Sunday 10 January 2010

Convergence is King


It's not hard to name the biggest losers in today's media landscape: newspapers. In 2009, more than 130 U.S. newspapers either closed or moved to online-only publication, typically with skeleton staffs. The big-city daily papers that once defined American journalism have seen their business model collapse as Internet-based competitors commodified news and slashed the cost of advertising.


Newspapers have no problem attracting readers online; the Newspaper Association of America reports that its members' websites draw 74 million unique visitors per month. The problem is figuring out how to make money. Many publishers, of course, would like to start charging for content. But publishers "aren't talking about what kind of [additional] value they are going to give their customers or how they are going to use technology in an innovative way," says Robert Picard, a professor of media economics at Jonkoping University in Sweden and the editor of the Journal of Media Business Studies.


Dow Jones has been able to charge online for the Wall Street Journal, because its specialized content is not easily found elsewhere...


Read the whole article here.