Newest articles on The Sacramento Press tagged as "future of news"

News on paper?

2009-04-27T09:49:17Z

The future of news is not paper. At the same time the future is not necessarily just computers or mobile phones either. These days a new player, in the form of a new medium has entered the fray. That new technology is eInk.

eInk is, much as its name implies, electronic ink. From the eInk website, eInk is described as offering, “...the viewer the experience of reading from paper, while having the power of updatable information.” The key difference between eInk and a computer screen is that it is not backlit like a screen, so it can be viewed in bright sunlight but not in the dark. To retain the image on the screen no power is required.

So does eInk satisfy those that want the feel of newspaper in their hands? No, not yet. Currently it is only available in electronic readers such as Amazon’s Kindle, and the Sony e-Reader. These are rigid products that resemble computers more than newsprint. They are also in a size that is more comparable to a paperback novel than a newspaper. However that may soon be changing, with papers like the Detroit Free Press and The Detroit News announcing that they will partner with a company called Plastic Logic on a device that is letter-sized (8.5” x 11”).

Competing technologies will soon bring eInk like materials that are flexible and color, as the currently commercially available devices are all black and white.

Aside from the format itself, the cost saving potential of the medium is evident. Some have estimated that the cost of printing and distributing the New York Times is twice as much as the cost of the Amazon Kindle. With the cost of print rising as well as the price of gas, printing and distribution often accounts for up to 40% of overall newspaper operating costs.

The other difficulty in printing and distributing news via paper is the obvious environmental implication.

In the end, the brows-ability, flexibility and clarity of the printed word still has a large appeal, but new alternatives will find their devotees as well.

While the Sacramento Bee is not currently available on the Amazon Kindle, many papers are moving in that direction. The Sacramento Press is also moving in that direction, as we feel that it is a good contender for being a large part of the future media landscape.

The business model of news

2009-04-06T12:39:57Z

The current fear goes something like this: "If the newspapers disappear, so does all the real original reporting with it." The basic charge is that there is no business model for "giving away" news online, because online revenue is too miniscule and newspapers spend an enormous amount to get us that amazing original content.

The trouble is that a lot of those assumptions are just plain false. Once you start delving into the numbers those assumptions begin to wash away.

For instance, what does an average major daily pay, in terms of a percentage of its overall budget, for its editorial department? While one's inclination may be to assume that it is a huge portion, the reality is that the number averages between 7 and 10 percent. That means the rest of the cost of running a paper is tied up in printing, distributing, marketing and selling that paper.

Considering those percentages, let's look at McClatchy's 2008 numbers. McClatchy as an organization reported total earnings of approximately $1.9 billion. They also reported online advertising revenue of approximately $180 million. Some quick math indicates that about %9.5 of McClatchy's total revenue came from online advertising. Sound like a familiar percentage?

But that's McClatchy, what about the Bee? While numbers haven't been published breaking down the Bee's costs specifically for 2008, we can make some estimates and compare those with revenue numbers. The revenue numbers can be broken out of the McClatchy reports. Of the $180 million that McClatchy makes in online ad revenue, approximately $30 million comes from California and of that, slightly more than half comes from The Sacramento Bee.

That means that The Sacramento Bee has about $15-16 million in online ad revenue. And if I had $15-16 million dollars I could provide Sacramento with one really stellar newsroom and mountains of daily reporting on the region. But you don't have to take my word for it. In fact the Bee already does provide stellar coverage for near that amount. With approximately $211 million in revenue, it is likely the Bee's editorial department costs in the neighborhood of $15-20 million.

In a recent Bee article Al Tompkins, a Poynter faculty member, was quoted as saying, "Who's going to cover the planning and sewer commissions?" The answer: Geoff Doughtery plans to. Geoff Dougherty of chitowndailynews.com is building a newsroom for approximately $2 million. Click on the link to check out his extensive coverage.

While this analysis is not done by a professional economist, or accountant, it is clear that in general, the news about news, is not as grim as some make it seem. My aim was to ground this panic with a few numbers that make sense of the world we live in, so that we will begin to be able to figure out the new world we are heading for.

Statistics sited in this story can be found in this press release from the McClatchy website.

The future of news

2009-03-23T05:45:51Z

Newspapers are in peril. There is very little doubt about that, and if you are somehow doubting that, I point you to last week’s news that the revenues of the world’s most-read newspaper, USA Today, are likely down year over year 30%. Aside from industry-wide declining revenues, last week also saw the closure of the Rocky Mountain Post News and the end of the print edition of the Seattle Post Intelligencer.

From these events a heated discussion was born. What is the future of news, and if newspapers are heading the way of the Dodo, who will report the news? The goal of this storyline is to address those very serious questions, especially from a local news angle. Over the course of the next few weeks I intend on exploring, in great detail, the nature of the problem, how it affects our local news and eventually why the sky is not, in fact, falling.

In this process I want to present opinions from many perspectives, but I want to be very clear that I do not see a future for printed media delivered each day to millions of homes covering a wide variety of general interest stories. This is of course an editorial, and that is my perspective. With this loss I don’t see an end to the reporting and journalism that is vital to our society.

This optimism may cause some to inform me that I should put my money where my mouth is. In this regard I have already gladly obliged. I am the editor in chief of this publication, and the co-founder of Castle Press L.L.C., the company that publishes it. With that company and this publication I have done exactly what many critics have suggested someone with my viewpoint do – take action.

While publications and companies may fall, the news never dies. Quality analysis and reporting no more requires printing presses and the companies that run them, than transportation requires horses, buggies and the companies that bred and manufactured them.

To do this I plan on addressing the problem by discussing these points:

What we stand to lose in terms of information, by precisely recording stats from one week of the Bee.
What the current business model of newspapers is and how this can be covered online. A general overview will be given as well as a close look at the Bee specifically.
What do we lose in terms of the medium itself, paper, and what are the options: paper, computer screen and ePaper/eInk.
Our vision of the future incorporating all the points made in the previous articles and discussing the role of citizen journalism

This is a contentious issue and I would love to have the feedback of our readership to help me shape this storyline and how it is written. Please share your comments below and do your homework by reading some of the opinions that are currently out there, as linked to below.

Clay Shirky, Newspapers and Thinking the Unthinkable
Mark Morford, Die, Newspapers, Die?
Steve Johnson, Old Growth Media and the Future of News
Dave Winer, If you don’t like the news