Tag Archives: News International

Thelondonpaper – what everyone’s saying

A quick round-up of the weekend and Monday morning comment on the fate of the londonpaper:

“thelondonpaper is closing – with a pre-tax loss of £12.9m last financial year on £14.1m turnover. Maybe if they’d sorted out their SEO strategy, they’d have got more website visitors and sold more adverts?”

“Let’s assume, then, that when James Murdoch says he’s concentrating on his ‘core’ responsibilities henceforth, he means no more fishing in Metro ponds. That phase is gone. News International has retired hurt. But what does this mean for London itself, apart from much less waste paper?”

“Free newspapers funded by advertising are a volatile business model in any downturn, let alone a recession. While freesheets are unlikely to disappear altogether, in closing the London Paper the Murdochs have underlined their belief that charging for news is the way forward.”

  • Stephen Glover (the Independent, 24/08/09): ‘A vicious press war with no real victors
  • “[T]he supposedly invincible media mogul has raised the white flag. He is closing thelondonpaper. In my view, of course, he should never have launched it in the first place. It was an expensive distraction that contributed little or nothing to good journalism.”

“News International’s decision to close its only freesheet highlights the newspaper industry’s move towards charging for content in print and online and away from the focus on ‘free’, which gave us the London Lite, Metro, thelondonpaper and City AM, the morning business paper.”

and from last week:

“[The decision] shows just how much the axis of publishing has shifted: just as proprietors are growing weary of readers enjoying their online news for free, there is not nearly the same confidence in the free print model there was three years ago and publishers are reverting to ways of maximising user revenue in all media instead of giving it away for nothing. And, more fundamentally for News International, London’s free newspaper war was just costing too much.”

Journalism Daily: thelondonpaper to close, tax and video for freelancers and video mag ads

A daily round-up of all the content published on the Journalism.co.uk site. You can also sign up to our e-newsletter and subscribe to the feed for the Journalism Daily here.

News and features:

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On the Editors’ Blog:

Opposition to BBC’s newspaper video-sharing plans grow (the links)

Journalism.co.uk feels like its gone back in time today – specifically to autumn last year when regional newspaper groups, unions and industry bodies were voicing unanimous opposition to the BBC’s plans to increase its local video news content.

Well, another year, another video plan – and more opposition.

Yesterday the corporation announced an agreement to share news video from four subject areas with the Guardian, Telegraph, Daily Mail and Independent websites. The clips will appear in a BBC-branded player and run alongside the papers’ own news coverage.

In the announcement, the corporation suggested it would extend the plans to other newspaper websites – and asked third parties to register their interest.

The reaction

Welcomed by its launch partners (The Telegraph described the deal as ‘a step in the right direction’) – the plans were quickly denounced by commercial rivals ITN:

“The BBC’s plans to offer free video content to newspaper websites risk undermining the demand for content from independent news providers, potentially undercutting a very important revenue stream,” said ITN CEO John Hardie in a release.

“The pressure on commercial news suppliers has never been greater which is why ITN has led the way in opening up valuable new lines of business, and the BBC’s latest move risks pulling the rug from under us.”

According to a MediaGuardian report, News International says the arrangement is far from a ‘free deal’ for the papers, but rather free marketing for the BBC, which will lead to less diffentiated content on newspaper websites in the UK.

Meanwhile the Press Association said it had spoken with the BBC Trust about the plans before they were announced and was hoping for a market impact assessment – a process it says cannot now be completed because of yesterday’s launch. In a statement given to both Press Gazette and MediaGuardian, a spokeswoman for the PA said there were other ways for the BBC to work with commercial rivals, such as by sharing facilities.

The PA launched its own video newswire for newspapers earlier this year and has said the BBC’s plans undermine investment in video by commercial players.

The questions

Arguably, providing a pool of news video for diary events/supplementary content could free up the titles’ staff to cover original content and produce more multimedia of their own. A similar argument to the PA’s recent announcement of a ‘public service reporting’ trial.

One question that should be asked – hinted at in Alick Mighall’s blog post on the matter – how will the commercial details be hammered out? Will the BBC add pre-roll ads for BBC programming to the clips; and what if a pay wall is erected in front of the video players?

Paying for podcasts? A Times Online poll

Interesting poll currently running (well, at 2:54pm on July 24 at least) on Times Online asking if and how much listeners would be willing to pay to listen to its podcast The Bugle.
Times Online podcast payment poll

Of course this means nothing more than the podcast’s producer’s curiosity over whether its audience would be willing to pay. So far, 41 per cent of respondents have suggested they would pay something; though 59 per cent say they wouldn’t cough up at all.

It’s also quite refreshing to see a newspaper site ask its users outright – whether this means there are any plans to charge or not.

According to a Bloomberg report today, Jonathan Miller, chief digital officer with News Corp, whose News International arm owns the Times, has suggested the group could start charging for news and entertainment online.

Back in June, MediaGuardian reports suggested the Times’ sister title, the Sunday Times, was considering setting up a paid-for standalone webiste.

Phone hacking liveblog: Coulson and Kuttner’s evidence

Journalism.co.uk will be reporting today’s culture, media and sport select committee meeting at this post, using CoverItLive. We’ll also send out occasional updates via our event Twitter account, @journalism_live.

Background: following reports by the Guardian newspaper that there were further allegations and evidence, previously unreported, indicating that News International journalists had repeated involvement in the use of criminal methods to get stories, the House of Commons culture select committee has begun taking new evidence. Last week it heard evidence from Nick Davies, the Guardian journalist who reported the allegations, Alan Rusbridger, editor in chief of Guardian News & Media and Tim Toulmin, director of the Press Complaints Commission.

Today the committee will hear evidence from Andy Coulson, former News of the World editor (and currently director of communications for the Conservative Party), and Stuart Kuttner, former NOTW managing editor.

Who will the PCC question at NOTW if it re-opens investigation into phone hacking?

Will the PCC question News of the World’s Stuart Kuttner, who yesterday stepped down as the paper’s managing director, if it re-opens the investigation into phone hacking?

[Update 10.07.09: News International said the ‘departure of managing editor Stuart Kuttner has no connection whatsoever’ with events referred to in a statement]

In evidence given to the House of Commons culture select committee in April, Nick Davies criticised the PCC for failing to hold the News of the World to account on charges of phone hacking:

Mr Davies: If you say to [Andy] Coulson, “Come and give evidence even though you are no longer an editor” and if he says, “No” then that is an interesting tactical failure on his part. It is not just the editor of the paper; what about the managing editor? Why not call Stuart Kuttner, the managing editor of the News of the World, who has been there for years and who has a special responsibility for contracts and money? Why not call him to give evidence? There was a real will on the part of the PCC to avoid uncovering the truth about phone hacking.”

The PCC is now looking at the case again in light of Nick Davies’ exclusive report for the Guardian and could re-open the investigation. So who will they question?

Stuart Kuttner, as Davies suggested? “Kuttner will remain at the News of the World part time to work on special projects for the tabloid, including its Sarah’s Law campaign,” the Guardian reported yesterday.

The PCC decided not to question former News of the World editor Andy Coulson (as we write, he is still the Conservative Party’s communications director) for its 2007 inquiry, citing that he was not longer ‘answerable to the PCC’.  But would they question Kuttner, in his new part-time role?

In 2007 the PCC stated in its report on subterfuge and newsgathering:

“Despite Mr Myler’s [new News of the World editor] appointment, the question arose whether the PCC should ask Mr Coulson to give an account of what had gone wrong. The PCC decided not to do so. Given that the PCC does not – and should not – have statutory powers of investigation and prosecution, there could be no question of trying to duplicate the lengthy police investigation. Furthermore, Mr Coulson was, following his resignation, no longer answerable to the PCC, whose jurisdiction covers journalists working for publications that subscribe to the self-regulatory system through the Press Standards Board of Finance.

“As a result, that part of the investigation involving the News of the World was conducted by the Director of the PCC with Mr Myler.  The Chairman of the Commission also discussed the matter on a number of occasions with the Chief Executive of News International, Mr Les Hinton.”

The PCC stated today:

“Any suggestion that further transgressions have occurred since its report was published in 2007 will be investigated without delay. In the meantime, the PCC is contacting the Guardian newspaper and the Information Commissioner for any further specific information in relation to the claims, published today about the older cases, which suggest the Commission has been misled at any stage of its inquiries into these matters.”

Nick Davies told Commons committee in April that PCC phone hacking inquiry flawed

You may recall that back in April Nick Davies gave evidence to the House of Commons Culture, Media and Sport select committee, for its review into press standards, privacy and libel.

In the course of that session he claimed there was ‘a real will on the part of the PCC [Press Complaints Commission] to avoid uncovering the truth about phone hacking’ and that newspapers still used private investigators: “It is wrong but they are not doing anything about it and that continues despite Motorman [investigation undertaken by the Information Commissioner’s Office into alleged offences under data protection legislation.] All that has happened is that they have got a little bit more careful about it. I actually got to know that network of private investigators who were exposed in Motorman. Years after that I was in the office of one of them and he was taking phone calls from newspapers while I was there.”

The committee chairman, John Whittingdale, said: “We did do an investigation both into Motorman and into Goodman so I do not want to revisit old ground too much”.

The same committee which today announced it will open a new inquiry ‘into the Guardian revelations about the use of illegal surveillance techniques by News International newspapers’ (Guardian.co.uk).

Yesterday Nick Davies’ Guardian exclusive – which reported Murdoch papers paid £1m to silence victims of phone hacking – alleged that the evidence posed difficult questions for the PCC: it has ‘claimed to have conducted an investigation, but failed to uncover any evidence of illegal activity,’ it was reported.

Davies is no friend of the Press Complaints Commission – as reported on Journalism.co.uk before – and used his appearance in front of the committee in April to argue that the ‘PCC’s performance is so weak that it threatens the concept of self-regulation.’

The PCC has stated today, in light of the new reports, that ‘any suggestion that further transgressions have occurred since its report was published in 2007 will be investigated without delay.’

Now, let’s look back at Davies’ comments in the Commons in April (from uncorrected evidence on House of Commons site). Davies laid the bait for us all, but it would seem only he pursued his allegations against News of the World, to secure yesterday’s scoop:

Mr Davies: It is that word that Roy [Greenslade] has just used that is the important one, their independence. They [PCC] are not sufficiently independent to do their job properly; they are not functioning as an independent referee. You could see it, for example, in the way they handled the Clive Goodwin [sic] story. There are newspapers publishing stories all over Fleet Street; there is a whole lot of hacking going on, hacking into mobile phones. They conducted an inquiry which was set up in such a way that it could not possibly disclose the truth about that illegal activity. Why? Why did they not conduct a proper, independent inquiry? It was the same with the information commissioner after Operation Motorman. We used the Freedom of Information Act on the information commissioner and got hold if the e-mails and letters between the commissioner and the Press Complaints Commission. You can see there the information commissioner saying, “Look, we have just busted this private eye. It is horrifying what newspapers are doing. Will you put out a clear warning to these journalists that they must obey the law?” The short answer was, “No, not if we can help it”. You may be familiar with all this —–

Q435 Chairman: We had an inquiry into Motorman.

Mr Davies: Did you have the e-mails and so on?

Q436 Chairman: We had representatives of News International and so on.

(…)

Mr Davies: Also, when he [Paul Dacre] goes into hospital to have operations on his heart, there is always a message sent round Fleet Street saying, “Mr Dacre’s in hospital, please do not report it”. Medical records are supposed to be plundered by Harry Hack with beer on his breath and egg on his tie. It is wrong but they are not doing anything about it and that continues despite Motorman. All that has happened is that they have got a little bit more careful about it. I actually got to know that network of private investigators who were exposed in Motorman. Years after that I was in the office of one of them and he was taking phone calls from newspapers while I was there. It has not stopped; it has just got a bit more careful. It had got so casual that every reporter in the newsroom was allowed to ring up and commission illegal access to confidential information, now they have pulled it back so that you have to get the news editor to do it or the news desk’s permission. It is still going on and it is against the law.

Q446 Paul Farrelly: Do you think the PCC missed a trick with its own standing reputation in not summoning Mr Coulson?

Mr Greenslade: I wrote at the time and have maintained ever since that the Goodman affair was a very, very black moment in the history of the PCC. This man was jailed for breaking the law. His editor immediately resigned but there were huge questions to ask about the culture of the News of the World newsroom which only the man in charge of that newsroom could answer. When I challenged the PCC about why they had failed to call Mr Coulson they said that he was no longer a member of the press. That seems to me to be a complete abnegation of the responsibilities of the PCC for the public good. In other words, to use a phrase Nick has already used, it was getting off with a technicality.

Mr Davies: If you say to Coulson, “Come and give evidence even though you are no longer an editor” and if he says, “No” then that is an interesting tactical failure on his part. It is not just the editor of the paper; what about the managing editor? Why not call Stuart Kuttner, the managing editor of the News of the World, who has been there for years and who has a special responsibility for contracts and money? Why not call him to give evidence? There was a real will on the part of the PCC to avoid uncovering the truth about phone hacking.

Q447 Chairman: We did do an investigation both into Motorman and into Goodman so I do not want to revisit old ground too much.

Mr Davies: It is what it tells you about the PCC.

How the news sites are treating the phone tapping story

Yesterday afternoon in a powerful Guardian exclusive, investigative journalist Nick Davies reported that the Murdoch News Group papers paid £1m to ‘gag’ phone-hacking victims.

Rupert Murdoch, who owns News Group, recently argued he had little influence on his publications’ editorial content; it would be interesting to see how his other UK papers would treat the story about their sister title today.

Let’s see how each of the UK news websites is running the story [as around 9.30 – 10 am]. [News organisations owned by Murdoch are labelled (M).]

Note: Observations correct at time of writing; subject to updates.

  • The BBC has headlined many of its bulletins across radio and TV with the story. Channel 4 ran with the story yesterday. Both news sites feature the story as the main article. Sky News (M) ran it last night and its main (breaking) story on its website is “Cameron: ‘Coulson’s Job Is Safe'”.
  • Guardian: Top story with several supplementary features and stories
  • Sun.co.uk (M): Not running the story
  • NewsoftheWorld.co.uk (M): Not running the story

The Murdoch empire (source: BBC website / News Corp)

NEWS CORP BUSINESSES

HarperCollins
New York Post
Fox News
20th Century Fox
Times and Sunday Times
Sun and News of the World
BSkyB
Star TV
MySpace
Dow Jones Co. (incl. Wall Street Journal)
The London Paper

Australasia:
Daily Telegraph
Fiji Times
Gold Coast Bulletin
Herald Sun
Newsphotos
Newspix
Newstext
NT News
Post-Courier
Sunday Herald Sun
Sunday Mail
Sunday Tasmanian
Sunday Territorian
Sunday Times
The Advertiser
The Australian
The Courier-Mail
The Mercury
The Sunday Mail
The Sunday Telegraph
Weekly Times

Jon Bernstein: What if the business model for news ain’t broke?

In what may feel like a twist of logic too far, there are a growing number of non-media companies who are adopting the Fourth Estate’s digital business model.

That’s the ad-funded, free-to-the-consumer model.

You know the one.

It’s at the root of the crisis afflicting the newspaper industry around the world, an industry which is trying desperately to make money online. Or at least not haemorrhage it.

To believe the unholy trinity that is News International, Daily Mail and General Trust, and the Guardian Media Group, the media model is unworkable, unsustainable and it’s got to go.

The three are not sure if it should be replaced by paywalls, micropayments, subscriptions or something else entirely.

But what they are agreed on is that it cannot be business as usual. Because that business is going under.

So why do we find the likes of Facebook, Digg and the mighty Google – and perhaps soon Amazon– adopting the ad-funded model to support services and software.

Take Gmail. It’s not a media entity, it’s email, but it is ad-supported.

One answer is that that advertising is the last, desperate (and largely) failing attempt to generate some money, given nobody wants to pay for their products. In short: free reigns.

On that latter point, Wired’s editor-in-chief Chris Anderson is likely to agree.

His new book ‘Free: The Future of a Radical Price’ – appropriately available to read and listen to online without charge – celebrates ‘freeconomics’, but has a much more positive take on its effect on the business world.

The reason, he says, people are convinced that ad-funded won’t work is because they are applying the conventional rules.

Offline – in newspapers, magazines, billboards, TV and radio – advertising is predicated on scarcity not abundance. Ad sales people trade on ‘space’ and the less there is the higher the yield.

So when there is infinite space online, their greatest selling tool disappears.

Right? Wrong.

Anderson argues that there is another kind of advertising which is epitomised by Google’s text ads:

“Google doesn’t sell space. It sells users’ intentions – what they’ve declared to be interested in, in the form of a search query.

“And that’s a scarce resource. The number of people typing in ‘Berkeley dry cleaner’ on any given day is finite.”

Google’s CEO Eric Schmidt – admittedly a man with a vested interest – estimates that the potential market for online advertising is $800bn.

“That’s twice the total advertising market, online and off, today,” notes Anderson.

So why is his tone at such odds with that of the media he is writing about?

Perhaps it has something to do with the production-cycle of book publishing. This book was in train before he had even finished writing the much-admired The Long Tail.

Clearly much of his thinking predates the collapse of Lehman Brothers which sealed our current economic fate.

His penultimate chapter, presumably added very late in the day and titled ‘Coda: Free in a Time of Economic Crisis’, is an acknowlegement of that, although not a denunciation of his core argument.

Just maybe, it’s the down-in-the-mouth media owners who are out of time, not Anderson.

Maybe this rush to find other ways to monetise will be a passing phase and when the economy picks up so too will online advertising revenues.

After all, what’s the alternative?

Pay walls may work for niche information but not for mainstream news and exclusives. That’s something that even the Wall Street Journal, poster child of the paid model, accepts.

Interviewed earlier this year its executive editor Alan Murray said:

“Look, if it’s a big news story, if we report a takeover and – we could hold that behind the pay wall. But if we do, BusinessWeek or someone else will simply write a story saying ‘The Wall Street Journal is reporting x’ and they’ll get all the traffic. Why would we do that?

“So if it’s that kind of a big, broad-interest news story, we’ll put it outside the pay wall and go ahead and take the traffic ourselves, thank you very much.”

Jon Bernstein is former multimedia editor of Channel 4 News. This is part of a series of regular columns for Journalism.co.uk. You can read his personal blog at this link.

Going back to the backlink licensing case: NLA’s full statement

This goes back to last week, but it seems worth putting up here anyway. Last Thursday Matt Wardman covered this story for Press Gazette: about the Newspaper Licensing Agency regulating hyperlinks for commercial agencies and aggregators.

“The NLA will be introducing a new form of licence from 1 September to regulate ‘web aggregator’ services (such as Meltwater) that forward links to newspaper websites and for press cuttings agencies undertaking this type of activity.”

Craig McGill also picked up on it and asked a series of provocative questions. He got a lengthy response from the NLA, including this:

“This is not about bloggers adding links to newspaper sites. Our focus is on professional media monitoring organisations (news aggregators, press cuttings agencies) and their client business who make extensive use of the newspaper content.”

More questions are raised in the comments beneath McGill’s piece, including this one about copyright law.

Last Friday Journalism.co.uk spoke to the NLA who said it was part of their new e-Clips service – ‘a feed of newspapers’ online content direct to cuttings aggregators and press cuttings agencies.’

Here’s the NLA statement in full:

“The Newspaper Licensing Agency (NLA) today [dated June 2009] announced a new business-to- business clippings database for newspaper websites to launch in January 2010. It also has said it will extend its licensing remit to cover newspaper websites from January 2010.

“The new service, called eClips web, will offer a complete feed of newspapers’ online content direct  to cuttings aggregators and press cuttings agencies. Powered directly from newspapers’ own content-management systems, eClips web will make web-based media monitoring faster and richer and provide a permanent record for PR and communications professionals.

“The NLA will also extend its licensing remit to cover local and national newspapers’ web content. David Pugh, managing director of the NLA, said: “We have two aims: to contribute to the growth of web monitoring; and to protect the rights of publishers. Research shows that 23 per cent of newspapers’ online content never appears in print and that the internet is growing in influence as a resource for news. So it is vital to have comprehensive monitoring coverage of newspapers’ websites – and vital that the publishers are properly rewarded for their work.”

“From September 2009, web aggregators that charge clients for their services will require a NLA licence and be charged from January 2010, The press cuttings agencies that either ‘scrape’ content themselves or buy in services from aggregators will also be licensed and charged. Client companies that receive and forward links from these commercial aggregators within their organisation will also require a licence.

“David Pugh added: “We have consulted extensively across the industry – the incremental charges for web cuttings will be low and manageable. I stress this is not about individuals sharing links – we think that’s great for newspapers and promotes their websites and their readership.  What we are doing is making sure that newspapers are rewarded fairly for professional use of their web content by businesses.””

Further notes:

“The NLA is owned by the 8 national newspaper publishing houses and generates B2B revenues for
1,300 national and regional publishers through licensing use of their content by press cuttings
agencies (PCAs) and their client companies.

“The new licences will cover all local and national titles with the exception of the Financial Times and
the News International titles. These will all, however, be included in the eClips web database.”