Archive for the ‘New revenue models’ Category

The newspaper industry is changing around the world, as readers migrate from reading a printed product to consuming the news on their mobile, desktop or tablet. This shift has dealt newspaper owners with the task of  working with the demand for digital news while keeping a healthy profit margin. What threatens profits is the fact that revenue from digital advertising does not bring in the same revenue that print advertising brought in during previous years. The industry has had to develop new revenue models in order to survive. An example of a new revenue model established by some newspaper organizations is the paywall, where readers are charged for access to online news content.

What other new revenue models can help the industry?

On Digg, I found an intriguing article from McGarr Solicitors in Ireland that showed a new revenue model for the newspaper industry that I have never seen before. It could be called revolutionary by some, or protectionist by others. What caught my attention was the controversy that surrounds the model. The Irish newspaper industry is demanding that links to news stories from their websites belonged to them, and that ” … they had the right to set the rates for those links…” should they be used by others. Further, the industry is pushing for unauthorized linking to be declared illegal. McGarr’s article shows an example where a women’s charity was advised to purchase a licence for a newspaper link it made on its website. It’s worth mentioning that the link was to a story that spoke of some of the positive work the charity group had made.

Ironically, none of the Irish newspapers has mentioned any of this in its news stories.

As emphasized in Rohit Bhargava’s 5 New Rules of Social Media Optimization, social media should “Make sharing easy”. If the Irish newspaper industry restricts this sharing, it also misses out on the benefits of social media that include branding, relationship-building with readers, establishing itself as the news authorities, to name a few.

I can somewhat empathize with the industry’s potential arguement that charging for link-sharing will help offset the costs of paying for the industry’s journalists. It could be argued that these educated and experienced journalists bring editorial integrity and value to the news industry. Unfortunately, what the Irish newspaper industry is ignoring is the irreparable damage from the massive online community that will simply find its news elsewhere. For free.

If you were part of the Irish newspaper industry, what would be your next steps?