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And Mr. Murdoch, once you make your sites closed, do you really think anyone is going to visit and pay all this money? Nope. However, chances are you'll do loads better if you stop acting like a sore loser and realize that we're rolling out of the old age of media and into the new one.
Adopt it or get out. 'Nuff said
Any suggestions?
Second to that, they need to re-evaluate worth now that subscribers aren't (and haven't) been their main channel of profit. Subscriber levels dictated advertiser rates. That was fine when they had rising numbers but they've had a hard time selling ads at old rates with subscriptions plummeting.
Not concrete ideas but then again, its not rocket science to realize that doing it how they did it 20 years ago isn't working.
the reason i asked if Mike has any suggestions is because, personally i cant think of anything else that will make them enough money.
ads - are not working
what else could they try?
instead of crying about it - i cant see why we cant send them a list of other things they should try first?
Just kidding, I'm sure with some thought I could come up with some good stuff. That reminds me....my local newspaper (Cincinnati Enquirer) only called about 5 times last week.
Sounds like they need an online strategy too!
The more Google can see you, the more people will find you Rupert. If you need a consultant to explain this to you, I am more than available for hire!
If it's already an established brand with quality content, it might be a good strategy to take what you can get from subscribers. You can use the argument that this didn't work in the past, but that was early in the Internet days when everyone was still figuring things out. I think that users have gotten a taste of some of the free content that's out there and there will still be a market for people willing to pay for content that they have followed for years. If Sports Illustrated, for example, required payment - I would pay because I think they have great writers.
I think advertising works for some content providers and subscriptions could work for others, although not for everyone. The provider would have to have amazing content or the user would be able to find it elsewhere.
By the way, people, there are plenty of people like Jeff who are willing to pay for quality content. Funnily enough, you don't see them on sites like Mashable because they're the same types who aren't in social media. You have a very biased viewpoint when your opinions are formed solely by what discussion is happening in your little online community.
When you've amassed the same fortune from social media – or even influence, if that's what you value – as Murdoch has from traditional media, he may listen to your advice. Until then, he probably doesn't care too much about your 4000 Facebook friends and your 2000 'I'll follow you so you follow me' Twitter followers. Although he may care about your MySpace friends. :-P
So, my view is Murdoch is part right and part wrong. He's adapting to the transition, while also holding on pretty tight. Let's see what this looks like in a year.
but, what do you call 'low'?
Murdoch, mentioned that the fee will be less than a cost of a newspaper (in australia they are usually less than $2)
However, if you read these comments, alot of Mashable-readers dont like the idea of paying for content.
What content do they value? How long is the subscription & what’s included in it? (New posts only or archive posts too)
The WSJ is charging $103 per year ($1.99/wk) for an online subscription. I don't believe readers would pay that much to read Mashable posts.
Mashable may need to sweeten the deal by giving subscribers advanced access to or in-depth coverage of breaking news & trending topics.
I’d like the option of customizing my subscription to reduce or eliminate coverage of certain topics. I’d happily exchange some iPhone related posts for something else.
Most of the top ad money goes to about 10% of all Internet sites and most of it to the top 3 or 5 sites in each genre. Then if you run advertising those same people complain about it and threaten to leave the site for somewhere else.
Honestly, if this is the path he wants to walk down - who are we to question his methods?
this guy has probably made more money than all of us put together.
Personally, i am going to sit back and watch him do his thing.
it will either be entertaining, or something i wished i came up with!
That's like the naive grade school taunt, "If you're so smart, how come you're not rich?"
I agree with your analogy comparing Murdoch to the "crazy guy with a nuke".
I'm not clear on why the technorati are so indignant. Is it because people like Murdoch diminish the supposed revolutionary nature of social media?
Remember, Twitter is selling content to google and bing. Why not sell murdoch's content then?
PS: Nice blog, good to listen to. (either your blog or chicken soup made me better after a Scandinavian flue grounded me :-) )
Come on, there are things called 'commercial realities', which social media people seem to forget. This may be largely driven by the fact that the major social media platforms themselves (yes, that's Facebook, Twitter, and MySpace) seem to have ignored them. Each of the major sites has sucked millions and millions of investors' money (including Mr Murdoch's) and is yet to show how it is commercially viable. 'Oh, but the whole world is using it'. So what – if it doesn't turn a profit, why would you invest in it? There's a concept known as 'ROI'. These things are not charitable ventures.
The same applies to media. Is he greedy to want sites to make more than a million or so dollars, or is he reflecting the business acumen that many social media people lack because he's comparing them to papers that make TENS or HUNDREDS OF MILLIONS? If the web content costs as much to produce but provides a small percentage of the return, where is the commercial incentive? It's not greed, people, it's capitalism. People invest where they will get the best return for their money.
I'm not saying that he's got the right approach, but I am sick of people carrying on like a class of teenagers rioting against the principle when they slag off 'old guys like Murdoch that just don't get it'. People should grow up and read a textbook on economics or something before they offer the world any more of the weary 'social media or death' vitriol.
Jeff (14 above), thanks for bringing some enlightened discussion to the debate.
You need to get a audience. One way is to be indexed by search engines, and Google is a large one. If you can't get a audience, you have a worthless site.
If News Corporation sites are not able to be indexed by search engines (including Google), the News Corporation won't get much money.
I really feel sorry for the people working for him on Myspace, still making an amazing effort try to save that sinking ship.
From a capitalistic standpoint, it's a valid argument. It sounds good and looks good on paper....
...the only problem is that it's not going to work. What Murdoch is proposing is that the media companies would have proprietary control over their news.
Good for them. How the heck do they think people are supposed to find it? :)
Tony
Newspapers are losing money mainly because of craigslist plain and simple.
social media press will tear him apart
For a CEO, or whatever his title is, to be this clueless about the power of the internet and search engines, is a disgrace to the companies he represents. If I were on the board of directors, you can bet I would be raising some questions about his ability to lead a company in these tough economic times.
Hello Rubert Murdoch, this is the year 2009.
I must have a screw loose.
i value my time, i would rather have all my news served up on a silver plater rather than searching for 5 hours.
google and newscorp are two seperate things.
newscorp is a "heres what has happened today" thing.
and
google is a "what do you want to know about" thing.
like i said
"i would rather have all my news served up on a silver plater"
they let niche blogs like mashable into it, they let cooking 'news' sites onto it, they let 'how do dogs poop' news sites onto it. if you can call yourself a 'news' website - then they will let you in.
mashable posts articles like 'how to get followers on twitter' - and it shows up on google news - now, dont get me wrong - i love thoes posts, but its not news, and when im looking for news, i want news. "twitter gets sued" that is news. if google manually moderated each post, then it would be a completely different story.
its completely automated and gives you 'information overload' - which is what im trying to reduce in my life.
personally, i will pay for a premium service to cut the crap and save my time.
... do you trust your friends? they could slant things!
... do you trust a doctor? they could slant things!
look, everything here is everyones own personal opinions.
personally, i believe newscorp does a great job with their news - sure their not perfect - but neither is your doctor.
This. I can't understand it either.
That one sentence says everything.
I have retweeted your article.
Advertising revenue is News Corps biggest revenue stream by reducing access to your Sites will reduce revenues.
Signed Carl Barron Chairman of agpcuk
"We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized." - Edward Bernays, father of PR, nephew of S. Freud
"There is no such thing in America as an independent press unless it is in the country towns. You know it, and I know it. There is not one of you who dare express an honest opinion. If you express it you know beforehand that it would never appear in print. I am paid... for keeping my honest opinions out of the paper I am connected with. Others of you are paid similar salaries for doing similar things....
The business of the New York journalist is to distort the truth, to lie outright, to pervert, to vilify, to fawn at the feet of Mammon, and sell his country and race for his daily bread, or for what is about the same thing, his salary. You know this, and I know it; and what foolery to be toasting an 'independent press.' We are tools, and the vassals of rich men behind the scenes. We are jumping-jacks. They pull the strings and we dance. Our time, our talents, our lives, our possibilities, all are the property of other men. We are intellectual prostitutes." - John Swinton, Chief Editorial Writer of the New York Times, 1880
So we must prove that this age is not about money and power anymore.
If more large news organizations move towards paid models, I think it could save the future of news and journalism. We all go to the likes of CNN, TIME, New York Times, etc, for our news fix because we know we are heading to an organization with the time and resources to properly report what is happening in the world. I think if all of these news destinations moved to a paid model, we would all pay for it! because the alternative is quite scary. Anyone can set up a blog or pose as a news website, but what are their motives and intentions? Will what they report be based on facts and research or will it be spun for a certain agenda? I know some of you will think that news organizations already spin for an agenda, but you have to admit that there does exist out there true reporting from great journalists. (Watergate?)
If news and other content remains free forever no one will ever make any money and the valuable services that exist today will die and be replaced by individuals with unknown intentions.
There has to be a certain cut-off point. The internet was invented to share knowledge, lets keep it that way, but lets also enable people to still make a living out of these important areas, journalism, music, film, etc. because if a living can't be made out of these areas the quality of the knowledge being shared will become worse and worse. If you can't make a living doing it, you can't spend the time to work on it. We will be heading back to a caveman era of human intelligence!
Our heating is powered because we pay for the energy.
Cars are still made because we pay to drive them.
Why can we keep some valuable/essential services alive but not others?
We are still in a transitional period where no one knows what to do or where things are heading. I don't think assumptions can really be made about old models vs. new models. We have still not settled on a new model, things are still changing rapidly. While social networking and Facebook and Twitter exist today, this could so totally change in an instant. They haven't been around that long you know!
But I agree, at the same time, that your point has something to it.
Advertising revenue is great, but is limited and can not be the only revenue source. At some point readers and audiences will need to start coughing up for content otherwise it simply won't get funded.
Maybe there are other ways revenue can be generated in the future. Maybe building costs into Internet connection fees? Similar to how cable TV channels are bundled? I don't want to defend Murdoch or News Corp, but I definitely think we should all be thinking of ways to fund and support news and other content. Free won't work in the end.
As the old saying goes, a fool and his money soon part.
NewsCorp is trying very hard to not keep up with the times. It is trying to tie down progress and profit from no progress. NewsCorp has assets that the world likes, but the world is ready to kick NewsCorp to the curb if the company doesn't straighten up and catch up with modern times.
Question: If you're going to charge to watch NewsCorp stuff...what about us who wants to watch it on our laptops, etc? I can always press record on something on my DVR and transfer it to a dvd and watch it on my laptop. =/. When I do this, I SKIP the commercials. The online streaming content...I can't skip the commercial. So...why not just profit from the commercials we cannot skip?
Online advertising pays a pittance of what newspaper advertising still does (Look at Politico.) If you want quality journalism, quality overseas bureaus, quality investigative journalism, you have to pay for it. The WSJ has agressively defended their premium, and they've done well for it.
Knock Murdoch all you want for going against the 'information is free' trope, but he's following a playbook that has had some financial success. That's a rare bird in journalism.