It seems the economy is on everyone's mind. Thats why I've been focusing on money news in the media business. Gannett just reported a first quarter loss of 60 percent. The newspaper company, Media General says its quarter net loss is 21 million dollars. Some media giants like Gannett, and Tribune own print, and broadcast outlets, and they're hurting. Just yesterday Sam Zell of Tribune admitted he made a mistake in judgement when he purchaced the media giant in late 2007.
"Show me the Money." was the title of my last blog. This one may as well be titled, "Begging for Money." A U-S Senator is sponsoring a bill to help bankrupt newspaper companies survive. The bill would allow the companies to become Non-profit entities. Sen.Ben Cardin says the papers would operate much like public broadcasting stations. Donations would keep them operating, but they would be restricted from certain activities like endorsing political candidates. There is strong movement out there to create the business models of the future.
Another model comes from a Yale professor. Steven Brill of the Yale Journalism Initiative wants to charge consumers to use content generated by media companies. He wants to create a co-op of newspapers, and broadcast companies who would provide that content on a common platform, and charge for it. Brill says on-line journalism is essential for the survival of print, and broadcast outlets. Without it Brill says companies are "committing suicide." Even stronger words for a business model that is broken.
The whole idea for the Yale model comes from a student's inquiry. That student's mother was worried that her daughter,(a journalism student in Brill's class) would not be able to get a job, or afford a living when she graduated. The professor didn't have an answer for that one. It became his motivation. Brill started the Yale Journalism Initiative. Professor Brill wants to make sure all future journalism graduates have somewhere to work, and be able to earn a respectable living.
My point is this economy is forcing us change! The world is now dictating that change whether its in media, or banking, or manufacturing. The addage, "Necessity is the mother of invention," applies here. We are seeing these examples and others emerge.(see my previous blog "show me the money") Question is, which one is better, which one will work. I like the fact professors, business people, and the everyday citizen are taking up the challenge. Unfortunatly it takes mass lay-offs, and dozens of bankruptcies for the world to take notice. Everyone would like a quick-fix, one solution that could make things better. Instead of one model, we need dozens of models. Each one customized to radio, tv, or print. I'm reminded of a conversation I had yesterday with a colleague. He says the hour-long newscasts of today will be gone in a few years. People want their information now, and won't make an appointment to watch tv at a certain time. He also pointed out that people want their news in bite-size chunks, perhaps a five minute update on their i-phone. Venture Capitalists are keeping an eye on that prospect. Keep those ideas coming, we will be watching, listening, and taking note.
