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Letting Time Solve the Online News Dilemma
The Guardian's John Naughton isn't looking to micro-transactions or licensing fees from search services to solve the online news business model problems that have come to a head recently. Instead, he's simply waiting for capitalism to do its job in killing off the providers who can't cut it. Once that happens, he says, the remaining organizations will be in a far better position to see what web-goers will pay for online news, and he doesn't think it will inhibit the growth of an increasingly information-rich news ecosystem.
"Things have got so bad that Rupert Murdoch has tasked a team with finding a way of charging for News Corp content. This is the 'make the bastards pay' school of thought. Another group of fantasists speculate about ways of extorting money from Google, which they portray as a parasitic feeder on their hallowed produce. ... But what will journalism be like in the perfectly competitive online world? One clue is provided by the novelist William Gibson's celebrated maxim that 'the future is already here; it's just not evenly distributed.' In a recent lecture, the writer Steven Johnson took Gibson's insight to heart and argued that if we want to know what the networked journalism of the future might be like, we should look now at how the reporting of technology has evolved over the past few decades."
It's difficult to keep one's head when all about one people are losing theirs, but let us have a go. First of all, some historical perspective might help. When broadcast radio arrived in the US in the 1920s, nobody could figure out a business model for it. How could one generate revenue from something that could be listened to by anyone for free? Dozens of companies were founded to exploit the new medium, and most of them folded. The problem was solved by a detergent manufacturer named Procter & Gamble, which came up with the idea of sponsoring dramatic serials: the soap opera â" and the mass market â" was born.
What you're overlooking is that newspapers have enjoyed revenues for quite sometime. Granted, they've risen and fallen, they are used to this steady income. Radio wasn't used to this income. Models like brand name advertising and recognition ensured its success. Newspapers have made money off of controlling the distribution channels of a similar model with great results, now they are staring down the barrel of a distribution model that they cannot control. They aren't used to this and they certainly aren't handling it well.
... who could blame them?
What radio saw was a controlled explosion in which they ramped up and expanded across everywhere. That's an easy thing to do because it's positive. What newspapers across the country should be doing is cutting unnecessary jobs, refactoring salaries. Being a columnist is not going to be glamorous any more. The irony is that you're going to be more widely read but be paid less. That might make a lot of people want to quit and find other work
This restructuring must happen or you will die. Marketing and endorsements have been the only card you have played (Murdoch's micro charging is proof he's out of ideas) for the past decade as the internet has exploded. The recession is making this more obvious now than it was last year. You had your chance to invent the new way, now you must act or reduce your work force.
The moral is simple: eventually someone will figure out a business model that works for online news. But it may take some time, and lots of outfits will fall by the wayside in the meantime. That's capitalism for you.
You are wrong. There is an end state where no one figures out a way for the model to work. Newspapers go the way of the buffalo just like drive in theaters. You have done yourself and your kind a great disservice by theorizing this false safety net and are only further lulling them into inaction and unemployment. I am not in your business but I see it from the outside and as a customer, use this advice.
My work here is dung.
Capitalism just maximizes for profit not for equity, not fairness. NPR versus Fox News is a great example of this. Fox News will be going strong for a long, long time; regardless of their bias. NPR could be hurt if the government cut off all their funds.
Saying that capitalism will save the day overly simplistic.
Any reasonable person listening to NPR would recognize the built in ideological slant to NPR.
Well, call me unreasonable then because I recognize little if any slant. And I know you will say that's proof of my political leanings but I don't think it is. I listen to NPR because the rest of radio is complete and utter trash. I don't want to listen to a naked girl rub her boobs on the host on air. I'd rather listen to Wait, Wait, Don't Tell Me or Sound Money ... shows I can't see any liberal bias you speak of. You know in Minnesota, they have at least three different MPR stations that play music. Classical music and independent rock. Commercial free. You're also arguing against that when you argue against public radio.
One listener to NOR said it best in a letter read on the air: "Gays, Aids, and Abortion". You are guaranteed to hear at least one story on one of these subjects every freaking day.
I don't know what NOR is but I'll assume you meant NPR. I grew up listening to A Prairie Home Companion and don't recall any of those topics. I don't know what "Gays, Aids and Abortion" has to do with being liberal, they are all issues that should be addressed by anyone regardless of their political affiliation. They are current topics. Have you heard their coverage of the war in Iraq? I've found that to be very unbiased.
Throw in a story about how wonderful (insert liberal politician here) is and how evil (Insert conservative politician here) is and then add some snooty, witty, and amusing story about some obscure idiot and there you have an NPR broadcast.
You have never listened to NPR. Do you know that a lot of the affiliates switch over to BBC World News late at night? Do you find that to have a horribly liberal bias?
NPR should have their government funds cut off. Let George Soros buy it.
Do you know how much money you pay to NPR? Probably a few cents a month--if that. I don't think they would really care if they lost government funding, probably just push their pledge drive out another day. They get so little from the government and so much from listeners that would like to see any kind of news source free without ads, available everywhere in the country. Think about it, people hand money to them ... they don't have to charge like Murdoch wants to.
They may present more liberal topics than conservative topics but at least they don't use verbage that tries to tell me how to think about them (a la Fox News).
I would bet that if you took a citizen from another part of the world and made them listen to NPR they would see it as pretty damn neutral.
How the parent post got moderated insightful, I'll never know.
My work here is dung.