This is my first post in (hopefully) a series of posts that will help get my “crazy” thoughts about the future of news and the future of newspapers out there. The more I talk to people in the industry the more I’m convinced I am not alone with these thoughts – it just seems that only the new media people are blogging and tweeting their thoughts. There are multiple opinions on the future of news. These are my thoughts based on experience, conversations with stakeholders, and my gut.
1. Print Aint Dead
I won’t dwell on this point too much for fear I will lose you too soon but Editor & Publisher had a chart in their May 2010 edition from McKinsey and Co that has gotten little attention. Daily newspapers in the UK are seeing an amazing increase in interest from all age groups. According to the data, those in the age groups of 25-34 went from 51% being interested in newspapers in 2006 to 61% in 2009. Every age group saw an increase. This is remarkable. Stop the online presses: People aren’t anti-print. Let’s study what UK papers are doing and replicate.
2. 70% of your costs create 100% of your revenues
Publishers understand P&Ls. Most know that the new media dollars are the golden egg – not the goose. As you make tough budget cuts, it’s easy to look at printing and distribution costs and try to cut there. The problem is the printing and distribution is what makes your paper happen. Newsprint is what allows advertisers to have a significant message at a reasonable cost and the distribution is what makes that message powerful. Thinking we can generate 40-50% of our current revenues from an online-only product is foolish.
You and I know that most of your online revenues are generated by content produced either in print or by those reporters whose salary is really paid by the print revenue. If you didn’t have the income from the print product, would you really have the money to pay those online reporters?
One more thought: If you didn’t have the power of the printed press, would your online site be any different from a good blogger’s site? Our credibility and influence in the online marketplace comes from our presses.
3. The New Media Peeps have an agenda
We are talking billions of dollars here. I love it when new media people tell my customers that print is dead and they need to invest more in social media. Of course they do. That will be $50,000 for a new website, $1000/month in new media consultation and training, and a one-time set up fee of $2500. By the way, you will need a new website in 3 years (unless my cash flow is tight and I will pitch a redesign) and my follower guarantee is because I solicited your name. The people following you don’t really like you.
I really loved a recent City of Round Rock (home of Dell, Inc.) 2010 citizen survey that asked where people get their city news. This city’s Communication Department has done an outstanding job with new media and were on a 2010 SXSW interactive panel about it. They are doing it the best way a city can do it. Yet only 4% of the city’s citizens said they got their news through Social Media technology. Who was the number one independent single-source for news? A printed community newspaper (major bias here – full disclosure is that I own that paper) at over 60%.
I’m not saying that new media isn’t important. I use it and my company uses it. I’m just saying that it is usually the print medium that takes the budget fall. It’s an easy sell and you can’t blame the new media people from finding the dollars where they are easier to pull from. Why is it easier to pull from print? More on that later….