Whatever you think of the man, there is no doubt that his track record is pretty impressive in predicting what consumers want in the future. However, he does appear to have lost the plot a bit with his obsession with charging people for accessing his newspaper’s websites. People are prepared to pay for things on the web, but with regard to everyday information ….the answer is a definite ‘no’.
Newspapers are about the news – online you have the advantage of being able to scour the most interesting articles from all the newspapers and the BBC and indeed 1000s of news reporting organisations, so many would argue that it is a richer experience online than is possible through a printed title. The size of the market for accessing online content that you have to pay for – even if the content is incredibly brilliant – will be small. Once the paid-for content is published, it will get distributed for free (in the same way that you can watch goals from any televised football game within seconds on YouTube). And for the person who bothered to film his TV to enable this, there is no financial benefit – this is consumer power in action.
So, in this case Rupert may have got it wrong. The talents of journalists are considerable – their expertise undeniable, and the reality is, that their insights could enable any number of businesses to flourish. The organisations previously known as newspapers will need to change, such that they monetise their insights by doing more with them than just reporting them. All sorts of additional skills will be required, that currently don’t exist in these organisations to any significant degree. The personal finance journalist of today will become the IFA of tomorrow, the travel writer of today will become the travel agent of tomorrow and so on..
News is a commodity. Insight never will be.
Trying to make news not a commodity is far harder (impossible?) versus the task of asking people to pay for insights. Rupert would no doubt argue that insight is what his newspapers provide – but an insight in itself is not hugely valuable unless you can do something with it.
For years a central part of any Proctor & Gamble marketing strategy has been to get the key insight, then productise it. Newspaper organisations are brilliant at discovering the key insights but can they make shampoo and conditioner? Time will tell. To begin with though, they need to understand what their role is – and one thing is definitely true, it is not the role they had 5 years ago. This is true of an increasing number of businesses (brand and digital agencies being no exception), and it takes real guts to recognise the need for radical change. Charging for online content, that used to be free, is not the answer.