonomics of replacement journalism

[Each week, our friend Ken Doctor — author of Newsonomics and longtime watcher of the business side of digital news — writes about the economics of the news business for the Lab.]

Finally, we’re seeing light on the horizon. Journalism hiring is picking up.

The second half of the year has so far produced TBD’s hiring of 50 in Washington, Patch’s push to pick up 500 journalists across the country, and the new alliance for public media plan to hire more than 300 journalists in four major cities, if funding can be found in 2011. In addition, the brand-name journalist market has suddenly flowered, as everyone from National Journal to the Daily Beast to Bloomberg to AOL to the Huffington Post to Yahoo compete for talent. These are bigger numbers — and more activity — than we’ve previously seen, though they build on earlier hirings from ProPublica to California Watch to Bay Citizen to Texas Tribune to MinnPost and well beyond.

It’s a dizzying quilt of hiring, in some ways hard to make sense of, as business models (how exactly is Patch’s business model going to succeed? what happens when the foundation money dries up?) remain in deep flux. Yet, amid the hope, now comes this question: Are we beginning to see “replacement journalism” arriving?

Replacement journalism, by its nature, is a hazy notion. We won’t see some one-to-one swapping for what used to be with something new. Replacement journalism will though give us the sense that new journalism, of high quality, is getting funded, somehow, and that the vacuum created by the deepest cut in reporting we’ve ever seen is starting to be filled. It is an important, graspable question not just for journalists and aspiring journalists welling up in schools across the country, but also for readers: Are we beginning to see significant, tangible news coverage in this new, mainly digital world?

So, let’s assess where we on, on that road to replacement journalism. Let’s start with some numbers. Take the most useful census of daily newspaper newsroom employment, the annual ASNE (American Society of News Editors) census, conducted early each year and next reported out at its April 2011 conference. ASNE’s most current number is 41,500. That’s down from 46,700 a year earlier, from 52,600 in 2008 and from 55,000 in 2007. So, over those three-plus years, that’s a loss of 13,500 jobs, a 25-percent decline.

As we consider what’s been lost and what needs to replace it, we’ve got to look as much at possible at reporting. That news-gathering — not commentary (column or blog) — is what’s key to community information and understanding, fairly prerequisite in our struggling little democracy. While we don’t know how many of those 13,500 jobs lost are in reporting, we can do some extrapolation. Using that same ASNE census, we see that a little less than half (45 percent or so) of newsroom jobs are classified as reporting, while 20 percent are classified as copy/layout editors, 25 percent as supervisors and 10 percent as photographers and artists. So — while not undervaluing the contributions of non-reporters — let’s say, roughly, that half the jobs lost have been reporters. That would mean about 6,750 reporting jobs lost in three years.

Okay, so let’s use that number as a yardstick, against a quick list of journalist hiring:

  • Investigative and extended enterprise reporting: It’s tough to come up with any one number for investigative or long-form reporting in newspapers or in broadcast. We know that many newspapers and broadcasters have cut the investment in staff here, though, through the carnage of staff reduction. (One indication: “The membership of Investigative Reporters and Editors fell more than 30 percent, from 5,391 in 2003, to a 10-year low of 3,695 in 2009″, according to Mary Walton in the American Journalism Review.) Into this breach have come the new ProPublica, the restyled Center for Investigative Reporting (with its California Watch, most notably) and the growing Center for Public Integrity in Washington, D.C. They are joined by smaller centers from Maine to Wisconsin to California. Loss: Probably in the high hundreds. Gain: Probably in the small hundreds. Net: We’ve seen real high-quality replacement journalism, but need more, especially on the community level.
  • Washington, D.C. reporting: Dozens of D.C.-based reporting positions have been lost over the last several years, certainly, and the number may stretch into the hundreds. For awhile, the biggest news was that the Al Jazeera bureau was among the fastest-growing. Now, of course, there’s the goldrush in government-oriented reporting as the newly emboldened (and funded) National Journal group and Bloomberg Government add a couple of hundred positions, and join Politico in the D.C-based fray. With both new efforts still in formation, we’re not clear what kind of reporting they’ll do. If it’s mainly government-as-business (Bloomberg’s seeming model) and/or if it’s mainly behind pay wall, then then this new stuff will be less replacement-like. Covering public policy implications for all of us nationally, and the particular impacts on those of locally, is a key, yawning need. Loss: Significant. Gain: Substantial. Net: Unclear we see the words on our screens in 2011.
  • Hyperlocal reporting: The biggest news here is Patch, of course. With 500 sites in various stages of rollout, we can’t yet assess how much new reporting — and of what quality, what depth — will be added back, replaced. Add in the redeployment of many metro staff reporters from Hartford to Dallas to L.A., and the fact that smaller community dailies and weeklies have weathered the storms better than bigger papers. Loss: Uncountable, but real across the country. Gain: With Patch and with the re-attention of metros to smaller communities through staff redeployment and blog aggregation, it’s now substantial. Net: One of the most promising areas in replacement journalism.
  • Metro-level reporting: The devastation seems clearest here, with newspapers like the San Jose Mercury News cut to 125 newsroom staffers from 400 a decade ago, and many other dailies down by 50 percent or more. The bulk of cuts, as well chronicled by Erica Smith at Paper Cuts, appear to be at metros — and they are continuing; witness recent job losses in Sacramento and Miami and at USA Today. On the positive end of the ledger, the TBD-Bay Citizen-Voice of San Diego-MinnPost-Texas Tribune-Chicago News Cooperative parade has added real journalistic depth in selected markets. Yet, unless they grow substantially from the dozens they are — the public media push, though only in formation, is the most promising here — there’s a low replacement ratio. This is the biggest conundrum in front of us: how do we maintain current newsroom staffing of 340 at The Boston Globe or 325 at The Dallas Morning News, against the ravages of change? Loss: Huge. Gain: Spirited and of noteworthy excellence. Net: Biggest gap to fill — and the gap may be widening still.

“Replacement journalism,” of course, is a tricky term, and maybe only an interim notion — a handle that helps us from there to here to there. By the very nature of digital and business disruption and transformation, we have to remind ourselves that the future is never a straight line from past to future, and that it will offer us great positive surprises as well as continuing disappointments. William Gibson’s enduring line sums that up: “The future is already here. It’s just not evenly distributed.”

Photo by Matt Wetzler used under a Creative Commons license.

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