Hope for Newspapers’ Financial Recovery in Subscriber-based Online Communities?
The Wall Street Journal has launched a
new social network and online community for its one million paid
subscribers. "If if it’s successful, it could provide lessons for other
news organizations trying to build deeper connections with their
readers," observes The New York Times. I hope it works, because that would also offer hope for a paid subscription model to online publications. It's great to read this quote from Alan Murray, deputy editor of the WSJ:
"The Wall Street Journal under its new management (News Corp) is investing in both print and online, so I would say we are very optimistic about the future of newspapers. We may be the only people who are optimistic! We are dedicated to delivering our news on all platforms." The Journal has seen a 26 percent increase in paid online subscriptions over the last two years, he says. And the number of unique users is skyrocketing: "By our numbers, we now have 17 million visitors to WSJ.com" - 8 million more than two years ago..." "We believe that in the future, social networks are going to be an important means of distributing content and of spreading news, and we want to be a part of those networks," Murray told Editor and Publisher.Admittedly, the WSJ demographic is specialized, a niche. But I can imagine a day when newspapers have vibrant online communities that people depend on as part of their social network, both online and offline. If an online community helps me make or save money, or advance my career, I may be willing to pour a percentage of the money made or saved back into the online community as part of my investment in it. Certainly the few hundred dollars a year that newspaper readers pay in subscribing, in dwindling numbers, to the home-delivered pulped wood edition (before converting to the free online edition) ought to be recoverable in services or benefits or the club atmosphere of social support provided by an online community with off-line components. Breakfasts, lunches, dinners, conferences, retreats, small group meetings for niche audiences designed to sell or exchange knowledge and provide a feeling of being "in the know" may be something newspaper companies can build sustainable business models around. That is, this might be possible if newspaper owners don't look only for the short term, to sustain double-digit profit margins no matter if it means laying off reporters who provide core knowledge. There are certainly owners who appear to be so wedded to outmoded business models that they will simply cut corners and drive their companies into the ground, losing so many readers and advertisers that the brand is no longer much of an asset. Drill Deeper: