Posts about nytimes

Geeks Bearing Gifts: Paywalls

Screenshot 2015-04-14 at 7.49.54 AMSorry. Haven’t uploaded a new chapter from Geeks Bearing Gifts in two weeks. Busy, you know. So here’s the latest, on paywalls. Uh-oh. The start of it:

There is no more emotion-laden topic, no fiercer battleground in the hunt for new business models for news than the discussion of paywalls. I have personally been taken to task in the once-august Columbia Journalism Review and by no less than The New York Times’ media critic, David Carr, to name only a few, for challenging the wisdom of the wall. The arguments in favor of paywalls are apparent: Readers used to pay for content when they bought newspapers and magazines and so they should still. It was an original sin for content ever to have been given away for free online. The people who use news sites the most value the content there and would be willing to pay for it, and so they should. News organizations should have multiple revenue streams so they are not so dependent on advertising alone (see: doomsday, above). And news — quality news — is expensive. Who should pay to maintain the newsroom and the Baghdad bureau? Besides, it’s working at The New York Times, The Wall Street Journal, and the Financial Times, why shouldn’t it work elsewhere?

My responses: I have never seen a business model built on the verb “should.” Customers pay for products and services based on the value to them in a competitive market. The arguments in favor of maintaining paywalls around content tend to ignore the new reality of a media ecosystem built on abundance, no longer on a scarcity controlled by media proprietors who have long since lost their pricing power. In such a market, someone will always be able to sell a product like yours cheaper than you. Some spoiler might even figure out a way to make that product free, and it’s impossible to compete with free. Nevermind that the competitor’s product may not be as good. In the market, what matters in the end is this: Is it good enough? In such an ecosystem of abundance, I say it was wise, not sinful, for news organizations to open up and build an audience — bigger online than ever in print — before it could be stolen away by more efficient new competitors: from CompuServe to Yahoo, from a million bloggers to Huffington Post, from Business Insider to BuzzFeed. I will argue in a moment that if we’re going to charge anyone, perhaps it should not be our most loyal, engaged, and valuable customers on whom we make money through advertising, but instead the occasional visitor and freeloader. As for the argument that news is expensive: Well, yes, it was, but we know it can be more efficient today. Besides, thanks to advertisers’ support and subsidies, the truth is that readers never truly paid for news, never fully supported the cost of the newsroom. And in a competitive market, one cannot price one’s offerings based on cost plus profit; that works only in a monopoly, which news organizations have now lost.

Read the rest here.

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

The newest New York Times

Screenshot 2014-01-10 at 8.49.59 AMThe Guardian asked me to turn a series of tweets about the new New York Times site design into a review:

A web-site redesign is often an expensive, time-consuming, over-hyped exercise in media navel-gazing: an expression of institutional ego over user need. So I will confess a preemptive shrug at news of the newest New York Times online.

But I retract my shrug. As I explored the new site and tweeted my reaction, I quickly warmed to this new haircut on an old friend. It’s neither revolutionary nor terribly disruptive and leaves me feeling as if the paper online has tried to pay tribute to the paper as paper (why did they feel the need to resurrect the mix of italic and roman headlines that was de rigueur a half-century ago?). Still, The Times does much right.

The redesign kills the irritating news-site habit of cutting stories into multiple parts. In print, we newspaper folk called that “jumping” from, say, the front page to one inside, and every reader survey ever performed told editors that their customers hated that. Newspapers continued to do it online not because scarce space forced us to but instead because we wanted to pump up our pageviews: The more pages you viewed, the more ads you saw, the more money we made — or so went the myth of old mass media carried over to online. That is also the economic genesis of sites’ slideshow disease.

The Times now lets us scroll through a story without clicking. But there could be an economic rationale for that, too. Web analytics company Chartbeat found that readers tend to let their eyes skip right past the banners atop pages — usually sold as the most valuable ads — and end up spending more time exposed to the ads embedded down within longer tomes. Time engaged can build greater value than pages clicked.

In an effort to increase said engagement, The Times has tried to make it as easy as licking your finger and turning the page to move to the next story … and the next. There’s an arrow on the right of every story that moves the reader to the following story displayed in a horizontal menu above. Once I figured the system out — I’ll confess it took me a few clicks to associate the arrow with the preview in the bar — I found it, well, engaging. But I also found this feature, like the ability to read today’s paper — that is, the stories as packaged in the physical artifact — a bit too nostalgic for the idea of editorial presentation and control.

Nonetheless, I salute The Times for putting less effort into its home page (which on The Times attracts more than half of its readers in a day but on many news sites draws as few as 10 percent) than into creating a satisfying experience around the meat of the matter: the article.

I’m also relieved that The Times did not follow the example of its much-ballyhooed — and so-often-aped“snowfall” format, injecting animations and videos and sound and every manner of media into a simple text tale. There’s no digital Rococo in sight.

The new Times uses what geeks call the “hamburger button” (three parallel lines — two sandwiching the third) to get rid of the time-worn left-hand navigation bar. Speaking from experience running news sites, the nav bar became the basis of political turf wars, with editorial and commercial departments battling for more signage. With all that obvious information tucked away, there’s more room for what should be in a news site: news.

Screenshot 2014-01-08 at 9.01.29 AMI’ll quibble that once one does mouse-over the hamburger (oh, what has become of our language?) the resulting menu is three layers wide (e.g., arts to books to best sellers) and can require the manual dexterity of a pianist to play it. But as I confessed, I quibble.

One other important change in this redesign is The Times’ ability to accommodate the next supposed media messiah after the pay wall: native advertising, which is code for fooling readers into thinking that marketing messages are actual content. We used to call these things advertorials — you know, those things you skipped past. Now media mythology has it that every brand should be media and all media need content. But the real question is: Do you find value in reading an opus from Dell about “Reaching Across the Office from Marketing to IT“? I don’t. I go to Dell to buy hardware, not words. As I recently warned a roomful of PR people itching to advertise natively: Content is a shitty business. Stay away! I predict that the fad will soon lose its luster.

Screenshot 2014-01-08 at 8.59.09 AM
But in the meantime, let’s at least give credit to The Times for doing native advertising right — that is, for being scrupulous about labeling it for what it is. “Paid for and posted by Dell,” says the warning atop every piece. “Written by Dell,” it says at the byline. “More paid posts from Dell,” it says to the right. Short of using the A-word — advertising — it can’t get much clearer than that. Now the question is: Will readers click and care? Will a 13-paragraph essay asking, “Can the Government Become Entrepreneurial?” sell more computers than a well-targeted coupon?

As former Times wunderkind Brian Stelter writes at CNN.com, much of the import of The Times redesign occurs behind the scenes in a new content management system that the paper says will make it easier to iterate with new technologies, obsoleting not the present site but instead the concept of the redesign. I argue that CMSes — like redesigns — are another expression of editorial ego. I’ll be egotistical enough to quote what I blogged on the topic:

It’s all about us, about our content, about how we want to make it, how we want to present it to you, how we organize it, how we make money on it, how we protect it. What we should be doing instead is turning our attention outward, from the content we make (surely after 600 years, we know how to do that) to our relationship with the public we serve and the ecosystems in which we operate.

The one thing missing from The Times redesign is me — or to put that less egotistically, you. I wish a news site would move away from its mass-production roots and devote just some proportion of its presentation to personal relevance, reducing noise and increasing engagement not through user interfaces but through delivering value. I’d like The Times to learn that I never read sports and often read about movies and devour media news and live in New Jersey and thus give me more relevance. Netflix knows what I like but my newspaper does not. Google knows where I live and work but my newspaper does not. Shouldn’t it?

This shift won’t require a redesign of pages and pixels or systems. It will require a rethinking of newsroom culture and commercial business models to emphasize service over content, outcomes over presentation, relationships over mass.

Oh, be warned: The Guardian is working on its own new systems and redesign.

Theft v. sharing

Surely New York Times columnist and former editor Bill Keller understands how specious his comparison between Rupert Murdoch and Mark Zuckerberg is.

What’s the difference, I asked a tech-writer friend, between the billionaire media mogul Mark Zuckerberg and the billionaire media mogul Rupert Murdoch?
When Rupert invades your privacy, my friend e-mailed back, it’s against the law. When Mark does, it’s the future.
There is truth in that riposte: we deplore the violations exposed in the phone-hacking scandal at Murdoch’s British tabloids, while we surrender our privacy on a far grander scale to Facebook and call it “community.”

Oh, come now. Murdoch’s henchmen steal private information through hacking phones and other nefarious means to splash it on the front pages of their rags. Facebook creates a platform that enables people to share with each other at their will, to connect, and to gather together to do anything from meeting for dinner to organizing a revolution. Surely Mr. Keller understands the difference between journalistic high crimes and felonies and providing a community with the means to organize itself — which, I argue, is what journalists should see as their mission.

Bill, I’ll send you a copy of my book, which explores the differences between privacy violated and publicness enabled.

So much for the penny press

The New York Times raised its daily price to $2.50 today. I thought back to the penny press at the turn of the last century and wondered what such a paper would cost today, inflation adjusted. Answer: a quarter.

Screen shot 2012-01-02 at 11.09.10 AM

So, in inflation-adjusted current pennies, The New York Times today costs 10 times more than a newspaper in 1890. Granted, Today’s Times is better than a product of the penny press. But is it worth 10x? Should it cost 10x?

In the meantime, labor rates have risen (a Timesman today lives better than a Timesman then) but production technology has become far more automated and efficient (no more typesetters, proofreaders, compositors, engravers, stereographers, mailrooms, or “rubber rooms” filled with unneeded pressmen). And the advertising value of newspapers has increased exponentially.

On the one hand, there’s less competition today. The New York Times is essentially a national newspaper monopoly (the Wall Street Journal and USA Today are different beasts). That should enable it to raise its price to such a premium. On the other hand, what’s really at work, of course, is that there’s much more competition today: the entire web. That would drive the paper to lower its price.

Instead, today it raises its price — by a whopping 25% over its old daily price of $2. That’s because it is trying to support an outmoded economic model. The myth of legacy media — rich while it lasted — was that every reader saw every ad so the paper charged every advertiser for every reader. That’s how scale paid off. Those are the economics that led to the rise of the penny press.

Online, that myth has been punctured: (a) every reader does not see every ad, and (b) advertisers pay only for the ads readers see (or in Google click on), and (c) there’s abundant competition. That’s what confounds legacy media folks: “If I get more audience and have more effective advertising, why am I not being paid more?” Because you’re operating by media laws that are now outmoded. You’re still operating under an industrial economy built on scarcity. That’s what makes you think you still have pricing power.

You need to find opportunity in entirely new models, in the new scale, in abundance. Google finds value in scale by taking on risk for the advertiser (who pays only for clicks) and by increasing relevance by putting ads everywhere. Facebook finds value in relationships and data about them and it doesn’t sell content but does use content as a tool to generate more data about users and their interests.

In their day — a century ago — newspapers found new ways to exploit scale. Today, net companies exploit scale in new ways. Google, Facebook, and Twitter are the penny press of today. Only they cost even less.

BTW, thanks to the very good Times Machine, we can see that The Times started life at a penny, which rose to four cents and then back down to a penny by 1900 — because it wanted scale.

The article and the future of print

This week, Guardian Editor-in-Chief Alan Rusbridger declared that the paper would go “digital first,” following John Paton‘s lead and stopping a step short of his strategy at Journal Register: “digital first … print last.”

My Guardian friends are getting a bit tetchy about folks trying to tell them how to fix the institution, but given that it lost £34.4m last year, I’d say the intervention is warranted and should be seen only as loving care: chicken soup for the strategy. So I will join in.

My thoughts about the Guardian have something to do with my thoughts on the article. That’s a logical connection because the means of production and distribution of print are what mandated the invention of the article. So it is fitting that we consider its fate in that context.

But first let’s examine what it means to be digital first. It does not mean just putting one’s stories online before the presses roll. In that case, print still dictates the form and rhythm of news: everything in the process of a newsroom is still aimed at fitting round stories into squared holes on pages. That, as Jay Rosen says, is the key skill newsroom residents think they have (and the skill journalism schools prepare them for): the production cycle of print.

Digital first, aggressively implemented, means that digital drives all decisions: how news is covered, in what form, by whom, and when. It dictates that as soon as a journalist knows something, she is prepared to share it with her public. It means that she may share what she knows before she knows everything (there’s a vestige of the old culture, which held that we could know everything … and by deadline to boot) so she can get help from her public to fill in what she doesn’t know. That resets the journalistic relationship to the community, making the news organization a platform first, enabling a community to share its information and inviting the journalist to add value to that process. It means using the most appropriate media to impart information because we are no longer held captive to only one: text. We now use data, audio, video, graphics, search, applications, and wonders not yet imagined. Digital first is the realization that news happens with or without us — it mimics the architecture of the internet, end-to-end — and we must use all the tools available to add value where we can.

Digital first, from a business perspective, means driving the strategy to a digital future, no longer depending on the print crutch. That means creating a likely smaller and more efficient enterprise that can survive, then prosper post-monopoly, post-scarcity in an abundance-based media economy. It means serving the commercial needs of businesses in our communities in new ways: not just by selling space but by providing services (helping them with their own online strategies — including Google, Facebook, Groupon, craigslist, et al; training them; perhaps holding events with them). It means finding new efficiencies in the collaborative link economy. It means outrunning the grim reaper and getting past risky dependency on free-standing inserts (the coupons and circulars that will one day, sooner than we know — zap! — disappear) and retail advertising (which continues to implode) and the last vestiges of classified (how quaint) and circulation revenue (sorry!). It means getting rid of the cost of the analog business (“iron and real estate,” as Paton says).

Print last. Note that none of us — no, not even I — is saying print dead. Print, at least for a time, still has a place in serving content and advertising. But let’s re-examine that place even as we re-examine the role of the article, the journalist, and the advertisement in digital.

Since I spoke about this with Rusbridger last time he was in New York to herald the coming of Guardian for Yanks, I’ve refined my thinking. As I understand the well-known business of the Guardian — unlike many US papers and unlike at least one of its UK competitors, the Times — its Sunday paper, the Observer, is an economic burden. My thought earlier had been to give it up, just as many American papers are contemplating giving up other days of the week but keeping Sunday (and Thursdays and perhaps another … because they are still useful to wrap around those free-standing inserts). No, they won’t keep publishing on those days for journalistic purposes but because they have distribution value. Cynical, perhaps, but true.

But all this talk about the article has made me contemplate a new future: What if the Guardian became an online-only and international brand of news, multimedia, and comment and the Observer became a once-a-week (who cares what day of the week?) print brand of analysis, context, comment, and narrative? The Guardian has 37 million users, two-thirds of them outside the UK. Going online-only would enable it to become a truly international brand. The Observer could compete with the master of the article, the one publication that adds great value through the form: the Economist. As a newspaper of depth, this Observer could mimic Die Zeit in Germany, an amazing journal of reporting and commentary that is still growing in circulation. The print Observer could be printed in America, competing with weak-tea Sunday newspapers in markets across the country. Prior efforts to consider a print Guardian in the U.S. have stopped short. Could this succeed? Dunno.

The point is that the article as a high form of journalistic practice could succeed in a high-value print form while the Guardian could become a journal of news and comment in text, photo, video, audio, graphics, data….

What also makes me wonder about this is The New York Times’ proud announcement that it will remake its Week in Review into the Sunday Review next week. Truth be told, I haven’t read the Sunday Times in ages. I used to hang on its arrival at newsstands on Saturday nights in Manhattan and Brooklyn, but now I find it to be day-old bread, yeasty but stiff. Could The Times turn its plans for Sunday Review into an American Economist? I’m less sanguine about its chances than the Guardian’s. In either case, the winner would be the one that finds the greatest value in the old form of the article.

See, it’s not dead. It just needs a savior.

: MORE: I meant to add a few thoughts on the form the article takes in these media. In digital, articles are still valuable to synthesize a story, to summarize a complex day’s news, to add context, and so on. Again, not all stories need such articles, but many will. In this vision of print, the article takes on a different raison d’etre and a higher calling: It needs to add perspective. Bill Keller says it this way in his preview of the new Review:

Jonathan Landman, who took over the section from Dan Lewis, put it this way: The news sections’ job is to inform. (The desired reader reaction: “I didn’t know that!”) The opinion section’s job is to persuade. (“Yes, I see the light!”) The job of the Review is to help people see things in unexpected ways. (“I never thought of it that way!”)

I’d say The Economist presents the model for that kind of article. It is a high, a very high bar to reach. Can the Guardian attain that? Yes. The New York Times? Yes. The workaday local paper?

: Related: Charlie Beckett on Wikileaks and the threat of new news. Terry Heaton on news and the story.