Dispatches from the living amongst journalism's walking dead

Category: Online Revenue Models Page 2 of 3

Links roundup: Media law news, paid content and crazy ideas

Media Law News

Geanne Rosenberg, writing for the Nieman Lab, jumps into the Federal Shield conversation, asserting that student journalists should also get the protections of their professional counterparts. If you read this blog, you know I’m a big proponent for citizen journalists, bloggers and other “non-professionals” to get this protection, so kudos to her for recognizing the rights of students as well.

The Nieman Lab has an overview of a longer paper from Marion Fremont-Smith at Harvard law about the non-profit model for funding news. There are a lot of questions out there as to whether or not tax law might need to be changed to allow for a current for-profit news org to become non-profit. Fremont-Smith’s paper argues there should be no new guidelines or legislation needed to make this happen.

A very interesting case is going on right now where TV personality Glenn Beck is essentially trying to use domain name laws to out an online critic (and it doesn’t look like it’s going anywhere). While it goes against the reason behind the law, it certainly is a creative way to circumvent other media law to take down those who oppose your point of view.

Who’s charging for content – or not

For those keeping score….

Crazy ideas worth hearing

Robert Niles has a provocative idea – evaluate whether or not your site really needs to be in Google News, Crazy? Maybe, but check it out. There’s some potentially mind-blowing food for thought about why news sites and blogs may not want to be involved with Google News – and it isn’t about that silly  “freeloading” nonsense. He argues that search engine page views aren’t “quality” views and they might be leading to more spam.

Or, if you really hate Google and you’re Rupert Murdoch, you’ll insist the search engine is stealing your stuff against your will. Google finally had enough of the News Corp. owner, saying that if he really doesn’t want Google indexing his sites, he can be removed. Of course, this blogger thinks Murdoch knew that already.

Newspaper-sponsored blog networks! Catch the wave! While it certainly isn’t the first such blog network (ahem), the Guardian is hiring bloggers to cover local news.

And seriously, it’s been said before and said again, this time by Paid Content: When is someone going to buy Breaking News Online ? They’re the best there is at breaking news online – and yet, they are still independent.

And a word or two about the Twitter

Social Media Today has a great bit of coverage about Twitter lately i just had to share.

For one, there’s a much-needed reality check on Twitter’s trending topics from the folks at Social Media Today, more importantly, do those topics really reflect what people are actually talking about or what is really going on in the world?

They also take a refreshing look at Twitter lists from the “quality over quantity” perspective. In other words, it isn’t a popularity contest to get listed a lot, especially wen there are a lot of lists.

And get ready to take down your “English only” Twitter search filter. Soon enough, we’ll be able to translate tweets with no problem.

Your plan to save journalism is not at all helpful

I need a t-shirt that says: I asked the editor of the WaPo for a plan to save journalism and all I got was this book report on stuff I already knew.

I’ve been emailed “The Reconstruction of American Journalism” about a dozen times over the past few weeks. It’s a report from Len Downie and Michael Schudson that reviews, in painstaking detail, everything that has happened to journalism in the last 20 years and allegedly offers a plan to fix things.

I’ll save you the trouble of reading this tome (if you want) and tell you it doesn’t offer much at all. These were obviously the wrong guys to ask to change the business. The best idea they have? Asking private foundations and the government for help in funding news. (Newsflash: That isn’t new.)

What you should do, though is check out this rebuttal from the OJR and this one from Alan Mutter.

Of course, Slate also takes a contrarian view and argues that newspapers aren’t doing as badly as you think. They take an excellent analysis of the recent circulation numbers with a forehead smack thrown in for good measure. It isn’t just newspapers underperforming, it’s the economy, stupid.

Can we forget about page views?

Working on the online side of daily newspapers for a little more than five years now, I’ve come to measure all manner of worth in terms of the almighty page view. That elusive metric is used to determine what stories are the “best” by newspaper execs everywhere – and it leads people like me to have our value to the company measured in daily traffic numbers (coming soon to therapist’s couch near you).

Of course, we use this measurement because it’s the only way we really know how to measure ad cpm. This method is about the closest we have to the way we measured advertising value in newspapers for generations, so we just stuck with it. Each reload or link-click is measured an an impression – even if it didn’t make an impression at all.

We as an industry need to rid ourselves of this antiquated view of internet value. Page views are a metric that means very little when you get right down to it. It doesn’t measure anyone’s engagement on a page, or even how many sets of eyeballs have scanned the headline. All it tells you is that someone clicked a link to this page or refreshed it on their screen. They might not have even scanned the page.

Call me crazy, but I say we need to move away from the almighty page view just to get back to the core of our business. We know news doesn’t make an impact by merely being spotted, it needs to be read (at least a little). If we really care about engaging our audience, we should measure actual engagement (in time on site) or at least the true number of visitors (unique users).

Why pat ourselves on the back for receiving hundreds of thousands of page views from 200 people who have loaded a webcam that auto-refreshes every 10-15 seconds? Is that engagement? Are they even really watching it at all?

More importantly, does anyone even care?

Presentation: Business models for online news

Here’s a Powerpoint of my presentation the News 2.0 Forum on 9/9/09: Buy this news, please?

(Right-click and download it if you want – just don’t steal it, man)

Bibliography

Here’s a big list of links to where I got the information included in the presentation. When I have time, I’ll come back and make this look a lot prettier.

ProPublica’s story on Memorial Hospital in New Orleans

American Prospect’s column on government-subsized news

MinOnline’s top paid models worth watching

Steve Outing’s thoughts on micropayments

Chat featuring Steve Outing and others discussing business models

Jeff Jarvis talks about online memberships vs subscriptions

Online Journalism Blog looks at the ad-supported model

Pew report on the drop in classified ads

A look at the Pittsburgh Post-Gazette’s “freemium” site

American Journalism Review’s praise for pay walls

Neiman Lab looks at how paying for news is a new thing

Michael Kinsley’s column on how he believes asking readers to pay will not work

Seeking your input on business models

I’ve mentioned before that I am pulling together an event 9/9 at the Enquirer Media offices, the News 2.0 Forum, where people inside and outside our news organization will give five minute presentations on their perception of “the future of news”. We’ve got a great lineup ready from quite  few different perspectives (I’ll post it when it’s finalized).

Anyway, I’m preparing my own five minute presentation on possible future business models. For some reason, I was crazy enough to volunteer to set up this event, emcee it and do a presentation (all of this the night before I leave for a long vacation).

Because I know the few (but elite!) readers of this blog are pretty savvy folks, I figured I’d ask you for your input on my presentation.

Here’s the models I’m focusing on:

1. The continuation of an advertising supported model. Using examples like HuffPo, West Seattle Blog, Gawker to show that ad support can work – but you need to be pretty well streamlined to make that happen.

2. The grant-funded model (e.g Pro Publica, Common Language project).

3. The membership/subscription based model.

4. Micropayments of all kinds.

5. Offering other products/services to support news operations.

So what am I missing here? Remember, it’s five minutes, so let’s not get crazy.

Business models, social media and cool interweb tips

Best Things I’ve Read This Week

The always awesome Paid Content has an excellent analysis by Nic Brisbourne on his version of the future of news. At it’s core – it isn’t anything you haven’t heard before: Better quality writing, investigative journalism and in-depth analysis are a commodity we in the professional news world have going for us, even as news itself is an abundance.

He suggests we should leverage this to reinforce our place in the market – and do so with less cost and without charging for access to the news. He notes the examples of TechCrunch, Pitchfork and Huffington Post leveraging their trusted brands into things they can charge for – and doing so with a low enough overhead to make it with decent online ad rates. It isn’t earth-shattering – but it is at least the most plausible plan I’ve ever heard.

On the flip side – there’s the privately-funded investigative model of journalism that’s still wearing it’s fledgling feathers – but it’s really rocking out. If you haven’t seen it yet, check out  “Strained by Katrina, a Hospital Faced Deadly Choices” in the NY Times Magazine. The long-form investigative narrative is the sort of journalism we all wish we were doing – and it wasn’t done by the New York Times, for once. The work on this piece was funded by a grant through ProPublica – who worked with the NY Times to get it into print. Could agreements like this be a part of the future for in-depth reporting? If work like this is what comes out of it, I’m sold.

News on News

  • Ok, I get it, so maybe you want a more technology-oriented solution? How’s about an iPhone App that Automatically Picks the News You’ll Like ?An RSS reader that builds a custom news network for you based on your reading habits? That sounds like something we should be working with. Even if the reader doesn’t “pick us” to be in an individual’s mix, something like this makes news accessible to those who don’t have the time to find new news sources. Maybe that new source can be you?
  • Every online news source has either considered or tried free classifieds, with varying levels of success (mostly bad). Boing Boing asserts that Newspapers can’t make themselves as simple as craigslist – a well-deserved slam on the classified pages of most newspaper sites. There’s a reason why Craigslist works and we may have missed the point in trying (pathetically) to duplicate their effort.
  • Did you know The Guardian is the most bookmarked newspaper on delicious? I don’t really know what that says about them, but they must have a lot of news their readers find to be useful – or else they wouldn’t be bookmarking it. Check it out.
  • First it was the bloggers, now it’s the tweeters getting into the press boxes. One twittering fan has gotten courtside press credentials at St. John’s – the first of his kind (and probably not the last).

Social Media News

  • Breaking News: Social Media Is for Narcissists! To some people (i.e. my parents), it may seem like a no-brainer that my generation (Y, Why?) is full of narcissists in regards to social media. What is interesting is the surveyed groups of (much younger) Gen-Yers understanding that that might not be such a bad thing to really sell yourself in such a competitive world – not only in business, but in life.
  • In related news, all that news about teens not being into Twitter may not be right. It isn’t so much that the proportion of teens on Twitter are low, but that the majority of social media users are older simply because the social web is growing up. Twitter – unlike many of the others – actually started with an older group and they’ve had a longer time to adopt it.
  • Pat Thornton writes on Poynter about different newspapers’ approach to Twitter use – and how there doesn’t seem to be one right answer for getting a good ROI out of it. Automated accounts sometimes work, personal accounts sometimes don’t – so perhaps variety is the answer? (At Cincinnati.Com, we have both)
  • As you know, not everyone is sold on social media’s value – not even all of those marketers and brands out there. As much as some old-school companies might be fighting, the stats say Social Media Resistance Is Fading Fast and adoption rates are soaring.

Cool Tips!!

  • If you’re the sort of journo is is doing (or desperately trying) multimedia and online work in several software suites, you might find this collection of software cheat sheets from 10,000 Words helpful. It outlines helpful hints for all sorts of video, audio and web programs.
  • And while most of these little hints apply to marketing and advertising types,it might be good to know these Eight Twitter Habits That May Get You Unfollowed or Semi-Followed so you don’t look like a tool on the Internets.

Roundup: Social media innovations and business models

Check it -it’s a rundown of news and notes on social media innovations, more pay model plans and why you shouldn’t look silly on the internets.

Take Note

  • According to the internets, More Employers Use Facebook To Vet New Hires Than LinkedIn, hence why I keep stressing why you should A. Be on these networks and B. Be doing it well enough to not look dumb.
  • And not that it should be news to anyone here, but Twitter is The New Way Mainstream Media Breaks News. I can’t preach it enough around my paper – let’s break news on Twitter first, then worry about the links. We do this at my paper every day – and sometimes I won’t even bother tweeting a headline if we aren’t first in our market or it isn’t original. The traffic from Twitter isn’t much anyway – so it’s better to be first than first with a link. Of course, we still want to be factual, too (that one’s for you, Bruce).

Keeping News Alive

  • The Online Journalism blog asks if the (UK) Times’ Culture subscriptions is a potential model for charging for online newspapers. Why? It’s more than just a newspaper subscription – it’s a membership with incentives like ticket deals, exclusive access and more. It’s just one way to make a pay wall worth it if this kind of model would move to the web.
  • Speaking of paying for news, a CUNY project sought to find New business models for journalism to answer, “What happens to journalism in a top-25 metro market if a newspaper fades away. Can journalism be sustained? And how?” There are four total – some of which have been panned and a couple of others that have real legs (though none are really earth-shattering).

Innovations in Social Media

  • Mashable reports that our friends at TweetMeme are working on Retweetable Comments. Huh? You’ve seen on several blogs and articles where you can tweet article from a button, but this would allow people to tweet individual comments on those blogs. A very cool way to get comments to go viral (and encourage commenting in the first place).
  • Speaking of Twitter, Patrick Thornton has been hard at work at Bringing engagement to an old, one-way medium. His marketing plan for a new novel is exactly what social media marketing should be – fun, creative and original. While his exact approach doesn’t exactly work for a news entities’ needs, using social media as a customer service platform is a must. Why else even be on Twitter if you can’t answer questions?
  • If you haven’t checked it out yet, the Huffington Post has embraced the  age of “My” news with a new Facebook Connect hookup that allows interaction between Facebook profiles and user activity on their sites.  The sync is  a no-brainer for an operation of their kind – and a lot to live up to. Something like this takes a lot of work, but it would be great to see more news orgs (and yes, smaller ones) jumping into a forward-thinking arrangement like this.

“Paid content” myth sprouts more pay wall ideas

I don’t know if I would say the talk amongst journalist and journalism theorists regarding paid content is at a “fever pitch” (which was almost my headline), but it certainly seems to be on everyone’s mind of late.

A lot of that has to do with one of the big dogs of mainstream media, Rupert Murdoch, deciding to take the plunge and charge for content online. Whether it will work or not is anyone’s guess – but I’ll bet it will for the likes of News Corp.’s wsj.com. Why them and not the other News Corp. properties? Simple – they offer a utility (in-depth financial content) that isn’t available anywhere else. It also helps that the WSJ has a pretty affluent reader base with expense accounts for this sort of thing. Sorry, I don’t see the same love for the content of the New York Post.

Millionaire/Online Gadfly Mark Cuban agrees, suggesting Murdoch offer a combined online subscription plan for all of the News Corp. properties. It’d be bold – and it would package in access to news content to those looking for sports, political or entertainment content online.Of course, it’s also completely mental.

Aside from the highly specialized content from the WSJ (which would still need speed and delivery improvements to be worth a subscription), who would pay for this entertainment or sports content? Fox Sports is kind of a joke compared to ESPN – and if this study is any indication, online consumers of the future don’t want to pay for access to entertainment media – they want to own it.

This University of Hertfordshire (UK) study of 14 to 24-year-olds found:

  • 89 percent still want to “own” music in the form of MP3s to share and copy how they wish.
  • 85 percent of those using illegal peer-to-peer downloaders would pay for an unlimited MP3 download service
  • 78 percent do not want to pay for a streaming music service

Sure, that’s about music – but it very well could be indicative of an overall attitude about online content one is paying for.  Put in “news content” for “music” and “aggregators” for “peer-to-peer” – and it makes sense. Is it ridiculous to theorize that readers may want to be able to fully use (copy, paste, share, re-publish) content they pay for – or will they be OK just reading it under a subscription plan? It’s something to think about.

Cuban also suggests Murdoch’s sites block access to their content from aggregators with this pay wall. What he doesn’t seem to take into account is that A. It would also be blocking interested readers from possibly even knowing their content exists and B. Who’s to stop a more aggressive aggregator from subscribing to News Corp.  and simply copying and pasting stories in full from those sites? He says the aggregators would then have to rely on the AP and Reuters for all their news – I say it just challenges them to be bolder in how they steal content. (You say tomato, yada yada…)

And it isn’t like Murdoch has the best relationship with news aggregators anyway – he’s threatening to sue Google and Yahoo for quoting and linking to his News Corp. sites’ content. While that’s all based in the somewhat off-kilter media laws of the UK and not the U.S. that regard linking a bit differently, it still shows a lack of interest in actually working with those who can bring in readers.

If only the likes of Murdoch, Cuban, Marburger, Schultz, the AP and everyone else arguing for paid content would just read this simple post from another KDMC fellow, Chris O’Brien.

He breaks down discusses the prevailing myth that readers once paid for news content. It’s something only journalists and idealists really believe. In actuality, readers’ subscriptions were paying for a product that provided a lot more than just news content – it gave them access to ads, comics and a sense of community we have yet to really tap into online.  He, like me, suggests we all move past that idea of “paid content” to really get to the business of saving news with new innovations and simply doing a better job at giving readers something useful.

Editors Note: Big thanks to Steve Buttry for pointing out my mistake. For some unfathomable reason, I kept insisting it was Media News and not News Corp. that is owned by Rupert Murdoch. Sigh. Don’t write blog posts in the early morning hours, kids.

New AP plan: Taking web traffic from members?

The Nieman Lab blog obtained a copy of the AP’s latest plan to preserve it’s aging business model. The name  – “Protect, Point, Pay — An Associated Press Plan for Reclaiming News Content Online” – sort of says it all (for better or for worse).

The plan is to withhold some of it’s content from it’s wire and other means of distribution, instead forcing member sites to link to the content on an AP site. So…the AP is seeking to compete with its member sites for online traffic? Wha?

The AP plan differentiates between “utility” content and “unique” content when deciding what to keep on this centralized site and what to distribute for member use. The AP’s lawyer seemed to define “utility” content as the AP’s usual offerings of traditional news feeds. The “unique” content, I’d think, would be their supplemental interactive graphics, galleries and non-daily news features from AP staff.

While I can appreciate that the AP is at least thinking 21st century on this latest scheme, it begs the question: What exactly are AP members paying for, anyway? Member-owners subscribe to the AP precisely because we want to use this content on our sites specifically to get page views and sell our own ads around it. If AP members have to send that traffic off site – why even pay the huge AP membership fees in the first place? We can give traffic away for free.

In addition to that obvious question, the plan prompts many more alarm bells.

Steve Buttry says the AP seems to be off on the wrong foot from the get-go with this name about the name:

[It] uses two words that reflect the dangerous thinking that plagues way too much of our industry today: The focus on protection of a declining model rather than development of a new, prosperous model and the stubborn denial of all evidence that paid content is not the path to a prosperous model.

Secondly, on this business of unique vs utility content, Buttry and others ask how this distinction will be made and if member-contributed content will be “protected” too. After all, so much of the AP’s state and local feeds seem to be from member papers’ reporting, not that of local AP staffers.

Thirdly – a Nieman commenter asks how will all of this work in terms of search engine optimization? The AP seems to be hoping these outside links will provide all the SEO they’ll need – but these stories aren’t on all the various member sites themselves – how much will the AP content fall in SEO rankings?

I’m sure there’ll be a lot more info out about this in the coming days and weeks and maybe I’ll feel better about it. Right now, despite what their people may say, the AP seems to be looking for a fight with it couldn’t possibly win.

The myth of the “free ride”

David Marburger took his show on the road this week with a much-emailed guest editorial in the LA Times titled “The free ride that’s killing the news business” (again with the hostile wording). Of course, I got this emailed to be from no less than 20 fellow journalists, all of whom seemed to not understand the online news business at large. He’s preaching to the choir of the same “stay the course” news people who got us here in the first place – and they love it.

Marburger tells and retells the story of the Little Red Hen in all of his appearances. Have you read it yet?

Remember the Little Red Hen? She’s the one in the folk tale who asks the other barnyard animals if they will help her cut the wheat, grind it into flour and bake the bread. They refuse. But when the warm bread emerges from the oven, they are eager to help the hen eat it.

Now let’s suppose the story continues, with the Little Red Hen opening a roadside stand to sell her bread. Instead of merely eating it themselves, the cow, the pig and the dog each take some of her loaves and open competing roadside stands. Vying for sales, they undercut her price and each others’. Because the Little Red Hen bore all the costs to produce the bread, and the other animals bore none, she can’t afford to match their prices, and they drive her out of business.

Newspaper sites are supposed to be the hen. He likens aggregator sites like Newser.com to the other animals.

To anyone that isn’t in the news business, this sounds pretty acceptable. After all, isn’t the point of competition in a free market supposed to mean that you try to undersell your competition by having a lower overhead? It’s called good business. Too bad for the Little Red Hen – maybe she should become a manufacturer or wholesaler instead of a shop owner.

To whose that aren’t familiar, Newser.com is a worldwide wholesaler of other people’s news, in a sense. They summarize stories from many news sources in a paragraph or so and link back to the original story. As you can see here, they state on each summary where the source is and link to it. Sure, it could stand to be more prominent, but it’s better than what TV does every day. (It should also be pointed out that site looks dreadful and isn’t very user-friendly)

Marburger claims that sites like Newser are “free riding” on newspapers and it should be illegal. From the poll on the editorial, which asks “Should websites be allowed to use excerpts from daily news sites?” the populace doesn’t agree (it’s 68% against the Marburger plan, 32% for it as I write).

The basis for the Marburger argument is that sites like Newser are driving down online advertising rates because they aggregate content and surround it with low-priced ads. He calls them “competitors”. He says they are “direct substitutes for newspapers”.

First of all, if your story can be summarized in a paragraph and that’s honestly enough for a casual reader to know about it – it probably isn’t worth fighting about. Secondly, Newser isn’t a competitor with the newspaper websites it links to. A quick look at Alexa shows how their traffic compares to the likes of the two Times, Tribune and Guardian:

Newser ranks way, way below the big news sites in terms of the golden stat of pageviews.

Newser ranks way, way below the big news sites in terms of page views.

While I agree that advertising is the issue – it isn’t the fault of aggregators. It’s that the entire business model for online advertising is broken. As Bill Grueskin said last month in an excellent paidContent analysis, “Aggregators are more a distraction from the real crisis than the cause of it” because even if they are siphoning off users (of course, they also refer users), it isn’t really hurting the bottom line.

Online ad rates have been artificially low for years. We’re partly to blame – after all, most newspaper have been online since the 90s and we never charged for online ads what they are worth. Furthermore, the online audience doesn’t like and doesn’t see value in online ads. They block them, they don’t click on them, they HATE them.

CPMs are so low that thousands upon thousands of views to our site today won’t even buy lunch for our newsroom, let alone sustain the industry. Grueskin says what a lot of us in online news have been whispering for years – why are we measuring our worth in page views anyway? We should be using metrics like page views per user or time on site rather than by the  number of people visiting the site, “many of whom may not assign any value to the journalists who generated the content”.

In other words, better understand the audience, seek out what it wants, determine what we can provide – possibly in terms of a premium service – and find a way to monetize that outside of online ads. That’s something an operation like Newser could never do and it actually provides a sustainable plan for future growth. Crazy, I know.

So why do we have to keep giving face time to David Marburger and his ilk of “stay the course” followers who want to legislate their way out of an adaptation of the business model. Let’s get to the task at hand…

Stealing is wrong, so is a quest to own facts

Let’s get this out of the way: I don’t like it when anyone steals anyone else’s content. And by “stealing” I mean wholesale copying and pasting all of an original work or using any part of someone’s work without credit and a link back to the original content. Period.

Not that I’ve ever said otherwise. With all of my railing against the Marburger plan and the AP, a few detractors have jumped to the conclusion that I don’t support any kind of copyright protection – which is just absurd.

What I have been railing against for weeks now isn’t an opposition to tough copyright law, it’s big news media trying to legally change the online marketplace to benefit themselves (and not content providers as a whole).

Facts should not be owned, but one person’s word-for-word summation of those facts should be. If a reporter took the time to investigate and write an enterprise story – other content entities should give him or her credit and link to their piece prominently when they choose to write from the original work.

Could copyright law use an update to account for the digital sphere? Absolutely – but not at the expense of the free exchange of ideas and analysis online. We in the news business are supposed to be all about that, remember?

Recommended reading: Content, traffic and pay walls

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