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tschmidt
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join:2000-11-12
Milford, NH
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Newspaper Biz model and Net Neutrality

Newspapers are caught up in a difficult position. I don't have problem paying a subscription fee to paper I have a relationship with but am turned off by "pay as you read" or even having to register to read like NYT.

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.

That issue aside does anyone have concerns about Cablevision's relationship with a newspaper? Do we really want first-mile gatekeepers to have business relationship with content providers?

/tom


BF69
Premium
join:2004-07-28
Camden, TN

said by tschmidt:

Newspapers are caught up in a difficult position. I don't have problem paying a subscription fee to paper I have a relationship with but am turned off by "pay as you read" or even having to register to read like NYT.

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.
the cost of putting an online paper compared to pirnitng say 1,000,000 copies is night and day. So the fact that they don't get as much per ad shoudn't make a difference. here's an idea make the paper version more scarce so more people go online then you can charge more for your online ads.

Like it or not the old ways are going away these industries better get with the program or they'll become extinct.

kind of like the oil companies spending years and billions of $ fighting alternative fuels instead of embracing them and becoming the LEADERS of developing them. Wait too long and you're a follower and not a leader if you exist at all.


james

join:2001-02-26
CWCville USA

reply to tschmidt

said by tschmidt:

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.
Uh, how about not having to own and run printing presses, how about not having to pay people to maintain those, how about not having to pay people to deliver the papers? What about the fact that an online newspaper has a worldwide audience, and thus more potential audience.

The cost to distribute things online is a fraction of a percent of the real world alternative, especially when you're talking about worldwide distribution.


tschmidt
Premium,MVM
join:2000-11-12
Milford, NH
kudos:5
Reviews:
·Fairpoint Commun..
·Hollis Hosting

said by james:

The cost to distribute things online is a fraction of a percent of the real world alternative,
True but one still needs reporter to cover the stories. I don't know enough about the newspaper biz to know how costs break out.

»www.economist.com/blogs/freeexch···mics.cfm

/tom


RARPSL

join:1999-12-08
Suffern, NY

reply to james

said by james:

said by tschmidt:

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.
Uh, how about not having to own and run printing presses, how about not having to pay people to maintain those, how about not having to pay people to deliver the papers? What about the fact that an online newspaper has a worldwide audience, and thus more potential audience.

The cost to distribute things online is a fraction of a percent of the real world alternative, especially when you're talking about worldwide distribution.
There is also the issue that the cost of the newspaper is in two parts - Fixed and Variable. The Fixed cost is everything to do with producing and distributing the paper (the items you mention). The Variable Cost, is that of creating a copy. Thus if you print 1,000,000 copies, the cost is F + 1,000,000 V. This figure includes those copies that you print/distribute but do not actually sell.

With online versions, the Fixed Cost is the cost of making up the HTML, uploading it, and running the Servers and connections. The Variable Cost is that involved with serving a copy (there is no cost for unserved copies).

Since the Online Fixed Cost is much less than the Paper Version's Fixed Cost and the Online Variable Cost is MUCH less than that of printing a copy (with only the needed copy count being for the Online Version with no unneeded copies being created and the cost per copy being minor) the Online Option is much cheaper. The problem is that unless you charge something for online access, the full burden must be carried by the Ads (unlike with the Paper/Online option where the Paper Copy cost subsidizes the Free Online access and the Archive of Old Articles pays for itself).


james

join:2001-02-26
CWCville USA

reply to tschmidt

said by tschmidt:

True but one still needs reporter to cover the stories.
The problem is that these days, almost every article I read is pulled from a wire service and nothing is actually contributed by the website I'm reading the article from, except for abit of spin or selective reporting. IE; I recall a Canadian newspaper was caught changing an AP report that said X civilians were killed in Gaza to X militants were killed in Gaza.


jmn1207
Premium
join:2000-07-19
Ashburn, VA

reply to tschmidt
I don't really see much investigating going on. All of the advertisers pay for these news conglomerates, which are mostly divisions of a much larger media organization. If they want an exclusive story or interview, they have to follow certain rules and formats that will appease these advertisers or they risk losing all of their money. If you want an Obama interview, they give you a list of questions to ask, when to ask them, how to ask them, where the lights should be, where the cameras should point, who can be there when it takes place, and on and on.

That's entertainment, but it's no longer the news. Most of the real journalism is done by people that have distanced themselves from these quasi-corrupt news giants.


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