BUSINESS MODELS FOR COMMUNITY NEWS IN A DIGITAL AGE AEJMC Conference 2011 Penelope Muse Abernathy Knight Chair of Journalism and Media Economics School of Journalism and Mass Communication The University of North Carolina at Chapel Hill August 11,

Les High, Managing Editor Ray McKeithan, Managing Editor Jule Hubbard, Editor

Nile Wendorf, Associate Publisher Hemant Brahmabhaatt, Publisher and Owner Glenn Reedus, Editor

Help publishers, editors and advertising directors understand the imperative for change and articulate and convey their vision to employees in a positive and motivational way.

1. Foster and build a sense of geographic community 2. Set agenda for public policy debate, informing citizens and elected officials 3.Encourage regional economic growth and commerce, providing market place

1. Destroyed barriers to entry 2. Diminished pricing leverage 3. Eliminated entire categories of advertising

Destroyed barriers to entry Shed Legacy costs Diminished pricing leverage Reestablish involved community online Eliminated entire categories of advertising Build new online advertising “categories”

6 % a year

Building a Strategy Mission Why Do We Exist? What Do We Want to Be? Vision Why Do We Need to Change? Strategy How Will We Do It? Strategic Initiatives What Specifically Do We Need to Change? Measurement How Will We Determine Success or Failure?

Despite change in your market, you still have impressive strengths. You need a simple, systematic process for understanding your current position and prioritizing where to focus your efforts

1.Who Are We? 2.Who Are Our Customers? 3.Are We in a Cycle or Cyclone? 4.What are our Strengths, Weaknesses, Opportunities and Threats? 5.Who Will We Be 3 Years from now? 5 Years from now?

What do we create? content distribution aggregation How do we make money? point of sale, subscription licensing, syndication How efficiently do we create ? advertising Who are our competitors? industry rivals new entrants substitute products suppliers How will we grow? organically partnerships acquisitions aggregation distribution content

Transfer the loyalty you have in print to the online world by taking advantage of the web.

 Print-only readers remain ‘loyal friends’ but are not your future.  Online readers are your future.  There is an insatiable appetite for hometown news and information.

This requires a whole new way of thinking and selling, aimed at helping you regain the ability to charge advertisers for the unique value you are actually delivering to them.

 Play to your strengths. In doing so, you regain your pricing leverage.  Instead of only offering a “mass” buy, think also of providing your advertisers a more efficient “targeted” buy of several groups.  Follow the money.  Encourage your major print advertisers to buy BOTH print and online.

The likelihood that the structure of this medium will remain as before is nil. medium will remain as before is nil. -Eli Noam

“Creative leaders, once again, are needed to find ways to locate loyal audiences and use technology to find (ways) to research these old and new audiences...” -Donald Shaw

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