Transcript of "New Media Sustainability: Challenges & Trends"
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcNew Media Sustainability:Challenges & TrendsMarkus IckstadtDirector of News, Streamworks InternationalNew Media Sustainability ConferenceMay 11, 2013, Skopje, Macedonia
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcChallenges:• “The difficulties of monetizing digitalcontent remain a key problem of thefunding of professional journalism online…The tendency instead is for old mediaproducers to stick to old habits, rather thanembrace the opportunities and face up tothe challenges of digitization.” – (“MappingDigital Media: Macedonia – A Report by TheOpen Society Foundations, 5 June 2012)
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcChallenges:• Until 2009, Macedonian newspaperpublishers reported no significant changesin circulation to advertising agents. In thefirst half of 2009, they finally acknowledgedthe fall of readership and claimed only one-third of their previous numbers.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcChallenges:• In 2010, TV in Macedonia remaineddominant with 77.3 percent of thepopulation using it as their primary newssource.• The most dramatic change has been the riseof the internet as a primary news source,now eclipsing newspapers (35 percent and34 percent respectively), with radio rankingfourth with 13 percent.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcWhat may this be telling us?• Audience is not the problem• But current CPM revenues alone cannotreplace circulation• Pure reproduction or repurposing of printmedia content = Lack of engaging content• Workload and lack of attention/resourceneeded for new media production =copyright rules are often disregarded
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcThe “Silver Lining”:• As news brands in combination with theirinternet extensions, newspapers are stillthe second most accessed news source forthe public.• If print editions are to be considered inisolation, they would fall to third placebehind the internet. Readers of print mediain Macedonia are concentrated in youngerand middle age groups
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcThe “Silver Lining”:• Demographics show a relatively highpreference for daily newspapers amongthose aged 14–32 years and 42–59 years• advertisers have not yet followedaudiences to a significant degree and byand large remain loyal to traditional media.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcMonetization models:“The soft pay-wall”:• NY Times has led the way in the US with its“metered pay-wall” model, which allowsreaders to access 20 free stories a monthwithout a digital subscription• The Washington Post in March announcedit would follow, allowing access to 20 freearticles per month - articles accessed viasocial media and external search engineswill not count toward the free limit
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcMonetization models:“The soft pay-wall”:• loopholes in the pay-wall representstrategy, not a mistake. And the Times isrelying more on subscribers to pay the bills:Advertising was down in 2012• “If you like it so much that you’re willing todo a hack around a URL just to get a peekunder our dress … eventually you’re goingto give us some money.”- David Carr, Media Correspondent in the Businesssection of the NYT
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcMonetization Models:“The Restrictive Pay-wall”:• In the UK, a restrictive pay-wall is beingblamed for a fall in circulation for NewsInternational’s The Times, which rankedlast behind competing general newspublications- The National Readership Surveys PADD report
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcMonetization Models:“The restrictive Pay-wall”:• Restrictive pay-walls are not social-media friendly: Articlesbehind its pay-wall cannot be shared with non-subscriberson Twitter and Facebook.• Circulation drops suggest this audience may be one thatnewspapers can’t afford to lose.• The restrictive pay-wall is often seen as a return to the“traditional news model” of generating revenue.• If enough newspapers shift away from advertising revenueand instead choose to sell their content directly to thereader, it could mean a dramatic shakeup in the currentnews distribution model, which relies heavily on search-engine traffic.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcCumulative Audience Growth:• If pay-walls become the norm, readers will have to makedecisions about which publications get their money, andtheir loyalty.• Latest figures do underline the popularity of news-brandsand their relevance to consumers, despite the well-documented digital transition and changing consumptionhabits.• In the UK quality sector in particular, readerships aresignificantly boosted by website users, with all of the opensites enjoying lifts between 59% and 188%:
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcCumulative Audience Growth:Mid-market Daily Express 3,638 483 4,121 +13.3Daily Express/Sunday Express 4,485 480 4,965 +10.7Daily Mail 11,289 8,729 20,018 +77.3Daily Mail/The Mail on Sunday 13,951 8,068 22,019 +57.8 Popular Daily Mirror 8,252 2,781 11,033 +33.7Daily Mirror/Sunday Mirror 9,996 2,665 12,660 +26.7Daily Mirror/Sunday Mirror/The People 10,639 2,640 13,279 +24.8Daily Record 1,667 821 2,488 +49.3Daily Record/Sunday Mail 2,024 802 2,826 +39.6Daily Star 3,927 414 4,341 +10.5Daily Star/Daily Star Sunday 4,408 412 4,821 +9.3The Sun 15,213 2,205 17,418 +14.5
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcVideo Pre-roll Revenue-Sharing:• “80% of internet users worldwide watch online video”(Video Aptitude)• However, many sites wanting to introduce video faceseveral obstacles:– Cost of sourcing the content– Cost of production– Cost of hosting / bandwidth• = less video being available online in the crucial first stageof development of online journalism: trying out newcontent to attract new audiences online.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcVideo Pre-roll revenue-sharing:• 11 years ago a company in the Netherlands called zoominpioneered a business model aimed at:– breaking down such barriers and concerns– facilitating the first stage of online video development for newsweb sites.• How?– aggregate video content from producers– take care of production– make it available to web sites on a 3-way revenue share basis:one third for the site, one third for zoom in and one third for thecontent originator, such as AP.• model is now mature and operates in 26 markets,producing in 14 languages, and serving over 1600 websites.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdc“The Sun-filled Uplands of Opportunity:”• multimedia-production:– interactive story-telling that engages theaudience,– maximises current technologies– Creates unique content– Maintains and builds on existing brand loyalty– Drives revenue through pay-walls and/or CPMs
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcThe Result?• By comparison, in Britain last year, peoplewho visited newspaper websites onaverage spent only around one and a halfminutes looking at them per day
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcA way forward?• Believe in the value of the brand and thedestination site• Protect your copyright but embrace thepower of social media to drive back traffic• Be creative, not restrictive, with paywalls• Produce unique multimedia content tobuild brand valueThis project was funded, in part, through U.S. Embassy grant. The opinions, findings and conclusions or recommendationsexpressed herein are those of the Author(s) and do not necessarily reflect those of the Department of State.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcThe Result?• In the 6 days following Snow Fall’s launchon December 20th, 2012, it had receivedmore than 3.5 million page views and 2.9mvisitors, nearly a third of whom were newvisitors to the Times web site.• They were quickly hooked: users spentaround 12 minutes, often more, engagedwith the project.
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcA way forward?• Work with streaming specialists to addvideo at manageable cost• Use video in a way that returns significantrevenue and protects the brand• Investigate sponsorship models for content• Become less dependent on SEO and bannerCPMs
#mediumi #медиумиwww.metamorphosis.org.mk/nmdcA way forward?Keep and grow your audience and revenuesThis project was funded, in part, through U.S. Embassy grant. The opinions, findings and conclusions or recommendationsexpressed herein are those of the Author(s) and do not necessarily reflect those of the Department of State.
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