June 19 |
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Why the Printed Page Is Holding Its Own
Source: Financial Times
Digital newspapers and magazines could bridge the worlds, of pulp and the web, meeting readers different needs while generating new revenue streams
With the internet and the plethora of electronic gadgets available to deliver news, why are so many of you, reading this article on a sheet of pink-colored paper made from dead wood?
Because, quite simply, the newspaper, for all its flaws, remains the handiest portable device for delivering hundreds of thousands of words to you every day to read quickly and comfortably at the kitchen table, on the train or in the plane. Which is not to say that newspapers or magazines cannot be improved?
New distribution models have emerged, promising to enhance the .reading experience, boost circulation and create international brand recognition.
While some models, such as NewspaperDirect, still use' paper as the end product, others, such as Newsstand, are fully electronic. Yet all have one thing in common: unlike the websites of newspapers and magazines designed for net-savvy users, these are exact replicas of print versions.
They render well-branded content over the internet or in an electronic format to readers who cherish the editorial judgment that goes into laying out pages and selecting stories, even the advertising that runs alongside.
Still, critics question the wisdom of duplicating newspapers and magazines electronically when websites already deliver most of the content. And they point to advertisers who, for now, have fled electronic services en masse. Given the advertising recession, some publishers admit these are not the best of times to experiment.
"Advertising is not just about paying so many dollars to reach a certain number of eyeballs; it's also about impact, about how people absorb the message," says Malcolm Laws, group publishing director at Advanstar Communications, which has tested electronic magazines.
"Many advertisers don't know what they're getting into with electronic publishing," he says. "And given the current climate, they aren't willing to probe."
Victim
The emerging market for digital distribution has already claimed one victim, PressPoint. But the company's demise, industry-observers say, was largely the result of the internet bubble bursting and panicky investors fleeing, not its business model.
Champions of digital distribution point to the technology's many advantages, such as low-cost, efficient and almost instantaneous worldwide penetration, as well as "digital intimacy" and flexibility with readers.
They also claim their solutions integrate seamlessly with established newspaper and magazine production workflow systems, meaning little additional cost to publishers.
Over the past two years, several digital distribution companies, the vast majority of them US-based, have entered the fray. And more could be on the way.
NewspaperDirect uses proprietary technology to distribute and print digitally imaged, tabloid-format newspapers through a global network of licensed partners, as far a field as Cancun, Hong Kong and St. Petersburg.
Publishers send a file of their newspaper to the company, which processes and compresses the data before sending it over the internet to high-speed laser printers. The machines print A3-size pages on both sides and staple them. While tabloid papers are duplicated exactly, broadsheet papers are reduced between 10-15 per cent.
Operating as a wholesaler, NewspaperDirect services high-end hotels, cruise lines, corporations and other organizations which deliver newspapers to readers who either do not want or have no means to read online.
So far, more than 100 newspapers around the globe have signed up, including The New York Times, Frankfurter Allgemeine Zeitung and El Pais.
"One of our strengths is that we know our customers and can therefore customize products," says Newspaper-Direct chief executive Miljenko Horvat. "We could, for instance, produce a male or female version, with advertising customized for each group."
PEPC Worldwide, backed by IBM, is a direct rival which also prints out papers, but sells them directly to readers.
The company uses multicast satellite delivery to download newspaper files to kiosk systems, which are equipped with a touch screen computer and printer. Customers can use their credit cards to purchase and print on demand the latest edition of their favorite newspapers within minutes. By comparison, Newsstand avoids paper altogether, distributing digital newspapers in their traditional print-style format via the internet. Readers download an electronic copy of each day's paper to their computer, paying on a subscription basis. They need proprietary software to read the compressed files, which can range from a colossal 25 mega bytes for the New York Times to 8 mega bytes for the Wall Street Journal, which has fewer pages and pictures and less color.
Features
The service, with zoom-in and zoom-out features for easy reading, also has some interactive functions, such as "hot" URLs that automatically direct readers to websites.
NewsStand has 17 newspapers as customers, including The New York Times, which is also a shareholder. "Basically, with digital distribution technology, any publication can become international overnight, and that's a big selling point," says Newsstand chief executive Kit Webster. "But the only way for us to make our model work is to automate, as we have. If there is much manual work required, it's difficult to make money In this business."
NewspaperDirect has developed' a rival online product, which the company will introduce "if Newsstand proves to be a profitable model," says Mr Horvat.
Another online variation comes via Olive Software. Its Active Paper Daily software enables publishers to distribute a fully web-enabled digital edition of their newspapers. Readers browse the newspaper online in its original format and click stories of interest, which are immediately enlarged to an easily readable size.
Readers require no special software and can access the paper immediately without having to download bulky PDF files, but require a net connection which can be a problem for those on the move.
Olive's strategy is to sell its software to publishers for them to develop their own electronic newspapers. The technology so far has attracted several publishers, including Vienna's Der Standard, the Washington Post and the L.A.Times.
Given their numbers, magazines could represent an even bigger market for electronic publishing. Digital publishers see savings of up to 50 per cent, over traditional paper circulation, not to mention additional revenue from new readers and new advertisers targeting an international audience.
Zinio Systems has developed proprietary reading software based on popular PDF technology. The software enables readers to download graphically-rich, interactive content over the internet. They can interact with content using zoom, full-text search and electronic note features.
Zinio is currently targeting technology and professional publications, a market that chief executive Mike Edelhart claims to be particularly attractive to electronic publishers. Readers of these magazines, he says, appreciate the convenience of "fully searchable, always-available digital publications." PC Magazine and Info World are among its customers.
Digital newspapers and magazines could bridge the worlds of pulp and the web, meeting readers' different needs while generating new revenue streams, But whether bits will ever replace atoms—well, that's another story.
John Blau
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