News and Internet

News and the Internet:
The need for innovation and change as newspapers transition to the Web
Newspapers throughout the country have an edition of their paper on the Internet. What effect does having a net edition have on circulation, readership and the printed version of the paper?
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Introduction: Newspapers in print and on the Internet
Internet technology may help newspapers survive the death of their print editions
and find new life as online publications. By ignoring the Internet in its infancy, American
journalism's saddest business story these days is about itself. Printed newspapers are
slowly dying and newspaper companies now view Internet publication as a way to keep
themselves alive. Papers have lost much of their advertising revenue to online
competitors and readership is declining as younger readers shun printed papers and
instead turn to the Internet for news. And while it's true that most American newspapers
have online editions of their paper publications, it's important to understand that
newspaper publishers created digital versions only with great reluctance. Many hoped the
Internet would only be a fad. The industry was slow to recognize the importance of the
Internet and the changing information consumption habits of its readers. This means
online publications are the industry's new hope for a profitable future, but many problems
remain as papers struggle to make the leap to online venues.
What effect does having a net edition have on circulation, readership and the
printed version of the paper? The primary answer is a change in resource allocations
from printed editions to online publications. Papers are much more likely to hire staff
with experience in Web page design, Stratus 3-D graphics, and Flash multimedia.
Reporters are mandated to write stories for the Web site first and the print edition second.
Print editions are being maintained, but in some cases quality has been reduced. Some
papers, like the Detroit Free Press and The Detroit News, are cutting back on home
delivery and will "deliver to homes only on Thursdays, Fridays and Sundays, the heaviest
days for advertising and the most popular papers for readers," a move that will allow the
papers to "shift resources to their Web sites, (and) develop new ways to deliver
information digitally" (Free Press, 2008). It remains to be seen how print readership will
react to these changes, but one suspects that readers, forced to forego delivery for half the
week, will find ways to do without home delivery during the other half.
Newspapers must gain expertise in three Internet technology-related areas if they
wish to survive on the Web: 1) the Internet's technological capabilities to expand
presentation, 2) the reading habits of Internet users, and 3) ways to attract advertisers and
make online as profitable as print once was. With this knowledge, newspapers will be
better able to establish accurate, trustworthy, accessible Web sites and allow journalism
to make a successful print-to-Web conversion.
Background: An industry in transition
Before exploring the new world of online journalism, we must first understand
how the Internet affected the print edition. Newspapers were once extremely profitable,
with many companies commanding high stock prices and boasting profit margins of 20
percent or more. What gave newspapers their value? Much of it came from a geographic
monopoly on high-revenue advertising, most notably classified ads. But new online
businesses such as Craigslist and Monster.com have lured classified ad dollars away from
newspapers. The current economic recession means even fewer advertising dollars are
flowing to newspapers. "Between 2005 and 2012, eMarketer projects that newspaper ad
revenue will decline from $49.4 billion to $28.4 billion, a plunge of 42.5 percent"
(Callahan, 2009). Decreased advertising revenue makes newspaper companies less
attractive to Wall Street, which results in steep declines in stock value and threatens the
existence of the companies. Newspapers have high business costs, which include printing
presses, paper, delivery transportation, research and fact-checking, legal representation
and employees -- reporters, editors, photographers, and graphic artists.
A second problem facing newspapers: Younger readers don't like to read them.
"Young people are much less likely than their older counterparts to read a daily
newspaper. Currently, only 15 percent of those younger than 25 report having read a
newspaper yesterday" (Pew Research). That's a significant portion of a valued
demographic that is not attracted to newspapers. It's also a demographic that is strongly
drawn to the Internet. No doubt advertisers will wish to follow them.
A related problem with younger readers and the Internet involves a shift in
personal preferences away from printed paper. In focus groups organized by The
Washington Post in 2004, "participants declared they wouldn't accept a Post subscription
even if it were free. The main reason: They didn't like the idea of old newspapers piling
up in their houses" (Penenberg, 2004). Rahaf Harfoush, a student at Amherst College,
offers another explanation of why she and her fellow students don't read newspapers:
"Why would I? They come out once a day, they don't have hot links, and they're not multimedia. Besides, who needs that black gunk all over your fingers?" (Tapscott, 2008).
Potential benefits: The promise of online journalism
In response to the major problems facing newspapers today, the industry has
embraced the concept of online publication, grudgingly at first, later with greater
enthusiasm. But these newly christened "media companies" are learning the hard way
that online publication is more than simply placing print-version stories on the Web.
Online publication offers readers an astounding variety of features they can't get on the
printed page and expands on the advantages of television and radio. Readers can pick and
choose their own content, in effect becoming their own news managers. Readers
seeking information can also "retrieve it how they want (eg, cell phone, personal
computer) and where they want and become actively involved in that information"
(Foust, 2008).
Content providers can update the news 24 hours a day, and use HTML
links to connect to other Web pages with related information. Photo galleries, crafted
through Adobe Photoshop, can present a variety of images, many more than could be
offered on a static newspaper page. The multimedia Flash program can add interactive,
animated graphics to explain a process or relate layered information. And video and
sound, with Flash or other programs such as Final Cut Pro, can add another dimension
entirely -- one that gives the reader almost direct access to the news scenes presented.
Technology, in the form of new Web devices such as Kindle, also may help
newspaper fortunes. Kindles are hand-sized electronic readers with screens large enough
to display pages of text from wireless downloads. Introduced by Amazon, the devices
originally were intended for book readers, but their applicability has expanded to include
newspapers and other printed material on a subscriber basis. USA Today, for example,
recently introduced a new production system of story tagging that allows Kindle readers
to access the paper online. However, the availability of these features is not enough.
They must be developed to make news consumption easier and more inviting to the
reader. This will be vital in attracting and keeping audiences and advertisers.
Further research required: A changing audience, a new economy
A print story may not succeed online because online readers have different
reading habits than those of print. They don't read; they browse. So online writing and
presentation must be "in a style that gets them the information they want quickly"
(Glatzer, 2008). It's even more of a challenge to attract younger online readers,
especially those weaned on action video games, because they have better visual
perception and can process information more quickly. A perception test between
non-video game players and video game players showed the game enthusiasts
had "an increased ability to process information over time" (Green, 2003). Since video
games are interactive, their nature "influences how Net Geners absorb information, too.
They want a two-way conversation, not a lecture. . They like to contribute to the
conversation" (Tapscott).
But getting online readers in vast numbers isn't enough. Online newspapers still
need ways to make themselves profitable. Although more papers have online sites, most
of them free of charge, advertisers aren't flocking to them with requisite dollars. "Even at
The New York Times Co., whose nytimes.com gets more unique visitors than any
other paper's site, print revenue still made up 90 percent of last year's total." (Ives, 2008).
In essence, print publications, beleaguered by fewer subscribers and falling advertising,
still bring in most of the revenue. But that won’t last forever because overall revenue
continues to decline. In answer, newspapers are searching for ways to match online
advertisers with targeted demographic-specific readers.
In lieu of advertising revenue, the idea of a paper's Web site for free probably will
change. For example, Wall Street Journal print subscribers can access the paper's Web
site as part of an annual subscription package, but non-subscribers must pay to fully
access the Web site. Other papers may adopt such a model. However, "the biggest worry
is whether consumers who've grown used to reading newspaper Web sites for free can be
persuaded to pay $10 or more per month for an e-newspaper subscription" (Mcginn,
2008). One paper has taken this idea farther than the Journal: The Christian
Science Monitor, a respected 100-year-old newspaper published five days a week and a
seven-time Pulitzer winner, will become an electronic subscriber publication with a
printed Sunday edition starting in April 2009. "Like the new print weekly, the new daily
electronic edition will be offered by subscription. It will be a multipage PDF file sent by
e-mail to subscribers Monday through Friday" (Cook, 2008).
Conclusion: Hard work, hope for the future
What should newspapers do as they continue to make forays into online
publication? Researcher John Horrigan says they need "the right business model that
integrates the online experience into what they do. We're seeing the beginnings of a
significant segment of the population having their daily newsgathering habits formed by
what they see on the Internet" (Johnson, 2007). So to thrive in the online world,
newspapers must fully understand and exploit the unique properties and opportunities
presented by the Internet. They must understand the new reading habits of younger
readers and refashion their presentation models to complement those traits. They must be
willing to explore new technologies such as Kindle to reach a wider audience. And
finally they must offer their own unique product -- trustworthy, accurate coverage --
as a way to attract and maintain their readership and bring back advertisers.
"I have been in the newspaper business since 1964 and during that entire time
I've been told it's a dying industry," political columnist Molly Ivins said in 2006
(Jacoby, 2007). With a new push toward the Web and the help of Internet technology,
newspapers may have a greater chance of survival.
Reference List
Callahan, S. (2009, January 19). Can newspapers still deliver? BtoB. Retrieved February 17, 2009, from http://www.btobonline.com/ apps/pbcs.dll/article?AID=/20090119/FREE/301199990/1109/FREE BtoB is an online authority on marketing strategies for businesses.
It also contains stories on current changes in business practices.
Cook, D. (2008, October 28). Monitor shifts from print to Web-based strategy. Christian Science Monitor. Retrieved February 18, 2009, from http://www.csmonitor.com/2008/1029/p25s01-usgn.html This straight-from-the-source article appeared in the Christian Science Monitor as a report about its print-to-online changes.
Detroit Free Press and News redirect staff, resources to digital delivery of news.
(2008, December 16) Detroit Free Press, p.1. Retrieved February 19, 2009, from http://www.freep.com/article/20081216/FREEPRESS/81216032 A second straight-from-the-source article reviews how the Free Press and the News of Detroit will cut home delivery virtually in half.
Foust, J. (2008) Online journalism: Principles and practices of news for the web. Scottsdale, Arizona: Holcomb Hathaway.
This is a college textbook introducing students to online journalism. It reviews the history of online journalism, looks at its future, and provides instruction on evaluating and creating journalistic Web sites.
Glatzer, J. (2007) Interview with Steve Outing. Retrieved February 17, 2009, from http://www.absolutewrite.com/freelance_writing/steve_outing.htm Absolutewrite.com is an online source devoted to the craft of writing in all venues. This interview was with a respected source on online media.
Green, S.C. and Bavelier, D. (2003, May 29). Action video game modifies visual selective attention. Nature, 423, pp. 534-537. Retrieved February 17, 2009, from http://www.bcs.rochester.edu/people/daphne/greenandbavelier.pdf Nature is an international science journal published weekly. It is heavily reviewed and is acknowledged as a leading authority on scientific matters ranging from chemistry, disease, life science and human behavior.
Ives, N. (2008, April 28). The newspaper death watch. Advertising Age, p. 1.
Retrieved February 17, 2009, from http://www.lexisnexis.com.mutex.gmu.
edu/us/lnacademic/results/docview/docview.do?docLinkInd=true&risb=21_T582 9211995&format=GNBFI&sort=BOOLEAN&startDocNo=1&resultsUrlKey=29 _T5829211999&cisb=22_T5829211998&treeMax=true&treeWidth=0 &csi=8093&docNo=4 Advertising Age is a respected publication reporting news and offering analysis on advertising practices of a variety of businesses.
Reference List (continued)
Jacoby, J. (2007, October 28). Will newspapers survive? The Boston Globe, p. F9.
Retrieved February 17, 2009, from http://www.boston.com/news/globe /editorial_opinion/oped/articles/2007/10/28/will_newspapers_survive/ This is an opinion piece that ran in the Boston Globe, one of the leading newspapers in the U.S.
Johnson, P. (2007, March 12). Web revolution leaves newsgathering in lurch. USA Today, p. 4D. Retrieved February 17, 2009, from http://www.usatoday.com/life/ columnist/mediamix/2007-03-11-media-mix_N.htm USA Today is the nation's largest newspaper.
Mcginn, D. (2008, September 15). A no-paper newspaper. Newsweek, p. 84.
Retrieved February 17, 2009, from http://www.newsweek.com/id/157580 Newsweek is a leading weekly news magazine in the U.S. focusing on general and political news of the day.
Penenberg, A. (2004, November 24) Newspapers should really worry. Wired. Retrieved February 17, 2009, from http://www.wired.com/culture/lifestyle/news/ 2004/11/65813 Wired is a monthly magazine that reports on technology and its influence in the U.S., with special focus on culture and economic and political issues.
Key news audiences now blend online and traditional sources. (2008, August 17).
Pew Research Center for People and the Press. Retrieved February 17, 2009, from http://people-press.org/report/444/news-media The Pew Research Center is a exemplary authority on the news media. Its surveys are meticulously conducted and considered benchmarks in the industry.
Tapscott, D. (Winter 2008) Net geners relate to news in new ways. Nieman Reports, 18-19. Retrieved February 17, 2009, from http://www.nieman.harvard.edu /reportsitem.aspx?id=100674 Nieman Reports is published quarterly by Harvard University and is considered a leading authority on trends and changes in the journalism industry