Results matching “the lead over print”

Journalism Online has announced that it has retained ITZ Publishing to lead its efforts in working with small- and medium- sized newspaper companies to maximize their online revenue opportunities. ITZ will help Journalism Online's affiliated news publishers to design marketing and packaging strategies for online subscriptions, micropayments and combined online/print subscription packages.

It will do this by assessing audience usage patterns and hence helping the newspaper companies to build appropriate pay strategies through Journalism Online. "Greg Swanson and the ITZ Publishing team have been market leaders in developing breakthrough solutions for news publishers," Journalism Online's Co-founder Steven Brill said in a press release.  Another of the co-founders, Gordon Crovitz commented that "The marketing and data analysis expertise of ITZ Publishing will be especially valuable to publishers in retaining a large number of unique visitors and page views online while converting many free users to paying subscribers."

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.

Yesterday, the recently founded Media140 held its first Twitter and microblogging conference. Held at London's Southbank Centre - a venue in the heart of the UK capital synonymous with innovation - the event largely focussed on the effects that Twitter and micoblogging are having on the news gathering process and was attended by journalists from Guardian.co.uk, TimesOnline, TechCrunch, BBC, Aljazeera, Reuters and Sky News.

Kicking off discussions, associate editor of the Sunday Herald and author of 'The Play ethic', Pat Kane, opened up the conference with a keynote presentation on the way breaking news services were dramatically changing the face of journalism: "Reading a newspaper on a street corner might be seen as banal. What's becoming just as banal is producing news on that street corner," said Kane. You can access his slideshow from the presentation here.

The Economist has made the news industry the special focus of its business section for its latest edition. "Established" news is described as "being blown away" but news in general is otherwise considered to be "thriving."

In an opening paragraph which does not bode well for advocates of traditional media, the Economist ponders if "the surest sign that newspapers are doomed is that politicians, so often their targets, are beginning to feel sorry for them," in reference to Barack Obama's pledge to newspapers last weekend at an industry dinner in Washington, as well as Massachusetts senator, John Kerry's commitment to help the "endangered species" and, in particular, his region's beloved Boston Globe.

Speaking at the White House Correspondents' Association Dinner in Washington DC on
Saturday 9 May, president Barack Obama said that "a government without newspapers, a government without a tough and vibrant media is not an option for the United States of America."

In what was mostly a speech packed with jokes and humorous anecdotes, Obama ended his discourse on a serious note about the state of journalism in the country, acknowledging that there were many good journalists who had recently found themselves out of a job.

Appearing before MPs earlier this week, a number of editors from some of the country's most
established newspapers warned of the "chilling" costs of legal action which were discouraging many newspapers from the business of investigative journalism, the Guardian has reported.

The editors were invited to demonstrate how privacy, libel and press standards were impacting the day-to-day business of running their newspapers, as part of a review on the part of the culture, media and sport select committee.

A new report produced by the publishing arm of PricewaterhouseCoopers - the world's largest professional services company - in conjunction with the World Association of Newspapers (WAN), examines the outlook for newspapers as they seek to realign themselves within a digital framework and minimise the impact of the global recession.

The study identifies interactivity, specialisation and new business models as being key to ensuring the survival of the newspaper in an online age.

The Rocky Mountain News published its final edition on Friday 27 February, and the Seattle Post-Intelligencer's last print edition before its move online was printed on Tuesday 17 March. The demise of these two publications, despite the P-I's continued existence online, left a hole in both Seattle and Denver. However, in both cities, online only publications have emerged. Both staffed by writers for the respective former newspapers, INDenverTimes and the Seattle PostGlobe are now up and running. The Editors Weblog spoke to INDT co-founder Kevin Preblud, and Kery Murakami who is leading the Seattle PostGlobe's effort, to find out more.

Funding

The two publications have taken very different routes in terms of funding. Fighting back against the mentality that information is free online, INDT is charging for subscriptions. Whilst much of the news will in fact be free, "it's really the premium content that we want our subscribers to pay for", explains Preblud. Initially, an target of finding 50,000 subscribers by April 23 was set, in order for the full launch to go ahead on May 4. However, the decision will now be based upon a combination of subscribers, users and page view figures.

Subscribers will have access to the INsider Channel, "where you can have a direct, real time conversations with our editors and writers" as well as a number of other applications and tools. "Insight, perspective, live blogging, live chatting, commenting, interactivity with writers and other readers" are amongst the benefits offered to paying readers.

Preblud believes that "business model is currently not working", largely due to the drop in advertising revenue and the decline in print readership. It is for these reasons that INDT is trying something different, and in terms of its model Preblud believes that "the cost structure is reasonable, the revenues are up, and with advertising and subscriptions I think we could make this work."

The Seattle PostGlobe, on the other hand is aiming to run as a non-profit, free to access publication funded by donations. Murakami presents the project as "for the broader civic good, as opposed to trying to make money." He added that "Seattle has a rich history of community efforts." Discussing INDT's decision to sell subscriptions, Murakami thinks that "it could work" - but his reluctance is attributed to the fact that he does not like the idea that only the people who could afford to pay would have access to information.

Citing the VoiceOfSanDiego and MinnPost as influences for the project, Murakami laments that "the big difference between us and them is that they were lucky enough to find some big pocket donors". He explains that the largest single contribution the Seattle PostGlobe has so far received is just $500. To increase revenue, the SPG has reached a deal with the Seattle Weekly, whereby the Seattle Weekly sells the SPG's advertising space and split the proceeds 50/50.

"We hope it will make the community feel empowered and they will respond - it's going slow so far but we'll see."

Murakami explains that they are giving readers the choice; "What we have done is said, 'We're going to volunteer and we're going back to you, the community, to put this in your hands. If you want us to do the work that we do, then support us. But really it's your choice.' We hope it will make the community feel empowered and they will respond - it's going slow so far but we'll see."

Coverage

Both the SPG and INDT have chosen, somewhat inevitably, to narrow their coverage from that of the Seattle Post-Intelligencer and Rocky Mountain News respectively, and place more of an emphasis on local coverage than statewide reporting. Murakami points out that "with a much smaller staff we have to be much more focussed, in terms of what we do," whilst Preblud concedes that "because we're an online-only news resource we just can't cover everything that the Rocky was covering."

"The Seattle P-I didn't go under because of a lack of interest or of readership, which is ironic."

Murakami hopes that the SPG will recapture the market that the P-I once held - because, as he explains, "the Seattle P-I didn't go under because of a lack of interest or of readership, which is ironic." There isn't, however, necessarily a call for a more hyperlocal approach to the news in Seattle because of several blogs already in existence which focus on specific neighbourhoods.

"We will be emphasising Seattle coverage as opposed to broader Washington coverage. We are focussed on issues that affect people in the city," Murakami explains. Similarly, Preblud describes how INDT believes "that our purpose is to cover the local market and the local community of Denver in a much more focused manner. We're unfortunately leaving out some of the more statewide coverage".

Both the Seattle PostGlobe and INDenverTimes will be looking at potential content-enhancing collaborations in the weeks and months to come. The SPG is investigating partnerships with public TV and radio stations, namely KCTS-TV. "We could be a demonstration project here in the state, showing how merging a public TV station, a public radio station and former newspaper reporters could work. The idea that we are pursuing is for the three entities to remain separate yet join to create a news organisation." INDT, meanwhile, could "end up partnering with some of the other local news outlets in the smaller cities".

Reception

"It seems that we really were valued and left a void that people appreciate us trying to fill."

The response to the new publications in both Denver and Seattle has been positive. "They've all been positive, keep up the good work, they're all rooting for us, and hoping that we can continue and that we can succeed," says Preblud. Murakami describes the reaction to the SPG as heartening: "It seems that we really were valued and left a void that people appreciate us trying to fill."

Personal impact

Preblud explains that his desire to launch INDT stems from his Denver roots, where he grew up reading the Rocky. He explains that he found it difficult to watch its demise, and that "nobody stepped up and was willing to buy the Rocky." It was this which prompted him to co-found INDT, "I just felt there was an opportunity there with part of what the future solution might look like," he clarified. Working on such a project is unlikely to be the same as working at an established paper, however. Murakami, discussing his new role, comments, "It's weird, I have been a newspaper reporter for 20 years. And now I am part-salesman, part fundraiser, part photo editor, part editor, part IT guy. And I haven't had time to do any stories."

How closures are affecting American cities

The Seattle Post-Intelligencer and the Rocky Mountain News are two of the most high profile American newspaper closures, but there has been speculation that more could follow. Whilst the P-I is now published online, the Rocky in any official form disappeared completely. In reference to the situation Seattle now finds itself, Murakami says "The paper left a big hole in the community and nobody in the community was ever asked if that was OK. The community had no voice, in terms of this thing that happened".

"I think there's a risk at the moment and there are places where they are losing coverage."

There has been speculation in the New York Times over which American town could become the first to lose both of its newspapers, and Michael Wolff of Newser recently, and somewhat controversially, suggested that all newspapers could have disappeared in 18 months time. In terms of communities losing valued newspaper coverage, Preblud says "I think there's a risk at the moment and there are places where they are losing coverage. A vehicle like INDenverTimes hasn't been put in place to cover the losses. It's critical that we as an industry figure out what the right model is so that we don't lose the core of journalism, which starts with local coverage."

Whilst neither the Seattle PostGlobe or INDenverTimes are claiming to be a replacement for the newspapers whose demise lead to their creation, they are undoubtedly trying to help fill the gap that was left. In the future, will the situation in Denver and Seattle repeat in other towns and states in the US? If there are further newspaper closures, it is somewhat inevitable that sites such as INDT and the SPG will emerge - but can such sites provide a service to the community that is in any way comparable to that of a city paper?

Yesterday, the Australian reported that following a period of sustained economic growth peaking at the end of 2008, India's newspapers are beginning to show signs of economic retreat, with advertising revenue falling by unprecedented amounts.

With economic retardation sweeping the world, emerging markets are also beginning to suffer as foreign investment dries up but printing costs continue rising. "Newspaper sizes are coming down, staff are being retrenched, marginal titles closed and expansion plans put on hold," reports the Australian.

Amazon has reported that sales of its e-reader, the Kindle, have been better than expected. Bloomberg quoted a letter to shareholders from CEO Jeff Bezos in which he claimed that "Kindle sales have exceeded our most optimistic expectations." Amazon does not release actual figures, however.

The company brought out the Kindle 2.0 in Februrary, which is thinner and faster than the original, and is on sale in the US for $359. As well as the more than 250,000 book titles available, many newspapers have offered their readers subscriptions via the product, with editions of the newspaper delivered wirelessly each day. USA Today recently announced it is offering its blogs on the Kindle, in addition to existing subscription possibilities.

The Internet is set to overtake television as a main form of media consumption in 2010 says a report by Microsoft called "Europe Logs on: Internet trends of today and tomorrow." The report covers Italy, France, Spain, Germany, the UK, Belgium, Austria, Switzerland, Denmark, Sweden, Netherlands, Finland, Norway Turkey, Gibraltar, Cyprus and Greece.

If the current growth trends continue, Microsoft states the turn could occur in June 2010 with a weekly average of 14.2 hours on the web and 11.5 hours on television. The report also states that TV will continue to be a strong source of media, however it will be experienced in new ways. Already, online videos are shown to be the most popular entertainment feature with 1 in 4 Europeans watching all kinds of videos.

The study found that Europeans are spending an average of 9 hours a week online, more time than they spend reading print media. They found that 65% of online activity was dedicated to news websites, social networking and email.

In the United States, online news consumption overtook print media, yet local television remains strongest. With cable, local and network TV combined, TV lead at 70% of news consumption, according to Pew Research Center's State of the News Media 2009 report. The report also stated that with the current growth of Internet, it will eventually pass television.  

Source: Brand Republic, Europe Logs On, Journalism.org

Spain's free press organisation, the Asociación Española de la Prensa Gratuita (AEPG), announced on its site the launch of the country's first search engine for printed free publications.

More than 150 free online publications have been made available in a move - according to the AEPG - which confirms the organisation's commitment to online.

In front of an audience of 40 people on Wednesday afternoon, new media came face to face with old media. Arianna Huffington, founder of the online only Huffington Post, and Pulitzer prize winning Linda Greenhouse, a former New York Times journalist, met to discuss the differences between print and online journalism.

Greenhouse described a typical day at the beginning of her 30-year career at the NYT, where she used a typewriter and gave copy to her editors on carbon paper - a system which she now describes as a "dinosaur of a news operation". Speaking of her departure from the NYT, Greenhouse also revealed that being asked to do additional online-only reporting was one of the factors. She disliked the immediacy which has become integral to journalism, largely as a result of its online transition.

Printed newspaper readership in Canada remains high and online readership proves low according to reports by the Newspaper Audience Databank (NADbank). Almost 75% of Canadian adults read a print edition of a newspaper each week, while only 20% read an online publication during the week and only 4% read online papers exclusively.

Like in the United States, more people tend to read newspapers in smaller markets, and the highest weekday readership of newspapers is in Cape Breton. The study found that in major cities Toronto, Montreal, and Ottawa almost half of the adults read the major weekly newspaper, and in Vancouver the Province readers 47% of adults, while the Vancouver Sun reaches 45%. Unlike many countries, Canada still has a strong readership in the 18-24 and 25-39 age demographic.

Last week the Cedar Rapids Gazette announced changes in the organization of its newsroom, namely the new role of former editor Steve Buttry as "Information Content Conductor." This change is part of broader functional reorganization led by Chuck Peters, Gazette Communications CEO, who is determined to generate innovative strategies to combat the difficulties faced by printed newspapers.

In the announcement, Buttry describes the reorganization of the company and his new title. Buttry will lead an independent organization focusing exclusively on developing content from the Gazette's professional journalists as well as the community. This content will be published "digitally without editing and without the limitations of products." There will also be another organization headed by the editor that will plan and edit projects, such as the Gazette and GazetteOnline, using Buttry's content as well as others.

Though most of India's daily newspapers do have an online presence, Indian online publications have not evolved the same purpose and format as U.S. and European news sites. In an afaqs.com article reporter Kapil Ohri examines the reasons for Indian newspapers' failure to create profitable online ventures.

"Online editions are considered merely as an extension of the newspaper and are not treated as a separate source of revenue," says K. Srinvas, senior manager of Internet operations of Eeandu. While some online editions have tried innovative approaches to news, most Indian print dailies have not effectively harnessed the web to optimally reach and engage their readers.

At this years Digital News Affairs conference, debates have ranged from the merits of the online aggregation business model to questioning who made Barack Obama President, and speakers have come from new online-only start-ups and established print publications alike. The two-day Brussels based event has been covered in detail by Journalism.co.uk, and has been live blogged by dedicated Twitter users both in the audience and on the podium.

Before proceedings began, associate editor of Wired UK and co-host of DNA 2009 Ben Hammersley spoke with Journalism.co.uk about how news organisations use social media and new technology online. Hammersley feels that many "have embraced an awful lot of stuff because it's fashionable or they feel they should", but that some hastily started projects are "not just a waste of time, they're a waste of creative resource and money". He believes that social media experiments are fine for bloggers, but that for mainstream media such action "needs to be assessed very strongly and thoroughly". He also says that news organisations need to be more ruthless and Google-esque in their attitudes to cancelling projects which aren't working - online "the key metric is which online companies kill the rubbish stuff the fastest".

The Los Angeles Times is to integrate coverage of its arts, entertainment and Hollywood business news. From March 3, reporters working on the paper's Calendar section - overseeing entertainment and leisure news - will be expected to work side by side with the arts and business teams.

Sallie Hofmeister, who was made business editor last May, will assume the new role of assistant managing editor/arts & entertainment to oversee operations. It is understood that, as yet, no new business editor has been appointed.

On Sunday, Patriot-News reporter Daniel Victor posted on PennLive.com about his prospective blog, a "community-directed reporting experiment" that Victor believes will lead to a very different way of reporting. He proposes that readers submit their ideas for community and neighborhood news stories that they feel deserve the newspaper's attention via comments on his blog. Victor will then create a poll of the best ideas and allow readers to vote on his next story for both the blog and the printed paper.

Gabriel Sherman of The New Republic has written about Washington must-read The Politico.  He firstly notes an event on January 22nd where Politico reporter Jonathan Martin was present at in the White House press corps when Barack Obama went down for a friendly, informal meet-and-greet with the reporters.  However Martin wasn't prepared keep the exchange to simple pleasantries, and pressed Obama on political issues until the President grew exasperated and responded "I can't end up visiting with you guys and shaking hands if I'm going to get grilled every time I come down here."  The headline "Obama Flashes Irritation In Press Room" was on the Politico site in under an hour, picked up on by the Huffington Post a few hours later and on Fox News and CNN by the end of the day.

Sherman recalls other similar events where the influence of Politico has been displayed when it ran relatively inconsequential stories (such as Senator McCain forgetting how many houses he owned), which then attracted so much attention that publications such as the New York Times were later prompted to run front pages on them.  However this method of fast-reported headline-hitting news isn't always popular amongst other Washington reporters "It's maddening. Everyone has to chase them," one complained.  Its success is unprecedented and unusual, particularly its ability to combine online and printed news.

Various ideas to overhaul the business model of newspapers have been debated in recent weeks, such as the possibility of a return to paid online content, or a non-profit endowment scheme. Both have potential, but both are long term solutions that would take some time to implement, and for the immediate crisis at hand, could government help be the answer? At the end of January French President Nicolas Sarkozy approved a 600 million euro package of measures to save the beleaguered French press. Ideas for some kind of bailout plan have been floated in the US for several months now, following those for banks and the car industry, and similar discussion has taken place in the UK. Is a similar bailout likely to happen anywhere else? Could it save the struggling industry, or is such government involvement in the media too dangerous?

The French way

The French measures announced came largely from recommendations in a three-month study into the industry's health that was released in early January. The proposals were largely based on reducing productions costs, but the study also recommended that newspapers restructure their finances and that journalists be better trained for multiple forms of media, including online. Sarkozy's speech instructed newspapers to improve the content of their articles, bring in younger readers and transform business models

Arguably the most controversial measure was the decision to give 18 year olds a year-long subscription to a newspaper of their choice. This is clearly a direct subsidy, and one which many people do not think will work. It does seem optimistic to imagine that thousands of teenagers are going to find the time in their day to sit down and read a broadsheet rather than scan news online, and then be inspired to continue such a subscription. The package also included a major increase in state expenditure to support newspaper and magazine deliveries: 70 million euro from 8 million last year. The government will double its spending on advertisements in print publications. The state will also defer some fees the publications face, and Sarkozy announced a freeze on the cost of postal distribution and a reduction in payroll taxes for newsagents. He also extended tax breaks for investors in online journalism.

France's press is among the least profitable in Europe, with circulation figures of around half those of the UK and Germany, and national newspapers suffering particularly. According to the Guardian, it is "stifled by rigid communist press unions, a lack of kiosks selling papers and a declining readership far below that of the UK or Germany." Sarkozy has promised to increase points of sale, and work to improve newspaper delivery to both kiosks and homes. Another major problem is high printing costs, as presses are controlled by communist union Le Livre. Sarkozy announced that the state is aiming to reduce printing costs by 30-40 per cent by negotiating with the union.  

Sarkozy insisted that the aid package was not an attack on press freedom, the Guardian reported. "I don't understand how anyone could doubt the legitimacy of the state in this process," he claimed, comparing the press to any other industry in need of aid, such as the automobile sector. Incidentally, the French car industry just received a 6.5 billion euro loan from the government. And the French state already gives 1.5 billion euro in direct and indirect aid to the press each year. The Guardian asserted in January that "the public's trust in the media is at an all-time low in a climate where politicians rewrite their own interviews for publication and the president's powerful business friends, from construction to arms manufacturing, own several major papers or TV stations." Which does not really sound like ideal circumstances for the government to get further involved in the media. It is too early to assess the effects of the bailout on newspapers, though it seems to have been received favourably by editors.

UK's regional focus

Another country where public trust in the media is at an all time low is the UK. Research by the Media Standards Trust revealed on 9 February that only 7% of the public trust national newspapers to behave responsibly. "Without urgent reform we believe that self-regulation of the press will become increasingly ineffective at both protecting the public and promoting good journalism and, without prompt action, there is real danger that it will become increasingly irrelevant," said Martin Moore, director of the Trust. The report calls for government intervention to ensure press accuracy and to limit intrusion on people's private lives. But would such government intervention be accompanied by financial aid?

In response to Sarkozy's announcement of the French plan, a spokesman for publisher Trinity Mirror said: "We don't believe that direct subsidies are a safe or sensible way forward. There are two easy things for the government to do. The first is to indicate that they will intervene and allow consolidation of regional newspapers on public interest grounds. The second is to return to using local newspapers for public notices and public sector job advertising." Many papers have called for changes to competition regulations in the local and regional sectors to more easily facilitate mergers, and the UK's Office of Fair Trading has confirmed it is to launch a full consultation on the local media ownership regime next month. Guardian editor Alan Rusbridger went a step further and raised the question of public subsidies for newspapers in November 2008, arguing that as broadcasters compete for government funding, why shouldn't local newspapers too? "There has never been less certainty about the future of local news in this country," he said. Roy Greenslade, amongst others, criticised this view, saying that information should not all be funded "through the mechanism of the state."

American opposition

Across the pond in the US, Connecticut legislators sparked debate at the end of 2008 by petitioning the state government to help local papers whose publisher Journal Register said it could not afford to keep them open any more. Journal Register has been forced to close 'dozens' of newspapers in recent months. Connecticut's Department of Economic and Community Development is offering tax breaks, training funds, financing opportunities and other incentives for publishers, but not cash. According to economic development commissioner Joan McDonald, Connecticut does not see trying to find a buyer and offering tax breaks as exerting influence on the press. In January, the publisher of the Philadelphia Inquirer and Daily News were in discussions with Pennsylvania Governor Ed Rendell about getting the two largest state employee pension funds to help bail out the papers.

But there has been considerable opposition to any such notion, as could be expected in a country which prides itself on its free market attitude. The Wall Street Journal asserted that a newspaper bailout was "the worst bailout idea so far," and stressed that "independent journalism is valuable, but only if it is truly independent."  Editor & Publisher editors warned that although it could be tempting to seek government assistance, "Uncle Sam's purse comes with lots of strings attached." Paul Janensch, a journalism professor at Quinnipiac University in Connecticut, and a former reporter and editor, commented "you can't expect a watchdog to bite the hand that feeds it."

There is already some unobtrusive government assistance to American newspapers, for example the US Postal Service has offered discounted postage rates. Also, several cities have papers running under Joint Operating Agreements, created following the congressional Newspaper Preservation Act of 1970 to keep competing urban dailies viable despite circulation declines.

Can a bailout be justified?

It is possible that other European countries will follow the French example, but an American bailout seems to be extremely unlikely. The British people are used to the idea of public funding for news, given the prevalence of the BBC, so maybe they would be more open to the idea of more government subsidies. But it could also be argued that given the major presence of the BBC, there is enough government involvement in news already.

It is undeniable that as one of the main roles of the press in a democracy is to criticise the government, it must remain entirely free of any government influence, and there is always the risk that government support could lead to influence. The idea of the press relying on the government to any extent is extremely unappealing to many people. But another valid point is that given the importance to any democracy of an active press, it is the government's duty to support the press in time of need.

Making sure that press friendly laws are in place, rather than offering a cash injection, is probably as far as the government should go, in 'normal' circumstances. But perhaps given the current problems plaguing the industry, some limited, short-term government assistance could be justified, to help papers make the necessary adjustments to working online, until an appropriate business model can be found, or until the economy starts to recover. In any kind of bailout, help should be given in such a way where there would be no risk that it could be considered as an attempt to influence. It would be essential to ensure that any help offered to newspapers was offered country-wide, and that it did not give any papers advantages over others. And government support should not be a substitute for innovation, and should not stifle entrepreneurship.

India's "second largest" English-language daily newspaper The Hindustan Times announces that it is undergoing a makeover process in the next few months that will feature transformations across all the sections, supplements as well as its Sunday magazine Brunch.

Mario R. Garcia will be in charge of the redesign. Garcia previously redesigned papers like The Miami Herald and The Wall Street Journal in the US and Sakaal Times and The Hindu in India.

"In a crowded print market, Indian publishers are increasingly relying on good design to help a new product stand out on the newsstand and keep the impatient young reader from navigating away from printed pages," wrote contentSutra.

Source: contentSutra

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."

The UK's daily Independent costs its publisher, Dublin-based Independent News & Media a "small fortune" every year, The Evening Standard's Roy Greenslade writes, and is likely to fail.

The way to save the paper is by taking a "revolutionary" step--going entirely online.

Foregoing all of its newsprint editions would be following the paper's tradition of "taking risks," according to Greenslade, and would change the face of newspapers in the UK.