TIME TO LOOK AHEAD A strategy for local news organizations to thrive in the future METHODOLOGY In March, 2014, NYPA contracted with a research team at Rensselaer Polytechnic Institute to analyze and assess the challenges facing the newspaper industry and the disruption created by digital innovation. We selected RPI because we wanted researchers who were not affiliated with journalism organizations or journalism schools. We wanted researchers who would look from the outside in, without any vested interest in the future of the newspaper industry. We asked RPI to look at 3 broad areas: Overall Strategy Business Model Insights Operational Level Strategies To achieve these objectives the researchers studied other industries that had experienced digital disruption, and their responses to the disruption. They analyzed broad technology trends likely to impact the industry in the future. They conducted site visits to newspapers across the state. This is estimated to be a two year project; we are currently at the halfway point. SECTION 1 Objectives Overview Mission OBJECTIVES To outline a strategy for local news organizations to sustain themselves, and to thrive in future To focus on internal organizational and cultural changes that need to be made in order to remain competitive To suggest that medium sized changes need to be made immediately. Big leaps and sophisticated thinking will come later. Changes need to be made in the correct sequence. To get buy-in and support from leadership and management throughout the organization, including editors, ad managers and circulation managers. OVERVIEW 1. The mission and its implications 2. Synergizing digital and print 3. Content – the biggest piece of the plan 4. Advertising 5. Circulation/distribution 6. Role of NYPA 7. Future steps of the study REVISITING THE MISSION Revisiting the mission is an important - really important A simplified mission for local news organizations "Enrich local communities and their citizens’ lives through news, analysis, and opinions” News organizations have become too focused on specific aspects of the broader mission First amendment issues, open government issues and keeping government honest have taken center stage REVISITING THE MISSION Editors and reporters need to assess coverage and to recognize that many traditional coverage areas including local government, zoning and development, school boards- serve only some members of local communities While these are areas where news organizations excel and have an advantage, they are not popular (Pew Report, 2011) with a majority of readers These areas are important and consistent with your journalistic values Excessive focus on these issues utilizes resources that could be used to produce content that appeals to underserved members of the community Much of the news content produced today serves small segments of the community consistently, and other segments not at all. IMPLICATIONS OF THE MISSION COMMUNITY 360 Keeping with the mission, the organizing principle for local news organizations going forward is a concept we will call—Community 360 Everything needs to be viewed through this lens How did we enrich the lives of our community today? Do we serve everyone? Have we neglected anyone? Have we fulfilled our mission of being the vanguards, the custodians of our community? In what ways is our coverage lacking? IMPLICATIONS OF THE MISSION COMMUNITY 360 In the glory days - newspapers were facilitators of the all important conversations There are multiple pipelines now - how can news organizations control as many of these pipelines as possible? The appetite for community news exists across a broad spectrum that includes the younger demo, but community news organizations are not satisfying this appetite IMPLICATIONS OF THE MISSION COMMUNITY 360 Community 360 should be adopted as the marching call Envelope your community, take charge of your community, possess your community, own your community, be the eyes and ears of your community, the curators of your community At once act as: The town hall - where people share views The town square - where people meet , socialize The town bazaar - where people conduct commerce IMPLICATIONS OF THE MISSION COMMUNITY 360 Calls for an active role in shaping the conversation in the community - not a passive, ‘reporting’ role FCC report (Waldman , 2011) concludes that there is a shortage of local accountability reporting We disagree! We think there is a dire shortage of reporting that enhances the lives of various constituents in the community in an impactful way- accountability is only one aspect Community 360 as a philosophy has implications for content generation, advertising, circulation, all parts of the organization IMPLICATIONS OF THE MISSION COMMUNITY 360 Digital innovation has increased the competition for attention and eyeballs This has called into question the value proposition of local news organizations like never before This value proposition was under question prior to the digital explosion - digital is only partly to blame. Cutbacks in newsroom staffing levels resulted in a reduction in both quantity and quality of content. Developing a plan to serve all 360 degrees of your community will require a radical rethinking of content generation In an era with such intense competition , re establishing value proposition through a Community 360 approach is vital IMPLICATIONS OF THE MISSION COMMUNITY 360 A disproportionate amount of our resources are dedicated to coverage of local government and meeting news. Reducing (not eliminating) this coverage will enable us to deploy these valuable resources to focus on other aspects of our mission. News organizations need to step back and look at their communities. Watchdog journalism is important, but enterprise reporting, solutions journalism, and analysis are equally important and contribute greatly to community engagement. We OWN the community. No one else owns the community - we do. And our current coverage ignores broad sections of the populations we serve. Reporting on things that have happened is only one part of the equation. Covering events is another part of the equation. Asking questions, identifying problems, posing solutions and engaging the community are equally critical parts of the equation SECTION 2 Platform from an Agnostic Perspective & Broad Observations A PLATFORM AGNOSTIC PERSPECTIVE There is too much doomsday sentiment in the industry Too much negative language such as ‘digital threat’, ‘digital disruption’ This language and perspective needs to change immediately Senior management needs to lead the effort to stop using negative language such as paywall, print dying, etc. Conversation needs to focus on the ‘digital opportunity’ We need to view digital as new way to generate and deliver content, reach out to readers News organizations have a temporary sweet spot, but print-only strategies are not sustainable. We must change our language and focus on digital opportunities. A PLATFORM AGNOSTIC PERSPECTIVE Another unfruitful conversation- ‘print is alive’, ‘print is dead’ Print will surely die if content is unattractive to readers Print needs to be viewed for what it is - a medium; the question is where is this medium consumed, what advantages does it provide to consumers? You will not get lean in/ undiluted engagement if content is not of value, whether in print or online A PLATFORM AGNOSTIC PERSPECTIVE If news organizations are able to methodically change their content, the next priority is becoming platform neutral. A platform neutral approach implies that: Digital is an opportunity Whether print is alive or dead is not the question Print and digital need to be used synergistically, as complements to maximize readership and eyeballs Calls for rebranding as news organizations Platform agnostic also has concrete implications for the organization of the newsroom, advertising, marketing and circulation A PLATFORM AGNOSTIC PERSPECTIVE Changing the thinking and the language in these directions - digital opportunity, platform agnostic, news organization- is essential; not a trivial matter Requires full and immediate commitment of senior leadership Will set a strong foundation for transformation Will fundamentally alter the way people make decisions and view problems on a day to day basis Along with Community 360, this will bring about much needed cultural change BROAD OBSERVATIONS The industry in a very simplistic sense, is a two sided network Local consumers and local advertisers; news organizations connect the two sides with good content Could argue that a third gateway needs to be opened up- readers as contributors of content in various ways But evidence seems to suggest number of inherent difficulties in this BROAD OBSERVATIONS The two sided network comes together because of content- no content, no game Traditionally readers have been the subsidy side, advertisers the money side; don’t see this changing Subscription revenues may increase for differentiated content providers (cf. NY Times report; Seamans and Zhu) If you have good content that readers value, you can aim for subscription revenue increases, but we can't make decisions about subscription revenue until we get the content right So for now, ad revenues remain the important driver of revenues BROAD OBSERVATIONS The industry is enjoying a temporary sweet spot- older readers who are still reading print have remained loyal; there will be a lull for a few years This is an absolute luxury!! No industry has this kind of slack, time to reengineer Disruption usually comes quick and lethally, e.g. Kodak, Blockbuster Need to make the best use of this sweet spot while our ‘core business’ (print news) is still a cash generator; need to use this ‘opportunity’ to reengineer BROAD OBSERVATIONS Our site visits suggest some degree of complacency- especially among those companies that have been profitable in the last few years, through cost cutting, etc. But revenues will be under increasing pressure as more as more and more consumers transition to digital There is an express need to reengineer, even if you are currently profitable Journalism is our sustained competitive advantage, but there is an incredible amount of resistance to change on the part of editors and reporters SECTION 3 Content CONTENT: SETTING THE TONE FOR CHANGE Newspapers' sustained competitive advantage comes from our reporters - reporters are the value initiators; without them the two sided network would not exist This is also where we see the biggest need for change Sustained competitive advantage comes from assets that satisfy four conditions: (Barney, 1991) Valuable Rare Inimitable Non Substitutable CONTENT: SETTING THE TONE FOR CHANGE Reporters, to the extent that they generate content that is relevant to the community are valuable Good reporting is a rare skill; reporters with good understanding of the local community are even rarer Inimitable- Local TV, radio, and other local news sources do not have this asset, and cannot replicate it Good reporters are non substitutable – citizens with cell phones, bloggers, aggregators, news groups, social media- are not substitutes for good reporting and writing CONTENT: SETTING THE TONE FOR CHANGE As senior managers, when you work to affect change, it is worth reemphasizing that good reporters are the key to the sustained competitive advantage of news organizations Reporters need to be coopted, they need to buy into the need for new content Forcing them will not be effective and coaching them to change the way they view their mission will not be easy. News organizations cannot thrive without good reporters, but they won't survive unless they adopt strategic new content strategies. CONTENT: REENGINEERING NEWSROOMS We suggest three key themes to re engineer newsrooms: 1. Reporters need to don a business hat - constantly need to ask whether content serves mission, is it something that customers would be willing to pay to read… 2. Content is a ‘product’ systematically targeted at various market segments - Community 360. Are you creating the right product? 3. Organizational - create new roles, use formal analytical tools, institute processes to bring discipline, maximize reporter resources CONTENT: DONNING A BUSINESS HAT Journalists sit at a crossroads Values, allegiance to their profession vs. what it takes for news organizations to thrive as businesses Journalism as a profession has traditionally emphasized the role of the fourth estate- upholders of free speech, open government, and democracy. This role is essential, but it is not exclusive. The role of journalism needs to be larger than this - it needs to be supplemented by broader responsiveness to the needs and interests of ALL constituents in the community - not just government and business leaders. SECTION 4 Change in Perspective Donning a Business Hat CHANGE IN PERSPECTIVE: DONNING A BUSINESS HAT Reporters need to continually ask: Who is likely to read this article/content? Who will benefit from it? Which constituents does this piece of journalism reach? How does it enhance their lives? Would these constituents be willing to pay for this article? Donning a business hat doesn’t mean writing advertorials Local news organizations should never cross that line Communities must have irrevocable faith that news organizations will not produce content that is directly paid for by advertisers CHANGE IN PERSPECTIVE: DONNING A BUSINESS HAT That said, editors and reporters can be business oriented without sacrificing values There is no conflict in asking: “How can I serve the community while generating content that people would be willing to pay for? “ Good journalism costs money - editors and reporters need to be paid. To ‘fund’ its social role as the fourth estate , journalism needs to generate profits Otherwise the very future of journalism is at stake CHANGE IN PERSPECTIVE: DONNING A BUSINESS HAT As a starting step, we advocate a multi functional orientation/training program for journalists when they are hired They begin by spending a week in circulation- shadowing a circulation manager. Reporters need to understand the make-up of the community, who are readers are, who isn't reading the paper, and why. Then they spend a week in advertising- shadowing an advertising sales person Reporters need to understand the dollars and cents of the business, to gain an appreciation of how difficult revenue generation is. They will also come to understand that ad reps are out in the community, talking to the community, driving past construction sites, and that they are a good source of legitimate story ideas. Reporters need to understand that without money, there is no mission Such training will go a long way in giving a business perspective to reporters SECTION 5 Implications of Community 360 COMMUNITY 360: SOME IMPLICATIONS Every citizen is a prospective source of news and content that can benefit the community How can we tap into this person’s knowledge, expertise, experiences to generate content that benefits the community? Conversely how can we generate content that will affect this person’s life? People in communities should be viewed not just as consumers, but also as generators of content… “Community enhancing journalism” This mind set needs to pervade the whole news organization - will initiate the process of steeping you in your communities, taking charge of them - embrace the community COMMUNITY 360: SOME IMPLICATIONS Can’t focus exclusively on accountability, investigative, or enterprise reporting; we need to add ‘community enhancing’ reporting The basic philosophy - look at the story/content behind the person… Engaging the community is more than readers commenting on stories. It includes readers as contributors - providing valuable, interesting content that engages other readers, and creates mini communities interested in similar content COMMUNITY 360: SOME IMPLICATIONS We are not talking about hyper local - the focus here is more on tapping the full potential of the community to enrich lives This will automatically increase circulation You must be news repositories – but today you are not providing a complete snap shot of your community COMMUNITY 360: SOME IMPLICATIONS You have always been the "paper of record," recording the histories of your communities, and chronicling their evolution Now, archiving is critical - for several reasons: Newspapers have a rich stock repository to draw on to generate content that nobody else has This is a huge competitive advantage Information services derived from archives and from enhancing the conversation with your community will increase community understanding and can also be revenue generators Potential opportunity to monetize your archives Archiving should offer value based pricing- should not be based on the amount of time it took you to retrieve info SECTION 6 Content as a Product Market Segmentation Widening the Reach Enterprise Journalism CONTENT AS PRODUCT: MARKET SEGMENTATION How does your news organization make content decisions? Can you write the process down? We find no evidence of documented strategies for content generation Are the strategies all in people’s heads? Other then what goes on page one, is there a strategy ? CONTENT AS PRODUCT: MARKET SEGMENTATION We suggest adopting classical principles of market segmentation while viewing content as a product Have I generated content that targets all segments in the community? Am I reaching out to various segments often, and regularly? A potential tool - content targeting tables Plot demographic segment/content type on the vertical axis; Horizontal axis frequency Will give a clear sense of gaps in content generation CONTENT AS PRODUCT: MARKET SEGMENTATION Most content decisions are based on gut feel We suggest that they should be based on something more concrete - metrics Begin by systematically plotting your community and understanding the demographics: By age - percentages By ethnicity - same approach By sex By income level By employment What proportion is embedded in the community? What proportion doesn’t care about local news at all? How do you bring those who are not embedded into the fold? How do you impact and engage them with appropriate content? CONTENT AS PRODUCT: MARKET SEGMENTATION Content targeting tables will provide important metrics But they will do more than that Like language, they are symbols of commitment to change, commitment to the perspective of content as product, Community 360 If they are displayed prominently as white boards in the news room they will give a clear signal to reporters that it is important to generate content targeted at various segments/niches CONTENT AS PRODUCT - MARKET SEGMENTATION Content Targeting Tables By Demographic CONTENT AS PRODUCT - MARKET SEGMENTATION Content Targeting Tables By Topic/Theme CONTENT AS PRODUCT: WIDENING THE REACH Who are the non customers of local news organizations? What do we know about them and why they don't read (need) our content? We see an express need to conduct focus groups; to conduct an in depth analysis of what the non customers, including the younger demographic, would like to read You can enlist professional help to facilitate this - local college professor or NYPA The lack of interest among the younger demographics is often attributed to the dying habit of reading print, or to a lifelong attachment to all things digital but we disagree - it is the lack of appealing content targeted at this segment that is the issue There is also a need to understand other non consumers- particularly racial/ethnic groups in the community CONTENT AS PRODUCT: ENTERPRISE JOURNALISM Enterprise journalism is a key component of content as a product - it is a critical piece of taking ownership of your community. Identifying themes for enterprise journalism is a critical exercise Taken together the themes should appeal to a wide range of audiences, not just a select few. Heroin addiction Local business initiatives Local environmental issues Local government initiatives Take the lead, provide not just a reporting perspective, but a problem solving perspective Lead the conversation in specific areas - talk to experts, learn from other communities through the network of peer local news organizations CONTENT AS PRODUCT: ENTERPRISE JOURNALISM Enterprise journalism is where the focus should be in terms of events Organize events such as speakers, debates - not to make money, but to embed yourselves in community; to be perceived as thought leaders, the agents of change Look for partnerships that help embed you in the community Solutions Journalism Network- another promising option for collaboration Enlist NYPA help in events - will come back to this Enterprise journalism - a key way to enhance your presence; needs to be a full set of activities, rather than just reporting SECTION 7 Creating New Roles & Content Generation Strategy CREATING NEW ROLES: EDITOR, NEW CONTENT We recommend that you repurpose your newsroom staff/reporters to create new content We advocate creating a separate role - Editor of New Content or Editor for Innovation or Editor for Product Development NY Times has just hired Kensey Wilson from PBS in this role CREATING NEW ROLES: EDITOR, NEW CONTENT Person with a high degree of credibility, respect Ideally an insider, someone within the existing set up; someone who sees the need for change, not a new hire Role should report directly to the publisher, senior management Person’s responsibility would include coming up with content that engages the whole community in a 360 fashion Specifically new enterprise themes, ideas for community enhancing journalism, ways to widen reach and address younger audiences MAKING CONTENT GENERATION STRATEGY EXPLICIT, SYSTEMATIC Currently it is not clear how editors make decisions related to what content to generate Largely depends upon gut feel, very informal Editor’s judgment will remain key, without question! But the process of content generation must be explicit, put it down on paper Will allow you to critically examine it , identify its weaknesses, refine it MAKING CONTENT GENERATION STRATEGY EXPLICIT, SYSTEMATIC Specific answers need to be developed for the following: How do we generate our content? What steps do we take to identify what stories to write about? How often do we reach out to the community to assess what content we need to generate? In what ways do we do it? Do we reach out to opinion leaders? The right people? Is our process adequate? Are we gauging the pulse of the community accurately? Are there any steps we can take to improve our process of content generation? MAKING CONTENT GENERATION STRATEGY EXPLICIT, SYSTEMATIC Making it explicit will give a birds eye view, will enable you to evaluate if the right process is in place Come up with innovative ways to generate new content, improve contact with community Will enable you to make adjustments and to identify mechanisms that have not been incorporated Develop a clear understanding among everyone in the newsroom CONTENT GENERATIONSTRATEGY: INCLUDING ALL GROUPS Much like academics, reporters and editors often have an ivory tower attitude They need to be more open to ideas about what content should be generated We suggest regular meetings with other departments - perhaps once a month This will reinforce the business perspective among reporters Will also create vital cross functional links – reporters and editors appear to be isolated CONTENT GENERATIONSTRATEGY: INCLUDING ALL GROUPS Beyond that, need to use all eyes, ears possible to assess what content needs to be generated Circulation can provide vital input on what demographics are not subscribing - an indicator of what kind of content is missing Similarly, advertisers can provide vital input – engaging them in regular conversations about content is an embedding tool Regular incorporation of circulation/advertising in the content generation process would be vital for Community 360 CONTENT GENERATIONSTRATEGY: SOCIAL MEDIA LISTENING Social media can play a critical role not only in distributing content, but in generating content Much of the conversation appears to be centered around the use of social media to get your content out, distribute it Journalists are tweeting, sharing on Facebook etc. We ask the reverse question: how are you using social media to generate appropriate content, content that is of value to the community? Are you following the tweets of the community and opinion leaders? Not easy to do - can’t just follow high ranking elected officials- must follow civic groups, colleges, environmental groups, etc. CONTENT GENERATIONSTRATEGY: SOCIAL MEDIA LISTENING Are you following the relevant people, entities on Facebook? Schools, churches, volunteer orgs., etc. While the concept of social media listening has been applied to understanding what communities are saying about brands online, we suggest using the idea more broadly to understand the concerns, conversation in your community Social media listening should be an integral part of content generation strategy, if it isn’t already CONTENT GENERATION: PRODUCTIVITY TOOLS Content generation is like other creative endeavors- research and development for example If resources are not managed properly, they will be used for the wrong objectives News organizations have the ability to generate more stories/day than anybody else – 3 to 4 times more stories than TV CONTENT GENERATION: PRODUCTIVITY TOOLS E.g. 20 reporters, 8 hours/day, 5 days= 800 reporter hours, total capacity How are these hours being utilized? What is the average number of hours consumed by a legacy story? What is the average number of hours consumed by a new story? What is the impact- how many people does it affect, how likely are people’s lives going to change Suggest plotting some stories using these two dimensions CONTENT GENERATION: PRODUCTIVITY TOOLS Aggregate resource utilization map- size of circle represents reporter hours consumed CONTENT GENERATION: PRODUCTIVITY TOOLS The objective of the plot is to identify content that is consuming a disproportionate amount of resources Do you really need to write another report on last week’s weather? Or the local school board? What is the impact? Is it going to consume a disproportionate amount of resources while interesting only a few readers? The tool also brings novelty/ efficiency/impact to the forefront It would be instructive to do a rough analysis along these lines as a start There is an express need for local journalism to reestablish its credibility - tools such as this will facilitate that CONTENT: SYNERGIZING DIGITAL AND PRINT Breaking news while necessary, is not your area of advantage The advantage of local news organizations lies in analyzing and contextualizing news Differentiating content too much between platforms - trying to sustain print by providing a restricted digital product – is a bad idea Stand the risk of losing readers who prefer digital Need a coherent release strategy CONTENT: SYNERGIZING DIGITAL AND PRINT Reporters tool kit should include capabilities to work with both digital and print Write a news brief for digital under breaking news Follow it up with richer content - emphasis on contextualizing the news, analyzing its implications Digital version while being identical to print in written content should include videos, multiple pictures etc. SECTION 8 General Observations GENERAL OBSERVATIONS Local Journalism needs to reestablish credibility Credibility of local journalism under serious threat In the words of one editor, its an artisanal product There cannot be one trivial story on page one or the home page - have to convey the impression of serious journalism, covering serious stories, generating solid content that enriches communities Consumers, external constituents should be able to pick up paper and get a solid sense of the community, its issues etc. GENERAL OBSERVATIONS: PUBLISHER Currently too caught up in day to day fire fighting, need to step back, take a look at the big picture Develop a clear vision of how your news organization can contribute to the community Change language from doomsday - digital opportunity, news organization Ingrain the Community 360 way of thinking, along with platform agnostic Do not divert from your core business- there are too many things that need to be done here to take your eye off the ball SEO services for local businesses, integrated marketing for local businesses - these are not what you should be involved in – like eating your young Use these resources to get yourself found, design good headlines etc.- there is a whole world of actions you need to take to get yourself found online Your advertisers come to you because you are providing access to your readers; SEO enables them to market themselves independent of you SECTION 9 Circulation The Role of NYPA Future Steps of Study CIRCULATION Community 360 - everybody is a potential reader Platform agnostic - total eyeballs matter, not just print numbers Circulation manager has to have a well rounded view: Metrics have to include both print numbers and online Circulation manager has to be made responsible for both CIRCULATION Circulation manager also responsible for ensuring social media visibility- the new form of circulation Good Facebook page Good solid Twitter feed, with good links Plug ins so that content should be shared Currently journalists/reporters are being held responsible, but we don’t think it should be their responsibility Circulation managers need to work with journalists on this front Also work with journalists/reporters on marketing content properly - i.e. correct headlines… again not just the responsibility of reporters CIRCULATION Doing a poor job of promoting yourself (what else is new?) So focused on advertising, that circulation is not being systematically addressed Too much emphasis on circulation sales approach right now, resulting in lots of turnover, churn Sample principles as advertising -if reader is not subscribing, why is that the case? Who is reading? Good grasp of demographics of the region? If a reader is not subscribing…how can we entice…not through price promotions only but also the value of the content CIRCULATION Whether print survives or not… is in hands of reporters/press but also circulation!!! Systematically analyze where print is likely to be consumed, where digital is likely to be consumed Coke/Pepsi- An important lesson-within arm’s reach Beat substitutes like tea/coffee/water- by simply making sure soda was always within arm’s reach Go back to your local businesses…ask them to display - local businesses need you-explain to them, if they don’t display to their customers, how do they expect that their name will get in front of people? Has to be a cooperative effort… go to local business associations …do this systematically Should you give some copies away for free… absolutely NYPA'S ROLE Content sharing- Facilitate the process of newspapers helping each other through a network of local news organizations Content archiving Content archiving helps provide a clear sense of how the community has evolved over time Should be used as training tool for new journalists Should be used as a repository- draw on it to keep content of high quality, contextualize current events in a richer way by providing historical context NYPA'S ROLE Help with event planning- in particular events that build on enterprise journalism; not anything else Run focus groups to understand what it will take to attract new readers, and especially young readers Run ad campaigns increasing awareness of the role and importance of local journalism Run workshops on innovative content that incorporates Community 360 Facilitate collaborations- e.g. Social Journalism Network FUTURE STEPS OF STUDY Work with individual news organizations to see how to implement these suggestions - test drive Disseminate these ideas to in regional meetings across the state - get feedback Conduct a survey- to understand where the population stands, the perceived hurdles, an inside account of what needs to be changed Talk to leaders- e.g. policy makers ( e.g. NY Fed Chairman) , politicians, community leaders- to seek their opinion on what role local news organizations need to perform THANK YOU Michelle K. Rea Executive Director, NYPA I NYPS
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