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Suw Charman-Anderson

Suw Charman-Anderson

Suw Charman-Anderson is a social software consultant and writer who specialises in the use of blogs and wikis behind the firewall. With a background in journalism, publishing and web design, Suw is now one of the UK’s best known bloggers, frequently speaking at conferences and seminars.

Her personal blog is Chocolate and Vodka, and yes, she’s married to Kevin.

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Kevin Anderson

Kevin Anderson

Kevin Anderson is a freelance journalist and digital strategist with more than a decade of experience with the BBC and the Guardian. He has been a digital journalist since 1996 with experience in radio, television, print and the web. As a journalist, he uses blogs, social networks, Web 2.0 tools and mobile technology to break news, to engage with audiences and tell the story behind the headlines in multiple media and on multiple platforms.

From 2009-2010, he was the digital research editor at The Guardian where he focused on evaluating and adapting digital innovations to support The Guardian’s world-class journalism. He joined The Guardian in September 2006 as their first blogs editor after 8 years with the BBC working across the web, television and radio. He joined the BBC in 1998 to become their first online journalist outside of the UK, working as the Washington correspondent for BBCNews.com.

And, yes, he’s married to Suw.

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Sunday, July 20th, 2008

What has prevented newspapers from being successful in the digital age?

Posted by Kevin Anderson

In the daily flood of links that stream by me via RSS or Twitter, I noticed a post by Mark Schaver, the computer-assisted reporting director of the Louisville Kentucky Courier-Journal, in which he challenged the view of newspaper executives as short-sighted and out-of-touch. He pointed to a couple of projects in the US, Videotex and Knight-Ridder’s early investment in Netscape (then Mosaic). Mark said that calling news execs short-sighted and lacking in vision is overly simplistic.

What I am saying is that powerful economic forces, forces that are vastly more complicated than the simplistic drivel about newspaper curmudgeons and their resistance to change, are behind the news industry’s malaise today.

I agree with him. It is overly simplistic.

However, Videotex is a fine example of a disastrous technical project driven by the newspaper industry. The system was too slow, cost too much and didn’t provide anything that couldn’t be found easier in some other form. As often happens in the US, the FCC failed (or refused) to set a standard, hoping that the market would sort it out, and NTSC - the North American television standard - on which some of these projects were run provided too low of resolution to read text on televisions unlike the Ceefax system on the higher resolution PAL video standard in the UK. Maybe it was ahead of its time, and it’s definitely before my time. But I’ve never heard anyone in the industry hold up Videotex as an example of how to do a technical project.

Knight-Ridder was forward looking. They grasped a lot of the innovations early, partially because of their presence in San Jose. They even moved their headquarters from Miami to San Jose to plug into the new media revolution. In 1990, Robert Ingle, executive editor of the San Jose Mercury News wrote a memo that sounds eerily similar to the strategy that most newspapers are following now:

Give information to readers however they wanted it, integrate the print and online operations, and dream up new forms of advertising.

Knight-Ridder were part of the New Century Network, which was supposed to position the newspaper industry for the 21st Century. But there is a but. As BussinessWeek reported of the Network on its closure in 1998:

In a ballroom at the Newspaper Association of America convention in Chicago, a thousand bottles of champagne emblazoned with ”New Century Network: The Collective Intelligence of America’s Newspapers” awaited the hordes expected to come to toast the watershed new-media joint venture. When fewer than 100 people showed up, Chief Executive Lee de Boer made an abbreviated speech before retreating. ”They built a business and nobody came,” says David Morgan, president of the online ad agency Real Media Inc.

The reception was the first public humiliation for New Century Network, but only one in a series of blunders that culminated in the company’s abrupt shutdown on Mar. 10 (1998). Created in 1995 to unite newspapers against Microsoft Corp. and other competitors girding to woo electronically advertisers and readers, New Century Network came to embody everything that could go wrong when old-line newspapers converge with new media.

Knight-Ridder should have been leaders in how to do it right. As Matt Marshall wrote in 2006 as Knight-Ridder was on the eve of ceasing to exist:

The real irony of this situation is that for 15 years KRI was, by far, the most innovative newspaper company in the country, including its early experiments in teletext and having the first online newspaper (the Mercury News on AOL in the mid 90s).

But as Matt says in the title of his post, sometimes innovation is not enough. Newspapers continued to be newspapers, just online, as he and most of us have said over the last decade. It is proving for some newspapers a fatal mistake, although one that many of us saw years ago. And I’d agree with Matt that it’s easier to imagine a new entrant making the changes necessary to survive in this new world rather than an established newspaper.

As my friend and former colleague Alf Hermida points out from Readership Institute data, people do not have the same connection with their local newspaper websites that they do (or possibly did) with their local newspapers.

Obviously, something isn’t quite working when it comes to newspapers, ‘new’ media’ and innovation. As Mark Schaver is correct to point out, this is probably not for lack of trying at some newspapers. I know that a lot of journalists are exhausted and frustrated by reorganisations, restructurings and new strategies. I ask the following question not pretending that I have all of the answers but because I’d really like to hear people’s experience: What has prevented newspapers from being successful in the digital age?

Two years ago, Steve Yelvington wrote a post after hearing someone refer to “NCN nostalgia”, NCN being New Century Network. He said a few things that might speak to my question:

  • “But there was something else at work: technology was evolving faster than anyone’s business vision.”
  • “The notion that a we-tell-you news cartel would be relevant in a conversational universe may already be obsolete.”

The newspaper industry hasn’t adapted to the pace of news online or the pace of technological change. More than that, I think Steve is right that business vision hasn’t kept pace with technology. In the wake of the newspapers ‘are worth fighting for‘ discussion kicked off by Jessica DaSilva, Pulitzer winner John McQuaid said:

Meanwhile, the default attitude of newspaper management is still caution and probity. And if you point a gun to the head of caution and probity and say “innovate or die,” don’t expect wonderful things to happen. Instead, expect buzzwords.

Newspapers have only recently woken up that the real competitive threat isn’t from other newspapers or print media, not even from TV but from new digital businesses that might not have even existed a few years ago. Even though Robert Ingle and others saw the competitive threat 18 years ago, there has not been a sense of urgency until the last 18 to 24 months.

However, unlike John McQuaid, I would argue the over-cautious nature of journalism change is not just about boardroom conservatism. Print newsrooms are some of the most conservative places you’ll find. Journalists are paid sceptics (some might say cynics), and they approach their own business with that mix of scepticism and cynicism.

Some things have changed since Robert Ingle wrote his prescient memo on his Apple ][ in 1990. In the 1990s, tech was expensive, and I heard a lot of journalists argue that the internet was a money sink not a money maker. There was some truth to that, but very few disruptive technologies have a clear business model at the beginning. Did Google have a magical money-spinning idea with search? No, not until AdSense. But now, smart technology buys and clever use of open-source technologies can bring the cost of failure down to almost the petty cash level. Just look under the hood of Google’s massive data centres and you’ll find lots of commodity hardware lashed together with a lot of open-source technologies.

The newspaper industry also still seems to be thinking in industrial terms. Too many of the strategies I see are huge, heavy, expensive strategies instead of light-weight, nimble and low cost digital strategies. By the time the strategies are in place, the state of the art and, more importantly, audiences have already moved on. More importantly, you can attack the business model problem from two fronts. You can find new ways to make money, but you can also find new ways to make high-quality, compelling content with less money and not just with less staff.

Things are changing. A few newspaper companies are making the investments in flexible, scalable technology to prepare them for the future. They are getting serious about developing new income streams. They are freeing their content and taking it to where the audience is instead of forcing the audience to come to destination sites. But for some newspapers, it’s too late.

What would you do and what are you doing to ramp up the pace of change at your company?

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4 Responses to “What has prevented newspapers from being successful in the digital age?”

  1. John Yenne Says:

    Joe Kraus of Excite, from the book Founders at Work, says it best — even though he was talking about Excite in its failure to recognize the business value of search: “Existing companies biggest problem is legacy. Period. They can’t focus on new businesses because they’ve got to manage their old ones.” That’s been the big issue for the newspaper industry. Their problem is the economic, structural, even institutional, model of newspapers. Not necessarily a “lack of vision.”

  2. yelvington Says:

    As I read this and think back to the videotex era, it strikes me that great energy went into advancing visions that turned out to be not quite on target, when the smarter move might have been to spend less and listen to the marketplace a little more.

    The K-R loss on Viewtron was just staggering in that era, and I think it frightened a lot of news companies away from experimentation.

    And I recall a quote from a K-R executive in the wake of Viewtron’s failure. He was disgusted — I think that’s the right interpretation — that people ignored the great newspaper content that was made available to them, and gravitated toward services that let them talk about sex. I read that quote in 1993 when digging through Newsbank doing research for the Star Tribune that led to our own online project.

    And I thought to myself at the time: “Only a newspaper guy would find that surprising.”

    So after K-R failed, who was next? Sears, CBS and IBM with Trintex, which became Prodigy. The network was 100% architected on a “we tell you” model, not a “you interact with others like you” model.

    Slow learners.

    This ain’t just another channel. The new players, coming into the game without any frame of reference other than what’s right in front of them, are much more able to recognize that than those of us from legacy media.

  3. Kevin Anderson Says:

    John and Steve, thanks for the comments. Yes, legacy is a hindrance in so many ways. Often, projects that look like what we’re doing are the easiest to achieve politically but not necessarily the moves that we need to make.

    Steve, didn’t you mention looking at how other businesses dealt with their legacy models for the Newspaper Next project?

    I guess it’s current projects like Viewtron that I worry about the most. Large, expensive, slow-to-market projects that cost a lot and are already behind the market before the planning, much less when they launch. It’s bad enough that the projects have to make so much to break even, but after they fail (predictably), they are then used to argue against innovation.

  4. Bradley J Fikes Says:

    I am helping the editors at my paper get blogging right, not just in principle, but in execution. What to do with trolls, how to encourage good commenters, etc. (To their credit, I’ve been intensively blogging on my own time for more than a year, and they’re fine with that as long I include a disclaimer).

    And I’m reminding editors of the need for speed in posting Web stories. They should be immediately read by an editor — any editor — when completed, instead of waiting for the designated editor to emerge from a meeting. We need to take full advantage of the nimbleness of the Web, which few newspapers do because of their legacy infrastructure.

    Reporters can be great conversation leaders and networkers online among those interested in their stories. But they have got to lose their fear of the public, and not let some trolls dominate the conversation. That means being engaged with the audience, something reporters need support from their editors to do.