The Newspaper and Magazine Industry Needs a Makeover
Feb. 07, 2010
29 Comments
The other day I received an offer from Fortune Magazine for a yearly subscription of $10. I had trouble believing this since $10 wouldn’t even cover the cost of shipping for a year.
Why such a great offer?
Clearly, they are desperate for subscribers and need more readers in order to maintain or possibly increase their revenues from advertising. As less and less people are willing to pay for magazines and newspapers they suffer. Their last resort is advertising, which is also dwindling in the print world.
Then I thought why can’t they just offer these magazines and newspapers for free? I can think of at least a dozen daily free newspapers that are distributed.
In my opinion, the problem is that they are still stuck with their old business models and can’t move on to a new, innovative one. There are still some loyal customers paying full price but the number is probably shrinking rapidly. Publishers also believe that since their content is high quality it must have a price; if it were free it would lower the quality, which I think is false.
Metro Newspaper
So how do they survive?
They are competing in a new world where free content is both easily available and also of excellent quality. I personally don’t think that in the long run there is room for paid content, in print or online. On the other hand, free newspapers seem to be thriving. I see new daily, weekly and monthly free newspapers and magazines coming out all the time. I even wrote a few columns for one called the Westchester Eye, whose revenue is based entirely on advertising. But not all of them will make it.
The lesson:
It is amazing to see that even in what would appear like a dying industry, there are opportunities for entrepreneurs who are willing to take a new approach and are not bound by old business models. I’m sure that there is a lot of money to be made in this industry, just with a new approach. Whether it be an innovative newspaper or magazine on the iPad, or iPhone, or finding a new way to generate revenue, it’s all there for any entrepreneur. Have an idea let’s here!
Aftermath:
I took the $10 deal from Fortunes and I just got another letter in the mail from Forbes with an unbelievable deal… It’s all too tempting!
Have an idea on how to revolutionize the newspaper and magazine business, let’s hear.
29 Responses to “The Newspaper and Magazine Industry Needs a Makeover”
Trackbacks/Pingbacks
-
-
Feb. 10, 2010
Social comments and analytics for this post…
This post was mentioned on Twitter by teenbizcoach: RT @entrepreneurpro The Newspaper and Magazine Industry Needs a Makeover http://su.pr/4CVqVo...
-
-
Feb. 25, 2010
[...] example, reading AM New York on the train to school everyday led me to writing a post on why the newspaper and magazine industries need a makeover. Take time to think about experiences you could write about that took place offline or [...]
Author
Magazines and newspapers are facing a huge challenge. Here in the UK the situation is similar. It is also a problem for them because advertising revenue is falling as companies switch to other means of advertising such as pay per click and banners on the Internet.
I feel that the magazine and newspaper industry will still have a model where a charge can be made but the amount of titles available will reduce over time.
Many of the free printed ones will probably go to an online version only.
Roland Millward´s last blog post: How to Find Great Open Source Software
I’m sure it is a problem worldwide. Creating a new business model for magazines and newspapers is the only solution. It’s up to us and other entrepreneurs to find that.
With everything moving and becoming access via the net hardcopy’s will eventually die. Look at how many of your bills now come online and are paid online. The world is going green and more and more devices are connected to the net. The new model is the net and that’s why now is the time to build you blog and focus on your business as it is equal grounds at this time.
Jared P Little´s last blog post: How to Invite Others to BlogEngage
For sure, because of environmental reasons, financial reasons, and practicality. Internet is the way to go, and a new model is needed for revenue. Thanks for commenting.
It appears that the industry is maturing and its a tough fight with the competition from other media. It will be interesting to see how the print industry overcomes or gives in to the competition.
It definitely will be interesting to see how and if print manages to survive. There are so many threats online, the Kindle, iPad, and more to come.
Hi Ben,
I subscribe to daily newspapers (Financial/Business) and get the Barron’s every week…I also have several magazine subscriptions- Fortune, Wired, Adbusters…and a least 3 more specialty ones. Like most companies that have died down, I think they waited entirely too long to embrace and engage younger generation (as that becomes their audience in time).
Needless to say, I don’t think newspapers and magazines will die, I think they will eventually be ‘reinvented’ by a newer generation of folks and the content will be more niche and relevant. I think of the newspaper industry kind of like the manufacturing industry in the U.S. Yes, it has died down considerably, but a part of me has long believed AND stated that after the Creative Age will come the Age of Micro Business. Things will be produced in smaller volume, they will be more relevant to its audience and better crafted. I see a day in my lifetime when we each collect ‘licensing fees’ every time something we individually create is bought and sold (so better invest in a good intellectual property lawyer
). Everything we create will have RFID chip built in (we already have metrics online so soon we will do it in the physical world). That all ties into the green concept from another perspective. People will be more thoughtful in how they create things. They will take into consideration the feedback of their community. We already see this online. So we will just take it offline. As I was thinking of these types of things back in the late 1990′s…I obviously did not think that we would have social networks and such. It was just something random that crossed my mind.
We will be able to follow the production of products that we create and be able to see its life cycle and every time it changes hands. The value of what we contribute to the greater good will then be measured and determined by our peers.
I see Internet as TV and just like they are finally putting regulations on reality shows (when they can be shown etc) I think online/FTC regulations are going to put more restrictions and censorship on what people put out there online. Granted there is a ton of information online, so much of it is BS or sensationalized. Pardon my French
Not that the government needs to micro manage anything, but I don’t think them nor corporations will let their ‘mouthpiece’ go out of business. So much information still moves through traditional media by individuals who control ‘$$$$’ so it is definitively not going away anytime soon.
I think newspapers need to move towards a more a cooperative model where writers including citizen journalists share in some revenue model. The higher value your content (as rated by your readers/peers) the more you get. I also think in terms of revamping they need to streamline themselves and perhaps look at having a couple of national newspapers and everything else localized.
ok, so you got all that, Ben? I hereby grant you permission to send it to the top of the food chain for me…I know you have connections with those VIP’s up there
cheers.
@teenbizcoach
Shonika Proctor´s last blog post: Eastern European Teen Entrepreneurs Heat Things Up Post Cold War
Hi Shonika,
Maybe I should add your comment to the post, considering it’s longer than the actual post
I just have to say wow, that’s a lot of information and I really appreciate that you took the time to share it.
I agree that they won’t die completely, but as they slow down and suffer more they are going to need to discover more ways to generate revenues in different ways. It may lead to the “Age of Micro Business” as you said, or some other innovation.
I got everything you said, and maybe I’ll just pass this on to the head of News Corp, the New York Times, or something
The whole bit about the Age of Micro Business….It will all be producing things locally. Like you will have your own seal as will your community. Things will be localized/regionalized in terms of product creation, manufacturing and distribution. This is all ‘green’ as well. So I just wanted to clarify it and why I think that manufacturing will be reborn in the U.S.
Shonika Proctor´s last blog post: Eastern European Teen Entrepreneurs Heat Things Up Post Cold War
That makes sense, I appreciate you clarifying. Let’s put it this way somehow this whole industry is going to need to revolutionize drastically. Thanks Shonika!
There is a near infinite amount of info on the web. It is only of value, however, if it is targetted to the right reader. Magazines offer quality, niche content. That’s why people will buy them.
tempo dulu´s last blog post: Obama Bar, Jakarta
Agreed, they offer great content, the means by which they are distributed and how they make money is becoming difficult for them though.
Ben,
I think that between yourself and Shonika we have some media magnates in the making
Fresh ideas and innovation will continue to be, as they have always been, the saving grace of print media and other technologies that so many are quick to pronounce dead or dying.
Leadership from entrepreneurs, young and old, will never go out of fashion or be replaced, so I think you have half the battle won already.
-Greg
Greg Anderson´s last blog post: toe twitch
Hi Greg,
Thanks
Shonika knows what she is saying thats for sure! I appreciate your insight and fully agree.
Nice to hear from you!
I think that if the newspapers and magazines were to offer their content for free, quality content that is, then they would monetize with advertisement, that way they will not lose subscribers and rather increase their subscribers
.
Shirley´s last blog post: The New Twitter Hovering Feature – The Twitter Hovercard
That’s what I say! There is the issue though that they may believe that it will diminish the value of their content. Not to mention print advertisements are loosing value every day. Best regards.
You’re absolutely right, they all have sites, why not just print there and do the advertising thing.
have you seen how much sites like TechCrunch gets?!?!? No reason thy couldn’t do similar.
Dennis Edell´s last blog post: Here We Go! Theme Construction Part 1 – Your Participation Is Wanted-Needed!
Well the reason they don’t is because just online they dont make enough revenues. Which is why they are going to need to find a new revenue stream whether it be through the Kindle, iPad, netbooks, iPhone etc.
What I’m saying is, why couldn’t they do just as well with advertising, they are huge businesses, they should be able to really bring it in.
Dennis Edell´s last blog post: Here We Go! Theme Construction Part 1 – Your Participation Is Wanted-Needed!
It’s sad to see the recession and other factors affecting some very high quality publications. On the other hand, the media do need to come to account for:
-ignoring real news stories just because they can (these stories are broken by bloggers or other websites)
-grabbing leads from bloggers without crediting them
-not disclosing their entire web of relationships and monetary benefits from advertisers and the objects of their reviews
J @ The Digital Life & Tools Blog´s last blog post: Updating Your WordPress Blog Too Frequently: Avoiding Getting Banned from Ping Services
It is quite sad, but it it’s bound to happen as print becomes less popular. Those are also some great point,s thanks for sharing them.
It’s all about free content nowadays. People just don’t want to pay for mags/newspapers. I still like to read the physical paper or mag, but its often not worth the money when you think about all the content available on the web. The future of mags/papers will be interesting.
Alex Monroe´s last blog post: How long do you see yourself doing it?
Agreed. I also like the feel of physical paper, but I cant wait to see what iPad magazines feel like
We’ll see!
I think if printed magazines and newspapers start delivering their stuffs for free, they will one day be forced to stop printing and go completely online. I don’t think they will be able to generate enough money for the printing cost if all their subscribers are not paying a penny. They have to bear the cost of papers and inks and lots of press related stuffs.
I don’t completely agree that printed newspapers/magazines should be overdrawn as lots of free online contents are available these days. In fact, we can relax while reading printed stuffs and at the same time we can concentrate more while reading a printed newspaper or magazine in any way comfortable to us.
Aminul Islam Sajib´s last blog post: Tips For Paid Review : Don’t Forget Your Blog’s Niche
I understand, they definitely wouldn’t be able to cover their costs if they were 100% free but they need a new business model because no matter what at this rate, print will continue to go in a downward curve. Thanks for sharing.
Well yeah the magazine and paper industry sure needs a change. I believe they should give readers what they want and not all sort of crap. Give people a reason to read a particular magazine or paper, make them tell others whats the difference in a particular magazine and the others.
Yeah so you’re thinking contentwise, I’m referring more to the technological aspect of newspapers and magazines.