Newspapers going after TV dollars

“I find it interesting that newspaper will generate more revenue selling video and video ads than the TV industry.   The newspaper industry has the potential to do to TV what was done to newspapers with classifieds.”

I received this email recently from a highly respected newspaper man. He is absolutely right. Newspapers are very well positioned to pull additional online video revenue away from TV. According to Borrell & Associates, many are already doing this. Here’s why I think this is happening:

Newspapers have been feeling the pain of disruption for much longer than broadcasters. Thus, they are further along in their understanding of this new digital media eco-system. Ex: Newspapers smartly becoming “local news organizations”, no longer seeing themselves as only “Newspapers”. 

Currently, most Television stations are just re-purposing 3 minute field reports from last night’s 11pm news, up onto their sites. (via shovel-ware) This online video consists of stand-up reporters narrating imagery of fires, drug shootings and other usual TV news fare. This type of content leaves online TV sites vulnerable to a multi-media centric newspaper that “gets it”. In my experience, TV’s online video offerings are not nearly enough to compete effectively online. These online TV clips get very few views, and thus minimal opportunity to monetize. TV programmers are finding that what has worked on air for the past 50 years or so, does not necessarily work and win, online.  

Newspapers on the other hand, have fresh eyes in this space. In regards to multi-media, they are starting with a clean slate. They have no video baggage to contend with. They are not encumbered with “the way TV has always been:” They see the broadband web, inexpensive production tools, and online platforms/applications as a way to re-invigorate their business.  

With the ultimate goal of being the #1 online news/info website in a market, Newspapers are smartly taking their strongest assets (journalism, aggregation and dissemination of news/info, trust of local brand, sales relationships, etc.) and are mashing them together with these new and emerging tools/platforms. This will allow Newspapers to go after those substantial advertising budgets that have traditionally been the domain of local broadcast and cable TV.  

I think you will agree, Newspapers now take all online threats to their core business quite seriously. And when it comes to video, Newspapers are much more proactive in their online approach. But the head start that Newspaper currently enjoys could start to slip. TV stations are seriously ramping up their web efforts, and are pouring more resources into a game of catch up. TV is also taking advantage of the massive promotional power of their TV signals. Compare this to Newspaper’s eroding promotional platform called “print”.

Newspapers will need to double down on their web efforts, and place a high priority on video. Most will agree, online video will likely attract some of the biggest gains in online revenue.