News business models:What can we try next?

Trends in Communication & Information TechnologyJOUR 4871-003

Why a new business model for news is needed

Why a new business model for news is needed

Most U.S. print newspapers will be gone in five years

“Circulation of U.S. print newspapers continues to plummet, and we believe that the only newspapers in America that will survive in print form will be at the extremes of the medium – the largest and the smallest,” said Cole. "It’s likely that only four major daily newspapers with global reach will continue in print: The New York Times, USA Today, the Washington Post, and the Wall Street Journal. At the other extreme, local weekly newspapers may still survive, as well as the Sunday print editions of metropolitan newspapers that otherwise may exist only in online editions.”

Why a new business model for news is needed

In-class team exercise:

Print edition 7 days a weekads, home subscriptions, retail sales, retail ad insertsSFGate.com website: free access, ad supported49ers Insider digital tablet magazinefree to print subscribers; $4.99/season for othersMobile appsfree to download, free content, ad supportedE-editionsubscriptions

You are publisher of the San Francisco Chronicle, and it’s in financial trouble. You are in charge of designing a new business model for the digital age.

This is your current situation:

Editorial staff down half from highest levelPrint circ.: 2012 = 229K M-F2000 = 457K M-FClassified $ down 70% since 2000Ad revenue: typical of industry...

In-class team exercise:

Paid print edition, 7 days a weekReduce to 3 print editions a weekPrint only weekend/Sunday editionShut down print edition (online only)SyndicationApply for foundation grants (big investigative projects)Smartphone/tablet app (free)Smartphone/tablet app ($)Lay off staff

Who? _____________________Hire more staff

EditorialTech, developers, programmers

Do social-media marketing for local businessesOther _____________________

What will your business model look like and consist of? Here’s a list of most available revenue strategies available to save the San Francisco Chronicle:

SFGate.com website: Free contentDisplay adsTargeted/contextual adsSell memberships (free content, member benefits)Hard paywallPartial hard paywall (some free content)Metered paywallPorous paywallDigital subscription (web, tablet, smartphone access)Niche paid ($) websites (e.g., NFL)Sell by article/video (micropayments)E-commerce (sell stuff)Join web news subscription package ($)Other _____________________

Team members:__________________________________________

Free news websites

Hard paywall

Semi-hard paywall

Metered paywall

10 free articles per month - then you’re asked to pay

Porous paywall

Clicking to NYTimes.com article from these sourcesdoesn’t count against your 10-articles-per-month limit (non subscribers)

FacebookTwitterBlogs, Tumblr, etc.Google web searchGoogle NewsPretty much, a link to NYT article from anywhere (other than NYTimes.com)

News membership

Online only (dump print edition)

Became online-only in March 2009; drastically reduced news staff

3 print editions a week | digital 7 days

Reduced to 3 print editions a week this week (Sept. 29, 2012)

Paid-subscription news aggregation

This service didn’t survive. Launched in January 2011 with $12 million in funding from the

New York Times, Washington Post and Gannett.