Posts Tagged ‘news’

The Promise of Hyper-local News Sites

Advertising, Internet, Journalism, Newspapers | Posted by Larry Greenberg
Sep 09 2010

More than 20 years ago, right out of college, I worked as a stringer for a chain of news weeklies in Westchester County, New York.  I was assigned to report on the regularly scheduled sessions of town and village councils, as well as various government boards.  Some meetings lasted hours, often ending well after midnight.  On a few occasions, things dragged on thanks to inane bickering among a few board members with personal scores to settle.  On the whole, however, it seemed that our locally elected representatives were taking great care to make sure they got right the minutia of zoning, planning and other matters affecting their municipality’s fiscal stability and quality-of-life.

From that experience, I took away little in monetary compensation. I did gain the glory of my first byline, as well as a fat portfolio of clips.  I was also able to provide a few thousand of my neighbors with news of value to them, the non-controversial, but relevant information that would almost never find a place in the pages of the larger dailies.

Today the Internet continues to wreak havoc with the traditional newspaper model.  Publishers continue to reduce editorial staffs, as well as cut reporters’ salaries and benefits, due to disappearing ad revenues.   In order to make a living wage, some journalists have left the business for good.  As budgets are reduced, there are justifiable fears that content designed to entertain and incite will push out the type of dispassionate, in-depth journalism that serves the public good.

‘Creative destruction’ is used to describe an industry experiencing painful restructuring.  The term sounds cold-hearted.   But it’s hard to assess what this tumult will produce in 5 or 10 years time.  There is certainly one development that looks very positive – the emergence of hyper-local news sites.

Organizations such as Baristanet.com and Patch, which last year was bought by AOL, have established networks of hyper-local news sites designed to empower entrepreneurial and civic-minded journalists, photographers and videographers. Both organizations focus on underserved communities, providing extensive reporting about happenings at the neighborhood level.  Patch is particularly ambitious.  It now operates about 100 sites in 10 states, and AOL has plans to invest $50 million in order to launch about 500 more sites by year’s end.   Thanks to the Internet’s low publishing costs, hyper-local news sites can provide a volume of micro-level coverage not previously offered by dailies and weeklies. The question remains whether there are enough advertising and other revenue sources to make this model viable in the long run.

Hyper-local news sites may not be a replacement for traditional newsrooms, but they seem able to serve the public good in a way that the news dailies and weeklies of yore never could.

The Future of Paywalls for Online News

Journalism, Media | Posted by Larry Greenberg
Nov 09 2009

What’s a national newsprint magazine to do in an era of declining ad revenues?  Add many more pages and stories, and use more expensive paper stock, of course.

If that seems to contradict the prevailing industry wisdom about the future of news publishing, Bloomberg LP may know something others don’t.

MediaWeek reported recently that Bloomberg executives unveiled their plans for BusinessWeek at an internal staff meeting.  In addition to a bigger, glossier magazine, Bloomberg will make most of BusinessWeek’s general coverage available online for free.    Bloomberg is, however, considering a $100 annual online subscription fee for those wanting access to an extensive library of vertical-specific content.  Further, the Wall Street Journal wrote, Bloomberg is considering charging subscribers as much as $1,000 per year for access to certain content on Bloomberg.com.

This latest development suggests the publishing industry has cast another vote for the freemium model.

Although not a consumer publication in the mold of a general news weekly, BusinessWeek nevertheless appeals to a much broader readership than Bloomberg and other hard core business information services.  Will the industry see more mergers between B2B and consumer media outlets?  Will such arrangements involve B2B outlets, with their relatively lucrative corporate-paid subscriptions, supporting the ad-dependent consumer partner that, in turn, brings more readers and its print brand prestige to the table?

Getting consumers to pay for online content — either as subscribers or per article — is going to be a tougher sale.  Rupert Murdoch has indicated the News Corporation may delay plans to charge for the New York Post, the Australian and, in the UK, the Sun and the Times.  There seem simply to be too many competitors willing to give away similar online content.

The New York Times ran an article about how subscriptions remain the holy grail of revenue generation.    The piece noted that unlike a pay-per-use model, in which the consumer must make repeated value judgments, the traditional subscription model spares customers the bother of repeated decision-making and ensures a steady stream of revenues.   Most people, however, are already accustomed to free online content. Further, when a tough economy is pressuring individuals to reduce discretionary spending,  the task of getting consumers on  board appears even more daunting.

It seems online subscriptions would more likely succeed with business customers, because people are more willing to pay for the news they need, not want.