It’s becoming increasingly obvious that something has to give if newspapers are going to stick around.
The most obvious problem is the availability of free content that doesn’t attract enough advertising to provide newspapers and magazines with enough of a financial return. As a result, a few things have to happen:
1. Business models need to be overhauled so newspapers are leaner and more cost-efficient. This will see smaller newsrooms staffed with tech-savvy reporters capable of writing, blogging, podcasting and video. It will also see fewer paper-based newspapers in an effort to chop away at a huge expense.
2. The amount of free content will have to shrink. If there isn’t going to be enough advertising to completely support the online operations of newspapers, then all free, all the time is a recipe for financial suicide.
Instead, newspapers will have to take another hack at a free/premium offering. Sure, it’s been tried before but the flaw has been that if someone charged for content, someone else would offer the same kind of content at no cost. Sooner or later, there’s going to be enough newspaper owners who will collectively realize this is a no-win situation.
My bet is Rupert Murdoch, who newspaper empire includes the New York Post, Wall St. Journal and The Times, will lead the charge to a free/premium model, and, along the way, convince other major newspapers such as the New York Times, Washington Post and Financial Post to climb on the bandwagon.
If you’re looking for a sign of things to come, check out the Financial Times registration form below. There are free unregistered and registered versions available that provide access to content, as well as premium subscriptions providing archived stories, corporate financials, access to premium content, and a mobile news reader.
I expect newspapers to become even more creative in terms of free/premium offerings that will make previous efforts pale in comparison. The newspaper industry is a financial disaster so it either needs to explore new and different ways to generate revenue, or its alarming demise will continue to unfold.
Without going on too much of a tangent, one idea newspaper should consider is embracing mobile devices as the distribution vehicle to replace paper. Whether it’s the Kindle, Mike Arrington’s new CrunchPad or electronic-paper, newspapers should be aggressively looking to strike deals with players who can provide consumers with a more user-friendly and cost-effective way to consume content.
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Free Content Starting to Erode at the Edges
It’s becoming increasingly obvious that something has to give if newspapers are going to stick around.
The most obvious problem is the availability of free content that doesn’t attract enough advertising to provide newspapers and magazines with enough of a financial return. As a result, a few things have to happen:
1. Business models need to be overhauled so newspapers are leaner and more cost-efficient. This will see smaller newsrooms staffed with tech-savvy reporters capable of writing, blogging, podcasting and video. It will also see fewer paper-based newspapers in an effort to chop away at a huge expense.
2. The amount of free content will have to shrink. If there isn’t going to be enough advertising to completely support the online operations of newspapers, then all free, all the time is a recipe for financial suicide.
Instead, newspapers will have to take another hack at a free/premium offering. Sure, it’s been tried before but the flaw has been that if someone charged for content, someone else would offer the same kind of content at no cost. Sooner or later, there’s going to be enough newspaper owners who will collectively realize this is a no-win situation.
My bet is Rupert Murdoch, who newspaper empire includes the New York Post, Wall St. Journal and The Times, will lead the charge to a free/premium model, and, along the way, convince other major newspapers such as the New York Times, Washington Post and Financial Post to climb on the bandwagon.
If you’re looking for a sign of things to come, check out the Financial Times registration form below. There are free unregistered and registered versions available that provide access to content, as well as premium subscriptions providing archived stories, corporate financials, access to premium content, and a mobile news reader.
I expect newspapers to become even more creative in terms of free/premium offerings that will make previous efforts pale in comparison. The newspaper industry is a financial disaster so it either needs to explore new and different ways to generate revenue, or its alarming demise will continue to unfold.
Without going on too much of a tangent, one idea newspaper should consider is embracing mobile devices as the distribution vehicle to replace paper. Whether it’s the Kindle, Mike Arrington’s new CrunchPad or electronic-paper, newspapers should be aggressively looking to strike deals with players who can provide consumers with a more user-friendly and cost-effective way to consume content.
For more on the free vs. paid newspaper battle, check out the New York Times’ Opinionator, which reported on discussions at the recent Aspen Ideas Festival. There’s also been a healthy and active discussion about Chris Anderson’s new book “Free” – here’s a blog post by Fred Wilson and a review from the Guardian.
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