By Dan Kennedy • The press, politics, technology, culture and other passions

Tag: David Carr

Another round in the paid-content debate

Having recently regaled us with the flawed tale of a community newspaper that refuses to publish its content online, New York Times media columnist David Carr is back — this time with a suggestion that what we need is “an iTunes for news.”

Carr’s thesis is that news organizations can no longer afford to give away their content. But, as he acknowledges in his lament about the arrested state of online advertising, they’re not giving it away — or, at least, they don’t mean to. Rather, they’re failing to sell enough advertising to pay for their journalism. That’s a problem, but it’s not the same problem.

Carr knows as well as anyone that a good deal of what you pay for when you buy a newspaper doesn’t contribute anything to the bottom line. You’re paying for paper, presses, maintenance to those presses, distribution and — yes — the salaries of some good, hard-working people who won’t be needed if and when we move into a Web-only environment.

Given that, news organizations should theoretically be able to come up with an online version that pays for itself, or even turns a profit, without charging for access. That’s what national and local television newscasts do, and the model worked even better some years ago, when those newscasts were deeper and meatier than they are today. That’s what National Public Radio and its affiliate stations do, raising money directly from listeners in the form of contributions and from corporations in the form of advertising — uh, sorry, “underwriting.”

The problem with online news today is threefold: (1) sites like Craigslist and Monster.com have taken away much of the advertising that news orgs might have been able to sell; (2) the recession has halted the growth of online (and print) advertising; and (3) newspaper companies are staggering under so much debt that they need a rate of return that would be unrealistic even in a more favorable economic environment.

I’ve learned a lot over the past few years from Lisa Williams, who founded H2otown to cover her community of Watertown and now heads up Placeblogger to track community Web sites around the world. One of the most important is this: the future belongs to the small and the swift, and journalists — especially young journalists — ought to think of their careers the way tech workers do. Today’s journalists will probably live a rather nomadic existence, moving from start-up to start-up as we all try to figure out where the news business is going and where there might actually be money to be made.

Two cases in point.

Last week Politicker.com, a promising project whose goal was to expand into a network of 50 state-based sites, more or less went out of business, cutting back to just New York and New Jersey. The Massachusetts site is gone (though still up). Its blogger-journalist, Jeremy Jacobs, has taken a job at The Hill.

Politicker’s national managing editor, James Pindell, who blogged the New Hampshire primary for the Boston Globe’s Boston.com site, and who is himself a pioneering online journalist, is out of a job, although I can’t imagine he won’t get scooped up by someone very soon.

I’m not sure what happened. It could be that Politicker’s business model — getting advocacy groups (i.e., lobbyists) to buy ads in order to reach the intended audience of inside players — was not realistic. It could be that the model was brilliant but the timing was bad. In any case, the cycle of destruction and creation continues.

Because, this week, the long-anticipated GlobalPost.com makes its debut. Headed by New England Cable News founder Phil Balboni and former Boston Globe foreign correspondent Charles Sennott, the site is aimed at covering international news at a time when most traditional news organizations are cutting back.

It’s hard to imagine a more heartening development in journalism. And, yes, David Carr would rightly point out that GlobalPost plans some subscription-based services.

In fact, there may be a place for some pay services in online journalism, although I suspect it will be rare. Carr cites the Wall Street Journal, but people will pay for the specialized financial information to which a Journal online subscription gives them access. Sorry, but the Times, good as it is, doesn’t offer that.

Likewise, some people will pay to have their favorite newspapers downloaded onto a device like the Amazon Kindle, a step up in convenience and readability in comparison to the typical laptop.

As we move rapidly into the post-newspaper era, we’re going to see all kinds of experiments — mostly free, some subscription-based, most of which will fail, a few of which will succeed and serve as models for the industry.

The one thing that won’t work — and I think Carr would acknowledge this if it were put to him directly — is the notion that newspapers as we have come to know them will somehow be able to charge for their everyday content. That horse left the barn 10 years ago, and it’s not coming back.

Photo (cc) by David Muir and republished here under a Creative Commons license. Some rights reserved.

The wrong solution to the wrong problem

No doubt David Carr’s column in today’s New York Times is going to get a lot of attention. Carr takes a look at the triCityNews of Monmouth, N.J., a small alternative weekly that is thriving, supposedly because it doesn’t put any of its content online.

I don’t have a fully formed reaction, but I do have some observations that should provide some context.

  • It’s hardly a secret that small newspapers are still making money, especially if they haven’t been burdered with the crushing debt that chain ownership often brings. Nor does putting content online have much of an effect on the print circulation of small papers. The triCityNews would probably be doing fine even if it had a robust Web site — especially since the print edition is free.
  • Large papers aren’t doing as badly as you think, either. Tribune Co.’s headline-grabbing bankruptcy was due entirely to the $13.6 billion in debt it’s carrying, the result of two ill-conceived mergers. In fact, the company’s newspapers, including the Los Angeles Times and the Chicago Tribune, would be operating at a profit were it not for the debt.
  • The most lucrative part of any newspaper, large or small, used to be its classified-ad section. That’s gone forever, mainly because of Craigslist, which will continue to thrive regardless of the triCityNews’ online strategy.
  • Even so, free online editions may slowly be moving toward profitability. Jeff Jarvis reports that the LA Times’ Web site revenue is greater than the cost of its news-gathering operation, suggesting that the print edition could be scrapped at some point. I suspect it’s not quite that simple. But it’s not hopeless, either.

Carr wants that newspaper executives to rethink the whole notion of putting their content online for free. Carr’s a sharp guy, but in this case I think he’s proposing the wrong solution to the wrong problem.

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