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One of the latest products to appear on the market for newspaper publishers looking to improve their revenue is Circulate, from new start-up CircLabs. The Editors Weblog spoke to co-founder and executive vice president Martin Langeveld, former newspaper editor and executive who now also writes for Nieman Journalism Lab, about the project.

The CircLabs team decided to look for a user-centric solution to monetise online content through improving the user news experience, as opposed to what Langeveld sees as publisher-centric solutions that focus on how to charge users for content. Charging users for content could indeed be incorporated into Circulate, but he does not see it as the main source of revenue. Rather, what Circulate hopes to do is essentially make it easier for people to find the news they are interested in, hence encouraging them to read more and therefore increasing traffic to and engagement time on newspaper websites, offering greater advertising opportunities.

The Circulate concept evolved out of research carried out by Bill Densmore at the Reynolds Institute of the University of Missouri into a project he called the Information Valet. This, Langeveld explained, is a more "comprehensive and very complex system" and Circulate hopes to be a starting point for something similar. The founding CircLabs team consists of four: Langeveld and Densmore plus Jeff Vander Clute and Joe Bergeron. The University of Missouri offered initial funding and Langeveld is confident that the company will soon announce its first round of seed funding, which would include investment from the industry and private investors as well as from the university.

What Circulate actually is

As the consumer will see it, Circulate will consist of a narrow strip that will appear within the user's browser window that will be branded and recommend journalistic content throughout the user's time online. The bar will be along the top of the window and generally narrow enough to include one line of type, though would have the ability to expand when necessary. A small programme must be downloaded to install the strip, but a user can log in to their account on any computer that has the programme. There will also be a destination URL that users can access on computers on which they cannot download the software, and the team plans to develop applications for smartphones, and offer email alerts.

When the user installs it, it will ask them some questions about them and about their interests and preferences. The user is not obliged to enter any information, but the more that they do, "the better Circulate can bring content to you," Langeveld explained. He added that his team understands how important privacy is to consumers and stressed that Circulate will be very clear with regards to the amount of information it stores about its users and will give them an easy option to access or delete this.  "It won't just be buried in one of those user agreements that everybody just clicks through," Langeveld clarified.

The programme will also track your movements online and make recommendations for content based on these and the information you provide. Article suggestions will appear as links in the Circulate strip, and it might expand to offer the user three or so recommendations on a specific topic, or to ask or answer a user's question. As the technology develops, it will be able to gather new applications, so additional icons might appear on the bar that could offer a user access to their Twitter feed, for example.

A home base for users

Users will sign up for and download Circulate via a 'home base' which is likely to be their local newspaper. The Circulate strip will be branded according to the home base, so this newspaper brand will 'travel' with the user throughout their online experience. The user would be free to change their home base at will. Eventually the local newspaper, as a Circulate partner, would be able to sell advertising and do other kinds of marketing and promotion through the strip.

How it can make money for publishers

Although Langeveld does not believe that revenue from charging users will be "more than the smallest fraction of the total potential of Circulate," it will be possible to do that within the Circulate framework. If newspapers decide that they do have premium content which is unique and valuable enough that people are willing to pay for it, Circulate will facilitate this through a universal subscription to all multiple papers' premium content, or on a per item basis.

However, as stated above, Circulate's main aim is to increase traffic to newspaper websites. Langeveld pointed out that his team's research shows that in the US, web users spend only about 1.2% of their time online on newspaper websites, and traffic to newspaper sites accounts for only 1% of page views. "That really is the challenge for newspapers, to increase that percentage," said Langeveld. And Circulate hopes to do this by "constantly recommending journalistic content from newspapers and other news outlets the other 99% of that time."

The possibility for the papers acting as homebases to brand the strip also "has value" for local papers, according to Langeveld, as it means that their brand travels round the web with the user whenever they are online, thus constantly reminding them of their relationship with the paper. Circulate also intends eventually to include advertising on the bar itself, although the format has not yet been developed. Langeveld believes that there are opportunities for both national and local advertising. There would be the possibility to target users and therefore create more value, and participating papers could sell space to local businesses. He sees this as a good selling opportunity: "now you can reach our readers all the time when they're online rather than just the one or two percent that they're on our site."

Will it work?

Software development has already started and the Associated Press has agreed to allow Circulate access to its content. Langeveld confirmed that the company is planning a beta rollout with a group of newspapers and users in autumn. Could it be the solution that newspapers have been waiting for?

Many publishers seem to be concretely moving towards charging online, and others seem to be contemplating it as a solution to their financial difficulties and in an attempt to restore value to news and prevent it from becoming a commodity. The fact that Circulate would be able to incorporate this is thus a point in its favour. When asked if it could be compatible with Journalism Online, a start-up aiming to facilitate charging for content that has reportedly been in talks with many publishers, Langeveld said that it is something that his team has not explored, but that it was "certainly possible."

Increasing engagement time does indeed seem to make sense, although in terms of monetising it means that newspapers are still dependent on the advertising market. It is clearly something that newspapers should be working on themselves or through companies like Apture that try to keep readers on news sites through multimedia enhancements, but it does seem that Circulate can help in actually getting readers onto a site. Persuading readers to sign up could be tough, most likely requiring an aggressive marketing strategy, and the CircLabs team is wise to anticipate privacy concerns. Assuming that users do sign up, it is hard to say how many people will click through links and how often, but it seems as if it could well contribute to an increase in traffic. 

Google News and YouTube are extending their collaborative applications in an attempt to attract more news outlets to use their services. The project will target the 25,000 plus news outlets which are already on Google New's source list, to encourage them to join the YouTube partner programme and become an official partner. The aim is to help news publishers generate a larger audience for their video content.  

The plans were announced Sunday on the Google News Blog by YouTube news manager Olivia Ma.

There are many ways to measure the success of a newspaper and its website. A recent report from The Media Audit has ranked the top newspapers in the US based on percentage of adults living in the area who read the print version or visited the site in the last 30 days, and the results are surprising. The top-ranked publication: the New Orleans Times-Picayune and its online counterpart nola.com.

Nola.com tied for first in terms of the proportion of adults visiting the site, with 50.4 percent making it online in the past 30 days. The Times-Picayune came out second for print readership, with 75.6 percent of New Orleans' adults picking up the paper. However, when factoring in duplicate readers (those who read the paper as well as visit the website) the Times-Picayune reaches 85.8 percent of adults in the metropolitan area.

June 24 marked Outside.in's launch of the beta version of its latest product: Outside.in for Publishers. Outside.in for Publishers has many functionalities. The powerful tool extends any site's local news coverage to the hyperlocal neighborhood level, as well as serving as a "flexible, self-service platform that allows anyone to easily create hundreds or thousands of new high-quality pages for their site, each focused on a hyperlocal neighborhood with targeted advertising inventory," according to the site's press release.

The product is a result of the increasing sentiment that today's local media companies "are forced to do more with less." It appears that the goal for Outside.in for Publishers is to serve publishers by bridging the gap between local bloggers and the publishers themselves. This would heighten productivity by simply having more web pages and inventory. Local bloggers also get the bang for their buck in that more traffic will be directed their way.

The Pink Paper has been forced to suspend the publication of its printed edition, due to the 'economic downturn', it was announced on the paper's website yesterday.

The fortnightly paper, the only national in Britain to cater for a gay readership, will cease printing after the current edition, due to insufficient advertising revenue.  As a free publication, it relied entirely on advertising revenue, which has fallen sharply with onset of the economic recession.

The New York Times Co., has suggested that it will charge readers a fee to access to the NYT pages via mobile phones. The charges for mobile news will be put in place before any similar system is applied to the paper's news websites.

The publishers explained their decisions in an interview in New York. Martin Nisenholtz said that charging fees for access to news pages on mobile phones made sense because the mobile platform offered less space for advertising than the web. 

As editorial teams the across the globe seek to increase and diversify their papers' revenue streams, a wealth of diverse ideas and business models have appeared.  One of the latest to be aired comes from Laurent Joffrin, editor of the French national La Libération.   He suggests that editors of the press, publishers and website unite in the request that the leading internet servers providers (ISP or FAI's in France) Free and Orange add a few extra euros to their clients' bills.  This would serve to finance the costs of the services provided by publishers.  The fees would then be invested back into newspapers and other productions, the amount corresponding with the title's popularity and size of its newsroom.

The concept of a mutually rewarding financial model has a strong precedent in France.  The French cinema industry is financed this way, which according to Joffrin, 'has saved the industry and allowed its expansion', as reported by Challenges.fr. The editor is convinced that newspapers are an essential component in a democratic state, thus highly worthy of greater financing. 

News publishers, moving with the irrepressible technological pull of modern readership desires, and the financial necessity of adapting to advertising changes, have shovelled huge amounts of money and effort into the development of online editions of their titles. The aim was to increase revenue from the Internet editions faster than money was being lost from the printed editions. This was a risky, but apparently necessary gamble and the final result is yet to be seen.   The latest rounds of industry analysis, however, suggest that online editions will not be able to save their printed sisters financially, as the latter's traditional sources of revenues continue to drop disproportionately to the incomes generated by new ventures.

The analysts at 24/7 Wall Street maintain that even at companies of which 15 per cent of their sales are generated by online projects, this does not provide a sufficent base to maintain a substantial editorial and business staff.  Moving content online is a palliative, which may "bring in additional sales but it will not do anything more than buy time for the industry to find other solutions".

Associated Press CEO Tom Curley said that the organisation is hoping to locate new sources of revenue and better licensing deals to make up for reduced income from newspapers and broadcasters in an interview after a meeting with employees on Tuesday. He also discussed initiatives to protect online content, according to a press release.

Although Curley did not offer details, he said that the AP expects its revenue to fall this year and next. The AP is lowering its fees for newspapers and broadcasters by a total of $45 million this year, following a reduction of $30 million this year. Such concessions reflect the need to take into account newspapers' and broadcasters' increasing financial difficulties. As a first step to survive with falling revenue, the organisation is planning to eliminate about 10% of its payroll costs by the end of the year through attrition and early retirement offers, and "hasn't ruled out layoffs."

True/Slant is a recent arrival on the online-only news scene, aiming to offer a voice not only to its 100 or so contributors, but to the reader and the advertiser also. It is not a typical news site offering breaking news, but rather features commentary, opinion and some original reporting. Based in New York, the start-up has just six full-time staff, led by founder and CEO Lewis Dvorkin who has a total of 35 years of media experience, the last 12 of which has been in online news. The other employees have a similar mix of traditional and new media backgrounds, he said. T/S is a privately held company funded by Forbes Media and Velocity Interactive Group. The Editors Weblog spoke to Dvorkin to find out more.

The five differences

Dvorkin stressed the five ways in which T/S is "very different from any other news site." Firstly, because of the tools that it gives its journalists to create their own original content in real time. Second, because of its approach to copyright: contributors are encouraged to offer their perspective "around a piece of content that might have been produced elsewhere." Third, the relationship between the contributor and the audience is different because the contributors are contractually obliged to interact with their community. The last two differences are that the journalists have a variety of salary options and that the site has adopted an unusual approach to advertising.

For entrepreneurial journalists

True/slant offers "entrepreneurial" journalists their own homepage on the web, or as Dvorkin put it, "we enable them to create their own brand of one." They must be "experienced" in a specific field such as finance, politics or health but do not have to be a journalist from a traditional background: bloggers, authors or academics are also welcome. True/Slant is not a typical news publication with an editorial line, rather the work of a collection of individuals. "We don't have any ideology here, we have 100 different contributors, 100 different voices and 100 different perspectives," Dvorkin said.

Interaction with the audience is compulsory. Apart from that, it is up to each contributor to decide what they write and when. Much of what they write is opinion and commentary, but some also do original reporting. It is easy for them to comment on other news, by simply highlighting a section of an article they find on the web and clicking a button, the highlighted text will be placed on their post with a link to the contributing site. They are able to publish photos, audio and video as well as text and can self publish in real time. Their content can be automatically posted to Twitter and Facebook at the time of publishing. There is no traditional editing process in place, Dvorkin explained. Contributors are welcome to discuss their article ideas with a member of the T/S team, but they are not edited before publishing.

Different payment options are available, depending on the amount of risk that an individual contributor wants to take: journalists can choose to receive a monthly stipend, to participate in revenue sharing or they can actually have stock in T/S. Contributing to T/S is more likely to be one of several projects that a writer is working on, rather than their main source of revenue.

Promoting journalist-reader dialogue

Readers who want to interact with journalists must register and then they can 'follow' their chosen contributors and comment on articles, being drawn into a dialogue. Contributors highlight the user comments that they feel "further the conversation." A selection of these highlighted comments are then be integrated on the home page, amongst contributors' content. Dvorkin believes that this is very important to today's news reader, who enjoys "engaging with and being part of the news life of a professional media person." He believes that the True/Slant environment can be a "powerful experience" in the way that it encourages dialogue between contributors and users, as well as between fellow users.

A voice for advertisers

True/Slant is currently relying on advertising as its sole source of revenue. As well as display advertising, the company is incorporating "a very unique feature" called T/S Ad Slant for corporate marketers. They too can have a voice on True/Slant: they can pay for their own page and have access to the same tools that a contributor has to interact with a community. "It's a more direct and engaging approach," Dvorkin commented. He explained that such pages are integrated into the larger network in a "contextually relevant way," but stressed that the pages are clearly labelled as from marketers. Will this prove more lucrative than traditional advertising?

What's next?

Dvorkin said that the site has plans to grow, hoping to add more contributors and enhance its features. He believes that True/Slant is offering consumers a different way to experience news, one that is "more in line with how they want to access and interpret information today." Breaking news can be found in abundance throughout the web. What readers do need, is experienced, knowledgeable journalists to analyse and explain the news that they find, and this is where True/Slant steps in. It is indeed likely that many readers will appreciate the chance to be part of a conversation and form a relationship with their favourite writers. And from a writer's perspective, considering the growing number of out of work journalists today as traditional media outlets are forced to make cutbacks, a site that provides them with the tools for successful freelancing could be very welcome.

Joining the rising trend of niche news on the web, UK publishers the Yorkshire Evening Post and KM Group are set to launch several hyperlocal sites and for the communities surrounding Leeds and Kent, respectively.

The Yorkshire Evening Post will introduce 20 sites for the Leeds region containing news, information, sports and entertainment. Most sites will also feature audio and video

Leading Russian news agencies and media outlets have come to an agreement concerning proposals for a draft law which would grant news reports the legal status of goods and allow for the imposition of fines for the illegal publishing of copyrighted material.  The announcement was released today in a news release from the news agency RIA Novosti.  

The Mass Communication Council at the Russian Communications Ministry met on Wednesday to discuss measures to protect intellectual property. Participants included RIA Novosti, Interfax, the Kommersant publishing house, Vedomosti and Gazeta.ru.  

The Apple iPhone 3GS, premiered yesterday at Apple Inc's Worldwide Developers Conference in San Francisco, boasts an array of important new features for the newspaper industry and journalism at large. Perhaps most pertinent is the development that content can now be purchased from within iPhone applications. This new functionality presents newspapers with the opportunity to employ subscription and micro-payment structures to monetize the delivery of their content to their mobile phone readership.

Given the recent developments in the newspaper industry, such as the 'secret' meeting held in Chicago organised by the Newspaper Association of America to discuss how to monetise online content, it seems the question is no longer whether papers will begin charging online, but when, and how. And with regards to the iPhone 3GS, will they allow readers to continue to access their content for free, maybe making it harder to shift them to a pay structure in the future, or will newspapers seize this opportunity and begin charging readers as soon as the new OS is released?

The National Union of Journalists has urged the new Culture, Media and Sport Minister, Ben Bradshaw to take action in the campaign to reinvigorate local journalism in the UK.  General Secretary, Jeremy Dear has also requested a meeting with the Minister to discuss the specific issue of industry job cuts.

The minister, who only assumed the role last week through a ministerial reshuffle, is under pressure from the NUJ to support an economic stimulus package designed to boost the newspaper industry.   The need for a comprehensive financial policy is evident; regional newsrooms across the UK have been subjected to sizeable staff cuts and reduced budgets as they strive to cope with the double burden of the recession and the decline in circulation.

Classifieds website Craigslist has provided a noteworthy boost to alt-weeklies' adult classifieds revenue after its recent policy change that requires closer regulation of its adult-services classified ads.  This is an ironic turn of events for the online colossus of classifieds that has wrought havoc on its competition, in print and online, ever since 2005.

The Washington City Paper reported increases in adult ads of 38% compared to one year ago, a change Andrew Beaujon from the paper's City Desk blog correlates directly to Craigslist's tougher regulation of their adult ads. Beaujon reminisces that for alt-weeklies like his, "Craigslist's free classifieds were an extinction-level event." But now Craigslist's requires would-be adult-services advertisers to waver that their posts contain no "content that is unlawful, pornographic, or which advertises illegal services", no ads "suggesting or implying an exchange of sexual favors for money", and no "pornographic images, or images suggestive of an offer of sexual favors.". These stricter standards have driven adult advertisers away from Craigslist, resulting in the higher figures for the local papers and free weeklies that used to account for so much of the classifieds market.

It is becoming increasingly clear that a proportion of general news content is going to be put behind some kind of a pay wall in upcoming months. Several publishers have expressed their intentions to start charging, and several third parties want to help them do it. Journalists don't seem to want it, it seems pretty unlikely that readers would want it, so how are publishers going to succeed? Can it restore value to good journalism which is increasingly becoming a commodity? The Editors Weblog takes a look at some of the different services on offer and strategies being considered.

Journalism Online

First, Journalism Online, a start-up founded in April by industry experts Steve Brill, Gordon Crovitz and Leo Hindery, has taken facilitating charging for online content as one of its core goals. Brill made a presentation at the NAA-organised newspaper executives' meeting in Chicago on May 28 at which Journalism Online's mission was stated as enabling "news organizations to restore the optimal mix of circulation and advertising revenue necessary to finance original reporting and editing" hence giving them the chance to "realize the revenue they deserve--and can command--from readers and distributors for their digital content."

Journalism Online is marketing its proposal as an e-commerce platform. The idea is that it would make premium content from multiple publishers easily accessible to readers and allow annual, monthly subscriptions, day passes or single articles. There will also be all-you-can-read bundling options. Publishers will decide what content they want to charge for, how much to charge (though it is unclear how all-you-can-read prices will be decided) and how to charge. In the presentation, Brill suggests $50-60 a year and $5-6 a month for small to large city papers, but he stressed that this was an arbitrary choice and clearly the price would depend on how much content the publisher put behind the pay wall. He had previously suggested $15 a month for an all-you-can-read subscription.

The company maintains that implementing its system will not lead to a substantial loss in traffic or ad revenue, claiming that papers would be able to keep 88% of page views and 91% of ad revenue, as any paid content would be part of a hybrid model. In his examples, Brill demonstrates how he believes a paper could essentially double its income. Brill has also stressed that Journalism Online will incorporate lots of sampling. He told Nieman Lab's Zachery Seward that Journalism Online's assumptions are that 5-10% of current monthly unique visitors will be willing to pay for content; that 95 percent of those paying customers will choose subscriptions over micropayments; and that after subscribing, those readers will view 30-40 percent more pages than non-paying readers.

Overall, the company seems to be presenting its service as a chance for newspapers to focus on their best customers, offering a premium service to those who are prepared to pay. At the Chicago meeting, Journalism Online also emphasised the advantages of paid online content in terms of preserving the print product: it is "about the value proposition of print... about print subscriber acquisition and retention costs."

ViewPass

Another third party service was presented at the NAA-organised meeting in Chicago: ViewPass. It is the brainchild of Alan Mutter and Ridgely Evers, and could be implemented in 9 months at a cost of $6 million. The idea is that newspaper readers would be required to register once with ViewPass and it would then track their activity across participating websites.

Like Journalism Online, it would aim to offer readers the chance to purchase premium online content from multiple sources, with potential for subscriptions, micropayments and bundling. Essentially, the ways in which it differs is that ViewPass would be industry-owned, giving publishers the chance to (hopefully) share profits in the business itself, and it most crucially it would allow users to 'pay' for their content with their time or their information instead of with cash, because of their increased value to advertisers. In fact, ViewPass would focus on presenting readers that were attractive to advertisers for highly targeted ads. Mutter himself is not enthusiastic about charging for much online content, suggesting to Nieman Lab that it would only work for specialist content.

Circlabs

The creation of another start up was announced the day before the Chicago meeting: CircLabs, founded by Bill Densmore, Jeffrey Vander Clute, Martin Langeveld and Joe Bergeron. Its first product, code-named Circulate, aims to "offer a solution" to publishers who are experimenting with micropayments and subscriptions, suggesting that they should charge for content which is "both scarce in nature and of high utility to a segment of the audience." CircLabs is also focussed on developing opportunities for "high-value" advertising revenue, and plans to incorporate personalised news services. Further details are yet to appear.

Efforts of individual publishers

News Corp CEO Rupert Murdoch has announced that all the company's newspapers would be charging within a year. It is looking at bundling content, according to chief digital officer Jonathan Miller, such as putting all the media conglomerate's New York-based content into one subscription package. One of the company's prime assets, the Wall Street Journal, is proof that paid premium content does work, although of a specifically financial nature. The paper is to expand its paid online options, with plans to introduce micropayments later this year along with a further level of premium subscriptions. Murdoch suggested that the company wants to "test" a pay model on some of its stronger properties first, and there has been speculation that the Sunday Times will be among these. The paid online content debate, although definitely present in the UK, has not been as strong as across the Atlantic, and it would be interesting to see what sort of reaction such a move would provoke.

MediaNews Group is planning to charge online under the belief that "we continue to do an injustice to our print subscribers and create perceptions that our content has no value by putting all of our print content online for free." A memo to staff from CEO Dean Singleton and president Jody Lodovic suggested that a part-paid strategy is in the works, and made it clear that the company is intending to charge for existing content rather than for new products or services.

The New York Times is apparently looking at two different ways in which it could charge for online content. The first would be somewhat similar to the Financial Times' model, whereby readers could surf the site without charge until a page-view or word limit were reached, when a 'metre' would start running and it would charge a user for the rest of their time spent. (The FT allows 10 free articles per user per month, then demands a subscription.) This would have the advantage of not putting specific content behind a paywall, and therefore not angering journalists.

The other option is a 'membership' scheme: readers would donate money and subsequently be invited into a "New York Times community," which would offer them free merchandise and other benefits. Possibly a tiered membership scheme could be implemented. When these proposals were discussed, Bill Keller told staff that a decision would be made by the end of June. The NYT is wary following its failed TimesSelect experience back in 2007 and seems determined to find a solution that will not damage its significant ad revenue.

Potential obstacles: search and antitrust

Currently many people find their news through search engines such as Google, and for articles to get good Google rankings and appear higher up in search results, they cannot be behind a paywall. Newspapers must strive to find an appropriate solution to this when they start charging: the Wall Street Journal's tactic of allowing its paid content to be accessed free via Google is clearly not fair to its paying customers, and is a definite deterrent to potential subscribers.

Antitrust regulations in the US effectively prevent publishers from coming to a joint agreement on when and how they should start charging for content. At the newspaper executives' meeting in Chicago on May 28, an antitrust lawyer was present to make sure all the discussion was legal. Poynter analyst Rick Edmonds suggested that the use of a third party "vendor" such as Journalism Online could be the solution to these concerns. Journalism Online has taken on David Boies and Ted Olson for antitrust advice.

So, is it going to work? And how?

Undoubtedly, implementing paid content is going to be a considerable challenge and is likely to involve substantial experimentation. Newspapers need to consider what exactly they would want to charge for, for example whether they could create a new paid service or put what is currently free behind a pay wall. It seems as if it would be easier to persuade people to pay for something new, rather than telling them they have to start paying for something previously free. But then people might decide that they are happy with what they get now and that they do not want to pay for anything extra. A paper with a highly developed website such as the New York Times could possibly offer basic news free but keep its interactive graphics and other more innovative content for its premium customers.

As yet, Journalism Online seems to be ahead of the pack with regards to third party services. No papers have publicly signed on but Brill told Seward that he had already spoken to about half of those at the Chicago meeting. In terms of connections and credibility of its founders, Journalism Online has a head start. ViewPass and CircLabs do seem to be onto something, however, with their focus on offering consumers as targets for higher-revenue advertising and effectively allowing them to pay for their news by looking at ads. Could these companies coexist, or is there only room for one?

A crucial factor which should not be underestimated in any attempt to charge online is ease of use for the consumer. People will be far more likely to part with their cash if doing so is simple and straightforward. For this reason, sign-in-once and all-you-can-read offers are likely to appeal. And once people are paying, the level of service should reflect this: good journalism presented attractively and accessibly. An element of personalisation would also seem worth paying for.

Can paid online content 'save' newspapers? If Journalism Online's figures are correct, it looks like it could make a significant difference to a newspaper's fortunes. The next few months will be telling in terms of experimentation and competition between proposals, but it will take some years for the definitive answer to this question to be realised.

The city of San Diego is a microcosm of the current battle raging between the new and the old for the headlines of local news. As American cities struggle to maintain their regional papers, online initiatives are springing up to fill the gap left in community reporting.  Now California's second largest city is covered by three reporting projects, functioning on very different business models.   

The classic first: the San Diego Union Tribune is the city's only newspaper, which has an apparently bleak future.  Revenue from advertising has dropped by 40 per cent from 2006.  In March, a buyout shop, Platinum Equity, eager for its first publishing venture, announced that it would buy the paper.  Last month the buyers revealed that 200 of Union-Tribune staff would be made redundant.  However, it seems that the cutbacks at the Union-Tribune have not damaged its online edition, which averages 1.3 million unique visitors a month and racked in an estimated $10 million on $18 million in sales last year.

From today, a new partnership between Associated Newspapers' free titles and PageSuite will see the group's online newspapers including Metro, Metro Ireland, London Lite and 7Days published by the digital publishing solutions company.

The Metro's operations director, Stuart Wood, said: "Our electronic editions provide a convenient way of accessing our content. We are focused on delivering a first-class customer experience and PageSuite's market-leading product helps us achieve that."

In an interesting article published on the Guardian Media website, Jeff Jarvis (right) talks about the changing nature of journalism and advertising, with content generated not just by journalists but - thanks to the Internet - also readers.

"Advertising is failure," declares the American journalism professor in his opening sentence, adding that advertising is a last-ditch attempt to win over customers. "The media pray for such failure because it is advertising that will support them," he notes.

Alan Mutter has confirmed that he was one of three people who made a presentation at the 'secret' newspaper executives' meeting in Chicago last week. The product he was discussing, which he has developed in conjunction with tech entrepreneur Ridgely Evers is ViewPass: a single, industry-owned brand that would enable consumers to access paid content on websites and mobile platforms from all participating publishers.

Mutter compared ViewPass to a Visa card, and clarified that it would consist of a "simple, one-time registration system that would remember users as they moved among participating websites." It would support micropayments, subscriptions and bundles of content, similar to Journalism Online. "To address the concern that many consumers may rebel against pay walls," reads the document given to publishers at the meeting, obtained by NiemanLab, ViewPass also gives publishers the option of letting users "pay" for content with time or information rather than just cash.

A conference held by the Association of European Journalists (AJE), held today, June 3 in Paris, discussed the path forward for journalism which focuses on Europe as geo-political reality.   Aware that the concept of Europe, as reported in the mainstream press, often fails to capture the imagination of the public as well as many journalists themselves, representatives of initiatives currently striving to revive the issue met to debate its progress. The questions raised were broad: Is reporting on Europe a 'chore'?  How can the media inspire, entertain and inform on European issues?  Which are the principle perspectives and agents responsible for revealing what's actually going on in the EU?  And will European institutions be prepared to finance new organs of information?

Participating in the debate were: Renaud de Chazournes, Chief Editor of the monthly magazine, L'Européen, Eric Maurice, Chief Editor of Presseurop.eu and Matthieu Collet, President of EurosduVillage.eu. 

The proposed merger of two Polish dailies and the launch of an entertainment version of a political weely, both intended to conquer a new public and consolidate readership, have raised some doubts in the Polish newspaper industry.

Poland's largest business and legal daily Gazeta Prawna (87,000 paid circulation) will merge with the second quality news daily Dziennik (147,000 readership), in a 51/49% partnership between Infor Biznes and Axel Springer, their respective owners. The transaction, which will result in a combined newspaper strong in economics on one side, and politics, culture and sports on the other, is still subject to approval by the authorities.

Last week the Chicago Tribune Co. revealed a new blog aggregation site aiming to "connect Chicagoans." ChicagoNow is a network of blogs featuring passionate experts on a wide range of uniquely Chicago topics such as real estate, public transportation, sports and the city's police. The current beta version of ChicagoNow features blogs from over 30 local personalities and specialized experts, but it hopes to reach 80 by the end of the year.

According to the New York Times, American television network CBS has joined efforts with live video web site, Ustream, to have its news video content and special reports streamed live on the site, in a bid to draw in a younger crowd.

"Seeking a younger audience more accustomed to watching the news on the Internet than on television," reports the Times, Ustream will show the CBS Evening News with Katie Couric, as well as a variety of real-time news reporting and other coverage, including news conferences and speeches.

Will people voluntarily pay to read news that they could easily read for free? Cynthia Typaldos, founder of Kachingle is convinced that they will. Kachingle proposes a novel solution to the news industry's revenue problems: encourage people to donate money to their favourite sites, whether these are major news outlets or small-time blogs. The Editors Weblog spoke to Typaldos to find out more about the scheme, which is due to launch in late July or early August.

How it works

Kachingle users, who the company are calling Kachinglers, need to sign up once to set up their subscription, which, via PayPal, will charge them $5 a month. When they go to a news site that is participating in the venture, it will display a Kachingle 'medallion', which the user can click on to indicate their support for that site. The reader can choose to highlight as many or as few news sites as it wishes, and Kachingle will track the number of times that they visit that site in a month. At the end of a month their $5 will be divided and distributed proportionally between the sites which they have flagged, according to the amount of times visited (with a 15% cut going to Kachingle and 5% to PayPal.) "The algorithm is meant to be a proxy for value received the consumer," Typaldos explained.

Why will people pay?

The main reason Typaldos thinks people will be prepared to offer this $5 is not because they have a strong desire to help save newspapers but because of the social advantages of using Kachingle. Contributors create a profile that shows which sites they are supporting, which they can post to their Facebook profiles or send on Twitter, Typaldos suggested. There will even be a Facebook application. "It becomes a very real view of the things I value, part of my online persona," she explained: something which she believes is "very important" to people as their online existence becomes more and more complex. Essentially, "there's a very powerful peer pressure recognition element to Kachingle" which is what she thinks will drive people to become involved, she feels that users will be "getting something back" in the form of social recognition. The more altruistic wish to help support news would come second to this, she believes.

Another reason Typaldos gave for why Kachingle will work is simply how easy it is: a crucial factor for such a venture. Registering involves providing just basic details, and thereafter, a Kachingler's job is straightforward, marking the sites, without having to consider how much they would like to contribute to it. "There just can't be any mental transaction costs," as Typaldos put it. And the system still allows people to move freely around different publications without encountering pay walls, which Typaldos is firmly against. "Pay walls are just the kiss of death for newspapers," she claims, "we just think it's the wrong economic approach." Those who are trying to implement them "are trying to take the old business model and stick it on the Internet," which she believes is a doomed approach.

To start with, anyone who registers as a Kachingler will make a $5 a month payment. It is fixed thus because Typaldos did not want the decision of how much to contribute to be a barrier for users. The company plans, however, to allow people to give larger amounts in the future, and to encourage them to do so by suggesting amounts based on how many sites they have chosen to support. Typaldos hopes that the typical amount given will rise to about $20 a month. Unsurprisingly, content providers would like people to contribute more money, she said.

The start-up has been in contact with many major news publishers, Typaldos clarified, and these have been by no means only US based: publishers in Germany, the UK, France, Italy, Brazil, Hungary and across Scandinavia, for example, have been in touch. "We are not country specific," she confirmed. For news organisations, the benefits are clear, and the medallion button is extremely easy to install: a simple Java script widget which "you can put on your site in three minutes."

Will it work?

So how much could Kachingle actually raise for newspapers? Could it make a difference? "I think that we will bring enough revenue to sites that are very high quality with original content," Typaldos asserted. She is not under any illusions that such an effort could save a major newspaper that has "debt, so many overheads, print, a huge staff," but she is confident that Kachingle could have a highly significant impact on smaller publications such as MinnPost, which has low overheads but respected journalists. "We will be very powerful for them," she added.

The idea is a good one in the sense that it manages to combine the notion that people should and can pay for news, without putting up paywalls that would block off sections of newspapers and seem incompatible with the idea that news readers should be able to jump around as they please online. It is also compatible with an advertising model. Typaldos described it as "not like tipping, not like micropayments, but we have taken the best elements of both." The fact that readers can choose what they think its worth paying for is likely to appeal to many, and the cost is sufficiently low to not be a deterrent. It does seem that quite a substantial marketing campaign will have to be carried out to spread the word and persuade people that it is worth making the effort to sign up: social pressure alone might not be enough. Once they do so, however, they will probably appreciate the service.