"The News Landscape in 2014: Transformed or Diminished? (Formulating a game plan for survival in the digital era)"Not one model, at least not for forseeable future; has to be many modelsWhen was the last time an industry died? When was the last time you saw a black and white or silent movie?To create new pay models, you have to transform yourself in ways that make senseShareholder:

The Curse of the Mogul

Journalist:

Losing the News

Economist:

Media Ownership and Concentration in America

Three viewpointsMedia conglomerates underperforming market (S&P as proxy)Niche information providers stay evenTraditional news overperformed and then fell off cliff in 200610-year historyDestroyed barriers to entry (e.g., printing press)Lost pricing leverageEliminated entire categories of advertising (e.g., classifieds)The internet's knockout punchCompanies stay on S&P 500 for average of 16 years"

Creative destruction

does not necessarily mean that the incumbents will lose out, it means they must transform themselves to keep pace with the market"Customer behavior is changing, so must switch out and transformShed legacy costs (biggest advantage of newcomer over incumbent; generally over 50% of traditional media companies)Not about CPM, it's about selling communityReestablish communityBelow-the-line advertisingBuild new online advertising categoriesThe path to renewalLooking ahead: the landscape in 2104"Creative leaders, once again, are needed to find ways to locate loyal audiences and to use technology to find (ways) to res

earch these old and new audiences…"

"The likelihood that the structure of this medium will remain as before is nil." -Eli NoamPenelope Abernathy (University of North Carolina, Chapel Hill)"A new Model for News"Google is the new remote control for newsFactsUpdatesBack storyFuture storyPieces of the news:People coming in through sidedoors and updatesPieces are all disjointed, not a good user experienceShift from

Supply Push

Demand Pull

Digital PlatformNews RegistrySearch StrategySocial Media Model -move people from twitter into the news (Ed. Note: why not work with them on the home turf?)If we could standardize metadata formats and other steps, we could connect the piecesMonetize long trail instead of old packagesJames Kennedy (VP for Strategy, Associated Press)10 years ago, major news organizations committed suicide by offering their content for freeGoogle is just helping AP give away for free what they want to give away for free (via their newspaper customers)Put power back in the hand of publishers to determine the balance/ratioNot a paywall, but a

gradual

process to wean people off the idea that content is freeIf you create journalistic content, the readers pay for a portion of it, and the advertisers pay a portion of itNot create a new model, create an old modelSteven Brill (Journalism Online, Inc.)Not dealing with dichotomous choices, but change over timeNewspapers are impacted about 4-5x as bad as any other industry during a recessionGrounded in comfortable and seemingly logical argumentsMany newspaper companies are intrigued and studying how to chargePush for paid contentFocus of discussion is about publishers' needs, not about customers' needsFocus of discussion is about money not about the productFocus is about the value of price for publishersOnly then should you worry about priceOne cannot be successful without focusing on how to create value for the customerSome words of cautionWillingness to pay is higherAmount consumed is higherThere is more demand for entertainment than for news content5 times higher for tv/cable than newspaperPrice for non-news content are much higherNOT the samePaying for news is the same as paying for music, vide, and other contentAssumptions in the argumentsRobert Picard (Jonkoping University, Sweden)

The Quest for Pay Models

Friday, November 13, 20095:02 PM

Yale Law Journalism Conference Page 1