The Daily Bundle
An article in the (London) Times newspaper on Tuesday talked about the extent to which newspapers have been slow to embrace the ‘era of unbundling’. What is unbundling? The author, Jonathan Weber, recalls a remark from Bill Gates in the early 90s. Newspapers, Gates said, bundle together a lot of different stuff, local, national and international news, brand advertising, and classified advertising along various different themes. His point was that there was no logical reason for all these things to be in the same place.
The internet would unbundle the various services provided by papers.
Nowadays, you might still use a newspaper for these things, but you have the choice instead to go to a number of specialist websites to get more of what you’re actually looking for at that moment. You can use something like Bloglines to create your own virtual newspaper - a custom bundle of the writers, topics and news sources you really care about. There’s very little wastage that way, and even less cost to the reader.
Because the technology is there, some of us have been predicting the death of newspapers. Their sales figures have been in decline for 40 years. Ubiquitous internet access and powerful tools for finding and assembling custom information seem the last nail in the coffin.
However, this isn’t what’s actually happening. Wired News reported yesterday that, in fact:
The average number of monthly visitors to U.S. newspaper websites rose by nearly a third in the first half of 2006, a study released on Wednesday said, though print readership at some larger papers fell…
The average number of unique visitors to online newspaper sites in the first half was more than 55.5 million a month, the study said. That compares with 42.2 million a year earlier….
The Washington Post’s website increased its audience reach among readers aged 25 to 34 by more than 60 percent…
The number of page views at newspaper sites rose by about 52 percent in the first half…
Newspaper readerships aren’t looking so shabby after all. It seems pretty clear that people like and want bundles. While it is technically possible to create your own ‘newspaper’ the majority of people don’t want to do that.
Three possible reasons, dreamed up off the top of my head:
(a) It takes time and effort and little bit of technical confidence to assemble your RSS-aggregated custom paper. Most people, if you recall, only visit half a dozen websites on a regular basis.
(b) People trust newspaper editors to guide them towards what’s important. And they trust mainstream media to deliver the truth to a far greater extent than random internet sites.
(c) We’re more and more pressured for time. A bundle of the items we feel we ought to know about saves us time. The ‘logical reason’ Gates was searching for, for all those items being bundled together, is that they help us cope with staying informed in an efficient way.
What is happening is that newspapers are losing revenue. Even with larger online viewing figures, the revenues from advertising on their websites is a tiny fraction of what they previously earned from advertising in their print publications. With a very few exceptions, they also don’t get to charge their readers the way they can by selling print editions. The problem isn’t with circulation, it’s with ARPU (average revenue per user). Print readers converting to online readers loses them money.
The endgame of that movement is already evident. Cost-cutting measures are rife: papers closing; papers becoming online only; more and more reliance on syndicated news rather than correspondents; more reliance on unpaid ‘citizen’ contributions; expensive senior journalists made redundant; increasing (cheap) feature content as opposed to (expensive) reporting. The bundle that you really wanted is being forced into extinction.
Elsewhere, Michael Urlocker reports today on advice from the American Press Institute to help reverse this decline. They need to find the non-consumers and seek to convert them. Michael says, “To disrupt themselves, newspapers need to zero in on the attributes that readers and advertisers value and pay for. And they need to cease working on the attributes that readers and advertisers no longer value.”
On broad terms, I agree. But my anxiety is that what a lot of readers and advertisers may really value is a bundle with an independent voice, quality, ethical, honest writing and reporting, and high production standards. These are exactly what are under threat as papers seek to find fresh markets.