On business models for news in the 21st century
I originally wrote the below as a response to Scott Karp’s idea of saving newspaper’s by “donating classified advertising.” and I wanted to post a copy here as a placeholder for a longer, future essay on the topic.
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Very interesting brain-storming going on here, but I feel like your Hybrid and Napster examples both overlook a key element: network effects in the marketplace.
As a classifieds customer, the single factor that matters most to me (more, even, then where the money goes) is how many qualified people will see my ad in a given marketplace. Free is a nice side-benefit of Craigslist, but it’s not the reason people post ads there. We seem to be assuming that a newspaper classifed ad gets me the same amount of exposure for my ad as a Craigslist post (or an Ebay listing for that matter - this is not just a Craigslist issue,) and I’m not sure that’s true. If it is, they’re doing a very bad job of publicizing that fact.
Old school newspapers are at their core, aggregators - - and as we know, the internet is, among other things, a disaggregation machine. Rather than try and figure out ways to put that genie back in the bottle, I think most newspapers will need to consider some combination of the following:
- Cost-cutting (this one will undoubtedly be the least popular, but how much overhead do you really need to run a cutting edge _news_reporting_ operation in 2007? I don’t know the answer, but I suspect it’s less than many newspapers are currently still spending on rent and utilities alone.)
- Patronage, and especially micro-patronage, opportunities. (I would happily donate to my local news organization - although I should also note that I would expect *real* reporting in exchange for my patronage - not the ever expanding Style section that currently constitutes much of the “newsâ€-paper.)
- Ancillary revenue opportunities. These will vary but could include advertising and information services. There are still cases where the local paper is probably the best advertising conduit. There are also a lot of opportunities coming up in mobile (which is inherently local) that a smart local news organization could jump on.
- Participatation in & enablement of “The Conversation.†Dave Winer’s suggestion of offering blogs to anybody who is featured in a story and wants to comment or otherwise continue the discussion is a good one. Hell - I’d help set it up for free, and I’m sure lots of folks with CMS/blog/publishing platform experience would offer to do the same.
I’m taking the time to write all of this up out of affection - I like the newspaper, and I like professional journalists. That’s why I _really_ want to see them step up to the challenge - - we’ll all be poorer for it if they don’t.
April 9th, 2007 at 6:51 am
Zell’s Blustering With Google Hides The Real Problem With NewspapersThe Reluctant Blogger: Since Mr. Zell will NEVER read this, I will be very blunt…
April 9th, 2007 at 9:29 am
drives traffic to news sites — I can’t read the stories on Google News.Pramit Singh, MediaVidea Sam Zell might have made his billions in the real estate business, he knows exactly what the RIAA people knew about the net, nothing.Paul Bryant, the Reluctant Bloggerat face value, I think it’s reasonable to say that this is not a man who spends any significant time on the internet.Dave Winer, Scripting News: It could be that Zell is brilliant, and is saying something that simplifies the truth to make a bigger
April 9th, 2007 at 9:29 am
drives traffic to news sites — I can’t read the stories on Google News.Pramit Singh, MediaVidea Sam Zell might have made his billions in the real estate business, he knows exactly what the RIAA people knew about the net, nothing.Paul Bryant, the Reluctant Bloggerat face value, I think it’s reasonable to say that this is not a man who spends any significant time on the internet.Dave Winer, Scripting News: It could be that Zell is brilliant, and is saying something that simplifies the truth to make a bigger
April 22nd, 2007 at 2:51 am
[...] Before I get into the rant which prompted this post, let me just say at the outset that the question of how the news business will survive, and hopefully thrive, in the 21st century is an important one. Jason Calacanis offers a rebuttal to Mr. Zell’s quote that also includes some valuable recommendations, Dave Winer’s write-up from several weeks back is also excellent, and a few miscellaneous thoughts of my own are here. [...]