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April 22, 2011, 10 a.m.

This Week in Review: The Flipboard dilemma, Trove and News.me arrive, and a paywall number for the NYT

Every Friday, Mark Coddington sums up the week’s top stories about the future of news.

Is Flipboard a competitor or collaborator?: Flipboard has quickly become one of the hottest news apps for the iPad, and it continued its streak last week when it announced it had raised $50 million in funding. Flipboard’s Mike McCue told All Things Digital’s Kara Swisher he’d be using the money to hire more staff and expand onto other devices, including the iPhone and Android platform. But he also talked to TechCrunch about using the money to fend off a rumored competitor in development at Google. (The Houston Chronicle’s Dwight Silverman told Google not to bother, because Zite already does the trick for him.)

All this prompted a fantastic analysis of Flipboard from French media consultant Frederic Filloux, who explained why Flipboard’s distinctive user-directed blend of news media sites, RSS feeds, and social media is so wonderful for users but so threatening to publishers. Filloux argued that every media company should be afraid of Flipboard because they’ve built a superior news-consumption product for users, and they’re doing it on the backs of publishers. But none of those publishers can complain about Flipboard, because any of them could have (and should have) invented it themselves.

GigaOM’s Mathew Ingram advised media companies to be willing to work with Flipboard for a similar “if you can’t beat ‘em, join ‘em” reason: Its app has their apps beat in terms of customizability and usability, so they’re better off trying to make money off of it than their own internal options. ReadWriteWeb’s Dan Rowinski wrote about the possibility that Flipboard could be a better alternative partner for publishers than Apple, and Marshall Kirkpatrick wondered why publishers are up in arms about Flipboard in the first place.

Traditional media’s personalized news move: One of the reasons that media companies might be less than willing to work with Flipboard is that some of them are building their own personalized news aggregation apps, two of which launched this week: The Washington Post Co.’s Trove and Betaworks’ News.me, developed with the New York Times. INFOdocket’s Gary Price has the best breakdown of what Trove does: It uses your Facebook account and in-app reading habits to give you personalized “channels” of news, determined by an algorithm and editors’ picks — a bit of the “Pandora for news” idea, as the Post’s Don Graham called it. (It’s free, so it’s got that going for it, which is nice.)

All Things Digital’s Peter Kafka suspected that Trove will be most useful on mobile media, as its web interface won’t be much different from many people’s current personalized home pages, and David Zax of Fast Company emphasized the social aspect of the service.

News.me is different from Trove in a number of ways: It costs 99 cents a week, and it’s based not on your reading history, but on what’s showing up in other people’s Twitter streams. (Not just what they’re tweeting, but what they’re reading — Betaworks’ John Borthwick called it reading “over other people’s shoulders.”) It also pays publishers based on the number of people who read their content through the app. That’s part of the reason it’s gotten the blessing of some media organizations that aren’t typically aggregator friendly, like the Associated Press. [Note: We’re one of the publishers licensed in the app. —Ed.]

Since News.me is based so heavily on Twitter, it raises the obvious question of whether you’d be better off just getting your news for free from Twitter itself. That’s what Business Insider’s Ellis Hamburger wondered, and Gizmodo’s Adrian Covert isn’t a fan, though Martin Bryant of The Next Web said it could be helpful in stripping out the chatter of Twitter and adding an algorithmic aspect. GigaOM’s Mathew Ingram looked at both services and concluded that they signal a willingness by some traditional media outlets to adjust their longtime broadcasting role to the modern model of the “Daily Me.”

A good sign for the Times’ pay plan: The overall news from the New York Times Co.’s quarterly earnings report this week wasn’t good — net income is down 57 percent from a year ago — but there was one silver lining for online paid-content advocates: More than 100,000 people have begun paying for the Times’ website since it began charging for access last month. (That number doesn’t include those who got free subscriptions via Lincoln, but it does include those who are paying though cheaper introductory trials.)

As Advertising Age’s Nat Ives pointed out, there’s a lot that number doesn’t tell us about traffic and revenue (particularly, as paidContent’s Staci Kramer noted, how many people are paying full price for their subscriptions), but several folks, including Glynnis MacNicol of Business Insider, were surprised at how well the Times’ pay plan is doing. (Its goal for the first year was 300,000 subscribers.) Here at the Lab, Josh Benton looked back at the numbers for the Times’ TimesSelect paywall and concluded that an initial influx of subscribers doesn’t guarantee continued growth after launch.

Those numbers are particularly critical for the Times given the difficulty its company has had over the past several years — as Katie Feola of Adweek wrote, many analysts believe the pay plan is crucial for the Times’ financial viability. “But this means the paper’s future rests on an untested model that many experts believe can’t work in the oversaturated news market,” she wrote. “And the Times has to pray the ad market won’t decline faster than analysts predict.”

A few other paid-content tidbits: Nine of Slovakia’s largest news organizations put up a paywall together this week, and the pope is apparently pro-paywall, too. At the Guardian, Cory Doctorow mused about how companies can (and can’t) get people to pay for the content online in an age of piracy.

Google’s hammer falls on eHow: When Google applied its algorithm adjustment last month to crack down on content farms, Demand Media’s eHow actually came out better off (though others didn’t fare so well, like the New York Times Co.’s About.com, as we found out this week). Google made a second round of updates last week, and eHow got nailed this time, losing 66 percent of its Google juice, according to Sistrix.

Search Engine Land’s Matt McGee speculated that Google might have actually been surprised when eHow benefited the first time, and may have made this tweak in part as an effort to “correct” that. Demand Media, meanwhile, called Sistrix’s eHow numbers “significantly overstated,” though the company’s stock hit a new low on Monday. Mathew Ingram said investors have reason to worry, as Demand’s success seems to be at the mercy of Google’s every algorithm tweak.

A Pulitzer first: The Pulitzer Prizes were announced this week, and while the awards were spread pretty broadly among several news organizations, there were a couple of themes to note. As Felix Salmon and others pointed out, an abnormally large share of the awards went to business journalism, a trend the Columbia Journalism Review’s Dean Starkman opined on in a bit more detail.

The biggest prize from a future-of-news perspective may have gone to ProPublica, whose series on some of the machinations that worsened the financial crisis was the first Pulitzer winner to never appear in print. The Lab’s Justin Ellis noted that other winners are including significant multimedia components, perhaps signaling a shift in the emphasis of one of journalism’s most elite institutions. If you were wondering where WikiLeaks was in all this, well, the New York Times apparently didn’t submit its WikiLeaks-based coverage.

Reading roundup: No huge stories this week, but a few little things that are worth noting:

— Your weekly AOL/Huffington Post update: Jonathan Tasini came out swinging again regarding his lawsuit on behalf of unpaid HuffPo bloggers, Business Insider’s Glynnis MacNicol responded in kind, Eric Snider told the story of getting axed from AOL’s now-defunct Cinematical blog, and HuffPo unveiled features allowing readers to follow topics and writers.

— Missouri j-school students are chafing against requirements that they buy an iPad (they previously had to buy an iPod touch, and they called that plan a bust). Meanwhile, Ben LaMothe of 10,000 Words had three ideas of social media skills that j-schools should teach.

— A weird little fake-URL spoof turned into an interesting discussion about the possibility of libel through fake URLs, in thoughtful posts by both the Lab’s Andrew Phelps and TechCrunch’s Paul Carr.

— Two interesting data points on news innovation: A group led by Daniel Bachhuber put together some fascinating figures about and perspectives from Knight News Challenge grant recipients. And journalism researchers Seth Lewis and Tanja Aitamurto wrote at the Lab about news organizations using open API as a sort of external R&D department.

POSTED     April 22, 2011, 10 a.m.
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