How to run a news organisation in a down economy

The year has started out with more hand wringing about the predictable (and predicted), but very dire, economic situation of newspapers, particularly in the US. News organisations’ belief that quality will be their saviour is usually the result of projections of their own information consumption patterns and standards for quality on their audience, motivations that their audience may or may not share.

Newspapers are not maintaining the audiences necessary to support their current costs. Steve Yelvington just wrote this post about the bad news for newspapers and rays of hope, which is a comment that he left on Jeff Jarvis’ list of newspaper bad news from 2008:

At the core, it’s not an advertising problem. Local businesses still need to reach potential local customers, and they’re willing (although certainly not eager) to pay for results.

It’s primarily a failure to attract and retain a commercially relevant audience that’s breaking the newspaper business model.

I agree with Steve that multi-platform, multi-revenue stream businesses are necessary to survive, and many publications are in the process of the wrenching change required to achieve that.

But there is another, equally important, way to make the necessary change for news organisations looking to survive in this very challenging economic environment, and that is to disrupt their own costs (and I don’t mean cutting head count even further). While some blame digital technology and the internet for the death of newspapers, I would argue that embracing disruptive digital technology could lead to substantial cost savings.

Off the shelf, pro-sumer gear straddles the line between consumer and professional kit but costs substantially less. Open source software can extend the life of aging computers in the office, can run the servers and handle most CMS functions. Open-source content-management systems might not be ready for the largest sites, but most small- to medium-sized news sites could easily use Drupal or WordPress for their entire site. In the hands of a competent contractor with the occasional tweaking from a third-party vendor, the site will easily cope with moderate traffic.

I even think there is a possible radical model where there is a small office that handles core administrative and sales functions but the journalists are by and large dispersed, tele-commuting as much as possible. They would work as close to the story and their sources as possible and file remotely. They can use Skype or IM to communicate with their managers, and Twitter-like service Yammer to keep in touch with each other and help prevent a sense of isolation. Maybe I’m advocating this because as a journalist who worked in a foreign bureau and often out in the field for several years, this type of working seems natural to me.

A lot of successful digital content businesses already work on this model, and I think that we’ll see more competition in this space from within the industry. In this downturn, digital outcasts made redundant by traditional news organisations will start their own boot-strapped news organisations, potentially pushing many of their former employers to the wall, unless the incumbents radically, not incrementally, remake themselves. It is only a matter of time. The digital disrupters will run very lean, digitally-focused businesses with multiple revenue streams, as Steve suggests.

For a model of the thinking that will drive this type of business, look to this post by Eric Ries HOW TO: Raise Money in a Down Economy on Mashable. He serves as a venture advisor for Kleiner Perkins Caufield & Byers and talks about trying to raise money for a venture in 2004, when scepticism remained after the dot.com crash. His advice is:

The most important thing you can do to improve your chances of raising money in a down economy is to build a great company. A great startup is more than just a miniature version of a great large company. All of its process should be focused on innovating and learning. Today, it’s possible to use a combination of free and open source software, community-generated content, and agile software development to bring new products to market with extremely low cost.

Add professionally created and curated content and apply this model for an innovation-led business, and you’ll find a way out of this perfect storm affecting the newspaper industry. It’s eerily similar to the Newspaper Next project recommendations for good reason.

However, I ask those of you toiling in the industry right now. How close is this disruptive way of doing business to the environment at your news organisation?

  • Is your company focused on learning and innovation?
  • To what extent is your company using free and open-source software?
  • Is your company focused on delivering information while cutting costs?
  • Is your company looking for new ways to partner with and build new relationships with your audience?

Cutting costs doesn’t just have to happen through job cuts. Companies need empower their people to work smarter, spend money more wisely, and focus on doing more with less. There are many ways to achieve this, and I think we’ll see experimentation and innovation this year as the economic crisis deepens. Necessity will be the mother of re-invention.

links for 2009-01-13

Ada Lovelace Day needs you

We are just 95 signatories off reaching our target of 1000 people, all promising to blog about a woman they admire on 24 March 2009. I had originally been a bit worried that we wouldn’t see 13 people per day sign up, but the reaction to the pledge has been just awe inspiring. Now my aim is to get 1000 people within the first seven days – which means that we have to reach our target by 10pm tonight, GMT.

If you haven’t signed the pledge, please do. If you haven’t blogged about it or Twittered about it yet, please do. We have less than twelve hours to hit the target!

links for 2009-01-11

  • Kevin: Fred Wilson writes: "So to me, avoiding the Big Yellow Taxi moment comes down to solving the business model question for microjournalism. Is there a way beyond ads to compensate microjournalists? Subscription seems like one approach but what can you charge for online? Participating in expert networks might be another approach. Speaking and writing books could be a third. My gut tells me that microjournalists are going to have to do more than just post to their blog to earn a living. In fact the blog will probably be the loss leader that keeps them in the game."
  • Kevin: Alan Mutter writes: "With the worst economy in decades compounding a fierce secular contraction of the newspaper industry, the challenge for No. 2 papers will be stiff for standalone papers in places like Boston, Chicago, Los Angeles, Miami-Fort Lauderdale, Minneapolis-St. Paul, Philadelphia, New York and San Francisco."
  • Kevin: Doc Searls talks about how people are still writing about the Cluetrain Manifesto now nine years after it was published.
  • Kevin: It's not the internet that is killing newspapers at the moment, it's the economy and some badly timed financial bets, says Steve Yelvington. "But that doesn't mean print is coming back. Happy days will not be here again. Because as the economic cycle knocks down the newspaper, secular change rushes in to the empty seat at the table. Secular change includes the effects of the Internet, but also market fragmentation, restructuring of the retail landscape, and other changes."
  • Kevin: Mark Glaser writes about a new American-based, and some say, Amerian-focused, international journalism project, GlobalPost. "(The) business model includes site sponsors, who pay for long-term association with the website, as well as syndication deals with newspapers and a $199-per-year premium offering called Passport with more inside information."
  • Kevin: There is no sugarcoating it. The outlook for newspaper publishers in the US is dismal. eMarketer estimates that newspaper advertising revenues declined 16.4% in 2008 to $37.9 billion.

links for 2009-01-09

  • Over at NPR, Andy Carvin is leading a project to extend what we learned from Twitter Vote Report, launched by a humble blog post here on techPresident, to cover the upcoming inauguration weekend, January 17th through 20th, in DC.
  • Kevin: Mindy McAdams, cutting edge multimedia journalism professor. has these observations about video based on a recent study:
    1. A shorter, extremely tight and fascinating video has more chance of being watched; it is more likely to succeed in communicating its message, because more people would finish watching it.
    2. News sites need to put more effort into facilitation of this sampling behavior, and production of long items (videos or text) is counterproductive to that effort.
  • Kevin: This is one of those things that will take a little lateral thinking from journalists, but I hope that computer-assisted reporting vets will see, or possibly even be using something like R. When we're talking about ever increasing amounts of data, helping journalists help our readers make sense of it becomes even more important, and with this open-source language and the myriad of packages to developed by the community, it deserves further investigation by journalists.
  • Kevin: TV is still in a mass media, big money mode, and here is why it's ripe for disruption. "That's the problem with current web programming. On the one hand, you have old-school TV thinking: throw buckets of money at a slick production with huge names and then hope for millions of viewers so you can earn that money back. On the other, you have crazy shut-ins with access to video equipment. Neither, so far, is a very effective money-making scheme. (Leo) Laporte, I think, is the happy medium between "slick production" and "crazy shut-in." "

links for 2009-01-08

links for 2009-01-07

“OK open systems beat great closed systems every time”

The title of this post is a quote, via Steve Yelvington, from Prodigy’s Vice President of marketing around the time that the Web arrived and changed the online game. Usually I just reference links like this in Delicious, but Steve’s post Early to the game but late to learn how to play needs a little more attention.

In the current business climate for newspapers, Steve brings a wealth of experience and history that few folks in the industry have and, as he points out, it is not that newspaper didn’t try to adapt but that they tried to adapt the web to their existing business rather than adapting for the web. Newspapers tried to keep their closed systems as they moved online, locking their content in online services. The web might have arrived ‘pathetic and weak’ but it was ‘open and extensible’, says Steve, and it eventually buried online services like Prodigy, Compuserve and even AOL. He quotes Jack Schafer from a Slate piece titled “How Newspapers Tried to Invent the Web:”

From the beginning, newspapers sought to invent the Web in their own image by repurposing the copy, values, and temperament found in their ink-and-paper editions.

I’ve long fought against the re-purposing reflex of shovelware, mindlessly slapping content from another medium onto the web. As we move to integrated newsrooms, we’re often still treating the web as just another distribution channel that simply has to be optimised for Google. Here is why it isn’t. To quote Steve:

Many of us who were there at the time knew that human interaction, not newspaper reading, would be the most powerful motivator of online usage. Certainly I knew it; I had run a dialup bulletin board for years as a hobby. But as hundreds of newspapers rushed to “go online,” few even bothered to ask basic questions about content strategy. It was, many declared as of they were saying something wise, “just another edition.”

But it’s not.

If human interaction is the ‘killer app’ of the internet, which I agree with Steve it is, how would this make a news site different? It is only in the so-called Web 2.0 era that we finally started adding social elements into our news web sites. And if human interaction is primary motivator of online usage, can we as journalists fail to interact and still hope to remain relevant? Open systems are not just about a choice of technology. The philosophy of open systems is also about how we use technology. Open is a philosophy that drives us to use technology to bolster human interaction. It is why Steve talks about the mission statement of his news site as being to increase the social capital in the communities Morris serves.

Jay Rosen has been doing a lot of thinking about closed versus open editorial systems, and he characterised this comment as one of his clearest comparisons yet of the two systems:

The strength of a closed system is that it has controls, in same sense that an accounting system puts controls in place. Stories are assigned, reported, edited and checked (copy edited) by a team using a protocol, or newsroom standard. These are the hallmarks of the closed system. The controls create the reliability, right?

Versus:

Open systems take advantage of cheap production tools and the magic distribution system of the Web. This leads to a flood of “cheap” production in the blogosphere, some of which is valuable and worth distributing in wider rings, much of which is not. Thus, a characteristic means of creating value online is what I called the intelligent filter to do that sorting and choosing.

If you look at successful open systems, they don’t try to prevent “bad,” unreliable or low quality stories from being created or published. They don’t try to prevent the scurrilous. But the Los Angeles Times would. Typically, successful sites within open systems “filter the best stuff to the front page.” And this is how they try to become reliable, despite the fact that anyone can sign up and post rants.

That way of creating trust (or reliability) is different than the way a closed system–like the health team at Time magazine–does it. Therefore the ethics will be different.

And he talks about hybrid systems, which is where I think some of the most interesting work is going on. We live in an AND world not an OR world, and I fear sometimes journalists’ tendency to paint the world in black and white infects our approach to our own way of working.

For me, I don’t use technology simply because I’m neophilic. I use it because it helps me do better journalism, in a way that is more useful to people in my network, or as Dan Gillmor says, the people formerly known as the audience. The internet as an open system means that my methods aren’t a fixed destination but an ever evolving, extensible process that adapts as the network changes, whether I conceive of the network in terms of the technology or the people I’m interacting with. Through all this my core journalistic values and ethics haven’t changed. That’s the constant.

I’m feeling a little philosophical at the start of the New Year. I am an online journalist. If the road trip I took for the US elections reminded me of anything, it reminded me of the power of networked journalism, which in terms of both the technology and the human connectedness increases almost constantly. Let’s just look at the expanding reach of mobile phones and data. In 1999, I got my first mobile modem and started to be freed from my desk. It ran at 9600 baud, slow even then. In 2009, I used a DSL-class mobile network card, and when I was on the move, I used a Nokia N82, which like the iPhone and Blackberry, allowed me to continue to use key internet services like Twitter, Flickr and Facebook. The network is not only mobile, it is on my mobile.

Open systems are a huge opportunity for journalists, not a threat to our professional livelihoods. We journalists don’t have to limit ourselves to closed systems, we have a vast range of open systems that can support and improve our work. I know that 2008 ended with a lot of anxiety for many journalists, much of it from a sense that our professional lives were out of our control. But by embracing the network, you can start taking back control of your professional destiny.

Join me on Ada Lovelace Day

I’ve mainly stayed away from the discussion of gender issues in technology. I didn’t think that I had any real expertise to share. But over the last six months, after many conversations, it has become clear that many of my female friends in tech really do feel disempowered. They feel invisible, lacking in confidence, and unsure how to compete for attention with the men around them.

Then I see the stupid puerile misogynistic manner with which some of the more powerful voices in the tech community – some of them repeat offenders – treat women, and it makes me very cross indeed. The objectification of women is bad enough when it’s done by the media, but when it’s done by a conference organiser or tech commentator or famous tech publication, what message does it send? Nothing but “You will never be taken seriously, but we might take notice of you if you’re hot.”

But what to do? Well, let’s pull back from the anger a little, and start to look instead at why it might be that women feel less secure in their abilities than most men, and what might help change that. Undoubtedly it’s a complex issue, but recent research may shed some light: Psychologist Penelope Lockwood discovered that women need to see female role models more than men need to see male ones.

Well, that’s a relatively simple problem to begin to address. If women need female role models, let’s come together to highlight the women in technology that we look up to. Let’s create new role models and make sure that whenever the question “Who are the leading women in tech?” is asked, that we all have a list of candidates on the tips of our tongues.

Thus was born Ada Lovelace Day, and this pledge:

“I will publish a blog post on Tuesday 24th March about a woman in technology whom I admire but only if 1,000 other people will do the same.”

— Suw Charman-Anderson (contact)

Deadline to sign up by: 24th March 2009

Ada Lovelace Day is an international day of blogging to draw attention to women excelling in technology. Women’s contributions often go unacknowledged, their innovations seldom mentioned, their faces rarely recognised. We want you to tell the world about these unsung heroines. Whatever she does, whether she is a sysadmin or a tech entrepreneur, a programmer or a designer, developing software or hardware, a tech journalist or a tech consultant, we want to celebrate her achievements.

It doesn’t matter how new or old your blog is, what gender you are, what language you blog in, or what you normally blog about – everyone is invited to take part. All you need to do is sign up to this pledge and then publish your blog post any time on Tuesday 24th March 2009. If you’re going to be away that day, feel free to write your post in advance and set your blogging system to publish it that day.

You’ll notice that I’ve asked for 1,000 people to sign the pledge, which is an ambitious number. Indeed, PledgeBank makes a pretty strong point during the pledge creation process of asking people to limit their requests to 20 people, but I am sure that over the next 77 days we’ll be able to find another 989 people to join us!

What can you do?
Obviously, and most importantly, please sign the pledge. If you already have a blog, then it will be easy for you to take part. If you don’t have a blog, this might be a great reason to start one! It’ll take you about five minutes to get yourself set up on WordPress and then you’ll be up and running!

Please also consider putting a pledge badge on your blog now or writing a short post about the project to help spread the word. You can also use the “Share This” link on the pledge itself to send the pledge to your favourite social bookmarking or news site, or to email it to a friend. The more people who send this link to Delicious or Digg and the like, the more likely we are to hit our target!

Also, if you’re on Twitter, Facebook, Jaiku, Identi.ca or any other microconversation tool, please ping a message to all your friends about Ada Lovelace Day, and don’t forget the link! If you’re on LinkedIn, you could also add it as your temporary status for a while.

It is going to be a challenge to hit 1,000 people – we’ll need an average of 13 people signing each day – but if we all tell our friends about it, I think we can do it!

Keep up with Ada Lovelace Day news
I’ve got a Twitter account, mailing list and blog set up, so feel free to follow, subscribe and add to your RSS reader, as you wish!

What will happen next?
If Ada Lovelace Day is a success I’d like to make it an annual event. And, once the economy is in a better position, I’d like to put together a one day conference called Finding Ada. We would cover presentation skills and would introduce women to tech conference organisers, with the aim of getting more women up on stage at tech conferences. At the moment, I’m short of money to get Finding Ada moving, so if you’d like to be a sponsor please get in touch and I’ll tell you more about it.

Finally, who was Ada?
Ada Lovelace was one of the world’s first computer programmers, and one of the first people to see computers as more than just a machine for doing sums. She wrote programmes for Charles Babbage’s Analytical Engine, a general-purpose computing machine, despite the fact that it was never built.

links for 2009-01-06