Saturday, October 13, 2012

Digital first isn’t an option for media — it’s the only way forward

gigaom reporting:
Everywhere you look in the traditional media industry, you can see signs of turmoil and disruption: to take just a few recent examples, the New York Times is fighting with its union over cutbacks to benefits, The Guardian is looking at forced layoffs to cut costs, and the Journal Register Co. recently filed for bankruptcy for the second time. And yet, there are still some industry leaders who question whether newspapers and other outlets should be focusing on “digital first,” something that journalism professor Paul Bradshaw argues is a waste of both time and energy, at a time when the industry needs those things the most. He is right — the question isn’t whether digital should be first, it’s whether those who aren’t focusing on “digital first” will even be around to participate in the debate for much longer.
The bankruptcy filing by the Journal Register Co. seems to have sparked a lot of the recent dissent over the issue, if only because the chain of daily and weekly papers had been the poster child for digital initiatives at parent company Digital First Media — including a restructuring of management to focus on the web and innovative projects such as an open “community newsroom.” To some, the financial failure of the chain looks like a failure of the entire digital-first philosophy, despite the fact that Digital First CEO John Paton has explained the Journal-Register’s troubles are based more on legacy costs such as printing contracts and pension obligations for past employees.

To take just one example, Bradshaw notes that industry magazine Editor & Publisher carried an editorial on Monday that questioned whether focusing on digital first is the right road to success, since even the Journal Register Co. couldn’t seem to make it work:
“[F]or all the hype about embracing digital platforms, the constant drum beat of new projects, and the relentless self-promotion, digital first wasn’t enough to keep JRC from sinking back into bankruptcy, leaving other publishers wondering, ‘If digital first won’t work, what will?’”
This kind of attitude shows a profound misunderstanding of where the newspaper industry is, and how it needs to move forward. Like virtually every other mainstream paper and magazine publisher — many of whom are likely fighting desperately to stave off a similar filing — the Journal Register’s biggest problem is that while its print business is still producing the lion’s share of its revenue, that figure is shrinking rapidly. And even though most executives in the industry seem to appreciate that digital has to come first, the revenue from that business isn’t picking up the slack. This is the “digital pennies for analog dimes” problem.
http://gigaom.com/2012/10/09/digital-first-isnt-an-option-for-media-its-the-only-way-forward/

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