Schmidt: A New, Digital Business Model

On December 3, 2009, In Newspapers and Media, By Blake

Google CEO Eric Schmidt responded to Rupert Murdoch today with an op-ed in the Wall Street Journal. In the piece Mr. Schmidt imagines the world in 2015 and forecasts how readers will be consuming news.

He writes,

It’s the year 2015. The compact device in my hand delivers me the world, one news story at a time. I flip through my favorite papers and magazines, the images as crisp as in print, without a maddening wait for each page to load.

Even better, the device knows who I am, what I like, and what I have already read. So while I get all the news and comment, I also see stories tailored for my interests. I zip through a health story in The Wall Street Journal and a piece about Iraq from Egypt’s Al Gomhuria, translated automatically from Arabic to English. I tap my finger on the screen, telling the computer brains underneath it got this suggestion right.

Some of these stories are part of a monthly subscription package. Some, where the free preview sucks me in, cost a few pennies billed to my account. Others are available at no charge, paid for by advertising. But these ads are not static pitches for products I’d never use. Like the news I am reading, the ads are tailored just for me. Advertisers are willing to shell out a lot of money for this targeting.

Tagged with: • • • • •
 
0 Comments
Leave A Response

Newspapers: There Isn’t One Answer

On February 23, 2009, In Newspapers and Media, By Blake

Jacob Weisberg of Slate.com weighs in on the growing debate over the future of newspapers. In his piece he argues that newspapers have always had multiple revenue models and, as a result, it’s quite difficult to suggest a single answer that will save them moving forward.

For example, Rupert Murdoch has consistently lost money at the Times of London. Similarly, the Atlantic, the New Republic, The Nation and The Weekly Standard lose money, but the wealthy benefactors don’t seem to mind. High quality content trumps all in these cases.

But as we know that won’t be the case everywhere, although Mr. Murdoch may be content letting The Wall Street Journal lose money, too.

Mr. Weisberg does a nice job of laying out the principles associated with the various models. But, as you might expect, we’re left with more questions than answers about where to go from here.

Tagged with: • • • • • •
 
0 Comments
Leave A Response

How to handle online content

On July 2, 2008, In Arkansas, Corporate, Culture, Miscellaneous, Public Affairs, By Blake

Steve Harrelson jumps into a conversation that I’ve been having here on the Think Tank and on Lance Turner’s blog .  He writes in response to an op-ed written by Northwest Arkansas Times executive editor Greg Harton regarding newspapers, bloggers and online content.

Harton writes,

“The trick for newspapers everywhere has been finding a business model that helps pay the freight for those newsgathering operations. If local newspapers had to support their newsrooms only on the revenue from online sources, newsrooms would shrink dramatically. Print still pays the bills.

“As time marches on, newspaper companies will continue to focus on what they’ve done well for years and years: Seek to be credible, trustworthy sources of information that people need to live and work in their communities and to govern themselves. To whatever extent they can translate that to new methods of delivery, they’ll have much to offer for readers.”

He’s certainly right about that.

He’s also correct when he opines, “newspapers are good for the American people. Newsgathering fulfills a critical role in this republic by delivering information citizens need to be active parts of their community, state, nation and world.”

But we have to remain mindful that so many people, especially people under 30, are getting all of their information online.  I recognize that certain entities – like the Arkansas Democrat Gazette – are trying to protect their online content (although not in Northwest Arkansas) by allowing only subscribers to access it.

That model hasn’t worked (see the New York Times failed attempt to get people to pay for Opinion content), and according to Rupert Murdoch , the Wall Street Journal’s online content will soon be free to everyone.  That said, Dem-Gaz publisher Walter Hussman says the paper is making money.  He earned publisher of the year awards from Editor & Publisher , so something is working.

But will it last?  I doubt it, especially if a competitor steps into the online space and meets the need of the online news consumer.

Also, traditional (and often money-losing) publications like The New Yorker now host a slew of blogs each of which is quite interesting and gives readers like me a reason to connect to the magazine’s website on a daily basis.

Here are some thoughts from a speech by Kevin Sack of the New York Times at the Clinton School of Public Service on this very topic.

Tagged with: • • • • • • • • • •
 
1 Comments
Leave A Response
Go To Top »