US: MediaShift offers alternative business models for newspapers

Posted by Emma Heald on December 19, 2008 at 5:58 PM

Executive Editor of PBS's MediaShift Mark Glaser offered a "Guide to Alternative Models for Newspapers" in response to all the problems currently "plaguing" the business of daily newspapers in America. He offers a selection of solutions: some which are already being used, some brand new.

First come blog networks, which aggregate blogs written by staffers, freelancers and readers. Glaser cites LATimes.com as a site which has used blogs to help it drive more traffic, which could of course lead to more advertising revenue.

Next is classified networks; Glaser explains that free online services such as Craigslist have usurped much of newspapers' classified ad businesses. In order to entice people back, he thinks they will need to "super-charge listings and add extras galore."

Crowdfunding involves the audience making direct payments to support a journalist writing a story or covering a beat. Bloggers have already succeeded going down this route, and it is being experimented with for journalists. Glaser thinks it could help some freelancers but "might not translate well to a newspaper culture."

Then comes customized papers: newspapers offering customized print pages, including advertisements, or hyper-local editions of the paper. As many people still prefer to read news in print, this has potential, but home printing could be expensive for readers.

Hyper-local advertisements in hyper-local editions online which allow user-generated content are another possibility. The most successful efforts have been when the best online content is printed in special editions with print advertisements.

Another localized option is trying to become a local portal: a guide including entertainment listings, reviews and directories of local businesses, which can then make money through advertisements from those listed. Glaser points out that in order to be successful, the online portals have to be comprehensive and to become "the trusted source of listings."

Multimedia advertisements have potential: video reports can be preceded by short ad spots. NYTimes.com, Washingtonpost.com and WSJ.com are leading the way in this.

Another online possibility is niche sites, as these can be much more specific online than in print. Glaser explains that they can bring a new audience to newspapers.

Non-profit online news sites are springing up, using a combination of foundation grants, reader donations and online sponsorships. This model is more relevant to start-ups, but has been very effective.

Lastly, charging for online content: one of the most obvious ideas but one of the hardest to implement successfully. People are usually unwilling to pay for "very specialized information that they can't get anywhere else."

Glaser stresses that none of these ideas alone can be "the savior for the newspaper business," but a mix of many different revenue streams are necessary for success, even for survival.

Source: PBS's MediaShift