The New Yorker’s James Surowiecki has some interesting things to say on the future of revenue-generating newspapers: “News You Can Lose.”
The money quote:
“The blogosphere, much of which piggybacks on traditional journalism’s content, has magnified the reach of newspapers, and although papers now face far more scrutiny, this is a kind of backhanded compliment to their continued relevance. … But people don’t use the Times less than they did a decade ago. They use it more. The difference is that today they don’t have to pay for it. The real problem for newspapers, in other words, isn’t the Internet; it’s us. We want access to everything, we want it now, and we want it for free. That’s a consumer’s dream, but eventually it’s going to collide with reality: if newspapers’ profits vanish, so will their product.”
Note, of course, that Surowiecki’s article is offered for free, in its entirety, on the New Yorker website before most subscribers’ issues arrive in the mail. It’s not unreasonable for subscribers (like me) to ask, “Why the @#$% am I paying for a subscription to this @#$% magazine when everyone — including me — can read it for free online? I’m canceling my @#$% subscription right now!” (I have endowed my hypothetical subscriber with Tourette’s.)
Granted, a New Yorker subscription costs less than I spend on Girl Scout cookies in a year — the sub price is something like $0.50 Zimbabwean per issue — but when the advertisers see declining subscription rates and start getting nervous about running their nice big expensive ads, that’s the big drain plug right there.
What’s true for newspapers is true for magazines as well: if we want to avoid getting what we pay for, we’re going to have to start paying for what we get.
It’s that @#$% simple.
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P.S. — Not long after writing this, I read a recent article by the very-smart Paul Graham in which he bandied about the word “free” in a way that made me cringe. I feel increasingly uneasy about how fast and loose we play with that heavily-loaded word, particularly when it comes to “free” newspaper and magazine articles on the Web. And so I found myself composing the following observations:
- “Free” is qualified. While an article might be free for readers, it certainly cost the publisher something to create and make available. Whether it’s server and bandwidth expenses, staff salaries on project time, or the writer’s travel expenses and the phone bills he racked up doing interviews, expenses were most certainly incurred.
- The customer is the one who pays. If the advertiser is the only one giving the publisher money, he’s the only one that the publisher has to worry about pleasing.
- Therefore, no pay = no say + no stake. And we citizen-readers cannot afford to lose either.
I know this is all Business 101 stuff, but a lot of people are forgetting that capitalism is a closed cycle. Anemic revenue from online ads is causing advertisers to grumble ever more loudly. The current model is unsustainable, and it can’t be levitated by chanting articles of faith (”Om mane the web has changed how business is done peme om”) ever more fervently.
Newspapers and magazines of the world: make the readers your customers.