Future Of Media Panel: Asks More Questions Than It Answers

Five years ago, Michael Wolff predicted that large media companies would “feel pressure to deconstruct.” He stated in several interviews that the ‘internet failed as a media,’ a claim he has since recanted. In 2006 Michael Wolff made the statement that he will not become a blogger. Now he is a prolific blog wrtier.

Last week Michael Wolff was part of a panel here in NY, the topic, ‘The Future of Digital Media.’ Mr. Wolff was joined by Erick Schonfeld of TechCrunch, Kennet Li of Reuters, David Carro of the New York Times, Johnnie L. Roberts of Newsweek, and Keith J. Kelly of he New York Post.

They highlighted the question that is haunting the media and advertising world, “How do the traditional compete now that they’ve lost their edge?” The news flashes are gone. There is no reason to stop the presses. News is released on the net before the morning edition hits the first doorstep. This does not mean that all the blog posts are news worthy.

From the gossip columns manned by flamers and sploggers, to the journalists who make a niche within the digital media world as pro-bloggers and news aggregators, the blogging community is more divers than print media realizes. In this lies the inherent danger that keeps the print moguls awake at night.

The panel discussion took an in-depth look at many of the topics circling the big media company’s water coolers. One of the most interesting points challenged the concept that the newspapers were on the endangered list.

There is a transitional stage. It will be difficult. Newsweek’s Johnnie Roberts makes a point that some of the top media companies are so lost in cyberspace they need to solicit their summer interns for advice on Social Networking.

Content Authority

One unique property may keep the print media alive – authority. There is a big difference between the content created by the NY Times office of 300 working on a major feature, and Joe Smith writing his own views based on what he stole from other bloggers.

Media Company Viewpoint

Everyone has their own list of issues. One thing they all agree on is that a transition is needed, but picking a direction is difficult. In the past ‘One way of thinking’ drove the print media industry. This mindset did not translate into cyberspace in a way that generates enough revenue to keep the traditional structure alive.

The most prominent issue is most certainly, how to make the transition from major print media to major digital media. These newspapers can survive if they blend the best of the old with new technology and personal media. The newspapers need to reinvent their image by blending the business models that drove the industry for decades with new technology.

The online newspaper model is in flux. Advertisers are refusing to make the transition from the ‘tried and true’ to an intangible collection of links that compile and aggregate the news. To say that these “old guard” newspapers are struggling to adapt is a gross understatement.

The ultimate demise of print media may not be the lack of readers or advertisers. It may be its unwillingness to break down silos and long-standing inner fiefdoms.
The redemption for these media companies remains their large presence and authority, squander it and they’re done, their best bet - spread it out and see what grows around them.

Monetizing The Digital Media

The panel made some good points regarding revenue. The Internet does not generate the numbers the print media did, but it takes less time and manpower to maintain a digital publication. Craigslist and its brethren have taken most classified revenue away. And there still is no substitute for the full-page ad.

Erick Schonfeld, TechCrunch co-editor made a good point. “If you’re an older media company and you have an online presence you can have your top quality content that you throw a few editors and reporters at. You have your ad sales guy selling high CPM ads against that content. Lower down you have blogs and information bubbling up from the audience. That you monetize with Google advertising. And there has to be a flow. If someone in your audience writes a great piece, that can bubble up to the home page, or even be printed in your magazine.”

This strategy is in its infant stages on some new sites. One success story is www.about.com, owned by the New York Times. They generate enough income to pay hundreds of writers around $100 per article. About.com has combined authority, monetization, and created an ‘interactive relationship’ community.

The Future

Erick Schonfeld reminded everyone that cyberspace has a niche for everyone, ‘we all cannot be an aggregator’ no matter where the web surfers go, they are always drawn back to the trusted aggregator.’ If the newspapers complete the transition successfully, they will remain the trusted source for the news.

People want the facts delivered from a resource with authority, and that will be the newspapers for a long time to come, now the question is, can they get out of their own way?
There is hope. Keith J. Kelly, New York Post media reporter, sums up the new news industry with this possible solution.

“Somebody gives a speech. In the old days where it wouldn’t be covered at all. Now it can become a major big story and a controversy. So it has made our jobs easier and harder simultaneously. Easier, because everything that is covered is covered, but harder if you were… going for the big scoop and the exclusive.” He continues to say that the news is harder because bloggers are breaking the story before the newspaper is released.

“Now I find that we get enormous traffic from stuff that have broken on websites elsewhere by bringing our own unique little twist and turn to it.”

“A lot of media has to do this. They have to change and adapt. The old formula from 10 years ago does not work in the new world and you’ve got to work what the new formula is.”