Major media conglomerates Conde Nast, Hearst, Meredith, News Corp. and Time Inc. recently announced that they are forming a coalition to produce a digital storefront to sell their content in digital form — and challenge eReaders such as Amazon’s Kindle. In a time when major newspapers are collapsing and magazine subscriptions are plummeting, who can blame them for washing their ink-stained hands and trying something new?
The plans for the digital storefront would enable publishers to bundle eReader content with print subscriptions. Eventually content such as paid blogs, books and newsletters would be available for purchase. Beyond the store, the consortium of media moguls hopes to create a common reading application, publishing platform for multiple devices, operating systems and screen sizes; a digital storefront; and advertising opportunities. In short, they’re proposing new standards for the distribution and consumption of digital content.
The venture, still in its infancy, is little more than an idea at the moment, but its future success depends largely on the value that we, the public, assign to the content and information we consume.
The Good Old Days
For years, the public was accustomed to paying for news, unfolding a newspaper to learn about the events of the day. Then the internet came along, and in an attempt to compete with free online news outlets, many (probably most) newspapers and magazines began to give their content away for free online. Rather than stick to their core expertise and provide something that free outlets couldn’t provide — dedicated, trained resources to do more in-depth, thoroughly researched, nuanced and targeted reporting — they tried to outpace the instantaneous updates of the internet.
The Road Ahead
I believe that people are still willing to pay for content they find valuable, but how exactly do we value information these days? In an age where there are endless media outlets, people are accustomed to getting information from a variety of sources: public radio, bloggers, online newspapers, following people on Twitter, etc. Many new media sources have supplanted traditional news outlets and are a trusted source of information. As digital technology levels access to diverse news sources, it will be interesting to see how the traditional heavy hitters play it out. Some have already found success.
The Wall Street Journal uses a pay wall that keeps most of its general-interest content free and available to the general public, while
charging a premium for its premium financial reporting.
ESPN uses a similar pay wall tactic, the
New York Times once did and is
considering using it again and many magazine publishers offer premium online content to print subscribers.
It will be interesting to see how the mega media venture affects how the public consumes information and how publishers attract advertising dollars. Will an easy-to access storefront open opportunities for new points of view? We’ll have to wait to see what shakes out.