The Experience in Other Industries
Disruptive innovations (such as the Internet) attack existing f rms by leveling
three potentially lethal blows to:
The Experience with Newspapers
The Internet has attacked the business models of traditional community
newspapers by f rst attacking cost, then siphoning of customer revenues.
Four Ways Newspapers Are Disadvantaged:
1. Print advertising has fallen to 1950s levels
2. High f xed costs of printing and distributing
3. Habits and expectations of current and future readers shifting rapidly
(PEW, UNC research)
4. Competition is tough and getting tougher
Developing a 21st century def nition
of “community newspapers,” based
on mission not circulation:
National Newspapers -3
11,0 0 0
Metro & Regionals -87
Newspapers must respond with a
three-pronged strategy approach:
Destroyed barriers to entry
Shed legacy costs associated
with print-only era
Siphoned of readers Rebuild community on many platforms
Aggressively pursue new
W hat we know about shedding
• Internet attacks distribution costs directly
• Value comes from content creation and aggregation
• Cost drivers should be value drivers
• Print/Distribution Schedule
• Staf ng/Outsourcing
Shedding costs frees up funds for investment.
W hat we know about building
community on many platforms
• Our customer habits are changing rapidly
• We must not alienate our loyal readers during the
• Newspapers must cover geographic
communities and build communities based on
Building community on many platforms is key to pursuing
W hat we know about pursuing
• Our advertisers are confused and look to us for answers.
• Local newspapers still best advertising mediums for
most local businesses.
• By combining two or more mediums, advertisers
signif cantly increase reach and ef ectiveness.
• There needs to be a new sales strategy.
• Rate Card
Newspapers need to position themselves as a
It’s tough keeping three plates
SUCCESSFUL NEW SPAPERS ASKED THE QUESTION:
If we were building this paper t oday, how would we do it?
• How would we look to our customers, employees and shareholders?
• At what processes and procedures would we excel?