Thursday, September 3, 2009

What If...

Stop what you're doing and read this post by Howard Owens if you've ever wondered why newspapers, so much more than any other medium disrupted by the Web, have presented matters as Their Imminent Demise, while TV and radio and magazines have also lost readers and business to the Web but tend not to talk about it so much.

I was thinking earlier today: Is it just newspapers' tendency to see the worst, or is it newspaper journalists thinking that in order to be fair, we must publicly flagellate ourselves? Owens has a better answer: Newspapers saw online as just another way to publish newspapers. (Radio, TV, etc., which moved into online more slowly, did so because they saw it as a threat. Newspapers saw it as higher-profit nirvana.) But newspapers' objective was to use online to support the "mother ship" -- the newspaper business as it had been known and grown up, with all the divisions and add-ons that came from print's profit margins. And that, of course, has proven to be a fatal error.

Owens presents this largely as an advertising revenue problem -- which it is -- but notes:

"Throughout the history of newspapers online, there has simply been a lot of thinking that there isn't much different between the Web and print.

"It's understandable. The Web, especially in the early days, is a text-dominated medium. The natural response is to think editors could simply move print stories into pixels and be done with it. ... If publishers thought the Web was no different for content, how could they possibly be expected to see online sales were different, too?"

His answer -- which stands the last five years on its head, but I agree with him -- is that online should have been set up from the start as a separate business unit.

"So ... if newspapers had created more totally separate business units, would newspapers be 'saved' today?

"I don't know.

"The strategy could have hastened their demise, but I think you can also make the case that by letting newspapers be newspapers, and keeping online far away, you would have had fewer readers dropping subscriptions in favor of free online content. Maybe. Maybe the online competitor would have been seen by readers as just another media outlet, not a replacement for the newspaper."

Boldface mine. Of course, publishers, whose essential aim is to not have competition, probably would never have gone for it. They would have seen it as competing with themselves. But since what we have now is, as Dominic Toretta said after hitting the truck at the end of "The Fast and the Furious," not exactly what we had in mind, think about it from Owens' view. If the Daily Reflector-Cotillion had not viewed online as a way to publish the Daily Reflector-Cotillion with no printing expenses -- thus seeming to guarantee itself 50 percent profit margins forever -- but had viewed it the way newspaper companies viewed radio and TV when they first came out, as a medium with its own rules and challenges and for which content should be developed differently -- would the Daily Reflector-Cotillion be so shunned in print? Or would it have a profitable DRC and a profitable, much smaller, Mytown Online?

As Owens says, you can't tell. But at least you would never have had people saying, "Why should I pay you when you give the same stuff away?" -- which, though they come at it from different angles, Owens and Alan Mutter essentially agree is the Original Sin. Perhaps the answer is not pay walls after all, but -- let newspapers be newspapers.

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