Metaprinter Offers a New, Innovative, Digital Newspaper Business Model – Infinite Zoning

My readers, and the subjects of my rants, know that I cannot stand when a rehashed idea is unjustly called an innovation.  When I see such things, especially when an industry “expert” is involved, I call them out on it.  Some people think I’m insensitive but I just tell it like I see it.  It does no good to the newspaper industry to applaud mediocrity, not at this critical point.  So in late August when I criticized newspaper designer Mario Garcia and his redesign business, I did just that.

I also understand that it is too easy to just criticize and offer up platitudes.  I must defend my definition of innovation, no?  Below is something I’ve been working on since 2007 that addresses many issues destroying the newspaper industry. It is a well thought out (if I don’t say so my self), well argued, and viable. It is a digital newspaper business model which could be launched TODAY should an investor or publisher choose to do so.  ENJOY!

The My Post Infinite Zoning model

Market Demand:
A paradigm shift in information streams has fragmented traditional newspaper and magazine business models. Former subscribers are fleeing print media to fill their customization and personalization needs online.

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Part 2-The Best News Reporting Story About The Housing Crisis is Not In a Newspaper

As noted in part one of this story: This American Life’s Alex Blumberg and NPR’s Adam Davidson—the two guys who reported the Giant Pool of Money episode—are back, this time in collaboration with National Public Radio’s Planet Money podcast. In this episode, they explain what happened this week, including what regulators could’ve done to prevent this financial crisis from happening in the first place. 

Once again, this is THE BEST news reporting going on regarding the housing crisis.  Did you watch CNBC last week?  Jim Cramer is in a panic

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Part 1-The Best News Reporting Story About The Housing Crisis is Not In a Newspaper

Don’t panic, but don’t change the channel either! We look high and low to find out what the heck is happening to the U.S. economy and how the mortgage crisis started. We look to our traditional news sources for information to use as guidance, to inform us, to make sound decisions, and to put our minds at ease. The broadcast news companies like CNN, and Fox news do a terrible job of this. Their reporting is frantic and seems to be interested only in generating eyeballs for the moment, as Neil Postman would say, “now this…” .

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The Right Way to Use New Technology – LA Times Uses Django to Power Metrolink Crash Database

A while back I wrote a story about The Rocky Mountain News and their incredibly stupid use of Twitter. I would like to report now on a fantastic usage of newer technology by a newspaper.

The California Metrolink crash on September 12, 2008 was covered by The LA Times website with a Django powered database. The database was up and running in only 3 hours once the decision was made to utilize it. I commend Megan Garvey, morning Metro assignment editor and Ben Welsh, database producer, for the outstanding job they did in reporting this tragedy. Continue reading

APT, Yahoo’s New Digital Ad Platform – Good for Newspapers?

I would say that most newspapers around the world are not suffering because they lost out on worldwide advertising. Newspapers have lost touch with the communities they used to serve so well.  If anything, Newspapers need to be developing their own LOCAL advertising platform.  I often see new 3rd party applications being utilized by newspapers for a share of their revenue stream and I wonder what the long-term implications are to the owners’ equity.

Yahoo also hopes the new platform will help the ailing newspaper industry, by transforming poorly performing remnant advertising into higher performing revenue streams. “We touch more users around the world than any publisher could dream to do,” says John Slade, Yahoo’s Vice President of Product Management. Continue reading

What Is A Newspaper’s Greatest Asset?

I have been contemplating this a lot for the past couple of months now.  In light of all the changes in information delivery, what is a newspaper organization’s greatest asset?  What differentiates it from other forms of information delivery?  What does a newspaper do that Google can’t do?  That CNN can’t do?  That news aggregators can’t do? That the internet alone can’t do?

Newspapers deliver a physical product to people’s homes and businesses.  And not only that, the product is invited into the home or office by the subscriber.  No one else can do this.

The big problem for newspapers is that although they hold this monopoly, they haven’t evolved their product to serve their customers, hence the migration online – away from print.

The Daily Sentinel in Grand Junction Colorado has a unique spin on this conundrum.   Instead of innovating their newspaper, they decided to offer a delivery service to anyone in their newspaper distribution area.

The Sentinel Express operates by using existing trucks and delivery logistics to deliver packages overnight.  The courier service is almost 3 times as cheap as using DHL, Fed Ex, or UPS.

I like this kind of out-of-the-box thinking, however you are now moving further away from your core competency.   I wonder if that’s what parent company COX thought too, because they announced last week they are selling the newspaper.

The Top 3 Reasons People Still Read A Printed Newspaper

A question I put forth on Linked In and some responses below.

View LinkedIN Q&A Thread The Top 3 Reasons People Still Read A Printed Newspaper (versus online):

1. I read it on mass transit NY/NJ  2. I subscribe to the wall street journal because trying to read their content online would melt my eyes  3. After looking at a computer all day, my eyes need a rest.

1. Online you can then switch to other work activities easily, in print, you stay reading the newspaper  2. I identify the print with weekends and reading the non “latest news” sections – it is relaxing  3. You can rip out good cartoons and put them on the fridge or notice board for others to see

1. In print the ads are not flashing or waving at me.  2. When I disagree with a position article I can tear up the newspaper.   3. There is no comfortable way to lean back, cross one leg over the other and look sophisticated while squinting at a monitor.

There are only two reason anyone would want to read the local paper (San Francisco Chronicle) and thats the local news and the obituaries. Having grown up in San Francisco both are important, but other then that it is a very poor source of news at best.

1) Computer keyboard gets sticky if I spill orange juice on it while eating breakfast.  2) Hard to keep computer screen steady while jogging on treadmill  3) Computer screen is ruined when I fill out crossword puzzle in ink

CLICK this link to see all the answers…

Who exactly is the Star Ledger planning on selling the newspaper to?

I did a little digging to see how much one would have to pony up for buying The Star-Ledger should they decide to go ahead with their plan on October 1st. I have come to the conclusion that the paper is unsellable in its current business format, check out the links below.

So why would anyone buy this failing newspaper? I suspect a company would only be looking to absorb the intellectual property into their own organization. Everything else, the capital equipment, the people, the business contracts,.. all down the tubes.

I’ve said it once, and i’ll say it again, “if all the Star Ledger does is lay off 200 workers, the paper will fail”. The company needs a major replacement of leadership. How in gods name does the biggest and most powerful newspaper in the state of New Jersey go bankrupt?  I’ll tell you how, failure of planning, severe lack of innovation, and a total disregard for their customer’s needs.  

Having said that, potential suitors include but are not limited to: 

  • Gannett owns a few papers in the state and prints in NJ and upstate NY. I suppose they would be the top contender. I don’t think shareholders would be pleased with a newspaper company purchase right now though.
  • Followed by the New York Daily News with operations in Jersey City.
  • Followed by Sam Zell, because he is pretty unpredictable (which is probably a good thing right now). Hey Sam if you are reading this, email me. I have a really great newspaper business model idea and I think you are just the guy to try it out.
  • Then there is the outside chance Mr. Newhouse sells it to himself, gets rid of all his union problems and does something truly innovative. Be the first Major newspaper to go completely online.
    • If Samuel Irving Newhouse Jr. figures the company is a complete wash anyway, why not turn it into a grand experiment?
    • It could be a litmus test for the 27 other newspapers he owns through Advance Publications

NEW YORK TIMES :WANT to buy a newspaper company? No? You’re in good companyREAD MORE

The Newspaper As A Strong Brand

Newspapers get a bad rap on a lot of fronts in this internet age of instant gratification. Let’s pause and take a few moments to appreciate some of the finer qualities of a newspaper business.

When a newspaper serves its local market it can stay relevant. Two days a week I’m in Manhattan and you can’t help but trip over a NY Post or NY Daily News. These two publications are designed and executed to better suit their fast paced commuting readers. The tabloid style format and flashy photos, short stories, and bold, catchy headlines are just some of the features drawing people to these publications. Now take this idea and extrapolate it out to the area your paper is operating in and serve your content to that end.

Brand recognition is high among newspapers, mostly because they have dominated their communities for decades before the internet came along. Newspapers need to build on this recognition. A strong brand is an essential thing to be successful and a difficult thing to attain. My recent article in which the Shelby Star is highlighted shows how a community paper uses its strong local brand combined with a little technology to grow readership. Members of that community know exactly where to go for their local information, whether they like it or not, the paper and the website are their destination for knowledge and discussion.

How Is It That McClatchy CEO Gary Pruitt Is Still Employed?

I recently received my Presstime Magazine from NAA. In it, the Newspaper Association of America announced their new incoming Chairman would be Gary Pruitt. Gary is the CEO of The McClatchy Co. As reported on Yahoo finance,

Its newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer. As of December 31, 2007, the company owned 30 daily       newspapers and approximately 50 non dailies located in 29 markets.”

A $100 stake in MNI purchased on April 23, 2005 would today be worth $12.40. This represents an 87.6% decline in shareholder value. Here is how other newspaper publishers have fared during that same time span:

  • NYT -40.3%
  • WPO  -19.6%
  • GCI    -64.2%
  • BLC -45.9%
  • SSP  -14.1%
  • MEG -77.4%
  • GHS -77.0%
  • JRN -62.8%

In his bio, Mr. Pruitt has been CEO of MNI since 1996. From then until 2005 he increased shareholder value almost 600% But the times have changed. The paradigm has shifted. McClatchy needs a new LEADER, someone with a new skill set to lead and inspire in this new media landscape. For him to be the choice for NAA Chairman speaks volumes about how out of touch and lost that organization has become. I wanted so much for someone from forward thinking organizations such as Scripps or Washington Post to be the next chairperson. Oh boy. Where is the innovation? How is your organization adapting to the market expectations?

KBA The New Choice For Newspaper Operations?

Last year I wrote about the Kansas City Star’s new 200 million dollar printing plant which utilizes KBA presses.  Now the New York Daily News has announced that they will go with a 15 Tower KBA Commander for their new press coming on line in 2009.  The presses and equipment are quite advanced for newspapers, and the investment makes a bold statement that this business model is here to stay.  This also pushes the hand of NY Post to invest in major upgrades to maintain their competitiveness with the Daily News.

I would expect NYT stock to rise on this news, however they are already deep into a major (Goss) press install at their College Point facility.  Either way, it is nice to see paper owners investing in new equipment given the fact that most papers use the same presses for 20 to 30 years…

If The Wall Street Journal Online Becomes Free, Why Should I Renew?

Sources state that Rupert Murdoch is strongly considering opening up the online arm of the Wall Street Journal for free to the public. The thinking is that it will increase revenue more than the subscription fees account for. I’m in a situation right now where my print subscription will expire in a few weeks. So do I let the subscription lapse and wait for my free content or do I renew and hope for refund? I’m leaning towards lapse…

Since the inception of its online website the WSJ has been a paid format. To date there are approximately 980,000 paid subscribers paying about 80 dollars each so I figure they make 80million dollars a year off paid subscribers alone. Conversely, the New York Times (who’s website is totally free after canning TimesSelect) receives approximately 400 million dollars a year from advertisers on its site NYT.com. It is a tough call giving up guaranteed money, but I know that WSJ stuck its foot in its mouth for even mentioning it. I believe they now MUST provide the content for free online. Expect it soon.

So, where does this leave me? I certainly don’t want to be the last idiot who renews his subscription moments before the service is terminated. Sure I’ll get a refund, but the emotional implications… just kidding. Seriously though, I get the student rate for a 1 year print subscription which includes unlimited online access. I commute into NYC two to three times a week and I love having the paper with me on the trip. Also, my eyes can only take so much from a back lit display, so… I’m keeping my subscription. You get my money for one more year Rupert.

How is a newspaper printed?

I was stuck in NY PENN station waiting for my train and I struck up a conversation with the business man sitting next to me. We got around to talking about what we do for a living and when I told him I print newspapers he became quite interested in the whole process. It is at this point I realized most people have no idea how their newspaper is printed. So here I will attempt to tell and show you.

Most newspapers are printed on non-heatset offset web presses. These are large presses taking up a few hundred feet in length and usually two or three stories high. Here is a press by TKS. This is a press from MAN ROLAND. Here is another from GOSS.

Let’s begin by following the paper as it transforms from large 1800 lb. rolls to a completed newspaper. The newsprint rolls begin their transformation in a reel stand at the base of a printing unit. In this picture you can clearly see one roll of paper in a reel stand. There are usually two or three rolls of newsprint in one reel stand and one stand at the bottom of each printing unit. The TKS printing press above has ten printing units. The paper is pulled through the press and off the roll while the press is running as the roll expires it is pasted to the incoming roll and a new roll is now loaded into the reel stand. This is all done while the press is running so that it does not have to be shut down for more paper.

The paper travels out of the basement or reel room and through the printing unit. This can either be a mono (or black) unit or a color unit. The mono units are simple and print blanket to blanket applying black text to both sides of the newsprint at the same time. Color units are more complex. Most color sequences on offset litho printing will be CMYK although KCMY can also be used. The color can be printed back to back in a Tower configuration or on a satellite using a Common impression cylinder or CIC.

After the ink has been applied, slitters (circular cutting knives), angle bars, and former pans are used to position sheets in certain locations and to create the sections of the newspaper. Here is a great head on photo of a former pan. You can see how as the paper travels down, it gets folded in half (along the spine on a broadsheet, along the top and cut on a tabloid). Newspaper presses have 2 to 4 former pans and can create 2 to 8 sections with these.

Remember, the sheets are still long continuous sheets of newsprint at this point. But they are folded neatly into their sections in the proper order. The last step is for the paper to continue being pulled into the rotating folder and cut at exactly the correct moment. The jagged edge you see at the top and bottom of your newspaper is this cut. Moments after being cut a Tucker Blade forces the paper into a set of Folding Rollers and out of the folder onto a conveyor delivery system off to the mail room for packaging. That last trip through the Folding Rollers creates the fold everyone sees when the paper is sitting on the news stand.

TA DA! you now know (very crudely) how a newspaper is created on an offset lithographic press. If anyone would like clarifications on anything please email me or leave a comment.

Newspaper offset web press