WHERE’S THE BUSINESS MODEL?

Newspapers have long run on a peculiar business model.

People buy the paper mostly for the news, but what they pay for the product covers only a fraction of the actual cost. Traditionally, advertising generated the other 80 to 90 percent.

That imbalance always resulted in an inherent tension in the executive offices, where any expenditure for news coverage was viewed with suspicion, especially when few of the publishers – the top local executive – came from the news-gathering side.

The rest of the operation included the composing room and related departments that manufactured the actual pages that then went to the presses, plus the “mail room” where supplements were inserted and the bundles were arranged for distribution, the circulation department, and then the ad sales reps, accounting, community services/promotion, and human resources. Especially accounting. In more recent decades, the computer techs assumed their own role.

For a bit of perspective, go to a store and buy an artist’s newsprint sketchpad and then compare its cost and the amount of paper against what the typical paper carries. You’ll see what a bargain the daily paper has been. What you pay for the news essentially covers the cost of getting it from the end of the press to the place you read it.

So this is how things ran until the Internet came along. And then, for a host of reasons, publishers began putting websites up and readers began getting the news without having to view any of the surrounding advertisements that were paying the bills. That, in itself, was a recipe for disaster.

Curiously, long before the arrival of the Internet, I’d noticed that what the readers paid for a paper would be sufficient to staff a newsroom and its supporting services. Leap ahead, and you can see that if users would pay for their local news online, you could create journalism that would not have the advertisers lurking in the corners. Unfortunately, online users have become spoiled and rarely pay for anything. Attempts at firewalls, as we’ve seen, have also failed.

At the moment, the future of American journalism looks grim. And that’s bad news for our political structure and the lives of our communities themselves.

~*~

Hometown News

To find out more about Hometown News or to obtain your own copy, go to my page at Smashwords.com.

 

Advertisements

3 thoughts on “WHERE’S THE BUSINESS MODEL?

  1. Persoanally, I am not feeling much grief over the demise of mainstream commercial media. Only rarely has it risen to the aspiration of being a fifth estate for democracy. Moving away from seeing it as a profit making enterprise and more as information being a public good would be a great way to reboot that system. Who pays? Who paid for highways, schools, public transport and other necessary infrastructure?

      • Could be. (I had to look the name up. Thanks for introducing me to his name and work). In some ways a lot of people have already turned to un-mediated news through outlets like twitter, blogs and the like or alternative news programs like Amy Goodman’s. Mainstream sources are simply no longer trusted by the public. I read a poll once that showed the top reason people gave for ending their NY Times subscriptions was that they were disappointed in the quality of the reporting.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.