Google is not a blood sucking vampire. In fact, the newspaper industry is a spoilt little brat.
Search engines such as Google and aggregators (like the constantly criticised techmeme) provide a huge amount of economic value for the newspaper industry. They enable discovery by people that are not regular subscribers to their content. They provide traffic, which drive up the page views, that enable them to sell inflated prices for perceived access to an audience.
Newspapers put their content on the web for free by their own choice. They have plenty of ways of excluding their content from being freely accessible, either through a paid wall or technology conventions like the robots.txt…But they don’t want to completely do that, because they lose the traffic.
Subscription models will be the future revenue model for content. One where people will pay for constant access to a particular information provider (as fresh access – not static objects – is where the real value comes from in information and especially in news). Of course, this means people with established brands can only do this as people will not pay unless they know what to expect. However despite their current lead in this game due to their century-old mastheads, the newspaper industry is refusing to solely go down this route. And the reason for this, is because they still rely on advertising for the majority of their revenue mix – and advertising is driven by traffic.
Newspaper executives want the economic value provided by search engines and aggregators in discovery and traffic – but they whine consistently because these innovative new businesses in the information age have found a way to monetise this function in the value chain.
The solution is simple: cut public access, and put all content behind a paid wall. And only participate in exclusive aggregators. The search engines and free aggregators no longer have your content to add to their mix – and yes, you Mr newspaper executive no longer get as much traffic. But that’s what you get for being a whining little kid.
I am sick and tired of hearing industrial age executives refuse to compromise with information age business models.
A great observation Elias. They have all the tools to solve their little content problem, but IMO lack the vision, guts and personal responsibility to make the change implement a better and more forward thinking business model.
Interestingly, even 10 years ago, the classifieds revenue stream for newspapers was the river of gold, floating the papers all the way through the the long lunches and early early Friday afternoons.
For the rest of us – remember the hit and miss of trying to sell anything in print? Waiting all weekend by the phone, being chained to the house just to field some call from a tyre kicker? That experience wasn't much fun for the seller, and the buyer. The internets made things like craigslist, ebay and the host of others that did the job better ultimately making print classifieds redundant.
Now the very core remaining value the newspapers add is being replaced by the internets. In my view they are scared, because it's only a matter of time.
…and their #1 medium borne in their namesake – paper is so last century.
Sam,
@samotage
A great observation Elias. They have all the tools to solve their little content problem, but IMO lack the vision, guts and personal responsibility to make the change implement a better and more forward thinking business model.
Interestingly, even 10 years ago, the classifieds revenue stream for newspapers was the river of gold, floating the papers all the way through the the long lunches and early early Friday afternoons.
For the rest of us – remember the hit and miss of trying to sell anything in print? Waiting all weekend by the phone, being chained to the house just to field some call from a tyre kicker? That experience wasn't much fun for the seller, and the buyer. The internets made things like craigslist, ebay and the host of others that did the job better ultimately making print classifieds redundant.
Now the very core remaining value the newspapers add is being replaced by the internets. In my view they are scared, because it's only a matter of time.
…and their #1 medium borne in their namesake – paper is so last century.
Sam,
@samotage
Good story. Here's what I think. If any of these producers of dead tree products got a bit on the side of new technology like digital paper (kindle is a very early start) and found exciting new ways to deliver their content then they might have a chance. Just like the music industry they are, fighting all the way until eventually iPods come along and iTunes and blow them out of the water. Why didn't they think of that? Aren't they getting paid zillions to look and plan ahead? So to must newspapers must change.
But then again hey let them whine away. It gives opportunity to other great thinkers and innovators who have far more vision to overtake them.
Good story. Here’s what I think. If any of these producers of dead tree products got a bit on the side of new technology like digital paper (kindle is a very early start) and found exciting new ways to deliver their content then they might have a chance. Just like the music industry they are, fighting all the way until eventually iPods come along and iTunes and blow them out of the water. Why didn’t they think of that? Aren’t they getting paid zillions to look and plan ahead? So to must newspapers must change.
But then again hey let them whine away. It gives opportunity to other great thinkers and innovators who have far more vision to overtake them.