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June 13 2013

07:02

The newsonomics of Hearst Magazines’ one million new customers

Take this quiz. The era of paying for digital access (a.k.a. digital circulation or paywalls) is about:

  1. Getting more money out of core subscribers;
  2. Getting new money out of new subscribers; or
  3. Getting money any way you can.

Okay, 3 is a gimme. But 1 and 2 are very different strategies. While most newspaper publishers are leaning heavily on their long-time core bases by promising and delivering all-access, Hearst Magazines is taking a contrarian turn in the market. It’s a strategy that is largely at odds with peers Condé Nast, Time Inc., and Meredith, as well as most newspaper publishers. It’s betting almost wholly on new customers.

“We want unique paying digital customers,” says Chris Wilkes, VP for audience development and digital editions for Hearst Magazines. “We’re not interested in people reading print and digital together. We want people who are engaging with our digital products, and we’re attracting people who want to read in the digital format.” The company has experimented with a little bundling — at “fair” (higher) and not “ride-along” prices — Wilkes says, but that’s a minor part of the business.

He can now offer up one big seven-digit number to back up that strategy: One million paid digital subscribers. That’s the number of new subscribers Hearst Magazines was able to announce in May. Hearst Magazines president David Carey met that magic number just a few months behind his target. At one million, it’s still only about 3-4 percent of Hearst’s total print circulation — but it’s a milestone. The company is aiming to make 10 percent of its total circulation digital by 2016.

It’s not that Hearst is saying it won’t do all-access ever. But its reason for zagging while other zig is clear.

“It’s easier for us to pivot out of a paid model to authenticated than it would be for others to go the other way,” Carey explained to me earlier this year. In other words, Hearst can go all-access, but would do it at higher prices, reflecting dual value.

Those million subscribers are spread unevenly among 21 digital magazines. The biggest title is Cosmopolitan, with 175,000 paying digital subscribers, or 6 percent of its total circ. O, Oprah’s mag, is second at 108,000. The Food Network’s is third.

Carey’s big digital push encompasses a lot more than digital editions. The Hearst Tower is seeing lots of shake ups, new hires, and new projects. At the top, longtime COO Steve Swartz has finally moved into the CEO’s suite as Frank Bennack’s remarkable three-decade tenure has drawn to a close. He now heads a well-diversified private media company reaching into magazines, TV, newspapers and business media.

Hearst just hired digital native Troy Young as president of Hearst Magazines Digital Media. Young’s digital business associations — xoJane, ReadWrite, Refinery29, Spinmedia, and CrowdSurge — lead to this job where he’ll be responsible for “digital content, technology, operations, revenue, product, and business development strategies.” The company has now made it possible for advertisers to buy across its digital titles through Totally Global Media. Its two-year-old App Lab is home to 40 staffers. Its embrace of native advertising is recent, warm, and wide; it has just announced five new products in the field, and raised some editorial eyebrows as its magazine staff is writing commercial copy as part of their jobs.

Hearst’s strategy here is one to watch. There are good reasons (more on that below) why daily newspapers have opted to go for door number one and get more money from long-time subscribers while making new subs a largely second priority. But they know that’s a two- to three-year strategy. As 10,000 baby boomers turn 65 every single day through 2031, the older-reader market inevitably winnows and must be refreshed with new, paying customers. For daily newspapers, getting younger (yes, younger means under 55) readers to pay is mostly phase two.

So let’s see what Hearst learning, as it leads both newspaper companies in that quest and its fellow magazine chains as well.

There’s a lot to like about the demographics of the digital audience. According to the company’s data, the readers are 10-20 percent more affluent, 10 years younger, and more educated. Wilkes acknowledges that those good demographics may be skewed by early tablet demographics themselves, but they are directionally vital.

Make no mistake: The tablet is the linchpin here. How much of the reading of these magazines happens on the tablet? An amazing 98 percent. For many, the tablet is a truly becoming a replacement for the print magazine.

Wide distribution is key to gaining numbers; subscriber growth is now moving at about 10 percent a month. Hearst uses all the platforms out there, from the Apple, Amazon, and Android stores and beyond. It is also testing magazine aggregation: It’s an owner of Next Issue (“The newsonomics of Next Issue magazine future”), which offers dozens of titles at two price points, and it partners with Zinio (which just debuted its first multi-title offer).

The tablet, of course, has become the lifeline of the magazine, a bequest of Steve Jobs, soon to be refreshed by the changes coming in iOS 7. While the horizontal web page always proved an awkward fit for vertical magazines, the tablet is oh-so magazine like.

“It was a small novelty business [on the pre-tablet web],” Wilkes says. “We knew when the iPad came out, we would finally be able to build our business.” The iPad revolution completely changed the magazine industry’s potential trajectory.

Newsstand sales continue to crash — down 8.2 percent in the second half of 2012, in part, of course, because of the millions of tablets that readers are carrying into airports and on trains. (And soon, when the FAA finally relaxes tablet reading on takeoff and landing, the necessity of having a print piece packed away will lessen further.)

Hearst, while arguably leading the magazine pack, certainly has its own challenges. Its single copy sales lost 1.9 percent in 2012, even though its 2.3 percent overall circulation increase to 30.7 million stands out among its peers.

For the first quarter, print ad pages were down 4.9 percent for U.S. consumer magazines, though only 0.1 percent in revenue due to price increases. Hearst Magazines was up 6.6 percent.

Given the across-the-spectrum drop in print advertising, both Time Inc. and Meredith have recently laid hundreds of employees. Time Inc. is, of course, in turnaround — yet again. First up for sale and now to be spun off from Time Warner, it let CEO Laura Lang go after but a year of ongoing strategic review and seems significantly behind Hearst in digital innovation. It is now playing catch-up with notable hires for Time.com, but is climbing out of its indecisive recent past; ad pages were down 12.2 percent in 2012, though up 0.6 percent for Q1 2013.

It’s intriguing that Hearst has — so far — embraced a double-edged bundling philosophy. While it won’t, largely, bundle print and digital subscriptions, advertising is mostly bundled. If you buy an ad in House Beautiful or HGTV Magazine, you are paying for the whole rate base, including that three percent of the readership that’s tablet, says Wilkes. At this point, a buy is a buy, though, Hearst, like so many others, is going to town on all the new possibilities of customizing advertising for top brands. It’s not just those latest buzzwords, content marketing. It’s interactive ad creation. Advertisers who buy print can tweak their tablet ad to use its capabilities.

Wilkes notes a real movement in the ad creation business. Last year, he says, 85 percent of the ad customization done for the e-edition ads were done by his App Labs staff, with only 15 percent of advertisers, or their agencies, doing the tweaking. This year, brands or their agencies have assumed the work in about 40 percent of the cases, with the Apps Labbers doing the rest.

Wilkes anticipates the work will continue to migrate back to the advertiser. That’s a big lesson for all the publishers jumping into the agency business: As traditional agencies step up, increasingly fearing their own obsolescence, the custom/content marketing units of publishers will get more competition. Many inevitably will fall back to doing what they’ve long done: sell space. Those — nationally or locally — who see riches in becoming agencies — may find the going a lot tougher than it may be in 2013.

The pricing of the digital magazines is a big question and still a work in progress.

Magazines, which long used token reader payments just to print hundreds of pages of lucrative advertising, have a price problem. As John Loughlin, GM of Hearst Magazines, recently put it at MPA Swipe 2.0, “a magazine subscription needs to be valued at more than two venti cappuccinos.” Magazine publishers realize, just as their newspaper brethren do, that the challenges of digital advertising will only grow, as print ad pages decline — and that readers must pay more of the freight going forward.

On average, Hearst’s digital mags cost 30 percent more than their print equivalents, Typically, they are $19.99 for a year, $1.99 for a month. Buyers can pay for a single issue or per year, depending on the title. A majority opt for the annual sub.

“It’s not pricing up — it’s pricing back,” says Wilkes, meaning magazines need to regain value lost in the heavily discounted print subscriptions that can now be found in seconds simply by Googling.

It’s true that most of that 30 percent in higher prices never reaches Hearst, as it deals with Apple and others of its more than a dozen distribution points, many of whom take cuts in the 15-30 percent range as commission. Wilkes says that’s not the reason for the 30 percent upcharge — it’s meant to convey a new value for the tablet age.

Might the price go higher? Early data says it could. A magazine’s price isn’t among the top reasons readers buy — or don’t. As Hearst interacts with consumers and reads app reviews, it sees that customer satisfaction with the product is by far the key driver in gaining and keeping subscribers. “We’re not seeing much price sensitivity,” says Wilkes.

The pricing conundrum is at least two-sided. Magazines have a greater ability to draw in new subscribers. Getting someone to one-click for $20 is one thing. Getting them to commit — after cheap trial subs — to $200 to $300 for a year’s newspaper subscription is another.

So here magazines may have an edge at gaining new customers — unless newspapers can figure out cheaper subset products that may provide more saleable price points. The Wall Street Journal’s test with Pulse, on three cheaper products, may not be producing big results, but expect to see more such tests; The New York Times’ first-quarter earnings announcement about new niche paid products is one to watch here.

Yet newspapers’ weakness is also their strength. Their all-access plans have been front and center for a reason. On average, those putting all-access plans into place have increased subscription prices 40 percent, according to Press+, the leading supplier of paywall technology to the U.S. industry. Forty percent of $250 is $100. Newspaper publishers will tell you they’d rather increase rates for readers across the board than expect “onesie or twosie” new sales to propel their businesses and make up for ad loss.

The New York Times, now getting close to 700,000 digital subscribers and offering all-access to print readers is the best example of a daily having it both ways.

The bigger money that newspaper publishers are taking in makes magazine publishers envious. It’s important to acknowledge the differing cost bases of the newspaper and magazine industries — but still, the ability to yield significant new reader revenue has largely been a newspaper advantage.

Hearst Magazines, in reaching the golden million number, is the leader in new consumer magazine reader revenue. It has added, we can extrapolate, about three to four percent of new reader revenue to the mix. That’s impressive, but not world-beating. Literally, at $20 price points, or even $30 prices, they need millions of new readers — which is David Carey’s plan — to fundamentally alter publisher economics.

One further hope may be niche paid products. Hearst Magazines’ own experience with those may be cautionary. It has produced numerous standalone apps out of its shelter, food, and health properties, but is now de-emphasizing that development. Why? Too much noise in the marketplace, so too little return for the investment. Rather, it will concentrate on improving its digital editions.

There’s one more long-term business strategy playing out here. It’s hard to see in 2013, but it will enjoy high visibility by 2020. Hearst’s cost in printing and distributing magazines are 30-40 percent of its overall cost base, on a par with newspapers. As its readers cross over (“The newsonomics of crossover”), paying as much or more for digital as they do for print, profit increases markedly. At three percent of circulation today, or 10 percent in 2016, Hearst won’t be at crossover. Expect, though, that crossover to move more quickly for Hearst than for other publishers.

As it reaches 50 percent and more, it’s a new business, and strategies, like Hearst’s, may make even more sense in the rear-view mirror.

March 28 2013

14:00

At The Wall Street Journal, a smartphone app has reporters on board for shooting video

The text-based web is dead, says Michael Downing. When AOL CEO Tim Armstrong announced his intention this month to transform the company into a platform for video, Downing heard a death knell — one he’s been expecting for some time. We are, after all, as he says, on the precipice of “the rise of the visual web.”

Downing has a dog in this fight; he’s the founder of Tout, a video sharing website and app that makes it easy for users to upload and share short — under 15 seconds — videos in real-time. Although originally designed as a consumer device, it also appealed to publishers: The Wall Street Journal approached Downing with the idea for a proprietary app that reporters could use as a news gathering tool. With the addition of some analytics tools and a centralized management function that allows editors to quickly vet clips before they’re published, that became WorldStream, which we wrote about in August.

“Consumer behavior has become much more accustomed to consuming the news they want as it happens,” says Downing. “The WSJ was trying to be much more in line with real-time news and real-time publishing.”

More than half a year later, how’s WorldStream working out? The Journal seems pretty happy. On the business side, WorldStream point man and WSJ deputy editor of video Mark Scheffler describes the project as a “destination but also a clearinghouse.” While all of the WSJ’s mobile videos are first published to the feed, many go on to live second lives across a wide variety of platforms. Some clips follow reporters to live broadcast appearances, while others are embedded into article pages and blogs. Andy Regal, the Journal’s head of video production, said that they don’t break out WorldStream views from the newspaper’s overall video numbers, which he said total between 30 and 35 million streams per month.

That kind of traffic across platforms draws the attention of advertisers. The WSJ says video ads generate “premium” rates, meaning somewhere around $40 to $60 CPM. Says Tim Ware, WSJ director of mobile sales, of the Journal’s broader video strategy: “We’re very bullish on the growth of WSJ Live this fiscal year, and thus the growth in video ad revenue. We’re also starting to contemplate some one-off sponsorships within our overarching video coverage of select events and stories.” (After spending about a total of about an hour on WorldStream, however, I only saw one ad — for a “smart document solutions” company — repeated about a half dozen times.)

But the surprise, both for Downing and WSJ management, is how readily — and ably — the WSJ’s reporters have taken to the new medium; getting reporter buy-in has been a struggle for many newspaper video initiatives. “It started out as an internal tool because we didn’t know how many people would be able to accommodate this kind of approach with the technology and the software,” Regal says, “but they think about it as part of their daily work now.” Armed with iPhones, iPods, iPads, and Android devices, hundreds of WSJ staffers have filed video clips via Tout; in the 229 days since launch, that’s 2,815 videos. In many cases, Downing said, the reporters didn’t even need training: “They just jumped right in and started using it.”

Charles Levinson has been reporting for the Journal from places like Syria “What are the assets that give us an advantage over the competitor? We have 2,000 reporters around the world,” he said. “How do you parlay 2,000 reporters into good video?” Levinson says the Tout app is helping the WSJ avoid print media’s tendency toward “mediocre” video production.

Christina Binkley is a style columnist at the WSJ who first experimented with the app while reporting on New York’s 2012 Fashion Week. She says there’s a lot of pressure on reporters to be producing a huge variety of content — articles, columns, blogs, Instagrams, tweets. She said, unlike some other apps, WorldStream has really stuck with her: “I can add a lot of value to my column very quickly without having to mic somebody up.”

Scheffler says some of the reporters have gained basic video shooting skills so quickly that the footage they file can be edited together into longer clips that could pass for more traditionally produced video. Going forward, Scheffler hopes to put better mobile editing tools in their hands: “Being able to be full-fledged creators on a mobile platform is something that we’re just going to continue being at the frontier of,” he said.

Regal’s focus, meanwhile, will be to make sure none of that prime footage is being lost in the ever quickening deluge that is the WorldStream feed. He’s considering a “Best of WorldStream” weekly digest, and a variety of other news packages that make that valuable content more findable, and more shareable.

News organizations have been chasing the promise of video advertising for years now, and the rise of apps like Vine illustrate the rise of social video sharing. But Downing says he isn’t worried about the competition. “Ninety-nine-point-nine percent of the existing video sharing apps have to do with self-expression,” he says, comparing Vine to something like Instagram. Tout’s enterprise apps skip the idea of sharing with friends and focuses on fast, concise updates from outlets that users follow based on broader personal interest.

“It’s a real-time, reverse chronological vertical feed of updates,” says Downing, “Whether it’s Twitter or LinkedIn, that is becoming the standard form factor for being able to track that information that you curate yourself.”

Since partnering with The Wall Street Journal last year, a number of publishers have pursued similar agreements with Tout — CBS, Fox, NBC Universal, WWE, La Gardere and Conde Nast are among them. By the end of 2013, Downing expects to host around 200 media outlets, including some of News Corp.’s other brands. Downing says these publisher agreements are now the company’s “primary mode of business,” not the consumer product.

What does Downing see coming in video? He confidently points to Google’s spring 2012 earnings report, when for the first time, its cost-per-click rate fell. “That was the sounding bell. That was the beacon. That was the one clear signal to the world that the era of the print metaphor defining the web experience…was over.”

August 20 2012

15:57

March 29 2012

15:00

The newsonomics of 100 products a year

Try this: Call up your local newspaper or online news organization. Tell them you want to buy something and ask them what they can sell you? Of course, at first, they’d be non-plussed: Sell you something? Then, after giving it some thought, they’d say you can buy a newspaper or a subscription or a membership — or, maybe, an ad? Would you like one of those?

Those days — mark it — are coming to an end. We’re on the brink of news companies producing hundreds of products for sale each year. While digital technology hath taketh (the easy ability to make money on news distribution), digital technology also giveth back, with the ability to create hundreds and thousands of newsy products at small incremental costs. The bonus: News organizations will be able to satisfy groups of readers and advertisers (often disguised thinly as sponsors) better than ever before. Double bonus: The let-a-hundred-products-bloom revolution fits neatly with the all-out embrace of all-access circulation initiatives, which news companies in North America, Europe, and Asia now can’t seem to implement quickly enough.

Can we call this the ebook revolution? Maybe, but that’s probably too narrow. Delivery of new products to new audiences can take several forms. A text-only ebook, a shinier iBooks-enabled product with video, or an app with all the glorious functionality apps offer. It’s not the form; it’s the content, content that satisfies niches rather than serves masses with one-size-fits-all newspaper or magazine products.

Call it the newsonomics of 100 products a year, or just one way to envision a much bigger future.

The 100-product-a-year model is a much-needed growth model. We can see how it fits nicely with all-access subscriptions, and together we have two interconnected Lego blocks of a new sustainable news model. We have two essential parts of a crossover model (“The newsonomics of crossover”) that I detailed here a few weeks ago. The big, hairy challenges of accelerating print ad loss and onerous legacy costs remain, but at least we’ve got a couple of building blocks we didn’t have two years ago. By we, I mean those of us who care about news and great professional content.

Is it a big moneymaker? We don’t know yet, though we can extrapolate some numbers below.

It’s directionally right, though, for at least a couple of strategic reasons. The notion of 100 smaller products reminds us that so much of the new world is based on volume. Google has built a monstrous advertising business on hundreds of thousands of smaller advertisers, while daily newspapers reaped huge profits on relatively few bigger advertisers. Even as movie watching by streaming surpasses DVD watching, more money is still in the old medium. Streaming will monetize at a lower rate, but end up generating bigger dollars over time. The same thing is true in the digital music business. Selling lots of stuff to lots of people at smaller price points is something the Internet enables superbly.

Yes, there are definitely new winners and losers in movies and music, as there will be in news. Those who transition best and fastest will win.

Second, it’s in line with the strategic push to satisfy the hell out of core customers. As publishers have figured out that it’s the top 15 percent of site visitors who make the big difference in building the new digital business — perhaps paying for subscriptions, consuming many more pages than fly-by users sent by Google — core customer satisfaction is key. Ebooks deeper the relationship to that reader customer.

This 100-product-a-year model may fit as well with the new California Watch/Bay Citizen combo (“The newsonomics of the death and life of California news”), finalized Tuesday, as its does with The Wall Street Journal, The New York Times, the Charlotte Observer, GQ, or Conde Nast Traveler.

Let’s take one example. On Wednesday, the Boston Globe launched “Sunday Supper & More.” It’s a cookbook. It’s New England. And it could be the beginning of a new franchise: Expect summer, fall and winter editions each year to join this spring debut. The Globe’s staff built it with Apple’s iBooks Author tool, so it offers video within it.

Want to buy it? Not so fast. Today, Sunday Supper & More is only available to Boston Globe print, all-access, and digital subscribers. So subscription — think “membership” (the recent riff of the L.A. Times new paywall intro) — is gaining new benefits. Surprise, says the Globe, you not only get our paper, our spiffy new replica-plus edition, if that’s what you want, and our mobile apps — you also get our cool cookbooks, with more to come.

The Globe will sell the book to non-subscribers — probably at $4.99 — but will decide the timing of that sale after next week’s Globe confab at which execs and editors will plot an ebook plan for the company.

“Events and ebooks will be the two biggest perks” of the new Globe subscription push, says Jeff Moriarty, the Globe’s VP of digital products. Beyond Sunday Suppers and a new spin on the Fenway 100 historical Red Sox book, we can picture the Globe soon mining its archives in both sports and features to provide new value for customers and a new leg of revenue. It experimented early with three books on its Whitey Bulger stories, and learned some lessons in pricing, distribution, and the technical creation process along the way.

The Globe has plenty of company in this push. We see Canada’s National Post committing to a couple of dozen ebooks in the coming year, again from hard news to features (“To learn what works (quickly), Canada’s National Post dives into ebooks”). Guardian Shorts is an early innovator; Politico is churning out four campaign ebooks this year.

Magazine publishers, faster than newspaper publishers to embrace the tablet as the next-gen platform, are also ahead of most newspaper publishers in ebooks. Vanity Fair’s done more than a half dozen, and its parent Conde Nast is hosting an explosion of more single-purpose apps in the iTunes Store, some unrelated to Conde’s magazines. Hearst’s Cosmopolitan is embracing ebooks, and now partnering, along with ProPublica — an early tester of ebooks — with Open Road Integrated Technology. Open Road Integrated Technology?

Well, it’s a book company, an ebook company juiced on the possibilities of our age. Headed by former HarperCollins CEO Jane Friedman, the company is prototypical of a new group of middlemen. With book marketing savvy (cover design, marketing, distribution+), these companies are now feeding the emerging ebook marketplace. They are also partnering back for that old standby, print, as Open Road has done with book services company Ingram. In Canada, it was Harper Collins Canada that became the National Post’s partner in bringing news ebooks to market.

Just as the web has knocked many middlemen for a loop, it creates openings for new ones.

If you talk to publishers about ebooks, they are farther along in experimenting than they were a year ago. Yet some basic issues — producing the books, marrying them to commerce engines, placing them prominently in e-stores and more — are giving them headaches as they push forward. “How do we make the right offer to the right person at the right time?” one experienced exec asked.

The marketplace has been exploding (recall that Amazon announced last spring that its ebooks were now outselling its paper books), but those issues are setting the stage for a new group of companies, many staffed with graduates of the book industry, offering their help. Newspaper and magazine publishers are looking to the Open Roads for guidance.

Some are turning to their digital circulation partner, Press+. That company, which is powering more than 280 titles’ subscription commerce, says its system can handle the commerce and even help with identifying likely customers, based on tracked content usage, so its customers are just beginning to ply the ebook trade.

ProPublica general manager Dick Tofel opted for Open Road for the non-profit investigative publisher’s fifth and sixth books. He says the company will start producing a half dozen or more a year now and is now fielding calls from other publishers eager to get the benefit of his early ebook experience.

So far, ProPublica has put 90,000 ebooks into the market. The first couple were free downloads, but with the addition of new original introductions to work ProPublica had already published free online, Amazon and ProPublica agreed on test pricing of 99 cents and $1.99, and new revenue is rolling in. It’s small, but “pound for pound, it generates more than advertising,” notes Tofel, who is a Wall Street Journal veteran. And, of course, the incremental cost of creating ebooks is closer to zero, with most sales cost able to be a commissioned cost of sale.

As assistant publisher, Tofel oversaw the print books business that’s been a good Dow Jones sideline for a long time.

Those books — personal investing and more — are naturals for the ebook revolution now. Look for the Journal to experiment more with those titles, perhaps niching by life stage.

As news and magazine publishers look to this new revenue stream, here are six points to ponder:

It’s about product development: Yes, it’s editing, but fundamentally, it’s a mindset change for many publishers stuck in the one-size-fits-all world. Publishers either need staffers with new product chops or partners wanting to license publisher content and create the products for the marketplace.

Free the archives!: Digital archives have never been a big business for publishers, caught somewhere between Google and musty library connotations. Packaged archives — for specific audiences — can offer new life for older content.

Don’t think content; think problem solving: Publishers too often start with content. If we start with audience — college-planning students and parents, new mothers and fathers to be, bored cooks, and, big time, sports enthusiasts of all ages — we can see the motors of ebook publishing beginning to role. Think life stage, just for starters, and add the geo angle, and regional publishers can play.

Mining the database: As onesies and twosies, it’s fairly easy to pick content from publishers’ own databases. Think of bigger production cycle, going beyond the 100 a year, to a thousand, all niched products that could be semi-automated and templated over time. Better tagging of content for ebook usage then becomes a priority.

Ebook or app?: Early experimenters say let the content be your guide. The more multimedia, the better an app may work. Ebooks, though, can be sold through more distributors, while Apple continues to dominate the app business.

Pricing: What’s an ebook worth? If it solidifies a subscriber/member paying $300 or more a year, it’s worth a lot, even if it’s free. Think of the lifetime value of that subscriber.

To the right niche, some ebooks will be worth $1.99 and others — Retina perfect — will go for $19.99. Let’s take our 100 products a year. Let’s average 5,000 sales for each. Let’s price at $2.99 on average. That would be $1.5 million. Some books, though, could be blockbusters. We can play with this math and see where it goes.

For the ProPublicas, it’s a nice non-ad revenue stream. For other publishers, it’s at least a growing third leg of revenue (beyond ads and circulation) and one that may be nurtured into something significant. (Last fall, Will Sullivan offered a gaggle of reasons ebooks make sense for publishers.) As importantly, it can reinforce those two legs, pleasing subscribers/members with free (or discounted) perks and advertisers/sponsors who have new opportunities to represent themselves to niche audiences. That’s a pretty good combination, and one that publishers will soon embrace, just as they lately have all-access digital circulation.

December 07 2011

19:20

Condé Nast: magazine publisher, app inventor

(A Santa clause: Spoilers lie ahead.)

Last week Condé Nast debuted a free web app called Santa’s Hideout, a registry for children’s Christmas gifts. Kids browse a virtual toy store and build a wish list; parents set spending limits and share the list with friends and family. If someone buys a gift, Santa checks it off the list for all elves (but not kids) to see. Kids can even write to Santa, and the reply arrives with spoofed email headers from the North Pole.

Cool app. So why is a magazine publisher building it?

“I guess I would start there and say that we don’t consider ourselves only a magazine publisher,” said Drew Schutte, the chief integration officer at Condé Nast.

“A year or so we took the word ‘publications’ off the building and took it off of our business cards,” he told me. “There was this final commitment to the fact that we are a company that makes quality content…and we’re going to put that on whatever medium it makes sense.”

It’s a startup-like approach that more media companies are taking as they try to diversify revenue.

Santa’s Hideout is the company’s second offshoot app, after Idea Flight. Neither app bears Condé branding; both have a built-in revenue model. Idea Flight, an iPad app for business presentations, is a free download with paid feature upgrades. Santa’s Hideout is powered by Amazon’s API, and as participants in Amazon’s Associates program the company gets a cut of every purchase.

The head elf was Julianna Stock, who manages a small team of digital experimenters at Condé Nast. The idea came when Stock asked her son what he wanted for Christmas and he refused to answer. He had already told Santa, he said. “I was sort of in a quandary and I felt like I needed a solution,” Stock said. And that’s the mission of her team: Solve problems as you encounter them, even if the solution does not have an obvious business application.

“You never know where that’s going to lead,” Schutte said. “This product…may sell on its own right. Maybe the software has applicability across the company. Maybe it’s something that we spin off into another company one day.”

Editor’s Note: You can find more examples of news organizations selling non-news products in our 2011 holiday gift guide.

19:20

Your 2011 holiday gift guide, brought to you by the news

Santa running down the street in Algers, France

If you want to save journalism, you might turn to journalism this year for all your Christmas shopping.

This weekend at NewsFoo, an O’Reilly “un-conference” for about 170 journalists and tech disrupters, the tech writer Mónica Guzmán posed a question: “Can’t we [news organizations] sell anything besides articles?” Yes, it turns out, and there are numerous examples of them trying it.

A couple of months ago Guzmán was talking to an entrepreneur in Seattle who had just sold his latest startup to Google. “We got to talking about journalism, and I’m always fascinated to listen to people who come from an innovative mindset, but not a news mindset, look at news. What he said, basically, is I don’t see how news is really going to innovate and move forward unless they can get past this idea that what they sell is just content.”

News organizations have one big advantage in business: They know their audience.

“We have a huge leg up when it comes to organizing information communities,” she said. “[News outlets] build those communities that can be really specific and really well defined.” (NewsFoo is generally off the record, but Guzmán talked with me after her session.)

Here are a few examples of all the ways news companies are selling non-news products to consumers. Some might look better wrapped up under the tree than others, but if you feel like supporting the news, maybe there’s room on your credit card for one or two of them.

Merchandise!

For the oenophile in your life, buy a gift subscription to the New York Times Wine Club. Six rare wines (four red, two white) for $90 per shipment, or $180 for the most exquisite Reserve Club varietals. Each bottle is paired with tasting notes and an NYT recipe. Europeans can sample Telegraph Wines, “one of the UK’s most respected wine merchants.” A case of six bottles of Prosecco goes for £54 and includes two complimentary Champagne flutes.

Spaceballs: The Flamethrower

The Telegraph doesn’t stop at wine. There’s a Telegraph Garden Shop, Motoring Shop, a travel shop for holiday cottages. You can buy earrings, duvet covers, snow boots, and clothes hangers. “They are the leading retailer of clothes hangers in the U.K.,” said Jeff Jarvis in an April 2010 Editor & Publisher story. The newspaper raked in a quarter of its profit in 2009 from selling things, he said.

The Onion cheaply repurposes tons of its own content into coffee-table books and framed prints. NPR, almost true to stereotype, sells “green gifts,” “gifts for gardeners,” and “gift for tea lovers.” None of those items have NPR branding, just the kind of things a typical NPR listener might like to buy. (And shoppers know their purchase helps support the news.)

The überaggregator Boing Boing sells stuff as weird as that which it aggregates, e.g., rubber finger tentacles, a remote-controlled flying shark, a bacon-scented air freshener. That site outsources the e-commerce software and payment processing.

Specialty iPhone apps

Santa's Hideout screen shot

There are plenty of smartphone and iPad apps that try to generate revenue for news organizations, but it’s less common for there to be an app that doesn’t have anything to do with the outlet’s journalism. Just today we wrote about Condé Nast’s new Santa app, which helps parents assemble and share lists of what their kids want for Christmas.

This summer Hearst Corp. launched its App Lab, a sort of digital R&D unit for the ad agencies who work with Hearst. It was Hearst that developed Manilla, a financial management product for consumers, earlier this year.

Events

In September, the web-only Texas Tribune launched the Texas Tribune Festival, a first annual symposium that brought together politicians, wonks, lobbyists, and others from the universe of Texas politics. (I interviewed editor Evan Smith about it this summer.) Tickets cost $125, but the real money comes from corporate sponsorships. In 2010, before the festival existed, the Tribune raised about $600,000 in event sponsorship, Smith told me. The Tribune festival was modeled on the New Yorker Festival, which also sells tickets and big-name sponsorships. Forbes follows a similar model for its CEO conferences around the world, but those tickets are a lot pricier.

Digital marketing services

Rubber finger tentacles

435 Digital is a Chicago consulting firm that does web design, SEO, and social media — actually, it’s a division of Tribune Co., but you would never know that from looking at its home page. The group is made up of the people who gave us Colonel Tribune and the ChicagoNow blog network.

GannettLocal, too, offers marketing services for local businesses that advertise in Gannett-owned papers. Condé Nast sells its in-house creative talent to advertisers, competing with the very agencies whose work fills the pages of its magazines.

Using reporters’ smarts

The Chronicle of Philanthropy, as I wrote this summer, packages its reporters’ in-house expertise about particular topics as paid webinars that cost as much as $96 apiece.

The premium content, the merch, the events, the consulting, the apps — they are all specialty products for niche audiences. Whether all of the offerings are making money is for another story.

“Last-minute shopping?” by Louise LeGresley used under a Creative Commons license.

July 05 2011

18:06

Golf Digest Adds Interaction, Depth, E-Commerce to iPad App

It seemed like the first-delivered iPad was hardly unsheathed from its box before News Corp. CEO Rupert Murdoch, apparently unfazed by a rich past of misguided forays into Internet ventures, announced the launch of The Daily, which was immediately labeled the first tablet-only newspaper.

And it was mere weeks -- if not days -- after its debut when media critics began declaring it a failure, often pointing to a sense of wandering malleability as The Daily's staff grappled with the dilemma of where a news app fits in a world of near-instantaneous news. Gawker readers guffawed at a leaked memo from editor in chief Jesse Angelo instructing his staff that they were to find, among other things, the "oldest dog in America, or the richest man in South Dakota." Hilarious comments like these reveal an oft-repeated lack of vision that nearly always plagues the first pioneers of a new medium.

In its early days, the radio industry remained a meandering platform thought to be utterly useless to advertisers and entertainers until Albert Lasker, considered by many the founder of modern advertising, discovered comedic actors like Bob Hope and used them to promote Palmolive soap, Pepsodent toothpaste, and Lucky Strike cigarettes to millions of listeners. With mobile and tablet apps, content producers must weigh their offerings in print and on the web and determine what more, if anything, they have to furnish on an app.

Despite such still-lingering questions, Conde Nast has thrown its hat into the ring, launching iPad apps for several magazine titles. It led with an app for the venerable New Yorker and a much-touted, widely praised one for Wired, and it began expanding into the app sphere even more when Apple launched magazine subscriptions on its tablet device.

golfdigestbutton.jpg

Though it's still too early to be considered a "veteran" of the mobile app, Golf Digest wasn't exactly a novice to the medium when it joined its sister publications with a new subscription offering. It had already been publishing a mobile phone app and, earlier this year, had spun off one of the magazine's annual features -- the Hot List -- into its own iPad app. The monthly iPad magazine subscription, Conde Nast announced, would be $1.99 per issue or $19.99 per year.

So how did Golf Digest determine what kind of content would be ideal for not only driving its print and web readers to the app, but new users as well?

The rule is to read the reader

Bob Carney, the magazine's brand editor, is someone who grappled with this question in the months leading up to the subscription's launch.

"For Golf Digest, I think at the very beginning we thought we'd add every kind of bell and whistle we can," he told me in a phone interview. "And we found out that not only is that costly, but really for someone coming to Golf Digest, what they want is more of what they get in the magazine. So for the magazine, instruction and service information about the equipment are the most important things, and the iPad app ought to take that and extend it, not go somewhere else."

Case in point: the publication's swing sequences. Flip through any issue and you're apt to come across them -- the arc of a golfer's swing spread out across several images. The digital editor's natural inclination is to dispel of the still images completely and upgrade to video, perhaps even making it embeddable for wider distribution. Carney and his team, when making the iPad app, opted for an even more granular level. Taking advantage of the tablet's high-resolution screen and interactive features, they designed the swing sequences so the user can control every facet of the swing, jumping forward and back, pausing at the moment of impact. By handing over this control to the user, Carney said, it allows him to learn at his own pace.

This isn't to say video doesn't have its place within the iPad. Sometimes, the magazine will take a swing sequence by, say, Adam Scott, whose swing Carney characterized as "beautiful," and then shoot video of other golfers offering audio commentary, analyzing the minute details of Scott's technique in a way that sheds light on the methodology of a truly superior golfer.

"What we learned is to not try to reinvent the wheel," Carney said. "You try to take what you have and move it to the next level so that the user gets more information and control and you're using all the audio, video, and other tools available. The web is nice, but the web is usually 'lean forward,' where somebody says, 'You should see the Adam Scott swing sequence,' and you have two minutes before your next call and you look at it and you think it's cool and a great swing and now you're back to work. When you're playing on the iPad and you have the time to listen to those guys and move that swing back and forth, it's a different experience, and it's very cool."

Like the web, an iPad app is devoid of the distribution costs that hinder print, allowing the editorial team to vastly expand on something that might take up only a few pages in the print magazine. But of course most of the stuff that ends up in the app must be directly correlated with that month's print issue, necessitating constant overlap between the print and digital teams as the magazine is put together. Carney estimated that it takes three weeks to compile the print issue and three weeks for the app, with a two-week overlap in between. "We have a wall where every page is put out, and I noticed recently they have a layout of the July issue for every iPad screen as well."

hotlistappss.jpg

Expanding the Hot List

Like other publications, Golf Digest is experimenting with rolling out individual apps and products centered around its annual lists. Its Hot List, a yearly ranking of the best golf equipment, was spun off into an iPad app before the magazine itself was even offered on the device.

Craig Bestrom, the magazine's editorial development director, told me in a phone interview that the app allowed his team to expand the list beyond the realms previously employed in the print product.

"The equipment portion of the magazine that was devoted to the Hot List was probably 60 pages," he said. "And this app had close to a thousand screens. That's probably the greatest comparison that you can make, that suddenly we're able to devote a lot more photographs and information. This is a far more comprehensive guide compared to what you get in the magazine. It's not only drivers, but all the new sets of irons, all the new wedges, all the new putters. It's all the club gear for 2011."

In the print version of the Hot List, for instance, the magazine featured about 14 drivers, and each driver was assigned a quarter of a page. But with the iPad app, Bestrom said, you get "multiple images of the driver, you get the sound the driver makes at impact, you have the ability to share on Facebook or on Twitter to your friends about a particular club or clubs that you liked and why you liked them."

The opportunity for e-commerce

The app allows for an e-commerce opportunity as well, enabling its designers to offer the clubs featured in the list up for sale with a simple click. Through a program called Golf Digest Rewards, a user is able to sort through the best prices for a club and purchase it via the app. Bestrom didn't have ready sales figures for me, but the e-commerce component indicated an opportunity for a diversification of revenue that may be necessary as print advertising revenues decline.

Ultimately, it seems the iPad app fits in between the stodgy formality of a print product and the open flexibility of the web. For Carney, it's the removal from the immediacy of the Internet that allows the magazine to flourish within this new medium.

"It works much more like a magazine, in that you really have to make it an experience in itself," he said.

And according to a recent survey, the consumers most coveted by high-end advertisers may agree. As Business Insider's Noah Davis put it, "The average user is roughly $60,000 richer and eight years younger than the typical Golf Digest reader, with an annual household income of $279,600."

Perhaps Golf Digest, the magazine for a sport thought to be played mainly by the affluent, is the perfect publication for a device often associated with that same demographic.

Simon Owens is the director of PR at JESS3, a design agency in Washington, D.C. You can read his blog or follow him on Twitter

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16:00

Condé Nast’s Scott Dadich on reinventing mags for the iPad and why partnering with Apple matters

As the man tasked with giving new life to magazines on new platforms for Condé Nast, Scott Dadich says there are some things, old-school things, that don’t change whether you’re dealing with print or tablets.

“The cover. As magazine makers, we see the cover as the one and only ad we have for your purchase and your time,” said Dadich, Condé’s vice president of digital magazine development. “It’s an inducement to pick it up and give us your time.”

The magazine cover may be ascendant once again thanks in part to the debut of Apple’s Newsstand for iPad and iPhone. Combined with Apple’s subscription policy, the Newsstand could potentially be the bridge to the wider adoption of magazines on the iPad that publishers have been hoping for.

“To have a dedicated container on a tablet device, the iPad, where covers are the primary means of purchase and browsing is something we’ve been looking for for a long time,” Dadich told me.

But the future still remains imperfect for publishers, some reluctant to give Apple its 30-percent cut, others wanting to get their hands on precious customer data without interference from Apple. Condé Nast is already onboard with Apple, though, with more than 30 apps and almost 10 magazine editions on the iPad and digital subscriptions available for the big titles. Dadich is a true believer in tablets: He lead the team responsible for Wired’s first iPad app. Still, he hedges that idealism with heavy doses of pragmatism. In an interview that covered everything from publishers’ relationship with Apple to developing a new design guide for the tablet, Dadich outlined a future that will find magazines thriving again.

“It’s not that far-fetched to imagine 20 to 25 percent of magazines’ readership existing in a digital platform three to four years from now,” he said.

Apple: “They have the marketplace, they built the store”

Partnering with Apple is a necessary element of experimentation right now, Dadich said. Instead of getting hung up on debates over divvying up revenue and ownership of data, companies could be spending that time trying to reinvent themselves. Besides, as Dadich sees it, media companies have always had to make friends in order to deliver their products on time. Apple’s just the next step in that.

“Look, they have the marketplace, they built the store, they have the credit cards and the eyeballs,” Dadich said. “We definitely want to be in front of those folks.”

Apple, he said, offers a new kind of delivery and distribution chain, one that could eventually cost publishers less than the analog model of printing press/delivery truck/mail box/newsstand. And the benefits extend to consumers, he pointed out: With Newsstand, in the same way you can be confident that your copy of GQ will arrive in the mail the second Monday of the month, iPad editions deliver content on time, every time. Instead of having to rush to download the latest New Yorker before a flight, it’ll just be there.

The “Design Fidelity Spectrum” for news apps

The idea of a world where everyone’s favorite magazines are delivered seamlessly is great, but not a reality yet. Tablet adoption remains far from universal, and converting readers, even the faithful ones, can be a complicated dance. Or, maybe, a game of whack-a-mole. Even with lower pricing on digital editions, a better subscription system in place, and improvements to file size and downloading (Dadich told me Condé’s digital editions now have a progressive download, which allows subscribers to read part of an issue as the rest downloads), there’s still a raft of readers not using the iPad. “One hundred and ninety million people read magazines in this country,” while “there’s 25 to 30 million iPads out there,” Dadich said. The goal is convincing people “that these magazines they love are just as good or better under a piece of glass.”

Which is where the design element comes in. As we already know, taking one form of media (newspapers and magazines) and trying to graft it wholesale onto another (the Internet, mobile devices, tablets) doesn’t generally work. But even within magazines, there’s no one right answer. While Dadich and the team at Wired were lauded for their success with launching Wired’s app, the same principles wouldn’t apply to, let’s say, The New Yorker. Different publications, different design needs.

For a company like Condé Nast, differentiating its titles on tablets is as much about the brand as it is about the reader — which is why Dadich relies on something he calls the “design fidelity spectrum,” a concept that slides from rigid faithfulness to the original product on one end to a completely new and unique look on the other. Most newspaper and magazine websites, and to an extent mobile apps, have little in common with their print counterparts. Conversely, The New Yorker and GQ, even with the addition of audio, video, and animation, still track fairly closely to their origins. Finding the right spot for your title, and determining how it meets up with your readers’ needs, is the big question, Dadich said.

“To say we have the answers would be lying. We don’t,” he said. “Apps like Flipboard and Zite, the feed-based apps, allow users to shape the news and reading they do. But I feel like, and numbers confirm, there is a place for editors still.”

Attacking on multiple fronts

Because media apps now compete not only with each other, but also with aggregation, reading, or social news apps, Dadich said it’s become more important to experiment with the way you package your content. While the iPad offers the opportunity for magazines to recreate an immersive, intimate reading experience, the iPhone can offer a different scale of opportunities, he said. “The completeness of an entire issue isn’t the attraction on the phone, but the service-oriented content is,” he said.


Gourmet Live, the departed magazine reinvented in app form, is one example, placing an emphasis on recipes and curated meal ideas. Dadich said he could easily see similar spinoff apps, things like a branded New Yorker listings app, which would take all the front-of-the-book material on goings-on around town and repackage it. Dadich’s strategy is one that calls for an attack on multiple fronts, a reinvention (and reclamation) of what it means to read a magazine. “Ultimately, a subscription to a magazine is about the relationship you have with it,” Dadich said. “If we can transform that into something that lives with you in your pocket all the time, we’re going to try that.”

Image by John Federico used under a Creative Commons license.

May 27 2011

14:30

This Week in Review: Confounding censors with Twitter, and space for big and small media on the iPad

Every Friday, Mark Coddington sums up the week’s top stories about the future of news.

Censorship, the law, and Twitter: If we hadn’t already learned how social media are opening the traditional media’s gatekeeping role to the masses, we got a pretty good object lesson this week in Britain. Here’s what happened: To keep the British tabloids from digging into an alleged affair with a reality TV star, Manchester United soccer star Ryan Giggs took out a British court provision called a super-injunction that prohibits media from identifying him and reporting on both the story and the very fact that a super-injunction exists.

But the super-injunction was no match for Facebook, Twitter, and soccer forums, where thousands of people talked about Giggs and the affair in spite of (and because of) the order. Since then, a Scottish newspaper and a member of Parliament have both named Giggs, rendering the super-injunction essentially ineffective and causing quite a bit of handwringing over whether gag orders are a lost cause in the Twitter age, and whether or not that’s a good thing.

Giggs sued Twitter for the breach, and some members of Parliament started looking for ways to control the site. Prime Minister David Cameron said Twitter made Britain’s injunctions “unfair” and “unsustainable” for traditional media and urged Parliament to change them. Some people, including World Wide Web creator Tim Berners-Lee and the Guardian’s Richard Hillgrove, said the problem lies with Twitter, not the law, with Hillgrove (rather absurdly) suggesting a delay mechanism to monitor posts before they go up: “Twitter and Facebook are not blank sheets of paper. They are media publishers like any other.”

Others faulted the law instead: At the Guardian, Dan Gillmor said it allows the wealthy to play by different rules, and the Telegraph’s Harry Mount said that thanks to the web, “a form of people power has been effectively absorbed into that new body of privacy law.” The Vancouver Sun’s Mario Canseco documented the failure of gag orders in the Internet age in Canada, and Mathew Ingram of GigaOM advised courts and governments to quit trying to enforce antiquated laws, saying they “may not like the implications of a totally distributed real-time information network, but they are going to have to start living with it sooner rather than later.”

Then, of course, there’s the question of whether the anonymous online super-injunction violators have any legal repercussions to worry about. As the New York Times noted, Twitter has been resistant to turning over its users’ identities in the past, though a Twitter official said this week it will hand over user info to the authorities if it’s legally required to. But even with Twitter’s compliance, there would still be hurdles to clear in identifying users, the Telegraph explained.

iPad channels for big and small media: Several big-media publications neared or hit iPad milestones this week: On stage at the TechCrunch Disrupt conference, The Daily’s Greg Clayman said it’s nearing a million downloads since it was launched in January. Clayman wouldn’t say how many paid subscribers the News Corp. iPad-only publication has (a far more interesting figure in determining The Daily’s viability), but Adweek’s Lucia Moses said The Daily will announce its number of paid downloads — it only started charging in March — once it hits a “target level.”

Meanwhile, Wired and GQ were made available for in-app subscriptions through Apple App Store this week, after their owner, Condé Nast, became one of the first major publishers to strike a deal with Apple for in-app subscriptions earlier this month. Another major publication, Playboy, launched an iPad subscription outside the App Store, because it obviously has some difficulty complying with Apple’s “no nudity” policy.

Playboy’s app is essentially an iPad-optimized website, which might seem like a tempting option for publishers who don’t want to deal with Apple’s restrictions, but as Mashable and GigaOM explained, Playboy might be uniquely positioned to pull this off where others can’t. GigaOM’s Mathew Ingram looked at those cases and weighed the pluses and minuses for publishers of getting into bed with Apple.

Of course, big publishers aren’t the only ones getting into the iPad game: At paidContent, Ashley Norris, CEO of a small publishing company that just released an iPad app, argued that indie publishers could play a key role in developing the tablet magazine. Flipboard is a pretty ideal model for those publishers: It’s valued at $200 million, and SiliconAngle’s Tom Foremski said it exemplifies the current en vogue tech-bubble business plan: “find free content and organize it into a useful interface.” That niche might not play as big of a part in the iPad market as we think, though: As Poynter’s Jeff Sonderman noted via ReadWriteWeb, news apps make up only 3% of all the apps in the App Store.

Driving more traffic from Facebook: Facebook has been working hard lately to cozy up to news organizations, and this week it provided some statistics that may have some of those organizations looking more closely at integrating Facebook into their sites. According to stats Search Engine Land got from Facebook (so grain of salt, etc.), the average media site integrated with Facebook has gotten a 300% jump in Facebook referral traffic, and ABC News, the Washington Post, and the Huffington Post have all reportedly doubled their traffic from Facebook since adding social plugins. Meanwhile, Fortune’s Peter Lauria talked to Facebook’s Vadim Lavrusik about the possibility of news orgs charging on Facebook using Facebook credits, like some Facebook games do now.

As it’s been known to do, Facebook played a big role in the aftermath of another natural disaster this week when a tornado hit Joplin, Missouri. The local newspaper, the Joplin Globe, told Poynter about how they set up a Facebook page to help people find family and friends in the tornado’s wake, and KOMU’s Jen Lee Reeves wrote about her station’s Facebook efforts at PBS MediaShift.

Elsewhere in social media and news, the New York Times experimented this week with a human-powered Twitter feed, as opposed to its usual mostly automatically driven style. The Times’ Liz Heron (and a couple of other newspaper social media editors) talked to Poynter’s Jeff Sonderman about their Twitter strategies, and Jessica Roy of 10,000 Words looked at how the experiment changed the Times’ Twitter feed. Heron also revealed the Times’ informal social media guidelines at the BBC’s Social Media Summit: “Use common sense and don’t be stupid.”

Reading roundup: Not a lot of big future-of-news stories this week, a several smaller things worth keeping an eye on:

— Google notified publishers late last week that it’s abandoning its project to scan and archive hundreds of years of old newspapers. The Atlantic’s Adam Clark Estes lamented the decision, and Paul Balcerak urged newspapers to pick up where Google left off.

— This week’s AOL/Huffington Post bits and pieces: Huffington Post Canada has been launched, AOL’s Daily Finance has been made over, and some HuffPo staff are reportedly leaving because they’re upset with how the AOL/HuffPo marriage has gone so far. Meanwhile, even though AOL’s content is free, CEO Tim Armstrong expressed his general belief in paid content online.

— Ben Huh of the Cheezburger network of comedy sites announced he’s working on what he’s calling the Moby Dick Project — an effort to reform the way news is presented and consumed online. ReadWriteWeb gave more details of the type of software he’s developing.

— A couple of addenda to last week’s linking discussion: Former Wall Street Journal columnist Jason Fry wrote about solving the workflow issue at newspapers, and at the Guardian, Dan Gillmor called out lazy linking — linking to a summary, rather than the original piece — in online aggregation.

— CUNY j-prof Jeff Jarvis made a case for news as conversation and the value of comments, and at 10,000 Words, Alex Schmidt wrote about the way poisonous online comments can affect reporters.

— Finally, Canadian media consultant Ken Goldstein issued a paper looking at decline circulation of newspapers in Canada, the U.S., and the U.K. He included a possibly remarkably prescient 1964 quotation by media theorist Marshall McLuhan: “The classified ads (and stock-market quotations) are the bedrock of the press. Should an alternative source of easy access to such diverse daily information be found, the press will fold.”

May 13 2011

14:00

This Week in Review: New business models and traffic drivers in online news, and wrangling over app ads

Every Friday, Mark Coddington sums up the week’s top stories about the future of news.

Leaving the old ad model behind: Much of the commentary about digital news this week was generated by two big reports, one on the business of digital journalism and the other on its consumption. We’ll start on the business side, with the Columbia j-school’s study on what we know so far about the viability of various digital journalism business models. As Poynter’s Bill Mitchell suggested, the best entry point into the 146-page report might be the nine recommendations that form its conclusion.

Mitchell summed the report up in three themes: The audience for journalism is growing, though translating that into revenue is a challenge; the old model of banner ads isn’t cutting it, and news orgs need to look for new forms of advertising; and news orgs need to play better with aggregators and sharpen their own aggregation skills. In his response to the study, Reuters’ Felix Salmon focused on the advertising angle, arguing that journalism and advertising have too long been linked by mere adjacency and that “when you move away from the ad-adjacency model, however, things get a lot more interesting and exciting.”

The New York Times’ story on the report centered on advertising, too, particularly the growing need for journalists to learn about the business side of their products. (That was media consultant Mark Potts’ main takeaway, too.) Emily Bell, a scholar at the center that released the study, said that while journalists need to understand the business of their industry, integrating news and sales staffs isn’t necessarily the way to go.

The J-Lab’s Jan Schaffer recommended that news orgs respond to their business problems by learning from smaller startups and incorporating them more thoroughly into the journalism ecosystem. And paidContent’s Staci Kramer advised news orgs to focus on regular audiences rather than fly-by visitors: “Outwardly we like to complain about content farms; in reality, a lot of what news outlets are doing to the side of those front-page stories isn’t very different.”

Facebook’s growth as news driver: The other major report was released by the Pew Research Center’s Project for Excellence in Journalism and looked at how people access news on the web. This study, too, found that despite a small core of frequent users, news sites are dependent on casual users who visit sites infrequently and don’t stay long when they’re there. Poynter’s Rick Edmonds conveniently distilled the study into five big takeaways.

The study also found that while Google is still the top referrer to major news sites, Facebook is quickly emerging as a significant news driver, too. University of British Columbia j-prof Alfred Hermida said this lines up with recent research he’s done among Canadians, and GigaOM’s Mathew Ingram said it showed that while Google is a dominant source for online news now, Facebook is primed to succeed it.

Meanwhile, the study also found that surprisingly little traffic to news sites is driven by Twitter. Lauren Dugan of All Twitter said this finding casts some doubt on the idea that Twitter is “a huge link-sharing playground,” though the Wall Street Journal’s Zach Seward said the study misses that Twitter referrals are undercounted.

The Twitter undercounting was one of several problems that TBD’s Steve Buttry had about the study, including inconsistent language to characterize findings and a bias toward large news organizations. “This study probably has some helpful data. But it has too many huge holes and indications of bias to have much value,” Buttry wrote.

Pricing ads and subscriptions on tablets: Condé Nast became the third major magazine publisher to reach an agreement with Apple on app subscriptions, and one of the first to offer an in-app subscription, with The New Yorker available now. (Wired subscriptions are coming next month.) Time Inc., which reached a deal with Apple last week, clarified that it won’t include in-app subscriptions, which would be where Apple takes that now-infamous 30% cut. The Financial Times, meanwhile, is still negotiating with Apple.

Forbes’ Jeff Bercovici explained why publishers may be warming to Apple’s deal: Turns out, more people are willing to share their personal data with publishers feared. Still, Mathew Ingram of GigaOM used iFlowReader’s bad Apple experience as a warning to other companies about the dangers of getting into bed with Apple.

Now that Apple-publisher relations have thawed, the New York Times’ David Carr moved to the next issue: Negotiations between publishers and advertisers over how valuable in-app ads are, and how much those ads should cost. Time.com’s Chris Gayomali wondered why magazines are more than giving away app subscriptions with print subscriptions, and concluded that it’s about getting more eyeballs on the print product, not the app, in order to maintain the all-important ad rate base.

In other words, Carr said in another post, publishers are following the old magazine model, where the product is priced below cost and the money is made off advertising instead. He questioned the wisdom of applying that strategy to tablets: “the rich advertising opportunity that will produce may be a less durable and less stable business than grinding out highly profitable circulation over the long haul.”

A postmortem on Bin Laden coverage: It’s now been close to two weeks since the news of Osama bin Laden’s death broke on Twitter, but plenty of folks were still discussing how the story was broken and covered. Gilad Lotan and Devin Gaffney of SocialFlow put together some fascinating visualizations of how the news spread on Twitter, especially the central roles of Donald Rumsfeld staffer Keith Urbahn and New York Times reporter Brian Stelter. Mashable’s Chris Taylor concluded from the data that trustworthiness and having active followers (as opposed to just lots of followers) are more important than ever on Twitter.

Media consultant Frederic Filloux was mostly reassured by the way the traditional news outlets handled the story online: “For once, editorial seems to evolve at a faster pace than the business side.” There were still folks cautioning against going overboard on Twitter-as-news hype, while the Telegraph’s Emma Barnett wondered why pundits are still so surprised at the significant role Twitter and Facebook play in breaking news. (“It’s exactly what they were designed for.”)

New York Times public editor Arthur Brisbane gave the blow-by-blow of how his paper responded to the story, highlighting a few tweets by Times reporters and editors. Reuters’ Felix Salmon chastised Brisbane for not including Brian Stelter’s tweets, which were posted a good 15 minutes before the ones he included. The exclusion, Salmon surmised, might indicate that the Times doesn’t see what Stelter did on Twitter as reporting.

Google News founder Krishna Bharat compared the way Google handled 9/11 and Bin Laden’s death, marveling at how much more breaking-news coverage is available on the web now. The Lab’s Megan Garber used the occasion to glean some insights from Bharat about trusting the authority of the algorithm to provide a rich palette of news, but at Search Engine Land, Danny Sullivan used the Bin Laden coverage to point out some flaws in Google News’ algorithm.

Reading roundup: Lots of interesting little rabbit trails to choose from this week. Here are a few:

— ComScore’s April traffic numbers are out, and there were a number of storylines flowing out of them: Cable news sources are beating print ones in web traffic, the New York Times’ numbers are down (as expected) after implementation of its paywall, and Gawker’s numbers are starting to come back after dropping last year with its redesign.

— Last week, ESPN columnist Rick Reilly told graduating students at the University of Colorado’s j-school to never write for free. That prompted Jason Fry of the National Sports Journalism Center and Craig Calcaterra of MSNBC.com’s Hardball Talk to expound on the virtues of writing for free, though Slate’s Tom Scocca took Reilly’s side.

— Late last week, Google lost an appeal to a 2007 Belgian ruling forcing it to pay newspapers for gaining revenue for linking to their stories on Google News.

— Finally, two thoughtful pieces on brands and journalism: Jason Fry at Poynter on assessing the value of organizational and personal brands, and Vadim Lavrusik at the Lab on journalists building their brands via Facebook.

September 28 2010

10:01

Mediaweek: Condé Nast launches business competition for editorial staff

Condé Nast has launched a competition for editorial staff in the US to come up with new business ideas and projects. The pitch deemed to have the most money-making potential will be rewarded with travel credits, reports Mediaweek, which suggests that the publisher is introducing more sales department incentives into the editorial operations of the company’s titles.

Full story on Mediaweek at this link…Similar Posts:



September 07 2010

18:00

Entrepreneur summer school reveals startups aren’t easy

Fall’s just around the corner, so we thought it would be a good time to check in on how the pupils of Elizabeth Spiers’ summer school for entrepreneurs fared.

We mentioned back in June that ten small companies would get to participate in a 90-day program designed to get their startups off the ground. They’d get free advice, instruction and homework assignments from Spiers, a media consultant in New York whose had a hand in founding a number of successful sites, including Gawker and Mediabistro Fishbowl sites. The class hosted guest speakers from companies like LearnVest, Guest of a Guest, the Barbarian Group and Conde Nast.

Did the students all pass with flying colors? Of the ten companies, one dropped out, a few didn’t make much progress, but about half made a serious dent in meeting their summer goals.

“Some people think they want to run a business,” Spiers told me, “then you go do the actual work and you realize you don’t. It’s better to learn that in the classroom setting.”

Spiers says she thought the program was successful enough that she’s planning on another course in the spring. She expects the structure to largely stay the same. This time around, the class met for 12 weeks, along with individual meetings with each founders. Once a week she brought in an interesting speaker. The multiple perspectives helped round out the curriculum.

“If it had just been me hammering away, it wouldn’t have been as good,” Spiers says. “I think most of the questions were answered one way or another.”

Before the spring, Spiers says she plans to incorporate the class as a nonprofit to cover its costs. This summer she handled supply costs and found some space in a client’s office.

I spoke with the founders of two of the startups Spiers said made good progress this summer. Fashism, a site where you can get unbiased feedback on questions like “does this dress look frumpy,” has been live for about a year. Its owner, Brooke Mooreland, quit her job recently to make the social fashion site her full-time focus. Her goal for the summer was to launch an iPhone app (which is live in the iTunes Store) and to get ready to meet with investors, which she says she did.

Mooreland says the key to the class was access to Spiers, who’s been through the startup process many times. She ran her business plan and her investor pitch by Spiers, looking for input. “Does this sound good to you?” was one of her frequent questions — “[Spiers] was able to give me good advice,” Mooreland says.

The founders of Of a Kind were not so far along. Their goal is to launch the site November, which they say they’re on track to do. For them, the summer was about getting all the details in order to actually launch. The site will offer stories about up-and-coming fashion designers, who will sell an exclusive item on the site. (It’s inspired by the art site 20×200, where artists sell original prints for as little as $20. The founder, Jen Bekman, was one of the speakers in class this summer.)

“One of the things we really took away from the speakers in the class was flexibility,” cofounder Erica Cerulo told me. “Our original business plan was very much ‘this has to be this way.’ We learned that this business has to grow and change. We had an inherent sense of that, but hearing people say it really makes it sink in.”

As far as changes to their original plan, the course helped them realize that editorial should get equal weight with selling. They need an invested, engaged audience to sell the products — plus, it opens up the opportunity for advertising revenue.

I asked the two founders, Cerulo and Claire Mazur, what they’re working on in the final days before launch. Their answer in unison: “Everything.”

Photo by Robert S. Donovan used under a Creative Commons license.

December 21 2009

17:48

Condé Nast launches monthly GQ iPhone app

Following in the footsteps of the Guardian, GQ’s magazine has announced its first monthly application for the iPhone.

According to a report from paidContent.org, the application, which offers an exact replica of the magazine, the US version of the app has been approved by the Audit Bureau of Circulations (ABC), which means purchases of the app will count towards the magazine’s circulation figure.

Unlike the Guardian, where a one-off fee is paid for unlimited access to content, in the UK GQ is charging £1.79 for each edition.

Publisher of GQ, Conde Nast, is also reportedly planning more iPhone apps for its other magazine titles.

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December 05 2009

07:22

Here comes the iTunes of news? News Corp, Time Inc et al plan ’store’

The WSJ reports on News Corp. joining “a consortium of magazine companies that are working on creating a digital store and common technology and advertising standards to sell their titles on electronic readers, mobile devices and other digital devices.

“The new venture is likely to be announced next week, according to people familiar with its plans, though it will be longer before the project is up and running. It will be owned jointly by the five participating companies, which in addition to News Corp. are Time Warner Inc.’s Time Inc., Conde Nast Publications Inc., Hearst Corp. and Meredith Corp.”


I’ve written before on why such an ‘iTunes model’ isn’t as easy a route as it may appear, but it is a step up from the basic paywall model. If they can make it convenient enough or include features worth paying for – rather than focusing blindly on the value of their ‘content’ – then there may be something in it.

UPDATE: PaidContent has more detail on the project.


[Posted with iBlogger from my iPod touch]


November 30 2009

22:34

Condé Nast, Hachette Magazines Push into iPhone Apps

Turning a magazine into an iPhone app might seem as simple as shrinking the printed page to about a sixth of its normal size. But as magazines develop iPhone and other mobile applications to supplement their print editions, they're finding that adapting to the new medium is a significant challenge.

Years ago, magazines realized that their websites had to do more than just display the text of articles. Likewise, their mobile incarnations need to offer a unique experience. After being slow to the game, innovative publishers are now finding ways to re-imagine their content and use the mobile platform to its full advantage -- for both users and advertisers.

Reimagining Magazines for Mobile

Mobile apps distribute magazine publishers' content and brands to an audience advertisers want to reach. Making print pages smaller is unappealing, though, so magazines are creating other types of apps that are helpful companions to print content, or that serve up content in an exciting new format.

woman's day app screenshot.jpg"We're thinking of ourselves as brands, not magazines," said Yaron Oren, director of mobile strategy and operations at Hachette Filipacchi Media U.S., publisher of Elle, Woman's Day and Car and Driver, among other magazines.

Oren said the goal of his company's iPhone apps -- which include Woman's Day Cooking Assistant and the Car and Driver Buyer's Guide -- is not just to repurpose content, but to build the app users' relationship with magazine brands by providing useful information or a fun experience.

"That can be [through] an entertainment-oriented app based pretty closely on magazine or web content, or it can be a utility or a location-based service that has content different from anything else we've done," he said.

Similarly, Rodale Inc., whose magazines include Men's Health, Women's Health and Runner's World, has developed iPhone apps to complement their titles. Some of their apps demonstrate the workouts contained in magazine articles and let users track their workouts. Sean Nolan, vice president of online operations and external online marketing at Rodale, said these apps make information more usable than it is in the print format.

"Before we had the apps, we had guys tearing out the workout poster and going to the gym with it," said Nolan. "Now, for a small fee, they can take the app, take their music on the phone, and have the workouts with them."

Condé Nast's companion apps include Wired Product Reviews and the Lucky At Your Service shopping app. Both of these free apps use the magazines' brand recognition and subject matter to provide specialized services. The Lucky app even uses GPS information to provide shopping details. Many publishers said they plan to add more shopping functionality into apps as a way of generating additional revenue.

Birth of the 'Replica' iPhone App

Condé Nast's GQ magazine app, which was released two weeks ago, has ventured into entirely new territory. It's what Sarah Chubb, president of Condé Nast Digital, called a "replica" iPhone app because it qualifies with the Audit Bureau of Circulations as a digital edition of the magazine. That means app sales are included in circulation figures as "digital single copy sales." The app presents the content of the entire December 2009 issue, reformatted and packaged with some exclusive extras, for $2.99 -- less than the print edition's cover price.

"We developed the app in-house, and the team is a group of user interface people and tech and design people together," said Chubb. "They were given the challenge to make the app feel like the December issue, and they came up with a solution that we can use for any of our magazines."

gq app screenshot-splash.jpgThe app allows users to read articles, zoom in on pictures, and purchase some of the clothing and other items contained in the magazine. It's also possible to buy a subscription to the print edition of GQ through the app. Condé Nast may eventually offer an app-based subscription as well. The app was an opportunity to sell advertising deals encompassing print, web and mobile, which Chubb described as "a great revenue driver."

Developing a Magazine App

Recognizing that their content now has to be wherever consumers want it, magazines are adapting their production process to include mobile considerations. Editors, writers and designers all play a role, and some publishers have brought in external developers as well.

"We have people all along the way who have their hands in the content and have ideas that get pushed forward because they make good sense for the device," said Nolan of Rodale.

Some apps, like Rodale's Runner's World Shoe Shop, are also able to track what users read most, and that data can be used to refine the content.

Business-to-business magazines are also branching out into iPhone apps. Texterity is one company that helps B2B publications bring their content to the iPhone. Its first magazine-branded apps will launch next month, pending approval from the iTunes App Store.

"The iPhone app is great for trade magazines and enthusiast magazines," said Wendy Zingher, vice president of sales and marketing for Texterity.

Many B2B magazines have successfully launched websites and email distribution methods that provide frequent updates, so their readers are accustomed to receiving and seeking out fresh information, according to Zingher.

"They will check in multiple times per day and want to know what's going on in that area of their lives," she said.

Texterity considered offering publishers the opportunity to distribute their content visually through a more universal "reader" app that would access numerous titles. Instead, the company decided to develop dedicated, branded apps for each magazine that simulate the familiar look of their print editions. Just like their consumer magazine counterparts, B2B publishers seem more interested in being represented by their unique brands, Zingher said, than in being accessible through a more comprehensive iPhone magazine reading app.

Magazine apps can also include social features that let users with similar interests interact. Texterity's apps will allow mobile readers to add comments that will show up on the magazines' websites. Condé Nast also plans to integrate Twitter and Facebook into its apps to "help friends come together around the content," said Chubb.

Wherever Readers Go, Magazines Follow

men's health workouts app screenshot.jpgThe challenge of bringing magazines into the mobile reading age is just beginning, and iPhone apps are just an opening foray. The need to reach other mobile devices, such as BlackBerrys and Google Android phones, creates a more complex project for publishers, who have to prepare apps for different platforms.

"This is a challenge we share with every content provider in the universe," said Nolan of Rodale. "We hope that all this will get worked out by the customer over the next few years."

But phones aren't the only mobile devices today, and certainly won't be in the future.

"The definition of mobile is already evolving -- soon everything will be connected," said Oren of Hachette Filipacchi. "So when we think about the services we're creating for mobile, we're not just thinking about what's relevant for a phone, but for any device that's portable."

Further broadening this project, Condé Nast also announced an exclusive joint effort with Adobe to develop a magazine software template for tablet computers, which will be prepared first for Wired. It can then used for the company's other magazines.

"We're trying to work with anyone we think will have a viable product that will be attractive to our kind of consumer. If those readers are moving toward all digital, we'll sell it to them," said Chubb. "We need to be where they want to buy us."

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November 26 2009

10:48

NYTimes.com: Publishers to launch online magazine newsstand

From 24 November, but worth flagging up this project in the US: a consortium of magazine publishers which includes Time Inc. and Condé Nast are to build an online magazine newsstand in ‘multiple digital formats’, reports the New York Times.

“The formation of a new company to run the online newsstand – sometimes characterized as an ‘iTunes for magazines’ – may be announced in early December. Time, Condé Nast, Hearst, and Meredith all intend to be equity partners in the new company, although the deals have not yet been signed.”

Full post at this link…

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