News-Record.com

Although we haven't hit profitability yet, here's a G'boro expat to tell you that I'm more convinced than ever that it can be done.

http://pegasusnews.com

And step one is to realize that while "The core audience for news just isn't that big," you have a lot of assets that aren't traditional news. (Say really deep entertainment listings.)

There is the question of market size -- I'd be hesitant at this point to try an online only model in a mid-market town. It seems to work best in big cities and small towns.

Thanks for the comment, Mike. As usual, it's on point. From your perspective, what will it take for GSO to be ready to support a site in the manner to which you're accustomed?

Interesting topic, John.

On a related note, I've run into a few college newspaper advisers who've mentioned to me that their newspapers are now totally online and NOT available through traditional printing press distribution. When I asked one of them (from a small school in Tenn., I believe) what that was about, she replied: "Larry, it's about saving $22,000 a year in printing expenses."

Not that I'm on the same level as "professional journalist", but I can attest to Greensboring.com being a profitable outlet. Profitable enough It would blow most peoples minds how much I make from blogging.... I unfortunately can't release the amount I earn because of TOS, but it's close to the 5 digit mark annually without tapping the local market for ads.

I see no reason why a "online" newspaper couldn't be highly profitable with a small staff of very talented people.

live, what do you think it would take to make it happen in Greensboro?

Well, it depends on where the revenue is coming from. Mine comes co-partnering with Google... Combined with local ads, I'd say you'd need a minimum of 3 types of people to get going.

1- A very talented web person who is familiar with SEO, and online marketing, and Social Media. (not the average webbernaut)

2- A Journalist

3- Someone to procure local ads and create a revenue base.

Probably the easiest method for a very successful operation would be through acquisitions. Clearly many sites like huffing ton post, or the Onion make tons of money. I suppose it would depend if we're talking about grassroots, or VC funded here.

What I don't think that would work is Subscription based revenue on the web. Atleast not in the tradition sense.

The biggest mistake I feel many local media companies (such as digtriad, or Fox) have done, is create the online media presence but failed to create the "Community" or "town hall" aspect of having a online site.

Take any sucessful online site and you'll find the key factor between the successful ones, and the not so successful ones is their ability to create a community. With a online newspaper I'd imagine it's just the same. People would come to it to read the news, but come back over and over again to talk about it with their neighbors.

Also, I've got to believe unique content is pretty important. Standard newspaper content isn't going to cut it. Unique content, perhaps even news to fit a niche would be a major attraction. For example (though not the best) - A Greensboro Tabloid.

Heck I'd pay to see that.

One great thing about it - I wouldn't be filling
my recycle container with all those pesky inserts - after I retreive my daily paper from the driveway, the recycle bin is the first place I stop, especially on Sunday mornings - I hate those silly inserts and never ever give them so much as a glance.

Thanks John for putting this out there and for everyone's great comments. I thought that there were some very helpful posts here.

A couple of comments of my own:

The Pegasus News website looks great and I really liked the interface (superior to many larger sites actually).

In terms of profitibility, I didn't see a lot of advertisements, so I think the question is still there as far as whether local advertisers are willing to spend money only online. However, I guess Fisher Communications, which runs the site and is publicly owned, certainly sees long term potential, especially in coordination with its 19 TV stations and 8 radio stations.

Personally, in any online newspaper, I would like to see more of the "news" part of the newspaper represented than entertainment items, as I think that is the only difference between a true newspaper and something like CitySearch or AOL Digital Cities.

I tend to disagree with most people that "the core audience for news just isn't that big" as I have seen firsthand evidence to the contrary in a mid-level market. News makes all the difference and can generate a lot of traffic, especially when its local and original.

And finally, the savings mentioned in newsprint costs (example: $22,000 at a student newspaper) are only one of the expenses eliminated. Few people realize the total costs of running double-decker Goss printing units and pre-press departments every day, but they are substantial.

There is also the elimination of distribution costs such as having to buy gas for all of those trucks and trailers that you see in a daily paper's parking lot every night to take the papers to the contract delivery folks, who also have to be paid.

If anyone starts an online paper, the philosophy behind the "paper" should be similar to that of Crane's Business News when they start a new (print) publication. They don't go overboard with putting an inordinate amount of money into new ventures and they do not expect the new project to be profitable for at least five years.

Crane invests for the long-haul and grows the business incrementally, which generally is a beneficial outlook that yields a high quality yet profitable product after that initial period.

Thanks again for the great comments -- they have been very helpful. It's great to hear people discussing the future of newspapers with some optimism and enthusiasm for new ideas.

John, won't work, to much trouble taking computer to John!

I'm on the fence about this.
While I get my "newspapers" online, I'm sure there are thousands of readers/subscribers who prefer the printed edition on their driveway each morning, or in their office with a morning cup of coffee. And, of course, you just can't sit on the "throne" for your morning constitutional with a website. Just doesn't work.
Many groups, associations, etc., send out newsletters in online form only to save printing and postage costs. I think it's effective in that arena.
I think print editions are here to stay.

I would imagine a Macbook Air would travel well to the throne room, but it's harder to share a website at the breakfast table.

I enjoy both the print edition and the online edition.
I read the morning paper pretty thoroughly and then during the day I occasionally check the N&R online
for any late-breaking news. I use the online edition
as a CNN substitute--I don't always care for the way CNN and other news channels handle breaking news They are tiresomely repetitive and sometimes they seem to be doing more ambulance chasing than reporting

I haven't noticed too much difference in content between the print edition and the online edition other than the blogs. I might read the online edition for more detail, but only if the detail is something in which I am interested.

Maybe the N&R can make more money solely by selling an online newspaper. I just don't see myself getting up in the morning and getting my primary news on my computer. My main objection is that I don't find reading a screen to be terribly comfortable or relaxing physically. It tends to bother my eyes after long periods of time. Also, I tend to associate a computer with work, not relaxation. I always will try to have a morning paper, even if I have to pay for a subscription to the New York Times, Washington Post or even USA
Today.

Maybe all this is different for the youngest generation. I would be interested in what people in their 20's think.

If you need to take it to the can, print it out.... not that difficult.

I've always thought "you can't take it into the can" is a bogus excuse, but perhaps I'm not typical.

And here's the thing ... the only people who have a connection to newspapers are 30 and up. Everyone else was raised with a computer and the Internet. There's no comfort in opening a newspaper with coffee in hand for the next generation of readers/advertisers, etc.