Posts about geeks

Geeks Bearing Gifts: Digital First — What Then?

Here’s another free chapter of Geeks Bearing Gifts: Imagining New Futures for News. Now we get into the business models and strategies for news companies, starting with the question many ask John Paton, who named his company with the phrase — “What’s digital first?” — and the question he asked me — “What comes next?”

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Here’s how I translate the catchphrase “digital first” into a business strategy for legacy media proprietors: They must transform their companies into fully sustainable digital enterprises before the day when print becomes unsustainable. And for the most part, print will become unsustainable. I needn’t explore in depth the causes of death, as the essence of mass media’s plight is now apparent: Publishers as well as broadcasters controlled scarcities — limited space in print and time on the air, each in a closed distribution channel — which afforded them enviable pricing power. The net creates abundance — no shortage of content and no end of advertising availabilities, not to mention the opportunity for brands and merchants to bypass media altogether and build direct relationships with customers. That abundance drives the value of content and advertising toward zero….

The solutions for media companies may not be obvious, but the arithmetic of sustainability is: Start by reducing costs to their most essential and efficient level — assuredly a fraction of what they were for an old, vertically integrated monopoly. Then maximize digital revenue — advertising volume, yes, but I will also argue for building greater advertising value through deeper, richer relationships with consumers. Build new products and services appropriate to the new opportunities that technology presents: digital services for advertisers, mobile applications, newsletters, and so on. And explore additional revenue streams, including events, direct commerce, and consumer revenue via patronage or paywalls. Digital revenue surely will not cover the legacy costs of a deposed monopoly, but one had better see a path to digital profitability. The alternative is just to milk the old print cow until she keels over.

And one more snippet from this chapter about Paton and the genesis of this entire book:

Back to John Paton: I remember the day in 2012 when he charted for his advisory board — at the time, Jay Rosen, Emily Bell, and me; Clay Shirky joined later — his path to fixing Digital First’s corporate structure, reducing costs to the minimum (selling every printing press, fleet of trucks, and office building that was not profitable on its own), and driving maximum revenue to digital. He explained the dynamics of working with hedge funds — a crucial factor to keep in mind when we see later how his story ends. Paton drew his projections on the whiteboard and said: OK, let’s imagine that at a date only a couple of years out, we get there — the company will be substantially sustainable as a digital enterprise. Then what? he asked. What are we then?

That question inspired this essay. Trying to answer Paton’s question forced me to reexamine my own thinking about the future of news, to identify and push harder against my own assumptions that sprang from my experience in legacy media: the Gutenberg context, or pressthink, as Jay Rosen would call it. Paton was asking what news could be, what news should be. What is the strategy that takes us past mere survival to reinvention? Can we get there? I realized that until we reimagined our destination, we would be stuck recycling the past. What’s required to get to that goal is considerable imagination, experimentation, risk, failure, courage, and urgency — as well as patience.

If you can’t wait for the rest of the book, then you can buy it here.

Geeks Bearing Gifts: The Story So Far

After taking a bit of time off, I’m going to restart the posting of chapters from Geeks Bearing Gifts: Imagining New Futures for News — for free on Medium. This last half of the book is the meaty bit, the good part, the climax. This is the part about money and sustaining journalism.

Screenshot 2015-02-10 at 3.40.50 PMFirst, a brief recap of the first two sections of the book about relationships as the basis of a new strategy for news and then about new forms of news, then a preview of the rest of the book. It’s short, so I’ll quote the entire thing here:

I hear it often: News doesn’t have a journalism problem. It has a business-model problem. I will disagree on two counts. It is willfully blind and suicidally deaf to say that journalism doesn’t have a problem when its institutions are all suffering falling audience and plummeting trust — only about a fifth of Americans have “a great deal” or “quite a lot of” confidence in news media, according to Gallup. More important, to pose journalism’s plight as a problem is to suggest that journalism as it was needs saving, that there’s some fix out there that will make everything all right again if only we can find it. I prefer to state the quandary from an antipodal point of view: Journalism has no end of new opportunities and our problem is that we have not yet explored nearly enough of them.

In the first part of this essay, I explored the new relationships journalism can have with the public that it never could have before:

* understanding, interacting with, and serving people as individuals and communities rather than as a mass;
* shifting our goals, organizations, and cultures from manufacturing content to providing service, helping the public we serve meet its needs and goals;
* using, building, and offering new tools and transforming journalism into a platform with greater utility, often at scale;
* working collaboratively with the public and with fellow members of growing news ecosystems and networks;
* recasting the journalist as more than storyteller: as convener, partner, helper, educator, organizer, even advocate.

In the second part, I began to explore new forms for news that cascade from these new relationships. We can recast the article with new-media tools, then move past the article with new means of providing service: news through links, news via data, news as a flow, news through tools, news as a tool. More important than reconsidering the forms news can take is the value we can provide. Our new and richer relationships with the public we serve give us the opportunity to offer greater relevance in the context of their needs; to specialize in the journalistic skills that are most needed; to improve the quality of our work; to explore new methods to fulfill our mission. News can take on countless more forms I cannot begin to imagine because I am too old and the technologies are too new.

Now we arrive at the big question: how to sustain journalism. In this last half of the essay, I will explore business models for the new layers of news ecosystems that are supplanting the old, vertically integrated corporations that dominated news for more than a century: beat businesses, new news organizations (some of them rebuilt from the ashes of the old), networks, and platforms. For old or new news companies, I will suggest how to implement the relationship strategy as a business strategy, knowing our users better so we can increase the value we provide them and thus extend their use, engagement, and loyalty. I will suggest that knowing our users better will also yield greater value and revenue in advertising — using data about users not as a commodity to sell but as a tool to build worth. I will explore other revenue streams at small and large scale: events, digital services, ad networks, commerce, memberships, patronage, and consumer payment. I will suggest new metrics to drive our media businesses and new perspectives to consider regarding such protective concepts as copyright and intellectual property. In the end, instead of asking the question I so often hear — Who will pay for journalism? — I will ask the one that troubles me more: Who will invest in innovation? Who will help us explore journalism’s many and promising but certainly unsure opportunities?

But first, we have some unpleasant business to get through. We must examine the weaknesses of the present business models for news and why they cannot carry over to our new digital world. And we need to explore further cost efficiencies, difficult as that can be. For journalism must finally reach the point at which the cutting ends so it can find ways to grow again.

If you can’t wait for the rest of the book, then you can buy it here.

Geeks Bearing Gifts: Reinventing TV News

Here’s another chapter from Geeks Bearing Gifts, this one about a topic I’ve discussed here: reinventing TV news. Read the whole thing on Medium. A snippet:

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I know people who are innovating with the form online and who object to calling what they do “television” because they don’t want the word’s baggage. But I say they should co-opt the word, revolutionizing the concept of television instead of letting it languish in its past. It’s true that there’ll soon be no way to distinguish among media. What used to be a text article in a print publication now, online, has video and audio; what used to be a TV story can now carry text and photos online; both can include interactivity and discussion and more. Still, I see value in commandeering the word television because I want innovators to take over the medium itself, pressuring its legacy owners to cast off their orthodoxies and idiocies. Those not-so-old broadcast companies, though weakened by the ceaseless growth of new competitors, still have good businesses and still attract the largest news audiences. They have had little motivation to change. Even newspapers and magazines, finally able to make video, have made the mistake of trying to ape broadcast TV. Change will have to come from outside media.

If you can’t wait for the rest of the book, then you can buy it here.

Geeks Bearing Gifts: Mobile=Local=Me: Context over Content

Back from the holidays, here’s the next chapter from Geeks Bearing Gifts, posted for free on Medium. Spoiler: I say this is a chapter about mobile but instead it ends up being about understanding different use cases for news, no matter the device or medium. I argue that thinking of mobile as just another content-delivery medium is short-sighted. Mobile is about context. Instead of organizing our services around platforms, we should be organizing them around people and their specific needs. A snippet:

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Usage and traffic for mobile is fast outpacing the web. Many news sites see or are about to see a majority of their traffic from what is classified as mobile. I had a conversation with a Google executive in which I whined about functions I wanted to see added to their web services and he pshawed me, dismissing the old web as practically passé. Google is devoting itself monomaniacally to mobile, where it provides us with no end of useful and specifically built apps — mail, maps, documents, calendar, photos, entertainment, communication — that all know me as a single user. Mark Zuckerberg, meanwhile, told The New York Times that he is deconstructing his big, blue mobile Facebook application and buying or building a chain of specialized new apps — like WhatsApp, Instagram, and the beautiful Paper — to lay atop his relationships with users and his data about them. Facebook’s apps are built for specific uses — one for checking updates, another for instant messages and chat, another for sharing pictures, and so on. Facebook’s apps all offer connections. Google’s apps all offer services. Both companies’ apps are built atop their relationship databases. Google and Facebook are in the relationship business. We are not. 

Perhaps our problem in media is that we offer but one thing: content, or at least that is how we present what we offer. We make users come to single portals so crammed with our stuff it’s hard for them to find what they want, especially in cramped mobile screens. What Google and Facebook offer instead is context in the user’s terms: When you want to mail, you use the mail app; when you want to drive, you open maps; when you want to check in on friends, you open Facebook; and so on. Interestingly, both Google and Facebook have so far failed in their attempts to deliver news on web or mobile. Perhaps that was because they were trying to deliver our content without personal context. 

What happens if we rethink the value of news expansively in the contexts of its many uses?

Read on for my answers in the rest of the chapter here. If you can’t wait for the rest of the book, then you can buy it here.

Geeks Bearing Gifts: Curation & Data

I’ve posted two really short chapters from Geeks Bearing Gifts today on Medium: one on curation, one on data. Then I’ll take a break for the holiday and come back with a bigger chapter on rethinking what mobile really means for news.

A snippet from the chapter on curation (relevant to current discussions about Google and news in Europe):

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As early as 2009, Google Executive Chairman Eric Schmidt responded that Google News was sending one billion clicks a month — Google as a whole three billion a month — to publishers. “That is 100,000 opportunities a minute to win loyal readers and generate revenue — for free,” he wrote. Right. Curation — being curated — is a means of discovery and distribution for content. In an ecosystem of abundant content and no end of competitors for a reader’s attention, publishers should want to be curated so that readers may find their content. Later, in a discussion of the link economy and copyright, I will explore the business implications of valuing not only the creation of content but also the creation of an audience for it — sometimes, through curation.

And here’s a snippet from the chapter on data:

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Data is a critical new opportunity for news organizations. What journalists have to ask — as with the flow of news — is how they add value to data by helping to gather it (with effort, clout, tools, and the ability to convene a community), analyze it (by calling upon or hiring experts who bring context and questions or by writing algorithms), and present it (contributing, most importantly, context and explanation). . . . 

Data needs to become a mindset and a skill set in news organizations. Journalists should receive training to become literate in the opportunities and requirements of using data. Journalists also have to work with specialists who can analyze, interpret, and present data, and who can create tools allowing both reporters and the public to work with it. From a business perspective, data should be seen as an asset worth investing in, one that can yield news and new engagement often at a low cost. Data is/are a step past the article.

Read the rest of each chapter here and here. If you can’t wait for the rest, then you can buy the book here. The perfect gift for the journowonk on your list.