edithhopegardenjournal

The sales of the Washington Post to Jeff Bezos and the Boston Globe to John Henry raise the question why people would want to own newspapers if they aren’t doing so for obvious financial gain.   There are clearly people who want to own papers for political purposes so they can directly influence debate and policy.   This is certainly the case for the ultra-conservative Koch brothers, who have been trying to buy the Los Angeles Times  this past year. But Bezos and Henry don't seem to fit that mold.   Bezos’ purposes for buying the Post are not the pursuit of profit. He certainly would produce better returns putting more effort into Amazon or another commercial firm. John Henry can expect far more returns from effort in his investment firm or his sports empire than the Globe . So why are they buying legacy media?    The answers lie in human traits.   All of us need diversions. We need toys to play with; things to spark our interest and imaginations.    Bezos can clearly bring idea

Ambient news is proving a significant challenge to news organizations trying to serve readers on multiple digital platforms and maintain their print and broadcast news operations. Contemporary technologies all around us are now delivering breaking news, sports scores, and market updates on electronic screens and displays in elevators, taxis and buses, bars and restaurants, on the sides of buildings, through smartphones, and via social media. In years past, we all had to deliberately turn to newspapers or radio and television newscasts, or at least glance at headlines at news stands, to get a quick overview of major events. That era is past. Today news is free and ubiquitous and, unfortunately, provides all the news that most people want. This is bad news for those trying to provide news commercially. In the past, newspapers and newscasts filled their space and time with non-news features and information designed to attract audiences that wanted only a little news. Most newspapers, for

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The European television industry is one of the most balanced in the world, with public service broadcasters, advertising-supported broadcasters, and pay television operators reasonably dividing television revenues among themselves. For the 27 countries of the EU, pay TV accounts for about 38% of total revenue, public funded broadcasters for about 34%, and advertiser supported television for about 28%.   Unlike the US where private television dominates, most Europe private television began after liberalization broke the monopolies held by public service and state television in most countries. It has taken decades for private television to establish a mature place in the market.   When looking specific countries, however, total spending on TV (advertising, subscriptions, public funding) is not evenly spread. Adjusted for population, it ranges between €5 and €30 per person among nations, with an average of €15. There a notable differences between southern, central, and eastern European na

Legacy news organizations (newspapers, magazines, and broadcasters) are confronting three critical relevance challenges as the digital world matures: Changing business configurations and characteristics, declining value of traditional news and informational content, and unhealthy attitudes toward audiences. These challenges will need significant attention if they are to be successful in the new information environment.   During the twentieth century news products were widely used, fast-moving consumer goods. Because media operated in relatively inefficient markets, news organizations were cash-producing investments with high cash flows that yielded high profits. Newspapers had asset-heavy balance sheets and excellent equity positions. The business drivers of the legacy news industry in the latter half of the twentieth century were g rowing consumption in absolute audience sizes (but declining penetration that most executives ignored). Companies changed high prices for advertising and s

A clear divide exists between generic labor and talent in media companies and it is now increasingly dividing journalists. The divide initially appeared in the motion picture industry and moved into broadcasting as competition led companies to vie for the talented people—or at least those who could generate the largest audiences and revenue for media companies. The talent concept moved into journalism with the development of television news and salaries for news presenters and leading correspondents that were far above those of average television reporters.    In print journalism, talent initially involved columnists and then encompassed a few well-known reporters. Today, the appearances of journalists at events and on talk shows, individually-authored digital news sites, and the increasing uses of blogs and social media by journalists is transforming many into individual brands that are being using to improve their social standing and connections with audiences. This journalistic bra

There has now been enough experience and research to draw conclusions about how news is transitioning to the digital world and what it means for news companies. If one objectively views the developments, one sees that the current developments are is neither as bleak as some journalists portray them nor as rosy as some digerati frame them. Instead, we have reached a point where digital news is becoming workable in commercial terms, but is not yet mature enough to erase the industry's business challenges. News consumption in the digital environment is significant and audience reach is now 5 to 10 times larger across digital platforms than for print editions of most newspapers.   Many large news organizations are now generating 15-25 percent of their revenue from online, tablet, and smartphone platforms and benefits are starting to appear for some mid-sized players as well. If we look at what has occurred in the past decade, there are some important lessons to embrace about news busin