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It’s not about selling news, it’s about keeping customers


The new-look, paid-for Times website

The paywall debate has focused on how consumers might consume the news industry’s end product: news. “Will readers pay for news online?” “Will the industry survive this change?” “Won’t people just get it for free someplace else?”

These are the news industry’s Frequently Asked Questions right now. Even people that don’t believe in Rupert Murd och‘s pile-’em-high subscription strategy – free content activist Guardian News & Media to name one – want to know whether TheTimes.co.uk will be a success.

But paywalls do not sprout overnight, they need real planning. Just look at my old colleague Martin Stabe’s presentation at SIPA on the nuts and bolts of implementing subscriptions at Emap’s Retail Week magazine. So here are some other questions it might be worth asking.
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After the news has gone: life without your local newspaper

(c) Patrick Smith 2010

What happens when your local newspaper leaves town? The people of Ashton-Under-Lyne in Greater Manchester found out 18 months ago when the Tameside Advertiser office (right) shut and its journalists were either sacked or moved seven miles west to Manchester city centre, home of the paper’s parent company MEN Media, now part of Trinity Mirror’s regional empire. (Continued)

Demand Media: The $114 million content machine that has nothing to do with news

Image representing Demand Media as depicted in...
Image via CrunchBase

I’ve been saying for a long while that Demand Media‘s digital content model has potential to make it big. And now it’s filing for an IPO, claiming  the company has stock worth up to $125 million.

It’s clear that Demand’s growth is by far outstripping even its own predictions and the time is now to float the stock and end the start-up phase. paidContent and AllThingD have tonnes of coverage on this and are both worth following closely.

So how much money does this “content farm” make?

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Link to the past: why do some news sites STILL not link out in 2010?

Journalists now invariably have to take part in web journalism and an increasing number of them only write for the web.

But despite that, not all of them use hyperlinks - one of the main things that elevate digital journalism above and beyond its print counterpart by adding relevance, context, facts, proof and sometimes wit to an otherwise dry and mundane story or sentence.

I would challenge any non-digital platform to offer readers the amount of information that sites like paidContent (my former employer) crams into its “the story in links” posts, usually collated after the sale of a big company, like this one following Bebo’s recent sale for a pitiful sum.

Linking – sometimes referred to as “in-line linking” – has a fundamental role: it conveys information faster and more efficiently than writing it all out again from the original source. The ethos of sites like paidContent is: why waste time re-writing a press release when you can link to it and add value?

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From psmith, gamer: Why there’s more to life than the XP Factor

World of Warcraft
Image via Wikipedia

I’ve started* a games blog – at psmithgamer.tumblr.com – and this is an exerpt from a new post about levelling up in gaming. Stick around here for thoughts on digital media, but go there for thoughts on shooting aliens.

Something very odd has happened to gaming: people no longer try their damnedest to get to the end of a title to find out what happens. These days, with some of the biggest games around, the story is mostly a compared to the pursuit of increasing a player’s score, XP or level.

Gone are the linear afternoons spent testing “completing” games – Atari, C64, Spectrum and Amiga veterans will understand this concept all too well – now it’s more a case of competing in them.

XBox Live’s GamerScore, Steam‘s in-built, in-game achievements and Ubisoft‘s own game achievements system add another layer to games: outside the plot, nothing to do with the characters, they’re just extraneous throw-away trophies to compare with friends.

Some very clever people such as Jesse Schell, technology professor at Carnegie Mellon Institute (via the very good Gamestm magazine), think this is a bad thing for games.

Here are some achievement/XP heavy titles:

Call of Duty 2: Modern Warfare, the biggest consumer entertainment product launch of all time (according to Activision/Vivendi) was nothing to do with its story-based first-person single player mode, but everything to do with its collaborative or solo deathmatch leagues, which are still sapping bandwith in homes and internet cafes across the world.

Read on here…..

*I say “started” it’s actually a tumblr I launched years ago when Tumblr first kicked off, so beware some strange old posts….

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Curse of the journalism ‘intern’ – when working for free goes too far

A fifth-grader interviews US agriculture secretary Tom Vilsack. Too much for an intern?

It’s tough out there in the journalism job market. It always has been, but those entry-level openings are only available to people that really want them or have talents that newspapers, websites and magazines cannot do without.

Naturally, many students and recent grads complete many weeks of work experience in newsrooms across the land. I certainly did – it’s now an inevitable part of getting a first foot on the ladder. It’s been an interesting barometer of the recession to see how many of the job listings on Gorkana‘s Friday newsletter have moved from the ‘jobs’ to the ‘work experience/intern’ section.

If the Chartered Institute of Personnel and Development gets its way this kind of thing would be illegal: it is calling for has called for a living wage of £2.50 per hour for interns, the same rate modern apprentice schemes pay (Nicky Woolf on Guardian.co.uk has more).

But check this out: freelance journalist Tiffany Wright is advertising for what amounts to an unpaid personal assistant to help with her real life women’s mag features for a minimum of six weeks…
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Manchester, so much to answer for: why you wouldn’t launch a regional magazine

Regional newspapers are either in – or just exiting – an economic crisis. The rules have changed, the ad revenue is disappearing to free online alternatives, news habits have changed and the audience is getting older.

It shouldn’t be this hard, in theory: if the current thinking among intelligent journalists is that you need a niche, then what better niche than a town or city? Nothing unites people or defines them more than where they live. Imagine you had that relevance and you covered an industry or profession – that’s a recipe for success isn’t it?

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Updated: Targeted free content vs purist paid-for: It’s relevance that really matters when it comes to online ads

Update 1/7/10: See Tom Whitwell’s comment below: he points out that of course there are adverts on thetimes.co.uk, “on every page” even. “We just don’t have dozens of flashing popup/popunder ads for Albanian bingo parlours,” he says.

So I admit to exaggerating slightly by saying there are “no” adverts – but one or two display boxes on a page is a real contrast from most online newspapers and I think my general point stands: one of the selling points of the Times online is to not have your attention diverted by garish Flash animations and gaudy rollovers.

Original: If we boil this paid content debate to its essence, it comes to this:

  1. People either pay to read and watch stuff you make
  2. Or they don’t.

You either want people to support your editorial costs through direct payments, or you think the advertising economy online will be enough.

On one hand, digital ad spend will soon reach £3.79 billion a year in the UK, overtaking TV and print, according to an eMarketer survey of analysts’ ad projections so there unquestionably is some business model to be constructed from ad-based media (not all analysts are as optimistic incidentally, though most agree online is returning to growth after some stagnation).

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Rafat’s leaving paidContent… but we can still be cheerful about digital media

Is there reason to be cheerful about the future of digital media? Answer: of course there is. But you wouldn’t think it sometimes, with stalling advertising rates, UK start-ups scaling down and the niggling feeling that the future is always somehow a couple of years away.

So why not get some people together to talk about what’s good about the digital life? That’s what my former employer paidContent:UK did on Wednesday night, an event spurred by the fact that paidContent founder, publisher and all-round blogging chief Rafat Ali is leaving the company in the next few weeks to do new things.

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Commercial interests vs editorial independence in changing Times

Cheryl Cole
Image via Wikipedia

There are no shortage of autobiographies, memoirs and tales from Fleet Street’s pomp, when hacks would gossip the day long and could navigate its countless boozers without getting wet in a rainstorm.

Mostly, they describe a rapidly disappearing world of mass circulations, huge staff rosters and a narrow media culture compared to today. But that doesn’t mean we shouldn’t pay attention – and anyone interested in the trade should spend some time with Harry Evans’s My Paper Chase: Stories of Vanished Times, which I’ve only just got round to reading.

Evans is famous for tenacious, risky investigative campaigning journalism while editor of the Sunday Times in the 1970s. He and his Insight team uncovered the Thalidomide scandal that left children disfigurered at birth, often without limbs, due to the morning sickness drug prescribed to pregnant women, to name just one.

Without going into all that, here’s a passage from the book on how Evans was grilled by the editorial board of Times Newspapers in 1966 before becoming editor. Both Timeses were owned by the Thomson company then, long before Murdoch took over.

The editorial board asked him: “How independent will you be as editor?… What is your attitude to the Thomson commercial interests?…Even if it is news adverse to the Thomson interests, say in travel?” In response Evans said he would print anything, regardless of any embarrassment to the paper’s owners. Evans writes:

The directors spent a full hour examining my halo as someone who would embrace and defend the freedoms defined in the Monopolies Commission report [which required the paper to be editorially independent], not to sell out to Mammon or twist the news for a political agenda.

Looking back at what at the commitments demanded, I can’t help but wonder at how much journalism has changed.

From 1966, to 2010 – where The Sunday Times and its sister title are attempting to re-write the news economics rulebook by charging readers to read previously free content online, which in my opinion is part of a global push across Rupert Murdoch’s media empire to reverse advertising pressures driven in large part by the competitive efficiencies of search engines.

Aside from whether that will work, just look at these extracts from anarticle in the Sunday Times’s Style section last week (as spotted by The Media Blog).

…Cheryl barely reads any press, so she can’t say if she was surprised by that, or the furore over her having hair extensions and yet being the face of L’Oréal Elvive Full Restore 5 Replenishing Shampoo…

…And with that, ever the charming professional, she mentions the lip-gloss colour she’s created for L’Oréal Paris and the limited-edition Elnett hairspray that will have a sketch of her face on the can (the first time in the product’s history). “It’s amazing. I can’t believe it.”

Was the Cole interview granted in return for giving a cosmetics brand several mentions? L’Oréal is an important advertising client for national newspapers and it paid for a full-page ad opposite the ST piece.

I don’t know if the two are linked. But if the paper trade wants to convince the cynical digital generation that its content is worth paying for, it will have to seperate its commercial and editorial interests for good. You can’t sell content that has already been sold.

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