At CUNY’s Tow-Knight Center for Entrepreneurial Journalism, we invited John Paton, CEO of Digital First Media, Journal Register, and Media News, and Justin Smith, CEO of Atlantic Media, to answer questions about how they are executing their digital first strategies. I interviewed them, digging down into revenue, costs, transition for staff, audience, and advertisers, and more. Here’s the full video:
Paton made it clear that digital first is a transitional strategy, not an end game. He said that at companies like Paid Content, he cannot ever imagine them having a digital first discussion because they obviously are already digital. But he has to transform his companies into digital companies. He talked about cost-cutting and efficiency; about how he is multiplying digital revenue; how he motivates sales people to sell digital; about digital journalism; and about the size of a digital company versus a print monopoly.
Smith — who also launched The Week magazine in the U.S. with a unique and successful strategy — came at many of these questions from the perspective a magazine that sells high value. So he is not only multiplying audience through digital. He is making Atlantic, more and more, into a digital marketing agency for his clients. On the one hand, he says, costs decline from paper to screen, but costs also increase as advertisers need and will pay for greater services. (I think we’ll find that even down to the local level, media companies will have to act like agencies, helping advertisers execute their own digital strategies …. more on that another day.)
In a time when much of the rest of the newspaper and magazine industries are moaning and mourning about their fate, these two executives are building a new future. They are optimists, as are we at Tow-Knight. They have reason to be as they begin to find successes on this difficult path.