Modernize Newspapers

IT will set local media, newspapers free

Maybe I'm naive as someone who has built a career in the Internet, but I still don't understand a fundamental issue about local media.  IT departments at most local media companies are more often an afterthought than a strategic asset.  Local media has dealt with the Internet as a "necessary evil" instead of an opportunity for disruption.

The tech industry has examples of things that appear to be "out of left field."  Consider the case of Amazon -- originally founded as an online bookseller, they branched out into other retail products.  Then they did the unfathomable:  they launched Amazon Web Services to get into the application and data hosting/services business.  They didn't know where that business was headed, but they knew there was growth.  Google has launched a variety of experiments -- some fruitful like Google Docs and others not so successful.  But they're willingness to think expansively about their business is a major contributor to shareholder value and to serendipity that drives future growth.

I don't see similar experimentation yet in the local media business.  I am not sure if it is a lack of commitment, the lack of developer & IT business talent, or what.  But you'd think that there would be a few cases of major media companies tackling new challenges.

As a direct result, you've seen innovations from disruptors like Craigslist, match.com, eHarmony, Zillow, blogging, hyperlocal publications, Google (News) itself, and others.  None of them could take down a local media powerhouse, but collectively, they have the potential to take all the economic value once owned by the local newspaper.

So here's what I don't get...

If local media sees all this disruption coming from IT, why wouldn't local media treat IT as a STRATEGIC IMPERATIVE moving forward?

Newspapers as Local Tech Resellers

Much attention has been given to old business models as folks in the local media business struggle to figure out how to make newspapers economically viable.

I have an idea that I'd like to throw into the ring -- turn newspapers into resellers of technology products to the local market.

Newspapers have a large local sales force that understands the need of local businesses.  Sure, in some cases, the sales force at your local newspaper is nothing more than a group of semi-qualified "order takers", but if that remains the case then it would behoove each local paper to get rid of everyone on staff and outsource sales to a call center in India.  "Order takers" have to become more economically viable, or they'll be replaced or eliminated over time.

Local businesses need help navigating technology.  Even in 2009, a lot of people don't understand the value of technology and how it can (and often is) harnessed to help businesses be more productive, advertise better, or provide better products and services to customers.

Yahoo has tapped into this to some extent with their Newspaper Consortium.  But I'm thinking of something bigger with a lot more potential.  I'm thinking of something akin to Microsoft's partner channel.  Microsoft doesn't sell directly to customers as a focus of their business.  Instead, they employ a variety of resellers to serve as front-line help, sales, and support for Microsoft products.

It's a radical idea, but it makes a lot more sense to me than hanging on to an old way of doing business.

On a less radical front, I do think that newspapers could be an effective reseller of products that help local businesses reach customers.  Just about all local businesses need help advertising themselves in their local market.  Local media can help make that a reality.  That's why we're beginning to offer our products MinutesNotice to select local media families.  I think it's a model that can help newspapers and local television companies find margin where there simply wasn't any before.  More to come as we progress.  For more information, check out our recently improved web site.