{"id":6623,"date":"2019-04-07T15:54:08","date_gmt":"2019-04-07T15:54:08","guid":{"rendered":"http:\/\/calamur.org\/gargi\/?p=6623"},"modified":"2019-04-08T05:05:08","modified_gmt":"2019-04-08T05:05:08","slug":"cnbc-tv18-column-the-implosion-of-digital-publishing","status":"publish","type":"post","link":"https:\/\/calamur.org\/gargi\/2019\/04\/07\/cnbc-tv18-column-the-implosion-of-digital-publishing\/","title":{"rendered":"CNBC-TV18 Column : The Implosion of Digital Publishing"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">I wrote this on <strong><a href=\"https:\/\/www.cnbctv18.com\/technology\/the-implosion-of-digital-publishing-2217081.htm\">Digital Publishing<\/a><\/strong> for CNBC-TV18<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">About five years ago, if you had\nasked anyone in the media to look into the crystal ball and predict the future\nof news, the answer would have been simple. Digital media companies such as\nVice, Buzzfeed, Mic, Huff Post, would have been named as those who would lead\nthe upsurge of digital news, while the traditional players \u2013 New York Times,\nWashington Post and the rest would have been slated to be victims of the power\nof the internet to upend more conventional business models. Yet, five years\nlater what you see is that the traditional players have folded the power of\ndigital into their core business operations and building businesses around the\ncore journalism premise of subscription, while the upstart digital challengers\nare throwing in the towel, because they cannot make ends meet. What does this\nportend for the future of news on digital, not just in the west, but in India\ntoo?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the core of the problem facing\ndigital companies \u2013 not just digital news companies \u2013 is the issue of revenue,\nor the lack of it. They are not making as much money as they are spending. And,\nwhile that could be a problem that faces any new company that starts up, there\nis at least some revenue light at the end of the tunnel. With digital\npublishers, as with most digital companies, the issue is slightly different.\nThey have spent all their time and effort on acquiring customers who would\nconsume their wares, without figuring out if the customer is even willing to\npay for the wares. This lack of revenue is tied into the way digital publishers\nearn revenue in a digital world, what is called CPC or cost per click \u2013 every\ntime the reader of news clicked on an ad, the publisher would get paid. That\nmodel did not work, primarily because most internet users use adblockers, and\nseldom get to see the ad<a href=\"https:\/\/deloitte.wsj.com\/cmo\/2018\/04\/03\/are-consumers-adlergic-a-look-at-ad-blocking-habits\/\"><strong>. It&nbsp;\nis estimated that<\/strong><\/a> in the core American market, almost 80% of all\ninternet users use at least one ad blocker. If you don\u2019t get to see the ad, you\nare not likely to click on it, and the publisher does not get paid. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second major problem is the\nrole of the internet behemoth Facebook. Many publishers invested money in their\noperations, hoping that the giant social networking site would be able to drive\nsome of its members towards their operations. Facebook had promised smaller,\nnewer publishers the pot of gold at the end of the rainbow, if they signed on,\nand promised that Facebook publishing was the brand the new shiny toy, which\nwould over come the economies of scale, and brand reputation, built up by older\ntraditional publishers, and make the newcomers into internet giants. However,\nas Facebook got hit with the fake news scam \u2013 fake publishers putting out fake\nnews , via Facebook, to attract eyeballs and make revenue \u2013 it tweaked its algorithms.\nThat hurt digital publishers using Facebook as a key source of traffic and many\nbegan shutting down. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The third problem is that of greed.\nSeduced by the promise of both local and global audiences who would flock to\ndigital properties, consume content and ads, business plans began banking on\ngazllions of internet users who will consume their content. It was believed\nthat corporates would pay money to advertise to reach the gazllions of users.\nNot only that, they spent huge sums of money to create more content in many\nmore areas, rather than spend money on consolidating and retaining the audience\nand converting them to subscribers. There was more interest in creating\nvaluation for the digital property, than creating value using the digital\nproperty. Also the promise of great valuation, and great ad revenues got a\nplethora of new publishing sites to set up shop on the internet, chasing the\nsame audiences, and a slice of the same advertising pie \u2013 leading to lower\nrevenues all around. And, anything that Is a bubble is going to burst, and it\ndid. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, is the tryst with digital\npublishing over? The answer is no. But the discipline that real world\nbusinesses have to follow \u2013 namely making a profit sooner rather than later \u2013\nwill now apply to digital publishing as well. Those companies that have said\n\u2018we do only one set of things, and we do it well, and people will pay us to\nconsume the quality of our content\u2019 \u2013 are most likely going to survive. Those\nwho say \u2018we are all things to all people, and advertisers will pay us to reach\ncustomers, because customers won\u2019t pay\u2019 are likely to die. A business model\ncannot just rely on giving away content to build a business. Sooner or later,\nyou have to ask customers to pay \u2013 and the question arises is the content\ncompelling enough, and useful enough for the customer to subscribe. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;The Market is brutal. It penalises waste and\ninefficiency. And, that is what the latest round of mini implosions in the\ndigital publishing world have shown us. A business model for publishing has to\nbe built on highly probable revenue streams, not the distant probability of a\nconsumer clicking on a random advertisement that&nbsp; is served, based on which the publisher gets\npaid. Those who manage to adapt to this will survive, the rest will be swept\naway by the market. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>I wrote this on Digital Publishing for CNBC-TV18 About five years ago, if you had asked anyone in the media to look into the crystal ball and predict the future of news, the answer would have been simple. Digital media companies such&#8230;<\/p>\n","protected":false},"author":1,"featured_media":6624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[10,54,27],"tags":[],"class_list":["post-6623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-in-msm","category-digital-media","category-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CNBC-TV18 Column : The Implosion of Digital Publishing - A PoV<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/calamur.org\/gargi\/2019\/04\/07\/cnbc-tv18-column-the-implosion-of-digital-publishing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CNBC-TV18 Column : The Implosion of Digital Publishing - A PoV\" \/>\n<meta property=\"og:description\" content=\"I wrote this on Digital Publishing for CNBC-TV18 About five years ago, if you had asked anyone in the media to look into the crystal ball and predict the future of news, the answer would have been simple. 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