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News about Newspaper Industry

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Change is inevitable. Only thing constant about life is change. Such has been the world of business too. Businesses have to
constantly design and align their starategies to remain profitable, and to survive in the fast changing landscape of the
world. With advent of Television, and it’s increasing popularity Radio were in danger of becoming a product of yore. Until
they rediscovered themselves. Trying not to compete with television, they looked out for niche customers. In cities they
tried to target people in four wheelers. They restrategies the content of the show also.
Now, newspaper industry faces similar challenges. With advent of internet, and it’s exponential popularity, newspapers tried
to be in the same note, and created their online version. With people spending bulk of their waking hours online, number of
people who prefer not to have physical newspaper is bound to increase. Now newspaper, to maintain their profitability in
future have to think of some novel strategies, as revenue generated from advertisements is not enough. Few newspapers, The
NewYork Times (2005-07), for a while tried to implement subscription model. It didn’t go well with online readers who already
have vast amount of information available online for free, and who prefer to have any online content for free.
In an article published in http://www.editorandpublisher.com, it’s argued that the cause is embedded at sub-conscious mind. We
attach monetary value to things we can own, we don’t attach value to things that are ephemeral (online news content). We pay
for newspapers because of it’s physical presence. It’s immaterial whether it’s worthless afterwards or not.
With the assumption that the above theory is correct, it was suggested that online news providers might try their luck with
building application. Application that enhances the user experience of reading information. It could be application for black
berry, mobile also, as number of users in these platforms are increasing rapidly.
Another way for them to generate revenue would be through social, networking pressure. There are two way:
a:) Freenium strategy: Offer free content as well as paid content with obvious difference in quality.
b:) Pursuade people to voluntarily donate money. Here social pressure will play a vital role in generating revenue
where in a social network this information is known to all.
If I am not wrong, The Newyork Times tried model B as well. But they failed. The reason for failure was attributed to the
fact that the news provider is a publicaly traded profitable enterprise. Now,it’s highly unlikely that people will make
donation, a vicarious way of doing social service, to a publically traded profitable enterprise. If it would have been a
privately owned, and they would have projected themselves as someone who provides news content for the public, the chances of
getting donation would have been higher.

Change is inevitable. Only thing constant about life is change. Such has been the world of business too. Businesses have to constantly design and align their starategies to remain profitable, and to survive in the fast changing landscape of the world. With advent of Television, and it’s increasing popularity Radio were in danger of becoming a product of yore. Until they rediscovered themselves. Trying not to compete with television, they looked out for niche customers. In cities they tried to target people in four wheelers. They restrategies the content of the show also.

Now, newspaper industry faces similar challenges. With advent of internet, and it’s exponential popularity, newspapers tried to be in the same note, and created their online version. With people spending bulk of their waking hours online, number of people who prefer not to have physical newspaper is bound to increase. Now newspaper, to maintain their profitability in future have to think of some novel strategies, as revenue generated from advertisements is not enough. Few newspapers, The NewYork Times (2005-07), for a while tried to implement subscription model. It didn’t go well with online readers who already have vast amount of information available online for free, and who prefer to have any online content for free.

In an article published in http://www.editorandpublisher.com, it’s argued that the cause is embedded at sub-conscious mind. We attach monetary value to things we can own, we don’t attach value to things that are ephemeral (online news content). We pay for newspapers because of it’s physical presence. It’s immaterial whether it’s worthless afterwards or not.

With the assumption that the above theory is correct, it was suggested that online news providers might try their luck with building application. Application that enhances the user experience of reading information. It could be application for blackberry, mobile also, as number of users in these platforms are increasing rapidly.

Another way for them, to generate revenue would be through social, networking pressure. There are two way: a:) Freenium strategy: Offer free content as well as paid content with obvious difference in quality. b:) Pursuade people to voluntarily donate money. Here social pressure, that your contribution is known to all ,will play a vital role in generating revenue .

If I recall it correctly, The New York Times tried model B as well. But they failed. The reason for failure was attributed to the fact that the news provider is a publicaly traded profitable enterprise. Now,it’s highly unlikely that people will make donation, a vicarious way of doing social service, to a publically traded profitable enterprise. If it would have been  privately owned, and they would have projected themselves as someone who provides news content in the service of  public, the chances of success would have been higher.

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Written by SK

September 19, 2009 at 8:05 pm

Posted in Media

Tagged with , ,

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