journalism and the move to new media
DESCRIPTION
final project for an MBA class about the Media, Entertainment and Sports industriesTRANSCRIPT
Journalism and the Move to New Media
Justin StevensTom McGovern
The Shift from Paper Media
Paper media readership is down across the board
The Wall Street Journal is the only paper publication that has maintained sales
o As of 4/09, U.S. newspaper print circulation down 7.0% y/y Source: NY Timeso New York Post was the worst with a 20.6% dropo NY Times considering charging for online content
o Print paper sales for WSJ were up 0.6% y/y as of 4/09 according to the same NY Times articleo Online subscriptions often used in conjunction with paper
Recurring Themes
Comparison to Entertainment and Sports: Faced with the same challenge of finding
a new business model that incorporates new technology while preserving the quality of content
Quality issue is especially concerning in this industry because a free and unbiased media is a pillar of any democracy
The Rise of Electronic Media
Online readership of media publications is on the rise
Electronic delivery is also an increasingly popular way to deliver content
o Newspaper website audiences rose 10.5% y/y as of 4/09 - New York Times
o Examples include investment analyst reports and trade publications
eReaders – The Next Generation of Media ?
Kindle allows readership in electronic format of:
•Books•Magazines•Newspapers•Trade Publications
Less than a year after its debut, the Amazon Kindle had sold 240,000 units despite a retail price of $359-$399, generating revenue of $86 million to $96 million – ARS Technica
Apple’s iPad
More interactive than Kindle or nook, with extra features such as color screen and video
Many hope it will save the industry by offering better mobile web-browsing and apps for newspapers and magazines
Watch demonstrations of the Popular Science and Wall Street Journal apps
Lessons from Television… “Newspaper are dying; the music industry
is still yelping about iTunes; book publishers think they are next. Yet one bit of old media seems to be doing rather well. In the final quarter of 2009 the average American spent almost 37 hours a week watching television. Earlier this year 116m of them saw the Super Bowl – a record for a single programme. Far from being cowed by new media, TV is colonising it.”
—The Economist, “The great survivor.” May 1, 2010.
Lessons from Television… Accept change and get
ahead of it “TV Everywhere”
Cable providers’ attempt to get ahead of online video content
Offer cable subscribers access to free content on multiple platforms including computers and Smartphones
Retains current customers and existing revenue streams by offering more viewing choices
Lessons from Music…
Create a more appealing physical product that acts as a “Gateway” to other platforms
i.e. Deluxe edition CDs or albums packaged with t-shirts, DVDs, concert tickets, etc.
Magazines are adopting a similar strategy, emphasizing the strengths of print editions, including glossy color photos and more effective and lasting ads
Example: The Smashing Pumpkins are releasing a new 44-song album, one track at-a-time for free online. Simultaneously, the band is selling limited edition collectors’ EPs for every 4 new tracks in a silk-screened wooden box with a CD, a vinyl 7” and a hand-carved obelisk.
“News Everywhere”
The answer for newspapers and magazines could be a combination of the TV Everywhere and Gateway concepts
Offer a single subscription to customers that gives them access to print edition as well as content on their PCs, Smartphones and other platforms
Utilize the physical product’s strengths re: pictures, in-depth articles and longer time in front of consumers’ eyes
Revenue streams: Subscriber base Mix of print and online
advertisements
Sources
The ideas in this presentation drew from the following sources: “Loving touch: Media companies try to breathe
new life into physical products.” The Economist. Online. April 8, 2010. http://www.economist.com/business-finance/displaystory.cfm?story_id=15871885
“The great survivor.” The Economist. Print edition. May 1, 2010. Pg. 12-13.
“Magazines Team up to Tout ‘Power of Print.’” Wall Street Journal. Online edition. Accessed 5/02/10. http://online.wsj.com/article/SB10001424052748703940704575090120113003314.html