There is a future, and a strong one, for newspapers
Wednesday, May 6th, 2009
The Christian Science Monitor published today a commentary by myself and Alan Bauer, general manager of Elauwit Media. You can read it by clicking here. The gist of our piece is that there’s only one side of the newspaper story being told — the doom and gloom side. The fact remains that there are solid prospects for a re-engineered business model for the newspaper industry. It’s built on giving away the news, offering total market penetration for the advertiser and creating hyper-local products. It’s what we do at Elauwit Media.
While the major media have been focusing on the big newspaper meltdowns, I believe that the success stories (and we’re just one of those stories) aren’t being addressed — or even mentioned. That was the impetus for the piece Alan and I wrote for the Monitor. When we did some research, we found that the business model has gotten some discussion in the blog space (for instance, this lengthy and thought-out post by Aaron Renn). But there hasn’t been much recognition that some folks are actually executing on a new, worthwhile model.
My issue with Renn’s analysis is that the newspaper business doesn’t need such totally inverted change in order to work. We just took a big leap in a few areas (such as mailing our newspapers for free to the entire markets they are designed to serve). It’s not unlike what Toyota did after World War II with the “kaizen” concept. It’s big change in small areas that makes a business model work. (You’ll be hearing more about kaizen and the newspaper industry from Alan and I soon.)
In sum, I think the tombstone for newspapers is being chiseled way too soon. The business will evolve — and is evolving. It isn’t going extinct.