Le Monde: A textbook example for the press

With just two weeks of cash left, Frédéric Filloux described the crisis at Le Monde as “the textbook example of the evolution of French press over the last years”. He then went point-by-point the problems afflicting Le Monde in particular but the French press in general:

  • A steady erosion in readership.
  • A lack of budget discipline, made worse by loose governance.
  • The core newsroom’s reluctance to support the digital strategy
  • The collective certainty the “brand” was too beautiful to fail and that a deep-pocketed philanthropist will inevitably show up at the right time to save the company.
  • An difficulty to invest into the future, to test new ideas, to built prototypes, to coopt key talent or to invest in decisive technologies.
  • A bottomless investment in the heavy-industry part of the supply chain, in costly printing facilities.
  • An excessive reliance on public subsidies which account for about 10% of the industry’s entire revenue. Compared to Sweden, French newspapers have 3 times less readers, but each one gets 5 times more subsidies.

Most of these problems are not unique to the French press. The erosion of readership has afflicted the press in most of the western, developed world. A recent OECD report found that since 2007, newspaper circulation had declined by 30% in the US and by 25% in the UK. Before I moved to the UK in 2005, people always said that the problems afflicting the US press could never happen here because of the newspaper-reading culture. Only Japan’s newspaper market seems to have remained resilient.

In terms of a lack of budget discipline, I would only point to the industry in the US giving bonuses to execs while the companies were entering or operating under bankruptcy. As Robert Picard pointed out a year ago:

The Tribune Co. is trying to pay out $13 million in bonuses, the Journal Registers Co. is trying to pay $2 million, and Philadelphia Newspapers has already given hundreds of thousands in bonuses to its corporate officers.

The Tribune Co. is planning to put a cherry on top of the bonus sundae this year. They have already asked a bankruptcy court to approve $42.9m in bonuses and want to add an additional $16.2m in bonuses for execs when they exit bankruptcy protection. Of course, US media companies are not alone in providing bonuses to execs who preside over companies in financial distress. There are a few well known newspaper groups in the UK that have paid out bonuses to execs recently after announcing eye-watering losses.

As for lack of support in the core newsroom for digital strategies, I’d suggest that the current problem exist in a layer of powerful editors who believe they have the most to lose in any change. Rather than fully understand, much less support, the digital strategy of their organisations, they see it in their own best interest to protect the status quo and obstruct change, even as it leads to job losses and uncertainty over their own future. It is self-interest and short-sightedness to the extreme, but for them, it seems a rational decision.

Ah, the belief in the beauty of the brand, it is so endemic in media organisations that they can’t understand why their circulation is in decline. Surely in this age of a multitude of media choices, our brand, our quality will prevail, they say. Look at your books and your circulation, how’s that working for ya? Only a fool clings to a failing strategy, and the industry has more than enough fools to fill a ship.

Difficulty investing in the future, to experiment with new ideas, expensive investments in the past. Yes, yes, yes. It’s a textbook for more than France. About the only one that stands out as not generally applicable is the subsidy, and for those in the US and the UK looking for their own government bailout, it is instructive that while subsidies might help for a while, they are not a long term solution.

The industry has resisted fundamental change for so long. They believed that they could outrun the future with their brand, their quality and their market position, but they can’t. It is adapt or die, and if you wait long enough, you’ll be in the same position as Le Monde, with only two weeks of cash left and suddenly a room empty of suitors.

I honestly don’t believe most in the newspaper industry have the ability to make the changes necessary. They certainly haven’t demonstrated that in the past. In terms of the business of newspapers, they have proven that they can milk the business model for a little bit longer through cuts and consolidation. Bankruptcy will given them another go around, but it won’t fundamentally change the business environment that caused the collapse in the first place. The process will enrich a few but leave many journalists looking for something else to do.

As for me, I love journalism too much. I wasn’t going to wait around and watch anymore of this slow motion disaster. There are other ways to create a future in journalism and a future for journalism, and I’m loving have a chance to explore them.

Twitter’s International Growth: Becoming the World’s Water Cooler? | Fast Company

Kevin: Some fascinating statistics showing Twitter's international growth. Kit Eaton writes at FastCompany: "Specific events around the world sparked peaks in international growth, Sanford notes--with the February 2010 Chilean earthquake prompting a 1,200% spike in member sign-ups. A 300% spike was seen after Colombian politicians began to use the system, and speedier growth was seen in India after local politicos and Bollywood stars began to Tweet."

links for 2010-06-21

  • Kevin: Loud3r provides semantic filtering technology for news and information, and it already has some big clients including a hyperlocal project by the Chicago Tribune, ChicagoNow. The Loud3r teams asks two questions about filtering solutions: 1 Does the solution deliver a comprehensive view of the topic to the reader? A comprehensive view includes Tweets, Blog posts, News articles, Photos and Videos.
    2 Does the solution effectively improve the signal-to-noise ratio of the reading experience?
    One of the key observations that the Loud3r team makes is this: "There’s not very much unique content produced every day. I know that seems like heresy, but 90+% of the content is simply sharing, reposting and duplication."
  • Kevin: Finanical analysts at firms such as Morgan Stanley, Merrill Lynch and Barclays Capital are trying to use the 'hot news' doctrine in the US to limit aggregators from pulling together their "most closely held, time-sensitive and valuable information product: The daily stock recommendations generated by their financial analysts." The hot news doctrine stems from a 1918 case in the US where a rival to the Associated Press tried to repackage news from the wire service for west coast markets. The US Supreme Court concluded that the rival had engaeged in unfair competition.

links for 2010-06-19

  • Kevin: "The Internet is poised to overtake newspapers as the second-largest U.S. advertising medium by revenue behind television, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook for 2010 to 2014." Also according to the Newspaper Association of America, print advertising revenue dropped 28.6% in 2009.
  • Kevin: Tim Armstrong at AOL had wanted to buy Associated Content in the spring of 2009. Time Warner, which was in the process of spinning off AOL, said no. After the deal fell apart, the chair of Associated, Mike Perlis of Softbank, used his network to make overtures to Yahoo. It's a master class on how business networking works, and a great example of 'it's not what you know but who you know'. It also shows the deep networks in Silicon Valley. Yahoo was looking to expand its content offerings (again), and after an audit of Associated's content, they were sold. What is very interesting is this line in the story: Yahoo Media boss Jimmy Pitaro is "itching to use Associated Content freelancers to create niche verticals with endemic advertising".
  • Kevin: Gary Andrews looks at how The Sun in the UK played an own goal in its attempts to engage bloggers to flesh out its coverage. After contacting bloggers and asking whether they would like to participate in their coverage, The Sun went ahead whether the bloggers gave permission or not. Chris Taylor from "It'll Be Off wrote to Gary: "I want to make it abundantly clear to everyone: I have nothing to do with this. I want nothing to do with this. And I am furious that the good(ish) name of my little blog, that ceased to be a concern some six months ago, is being used by the worst of all tabloids as some fucking publicity machine for their horrendous sweepstake generating iPhone app, and their even more horrendous newspaper.” Rights seem only to apply to media companies not to content creators.
  • Kevin: Mel Taylor Media doesn't mince words in criticising Gannett Broadcasting, the local television win on US publishing giant Gannett, in its decision to outsource local web sales efforts to DataSphere, or in the words of the post, is "putting some of their local web sales efforts on auto pilot". The post describers DataSphere as the "master of call-center web sales and quickie blogs". The post quotes a Borrell Associates report published in 2003 looking at the Disruption of Local Media. "The key take-away from this 7 year old, Borrell report? As long as a traditional media manager is calling the shots at the local media website, it will most certainly fail."

links for 2010-06-18

  • Kevin: James Robinson at The Guardian has a good summary of an OECD report looking at newspaper circulation trends around the world. The US and the UK top the table in terms of circulation declines, with 30% and 25% declines respectively since 2007. A few things that stand out in the survey is that US newspapers had an extremely high exposure to the advertising market. On average 87% of their revenue came from advertising. It helps explains why the recession has hit US newspapers so hard. It's a good summary, and the report itself is worth reading as well.
  • Kevin: Laura Oliver looks at Rue89, pro-am news website launched in 2007. They expect to break even in the fourth quarter of this year. They have recently launched a monthly print magazine. They said it the site will become profitable regardless of the success of the print product. It was interesting to see how little sentimentality they had toward the magazine. "If it's a success, it will accelerate our development; if not, we'll stop it before it becomes a burden," said Pierre Haski. There isn't much detail on what has allowed them to move to profitability other than experimentation with online advertising formats.
  • Kevin: David Cohn of Spot.Us talks about a new way that they have increased engagement from users and funding for journalism projects on the site. He calls it "community centred advertising". Bill Mitchell of Poynter described the system as this: "In some ways, it seems like a no-brainer: Encourage consumer engagement with advertising by giving users a stake in deciding how the revenue gets spent … Spot.Us itself is an experiment in transparency and control of money for news. This is just a matter of applying it to advertising."
  • Kevin: I actually think that the headline is incorrect. Journalism isn't dead. Audiences are continuing their shift online. Jason Stverak says that newspaper websites seeing traffic at an all time high rebuts "studies that have shown traditional newspapers are no longer a thriving business model". How? If the newspapers were converting those large online audiences to revenue effectively, that observation might stand up, but the only economic bright spot is that advertising is returning after the recession and the deep cuts are allowing papers to return to profitability. I will agree that local newspapers drawing traffic from cable TV giants like CNN and MSNBC is good news from papers.
  • Kevin: The Times of London is offering tickets to Toy Story 3 and the chance to win a weekend at the Grosvenor Hotel in Dorset to entice people to pay for news online in its new paid content strategy. It's a step up from free DVDs to shift papers.
  • Kevin: From the World Editors Forum blog. Carole Wurzelbacher writes: "The University of Missouri's Reynolds Journalism Institute has recently announced the inauguration of WellCommons, a site designed to improve community communication about health issues." The site allows users to determine the credibility of the article with a sources section.
  • Kevin: Rachel McAthy at Journalism.co.uk has a good roundup of the 12 projects that won funding in the Knight Foundations News Challenge 2010. The 12 projects split the $2.74 in funding. They were all local projects of some description. Some like the one from Stamen Designs were meant to ease the production of local visualisations and many of the others were some variation on a theme of aggregating local information. The grants were relatively small, most in the hundreds of thousands of dollars category. However, that's about what it takes to run a small digital project team for a year.

Journalism’s future: ‘Silver bullets are the talisman of the desperate’

I will admit that it’s a bit cheeky quoting myself, but as I was watching the flow of posts and conversation on journalism blogs today, and specifically in response to Adam Tinworth’s excellent post Complexity is the New Reality, I wound up Tweeting “Silver bullets are the talisman of the desperate”. Adam was commenting on a good rant by Paul Bradshaw titled Let’s stop this ‘Curation is King’ crap right now.

…if curation is king in online journalism I guess I missed the coronation. Curation is a usurper, here to distract us from the bloody mess we’re in with the message ‘Business as usual’.

The future of journalism and publishing will not be curation, aggregation, the iPad OR mobile. It will be a strategic mix of these things and more depending on the market and the audience. As Adam says:

There is no easy answer, otherwise we’d have found it after over a decade. Complexity is the new reality. Clichés are just a crutch.

Clichés are much worse than that. Seemingly easy answers too often win internal debates, especially as Paul points out, some of these messages convey that ‘business as usual’ is an acceptable course of action.

Earlier this week, I wrote a post about multi-facted digital strategies that are generating growth for both the print and the digital for forward-thinking publications like the Christian Science Monitor and The Atlantic. The first comment on that post was “one word – iPAD!” The commenter isn’t alone: Mathias Döpfner, the head of German power publisher Axel Springer had this recommendation for his colleagues in the corner office:

Sit down once a day and pray to thank Steve Jobs that he is saving the publishing industry.

That’s the problem. Senior leaders in the industry aren’t looking for strategies, they are looking for a saviour. They want some supernatural – or in lieu of that, legislative – power to turn back the clock, put the genie back in the bottle, tax the internet and go back to the good old days when money just fell from the sky into their coffers. News flash: It’s too late. The good old days aren’t coming back. Anyone who tells you that you can continue doing what you’ve always done and that the solution is easy is lying. They care more about their current position than they do the future of journalism.

links for 2010-06-16

  • Kevin: A news aggregator contacts Dow Jones asking them how to pay for and licence their content. The aggregator was told that no such licence was available. Furthermore, "We would not allow our content to be used in this form. Please do not archive, spider, link or otherwise mention or use any content from any Dow Jones International publications on your website. We hereby confirm that we do not allow the use of our IP on your site." The company has contradicted this statement since. What's the story? One would think that they would think about accepting money. Maybe not. It's pretty easy to see why the news industry is in trouble.
  • Kevin: Gina Chen has an excellent post on the Nieman Journalism lab blog looking at insights into news consumption patterns based from a recent Pew Research Center study. The study looked at news stories in the mainstream press and news that gained traction on blogs, Twitter and YouTube. "But the important point is that the loyalty isn’t to the platform, the application, the delivery system, or the brand. The loyalty is to the need for the information." Excellent post and excellent discussion after the post.
  • Kevin: George Brock, former editor for The Times and now head of journalism at City University London, has some great observations from a conference he spoke at recently in Germany. "German publishers – and they’re hardly alone – can register with their heads talks which stress unpredictability of the changes driven by new media; but in their hearts they yearn for the familiar." He says that the most successful platforms and editorial products on the web rely on "friction-free simplicity". Contrast that with the a quarterly lifestyle magazine recently launched by the group Axel Springer, The Iconist, that takes 40 minutes just to download. Hardly frictionless.
  • Kevin: Folio has an excellent overview of The Atlantic magazine's efforts to reverse a circulation and revenue decline that began in the 1960s. They made an effort to create a solid brand, which is useful although I argue that the brand is the experience. Brand building without delivery is wasted effort. The more compelling elements to me are how he set up a digital-first strategy as an internal insurgency. He wanted to disrupt his own business and 'unlock (print's) grip on traditional revenue sources'. They also increased events and marketing services. Good business sense, good content, good branding with a focus on talent mean that they are shifting to profit.
  • Kevin: My friend and former colleague Jemima Kiss has an excellent overview of what Apple's acquisition of the Siri, a very clever mobile service that reminds me of Tom Baker's intelligent agent in Hyperland. Jemima sees this as a big play into search by Apple. It's a bundle of artificial intelligence, natural language processing (voice recognition) and web search algorithms. Apple could be moving to challenge Google in mobile search, and with both companies having mobile ad networks, this could be an interesting bit of competition. As Jemima says, watch this space.

Betrayed again: NME Radio goes the way of Xfm

In 2007, Xfm ditched its daytime DJs, then axed all the remaining DJs in a shift to a fully automated playlist solution. I had been a loyal Xfm listener since day one in the mid-90s. I had listened on FM, via satellite TV when I left London and was out of signal range, online when I was abroad and then on DAB when Kevin bought me one for Christmas.

When Xfm fired all its DJs I felt betrayed, hurt and disappointed. A station I has supported for years had got rid of the very people who made it special. At the time I said:

The loss of real human DJs – people who care, people who are passionate, funny, interesting, exciting, cute, intelligent, informed, connected – will diminish listeners’ feelings of loyalty to the station. People react most favourably to other people. We like it when a human answers the phone instead of a machine. We prefer to be treated as individuals, not en masse. We want to have conversations with people we like and care about, people that we feel some sort of fellowship with. We don’t connect with people who pop up with an intrusive message for their own little social circle, we simply aren’t wired to care all that much about strangers.

In 2008, NME Radio began. By then I knew Iain Baker, who had been one of my favourite DJs on Xfm, personally and was excited to hear that NME Radio had hired him. Iain is a great DJ with a taste in music that matches mine and a warm, friendly manner that makes him a joy to listen to.

I finally had a replacement for the enfeebled Xfm. NME Radio was fun, full of great music played by great DJs. My radio listening needs were being fully met, even moreso when NME Radio moved on to Twitter so that I could interact with the DJs in a medium that I found convenient. (Although I must say that their use of social media in general was lacking and they could have done a lot more with it had they been bothered to find out how it can all work.)

But today I discovered, several days late due to having guests, that NME Radio have fired all their DJs and are pulling back to become an internet-only radio station. DX Media, who had licensed the NME brand, have decided not to renew that licence, thus leaving NME Radio as a shell of its former self. Says Brand Republic:

The live NME Radio station, launched under licence from IPC Media by Xfm founder Sammy Jacob’s DX Media, is to close after DX Media decided to terminate the arrangement.

NME Radio will stop broadcasting on national DAB and on digital television on Sky, Virgin Media and Freesat, but an automated service will continue online at nme.com/radio while IPC reviews the next stage of development.

Perhaps they weren’t doing well, one might think. Well, it’s true that there weren’t as many ads as you might have expected, but according to Brand Republic, audience size was increasing:

According to the latest Rajar audience-measurement figures for the first quarter of this year, NME Radio had an average of 226,000 listeners a week, up 16.5% year on year and 27.7% quarter on quarter.

Today (14 June), media agencies expressed disappointment about the decision, citing the gold award the station won in the best use of branded content category for its Skins Radio work for Channel 4, as evidence of the station’s progressive approach.

So it would seem that DX Media simply didn’t have the patience to wait for NME Radio to read critical mass, despite the fact that the signs were good. If anything, it looked lie NME Radio was well on the up. The Guardian says:

NME Radio went nationwide on digital audio broadcasting (DAB) radio at the end of last year and also broadcast via Sky Digital, Virgin Media, and Freesat.

The station had an average weekly reach of 226,000 listeners in the first quarter of 2010, and just two months ago announced the signing of former Xfm DJ Alex Zane. It launched with a show presented by Ricky Gervais.

Once again, a great radio station has decided that the human voice is unnecessary or too expensive, and that us little sheeplings will continue to listen to an automated service that has all soul and personality of a brick. Well, I for one shan’t. If I want music without interruption, there’s Spotify, Last.fm, my iTunes folder, and a bazillion music blogs and podcasts that can keep me busy.

What I want is to be able to listen to Iain and his colleagues. Their voices gave shape to my day. Like the old town cryer calling “11 o’clock and all is well”, the sound of Iain’s voice was a reminder that I had better be getting on with my morning lest lunchtime creep up on me.

I feel betrayed by NME Radio. Hurt. Angry. I’ve been through the loss of my favourite radio station before when Xfm turned to shit, and this hurts even more because of it.

The strange thing is… just before Xfm lost the plot, it started broadcasting some really dodgy station idents that were repulsively puerile and insulting. They upset listener and DJ alike. I remember being quite shocked when I heard them or heard about them.

Only a few weeks ago, NME Radio started broadcasting dodgy station idents that I found repulsive and insulting. One featured a woman trying to ask her boyfriend to marry her, casting her as a needy, silly, unrealistic bimbo and him as an uncaring, selfish, emotionally unavailable twat more interested in his radio than the feelings of his girlfriend. That’s insulting to both men and women alike, frankly.

So now I’m lost. 6Music seems to be the place that refugees from Xfm and NME now go, but half their DJs bore me and the others drive me up the wall. I am again in the radio wilderness, searching for an indie alt rock home with charismatic and entertaining DJs to keep me company.

UPDATE 18 June 2010: I was pretty cross when I wrote this post. I think NME Radio’s fate reminded me so much of what happened at Xfm and opened up some old wounds. I’ve had an interesting conversation with someone closer to the action than myself, and reading this post back in the light of that additional information, it does sound a bit harsh.

Ultimately, DX Media and IPC were in a tough spot. Starting a new radio station just before the ad industry tanked and global recession set in was a piece of bad luck no one could have foreseen.

I have no reason to doubt the intentions and capabilities of the people at DX Media and IPC who worked on NME Radio. I do still think they could have done better at social media, but these have been testing times for all businesses that rely on advertising. I hope IPC figure a way to continue NME Radio, and perhaps even find the budget to hire back some of the great talent they were forced to let go. Indeed, I shall continue to listen, as they do still have the best playlist in town, and perhaps by remaining loyal through testing times I might help the station survive. One can but hope.

links for 2010-06-15

  • Kevin: Delia Cabe has a good overview of magazine apps on the iPad. She's not impressed by Time or Newsweek. Her verdict on Time? "The preview consists of postage-size photos with short article titles. Nothing interests me enough to drop five bucks. Never mind. K Thx Bye."
    From the reviews and also the apps that I've played with, they still seem a rather unintelligent, poorly thought out mix of multimedia and flat print – I say flat because many apps actually break the benefits of digital by merely having text as images. No links. No search. No thanks. I'll stick to Safari on websites. I like my digital truly digital.