INMA’s 2023 Town Hall brought together hundreds of minds from around the globe of journalism to discuss how their companies could more successfully navigate digital transformation.
A willingness to engage with digital media and emerging technology was an early key for attendees; shown in a poll during the introductory session with Columbia Business School’s David Rogers. The soft skills of digital media in the publishing process posed most roadblocks for the outlets in attendance.
Rogers said companies must find their “Right to Win”: why should your outlet remain for five to ten years, and how will you help readers and business interests simultaneously? Balancing intrinsic motivation and respect for journalism with the extrinsic motivation needed to keep pace economically is key.
Take Newsday, represented by CCO Patrick Tornabene at a panel during the town hall. His discussion with Mather Economics’ Global Consulting Lead and Senior Managing Director Pete Doucette investigated the offensive and defensive levers Newsday pulled along their transformation journey on Long Island, New York.
Offensive and defensive levers refer to cost-cutting, defensive maneuvers that free up reliance on print in the short term and making offensive investments in the long-term digital viability of your business.
Newsday has taken defensive measures like offloading print infrastructure and using the New York Times’ facilities, drastically reducing their immediate costs. However, they are committed to neither limit nor change their print product. In fact, while print operations remain untouched , Newsday reached most of their cost base through variable pricing, something Doucette called “critical” in the digital age. Tornabene says each of these tangible business levers pulled impact the culture and future of his company.
“All of these things have a cultural impact. Not only internally, but externally. Us being very well down the road in digital, in subscriptions, in products, and now with a streaming service we launched in March,” he said. “We’ve made a real deep focus on what our content is and what our audiences are. We attribute that to our aggressive SEO discipline and our aggressive evolving of content.” Newsday currently reaches a million homes and 2.3 million people across Long Island.
Pete Doucette stressed that when thinking about the cost and revenue of running a business in journalism, consider comparing current numbers to their hypothetical cost after a full move to a digital cost-base is made. How can our organizations get closer to that eventuality? Again, companies like Newsday intend to maintain their print operations. It’s still a vital part of communities globally, but understanding this influence will wane and planning ahead is essential.
Key Takeways from Pete’s Conversation with Patrick
- Publishers need a transformation plan and vision of the future (Newsday has 5 year view)
- Defensive transformation should work on autopilot; prioritize time and resources towards offense (Newsday – defense is near term, cost focused and tactical. Triangulate on leading indicators that drive digital growth – content, traffic, research)
- Digital subscriptions, particularly pricing, is the most important part of transformation (Newsday – churn is same as print when adjusted for tenure)
- Digital subscribers are highly price inelastic
- Publishers should leverage a cyclone acquisition strategy, like Newsday, to drive growth
INMA’s 2023 Town Hall brought together minds that seek to create this path forward for the industry. Various speakers circled the idea of preparing and launching oneself into the digital age of journalism. Understanding that attitude and a willingness to fail and return to the drawing board are paramount. Companies like Mather are determined to help these outlets continue their production of media that invigorates communities and upholds its importance and relevance to their readers.
To watch the recording of the session, click below:
Get in touch with us to continue the conversation: info@mathereconomics.com
