Newspapers: Invest in the future to survive
Rung feels that the problem begins with papers reaching for high profit margins and in turn laying off journalists. “The layoffs and cutbacks hurt the product, circulation dips lower, more articles appear that detail how the Internet is killing the newspaper industry, advertisers feel they must find alternatives, it becomes harder to sell advertising, revenue dips even lower,” Rung says. “It has become a vicious cycle with no end in sight.”
Newspapers, he says, have lost control of once-profitable classified ads to the Internet, and must look at new ways of gaining revenue. Here are Rung’s ideas:
- Invest in the product. “If our publications and Web sites have a lot of readership, advertisers will be willing to pay to reach our readers and viewers,” he says.
-Partner with big Internet companies to replace lost revenue.
-Look for new revenue services. According to Belden Research, 70 to 90 percent of local businesses do not use local papers to advertise. Look at these as untapped resources, and try to find out why they don’t advertise.
-Simplify packages for advertisers, perhaps devising custom packages based on individual advertisers’ needs.
-Don’t focus on controlling costs, because quality will in turn diminish. High profit margins are unrealistic right now. For now, try to raise revenue and circulation.
“We are at a crossroads,” he says. “This may be the death knell for newspapers, or it may simply be another challenge to overcome. The choice is ours.”
Source: Editor & Publisher
0 TrackBacks
Listed below are links to blogs that reference this entry: Newspapers: Invest in the future to survive.
TrackBack URL for this entry: http://www.editorsweblog.org/mt/mt-tb.cgi/5010
Wow. That's a whole bunch of whining in one post. Sounds like a group of people who are ready to be out of jobs soon...
OK, seriously, I am a former newsroomer now on the web side. I do sympathize that change is difficult. However, what is lacking from these stories is perspective, I think.
What about all the time that technology has saved journalists have saved over the years -- the research they can do electronically / on the web, the computers / laptops that they use, e-mail, the digital tape recorders where they can go right to a mark for a quote?
Those are just a few examples of hundreds over the last 10 years. I didn't hear journalists volunteering to give back part of their salaries when technology saved them the time it took to try to hook up couplers to a phone and send a story eight times until it got in (or eventually giving up and having to dictate it). Also, external interviews seem to be just great for many when it's their idea or when it furthers their careers....
Anyway, it's easy to say: Just get over it and move on. But I think the other missing piece is a roadmap. I have yet to see a media company stand up and say, "Good journalist of 15 years, this is how you will continue to exist in the new media world for 15 more years, this is how it will help the company and the community, and this is what the company is going to do to get you there (training...)."
A lot of this is just fear, and media companies aren't doing a good job of helping their employees feel comfortable.