As struggling newspapers continue searching for ways to survive, a variety of what would once have been considered radical ideas are under the microscope. The (well-documented) problem for newspapers is that readership is gravitating towards the online and digital world. But even as many newspapers’ websites are reporting increased traffic, revenues slump. Online advertising simply doesn’t rake in the revenue as print advertising (the recession has severely hurt online advertising, but the rest of newspapers’ problems were obvious for years before the recession began). The Washington Post Co. lost nearly $54 million the first quarter of 2009, while the New York Times Co. lost more than $74 million. Several significant newspapers have stopped the presses, including the Denver-based Rocky Mountain News and the Seattle Post-Intelligencer.
Community-based, most metro and regional newspapers aren’t in the same dire straits as their larger counterparts — not yet anyway — but it’s safe to say that virtually every newspaper is struggling. A good chunk of that was doubtlessly brought on by the recession, but the key there will be how much of the advertising dollars comes back once the economy has recovered.
So, what to do? It seems that the newspapers of today will still be around as news-gathering organizations tomorrow. It’s hard to imagine the New York Times not existing, even if the printed page were to become obsolete. As the medium for delivering news shifts from the press to the web, the key for newspapers’ survival is finding a business model that works. And therein lies the problem. So far, it’s been a tough find. Several newspapers have throttled online content because it didn’t work. Others have moved strictly to the Internet, but have found the going rough. To this point, at least, advertising alone doesn’t seem to cut it. Which leaves the dreaded pay-to-play option.
To be fair, online subscriptions have also been tried and failed. The Chattanooga Times Free Press is just one example of a newspaper that attempted to charge for its online content and it didn’t work out. But, by the same token, there are specialty sites — Brent Hubbs’ VolQuest.Com, for example — where thousands of viewers happily pay their monthly dues to read what is said. The secret seems to be offering readers in-depth, unique perspective on their communities that they cannot find anywhere else. That can be just as true of the hometown weekly as it can of the big city daily.
Or, something new could be tried. But no matter what, it would seem that if newspapers are going to remain financially viable, giving away content for free has to end at some point.
My father, who is always tossing out ideas, suggested several months ago a subscription-sharing model: Charge for online content, but a subscription to one newspaper’s online version would give readers access to other online versions in the area. I stored that one away for later consideration. Then, in the June-July issue of the American Journalism Review, I read a letter from Bill Will of the Washington Newspaper Publishers Association, who is advocating something similar.
“Subscribe to your daily newspaper,” says Will. “That subscription also buys you online access to the Web site of every other daily newspaper; your user ID tags you to your “home” newspaper. If you visit other newspaper sites, that can be tracked and the host newspaper gets a tiny cut of the ad revenue from the page views it produces.”
Would it work? Who knows. It’s probably worth a shot, though, and someone undoubtedly will try it. Another idea that has been floated around is the iTunes model — just as iTunes allows customers to pay 99 cents for a single song rather than purchasing an entire album, this newspaper model would charge readers for each article they read — say 5 cents or 10 cents. Their credit card would be on file with their log-in information, and they would be billed after their session ends, as iTunes does, or even on a monthly basis.
It’s going to be interesting to see where newspapers go in the years ahead. There are a lot of things that I like about newspapers, but I don’t know that I’ll regret the day when delivery of news goes completely to the Internet. There are a lot of benefits to newspapers that a webpage cannot replicate, but there’s also a limitations that don’t exist online. On the web, the sky is literally the limit for news coverage and delivery of that news in multimedia packages. It’s going to be fun. As long as we can make enough money to pay the bills.