Jim

News items of interest to Smartnews enthusiasts

In Biz, editor, Freelance, News, newspaper, publish, publisher, Publishing, smartnews, startup, The news biz, venture on April 5, 2009 at 7:59 pm

A couple of interesting Forbes items I ran across via Twitter this afternoon.

First is last year’s article on newspapers’ revolt against Associated Press. Buried down in there is some fun stuff about the amount of money at stake. According to Forbes, AP only derives about 30 percent of its income from newspapers. That surprised me.

U.S. newspapers paid about $215 million in annual content fees to AP last year, even as they provided up to 30% of the reporting that composes AP’s daily state news coverage. AP’s fees currently average around $143,000 per paper, but the actual amount a newspaper pays per year varies greatly from paper to paper, with the largest dailies paying well in excess of $1 million a year.

That’s a boatload of cash. Maybe not AIG money, but still.
And then this:

… any alternatives would have a hard time matching the breadth and timeliness of AP’s daily news report, particularly on state news, breaking national news, photography and sports. Still, that hasn’t stopped editors from shopping around. For instance, sports news agency PA SportsTicker has experienced an uptick in inquiries from U.S. newspapers about its services, according to Sales Director Jay Imus.

Naturally, we envision a network of journalists so broad it could really begin to make a dent in this argument. Erica Smith has tallied up nearly 8,000 layoffs and buyouts at U.S. newspapers in 2009. How many of those are writers, editors, photographers, graphic artists, designers, Web developers? If just one-tenth of them sold content through Smartnews, that’d be a hell of an amazing body or work.
Meanwhile:
The other article describes Rupert Murdoch getting on the ‘hey, maybe we should sue Google’ bandwagon. (This article’s where I found the link to the item about AP.)
Here’s an interesting thought at the bottom of this article, from Anthony Moor, deputy managing editor of the Dallas Morning News Online.

“I wish newspapers could act together to negotiate better terms with companies like Google. Better yet, what would happen if we all turned our sites off to search engines for a week? By creating scarcity, we might finally get fair value for the work we do.”

Would newspapers have the balls to try something like that?

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  1. Hi, I’m Anthony Moor. I want to point out that the Forbes reporter made it appear as if I’m aligned with Murdoch. My quote really was more along the lines of idle musing about what effect would ‘turning off’ our content from free digital distribution have on its value? But I don’t seriously believe making something harder to find would substitute for fixing our business model.

    Clearly, Google is an essential tool for organizing the Web.

    My concern is they’ve got a monopoly on that, and own the secret algorithms to do so — which makes the rest of us dependant on their good will for receiving all the traffic we do receive from them. Can we afford to give them that much monopoly power? (And what difference does it make if we say “no?”)

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