Flash said:
Telling Cuban to buy more ads is entirely unrealistic. Just as his blog says, the fans are getting their information, like game times, player bios, etc., off the web. Advertising dollars are falling daily for this reason, because organizations and companies want to use their money effectively.
My question to Monsieur Cuban would be whether he could see a future in newspapers making money off the net. Steve Rubel says that all readable media will be in digital form by 2014.
There has to be a way for newspapers to move onto an all-digital format and make business sense ... but how?
newspapers can easily be 100pct digital. Online, mobile, delivered on TV, bits are bits and can go anywhere. But then you are not newspapers. You are digital aggregators like the Huffington Post. Then, just like any other media outlet, you will specialize and grovel for ratings and or unique users. Then you will struggle to figure out how to deal with the ups and downs of digital media monetization.
The problem with newspapers is that they want both. They want to be able to support the infrastructures they have evolved to, but cant figure out how to make money from, and they want to use digital to cover up the inefficiensies of their current business models. Cant happen anymore.
If newspapers want to survive in any semblance of today's form. They have to either declare bankruptcy and start completely from scratch, with a cost structure that matches their revenues and can survive dramatic revenue swings. Or, they have to find a new paradigm that delivers revenue and profits and makes the newspaper an attractive purchase for consumers
Personally, I think amazon.com is a better model for newspapers than traditional websites. Amazon delivers physical product to the home. That is their primary business. Newspapers deliver information in physical form to homes and to newstands. With this in mind, what can complement the newspaper and be delivered to the home and newstands that will be perceived as such a significant value its a no brainer for anyone from age 12 to 100 to buy.
In britain they packaged a prince CD. cost per newspaper for the CD itself was how much ? What can be bundled, other than newsprint with the paper that is perceived as significant value? A movie service ? Have the homes pay 25 bucks 1 time for an 8gbs usb drive , every week they swap that device for another with 8 to 10 new movies. Or maybe its videos of all the games of all the major sports teams in the market. Maybe its 1k songs from statewide artists. Maybe its a free book in kindle or PDF format. If the Dallas Morning News gave me 250k dollars per year, I would supply them with at lest one movie per week. Barter me a page a month, they can have all the videos of mavs games. Would that sell another 5k subscribers ? If they want to give me a full page ad in the DMN 1x a month. I will give them free passes to the local Landmark theaters to use during our slow times and pay them every time someone used the pass. Im sure there are far better ideas than what i can come up with off the top of my head. But you get the idea. How do you create compelling consumer value that makes people want to subscribe.
I have always felt that delivery to the home of media, things that take a lot of bits and consume far too much time to download, or cost too much to download, could be delivered better on a USB drive by your paper boy.
Think of it as a netflix type service for content that the paper either owns or can license that is of perceived value in its market.
Then there is the use of the papers advertising. Why not a Cost Per Action, Cost Per Lead or Cost per inquiry or sale mode ? Again, I dont know what the marginal cost of 1 more page in the nwspaper is, but Im sure there is a lawyer in your town willing to try to sell mesothelenonia (sp?) or some other hard to spell disease services that would pay per lead. Just like they do on TV. Think that PC Professor guy could sell enough software on an ongoing basis to more than cover the pricing of ads ? You can even draw the line at Girls Gone Wild.
BOttom line is that papers have to realize that they make it to the front door of people's homes. There is a value proposition out there somewhere that would compel consumers to want to have a newspaper subscription