Wednesday, October 30, 2013

What media groups face the digital challenge?

Some news give a lot of food for thought.

Take for instance, the nomination of a Richard Berke, a top editor of the New York Times at a commanding position at Politico, the influential news website which keeps growing and is getting profitable.

Take also the policy of the two most dynamic European media groups, Springer and Schibsted. At the INMA News Media Conference that took place in Berlin last week, the matter was discussed as there are not so many successful medias these days. What did the German and the Norwegian groups do to survive and grow? They followed a long term involvement in digital activities, most of them not connected to news collection.
Last July, Springer sold many newspapers and magazines to finance its new ventures in digital activities. The owner of Seloger and Aufeminin makes 40% of its revenues with its digital branch and intends to go on.

Schibsted started 15 years ago to invest in digital classified and is now an European leader with and It is still the owner of major newspapers in Sweden and Norway which are politically useful but sooner or later, it will have to drop out of the print industry. By now digital ads make 25% of its revenues.

It is not a coincidence if these two groups are very profitable and hence, able to invest even more.