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News business models:
What can we try next?
 Trends in Communication & Information Technology
                    JOUR 4871-003
Why a new business model for news is needed
Why a new business model for news is needed
Why a new business model for news is needed



  Most U.S. print newspapers will be gone in five years

  “Circulation of U.S. print newspapers continues to plummet, and we
  believe that the only newspapers in America that will survive in print
  form will be at the extremes of the medium – the largest and the
  smallest,” said Cole. "It’s likely that only four major daily
  newspapers with global reach will continue in print: The
  New York Times, USA Today, the Washington Post, and the Wall Street
  Journal. At the other extreme, local weekly newspapers may
  still survive, as well as the Sunday print editions of
  metropolitan newspapers that otherwise may exist only
  in online editions.”
In-class team exercise:
You are publisher of the San Francisco Chronicle, and it’s in financial trouble. You
are in charge of designing a new business model for the digital age.
                         This is your current situation:

   Print edition 7 days a week                Editorial staff down half from
   ads, home subscriptions, retail            highest level
   sales, retail ad inserts                   Print circ.:
   SFGate.com website:                        2012 = 229K M-F
   free access, ad supported                  2000 = 457K M-F
   49ers Insider digital tablet               Classified $ down 70% since 2000
   magazine                                   Ad revenue: typical of industry...
   free to print subscribers; $4.99/
   season for others
   Mobile apps
   free to download, free content,
   ad supported
   E-edition
   subscriptions
In-class team exercise:
What will your business model look like and consist       Team members:
of? Here’s a list of most available revenue strategies    _____________________
available to save the San Francisco Chronicle:            _____________________

   SFGate.com website:                           Paid print edition, 7 days a week
      Free content                               Reduce to 3 print editions a week
      Display ads                                Print only weekend/Sunday edition
      Targeted/contextual ads                    Shut down print edition (online only)
      Sell memberships (free content,
                                                 Syndication
      member benefits)
      Hard paywall                               Apply for foundation grants (big
                                                 investigative projects)
      Partial hard paywall (some free content)
      Metered paywall                            Smartphone/tablet app (free)
      Porous paywall                             Smartphone/tablet app ($)
      Digital subscription (web, tablet,         Lay off staff
      smartphone access)                             Who? _____________________
      Niche paid ($) websites (e.g., NFL)        Hire more staff
      Sell by article/video (micropayments)          Editorial
      E-commerce (sell stuff)
                                                     Tech, developers, programmers
      Join web news subscription package ($)
                                                 Do social-media marketing for local
      Other _____________________
                                                 businesses
                                                 Other _____________________
Free news websites
Hard paywall
Semi-hard paywall
Metered paywall




10 free articles per month - then you’re asked to pay
Porous paywall




         Clicking to NYTimes.com article from these sources
doesn’t count against your 10-articles-per-month limit (non subscribers)

                Facebook
                Twitter
                Blogs, Tumblr, etc.
                Google web search
                Google News
                Pretty much, a link to NYT article from
                anywhere (other than NYTimes.com)
News membership
Online only (dump print edition)




Became online-only in March 2009; drastically reduced news staff
3 print editions a week | digital 7 days




   Reduced to 3 print editions a week this week (Sept. 29, 2012)
Paid-subscription news aggregation



                  This service didn’t survive.
 Launched in January 2011 with $12 million in funding from the
       New York Times, Washington Post and Gannett.

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TKclass: News business models

  • 1. News business models: What can we try next? Trends in Communication & Information Technology JOUR 4871-003
  • 2. Why a new business model for news is needed
  • 3. Why a new business model for news is needed
  • 4. Why a new business model for news is needed Most U.S. print newspapers will be gone in five years “Circulation of U.S. print newspapers continues to plummet, and we believe that the only newspapers in America that will survive in print form will be at the extremes of the medium – the largest and the smallest,” said Cole. "It’s likely that only four major daily newspapers with global reach will continue in print: The New York Times, USA Today, the Washington Post, and the Wall Street Journal. At the other extreme, local weekly newspapers may still survive, as well as the Sunday print editions of metropolitan newspapers that otherwise may exist only in online editions.”
  • 5. In-class team exercise: You are publisher of the San Francisco Chronicle, and it’s in financial trouble. You are in charge of designing a new business model for the digital age. This is your current situation: Print edition 7 days a week Editorial staff down half from ads, home subscriptions, retail highest level sales, retail ad inserts Print circ.: SFGate.com website: 2012 = 229K M-F free access, ad supported 2000 = 457K M-F 49ers Insider digital tablet Classified $ down 70% since 2000 magazine Ad revenue: typical of industry... free to print subscribers; $4.99/ season for others Mobile apps free to download, free content, ad supported E-edition subscriptions
  • 6. In-class team exercise: What will your business model look like and consist Team members: of? Here’s a list of most available revenue strategies _____________________ available to save the San Francisco Chronicle: _____________________ SFGate.com website: Paid print edition, 7 days a week Free content Reduce to 3 print editions a week Display ads Print only weekend/Sunday edition Targeted/contextual ads Shut down print edition (online only) Sell memberships (free content, Syndication member benefits) Hard paywall Apply for foundation grants (big investigative projects) Partial hard paywall (some free content) Metered paywall Smartphone/tablet app (free) Porous paywall Smartphone/tablet app ($) Digital subscription (web, tablet, Lay off staff smartphone access) Who? _____________________ Niche paid ($) websites (e.g., NFL) Hire more staff Sell by article/video (micropayments) Editorial E-commerce (sell stuff) Tech, developers, programmers Join web news subscription package ($) Do social-media marketing for local Other _____________________ businesses Other _____________________
  • 10. Metered paywall 10 free articles per month - then you’re asked to pay
  • 11. Porous paywall Clicking to NYTimes.com article from these sources doesn’t count against your 10-articles-per-month limit (non subscribers) Facebook Twitter Blogs, Tumblr, etc. Google web search Google News Pretty much, a link to NYT article from anywhere (other than NYTimes.com)
  • 13. Online only (dump print edition) Became online-only in March 2009; drastically reduced news staff
  • 14. 3 print editions a week | digital 7 days Reduced to 3 print editions a week this week (Sept. 29, 2012)
  • 15. Paid-subscription news aggregation This service didn’t survive. Launched in January 2011 with $12 million in funding from the New York Times, Washington Post and Gannett.