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[RRE]NEWS-ON-NEWS/The Ifra Trend Report: No. 4 (11 August 1999)
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Date: Wed, 11 Aug 1999 14:28:08 -0700
From: "NewsScan"
NEWS-ON-NEWS/The Ifra Trend Report: No. 4 (11 August 1999)
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NEWS ON NEWS/The Ifra Trend Report is a free weekly executive information sheet identifying global trends, strategies and innovations in the realm of print and electronic news and advertising publishing. NEWS ON NEWS/The Ifra Trend Report is an initiative of Ifra, the world's leading association for newspaper and media technology (www.ifra.com) in collaboration with NewsScan.com. Sponsorship is provided by Apple Computer.
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MANAGEMENT Internet Redefines How People View The News Business Hunger For Local News Keeps Irish Regionals In Print A Boom In Reading May Be Windfall For Publishers U.N. Issues Guidelines On Dealing With The Press Publishing Associations Oppose Proposed Uniform Act
MARKETPLACE Hammering Out A Business Model For Online Communities AOL And Knight Ridder Join Virtual Forces Old Media Dog Teaching Some New Tricks Gale Group Expands Horizons Toronto's Newspapers Gird For Battle -- At A Cost
TECHNOLOGY The Toronto Star's Colorful Future Technology Is A Strong Ally In Battle With Electronic Media Online Media "No Threat To Newspapers" Targeting "Netjournalism"
>>>>>>>>>>>>MANAGEMENT
INTERNET REDEFINES HOW PEOPLE VIEW THE NEWS BUSINESS The rich, multidimensional nature of the Internet is creating a crisis of sorts in print newsrooms -- not only because readers have more choices about where they access the news of the day, but also because fewer people seem to be interested in traditional journalism as a career. Throughout the early 1990s, the number of students going into journalism has declined, according to a survey conducted by the University of Georgia. While the numbers began to pick up a few years ago, they still lag behind their 1989 peak, when 145,781 undergraduate students enrolled in communications programs. And those who do sign up today are less interested in news. In 1986, the majority of communications students majored in traditional news editorial writing, with advertising, public relations and broadcasting following. In 1997, news editorial dropped to fourth place, behind "other," described as combined PR and advertising specialties, as well as new online services. (Christian Science Monitor 3 Aug 99) http://www.csmonitor.com
HUNGER FOR LOCAL NEWS KEEPS IRISH REGIONALS IN PRINT "If anything, the future of regional newspapers is going to get even rosier," one media specialist says of the state of the local Irish press, which is holding its own. Multinational companies are offering as much as 16 times their earnings for these profitable little products. "I don't think multinationals pose a threat at all," he adds. "They know that what keeps the readership is local news. If it was ever replaced by syndicated material from elsewhere sales would soon drop." Profit margins have increased dramatically in the regional sector, thanks to reduced costs and better technology. But it's local news that wins readers' hearts. Today's readers are more aware and concerned about how decisions are made locally and better informed about issues like the environment. So there's more analysis
A BOOM IN READING MAY BE WINDFALL FOR PUBLISHERS The Baby Boomers are at it again: Teasing an industry by the sheer volume of their everyday activities. This time the industry is publishing, because the activity is reading. The Boomers are doing more of it. Once their kids are grown and out of the house, Americans over 50 have more time, and they're spending about 19 minutes of it a day reading, according to a study by The NPD Group, an international marketing information business. While time spent reading is decreasing among people in every age group, there's a significant increase in reading as people grow older. Younger people spend an average of about 24 minutes per day reading; those over 50 double that. The information was culled from 24,000 men and women who kept daily diaries of all activities for one week during March or April, 1992-1999. (Jules Tewlow, "New Study Shows U.S. That Baby Boomers Are Reading More," U.S. Ifra Correspondent 3 Aug 99)
U.N. ISSUES GUIDELINES ON DEALING WITH THE PRESS In a policy change expected to relax the relationship between the press and its officials, the United Nations recently issued written guidelines on dealing with the news media. To the surprise of many, the new rules allow almost anyone to speak on the record -- "within limits." Those limits are three: that an official speak "only within your area of competence and responsibility," that the person speaking ''provide facts, not opinions or comments," and that "sensitive issues" should be left to designated people within a department or the organization's official representatives. Every employee in effect becomes responsible for judging what's a "sensitive issue" and when to pass it up the ladder. No one will be allowed "to presume or pretend to speak for the Secretary General." Putting the policy to work may take some practice. The organization, many of whose member countries are not known for condoning a free press, has often been secretive about even mundane information. Under the previous Secretary General, most officials in the organization's international headquarters in Manhattan were forbidden to give interviews, or were too afraid to talk. (The New York Times 9 Aug 99) http://www.nytimes.com
PUBLISHING ASSOCIATIONS OPPOSE PROPOSED UNIFORM ACT The Newspaper Association of America and the Magazine Publishers of America recently went on record to oppose the Uniform Computer Information Transactions Act (UCITA). The act, developed by the National Conference of Commissioners on Uniform State Laws, is intended to set consistent rules for the licensing of computer information by the states. It covers such online content as text, images, sound and illustrations. Originally designed for software licensing, the act soon grew to encompass other electronic publishing entities as well. "If UCITA is passed by the state legislatures, what we'll see are different sets of rules governing our print and online products -- despite the fact that both the content and the means by which we acquire the right to publish them are the same," said the president of the newspaper group. The magazine association's officer noted that the commissioners have made substantial and continued changes to nearly every section of the act and said, "Enactment of uniform rules for licenses of electronic information should wait until trade usage has stabilized, so that an acceptable compromise can be reached." (US Newswire 9 Aug 99) http://www.usnewswire.com/
>>>>>>>>>>>> MARKETPLACE
HAMMERING OUT A BUSINESS MODEL FOR ONLINE COMMUNITIES Relying on community organizations to add content and legitimacy to newspaper-provided local Web groups will not be enough to transform them to something beyond a well-meaning goodwill gesture. While the communities are still viewed as a viable and potentially profitable venture, their generally slow takeoff calls for a more concerted effort by online editors and salespeople. In order to tie these community areas to mainstream site activity, publishers will need to break longstanding cultural barriers and convince sales departments to market the less lucrative sites to media buyers. One company that specializes in township technology advises clients to pursue sponsorships first, especially from community-minded organizations like hospitals, utilities and government agencies. And, say developers, help is on the horizon: Upcoming publishing tools are more sophisticated and flexible and will let providers focus on the business model as they smooth out the kinks in the new communities. (Min's New Media Report 2 Aug 99) http://www.minonline.com
AOL AND KNIGHT RIDDER JOIN VIRTUAL FORCES Knight Ridder and America Online have reached a "strategic content agreement" whereby Knight Ridder will provide news and sports stories for AOL's Digital City network, the U.S.'s largest Web-based network of community guides and city resources. In return, Knight Ridder gains access to AOL's larger audience and can perhaps steer them to the company's own network of local information Web sites, Real Cities. The arrangement calls for nine Knight Ridder newspapers to provide editorial material to the corresponding Digital City Web site. The postings will include a hotlink to the Real Cities site. AOL's Digital City network covers 60 cities and gets about 5 million visitors a month. The Real Cities network covers 28 regions and receives 3 million visitors monthly. (San Jose Mercury News 4 Aug 99) http://www.sjmercury.com
OLD MEDIA DOG TEACHING SOME NEW TRICKS Reuters news service, which got its start distributing financial news by carrier pigeons in 1849, reinvented itself to leverage the possibilities posed by the Internet. Today, Reuters sells news to more than 200 Internet sites, including the portal Yahoo Inc., and media companies such as New York Times Co. and Dow Jones & Co. (publisher of The Wall Street Journal). "The Internet was made for the wire services," says Andrew Nibley, president of Reuters NewMedia International, the company's Internet publishing unit. In1998, Web publishing accounted for 55% of Reuter's revenues. And, unlike many other Internet ventures, the NewMedia unit has been profitable since 1997. Reuters' success is due in part to its unique approach. Rather than taking on the cost of running its own Web site initially, the company placed Reuters news on as many sites as would accept it, placing the Reuters name wherever newshounds surf for Web news. Reuters is also adapting its pricing structure for the Net. Inaddition to a flat subscription fee, the company earns revenue from ads that run next to its content, as well as on a usage basis -- when a surfer clicks on its stories or photos, the meter is running. (The Globe and Mail 4 Aug 99) http://www.globeandmail.ca
GALE GROUP EXPANDS HORIZONS The InfoTrac Web, SearchBank and GaleNet online research and information services of the Gale Group, a unit of the Thompson Corporation, will now include newspaper content from 89 major newspapers in Asia, Europe, and North America. Products of the Gale Group < http://www.galegroup.com > are widely used in libraries, schools, and universities worldwide. (Ifra News Report 9 Aug 99)
TORONTO'S NEWSPAPERS GIRD FOR BATTLE -- AT A COST A newspaper war being waged in Toronto, Canada, is hitting all the major players right where it hurts -- in the wallet. Last October, Hollinger International launched the National Post, and competitors Torstar and Thomson responded with higher spending to boost editorial content and hang on to readers. Second-quarter earnings reports show a drop in profits of $16.5 million at Hollinger and $4.5 million at Torstar, publisher of the Toronto Star, resulting from lower ad revenues and higher spending. Thomson, publisher of The Globe and Mail, will release its second quarter earnings report this week, but acknowledges that its profits have been damaged by investments made to "maintain its leadership position in a very competitive Canadian national newspaper marketplace." Independent readership surveys dueto be released in the fall are only expected to heighten the competitive atmosphere. At least one of the players is counting on a makeover to boost its marketability. For more on The Toronto Star's battle plan, read on. (Lethbridge Herald Metro 2 Aug 99) http://www.lis.ab.ca/lherald/
>>>>>>>> TECHNOLOGY
THE TORONTO STAR'S COLORFUL FUTURE In what it is calling "one of the largest and most ambitious newspaper press expansions in the world today," The Toronto Star has spent the summer retooling its German-made Man Roland presses to enable the printing of 40 full-color pages daily. This $60 million undertaking is The Star's response to the city's newspaper war, launched last October when Hollinger International launched the National Post, sending the marketplace into a frenzy of competition for eyeballs and advertising dollars. While The Star claims it's maintained 99.88% of its paid circulation since the rivalry began, the paper's management isn't taking any chances on getting left behind due to inferior color offerings. The press expansion began last January, and round-the-clock construction has been under way since June. To avoid interrupting daily production, a special iron "cap" was built over the work zone, likened to "a flying buttress linked to a cathedral." Work is nearing completion, and Sept. 18 has been set as the day The Star will introduce its new look. (The Toronto Star 31 July 99) http://www.thestar.com/
TECHNOLOGY IS A STRONG ALLY IN BATTLE WITH ELECTRONIC MEDIA "New media are not eroding our revenue base," the president of the Pacific Area Newspaper Publishing Association recently said at the association's annual conference. "The electronic media are being hurt, sometimes badly, in the fierce battle for advertising dollars and for that most precious commodity - our readers' and viewers' time." Others echoed his optimism, noting that the industry is continuing large-scale investments in technology and color presses. The conference, held in Christchurch, New Zealand, for English- speaking publishers in Australasia and Southeast Asia, focused on advances in pre-printing technology and newspaper marketing. The largest exhibit was a $500,000 device that uses laser beams to transmit complete page layouts directly from computer to printing plates ready for the press. (The Press Independent Newspapers Ltd. 4 Aug 99) http://www.press.co.nz/
ONLINE MEDIA "NO THREAT TO NEWSPAPERS" Print is here to stay, despite the implications of information technology and the invasion of visual medium, according to M.V. Nadkarni, vice-chancellor of India's Gulbarga University. Nadkarni was speaking on "Media in the Next Millennium," at a function organized by The Times Group (publishers of The Times of India) and Gulbarga University. Nadkarni praised the role of the press in India, saying newspapers were responsible for improved management of natural disasters such as droughts and floods. H.S. Balram, resident editor of The Times, predicted that the future would hold greater emphasis on local news and events in all forms of media. "Only a few best national newspapers will survive over the years and local newspapers will flourish in a big way," he said. While Balram suggested the possibility of videotape replacing the morning paper, that switchover is not about the happen, he said, unless communication in India is brought on a par with that in the rest of the world. (The Times of India News Service 4 Aug 99) http://www.timesofindia.com
TARGETING "NETJOURNALISM" The Center for Journalism and Continuing Education in Aarhus, Denmark is launching a new 10-month "Netjournalism" training program that focuses on the nature and potential of news and publishing on the Internet. The program covers topics like Usenet groups and news Web sites, and runs from September 1999 to May 2000. See < www.cfje.dk/netjournalistik > for information (in Danish). (Center for Journalism and Continuing Education) http://www.cfje.dk
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