Yahoo fights a losing battle with newspapers

By Tim Conneally | Published November 19, 2007, 7:44 PM

Though it has announced more members joining its newspaper advertising group, the future of Yahoo's consortium is not looking strong.

The Associated Press reported today that Yahoo has added 17 more participants to its newspaper consortium, bringing the total to about 415 daily publications, and 140 weekly.

All of the new members are owned by the New York Times, with the exception of The Columbus Dispatch, which is privately owned by Wolfe Communications. The New York Times itself though, has not joined the group.

While this sounds like a step forward for the year-old local news ad sharing project, it comes in the wake of wider disarray.

Newspapers are based on an ethic of competition: competition for readers, for stories, and for advertising revenue. This competitive spirit was encouraged to drive papers to spend money on the improvement of content, to produce news most pertinent to its readers, and to keep newsstand prices as low as possible.

In an era when the medium must integrate into the "new media" paradigm, the competition that once drove newspapers to improvement is only driving their integration projects into the ground.

Over ten years ago, Microsoft attempted to harness the entertainment listing and classified ad revenue of local weekly papers with its Sidewalk project. At the time, the quandary was that local papers' content was too region-specific to be seen as valuable for the World Wide Web, and the real value was community level. The papers balked, and Microsoft eventually divested from the project and Sidewalk was absorbed by CitySearch.

By this point, newspaper circulation was already in decline by about one percent per year, and by the turn of the millennium, only 53 percent of American households purchased even a single edition of the newspaper each day.

Last year, faced with an uncertain future, seven major newspaper publishers: Scripps, Belo Corp., MediaNews Group, Hearst, Lee Enterprises, Journal Register Co., and Cox Newspaper, teamed up with Yahoo in a consortium aimed at building Yahoo's HotJobs, and forming mutually beneficial advertising solutions.

But the project has not matured much outside of the HotJobs realm. The opportunity for content sharing and advertisement cross-sales has not quite gelled to the liking of the newspapers. Now, three of the consortium's original members have aligned themselves with Gannett and Tribune -- two of the country's highest circulating newspaper companies -- who have not joined Yahoo's group, and incidentally also own CareerBuilder.

This "all-newspaper" consortium is talking about forming its own online ad network to compete with Yahoo's. It would allow national advertisers to purchase space on all subsidiary Web sites and papers at once, and keep advertising revenue in the family.

Unfortunately, the solidarity of print news groups has always been tenuous, and similar projects ended in dissolution. This disharmony could signify an early end to Yahoo's endeavors.

Comments

View comments by with a score of at least

Mainstream newspaper subscriptions have been decreasing for years now.

I wouldn't be surprised if they try to emulate the alternative media in this way but still throw some Pentagon Propaganda in the mix.

http://www.infowars.com/...gle_avoid_own_orbit.htm

Much Love to you all

Score: 0

|

Google's value proposition for Chrome OS: Should we feel insulted?

Scott Fulton On Point: For a search engine that has direct access to all the world's online history, it appears to have taught Google nothing about selling a machine.

Sony looks to finally open a single storefront for downloads

Sony has had many different download portals for movies, music, e-books, and games, and now it's looking to make a single shop for all of it.

PDC 2009: What have we learned this week?

There was the freebie that no one will forget, the heebie-jeebies courtesy of Scott Guthrie, and a teensy bit clearer picture of how this cloud thingie should work.

Tuning out the tablet: Time to give the endless speculation a rest

Wide Angle Zoom: Wishing and hoping and thinking and praying....won't put an iTablet on the market.

Microsoft's .NET Micro Framework is now free and open source

The latest version of Microsoft's .NET Micro framework is now in the hands of the FOSS community.

E-book readers will be in short supply this holiday season

E-readers are hot this year, and a lot of compelling new products have been released, but are there enough electrophoretic displays to go around?

Five improvements for IT managers in 2010

If businesses are to improve their efficiency for next year, they need to stop and reassess the basic tenets of their job.

Live report: Will Google Chrome OS change Linux?

The mysteries of just what Chrome OS is, and how much of an operating system it truly is, may be resolved today.

AOL's spinoff from Time Warner to shed 2,500 jobs

As AOL moves toward become an independent company again, it will cut nearly a third of its workforce.

PDC 2009: Microsoft cares about Web browser performance

The effort to give users of the world's dominant Web browser the impression of quality, is a personal one for the man who leads that battle.

Nokia re-affirms its commitment to Symbian, sort of

Maemo won't necessarily be replacing Symbian in the Nokia N-Series, but that's definitely a place where it will be found.