Publishers’ Knee-Jerk Reaction to the Web

We have many posts on this blog regarding the business model newspapers should take in order to survive in the digital era. This post brings you a publisher’s point of view. John Temple was the publisher of the Rocky Mountain News which folded in 2009. Temple talks about the Denver market to illustrate his point: Even if the state’s largest newspaper, The Denver Post, chose to put most of its content behind a wall and join a pay plan, readers would have many credible options. At 4:30 on a Saturday afternoon, the paper’s home page has two stories with that day’s time stamps on it. But the area has at least four TV station Web sites, one of which can credibly argue that it’s the market leader online. It also has a news radio station, an NPR station, an alternative newspaper and an entertainment Web site that compete in the traditional news sphere. So if the Post goes behind some kind of wall, will its users follow? I don’t think enough will for what they and other metro newspapers offer today. But if news organizations created Internet content and services that their readers and advertisers valued, new revenue might appear. It’s worth looking at other businesses for lessons. Costco charges a membership fee before customers can take advantage of the great values it offers. Users pay it willingly once they see the benefits. I think newspapers could take a page from Costco's book. But instead of offering a range of benefits to their users, newspapers are still selling subscriptions to their print products rather than membership in an information company that can help people do everything from save money on groceries to pick the best school for their child to report road conditions in real time. How many newspapers have all the e-mail addresses and cell phone numbers for every household they serve? And how many actually ask the owners of those addresses and numbers what they’d like to receive and when? Finding ways to charge for what they deliver now reflects a limited vision for newspapers. Charging readers for delivering what they want, where they want it and when they want it as members (i.e. participants) of a community stands a much better chance of success. It’s easy to point the finger at Google and ask righteously what that innovative company (whose software I'm using to write this blog) is going to do to rescue them. But it might be worth it for the publishers to listen to what its CEO told them recently. How many of us have sat in front of our computers waiting for a newspaper Web site to load? Would you pay for that level of speed? It's time to look for ways to build the business, not to build walls around it.