Online News
Wednesday, February 18th, 2009The Examiner newspaper said goodbye to Baltimore this weekend with its final edition. Ad revenue wasn’t enough to keep the free paper in circulation. At the Baltimore sun, circulation is down and more than 200 jobs have been cut in the last 18 months. Reports indicate that on a national basis, overall newspaper based readership is down about 3% from last year.
The interesting side to all of this and the story you aren’t hearing much about is that online news sites are dramatically growing in readership. According to a recent Nielsen online survey, online readership on the top 10 news www sites is up an average of 16% with 40 million unique visitors in December 2008. This is up from 34 million in December of 2007. Total viewers peaked at 252 million in the same period, compared to 199 million in December 2007.
Our desire to be informed appears to be growing. From being connected via PDA, cell, internet to print – we want to be up to date. What is changing is how we get our news. Personally, I get a ton of news on my phone and via email alerts. The convenience of online is hard to beat. Online news is real time and can be targeted to a specific person via personalized alerts. Another major factor is that internet news is free.
What does this mean to newspapers? The dominant trend is get news online, so newspapers need to follow that trend and continue to shift more resources to their online presence. How to shift the business model is going to be a challenge. It is difficult to name more than a few online news outlets that have “figured it out”. Most appear to have a loyal following for specific content either at the national (Wall Street Journal) or the local news level.
There has been some discussion regarding the charging for access to news content or charging micropayments. Micropayments would involve charging by the story in a manner similar to the iTunes method of charging by the song. Either business model will be difficult to make profitable as most news stories are carried by multiple outlets and if one continues to offer free news, it will impossible for the other news agencies to charge for the same story.
The green movement is also making the use of paper frowned upon when another means of delivery is possible.
All of these signals are pointing to the need for news organizations to move to online delivery and to determine a valuable niche that can generate profits. The most successful organizations are going to figure it out soon and capture this trend to their advantage.





