An old news organization has teamed up with a new one to create a new business model for news that gets about halfway to the future.
Online-only news and blog source Politico has partnered with newswire Reuters to share political news coverage with other news organizations in a wholly new type of syndication. Instead of the traditional model, where the newswire sells the content to other news organizations in exchange for money, this new consortium provides free content to member organizations in exchange for the right to put advertising on their websites. The content provider shares the advertising revenue with the members.
Jeff Jarvis calls this reverse syndication. If you’re like me, you have trouble getting your head around the notion of reverse syndication. Why ‘reverse’? The content still flows from the news gatherer (the newswire) to the news outlets (the individual member organizations) in a one-to-many relationship. The eyeballs still stay on the outlets’ websites.
But the ‘reverse’ comes in when you look at the net flow of money. In traditional syndication, the money flows from the member outlets to the news gatherer when the outlets subscribe to the content for a fee. In reverse syndication, the net flow of money is from the newswire to the members when it shares advertising profits with them.
This model still has problems, in my opinion. For one thing, duplicate copies of content still wind up on multiple websites, something I complained about during the Associated Press kerfuffles earlier this year. For another, it still doesn’t give enough credit to the original reporting.
The next step in the evolution of this new business model is to get all the way to TRUE reverse syndication, where there are changes in the flow of content and eyeballs as well. Instead of sending content to member sites, where the members use that content to attract and keep eyeballs, the news gatherer keeps the content on its own site, and members use links to send eyeballs over to the news gatherer’s site. In exchange for the eyeballs, the news gatherer pays the member site a share of the revenue generated by advertising on its own site.
Get it? The eyeballs flow instead of the content. Much, much easier to accomplish in our link-enabled world.
Maybe this seems counter-intutive. Why would a news organization want to send traffic away from its site? Aren’t they supposed to be content whores, putting any, all and every possible bit of content on their own site to act as spider-food and attract eyeballs?
Yes and no. If that same content appears on many different sites, the eyeballs it attracts are divided across many sites and almost nobody makes any money from it. That’s why the old syndication model is old and must die: it doesn’t work any more. Why should a news organization pay a newswire for content when people can go get that same content on other sites? It doesn’t make sense. It’s foolish even on the face of it.
Worse, it has a detrimental effect on the results in news aggregators like Google News. You end up with statements like “236 related articles” on Google News and they all say pretty much the same damn thing. It’s old thinking and it really should stop before someone gets hurt.
Do what you do best, and link to the best of the rest, to paraphrase Jarvis. Everyone can be a news gatherer. It can be a many-to-many relationship, with everybody concentrating on what they do best, and packaging links to the best of the rest for their readers. Local papers can focus on their local reporting – their mayor’s foibles, and fun at the council meetings. And regional papers can focus on regional issues, or issues not covered by other local papers, and just link out to the best coverage in surrounding municipalities when they need to. The Toronto Star needn’t have done this (and TorStar owns the Vaughan Citizen…go figure!) And big newswires like Reuters and AP can focus on their capital coverage and foreign bureaus.
By now it’s obvious to most observers that the trouble the U.S. newspaper industry has been seeing for years is now reaching us up here in Canada. Add to that list 600 jobs gone at Sun Media.
It’s a pandemic. No surprise, then, that people are casting about for new business models for news. Here’s the beginnings of a revolution in the way news is distributed and monetized.