Solving the Pay-Per-Read Newsprint Decline - Could There Be a New Business Model?

The newsprint paradigm is dying on its feet (orbetter and more sustained screen read than a mobile
should that be 'on the presses'), and traditional newsphone. Also, from the business model perspective,
publishers are trying to find ways of managing thethe ability to feed user-specific advertising content
decline. The younger generations rarely buydown the news pipe is attractive.
newspapers and get most of their news online. AndStorage is typically from 512Mb upward, some
for many of the younger ones, it's that old Simonoffering memory expansion with SD or other format
and Garfunkel lyric - 'gather all the news I need frommemory cards, and MP3 player features are often
the weather report'.included (but there goes your memory!).
Rupert Murdoch (News Corp) is talking aboutContent is the nub of it and one of the big challenges
strategic partnership with Microsoft so that theto be faced. Catalogues of e-book material are often
provision of news can continue to be pay-per-read,specific to the e-reader model, so it's a bit like going
one way or another. Many news channels are lookingto a public library and being told you can only read
at paywalls around their product, but the basicbooks published by, say, Simon and Schuster. Many
problem is 'why should people pay for somethingcatalogues are digitally protected by copy-protection
they can get for free'. Value-add punditry andmechanisms, though there is a lot of free material
household-name columnists are not thought toavailable. And, what does it imply for authors? From
provide enough perceived value to deliver thethe perspective of newspaper groups though,
customers to the news corps. News consumers cancontent is not a problem.
easily get the punditry real-time via blogs, TwitterSome e-readers might come with an inbuilt
and other channel products.subscription to media (such as newspaper publishing
Could it be that the e-reader is the way to go?groups). I do wonder why newspaper groups are not
What's an e-reader? Simply, a paperback sizedoffering free e-readers with a newsfeed subscription.
electronic tablet (maybe with an opening cover)This for me is how the news corporations could get
which accesses, stores and makes available fora new handle on retaining their market. It seems to
reading a range of 'printed' material, typically but notme that the economics are in their favour.
exclusively 'books' - fiction and non fiction, newsAt current (late 2009) pricing levels, typically $250+
articles and so on. Lighter, smaller and simpler thanstreet price for an e-reader with wireless
netbooks or laptops.connectivity, you'd have to buy about 15-20
Of course, 'printed' is an old term. As we movehardbacks a year for an e-reader to be economic
forward, there will be little in the way of hard-copy(even if they were royalty free books, and they are
materialization of news, information and othernot). When you add in the cost of a quality
formerly 'printed' material. E-readers will come intobroadsheet, say just $5 a week, then the economic
their own. Newspaper groups are already in trouble.equation tips rapdily towards e-readers. And again,
E-readers are on the cusp of an explosion.the ability to pipe dynamic user-relevant ads down
In terms of format, they are a little smaller andthe newsfeed strengthens that profitability prospect.
lighter than a netbook, but optimised for reading, andSo much about these gadgets revolves around style
of course saleable to consumers who are notand being an early-adopter. Therein lies the rub - early
interested in carrying a laptop or netbook (for someadoption of e-readers is currently perceived as risky.
a matter of faith). I believe we will eventually see theWhilst Sony have a range of models out, there is talk
convergence of the e-reader and the netbook, but itabout Apple producing a larger format iPhone/ touch
will be a subtle convergence from the e-reader sidescreen tablet PC convergence product. So, the
as more applications are built in. Navigation is by touchtechnology platform has not yet stabilised or
screen using your finger or a stylus or both - this is astandardised in market terms. However, the smart
point to satisfy yourself about before you buy.city-based early adopters are exactly the people who
Presentation is usually black text on white. Imagesbuy the quality broadsheets.
are black and white. Screen resolution is typicallyWho knows what it means for the lower level higher
800x600 pixels. So, its' not quite your broadsheetvolume newprint market. I'm not sure that it offers
newspaper size! Connectivity may be through a USBthem a solution.
hard wired internet connection (or via your PC) orSo, are you really an early adopter, ready to bet
through a wireless link, enabling download of novelsyour money on a particular technology, with echoes
and the like, or digital newspaper material. Of course,of Betamax video recorders? Well, maybe not, but
the potential here is for live news feeds, but peoplee-readers could be the saviour of the more
can get those on their mobile phones now.fleet-of-foot news corporations.
Undoubtedly the larger format does make for a