I had the pleasure of speaking with social media consultant Rob Paterson last Wednesday. In 2005, Rob was instrumental in fostering the cultural change at NPR that resulted in a new organizational approach to journalism. Through one year of meetings and group exercises, NPR changed is focus from broadcast to engagement. If you have ever listened to their numerous and high-quality podcasts, you have witnessed the fruits of the change.
Our conversation ranged over many topics, but our shared passion for grappling with "the future of news" kept us on task.
We agreed that newspapers as an institution are in trouble, at least partially as a result of their emphatic defense of the professional journalistic culture. I then asked if there are any newspapers that can make the cultural changes you advocate? Rob's response was, "It's too late!" They would need to disengage from print and reengage with digital media in order to remain relevant. No newspapers have the financial cushion to survive this transition.
To describe the reforms to date at newspapers, Rob used an analogy to naval warfare at the time the steam engine was being developed. Ships were built in modern styles with modern materials, but still engaged in battle at extremely close range. We can all imagine what would happen if a modern battleship waited until it was 10 feet from its target to fire. The New York Times seems to have all the modern trappings, but the organization is still set up to produce high-quality, high-cost journalism supported by print revenue sources. A quick and dirty analysis of the New York Times 2008 Annual Report revealed that online advertisements only represent 17% of their ad revenue 10% of total revenue. This information was not presented, so I derived it using revenue figures from 2007 and 2008 and the percent change of print ads (Down 16.7%) and online ads (Up 8.7%).
Our talk then turned to the future... the fun part. While most newspapers are no longer producing the content they once were, news has not gone out of style. This leaves us with a lowered barrier to entry for other players. In a digital world of infinite content, content is no longer what is valuable; finding relevant information is. The NY Times is still a great website for a snapshot of world events, but it could be better if they incorporated more content not produced in-house. New news companies will emerge that both provide more high-quality content and have their costs in line with internet revenues. By leveraging other companies with extensive resources who stand to gain from the new order (Read: Google and Apple), they can gain a strong foothold.
I immediately thought of the Lawrence, KS website that uses an automated technology to gather and organize most of their information. Just compare the website with the LJ World, think of massive difference in cost structures, and guess who will be around in 5 years. I predicted it will be the smaller cities that lose their news sources first that will develop the new way of doing business. Rob's response was, "The most interesting place in Chaos is the edge." That's exactly where I want to go.
Thursday, January 21, 2010
Tuesday, January 19, 2010
To a hammer, everything looks like a nail
In my first few weeks of research, I have spoken with a diverse set of people about my project. My only conclusion thus far about the future of news is that everyone sees it going in a different direction.
My friend who is interested in machine learning started talking really fast about how data mining can be used to automate news collection (django). To see an application of that technology, go see what's happening in Lawrence, KS.
My TA who is pursuing his PhD in economics pulled up an article that creates a mathematical model to describe whether or not the internet is cannibalizing print business. That particular article predicts that the two channels can be complementary, but two facts lead me to discount their findings: 1) It was written in 2001 and 2) newspapers have run into serious financial trouble in the interim.
To a veteran news executive Alan Mutter, aka the newsosaur, the intersection of news and technology is viewed through a lens of institutional preservation or lack thereof. The postings mostly document the ways newspapers can leverage technology to remain relevant. But he does note in this post, well actually a repost of a few comments, that there are certainly those see the newspaper industry as an obstacle and not the answer. As I read blog after blog, often the most instructive pieces can be found in the comment section because they come from consumers, not producers. He decided to reject all anti-media posts after this one, and I think that is a shame. I hope that people will react as passionately and honestly on this blog.
The Nieman Journalism Lab produces content from multiple sources of very smart people all looking for solutions. The about us page lays out an approach that I can really get behind: solutions focused and optimistic. I do think they would do well for themselves to include more non-journalism affiliated contributors though who have a different perspective on the industry.
The answers to lots of questions about the future of news/information will likely come from those who consume the information instead of those who produce it because the line has blurred. Barriers to entry have been lowered, adoption can be viral, and a great idea has lots of promise to transform into new institutions (just ask Google).
It is hard to leave one's bias at the door... but I hope to do just that with this blog. By listening to smart people from many disciplines, a more complete picture will form because it includes all potential stakeholders... everyone!
My friend who is interested in machine learning started talking really fast about how data mining can be used to automate news collection (django). To see an application of that technology, go see what's happening in Lawrence, KS.
My TA who is pursuing his PhD in economics pulled up an article that creates a mathematical model to describe whether or not the internet is cannibalizing print business. That particular article predicts that the two channels can be complementary, but two facts lead me to discount their findings: 1) It was written in 2001 and 2) newspapers have run into serious financial trouble in the interim.
To a veteran news executive Alan Mutter, aka the newsosaur, the intersection of news and technology is viewed through a lens of institutional preservation or lack thereof. The postings mostly document the ways newspapers can leverage technology to remain relevant. But he does note in this post, well actually a repost of a few comments, that there are certainly those see the newspaper industry as an obstacle and not the answer. As I read blog after blog, often the most instructive pieces can be found in the comment section because they come from consumers, not producers. He decided to reject all anti-media posts after this one, and I think that is a shame. I hope that people will react as passionately and honestly on this blog.
The Nieman Journalism Lab produces content from multiple sources of very smart people all looking for solutions. The about us page lays out an approach that I can really get behind: solutions focused and optimistic. I do think they would do well for themselves to include more non-journalism affiliated contributors though who have a different perspective on the industry.
The answers to lots of questions about the future of news/information will likely come from those who consume the information instead of those who produce it because the line has blurred. Barriers to entry have been lowered, adoption can be viral, and a great idea has lots of promise to transform into new institutions (just ask Google).
It is hard to leave one's bias at the door... but I hope to do just that with this blog. By listening to smart people from many disciplines, a more complete picture will form because it includes all potential stakeholders... everyone!
Thursday, January 14, 2010
Inspiration and Evolution
Inspiration:
I am a self-admitted New York Times junkie. I read anywhere from 5-25 articles on nytimes.com everyday. I place a high value on this information... For a graduate student, high value = about $5. But with all the newsroom cuts and talks of lost revenue from subscriptions and ads, I know that the Times could use that $5. Eureka! The solution to all their fiscal problems lay in an optional online payment system. Simple... Right?
Not so fast.
Evolution:
At each stage of my research, the concept grew and grew. New online news outlets without traditional newspaper cost structures, competing non-advertising revenue sources, and internet consumer behavior all entered the picture. I came to realize that coming up with a short-term solution to newspaper finances should not be my focus.
Instead, I chose to join the network of people who appreciate the truly disruptive nature the internet has had on our society. Professional journalism still has a role to play in our society, but how will it be created, financed, and delivered? This blog is my attempt to make some sense of the changes taking place, contribute to the analysis of new tools and solutions, and to engage with people who have already staked out a leadership role in this growing community.
I am a self-admitted New York Times junkie. I read anywhere from 5-25 articles on nytimes.com everyday. I place a high value on this information... For a graduate student, high value = about $5. But with all the newsroom cuts and talks of lost revenue from subscriptions and ads, I know that the Times could use that $5. Eureka! The solution to all their fiscal problems lay in an optional online payment system. Simple... Right?
Not so fast.
Evolution:
At each stage of my research, the concept grew and grew. New online news outlets without traditional newspaper cost structures, competing non-advertising revenue sources, and internet consumer behavior all entered the picture. I came to realize that coming up with a short-term solution to newspaper finances should not be my focus.
Instead, I chose to join the network of people who appreciate the truly disruptive nature the internet has had on our society. Professional journalism still has a role to play in our society, but how will it be created, financed, and delivered? This blog is my attempt to make some sense of the changes taking place, contribute to the analysis of new tools and solutions, and to engage with people who have already staked out a leadership role in this growing community.
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