Tuesday, June 27, 2017

Good news for newspapers regarding media's digital migration

http://www.petevanbaalen.com/single-post/2017/06/27/Good-news-for-newspapers-regarding-medias-digital-migration

We are a storytelling society. Think about someone you know, or perhaps someone famous and think about what attracted you to them. Chances are it could be the way they communicate and their ability to tell a good story.

Storytelling doesn't mean making things up, though a good old fashioned 'tall tale' can be very entertaining. In business, the art of telling a good story often comes down to your ability to communicate effectively the highlights of your business purpose. Telling someone facts about your company, but doing so in an engaging and effective way is a key to communication, and thus sales.

I talk a lot about the story the media industry has to tell. And despite the regular beatings our advertising department's take with advertising agencies and other advertisers, I still think the story the industry has to tell is a great one.

Digital continues to disrupt every segment of our lives daily. It was just announced that Amazon was purchasing Whole Foods. The impact of just that one transaction will send ripples of innovation and change throughout even more areas of our life, including the way we purchase food. The digital disruption of the media industry, I believe has the potential to be our friend if we harness the power of the changes happening all around us. For that pending battle of local media companies, the newspaper industry still has the high ground on the digital battlefield.  Look at our competitors, and tell me what you see.

Broadcast radio has seen tough audience and revenue declines. As their audience transitions from a analog to a digital platform, where are they going? Very few local radio stations have successful live streaming of their products online. Most of the audience looking for a digital alternative are going to Pandora, Spotify, Amazon or Sirius/XM for digital music. The ESPN app, Fox News and CNN apps do well with digital content for talk radio listeners. The digital migration is away from the local radio station's content, and thus away from their ability to sell ads and make revenue.

The same is true with TV and cable. Netflix and Hulu are doing very well with original programming. Amazon has recently jumped into that mix too. Even Facebook is reportedly in Hollywood now looking for original programming. The largest network for  video content is now YouTube! Cable TV is taking a hit too, thanks to Apple TV, Tivo and others who create a world of cable through the internet. The DVR that comes with my cable subscription is also a way for me to zap out a lot of commercials, either by fast forwarding through the commercial content or by watching shows on-demand. Sure, there are some commercials on-demand but the inventory is significantly less.

The fragmentation of the radio, TV and cable industries is making the large audience more elusive than ever. But when a newspaper subscribers stops their newspaper subscription, where do they go for local news? They are going to the newspaper's own website. Sure, our subscribers are also going to other websites like CNN.com, FoxNews.com or others for national and international news. But when the local school wants a bond to build a new school, that information is still content that the local newspaper will get. In many (most, perhaps?) markets, the local newspaper and its website will be the only place that can be found.


In a world full of fake news, the reliability of a newspaper in a local community is more important that it has ever been. And our ability to explain to readers and advertisers why we are doing what we do, and why it is so important to the community we serve is extremely important. 

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