Reviewing the old business model / Proposing Web 2.0 strategies for online news publishing

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H. Iris Chyi
Assistant Professor
School of Journalism
UT Austin

Published in: Business, News & Politics
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  • Reviewing the old business model / Proposing Web 2.0 strategies for online news publishing

    1. 1. Reviewing the old business model / Proposing Web 2.0 strategies for online news publishing H. Iris Chyi Assistant Professor School of Journalism UT Austin
    2. 2. Today, let’s <ul><li>Rethink some of the problems in the current business model </li></ul><ul><li>Discuss potential Web 2.0 strategies </li></ul><ul><li>Identify needs for future research </li></ul>
    3. 3. From print to online <ul><li>Most U.S. newspapers are transitioning from print to online. </li></ul><ul><li>But, problems in the current model deserve attention. </li></ul><ul><li>Take the Statesman as an example: </li></ul>
    4. 4. Back in 1998 Source: Chyi & Lasorsa (2002) Newspaper Print penetration (%) Among all respondents (N = 818) Online penetration (%) Among Web users (n = 484) Online penetration (%) Among all respondents (N = 818) National Wall Street Journal 13 11 6 USA Today 12 14 8 New York Times 11 10 6 Regional Dallas Morning News 11 6 3 Houston Chronicle 9 6 3 Local Austin American-Statesman 74 30 18
    5. 5. 2005-2006 <ul><li>MediaMetrix report </li></ul>
    6. 7. Comparing 1998 - 2006 <ul><li>USAToday.com reached 14% of Austin Internet users in 1998; 5% in 2006 </li></ul><ul><li>NYTimes.com reached 10% in 1998; 6% in 2006 </li></ul><ul><li>HoustonChronicle.com reached 6% in 1998; 3% in 2006 </li></ul><ul><li>Statesman.com reached 30% in 1998; 28% in 2006 </li></ul><ul><li>Surprised? </li></ul>
    7. 8. <ul><li>The impact of information oversupply is reflected not only in print circulations but also online readerships. </li></ul><ul><li>A typical visitor spent ____ minutes browsing NYTimes.com in Oct. 2007 (MediaMetrix). </li></ul>S 1 S 2 S 3 Information surplus D P 1 P 2 Q 1 Q 2 Price Quantify demanded
    8. 9. <ul><li>Austin, 1998 </li></ul><ul><li>Substantial overlap between online and print readerships </li></ul>
    9. 10. Online and print readerships <ul><li>In 1998, 83% of the online visitors also read the print edition of the Statesman (during the past week). </li></ul><ul><li>Nationwide, 69% of Internet news users read newspapers regularly (Pew, 2004). </li></ul><ul><li>Overall, online readers are more likely to read the print edition, and vice versa. </li></ul><ul><li>So everything looks great – online and print editions complement each other. Really? </li></ul>
    10. 11. Question <ul><li>“ Imagine that you are provided with both print newspapers and online newspapers with the same news content and at the same price . Which would you prefer?” </li></ul>
    11. 12. Back in 1998, here <ul><li>Almost 80% said they would prefer the print format; 20% would prefer the online edition. </li></ul><ul><li>This was also true in Hong Kong (2002). </li></ul><ul><li>Is this still the case today? </li></ul>
    12. 13. Issues that deserve a second thought <ul><li>Preference for print format </li></ul><ul><li>Cannibalization of online free offerings on print readerships insignificant </li></ul><ul><li>Subscription model not working for online news </li></ul>
    13. 14. <ul><li>The relationship between online and print editions is intriguing </li></ul><ul><li>One plausible explanation: Online news is an inferior good (in economic terms) </li></ul>
    14. 15. Strategies in the Web 2.0 era
    15. 16. Open access <ul><li>It took newspapers a while to allow search engines to index their articles. </li></ul><ul><li>Some still block users away with a registration process. </li></ul>
    16. 18. Video-Sharing <ul><li>YouTube reaches 12% of U.S. Internet users (2006). </li></ul><ul><li>It serves more than ___ video clips per day (2006). </li></ul><ul><li>While Viacom was suing YouTube, the BBC decided to partner with it. </li></ul>
    17. 19. Be blogger-friendly <ul><li>“ How many blog-links point to a paper, per thousand copies of print circulation” (LpkC) </li></ul><ul><ul><li>Christian Science Monitor - 134.90 New York Times - 63.08 Washington Post - 58.44 San Francisco Chronicle - 38.32 Boston Globe - 29.80 Seattle Post Intelligencer - 18.56 New York Post - 12.48 LA Times - 11.21 </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><ul><li>Charleston Post and Courier - 0.06 New Hampshire Union Leader and Sunday News - 0.22 Middletown (NY) Times Herald-Record - 0.39 The Wall Street Journal - 0.40 Fort Myers News Press - 0.50 </li></ul></ul><ul><ul><li>Source: The Christian Science Monitor > The Wall Street Journal </li></ul></ul>
    18. 20. Think outside the box of news
    19. 21. Music vs. News <ul><li>What can online news learn from online music? </li></ul><ul><ul><li>Recent discussion about iTunes’ micropayment model in Time magazine is not new at all. </li></ul></ul><ul><ul><li>Anything else? </li></ul></ul>
    20. 23. Music vs. news <ul><li>“ The natural unit of music is the track.” </li></ul><ul><li>The natural unit of news is _______. </li></ul><ul><li>“ You can create a playlist for your music.” </li></ul><ul><li>Can we create a playlist for news? </li></ul>
    21. 26. Tagging <ul><li>Used in every blog, but not by most newspaper sites </li></ul><ul><li>A great tool for personalization </li></ul><ul><li>Digital order kills traditional ways of categorizing things </li></ul><ul><ul><li>Everything Is Miscellaneous: The Power of the New Digital Disorder </li></ul></ul><ul><ul><li>by David Weinberger </li></ul></ul>
    22. 27. Go “Hyperlocal” <ul><li>User-generated online local communities </li></ul><ul><ul><li>Neighborsgo.com (DMN) </li></ul></ul>
    23. 29. Go BEYOND local <ul><li>Information Advertising </li></ul>Long-Distance Local
    24. 30. Local vs. long-distance users <ul><li>Long-distance is a substantial market segment </li></ul><ul><li>The long-distance audience is your Long Tail! </li></ul>
    25. 31. Need research more so than ever <ul><li>Rational/empirical analysis of the situation/trends is important. </li></ul>
    26. 32. It is 2005, and you are the publisher of the New York Times... Should you launch the fee-based premium program TimesSelect?
    27. 33. It is 20__, and you are the publisher of the New York Times... China has the largest Internet population in the world. Should you launch a Chinese edition?
    28. 34. Important research areas for newspapers <ul><li>Information oversupply </li></ul><ul><li>Users’ choice-making process </li></ul><ul><li>Free paper as an alternative model </li></ul><ul><li>Opportunities outside the geographic market of the print edition </li></ul>
    29. 35. Thank you for your attention and thank the Statesman for providing great research opportunities for a graduate student 10 years ago.

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