A step in the right direction. About time Google started paying a decent price for content. Let's hope the AP holds firm on a decent deal. From PaidContent.org. Full story here.

Google Stops Hosting AP Content

In a sign that Google’s negotiations with the Associated Press over a new licensing contract may have reached a standstill, new AP articles are no longer being hosted in Google (NSDQ: GOOG) News; Search Engine Land‘s Danny Sullivan, who first reported the development, says that new AP articles haven’t been hosted on the site since Dec. 24. Google isn’t providing an explanation. The company’s full statement: “We have a licensing agreement with the Associated Press that permits us to host its content on Google properties such as Google News. Some of that content is still available today. At the moment we’re not adding new hosted content from the AP.”

However, the AP has been in the process of renegotiating its licensing agreement with Google, as well as the big portals—and there have been signs that at least the Google talks have not been going so well. AP CEO Tom Curley, for instance, hinted in October that Google, unlike Microsoft (NSDQ: MSFT), hadn’t been willing to acquiesce to some of the AP’s demands, including that it have access to real-time metrics. “We haven’t talked. We haven’t talked. We haven’t talked with them in any serious way,” he said.

The Google deal dates back to three years ago, when the AP gave Google a license to use its content in unspecified ways. In August 2007, Google began to host material produced by the AP, along with other news agencies, directly on Google News for 30 days.

Sullivan theorizes that because the agreement is set to expire at the end of January, Google may be trying to avoid the complication of hosting AP stories that would have to be pulled down in fewer than 30 days. Presumably, that wouldn’t be a concern if it was clear that both sides were willing to re-up.

 

 

 A TargetCast study reveals some positive results for the newspaper industry. Full story, from MarketingCharts, here.

More from the study: 

Hope for Traditional Media

According to TargetCast, the study reveals a “glimmer of hope for traditional mass media.” While 60% of consumers say newspapers need to change the most to stay relevant, most are nevertheless sticking with the media they’ve known for years. For example, those ages 35+ still consider newspaper ads to be more influential in determining their purchase decisions.

Additionally, more than 40%  of adults ages 18-64 say they prefer the experience of reading a printed newspaper vs. online sources, and just 15% of all respondents say they would rather read magazines online. Among those ages 45+, a solid 57% prefer the experience of reading a printed magazine vs. reading a magazine online. A significant number of adults aged 18-64 (41%) also indicate radio is still relevant in their purchase decisions.
Additional study findings:

• Men are more likely than women to indicate that printed news is a less relevant source of news and information.
• Men are currently using the internet more than women to watch TV shows/videos and play games.
• Newspapers and magazines are not considered as relevant today and are easiest to eliminate from usage.
• The biggest usage declines in printed newspapers, magazines and radio are found among men and young adults ages 18-34.
• TV and internet, respectively, identified as most important media.
• Young adults 18-34 rank the internet as more important than TV .
• Men are more likely than women to indicate they would rather listen to pre-recorded music on my mP3 player than the radio.
• Respondents are more likely to disagree with the statement that printed newspapers are more trustworthy than online sources.
• 72% say that they are not willing to pay for an online newspaper subscription to replace their printed newspaper subscription, implying, TargetCast said, that people expect the news online to be free.

“More than ever, marketers must take into account the evolving media preferences of specific target audiences as they refine their approach to connecting with consumers,” said Peter Sedlarcik, SVP, director of insights and analytics at TargetCast tcm. “Yet, while many may declare print media is dead, our findings show that marketing messages in newspapers and magazines still score well in terms of consumer attentiveness and purchase influence.”

 

 

 John Temple, the former publisher of the now defunct Rocky Mountain News, has posted a speech he recently gave on his blog. Read it here. He makes some great arguments and has sound advice for the industry. It is well worth reading.

Here is an excerpt:

"But before I subject the past to scrutiny, you need to know I don’t exempt myself from criticism. I was the top editorial person for the Rocky’s final 11 years and part of the business leadership team. I bear my own share of responsibility. It’s easy when looking back to see things that might seem obvious to us today, but it was a lot more difficult when we were in the thick of the fight, and most of the revenue growth and almost the total revenue pie came from the main newspaper product. That said, the first lesson I hope people who care about the future of local news take from the Rocky’s experience is this: Being a “great newspaper” isn’t enough in the Internet era. You have to know what business you’re in. We thought we were in the newspaper business. Working on the Web, you need to think of now and forever. At a newspaper, people largely think about tomorrow. Thinking about tomorrow isn’t enough anymore. Consumers today want services when, where and how they want them, and they want to be able to participate, not just receive.

Look, it’s understandable that we thought we were in the newspaper business. In the 1990s, Denver was the site of what was sometimes called America’s last great newspaper war. The Denver Post and the Rocky Mountain News had competed for 100 years and each saw the grand prize close at hand. Each wanted to become the only newspaper in town - something we thought of as “owning the Denver market.” We thought winning would guarantee a stable and profitable future. We misunderstood the competitive landscape and put the vast majority of our efforts into the print war.

The problem was we were fighting the last war. We didn’t understand what was happening to the playing field. Media companies used to think they were in control. That they could “own” a market. What we didn’t take into account is that in this new era, consumers were going to be in control."

 

I hope they are right. 

From Paid Content.org: "Forget about what you’ve heard—apparently readers are happy to pay for content. Or at least that’s what News Corp (NYSE: NWS). which plans to charge readers globally for access to News Corp websites, says its internal research has shown. According to a memo from Richard Freudenstein, CEO of News Digital Media, the online arm of News Corp.‘s Australian subsidiary News Limited, the company is confident about the success of the plan, which is entering a “second phase” in Australia.

In a memo leaked to the Sydney Morning Herald, he says: “News has conducted some audience research here in Australia and in the UK and U.S., which gives us confidence that, if we get the product and delivery system right, people will happily pay for news content online, on their computer, mobile, e-reader or other devices.”

 

This survey  shows that Americans believe TV news and information is the most credible, followed by radio and daily newspapers. Sometimes you read these surveys and wonder what the actual questions were because it is hard to imagine that anyone believes TV news is more credible than print. I don't like to comment on content because everyone else does but here is one example of "credibility" in TV journalism. Last summer there was an unfortunate incident in Connecticut in which a woman literally had her face riped off by a pet chimpanzee owned by a friend. It was a crazy story and a very sad one for the injured woman and ultimately the chimpanzee. However, the breathless coverage it received from local news was similar to what you would expect if Bridgeport had fallen into the sea. There was live coverage from outside the home for weeks. There were people interviewed who had been in the house once and seen the chimpanzee, etc. It was a circus and the farthest thing from credible that can be imagined. My experience has been that most people are pretty smart and know the difference between entertainment and news, which makes me question these types of surveys. 

 

Newspapers are on their way to bouncing back, according to a prediction made by Borrell Associates. Full article can be read on Marketing Charts

The article outlines the following reasons Borrell believes they are on the right path to recovery: 

1. First in, first out: Newspapers were the first medium that the internet forced into a “period of adjustment,” and they will be the first to emerge from it after working their way up the learning curve.
2. Big papers took the hit: When the internet decimated classifieds and major retail, this affected the industry’s biggest papers which took the whole industry’s revenues down. However, the revenue decline has been much less severe for the majority of the US’s smaller newspapers. For these papers, Borrell expects growth to come from geographical targeting to a wide base of non-classified, non-department-store local advertisers. This will happen even as larger papers continue to experience layoffs, abbreviated publication schedules and outright closures in order to “right-size” themselves.
3. Newspapers selling smarter: After emerging from a long-time, complacent “comfort zone,” newspaper sales and marketing teams are evolving in earnest. They are becoming proactive about discovering and meeting customer needs, selling against the competition, and taking no client for granted, especially in local ad markets.
4. A rising tide lifts some boats more than others: As the country’s economy begins to improve in the latter part of this year, newspapers will capture a bit more of the
   resulting growth in ad spending than their current share. This will come in part from growth in pre-print and free-standing insert revenue from advertisers migrating out of direct mail. Additionally, the auto, real estate and recruitment sectors will resurge as the economy improves and some revenue will flow to newspapers.
5. Internet contributions: Beyond simply enduring the punch landed by the internet, newspapers are using the web to generate a significant portion of their revenues and profits. Although Borrell Associates counts newspaper online revenues as online rather than newspaper revenue, it forecasts that side of the business will begin to provide more support to the print side.