Posts tagged ‘Kindle’
Here’s a thoughtful if longish post from Clay Shirky on the travails of the newspaper industry. If what he and others (including your esteemed lecturer) have been saying is true, magazines will be circling the drain soon as well. It’s not a question of whether people like reading things in print; it’s all about economics, and printing things on paper (and then distributing that paper to everyone who would like to read what’s on it) is a damned expensive proposition.
This is a moment of seismic shift in the advertising industry. Large agencies will find themselves no longer in need of their print production studios and absolutely bereft of people with the digital skills whom they will need to replace them. Astonishingly, despite the warning shots that have been crossing the bow of these agencies for years, quite a few of them will be caught flat-footed. This is because people who don’t understand the fundamental shift in the media world have been wasting their energy attempting to defend television against the onslaught of the internet. TV will be just fine. It will become more interactive every day, but it certainly isn’t going away. Print, on the other hand, awaits its iPod–the thing that will finally and utterly make paper a collector’s item. It may be the Kindle, but it will most certainly be something.
That dull thud you hear in the distance is a stake being pounded through the barely beating heart of the New York Times. Silicon Alley Insider is reporting a startling fact–namely that it would be cheaper by half to send every New York Times subscriber a free Kindle than to print the newspaper for a year. Check their math here. Remarkable stuff.
It’s no secret the New York Times is in dire condition. The company has already had to borrow against its headquarters building, and more recently, Pinch Sulzberger sold a stake in the newspaper to Mexican billionaire Carlos Slim. With all due respect to the management team, the newspaper doesn’t need an injection of cash. It needs a radically new business model that addresses the way people consume news in the 21st century.
My friend Tom Hansen, who runs TM Advertising in Dallas, summed the problem up perfectly while talking about another newspaper, USA Today. Because of the printing and delivery processes that are inherent in producing a daily newspaper, USA Today, in Tom’s words, “is actually USA Yesterday.” And in an age where information is available instantaneously, yesterday is as relevant as the Eisenhower administration.
News has become, for the most part, a commodity. This means the New York Times and indeed all newspapers must answer some difficult questions. What can they offer consumers who can get their news anywhere and get it for free? Will what they offer–whether it’s the opinions of a handful of highly regarded writers, a few in-depth stories that are not available anywhere else–command substantially less value than the company’s shareholders are used to? And perhaps most importantly, will the people who produce that content realize that they no longer need a newspaper to act as a middleman between them and the consumer?
Ordinarily, I am not in the business of offering financial advice, but if someone offers you controlling interest of the New York Times for free, you may want to consider saying no.