Archive for June, 2008

Newspapers are the new general stores

Thursday, June 12th, 2008

Remember them?

The thing about general stores is that they are helpful. You can pick up a variety of things from food to bandages to clothes to live bait. But the other thing about general stores is that they don’t do anything well.

They’re helpful, but they usually aren’t someone’s favorite store, because they don’t specialize in anything. General stores like Woolworth (newspapers) died because of new, more modern titans like Wal-Mart (Google).

Google, in a sense, is a general store for information. The thing is that Google has a lot of information, just as those gigantic Wal-Marts have a lot of items for sale. A Woolworth is about the size of one department in Wal-Mart.

Wal-Mart combined the general store idea with a niche — really low prices on non-dollar store goods (like say, electronics). Google has a niche too; it’s the easiest way to make sense of information and find information on the Web. There is just so much information on the Web that someone had to come along to help us sort through it.

The thing is, most newspapers don’t have a niche. Their just like Woolworth. They do a lot of things OK, sometimes even relatively well, but excel at nothing. And without a niche, they’ll be overtaken by competitors who cover those individual areas better.

The rise of mega grocery stores made the idea of having a small food section in a general store obsolete (better selection and better prices are hard to compete with). In fact, just about everything a general store like Woolworth did makes little sense today. I used to buy pet fish supplies at Woolworth when I was a kid, but now I can get a much better selection and better prices at Petsmart.

But Wal-Mart is so much more than a general store. Many Wal-Marts have full-featured grocery stores in them, along with eye doctors, dentists, pharmacies, clothing departments, electronic departments, etc. You can honestly just shop at Wal-Mart and get just about everything you need in your life.

That’s what a typical general store never could do. General stores didn’t go deep enough into any one area. That’s how newspapers have become.

Sure most dailies have local news, regional news, national news, international news, sports, business, technology, etc., but few excel in any of those areas. Think about how many newspapers still have film critics and even auto critics.

These movie/entertainment and auto sections are nowhere near the caliber of niche outlets like Movies.com or Edmunds.com (or Car and Driver magazine). With the Web, why would I want to consume inferior, cursory content? I don’t.

Many newspapers still operate like there aren’t strong niche competitors. This is what I mean when I say that newspapers could get better by getting smaller. Dump all of those sections that niche outlets do better (get rid of all those obsolete critics for movies, music, auto, etc and forget national and international news unless you’re the Post or USA Today). Niche outlets are only going to attract more of your readers anyway as time goes on.

Had general stores like Woolworth found a niche and honed in on it, maybe they’d still be around today. Instead they were left with trying to go head to head against stronger competitors who could purchases goods cheaper from suppliers (this is one of Wal-Marts secrets to success).

Newspapers can find niches to exploit. Local news and sports are big areas. Hollywood movies, cars and news from other parts of the world are not niches a typical newspaper can exploit. .

Innovation is a bumpy road but journalism needs it

Monday, June 9th, 2008

Lost in the whole Rob Curley/LoudounExtra “flop” flap is that innovation is never easy.

Heck, six out of 10 start-ups fail within the first four years of operation (let alone individual ideas and products at a start-up). And for some reason people are using the performance of LoudounExtra.com (it’s still going by the way) to cast judgment on Curley, his ideas and hyperlocal journalism in general.

Some people are going as far to use the WSJ piece as a “told you so” to hyperlocal journalism. Some are even personally attacking Curley and calling him a fraud.

With this kind of climate, how many journalists are really going to want to try to stick their necks out and attempt some real innovation? That’s what Curley did. No one ever said innovation was easy or that it always works as planned.

Curley would probably be the first to admit that LoudounExtra could have been better. It could have served its readers better. Lessons were learned from the site.

Innovation is a bumpy road.

But that’s just the thing. Sometimes you can have a great idea with great execution and still not perform as well as you thought you would. That doesn’t make what you did a waste of time.

No one said trying to innovate and build better journalism was easy. Sometimes you win. Sometimes you lose.

Curley has had many successes. He’ll learn from his lessons in Washington and make better, more useful and cooler products in Las Vegas. People shouldn’t use one site as a carte blanche to dismiss everything he has ever done.

But that’s not the point of this post. This is about the restrictive culture that many journalists seem to foster right now. Jay Rosen of NYU and PressThink probably said it best about the unwillingness of many journalists to try to innovate:

News people who wonder why their industry gets creamed by Google and Yahoo are the same news people who dismiss an idea after it fails once.

Google has a culture where innovation and, gasp, failure are celebrated. To not embrace failure (or stumbling in the case of LoudounExtra) is to basically write off ever taking a risk. Even the best stumble from time to time.

The past few weeks have been filled with rumors about a new version of Apple’s wildly successful iPhone. But no talks about the iPhone’s spiritual ancestor, ???????? ????? ????????the Apple Newton. It was a failure.

The Newton has been an inspiration for much of the PDA market. Perhaps without the Newton, Apple wouldn’t have the iPhone. Everyone talks about another famous Apple product, the iPod, but how many people talk about Apple TV (or about its meager success)?

For every product Apple releases, many more prototypes never make the market. And even some of Apple’s products that do make it to the marketplace, like the Newton, end of failing. Failure has only made Apple work harder to innovate.

Failure must also make journalists work harder to innovate. Many innovative projects will fail. But we cannot allow ourselves to fear failure.

It’s fair to criticize LoudounExtra, because it didn’t go as planned, and we should learn from each other. It’s fair to point out how the project could have worked differently (no one, even Curley’s staff at WPNI is saying that LoudounExtra didn’t have faults or that they couldn’t have done things differently). It’s perfectly fair to dissect the project and what WPNI was trying to accomplish.

It’s not fair, however, to look at LoudounExtra and use it as proof that new, innovative forms of journalism aren’t possible. It’s not far to say that just because one project didn’t do well that another, similar project couldn’t succeed with some tweaking.

What happened with LoudounExtra does not reaffirm the status quo. The status quo certainly isn’t working. Journalism needs innovation.

Nor is it fair to look at the failure of other start-ups like Backfence.com and say that because of them hyperlocal journalism can’t succeed. Mark Potts, one of the founders of Backfence, has been learning from past hyperlocal attempts to try to understand what will and won’t work:

Backfence is gone, LoudounExtra is struggling, and neither Pegasus News nor Outside.In can be labeled a commercial success at this point. So what’s the right formula for hyperlocal?
I think the answer lies somewhere at the intersection of all of these models. You need sharp technology, lots of databases, aggregation of existing blogs and content, and lots of low, low-cost user-generated content. Professional content is good, too, if someone else is paying for it. You’ve got to be intensely local (LoudounExtra, by covering a 520-square-mile county, missed the boat here). And then you’ve got to market the hell out of the resulting stew, with aggressive community outreach, grassroots campaigns and, if you’re fortunate enough to be attached to traditional media, a print counterpart and the boost you get from an attached media Web site.
That’s how innovation happens. Trial and error are our friends, not our enemies. That’s what I like about Potts so much. He’s not afraid of taking risks, nor is he afraid of trying again if his first attempt doesn’t succeed.

It’s not fair to look at every journalism start-up that falters or fails and say, “I told you so.” Many of those failures will directly lead to the successes of other start-ups in the future. Some of those failures will teach us the lessons needed to turn this industry around.

Will Sullivan is correct to point out that change doesn’t happen immediately:

Change is hard.

Trying new things at a media organization that’s claim to fame is on the Pulitzer name is especially hard.

99 percent of innovation is failing, then dusting yourself off and trying things a different way. If people in your own company aren’t interested in helping you succeed, then maybe it’s time to move on.

We all get that journalism organizations are facing tough economic times, but it is irresponsible to assume that every new idea or project that is tried will be an overnight success. Maybe even LoudounExtra will be a success if its given more time to marinate.

I’m glad to see journalists like Sullivan standing up to the parade of journalists that want Curley’s hide. I’m going to leave you with some final thoughts from entrepreneurial journalist Steve Outing:

News companies, especially, really need to inject some entrepreneurial folks into their operations. Entrepreneurs fail, learn from it, and move on. They don’t give up.

Weekend fun: Mount Rushmore II

Saturday, June 7th, 2008

Mount Rushmore was a celebration of the first 150 years of America.

It features four of our most iconic and important presidents ever: George Washington, Thomas Jefferson, Abraham Lincoln and Teddy Roosevelt.

It hasn’t been another 150 years yet, but I have a fun proposal to ask: If you could make a second Mount Rushmore to celebrate the last 150 years, who would you put on it?

Since it hasn’t been 150 years yet, you can put other Americans besides presidents on this monument.

I’ll go first. The only two presidents I think would be worthy of this honor are Ronald Regan and FDR. I would add Martin Luther King Jr. as my third person. I’m not sure on the 4th. Perhaps someone like Steve Jobs or Bill Gates for helping to forever change the world with personal computers.

Go ahead! Make your picks.

LoudounExtra, a hyperlocal failure for the Washington Post?

Wednesday, June 4th, 2008

It’s depressing.

It feels like my girlfriend broke up with me and took my dog with her. Yes, I’m talking about The Wall Street Journal’s assessment of the failure of LoudounExtra.com. Maybe failure is a little harsh, but according to Rob Curley, his sites in Lawrence, Kan. got better traffic than LoudounExtra.com.

For those keeping score, Lawrence has about 80,000 residents, while Loudoun County has about 270,000 residents. And it’s not that LoudounExtra.com is a complete failure, it’s just that it’s not what it could have been or what was expected of it when it launched (it probably has lost a bit of money too).

And of course Curley and his team have left for Las Vegas, which doesn’t give me a lot of faith that LoudounExtra will be getting much better anytime soon. All the Web talent and vision are gone now — so, who is going to innovate on their forthcoming hyperlocal ventures?

To be fair, LoudounExtra is a site with a lot of information, databases and stories. It does cover Loudoun County better than the Post could have ever dreamed of before. But the site doesn’t have a lot of the user-generated content features that were envisioned when the project was announced, and it never really engaged the community.

Simply put: the return on investment wasn’t very good, and there was a hell of an investment in this site. There appears to be a fundamental divide between the Post itself and Washingtonpost.Newsweek Interactive, and that may have been a large part of why this site is failing (and why the Post may not be able to do hyperlocal properly):

Though LoudounExtra.com seemed to promise an ideal combination of innovation and marketing muscle, it has failed to benefit from the reach of Washingtonpost.com. Mr. Curley says whenever a big story breaks involving Loudoun County, the Post typically publishes it on Washingtonpost.com without a link to LoudounExtra. That deprives LoudounExtra of potential traffic. Nor does the Washingtonpost’s own dedicated Loudoun County page send visitors directly to its online sibling. In September, when Time Warner Inc.’s AOL unit announced it was moving its headquarters from Dulles, Va., to New York, the Post linked to the story on LoudounExtra.com for a couple hours before moving the story back to its own site. That window of promotion fueled the Loudoun site’s best traffic day to date, Mr. Curley says.

The Post couldn’t even link to LoudounExtra.com? That’s absurd. The Post site doesn’t interact well with LoudounExtra.com either (there is a separate Loudoun County page at washingtonpost.com that is a hold over from before LoudounExtra.com, which steals traffic from the hyperlocal project).

The mere act of linking to LoudounExtra.com with every story about Loudoun that was posted at washingtonpost.com would have brought in huge amounts of traffic to the fledgling hyperlocal project. It’s called free marketing. It’s also called synergy.

This may be a symptom of a larger problem at the Post — namely the divide between WPNI and the Post. WPNI is in Virginia, while the Post is in D.C. Obviously, that makes combing cultures into a unified newsroom (ala The New York Times) very difficult.

The future of news is a unified operation with the Web (and mobile) taking a lead roll. Currently, the majority of staff resources are still at the print destination in D.C. The Washington City paper had a scathing article about the huge rift between the two operations:

The geographic separation takes its toll on the Post in two ways. It causes frequent communication breakdowns whose remedies invariably involve costly investments in training and outreach, and it creates overlapping functions in which both the print and online operations assign reporters to the same beats. The result is waste, a luxury that no newspaper, including the Post, can afford in this era of slumping print circulation and advertising.

Other newspapers have begun to realize that the idea of separate newsrooms makes little sense. It’s a 1990s-era anachronism when people thought that the Web product would be a rehash of the print product with some Web exclusives filled in. Now people realize that news operations have to be platform agnostic — from the publisher on down to every reporter:

Other papers, meanwhile, have abandoned the Post’s separate-but-unequal model. A year ago, the Los Angeles Times integrated its news and Web functions after an internal report called the paper “Web-stupid.” The New York Times began combining its Web-paper operations in August 2005 and accelerated the process when it moved to a new building last spring. “It’s very much a two-way street,” says Jonathan Landman, the Times’ deputy managing editor and top editorial voice on the Web site.

It doesn’t sound like the Post will be rethinking its separate staffs model, but it will have to rethink how it does hyperlocal if it wants to be successful in that arena. It is going to need to dedicate more reporters to the areas it wants to cover, require its reporters to live in the local areas they are covering at a hyperlocal level, build up a grass roots following, allow for much greater user interaction (allow your local assets to improve your project and become invested in it) and, finally, the Post may have to reconsider its county model altogether.

The D.C. region is largely comprised of transplants like me who have little history in the area. I still consider Ohio my home and probably will be out of D.C. in under five years. D.C. is a very poor area to try to establish a local project, ala small-town Kansas.

But I do think hyperlocal projects can succeed. How about a project dedicated to politics and the political elite/junkies in D.C.? How about a site dedicated to the Redskins? Those are areas the Post could really clean up in.

I do not have high hopes for FairfaxExtra (the second hyperlocal site from the Post has coming this summer), unless the model is drastically changed. We’ll know soon enough if the Post is mixing things up with hyperlocal.

Curley, on the other hand, will probably find Vegas a much better place for his innovative brand of journalism. Honestly, it was probably a good move for his sanity, happiness and career. He told me he is going to work harder than ever in Vegas to make successful products, and I think he will. It sounds like he has gotten a lot of inspiration from what transpired at the Post.

In a year or two the dust will finally settle on the Post’s hyperlocal efforts, and maybe they will be successful with some tweaks and hard work. Or maybe WSJ will write an even more negative piece about the Post’s efforts.

It’s good to have non-wired friends

Tuesday, June 3rd, 2008

One of my good high-school friends signed up for Facebook last week.

Yes, the same Facebook that, had you listened to the digerati, has jumped the shark.

But Facebook hasn’t jumped the shark. It’s still becoming more popular and adding more features. Facebook may have jumped the shark for the kinds of people who have to try every social networking service in its alpha-invite-only stage, but it certainly hasn’t for everyday people.

It’s great to have friends who are pushing the envelope, and to be with people who are willing to try new things. I love my digerati friends. But we cannot lose sight of what the average person is doing.

When I say non-wired, I don’t mean someone without a mobile phone, computer or the Internet. But I mean people who don’t live and breathe Web 2.0. In fact, they probably don’t read Wired magazine, and isn’t that the ultimate barometer of one’s wiredness?

Let’s look at Twitter as a good example. If you just listened to bloggers and the digerati you would think that Twitter is the hottest thing going today on the Web. Oh wait, it’s jumped the shark because of frequent outages recently.

In reality, Twitter has less than 2 million users in the world. In many ways, Twitter isn’t even mainstream, let alone clones like Pownce. In comparison, Facebook has more than 70 million active users.

My friend is like the majority of Americans — high school diploma, has a computer with Internet, uses a mobile phone but doesn’t have a blog, probably doesn’t know what the hell Web 2.0 is supposed to mean (does anyone, really?) and probably has no interest in joining Twitter.

Ultimately, we have to build products that not only interest people on the cutting edge, but that also provide functionality that average person can and will want to use everyday.

For my friend, the time was right to join Facebook because its functionality made sense for him. I don’t think he’ll be joining Twitter (or FriendFeed) anytime soon.