media

Rita McGrath at Harvard Business Review has written a blog post on why she hates micropayments.  Micropayments are financial transactions involving very small sums of money (see Wikipedia). For online publishing, a small fee would allow you to view the content for a certain period of time or for a certain number of articles.

Personally, I'm not sold on the concept of micropayments for content which is probably why I was lured to Ms. McGrath's article in the first place.

The idea has been around a long time — at least since the mid-to-late 90s — with both supporters and detractors weighing in. Millions have been lost by companies seeking to capitalize on streams of micropayments, almost all of which eventually crashed and burned. Myself, when confronted with a request to chip in 99 cents for a one-time glimpse at an article or $2.99 for a week's worth (as some of my local newspapers are doing) — well, I close that window and go away.

The author of the article discusses further the importance for any payment system adopted to consider "how the payment link of customers' consumption chains fits into their total experience". Micropayment systems have a tall order in that they need to be seamless, transparent, and achieve inevitability. Even grimmer for publishers, it's not only the micropayment experience that needs to be improved but also the non-micropayment systems too.

For the past few years, I've paid a yearly subscription to the Wall Street Journal for the print publication and the online subscription. With my yearly renewal coming up very soon, I've decided to discontinue my online subscription to the WSJ. Why would I do that? There are some very basic reasons to why I'm dropping WSJ.com. I rarely find myself reading the online content of the WSJ. I either already read the stories in the print version of the WSJ or I have found myself already familiar with the news story because I read a similar story posted elsewhere online. Stopping by the WSJ.com, unlike CNN or FoxNews, never became a daily ritual for me.

The Pew Project for Excellence in Journalism does a fantastic job reporting annually on the state of the American news media.  The Pew Project's sixth edition for 2009 is no exception and provides lessons for all businesses on the importance of agility, adaptability, and competitiveness.  The following paragraph from the report's introduction says it all.

Journalism, deluded by its profitability and fearful of technology, let others outside the industry steal chance after chance online. By 2008, the industry had finally begun to get serious. Now the global recession has made that harder.

This is the sixth edition of our annual report on the State of the News Media in the United States.

It is also the bleakest.

I have friends in the businesses of radio, television, and newspaper.  I take no pleasure with seeing people's careers in jeopardy due to all the rapid changes taking place in their profession.  What is truly sad to me is that the owners and managers of traditional media seemed to deny for too long what was happening.  The event is even sadder because it seemed obvious to many of us that look at industries from an information technology perspective where things would be headed.

Mark Van Pattern has written a piece on PBS's MediaShift titled, "How the Focus on Print Hurts Our Newspaper Site".  His story is a common story I hear time after time from those in the newspaper business.

It's definitely no tangled bureaucracy, but even within this simple system you find conflicts holding the website back. The problem is that the different people in that system just have different priorities. As general manager, I want to see both a strong online presence and continued healthy print circulation. In contrast, the managing editor doesn't want to "hurt" the print edition by making the online edition too strong, fearing that it could tempt subscribers to abandon print.

Ultimately, this conflict is what's holding our online edition back. Without a full commitment from the managing editor, the website will never reach its full potential.

The digital age remains to be a dillemna for newspapers.  Newspapers either have to ballance their resources between print and online media or put more focus on one over the other.  I think it becomes even more difficult for publications when they find a large readership online yet the higher revenue remains on the print side.  Although it may take some years, I still say that eventually online media will beat old media.  It is just a matter of time.

"A huge part of the problem is that newspaper companies are still being run, mostly, by people from the print side -- and who, though they may attempt to understand interactive media and the needs and media habits of young people, aren't effective at moving their organizations in a radically different, and necessary, direction."

-Steve Outing, "Why Aren't Newspapers Breaking Out of the Box", Editor & Publisher, September 25, 2006