The French regional newspapers have lost 1000 jobs in one year. Their circulation keeps going down by an average of 2% a Year and advertising keeps sliding down at about 7 or 8% these last two years.
The shrinking of the French press is not unique in the world. In the US, American regional dailies suffer badly and there is no end to it.
What are the reasons? Are there any remedies?
The main cause for this downfall is the fact that people under 40 don't buy papers anymore. Their parents made a great use of the local press because of all kinds of information they provided on their day to day life. Now, you can get these tips on many free websites that inform you on movies schedules, restaurants, sporting events, public transports and just everything.
30 years ago, the strike of the local daily could paralyze the life of a big city. To day, it is hardly noticed.
What are the solutions? There are two ways to make for this crisis that seems to last for ever.
First, the regional press must increase and improve its digital offer. They must set up a paying wall with very low rates as a start and a generous offer of news and videos. Never forget that the competition is tough and you have to outsmart the people that crowd the Internet field.
Then, newspapers have to think hard about their periodicity. Is it really necessary to publish every day? The print industry can survive for a long time but 7 newspapers a week is no more an obligation.
It means that the staff will have to be drastically reduced and reorganized. Less printers, more technicians experts in the mechanism of Internet and still many journalists with a different working schedule.
A hard challenge for the press establishment.
Friday, November 15, 2013
Thursday, October 31, 2013
More subscribers to the digital N Y Times
The 3rd quarter results of the New York Times Company show how a good strategy pays in this troubled period and teaches a lesson to some other actors of the media world.
The operating profit is up by 44% at 12.8 millions dollars, not because of advertising which keeps sliding down, minus 1.6% for print advertising and minus 3% for digital advertising.
However, the number of subscribers to the digital only service has grown by 28% in one year, reaching the stunning figure of 727000.
What does it mean? First, advertising has a very limited future in the digital economy. It is co-opted by a small number of very big operators such as Google, Facebook or Twitter who invest now in the mobile services and leave a very small space to the news providers. This situation is not about to change in spite of the relative success of video. Millions of news users don't compare to hundred of millions of Facebook clients.
Then, the only hope for news services is paid subscription but to succeed, you have to offer a real service at a correct price. If I may use my own experience, I can state that I consider my subscription to the digital NYT ,which I can use on my computer and my smartphone, is rather cheap, 12 euros per month. For that price, I have access to the gigantic data bank of a world newspaper and the 1000 journalists of its newsroom.
What about France? The subscription to dailies is rather expensive, 14 euros per month with a very limited offer of national and world news. The only newspaper which can develop a notable audience in the francophone world is le Monde but its rates are probably too high and its access to free news is too generous. Why would you spend 170 euros a year if you get for free the main pieces of information?
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 Blocket.se and Leboncoin.fr 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.
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 Blocket.se and Leboncoin.fr 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.
Tuesday, October 15, 2013
The New York Times keeps moving
If one compares the Washington Post and the New York Times, one can see the staggering difference between a daily which is successfully moving from print to web, the Times and another one which has let Politico pick up its best journalists and its top customers, the Post. It is hard to figure what Jeff Bezos is going to do to repair a fairly hopeless situation.
In the Guardian of Monday 14, Jill Abramson, the executive editor of the Times, explains what her vibrant newsroom is doing. It is playing the best card to boost the digital audience and attract advertising: the development of video, motion graphics and animation. Still the 1000 journalists newsroom keeps investigating on China, Apple or Bengladesh.
With 700000 thousands paying subscribers (one third out of the US) and 59 millions unique visitors, the Times is becoming a world global news provider. Competition will be tough for the other English speaking websites.
However, the interview hinted at a management problem which most newspapers will have to face: with the increasing importance of marketing and ambitious market research, the part played by the CEO is getting more important and perhaps, more intrusive. It is a touchy topic for Jill Abramson who has to live and work with Mark Thomson, the ex director general of the BBC.
In the Guardian of Monday 14, Jill Abramson, the executive editor of the Times, explains what her vibrant newsroom is doing. It is playing the best card to boost the digital audience and attract advertising: the development of video, motion graphics and animation. Still the 1000 journalists newsroom keeps investigating on China, Apple or Bengladesh.
With 700000 thousands paying subscribers (one third out of the US) and 59 millions unique visitors, the Times is becoming a world global news provider. Competition will be tough for the other English speaking websites.
However, the interview hinted at a management problem which most newspapers will have to face: with the increasing importance of marketing and ambitious market research, the part played by the CEO is getting more important and perhaps, more intrusive. It is a touchy topic for Jill Abramson who has to live and work with Mark Thomson, the ex director general of the BBC.
Thursday, September 26, 2013
Digital and print. The breakthrough
One media- Audipresse has just published its audience results for 2012-13. The figures are impressive. More and more people read on both print and web. 33% of the readers use smartphones and tablets against 24% one year ago but 52% of the audience uses both print and web. It is common knowledge in most developed countries that the more people use digital supports, the more they use print too. Look at .centpourcentmedia@newsletter.offremedia.fr
The two strongest media are a free sheet 20 Minutes and a national daily, le Monde. 20 Minutes has a national monthly audience of 13 millions, le Monde, of 12 millions. They both register a digital audince close to 5 millions.
All the other figures show that the audience of both dailies and magazines keeps even as compared to previous years, thanks mainly to the growth of the use of smartphones and tablets. However, the economy of this new situation is not fixed yet. Advertising is moving at a great speed from print to Web and to mobile. Paywalls work fairly well for national dailies with a rich content but are much less succesful for regional newspapers and magazines. The big question is : who is going to pay for what?
The two strongest media are a free sheet 20 Minutes and a national daily, le Monde. 20 Minutes has a national monthly audience of 13 millions, le Monde, of 12 millions. They both register a digital audince close to 5 millions.
All the other figures show that the audience of both dailies and magazines keeps even as compared to previous years, thanks mainly to the growth of the use of smartphones and tablets. However, the economy of this new situation is not fixed yet. Advertising is moving at a great speed from print to Web and to mobile. Paywalls work fairly well for national dailies with a rich content but are much less succesful for regional newspapers and magazines. The big question is : who is going to pay for what?
Thursday, September 19, 2013
newspapers on sale
The buying of the Washington Post by Jeff Bezos is just one stage of the lenghty process of property transfers of newspapers and magazines in most Western countries.
In the US, the Tribune company is trying to get rid at a bargain price of its former flagship newspapers such as the Los Angeles Times and the Chicago Tribune and the New York Times has just sold the Boston Globe with a heavy loss. The Gray Lady itself could one day be on the market in spite of the denials of the Schultzberger family. Remember what the Graham said two years ago?
In the UK there is no guarantee that the Murdoch family will keep for ever the Times and the Sun. Their ambitions are obviously turned towards movies and television, so much more profitable.
In France it is the same pattern. Neither Hersant, nor Tapie are to keep for ever their ailing dialies, Nice Matin and la Provence. Sud Ouest will sooner or later be transfered to some regional investor willing to trade losse for image. It seems obvious too that the Flemish group Roularta is losing patience with its French investments, Express, Etudiant, Point de Vue. After tough social plans, they could be put on the market. Same story with Amaury familyIt is of two minds about a partial or a total sale of a fairly prosperous group that suffers from its press branch, Equipe and Parisien.
What seems to happen is that a great part of the press goes to businessmen, tycoons looking for a good image but not relly interested by the job. The tragedy of the press is that it does not produce adventurers any more. They are all trying their luck in the digital world.
In the US, the Tribune company is trying to get rid at a bargain price of its former flagship newspapers such as the Los Angeles Times and the Chicago Tribune and the New York Times has just sold the Boston Globe with a heavy loss. The Gray Lady itself could one day be on the market in spite of the denials of the Schultzberger family. Remember what the Graham said two years ago?
In the UK there is no guarantee that the Murdoch family will keep for ever the Times and the Sun. Their ambitions are obviously turned towards movies and television, so much more profitable.
In France it is the same pattern. Neither Hersant, nor Tapie are to keep for ever their ailing dialies, Nice Matin and la Provence. Sud Ouest will sooner or later be transfered to some regional investor willing to trade losse for image. It seems obvious too that the Flemish group Roularta is losing patience with its French investments, Express, Etudiant, Point de Vue. After tough social plans, they could be put on the market. Same story with Amaury familyIt is of two minds about a partial or a total sale of a fairly prosperous group that suffers from its press branch, Equipe and Parisien.
What seems to happen is that a great part of the press goes to businessmen, tycoons looking for a good image but not relly interested by the job. The tragedy of the press is that it does not produce adventurers any more. They are all trying their luck in the digital world.
Tuesday, September 3, 2013
Bezos speaks on the Washington Post
In the september 3 issue of the Washington Post, Jeff Bezos speaks for the first time about his vision of the Washington Post he is going to visit to morrow. Needless to say, the man is cautious. He admits he is not an expert of the press and has no magic bullet to cure instantly the ailing newspaper.
Still, some of his comments exhibit a lot of common sense. He stresses that the Post cannot go down the drain indefinitely. A business must, at some point thrive and grow unless it becomes irrelevant. However the digital competition for print newspapers is punishing and the paywall is fragile. As he says, when the Post publishes in print version the result of a lengthy and costly investigation, it is immediately summed up and dispatched on many free websites. For the internaut, there is no reason to buy the daily if he gets for free the main elements of the topic. And yet, one has to find funds to finance the work of the journalists. In other words, digital subscription is not the global remedy, it is part of an elusive solution.
Bezos does not explain how this dilemma can be solved and I am not sure there is an obvious solution. It is likely he is going to try and the man is patient but what will happen in five years?
Still, some of his comments exhibit a lot of common sense. He stresses that the Post cannot go down the drain indefinitely. A business must, at some point thrive and grow unless it becomes irrelevant. However the digital competition for print newspapers is punishing and the paywall is fragile. As he says, when the Post publishes in print version the result of a lengthy and costly investigation, it is immediately summed up and dispatched on many free websites. For the internaut, there is no reason to buy the daily if he gets for free the main elements of the topic. And yet, one has to find funds to finance the work of the journalists. In other words, digital subscription is not the global remedy, it is part of an elusive solution.
Bezos does not explain how this dilemma can be solved and I am not sure there is an obvious solution. It is likely he is going to try and the man is patient but what will happen in five years?
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