- monthly subscription or
- one time payment
- cancelable any time
"Tell the chef, the beer is on me."
In Calcutta, a three-month old print daily aimed at youth has already become the third most widely circulated newspaper in the city. Ebela, a Bengali language publication, had an expensive and heavily-marketed launch, complete with branded candies. The paper’s owners, the ABP Group, say ad revenues are steadily increasing.
The positioning line of Ebela is “Ami Amar Mato” (“I am what I want to be”). This mirrors the psyche of India’s new generation, which is bold, colourful, positive, young–at-heart, free-spirited, forward-looking, and brimming with energy.
It was just three years ago that the Journal Register Co. filed for bankruptcy, its collection of small local newspapers hit hard by the economic crisis and the secular decline of the newspaper industry.
But it came out of bankruptcy in only six months, and the changes started coming quickly: bringing in John Paton as CEO, committing to growing digital revenue, hiring away top talent, experimenting with open-source software and open-to-the-community newsrooms…it’s been hard to keep up with its one-new-initiative-a-week pace. They’ve been on the move, in a way that frankly hasn’t been the norm in the American newspaper business.
Through it all, Paton emerged as the industry’s most vocal cheerleader for a digital-first culture — and that was even before “digital first” went from a mantra to the name of a new parent company that would also run the much larger MediaNews chain of newspapers. JRC reported digital revenue growth as strong or stronger than their peers and seemed to be making good progress towards a company-wide culture change.
So today, JRC announced…it was declaring bankruptcy again. Here’s Paton:
The Company exited the 2009 restructuring with approximately $225 million in debt and with a legacy cost structure, which includes leases, defined benefit pensions and other liabilities that are now unsustainable and threaten the Company’s efforts for a successful digital transformation.
From 2009 through 2011, digital revenue grew 235% and digital audience more than doubled at Journal Register Company. So far this year, digital revenue is up 32.5%. Expenses by year’s end will be down more than 9.7% compared to 2009.
At the same time, as total expenses were down overall, the Company has invested heavily in digital with digital expenses up 151% since 2009. Journal Register Company has and will continue to invest in the future.
Journal Register expects to emerge from bankruptcy in around 90 days; operations will continue uninterrupted during the process.
Since JRC is as watched as any newspaper company outside The New York Times Co., here are three quick thoughts on today’s move, based on Paton’s post, the company’s press release, and our previous reporting.
JRC is owned by Alden Global Capital, a hedge fund that has investments across much of the publicly traded U.S. newspaper industry. Those investments, combined with its merger-without-merging with MediaNews last year, has led some, like our own Martin Langeveld, to posit that Alden is pushing for a major consolidation of the newspaper industry.
It’s easy to imagine how some of JRC’s recent moves — like its outsourcing of national business news and its chain-wide aggregation project Project Thunderdome — could scale well across a broader swath of the industry.
JRC will apparently enter bankruptcy with a buyer at the ready — something called 21st CMH Acquisition Co., “an affiliate of funds managed by Alden Global Capital LLC,” which has submitted a signed stalking horse bid. So it appears that, in the end, Alden will still be in control, with Paton continuing as CEO.
(I’m not sure how much to read into the creation of something called an acquisition company — is it just to acquire JRC, or is it a staging area for further acquisitions and consolidation, a sort of decades-later echo to what Gannett did buying up family-owned papers? Does 21st CMH stand for “21st Century Media Holdings”? Just a guess.)
Newspaper valuations have for the most part stopped plummeting — if only because there’s only so far for a still-profit-making company to fall. (Year-to-date, some are actually up in stock price: The New York Times Co. is up 21.5 percent, Gannett’s 13.5 percent.) But it’s reasonable to think there are still any number of companies that would be happy to find an exit to scale. By re-buying, in effect, a slimmed-down JRC, Alden seems to be showing it’s still interested in that model.
(Although it’s more than a little crappy that JRC’s employee FAQ says decisions about everyone’s job status will be “made by the ultimate purchaser” — when that ultimate purchaser is apparently just another arm of the current owner. It’s theoretically possible that, at a bankruptcy auction, someone could outbid Alden for JRC, but it seems highly unlikely; Alden’s one of the few folks wanting to put money into newspapers rather than pull it out.)
It’s worth noting that Paton didn’t become CEO until after the last bankruptcy was concluded. (Paton joined JRC’s board in August 2009 when the company came out of bankruptcy; he became CEO in early 2010.) Paton is arguing now that the terms of the previous bankruptcy were built on higher hopes for print than has since proven justified — that the company didn’t shave enough off its debt and contractual obligations to hack it in today’s business.
We’re on the right track with digital revenue, he’s saying, but we’re still handcuffed by fiscal decisions made from a print-is-healthy mindset:
All of the digital initiatives and expense efforts are consistent with the Company’s Digital First strategy and while the Journal Register Company cannot afford to halt its investments in its digital future it can now no longer afford the legacy obligations incurred in the past.
Many of those obligations, such as leases, were entered into in the past when revenues, at their peak, were nearly twice as big as they are today and are no longer sustainable. Revenues in 2005 were about two times bigger than projected 2012 revenues. Defined Benefit Pension underfunding liabilities have grown 52% since 2009.
Timing is, truly, everything. The newspaper companies that made terrible-in-hindsight decisions to bet on print at peak valuations — McClatchy buying Knight Ridder, for instance — were stuck with crippling debt obligations. But if you just stuck around long enough, that major metro that cost $562 million in 2006 could be had for $55 million in 2012. Alden, as a fund, focuses on distressed assets, those available at market values below their true value. (You can see why they’d be interested in newspapers.)
JRC seems to suffer from an analogous problem: It went through its bankruptcy at a time when some executives still thought the downturn was cyclical and not permanent. That left it with obligations that likely can’t be sustainable in the primarily-digital-revenue model Paton is building toward. One imagines that Paton won’t make that same mistake this go-round. (Sister company MediaNews already had its strategic, debt-trimming bankruptcy.)
That’s little comfort if you’re owed a share of those pension benefits now deemed “no longer sustainable,” of course. But the reality is that most newspaper companies are still not close to a footing that’s sustainable for the long term. Anyone who thought the cuts were over is going to be disappointed for, at a minimum, several more years.
Paton’s been the industry’s most effective evangelist for a digital future. (It helps that he took over a newspaper chain not known for quality or tradition beforehand; he has a free hand that Arthur Sulzberger or Don Graham don’t to do deep institutional surgery.) JRC and Digital First have been great at putting forward an innovative face, from its heavy-hitter advisory board to small demonstration projects (Ben Franklin Project) and more substantial rethinkings of workflows (Project Thunderdome).
And they’ve done so in a way that is both open (they’re happy to tell you about the amazing things they’re doing) and closed (not reporting financial results, as publicly traded companies must).
But it’s been harder to be certain how Paton’s optimism has translated into results. Digital revenues are growing, but from an unspectacular base. Many of the company’s initiatives seem, while interesting, unlikely to move the revenue needle much. Print revenues are a problem, just as they are at its peers. Today’s release illustrates that JRC hasn’t yet found the magic formula.
But could Paton’s plan be a model for the local and regional newspaper industry as a whole, as some have dearly hoped?
Paton now will have his chance to prove it. In around 90 days, he’ll have had his chance to shed the costs he wants to shed. No longer will “we were built for print” be a good excuse; if two bankruptcies can’t clear out all those cobwebs, I’m not sure what could. “Digital first” will move from a slogan to a corporate name to a foundation of the company’s business structure.
The newspaper industry’s problem today is not that its leaders don’t know how to make money in media. Lots and lots of money still flows through newspaper offices every day. It’s that they can no longer make that money at the scale they could 10 years ago — but their cost structures are still tied to that old scale. That’s why the past half-decade has been a seemingly endless string of layoffs and cutbacks, shaving dollars and people to keep up with revenue declines, while still being stuck in a fundamentally print-driven structure.
Meanwhile, as newspapers were busy writing press releases about layoffs, their nimble online-native competitors have been able to start from a blank sheet of paper and build for a digital scale of revenue.
This bankruptcy will allow JRC to have get the closest thing the newspaper business has seen to a true reboot.
Now all Paton has to do is deliver.
The shift from print to mobile reading went into overdrive this holiday season, with ownership of e-readers like the Kindle and tablets like the iPad doubling in a single month.
A new survey-based study from the Pew Internet & American Life Project reports that the percentage of adults owning tablet computers went from 10% to 19% between mid-December and early January, with the same growth rate seen among black-and-white e-readers like the Kindle.
Source: The Dec. 2011 and Jan. 2012 Pew Research Center's Internet & American Life Project
So how should content providers and publishers react to this news? As the founder of e-book publishing startup BookBrewer, I live and die by these kinds of numbers, and they're obviously good for us. But they should serve as a wake-up call for traditional publishers -- especially newspapers, magazines and book publishers that still manage their businesses around shrinking print audiences.
LOOKING AT THE NUMBERSThe Pew study said tablet and e-reader adoption sped up due to holiday gifting, but it was amped by two new value-priced color tablets: Amazon's $199 Kindle Fire and Barnes & Noble's new $249 Nook Tablet, both of which are far below the iPad's $499-$829 price point. Amazon doesn't release exact figures on the Kindle Fire, but investment research firm Morgan Keenan recently estimated that Amazon sold 4-5 million Fires over the holidays at the expense of 1-2 million iPads that Apple would have sold absent the Fire.
Also noteworthy in the study is that the sex divide has disappeared -- at least for tablets. In November of 2010, 60% of tablet owners were male. Today? It's at a healthy 50-50 male to female ratio. Curiously, black-and-white e-readers went in the opposite direction, with women now making up 57% of of e-reader owners. (My theory on that based on e-book sales data I'm privy to as the owner of BookBrewer is that romance e-books play a role, but I digress.)
In both cases, people with more education and higher incomes were more likely to own a tablet or e-reader, although the difference was slightly less for e-readers.
GOODBYE PRINT?
So what's left for the print market? This is a valid question because the contrast in trends for tablets and traditional print couldn't be more stark. Think about it. In just one month the number of people with a sexy new device that can display books, websites and streaming video doubled. When's the last time you saw those kinds of figures for mass-market newspapers or magazines?
What's more, these tablets are generating significant sales from content after very little time on the market. An RBC Capital analyst projects that the brand-new Kindle Fire will make Amazon $100 over the lifetime of the device. The revenue comes directly from sales of e-books, apps and streaming content from Amazon.
Compare that to Pew's figures on yearly newspaper revenue, which has been going in the opposite direction for some time.
Having been completely out of the newspaper industry for over two years, I see the glass as more than half full, but I keenly remember how it felt to work for a newspaper and feel tied to a tanking business model. That's partly why I've been urging journalists and news organizations to repackage and publish their content as e-books. E-book sales were surging even before the numbers looked this rosy, and they represent a new way to monetize content without advertising.
And here's the great news there. I now have multiple, solid examples that readers buy e-books about news.
Our first news partner, The Huffington Post, has published several e-books through BookBrewer that quickly moved into the No. 1 spots of their categories -- including this latest about the Occupy Wall Street movement. And we're seeing a similar effect with The Denver Post's first e-book about Tim Tebow and the Denver Broncos. Based on these successes, we're openly looking for more news organizations that are ready to jump into the e-book world with both feet, so let me know if that means you or your organization.
Here's just one example. On January 8, we started pre-order sales for the Post's Tebow book as a Print on Demand paperback through our partner Consolidated Graphics. Even though readers have a choice between e-book and print, we've been amazed to see the print orders outpace the e-book orders by a 3-to-1 ratio. The book's print pre-order sales reached $23,000 in just 10 days, and they show no signs of slowing down.
I heard something similar from the folks at O'Reilly Publishing at a session I ran at their recent NewsFoo camp in Phoenix. Founder Tim O'Reilly told participants that his company sells twice as many e-books from the O'Reilly website than it does directly through Amazon. Those e-book sales are high, but print sales still make up at least half of their business. More and more of those print books are printed on demand from online orders, too.
GIVE INFORMATION CONSUMERS WHAT THEY WANT
Here's what I see as the broader trend. It's not the printed book itself that's dying, but rather the way that books are mass-marketed, shipped to physical book stores, retailed, sold at a loss, and ultimately shipped back to publishers for a refund. (And what does that tell you about my view on daily newspaper delivery? It should be obvious. Stop the insanity! Newspapers should be personalized and on demand, too.)
On the same note, the growth in tablets and e-readers says more about peoples' desire for convenience and choice than it does about gadget lust.
Information consumers now expect to get whatever they want, whenever they want, in whatever form they choose. Tablets, e-readers and smartphones speak directly to that need, but so does an impulse buy of a printed book that shows up at your doorstep five days later. In fact, more and more of those purchases initiate from smartphones. The need for on-demand, multi-platform publishing -- perhaps including an app or two -- has never been more important.
Livemint, India :: A slowing economy in 2012 could put a speed breaker on advertising growth rates. The advertising industry, including print, broadcasting, radio, digital and outdoor media, grew 12-15% in 2011, riding a robust first half. However, in the new year, the growth rate will slip into single digits—8-9%, according to a clutch of advertising chief executives from India’s leading media agencies.
[Ashish Pherwani, Ernst and Young:] So, wherever RoI is measurable, spends will not be reduced. This explains why radio and out-of-home will be more hit than print and TV media.
Continue to read Anushree Chandran | Abhilasha Ojha, www.livemint.com
paidContent :: More developments on the theme of printed newspapers going digital first. The Guardian has announced that the MediaGuardian, plus two other weekly supplements on education and society, will cease to be a standalone printed supplements after next week. The sections will be cut down in size and subsequently run in the main newspaper. They will remain fully operational online.
Ingrid Lunden, paidContent argues that "with so much of the country’s news-reading audience now shifted online—both for breaking news and for job hunting—a comprehensive printed edition is perhaps less essential now than it used to be." Jobs will not be affected.
The changes - continue to read Ingrid Lunden, paidcontent.co.uk
The Atlantic :: This morning Google released its first U.S. edition of its magazine Think Quarterly. A limited number of business executives will receive a copy by snail mail. For everyone else, a free version is available online.
The New York Times reports that the print edition is bound with a magnetic cover, has heat-sensitive end paper, comes fastened with a blue ribbon, and is embossed with an old-fashioned seal.
[Rebecca J. Rosen:] (Think Quaterly is) a fancy print publication from the overlords at Google entices business executives with tales of the search giant's unparalleled creativity
"Think Quarterly" - continue to read Rebecca J. Rosen, www.theatlantic.com
Read the free "Think Quarterly" edition online here thinkwithgoogle.com
Are you a New York Times subscriber? Are you related to one? If so, today’s your lucky day: The Times, in an email just sent out to print subscribers, is announcing that subscribers will now be able to share their digital access with a family member of their choosing. Think of it as the Frank Rich Discount, bring-a-plus-one edition. (The Times is also offering the deal to digital-only types who subscribe to the most expensive, $35-every-four-weeks package.)
It’s an interesting move. For one thing, it’s another way for the Times to differentiate its price points, which for digital-only are currently $15 for web and smartphone app, $20 for web and tablet app, or $35 for web, smartphone, and tablet. That $35 top-tier item has always seemed a little high next to its peers, and bringing this sharing mechanism only to those subscribers could give another reason for some to pony up.
But, more interestingly, the move shifts the calculus of the NYT’s porous paywall, for which the locus of subscription has been a single person. In print, a family was able to share the paper among husband and wife, son and daughter — maybe even with a neighbor. Digital subscriptions, with their logic of one-subscription-per-person, reframed that community ethos: When the paper rolled out its pay meter, its core consumer became the individual, not the group.
So while today’s share-a-subscription move may be a way, of course, for the Times to collect more email addresses and other user data, and to build its user base, and to encourage Times subscribers to sync up their print and their digital accounts…it’s a move that also seems aimed at recapturing some of the communal aspects of paper subscription and consumption — just on a digital plane. (I’m sure the Times would love nothing more than to spark a few intra-family squabbles over who gets to share Mom’s digital access.)
And its language announcing the new policy bears that out. As of today, the Times stresses, digital subscribers can share digital access with a family member — not a friend, not a coworker, not an acquaintance, but an actual relative. “Now you can share your All Digital Access with a family member at no additional charge,” the email says. Click on the link included in the email, and you’re sent to a “Share All Digital Access” page that, though fairly sparse, repeats the term “family member” three times.
And in the Shared Access FAQ, the “family member” count jumps to seven.
Which is curious, since the invite page uses a text field that could be filled in with the name and email address of anyone, family or no. (Dear Colin Firth: You don’t know me, and we’re not related. But I’ve got a New York Times Digital Access invite with your name on it…)
And leaving aside the pesky philosophical questions (what is family, really?), what the move also means is that people who are already NYT subscribers, as of today, have been granted one of the more powerful perks of the early adopters: invitations to a fairly exclusive party. (You didn’t have to be on Twitter the day Google+ rolled out to appreciate the sway of the phrase “I’ve got invites.”) Which is a nice thing for the paper’s existing subscribers — and a nice incentive for more people to join their ranks.
New tools are at their most powerful, Clay Shirky says, once they’re ubiquitous enough to become invisible. Twitter may be increasingly pervasive — a Pew study released yesterday shows that 13 percent of online adults use the service, which is up from 8 percent six months ago — but it’s pretty much the opposite of invisible. We talk on Twitter, yes, but almost as much, it seems, we talk about it.
The big debates about Twitter’s overall efficacy as a medium — like the one launched by, say, Malcolm Gladwell and, more recently, Bill Keller, whose resignation from the New York Times editorship people have (jokingly, I think?) chalked up to his Twitter-take-on column — tend to devolve into contingents rather than resolve into consensus. An even more recent debate between Mathew Ingram and Jeff Jarvis, which comparatively nuanced, comparatively polite) ended with Ingram writing, “I guess we will have to agree to disagree.”
But why all the third-railiness? Twitter, like many other subjects of political pique, tends to be framed in extremes: On the one hand, there’s Twitter, the cheeky, geeky little platform — the perky Twitter bird! the collective of “tweets”! all the twee new words that have emerged with the advent of the tw-efix! — and on the other, there’s Twitter, the disruptor: the real-time reporting tool. The pseudo-enabler of democratic revolution. The existential threat to the narrative primacy of the news article. Twetcetera.
The dissonance here could be chalked up to the fact that Twitter is simply a medium like any other medium, and, in that, will make of itself (conversation-enabler, LOLCat passer-onner, rebellion-facilitator) whatever we, its users, make of it. But that doesn’t fully account for Twitter’s capacity to inspire so much angst (“Is Twitter making us ____?”), or, for that matter, to inspire so much joy. The McLuhany mindset toward Twitter — the assumption of a medium that is not only the message to, but the molder of, its users — seems to be rooted in a notion of what Twitter should be as much as what it is.
Which begs the question: What is Twitter, actually? (No, seriously!) And what type of communication is it, finally? If we’re wondering why heated debates about Twitter’s effect on information/politics/us tend to be at once so ubiquitous and so generally unsatisfying…the answer may be that, collectively, we have yet to come to consensus on a much more basic question: Is Twitter writing, or is it speech?
The broader answer, sure, is that it shouldn’t matter. Twitter is…Twitter. It is what it is, and that should be enough. As a culture, though, we tend to insist on categorizing our communication, drawing thick lines between words that are spoken and words that are written. So libel is, legally, a different offense than slander; the written word, we assume, carries the heft of both deliberation and proliferation and therefore a moral weight that the spoken word does not. Text, we figure, is: conclusive, in that its words are the deliberate products of discourse; inclusive, in that it is available equally to anyone who happens to read it; exclusive, in that it filters those words selectively; archival, in that it preserves information for posterity; and static, in that, once published, its words are final.
And speech, while we’re at it, is discursive and ephemeral and, importantly, continual. A conversation will end, yes, but it is not the ending that defines it.
Those characteristics give way to categories. Writing is X; speaking is Y; and both have different normative dimensions that are based on, ultimately, the dynamics of power versus peer — the talking to versus the talking with. So when we talk about Twitter, we tend to base our assessments on its performance as a tool of either orality or textuality. Bill Keller seems to see Twitter as text that happens also to be conversation, and, in that, finds the form understandably lacking. His detractors, on the other hand, seem to see Twitter as conversation that happens also to be text, and, in that, find it understandably awesome.
Which would all be fine — nuanced, even! — were it not for the fact that Twitter-as-text and Twitter-as-conversation tend to be indicated by the same word: “Twitter.” In the manner of “blogger” and “journalist” and even “journalism” itself, “Twitter” has become emblematic of a certain psychology — or, more specifically, of several different psychologies packed awkwardly into a single signifier. And to the extent that it’s become a loaded word, “Twitter” has also become a problematic one: #Twittermakesyoustupid is unfair, but #”Twitter”makesyoustupid has a point. The framework of text and speech falls apart once we recognize that Twitter is both and neither at once. It’s its own thing, a new category.
Our language, however, doesn’t yet recognize that. Our rhetoric hasn’t yet caught up to our reality — for Twitter and, by extension, for other social media.
We might deem Twitter a text-based mechanism of orality, as the scholar Zeynep Tufekci has suggested, or of a “secondary orality,” as Walter Ong has argued, or of something else entirely (tweech? twext? something even more grating, if that’s possible?). It almost doesn’t matter. The point is to acknowledge, online, a new environment — indeed, a new culture — in which writing and speech, textuality and orality, collapse into each other. Speaking is no longer fully ephemeral. And text is no longer simply a repository of thought, composed by an author and bestowed upon the world in an ecstasy of self-containment. On the web, writing is newly dynamic. It talks. It twists. It has people on the other end of it. You read it, sure, but it reads you back.
In his social media-themed session at last year’s ONA conference, former Lab writer and current Wall Street Journal outreach editor Zach Seward talked about being, essentially, the voice of the outlet’s news feed on Twitter. When readers tweeted responses to news stories, @WSJ might respond in kind — possibly surprising them and probably delighting them and maybe, just for a second, sort of freaking them out.
The Journal’s readers were confronted, in other words, with text’s increasingly implicit mutuality. And their “whoa, it’s human!” experience — the Soylent Greenification of online news consumption — can bring, along with its obvious benefits, the same kind of momentary unease that accompanies the de-commodification of, basically, anything: the man behind the curtain, the ghost in the machine, etc. Concerns expressed about Twitter, from that perspective, may well be stand-ins for concerns about privacy and clickstream tracking and algorithmic recommendation and all the other bugs and features of the newly reciprocal reading experience. As the filmmaker Tze Chun noted to The New York Times this weekend, discussing the increasingly personalized workings of the web: “You are used to looking at the Internet voyeuristically. It’s weird to have the Internet looking back at you….”
So a Panoptic reading experience is also, it’s worth remembering, a revolutionary reading experience. Online, words themselves, once silent and still, are suddenly springing to life. And that can be, in every sense, a shock to the system. (Awesome! And also: Aaaah!) Text, after all, as an artifact and a construct, has generally been a noun rather than a verb, defined by its solidity, by its thingness — and, in that, by its passive willingness to be the object of interpretation by active human minds. Entire schools of literary criticism have been devoted to that assumption.
And in written words’ temporal capacity as both repositories and relics, in their power to colonize our collective past in the service of our collective future, they have suggested, ultimately, order. “The printed page,” Neil Postman had it, “revealed the world, line by line, page by page, to be a serious, coherent place, capable of management by reason, and of improvement by logical and relevant criticism.” In their architecture of sequentialism, neatly packaged in manuscripts of varying forms, written words have been bridges, solid and tangible, that have linked the past to the future. As such, they have carried an assurance of cultural continuity.
It’s that preservative function that, for the moment, Twitter is largely lacking. As a platform, it does a great job of connecting; it does, however, a significantly less-great job of conserving. It’s getting better every day; in the meantime, though, as a vessel of cultural memory, it carries legitimately entropic implications.
But, then, concerns about Twitter’s ephemerality are also generally based on a notion of Twitter-as-text. In that, they assume a zero-sum relationship between the writing published on Twitter and the writing published elsewhere. They see the written, printed word — the bridge, the badge of a kind of informational immortality — dissolving into the digital. They see back-end edits revising stories (which is to say, histories) in an instant. They see hacks erasing those stories altogether. They see links dying off at an alarming rate. They see all that is solid melting into bits.
And they have, in that perspective, a point: While new curatorial tools, Storify and its ilk, will become increasingly effective, they might not be able to recapture print’s assurance, tenacious if tenuous, of a neatly captured world. That’s partly because print’s promise of epistemic completeness has always been, to some extent, empty; but it’s also because those tools will be operating within a digital world that is increasingly — and actually kind of wonderfully — dynamic and discursive.
But what the concerns about Twitter tend to forget is that language is not, and has never been, solid. Expression allows itself room to expand. Twitter is emblematic, if not predictive, of the Gutenberg Parenthesis: the notion that, under the web’s influence, our text-ordered world is resolving back into something more traditionally oral — more conversational and, yes, more ephemeral. “Chaos is our lot,” Clay Shirky notes; “the best we can do is identify the various forces at work shaping various possible futures.” One of those forces — and, indeed, one of those futures — is the hybrid linguistic form that we are shaping online even as it shapes us. And so the digital sphere calls for a new paradigm of communication: one that is discursive as well as conservative, one that acquiesces to chaos even as it resists it, one that relies on text even as it sheds the mantle of textuality. A paradigm we might call “Twitter.”
Photos by olalindberg and Tony Hall used under a Creative Commons license.
Huffington Post :: Canadians living in the bustling metropolis of Montreal and the picturesque city of Victoria are getting a taste of what some media executives hope may be the future -- paying for the news online. The Gazette in Montreal and the Victoria Times-Colonist on Vancouver Island have become the latest testbeds to see if people will pony up to get their local news on the web.
[Alfred Hermida:] Print organisations were never in the business of selling news. They were selling something that people are willing to pay for -- service and convenience.
Continue to read Alfred Hermida, www.huffingtonpost.ca
The Newport (R.I.) Daily News might have been ahead of its time in offering the Frank Rich discount: The newspaper charges a hefty premium for digital-only access in hopes of boosting print subscriptions.
Two years have passed since the Daily News introduced a three-tiered paywall. At the time, executive editor Sheila Mullowney described the move not as a push toward digital, but as the opposite: a “print-newspaper-first strategy.”
That remains the case today.
“The print product is the thing really driving us at this point,” William Lucey, the Daily News’ publisher, told me. “As far the Internet goes, it really has not amounted to a hill of beans yet from a financial point of view.”
That sentiment is borne out in the Columbia Journalism School’s recent report on the business of digital journalism, which digs into the data:
The paper’s site, newportdailynews.com, gets around 80,000 visitors a month. Especially with online ad rates “dropping 20 percent a year,” that’s not enough to sustain the operation, which includes a newsroom of 22 people, Lucey says. Indeed, online ad revenue accounts for only 2 to 3 percent of total advertising for the paper.
After the change was put into effect, “our single-copy sales went up about 300 a day” — a bit less than 10 percent of overall single-copy sales. As the economy improves, “print is coming back. February [2011] was up 35 percent over last year” in ad sales.
As the Daily News has tweaked its price, it has preserved the print-first ethos. Earlier this year, the paper dropped its print+digital subscription price from $245 a year to $157 — a dollar more than the print-only price. A digital-only subscription, on the other hand, costs $345 a year.
The A.H. Belo-owned Providence Journal, the Daily News’ larger rival, has since announced its own paywall, expected to launch in the second half of 2011. Readers of that paper will have to pay for “original and proprietary content.”
It will be interesting to see whether the ProJo’s wall affects the Daily News. Last month I posed a far-flung hypothetical: Would readers pay for news if there were no free alternatives? In Slovakia, nine media companies are experimenting with a unified paywall — pay once for access to all — in an effort to reset years consumer assumptions about free content.
Rhode Island would seem to be (to an extent) a Slovakian analog in the United States. It’s a small, relatively uncompetitive, relatively isolated media market. Take Aquidneck Island (which is officially named, confusingly, Rhode Island), home to the 12,000-circulation Daily News. There’s some competition, sure: An ad-supported blog called Newport Now launched three months after the News’ paywall rose. And a year later, AOL’s Patch made its made its foray into Rhode Island with sites in Newport, Portsmouth, and Middletown — the whole of Aquidneck.
Still, once the ProJo paywall launches, we’ll have an interesting case study: If the only two papers covering Aquidneck are charging for access (and the ProJo hardly covers it like it used to) will citizens be more inclined to pay for online news?
The other question might be: Will that matter? In a piece examining “the uncertain future” of Rhode Island’s journalism scene, media critic David Scharfenberg described the dearth of social networking initiatives, inter-outlet collaboration, and other badges of innovation among the state’s media outlets. “What’s troubling about the Rhode Island mediascape,” he wrote, “is how slowly the players have moved to embrace this project — in an era when speed is nothing less than a matter of survival.”
But it could be that survival is a matter of sticking to roots, not branching out. If you view small newspaper publishing as a business, which it is, there’s still money in print. And it’s not as if the web has suddenly created a global audience for local news about Woonsocket, R.I. (No offense to Woonsocket, “a city on the move!”) Paywall or no paywall, the Daily News’ financial worth may lie in atoms, not bits.
And little Aquidneck Island not alone in that. “There still is value in print, no doubt about that,” the general manager of The Columbia (Mo.) Daily Tribune, has said. ”We shouldn’t be apologetic about it, we shouldn’t be embarrassed by it.”
ProPublica :: ProPublica General Manager Richard Tofel joins the podcast this week to discuss the future of the news industry and where ProPublica's work fits in as a leading nonprofit outlet. Although Tofel emphasizes that ProPublica alone cannot save the news business, he does foresee nonprofits playing a crucial role in advancing journalism as print newspapers continue to decline in the face of current and future recessions.
Continue to read the podcast Minhee Cho, www.propublica.org
So today, we’re going to feature two pieces by people whose medium of choice some have recently forecast to come up short: print newspapers (facing threats from tablets) and homegrown local news sites (facing threats from national networks).
Here, Jason E. Klein — president and CEO of the Newspaper National Network — argues that tablets aren’t going to sweep away the print newspaper business any time soon. NNN describes itself as the “primary nationwide sales and marketing network for newspapers, both print and digital” and counts nearly all American newspaper companies as shareholders.
In 1979, an English new wave band called The Buggles hit No. 1 on the singles chart in 16 different countries with its debut single “Video Killed the Radio Star.” Two years later, it was the first music video to be shown on the new network MTV just after midnight on August 1, 1981. After almost thirty years have passed, The Buggles are largely forgotten, and radio is still around.
The new rage is tablets, and many believe tablets mean the death of print, and especially newspapers. Not in 30 years, but very soon. Forrester CEO George Colony recently told a gathering of media leaders that tablets were “the nexus of media” and would overtake e-readers, and ultimately the web. Wow!
Even the most hard-core newspaper junkies envision a world when tablets replace print, but they see that world far off. Maybe thirty years or so, maybe a hundred, give or take. So George and the newspaper junkies see a similar fate — it’s just a question of timing. I’m not sure when George thinks the last tree will go down for newspaper pulp, but I’d guess that he thinks the tipping point is soon, in the next two to four years. Maybe he’ll read this and weigh in.
Let me define what I mean by tipping point. There are still almost 1,400 daily print U.S. newspapers. While circulation and revenue has contracted, very few print newspapers have gone out of business. Since 1980, the number of print newspapers has declined at a fairly steady rate of about one percent per year — far fewer than the number of magazines to fold over that time. At the moment, newspaper companies are coping with the changes to their business. To me, the tipping point is when print newspapers are shutting at a rapid clip and the number of papers drops by half from today. When will the tipping point be?
The most predictable underlying trend is generational. Print readers are dying off, and younger adults read print at half the rate of older adults. But people are living longer, and 60 is the new 50. If the aging of the population is the dominant driver of the demise of print, you can model the numbers to show that print will be around for 30 years, or 50, or more, and George will be wrong.
But print junkies are changing their habits, even if their anti-aging creams, whole grains, and yoga are halting the ageing process. If the tipping point is at hand, as George seems to believe, it will be driven by the conversion of print junkies to tablets and not by Gen Y.
Tablets — which right now really mean just the iPad — are a delightful way to read newspapers. Ask most anyone who is not a luddite, has an interest in current events, and is a regular iPad user and you’ll get the same response. I am in that camp; I even hugged my iPad last week, once. However, there are still many print junkies who see the advantages of print newspapers, and relish their time with newspapers spread out in front of them, a cup of coffee at their side, and a smile on their face. I am in that camp too. From a usage standpoint, each fills a need, and the formats each have reason to coexist. I am a happy camper in both worlds. Even in a pre-tablet world, paid print newspaper circulation is over 40 million at the same time as 100 million people can and do read the same newspaper content on the web — for free.
Keep in mind that the forecast for tablet penetration is explosive, even more so than expectations for MTV in 1981. Tablet prices will come down, and people will have tablets in different rooms, in different colors and flavors. Corning makes the glass for tablets (now that’s a business!) and recently forecast 180 million tablet sales by 2014. With all those tablets around, it’s reasonable to expect that millions of print junkies will hug their iPads and use their newspaper apps. This means opportunities for newspaper publishers for new advertising and subscription revenues. Unfortunately for publishers, newspaper content engines depend on the economics of print since digital dimes don’t replace print dollars.
Will the print junkies jump ship as tablets multiply like rabbits? Is it a foregone conclusion that the tipping point of 700 closed newspapers follows right after Corning sells 180 million sheets of glass?
I don’t think it has to be. Just as radio has found its niche, print has its place as well. As Clay Shirky notes in his recent book, citing research by Clay Christensen and Gerald Berstell, you need to ask: What job are customers hiring your product to do? Print fills a different need; the experience of handling and reading a print newspaper provides an intellectual and leisure experience that offers an alternative to the hours spent on digital devices. With its broadsheet format, print is an ideal vehicle for both scanning and in-depth reading, and reading a newspaper from front-to-back is a complete experience a tablet environment finds hard to duplicate. Our research with dual print/digital newspaper consumers also suggests that consumers still trust print more than digital. While the tablet has invaded print’s turf, it’s not filling all the needs that print does.
How newspapers are marketed will make an enormous difference. It will control (a) the rate at which print junkies adopt the tablet format of newspapers and (b) the rate print at which junkies abandon print. The net of those rates will determine if the tipping point is imminent or a generation away.
Newspaper publishers seem to be headed to a paid model for tablet newspapers. Publishers realize that if tablet newspapers are free, their adoption rate by print junkies is constrained only by tablet sales, which will go through the roof. If tablet newspapers are free, and print newspapers cost $30-40 per month and up, why buy the cow when you can get the milk for free? As the music industry learned, it’s very difficult to compete with free. Nonetheless, some publishers are planning for free tablet newspapers, banking that advertisers’ current infatuation with tablet ads — and premium pricing — continues, and hoping that the print junkies don’t notice.
Most newspaper marketers are sweating the details. To bundle or not to bundle? Pursue a clever mix of free and paid? Extract a premium price at first from early adopters, then lower — or price low at first to encourage adoption, then raise? Vary price by geography, or usage, or time of day, or news cycle? Some publishers favor a bundled pricing plan: one price for access across all formats. Apple is not making the choices any easier as it looks to embed the App Store in all transactions.
So will tablets kill the newspaper star? Tablets are clearly invading the world of newspaper print junkies with long term consequences. But from a consumer standpoint, print and tablet formats can coexist for as long as generational factors allow. Each fills a different set of needs. Print clearly has its core of enthusiasts. It’s up to the marketers — at newspaper publishing companies, and at Apple and other intermediaries — to find the right value equation for each format.
It is official.
Newspapers have surpassed broadcast in numbers viewing online video. PLUS they are uploading more video.
In seeking out inspiration for its print redesign, Canada’s Globe and Mail didn’t look south of the border, as one might expect. Instead, the national daily focused its gaze overseas, pilfering design tips from newspapers in southern Europe, Latin America and Asia. Editor-in-chief John Stackhouse went so far as to call the U.S. market “fairly depressed in terms of newspaper innovation.” It doesn’t get more blunt than that.
Not to flog a dead horse, but newspaper design guru Mario Garcia reported a similar sentiment back in 2008, this time from an anonymous Indian editor expecting to ooh and ah while touring American newsrooms. The editor was less than impressed.
“I am disappointed, to be honest,” he told Garcia. “I went to the U.S. to learn, to get ideas on how to improve our newspapers here, but in every case, I was faced with newspapers that are hardly innovative. Why are American newspapers less willing to experiment, to take that leap into the future, to analyze their products and to adapt them to the realities of a multi-platform world?”
To be fair, that was two years ago and major dailies are, slowly but surely, becoming multi-platform vehicles. Still, the disappointment expressed by Stackhouse and the Indian editor speaks to what Garcia calls the general dearth of innovation in American newspaper design. For whatever reason — financial difficulties, tradition, sacred cows — American design innovation has stagnated. (For the record, design consultant Ron Reason is more optimistic than Garcia on the point.)
“When you look at newspaper design overseas — like Spain and Latin America — they’re much more adventurous, much more interesting, much more magazine-like,” Newsonomics author (and Lab contributor) Ken Doctor says. “It’s all about presentation; there’s a visual surprise.”
The surprise, however, has more to do with information architecture — how papers structure headlines and sections — rather than color and typography. “Pure design is just cosmetic,” Garcia told me last week. “It’s not going to solve the problem.”
Garcia, a sort of newspaper-design Carmen Sandiego, has consulted newsrooms in over 96 countries, including Hong Kong, where he’s currently working with the South China Morning Post, and Colombia, where he recently helped re-launch the Bogotá-based El Tiempo, which he chronicles, step-by-step, on his blog in refreshing and lengthy detail.
Garcia readily admits the continued (and often growing) interest in print overseas has given foreign newspapers some of its room to innovate. American editors are “plagued by a sense of malaise, that print is going to die,” Garcia says. Foreign newspapers, on the other hand, take a more carefree approach: As circulation increases, why not take some risks? The outcome might be a fresher, more navigable newspaper. “American newspapers think of death and dying; foreign newspapers think of birth and renewal,” Garcia says.
Over the course of our interview, Garcia laid out some design innovations popping up in the foreign market, citing the United Arab Emirates’ Gulf News, which devotes an entire, editor-run page to online citizen journalism, and New Delhi’s Hindustan Times, which reaches its millions of readers by publishing nearly 20 regional editions. It’s as if The New York Times ran an edition for each of New York’s five boroughs.
Foreign newsrooms, he argues, are well attuned to the newspaper’s role in the online/mobile/print/tablet nexus. Papers are usually considered supplementary, rather than top-dog, all-that-matters news sources. Here are three ways Garcia sees international newspapers innovating design:
In its redesign, El Tiempo eschews traditional sections in favor of a more guided approach. The paper splits into three sections: Debes Saber (What you must know); Debes Leer (What you must read); Debes Hacer (What you must do).
Debes Saber covers local, national, world, sports, and business news. Garcia describes it as the “kitchen,” where you hastily gather news over your morning coffee. Debes Leer, the “living room,” provides opinion and analysis; it’s the newspaper’s salon, a more leisurely, end-of-the-day read. Debes Hacer, the “outdoors,” covers health, fitness, food, and fashion.
Garcia writes in his blog that he was “thinking like a reader” when he sat down to help overhaul El Tiempo. Indeed, El Tiempo’s compartmentalization gets to a news consumer’s most basic needs. “It’s about how you get the content flowing better for people who have less time,” Garcia says.
“People desire to hear the opinions of others, even if it’s nonsense,” Garcia says. Analysis should be on the front page, not reserved for back-page editorial sections. English-language weekly The Moscow News, which will be relaunched as a daily — under Garcia’s guidance — in early 2011, will publish celebrity journalist commentary on A1. Garcia concedes American papers might find this unseemly — where’s the objectivity? where’s the integrity? — but a newspaper, he says, should be the most obvious place to find must-read writers.
“To find your place, you need to relinquish your time advantage,” Garcia says. Online provides the five w’s as they happen; print needs to find, and accept, its place as an ancillary source of information.
Foreign newspapers are less afraid to publish “headlines in the future tense, running second-day headlines on the first day,” Garcia says, pointing to Spain’s El Pais, which routinely pushes stories forward by focusing on what comes next, not what happened yesterday. More recently, The Independent’s Metro-style i, the UK’s first new national daily in quite some time, scatters snappy news briefs around ideas-driven articles, refusing to dwell on yesterday’s news .
American newsrooms may be handcuffed by traditions and finances. Garcia thinks they see him as an “interior decorator,” which may explain why he hasn’t consulted stateside in three years. But American editors, like Stackhouse, may be wise to pay attention to design changes in the foreign market: Before long, they may be the ones globetrotting to international newsrooms.
The Globe and Mail is the latest newspaper to double down on print — investing big money in a new, glossy, full-color format aimed at making the value of news-on-paper more clear. As Canadians kvell over the print redesign and read the national daily without the inky stain of newsprint on their fingers, it’s worth remembering that the San Francisco Chronicle made a similar move almost a year ago.
Last November, the Chronicle began printing its weekday front page, section fronts and select inside pages on high-gloss paper as a way to lure advertisers and strive for “magazine-quality production,” publisher Frank Vega and editor Ward Bushee said at the time. (The paper revamped its layout in February 2009.) It was an interesting move, considering that less than eight months earlier the paper, facing the threat of closure by its parent company Hearst, was shedding nearly $1 million a week. The switch was a result of a 15-year, $1 billion deal between Hearst and Canadian printing giant Transcontinental, which opened a $200 million plant near San Jose.
Looking at the numbers, it’s hard to see any improvement from the move. Circulation numbers are still in decline, and the Chronicle has scaled back glossy printing to its Sunday paper only. Which raises the questions: Is glossy paper worth it, both in terms of circulation and advertising? And if readers enjoy a smoother feel to their paper, does that warrant the extra cost?
“I don’t think so,” Chronicle president Mark Adkins told me. “You would have to be part of a broader strategy that would include more commercial printing and higher consumer pricing. It’s not a good tactical move for other papers.”
When it switched to glossy, the Chronicle circulated around 251,782 weekday papers, a 26-percent drop from the previous year. By March 2010, weekday circulation was down to 241,330. The economy certainly takes part of the blame, but the marketing power of a classier kind of newsprint doesn’t seem to be having much of an impact. It costs about 30 percent more to print on the new heat-set presses, which are rare (and expensive) in the newspaper industry.
“On the ad side, advertisers have not responded to it at all,” Adkins says, although the Chronicle wouldn’t reveal specific ad revenue numbers. When the Chronicle switched to glossy, it had “no advertisers lined up,” Adkins adds. The move was primarily aimed at consumers, to present a more luxurious product. But to some extent, that’s what the Chronicle expected when it restructured its business model around readership and circulation revenue, rather than advertising, almost two years ago. Even before the arrival of glossy stock, the paper had increased single-copy and subscription prices. Readers have responded favorably to the new paper, Adkins says, but they’re shouldering more of the production cost.
But back when the shift was made, Adkins also emphasized the appeal to advertisers, leading the San Francisco Business Times to write: “Without naming names, Adkins said that some advertisers who are now playing ball with the Chronicle wouldn’t before. They shunned newspaper ads because ‘they don’t deliver the brand image they require,’ he said — an obstacle the Chron’s new paper removes.”
“People are definitely and truly intrigued when they see copies of the Chronicle,” says Chuck Moozakis, editor of the print innovation monthly Newspapers & Technology. “The paper is trying to send a signal that you can have a newspaper that looks like this and not like that. But it’s a challenge now.”
The Chronicle won’t be phasing out high-gloss paper any time soon — not with that $1 billion Hearst deal — but Adkins isn’t ready to champion glossy as the savior of the print industry. That’s partly because in most cases printing on high-gloss paper requires outsourcing — a costly and alienating move — to independent commercial presses like Transcontinental. Heat-set presses simply aren’t ubiquitous enough in the United States to make higher-grade printing a viable option for most newspapers.
As for Canada’s Globe and Mail, editor John Stackhouse told readers that he wasn’t looking to the American newspaper market for inspiration when it comes to his “Proudly Print” approach: “Rather than study the U.S. market which is fairly depressed in terms of newpaper innovation, we looked to quality papers in southern Europe, Latin America and parts of Asia and found a great array of ideas that encouraged us to pursue a bold and confident look as well as a design that would continue to support great, in-depth journalism…One of the principal goals of the redesign is to raise the quality of The Globe at a time when we feel many other media are reducing their quality.”
The Globe and Mail, Canada’s most-circulated national daily newspaper, revealed its much-ballyhooed redesign on Friday. The paper is calling it “the most significant redesign” in its 166-year history, and it’s a billion-dollar bet on print at a time when the format’s fortunes would seem to be fading.
The renovations to “Canada’s National Newspaper” are part of what editor-in-chief John Stackhouse boldly calls his “Proudly Print” approach, with print as one component (with online and mobile) of a three-pronged news attack. The redesign tries to make the differences between print and web more clear. Full-color printing and a high-gloss wrap — the first of its kind in North America — aim to help lure advertisers. There’ll be more magazine-like stories, including photo-driven features plastered boldly on the front page. A slightly narrower size means shorter, punchier stories. And that’s not to mention the informational accoutrements, like sidebars and info graphs, and the litany of new inserts and content realignments. The redesign “once again demonstrates our commitment to the newspaper business,” according to publisher and CEO Phillip Crawley.
This is a big-time overhaul for the Globe, and not only because the paper sees it as a reassertion of dominance — i.e., shelling the struggling National Post, its conservative competitor since 1999, in the national newspaper war of attrition — over the Canadian media landscape.
But whenever a redesign happens, criticism follows. The prevailing question in this case is fairly obvious: Why invest in an 18-year, C$1.7-billion printing deal — with the same press as the San Francisco Chronicle — at a time when newsprint seems like yesterday’s medium?
“It’s going to be a millstone around the Globe’s neck,” says Mathew Ingram, a senior writer at GigaOm and former Globe web editor (and Lab contributor). “That’s 10 years you’re going to be paying for something that’s going to restrict the paper’s ability to do things that are focusing on the web. That’s not a thing a newspaper needs at a time like this.”
But the Globe sees its investment as a bet on print having a complementary role to online news going forward. “Our readers are digitally-minded people,” Stackhouse told me on launch day. “We publish a paper for people who are online a lot and still want a printed product at their doorstep every day to make sense of a world that flew by them while there were online.” Stackhouse, who took over as editor-in-chief in spring 2009 after a career as a business reporter, knows what he’s up against, and he’s making an argument about what a 21st-century newspaper needs to look like.
The Globe has always been the highbrow stalwart in Canadian journalism — and judging from its minimalist yet dramatic ad campaign, the paper still sees itself at the head of table. (For more proof, check out this nifty microsite.) Stackhouse uses the term “the daily pause,” when readers feel obligated to close their browsers and read insightful, show-stopping journalism. That’s what newspapers should strive to give their readers, he told me. He says there “needs to be more selection. We need to bring more insight to issues that matter most and focus on issues of consequence and try to have fun with it.”
The Globe, like most other newspapers, realizes there’s still money in print advertising. According to a profile of the Globe in last month’s Toronto Life magazine, the paper’s online component brings in roughly 15 percent of the revenue generated on the print side — not far off the totals for most large American newspapers.
Whether or not Crawley’s doubling-down strategy will work remains to be seen. Eighteen years is a long time. Critics wonder if placing such emphasis on print will limit the Globe’s ability to take the reigns of a slim Canadian online news market. The responses look a lot like this tweet, from Toronto-based technology consultant Rob Hyndman: “The Globe’s changes are about fear of loss, not about moving towards a positive goal.”
The Globe surely sees things differently. Its prime competitors — the National Post, the Toronto Star, and free dailies like Metro and 24 — are all print products. In fact, the paper’s weekday circulation jumped 5 percent last year and its print revenue increased 10 percent, while everyone else took a step backward. In Canada, the world of print is still the gladiator ring. The Canadian online news marketplace is underdeveloped: There’s nothing like Salon or The Daily Beast or The Huffington Post to draw eyeballs away from sites — GlobeandMail.com, CBC.ca, CTV.ca, GlobalTV.com — already affiliated with traditional news organizations. Speaking at the Economic Club of Canada on the eve of the launch, Stackhouse pinpointed four online competitors — The Huffington Post, Bloomberg, Yahoo Finance, and the BBC — none of which are Canadian. Without a sea of competitors galvanizing innovation and growth in Canadian online news, the Globe seems to think it makes sense to stick to the gravy — a move Ingram thinks is a mistake.
“Now is the time to seize the day, to become a leader,” he says, “because the Globe doesn’t have a huge amount of competition in print or online. It feels like it’s the only game in town — except maybe the CBC — and that lulls the paper into a false sense of security about its future.”
"Tell the chef, the beer is on me."
"Basically the price of a night on the town!"
"I'd love to help kickstart continued development! And 0 EUR/month really does make fiscal sense too... maybe I'll even get a shirt?" (there will be limited edition shirts for two and other goodies for each supporter as soon as we sold the 200)