Tag: media

  • Hacking the hacks

    Hacking the hacks

    Hacks and Hackers is an informal global network of meetings discussing the intersection of technology and journalism. The inaugural Sydney Hacks and Hackers meetup recently looked at how journalists use data and showed the challenges the news media face in an age where information isn’t scarce.

    The panel in Sydney were Sharona Coutts, Investigative Reporter at Global Mail; Edmund Tadros, Data Journalist at Australian Financial Review; and Courtney Hohne, Director of Communications Google Australia.

    Courtney looked at some of the big data opportunities for journalists, a topic covered in the Closed Data Doors post. One of the areas she highlighted was emergency services sending out PDFs of updates during crises like bushfires and floods.

    Listening to Sharona and Edmund, it was clear they were two overworked but keen young journalists who had neither the resources or the training to deal with the data flowing into their organisations.

    Because journalists in modern media organisations don’t have the skills or the resources to properly understand and use raw data the public ends up with relatively trivial stories like league tables of school exam results or council building approvals – both of which are important, but are misread and used to confect outrage against incompetent public servants and duplicitous politicians.

    For the public servant, school teacher or even bus driver it’s understandable they don’t want their performance measured if the measure is going to be misused and possibly jeopardize their jobs.

    A deeper problem for journalism is the skills of the trade. Both Edmund and Sharona are smart young journos who will go far; but both admitted they had no training in statistic and mathematics.

    Even more worrying are the older journalists, when I mentioned the lack of older and more experienced journalists to the organiser she said none would agree to come on the panel. One suspects this is because forty and fifty year old journalists have even fewer data skills than their young colleagues.

    This lack of skills or understanding of data is probably one of the biggest challenges facing the media. In a world awash with data, the role of journalists is to filter the feed, interpret and explain it.

    Pure reportage is being overwhelmed by the sheer quantity of news and information available; the 1980s model of opinion based journalism is also failing as the audience now realise they have a voice, and better informed opinions, than the experts and columnists.

    One of the notable themes that seemed to jump out of the evening was the divide between journalists and the wider community that always seems to appear when the future of journalism is discussed.

    Usually this expressed in terms of those employed by major mastheads sneering at “citizen journalists” but at Hacks and Hackers it was about “geeks and journos coming together.”

    In reality there is no divide – good analytic and technology skills should be as much a part of journalism as any other field in a modern economy.

    The fear from the Sydney Hacks and Hackers night is that the media industry is one of the sectors that’s failing to deal with technological change.

    It’s hard not to think that journalists wondering at the power of spreadsheets and pivot tables is like 18th Century blacksmiths trying to figure out how steam engines can make better horseshoes.

    For an industry that is so deeply challenged by technological change, it seems the news media is still unprepared for the changes that hit nearly a decade ago.

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  • Breaking the media camel’s back

    Breaking the media camel’s back

    Speculation that News Corporation is going to split into two could be the straw that breaks the back of the media industry.

    News gathering has always been subsided by other revenues, mainly advertising in newspapers and commercial broadcasting.

    Since the rise of the internet, most of that advertising has followed the audience elsewhere and newspapers have only held on because some advertisers are slow to break the business habits of the last 150 years.

    Rupert Murdoch’s News Corporation took that subsidisation to another level, with profitable pay TV and movie divisions also subsidising the print operations that allowed Murdoch to reach his position of power.

    Should News now split those profitable operations away from the declining print divisions, those in the news media are going to find themselves in an even bigger world of pain as their revenue declines become even more apparent.

    We could be seeing the end game for print in News Corporation’s move. The challenge for all of us now is to figure out the journalism model that works in an era where information is a commodity and there’s no guarantees of easy advertising revenue.

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  • Australia – the Noah’s Ark of business

    Australia – the Noah’s Ark of business

    During a week of big business news, the buyout of another boutique brewery by a big corporation was barely noticed, but Lion Nathan’s takeover of the Little Creatures brewery illustrates the duopoly problem that is crippling Australian business.

    A few days after that deal was announced, rumours that Business Spectator – which the above link takes you to – would be taken over by News Limited started circulating. These turned out to be true.

    In both cases, existing duopoly players bought out small competitors, a process that’s been going on since Australia decided industry duopolies were necessary to protect the nation’s managerial classes, and these takeovers kill genuine innovation and stymie new thinking.

    For those duopolies the definition of success is grabbing a few percent of market share off each other while using their market powers to screw down supplier costs.

    A good of example of this is the retail duopoly, the farmers and producers get screwed while the supermarket chains engage in price wars driven by truly awful advertising campaigns.

    Un-imaginative, un-original and plain un-inspiring. Any smart young kid wanting to get ahead in the retail industries knows they have to look overseas for job opportunities or inspiration.

    Therein lies the real problem with Australia’s duopoly business culture – it triggers a brain drain as comfortable managements block any innovative new thinking as being too hard or just unnecessary.

    In the media duopoly, telecoms analyst Paul Budde illustrated the problem in his account on trying to convince Fairfax of where the media industry was heading in a connected economy.

    Fairfax’s management didn’t get it and didn’t care – today they still don’t get but they care deeply as their business model crumbles.

    It’s not just future managers that are looking overseas for opportunity, the customers are well.

    The duopoly model that evolved in Australia over the last thirty years depended upon the tyranny of distance to act as an effective trade wall. The Internet has demolished that wall for most industries.

    Almost every Australian duopoly is living on borrowed time. If, like the proprietors of Business Spectator or Little Creatures, your business plan relies on selling out to a local duopolist then you’d better move quick.

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  • Delivering products

    Delivering products

    Once upon a time the local plumber got to work by bicycle, then he got a jalopy and now he shows up in a van or a hotted up ute. The plumber and his customers don’t care about the way his services are delivered.

    A hundred years ago the retail industry was dominated by corner stores that customers could walk to, they received their deliveries by horse drawn carts and made deliveries on bicycles.

    Then along came the motor car, which changed shopping habits and delivery methods.

    Fifty years later the corner stores were a dying breed as they were replaced by supermarkets which customers could drive to and they took their deliveries by truck.

    Today the retail industry is changing again, as the Internet changes shopping habits and society in ways similar to the motor car.

    A similar pattern of change happened in the media sector; the evening paper died as commuters switched to cars and reading the Tribune on the tram or train home became less relevant.

    Morning papers survived as people took deliveries to read over breakfast before driving to work.

    At the same time radio and television became the dominant way most people got their news.

    Even more the retail, the web has dramatically changed news distribution methods.

    As the effects of Fairfax’s restructure sinks in, there are a group of people who don’t seem to want to accept reality – newsagents.

    Mark Fletcher’s initial post about Fairfax’s restructure on his Australian Newsagency Blog attracted some harsh comments;

    “Whilst the print media is arguably in decline I consider this post to be scare mongering……Fairfax will be here in print for years to come and to say or suggest that some days of the week will be or may be cut is pure conjecture at this point.”

    ” I am in semirural metropolitan Sydney. We have just added another 100 customers to our delivery run. Majority dont like reading their news online – old habits die hard. I hope that Fairfax dont abandon them. They like getting their newspapers in print.”

    “Hi i will not pay to read online why it is all free, but will buy paper”

    Focusing on print condemns those newsagents to the fate of the corner shop.

    What is missed in the discussions about the future of the media is that medium is not message – people want relevant content delivered in the most convenient way.

    This is true in every business. What we do is not really related to how we deliver the product, if we’re tied to one way of getting our services to a customer then we’re in trouble.

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  • Fairfax of the Future

    Fairfax of the Future

    The embattled board of Fairfax has announced major changes to the way they publish their newspapers. Is it too little, too late for this iconic media organisation?

    As the board of Fairfax struggles with poor performance and angry demands from prominent shareholders, the company has announced a change of focus and a reduction in their printing capacity.

    In a presentation given by the Chief Executive Greg Hywood, the company’s management goes through the scope and logic of their changes which are mainly around their distribution networks.

    Rethinking print

    The clearest message from the presentation is that readers have moved online with over three-quarters of readers now accessing the Age and Sydney Morning Herald digitally.

    While there are still substantial print revenues in their metro division, around $500 million dollars a year right now, it’s clear Fairfax has to reduce printing and distribution costs.

    Cutting the Chullora and Tullamarine printing plants makes sense given Fairfax has regional capacity just outside both Melbourne and Sydney.

    Shrinking the SMH and Age to a “compact” size – tabloid being the word that dare not speak its name – will get shrieks of outrage from those wedded to the broadsheet concept, but really doesn’t make much difference to the online readership that represent the future.

    Digital first

    Fairfax’s “digital first” strategy where online publication take precedence over the print editions will be detailed in a few weeks, this tis a change that should have happened years ago.

    Despite the wringing of ink stained hands by journalists who grew up in the era of hot metal printing presses, the news industry has been digital for over a quarter century. In fact the two printing plants now being closed were the digital successors to the old presses on Sydney’s Broadway and Melbourne’s Spencer Street.

    That Fairfax’s management is only realising newspapers are just another distribution medium illustrates how late they are to understanding the changes which have happened in the last twenty years.

    Using terms like “Digital First” only indicates an obsession with distribution methods rather than the product itself.

    Content above all

    Fairfax’s product is the news content which is still a valuable commodity – almost everything driving the Australian news cycle comes out of the metropolitan print media.

    What appears in the Sydney Morning Herald, Age, Daily Telegraph or Herald Sun drives most of the day’s radio, television and social media coverage in their cities. It shouldn’t be under estimated how powerful both publications are and it is why Gina Rinehart wants a stake in Fairfax.

    That value could see paywalls work for Fairfax, but content has to be worth paying for if readers are going to reluctantly open their wallets.

    A product worth paying for?

    Having a product worth paying for is where the real challenge lies for Fairfax.

    Right now much of the content sucks – there’s too much syndication which can be sourced elsewhere, for instance most of the technology section has article that appeared two days earlier on Techmeme or Mashable.

    In domestic sections like politics and property the bulk of the “journalism” is repeating other peoples’ agendas rather than reporting facts or driving debate. Much of what Fairfax’s Canberra correspondents report are anonymous briefings from “party figures” while the property section regurgitates the latest spin from real estate agents and property developers.

    Over in travel and food, those sections now largely consist of barely rehashed media releases and it’s no accident readers are fleeing those sections to more relevant, and honest, food and travel blogs.

    All of these sections have to be revamped if Fairfax is to survive. This will need new editors and probably wholesale staff changes.

    A relevant future

    The future for Fairfax is being relevant to the communities it serves. Already newspapers are irrelevant and increasingly 1970s style journalism is being ignored.

    Late last week the Prime Minister met with a group a bloggers in an attempt to soften her image with key women’s groups.

    Despite the sneering of the Fairfax Canberra correspondents, that meeting at Kirribilli House illustrates how media is changing – to politicians, readers and advertisers the old newspapers and their journalists are no longer relevant.

    Hopefully Fairfax’s board can ensure the company stays relevant and survives – the Australian media sector is dominated by too few voices as it is and losing one of the biggest players would be a disaster.

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