While the group didn’t necessarily see the devices as a game-changing technology, according to Randy Bennett, the NAA’s head of business development, many intuitively recognized the opportunity to rebuild some portion of their former revenue streams. A few months later, Derek Robinson, Bennett’s counterpart at the Cox Media Group, which owns forty-three newspapers, built a financial model to measure the potential economic effects of moving a thousand subscribers from print to electronic delivery. The answer? It would take a newspaper 4.1 years to break even on its investment in the migration.
That doesn’t sound so bad, perhaps, but the model was full of mostly dummy data. For instance, while it used ad revenue of $700 per print subscriber, based on current data from the Newspaper Association of America, it assumed that figure would decrease by only 20 percent on e-readers. That’s a dubious estimate, however. Other NAA data, not used in the model, puts current online ad revenue at $46 per unique monthly visitor—a decrease of 95 percent compared to print.
Still, the point was for publishers to plug in their own proprietary data to determine the feasibility of a print-to-digital migration given their newsrooms’ particular circumstances. Most media executives accept the value of holding on to a print subscriber, however, and all of those interviewed for this article said that while they want to encourage as many e-readers as possible, it would be unwise to hasten the switch to mobile reading.
5 At the end of May, I attended the Society for Information Display’s annual conference in Seattle, where companies from around the world had gathered to show off their latest screens, using a variety of technologies. Device manufacturers sold roughly 1 million readers using e-paper displays in 2008 and 5 million last year, according to DisplaySearch, a market research firm. That is expected to grow to 14.5 million this year. By 2018, DisplaySearch predicts that more than 90 million units will be sold around the globe, including 20 million with ten-inch or larger screens that the company has begun referring to as “e-newspapers” and “e-magazines.” Together, the Kindle and Sony Reader control more than 50 percent of the market, but everyone agrees that there is plenty of room for “disruptive” technology innovation to catapult a newcomer to stardom.
The iPad, which sold a million units in its first month (the Kindle sold half a million during its first year), has brought more attention to e-readers and mobile devices in general. Since the iPad’s emergence, there has been much debate about whether or not it will become the so-called “Kindle Killer.” It is fairly safe to say, given their different qualities and ways that consumers will use e-readers—for instance, reading (Kindle) versus entertainment (iPad)—that this won’t be the case.
But what became clear to me while reporting this piece, and was really driven home at the Seattle gathering, is that the debate over which technology, or device, is superior is mostly beside the point. The rate of evolution is moving so quickly that in ten years e-readers will have become like televisions and cell phones, meaning there will be hundreds of affordable varieties that basically do the same things. As Cox’s Derek Robinson reported in March, in an update to his survey that he provided to the NAA, “E-readers may just be the tip of the iceberg. . . . We as an industry have begun to look beyond e-readers and are now considering the entire ecosystem of ‘emerging platforms.’ ”
That is why staying ahead of the technology curve—both for hardware and software—is crucial. As device manufacturers race toward that do-it-all e-reader of the future seen in Minority Report, media companies must follow Next Issue’s lead and make strategic partnerships that will allow them to influence the products and retailing mechanisms coming to market. The circulation levels and ad dollars of yesterday may be gone for good, but there are real opportunities to reclaim control of journalism’s financial future. Second chances are rare, and if we miss this opportunity to capitalize on digital content, we may not get a third.

Anybody who calls "giving away content" newspapers' "original sin" is pretty ignorant of history, of reality, of business, of the Internet.
#1 Posted by Howard Owens, CJR on Tue 13 Jul 2010 at 01:39 PM
So what will this advance in e-reader penetration mean for the job of a newspaper reporter? I suspect it means that reporters would be expected to constantly break news 24-7 (maybe this is already the case for some). I would also suspect that the reporter would be paid about the same he/she is now if not less. How many people, especially talented ones who have other options, are going to be willing to do this? And if they're not, regardless of how slick the delivery model is, how good will the product be?
#2 Posted by Rick, CJR on Tue 13 Jul 2010 at 02:29 PM
No, e-readers won't save journalism -- at least not the kind that the author and the Columbia Journalism Review practice.
Consider the people reading this essay. What percentage of readers are consuming it on an e-reader, iPod, iPad, Android phone, or any other mobile device, relative to the percentage of readers who are looking at it on a PC or laptop screen? I suspect the mobile:PC ratio is quite small -- maybe just a few percentage points, if that (perhaps the CJR can let us know?). I further believe that even among those who are looking at it on a mobile device or e-reader, very few are reading it from start to finish. Like many publishers, the Columbia Journalism Review is still oriented toward long prose pieces that are a poor fit for mobile devices or the people who own them. Who is going to read a 4,546-word analysis (the length of this essay) on a small screen, or even a 1,000-word news article. How many would be willing to shell out subscription fees for long-form Time, Wired, or WaPo print content on a Nook or iPhone?
Even short-form content may be a stretch, when there are so many other free and low-cost distractions available on mobile devices. Publishers no longer have a monopoly on information or entertainment, like they did a decade ago, when tabloids, metro newspapers, books, magazines and CD walkmans were the staple on subway cars. Now when I look around at my fellow commuters, I see people playing games, listening to mp3s, texting, watching videos, checking Facebook for updates, and sometimes even looking at a newspaper or mobile news app. If people don't want to read a 2,000-word feature, or don't feel like paying for news (print or mobile), they still have too many free/cheaper options to choose from -- options that they didn't have before, because the technology wasn't widely available.
#3 Posted by Ian Lamont, CJR on Tue 13 Jul 2010 at 07:54 PM
@Ian
Ian my old friend, we learned this lesson the hard way did we not? While I disagree with you that long form content is not a fit for mobile (I regularly consume 2,000+ word essays on the subway on my iPhone) your overall picture is correct.
Take this very essay for example, which was aggregated by Romenesko who actually wrote a better title and lead for the story than the author. Romensko pointed out that the real problem is a structure which will never be supported by micro-payments or online advertising. (Read: I got a better experience from Romenesko's feed than the for-pay magazine experience) Ebook readers, smart phones, e-ink, flexible screens, multi-platform feeds -- none of this matters of people aren't willing to pay for the product. And this is where news-men have to take a good long, honest look at themselves and think, "are there really that many people that are willing to pay for this, and why should they?" Once they can answer that question in a way that 60%+ of the average people in a region can agree with -- they will have a logical business model.
But until then, they will be continually marketing to the luddite or dying markets of print, thumbs in their ears, ignoring the production improvements that need to be done to make it worth shelling out the increasing few dollars the average american has.
#4 Posted by Chris Tompkins, CJR on Tue 13 Jul 2010 at 08:53 PM
Some interesting points brought up in this article although I have to disagree with some of the members comments, just simply because times have changed, so an adoption of change is necessary.
http://choyungteas.net
#5 Posted by Carlos Tevez, CJR on Tue 13 Jul 2010 at 10:02 PM
Ian Lamont of Chiayi Taiwan, smile:
RE: "Consider the people reading this essay. What percentage of readers are consuming it on an e-reader, iPod, iPad, Android phone, or any other mobile device, relative to the percentage of readers who are looking at it on a PC or laptop screen? I suspect the mobile:PC ratio is quite small -- maybe just a few percentage points, if that (perhaps the CJR can let us know?). I further believe that even among those who are looking at it on a mobile device or e-reader, very few are reading it from start to finish."
Uh, what about those like me who printed the story out on hardcopy in order to read in properly and find a typo in section 3 that neither the editors nor SpellCheck could spot?
HuH? Ever heard of reading on paper, mate? Screening is for the birds.
Spot the typo? " Once again, one credit card buys access and the all the content—including news—that a consumer desires." Fixed now. Bc i wrote in..... see? paper rules!
#6 Posted by Dannie Blume, CJR on Wed 14 Jul 2010 at 10:13 AM
Well, I've just read entire piece & all comments (interesting mix, too) on iPhone-- where I also have 20 books. Problem is in journalists' heads: e-reader not THE solution. It enables easy acquisition of a new journalism-- only dimly emerging. I must WANT to consume journalistic output. Much of it forgets multimedia appropriate use for different learners.
But I am getting iPad. Going blind w/too small screen.
#7 Posted by CR Dykers, CJR on Sat 17 Jul 2010 at 08:53 AM
interesting piece although it fails to answer th crucial question: what kind of content will people be willing to pay for-in addition to all that free stuff still out there? Is it finely crafted printed text with exquisite pics? Is it a combination of text and video that commands a premium price? Is it some video game-style content luringt the paying masses? Or mulitlayered infographics where paying customers can delve into their topic of choice? Is it a winning combination of all of the above?
i'd be interested to know what kind of content works for the paid model and if there are some successful examples.
oh, and i just read the whole piece on a small palm pre screen. No problem with that. Although a mobile version of cjr would be nice.
#8 Posted by the occasional outsider, CJR on Thu 19 Aug 2010 at 01:43 PM
Interesting thoughts here - and I have to say, after having tried out an iPad for a month, that form and medium does shape reading habits, and hence desires and needs to some extent.
But there are broader problems: The first is that simply charging for content isn't going to bring back the kinds of revenues newsrooms (and great journalism) used to thrive on. (Not that all of that money was well spent, or efficiently spent). The second is that little thought has been put into thinking about how the news "product" should change online or on mobile, beyond making it more timely and throwing more bells and whistles (video, audio, interactive graphics) at what is fundamentally a 100-year-old story structure.
I try to look at how we need to evolve newsroom processes, and more importantly, news products, at my blog (structureofnews.wordpress.com) - we need to rethink the notion of story as the basic element of what we produce and learn to create more long-term value out of the reporting, researching and writing/creating process.
#9 Posted by Reg Chua, CJR on Wed 1 Sep 2010 at 08:50 PM