[*NB: The idea of the collapse of newspapers is moving at the speed of light across the 'net. In the hour since I posted this opinion I came across multiple arguments, all very succinct. Here's one from David Eaves - Newspapers' Decline is a Sign of Democracy's Health not a Symptom of its Death. I will attempt to keep this piece updated as the conversation rolls out.]
Jay Rosen on the Huffington Post Investigative fund.
[Latest edit March 29th 12:17PM PST]
Having spent the last decade [at least] discussing the major label recording industry’s supreme mishandling of how its customers embraced the digital music file and how they quickly became savvy internet users sharing those files with millions of other users – basically penalizing the industry for scrapping the single and charging too much for an inferior product, the CD – my interest now turns to the fate of the newspaper industry.
There are some parallels across each of these industry’s woes but it is worth pointing out that the newspaper industry is not being penalized by its customers [readers] for doing anything wrong ala the music industry [weak overpriced product, suing its customers,] rather newspapers are victims of circumstance; technology, shifting reader habits and ubiquitous access in an increasingly mobile world. Unlike the music industry they were not late to the online game even though their initial foot-dragging suggested that like the music industry they would much rather wish the internet would go away.
I must give credit to the labels as I sense that they are beginning to find new routes to profits from music sales. At a recent music industry conference in Nashville I listened to Rio Caraeff, EVP eLabs at Universal Music Group, give the keynote speech. He lamented the loss of the experiential, tactile nature of recorded music when it came in its vinyl form [his father was a famous album sleeve director.] The digital file, he argued, had stripped the experience from the music – listening to music was now a flat and unemotional activity compared with holding a well-designed sleeve filled with images, lyrics and artwork. Because of this flat experience he predicted that there was no future for selling recorded music directly to music fans.
He mentioned one area of success for Universal; the advent of the video game. An all-encompassing experiential medium that included more than just the games – the games came with a community of like-minded people and music. They also generate millions of dollars especially through the subscription fees that are required for online gaming activity.
He also said “the browser is the new iPod.”
So, how does the newspaper industry embrace the browser, what does its “video game” look like?
Umair HaqueThe first thing that they must do is abandon the old business models as an idea. Those models can not be re-created for the web. As Umair Haque writes on the Harvard Business blog – “companies and investors focused on business models are simply applying yesterday’s obsolete logic to today’s novel problems.” He goes on to point out that nowadays it is about “making something valuable” – “When we can make valuable stuff, there are a plethora of business models to choose from, some old, some new, some untested, some tried and true. When we can’t, no amount of business model innovation can save us from implosion.”
Referring to Caraeff’s contention that the experience around music is what we relate to the most, why is it that newspapers, that are experiential and tactile, are struggling to maintain readership offline while attracting millions of readers online? Maybe it is just that news is not sexy. Or as Haque points out do they need to just keep providing “valuable stuff” and scrap old business models?
Here’s the quandary – newspapers have to shoulder the enormous burden of overhead required to run a newsroom that collects the news in the first place. What is clear is that the online advertising dollars for newspapers are not filling the gap in the loss of revenue that occurred in print editions – just as digital music sales are not replacing the sales of CDs. So should newspapers start to charge for access to their websites?
Clay ShirkyI have been following the thought leader and writer Clay Shirky via his web site and Jay Rosen, who teaches journalism at NYU, via Twitter. Both of these men have strong opinions about the future of news media, note news media not necessarily newspapers. At the recent SXSW Interactive conference that I attended, Shirky showed the audience a slide that read – the internet is the largest group of people who care about reading and writing ever assembled in history…. A simple and very accurate statement. We have ubiquitous and easy access to more text now than ever; it just needs to be filtered. Which is what newspapers always did for us – as the New York Times masthead proclaims still ‘All the news that’s fit to print.’
Should newspapers be allowed to die? What would replace them?
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