We’ve chronicled the wholesale disintegration of the newspaper industry numerous times on this site. Most recently, we wondered why all the “ideas” for saving newspapers were being proffered by editorial employees rather than those who — you know — know shit about business and shit.
Thankfully, our prayers have been answered.
Romenesko today posted a memo by Dean Singleton and Jody Lodovic, top executives at MediaNews Group — one of the largest newspaper companies in the country. I won’t bore you with too many details, but it’s important that you understand the complex economic formula at the core of the new MediaNews Group online strategy:
WE’RE BROKE + YOU GIVE US MONEY = PROFITS!!!YAY!
Or, as Singleton puts it:
We will begin to move away from putting all of our newspaper content online for free. Instead, we will explore a variety of premium offerings that apply real value to our print content. We are not trying to invent new premium products, but instead tell our existing print readers that what they are buying has real value, and to our online audience (who don’t buy the print edition), that if you want access to all online content, you are going to have to register, and/or pay. If a non-subscriber wants the newspaper content in its entirety online, they will be directed to some sort of registration or pay vehicle (and if they are a print subscriber, they will have full access at no charge). To be clear, the brand value proposition to the consumer is that the newspaper is a product, whether in print or online, which must be paid for.
While Mike Masnick of Techdirt insists that price and value are not the same thing, I think Singleton is exactly right. We should be charged for everything that is valuable to help offset the fiduciary obligations of the creator of that value (especially if the creator’s fiduciary obligations include $500 million worth of printing presses and “airy newsrooms” he bought less than four years ago).
For example, I cannot make coffee without coffee filters. Therefore, they are valuable. That’s why I pay $5,000 for a pack of 20 of them from a very exclusive buyer’s club of which I am a member.