The New York Times Is Now Supported by Readers, Not Advertisers
At the company’s big three papers — the New York Times, International Herald Tribune, and Boston Globe — print and digital ad dollars dipped 6.6 percent to $220 million, while circulation revenue was up 8.3 percent to $233 million. The historical rebalancing may indicate a sea change in an industry that has long relied on advertising to stay afloat.
An interesting fact all by itself. Sending my mind along multiple future paths for the newspaper. Will readership shrink as it goes from free to paid? Can it still be the paper of record if it’s behind a paywall? Are they just forcing freeloading readers to go elsewhere?
It did send me to the Los Angeles Times, San Diego Union-Tribune, and, ironically, to social media for alternate news sources.
Though, I do have a bone to pick with one of the closing statements in the article, “…no longer depend on ad revenue, but must rely more than ever on the whims of the customer.”
I would have thought being free of advertisers to be a positive move. Is this a ‘thing’ in the newspaper industry that readers are so whimsical?
And, why does the New York media always have to insult its readers?
Most people know the traditional banking model, if only from George Bailey in It’s A Wonderful Life.
In simplified form: A bank takes deposits from savers, and pays them a low interest rate. Then it lends that money out to borrowers at a higher interest rate. The bank’s profits come from the difference between the rates.
Charming…but far from the truth for the modern bank. An article from NPR’s Planet Money looked into JPMorgan Chase, the largest bank in America, and found they do much more than that.
The two most important ‘extra’ activities are charging fees and the outright investing of their own money. Here is how it breaks down:
- $48 billion – interest from loans
- $35 billion – fees
- $11.5 billion – trading
A little less than half of the bank’s revenue comes from non-traditional banking activities (fees, trading). Not so bad, especially with trading accounting for so little. Remember, one of the root causes of the financial crisis was all the big banks exploding their trading. When the market collapsed so did they, but were “too big to fail” and we had to bail them out.
Suffice it to say that banking with deposits and loans is very hard (George Bailey nearly went under), add in too much trading and banks become very unstable.
It’s official, all the social networking sites have started adding “promoted” tweets/posts/places to your news feed. It’s no surprise considering that Twitter, with its “promoted tweets,” recently said it has a “truckload of money in the bank”.
Today Foursquare is launching its version of search ads, Promoted Updates.
Promoted Updates operate like Google’s promoted listings or Twitter’s promoted tweets. They are pay-per-action ad placements that only appear when a user is searching for a venue in Foursquare’s Explore tab.
Foursquare determines a user’s current location and check-in history before displaying a Promoted Update. The ads are powered by the same recommendation engine as its Explore feature. All of the paid placements will be clearly labeled at the top of the feed; they can include a store’s recent news, photos or specials.
Foursquare has partnered with about 20 merchants, from small mom and pop shops to national chains like Best Buy, to launch the pilot program. In the next few months, Foursquare hopes to turn Promoted Updates into a self-service tool merchants of all sizes can use on its platform.
Keep reading: Business Insider - Foursquare Launches Promoted Updates, Its Newest Effort To Generate Revenue
The following is a press release from Goodwill of Orange County, California. It discusses the great success the company has had managing e-waste and creating green jobs.
Check out your local Goodwill to see if they are also accepting e-waste, there is a good chance they are!
Turn Your E-Waste Into New Opportunities.
We all know those old TV sets, computers, printers and other electronic stuff (known as e-waste) can reek havoc on the planet if tossed into the landfill.
What you might not know is that, by donating it all to Goodwill’s E-waste Solutions program, you’ll be providing job training and green jobs to people with disabilities and other barriers–while helping to save the planet. That’s what we call turning your e-waste into a brand new opportunity.
Since 1924, Goodwill has pioneered our own “Reduce, Reuse, Repurpose and Renew” manifesto by creating a sustainable platform that provides jobs, revenue and a greener environment. We make it easy to be green by providing a safe and free service to the community, where we in turn are able to recycle computers, TVs and other electronics.
- Reduce: By making recycling easy, we reduce the amount of toxic materials that would otherwise end up in our landfills
- Reuse: We repair what we can and re-sell to bargain-driven families in the community who can’t afford the latest electronics
- Repurpose: What we can’t repair, we disassemble and separate the metals that is in turn sold to reputable state recyclers
True to its mission of creating new opportunities, Goodwill of Orange County has been a ‘green’ business long before the term was coined.
All Orange County Goodwill Locations Accept E-waste at No Charge
As a California State Certified e-waste collector we’ll gladly accept all your electronics, working or not, at one of our Orange County donation centers. Tax receipts are provided. If your business has 20 e-waste items or more to donate, call us and we’ll pick them up — free of charge.
Click here to see what items we can accept and what items we cannot accept.
Via – Orange County E-Waste Solutions
Forbes has LinkedIn CEO Jeff Weiner on the cover—but the professional social network’s business model is the real hero of the story.
Here are some of the amazing statistics Forbes’ George Anders reports:
- LinkedIn users spend an average of 18 minutes a month on the site. Facebook users spend 6.4 hours a month.
- But LinkedIn gets $1.30 in revenue for every hour those users spend on site. Facebook: 6.2 cents.
- Anders describes LinkedIn’s most expensive product offering, LinkedIn Recruiter, as a “Bloomberg terminal” for talent scouts. It costs up to $8,200 a year per “seat,” or user license.
- Adobe, a big LinkedIn customer, has 70 seats. At list prices, that’s about half a million in revenue a year from a single client.
- LinkedIn’s top salespeople make as much as $400,000 a year selling Recruiter.
- LinkedIn spends 33 percent of revenue on sales and marketing.
- LinkedIn’s profits are expected to double this year to $70 million.
Via - How LinkedIn Gets TWENTY Times More Money Per User Than Facebook
**Note: Facebook’s profit in the last quarter was $205 million on revenue of $1.1 billion.
The owner of The Orange County Register announced today that the paper has been bought by 2100 Trust LLC, a privately-held company led by a Massachusetts investor who previously planned to buy The Boston Globe.
Today’s announcement is the latest in a major sea change in U.S. newspaper ownership as the industry struggles to adapt to the Internet age following years of plunging ad revenues and declining circulation.
A whole new group of media players has entered the scene, the most notable of which is billionaire Warren Buffett whose company, Berkshire Hathaway, said last month it would pay $142 million for 63 Media General newspapers.
Southern California’s media landscape is also being remade. Last year, Douglas F. Manchester, a San Diego developer and hotelier, bought the Union-Tribune from Platinum Equity, a Beverly Hills private equity firm. Manchester told online website Voice of San Diego he paid more than $110 million for the paper.
Changes may also be in the works at the Los Angeles Times whose owner, the Tribune Co., is going through what is expected to be the final stages of a nearly four-year bankruptcy.
Many experts think the creditors who will take over Tribune Co. after the bankruptcy will sell off its various properties including the Times.
Read the full story – Orange County Register company bought by private firm
Also, read the family history of The O.C. Register founders - Hoiles: Dynasty to bankruptcy
With the announcement of Amazon’s new Cloud Player iPhone app, the Universal Music Catalog is one step closer. For years I have dreamed of this Star Trek-like device, where I can find any song I want and listen to it, from anywhere. Preferably this will be an app on a device I already own (smartphone), rather than a new iPod or something.
Though, I would buy an iPod that had the Universal Music Catalog on it.
You may be skeptical but let’s work through this.
First, all three major online music retailers, Apple/Amazon/Google, give you the ability to upload thousands of songs to their cloud for free or at nominal costs. Which means that each of them has the most massive music catalog you can possibly imagine. They also highly promote the “matching” ability of these mega-drives, which means that they probably already have the song you’re uploading so don’t worry, you can just use their copy.
But, if they don’t have your song then they will store a copy on their drive, a brilliant way to continue growing their catalog.
Second, the details here are awesome. Amazon just announced that if you pay $20/year you have unlimited storage space for music. Google offers space for 20,000 songs for free and Apple is charging $25/year for storage of 25,000 songs. This even includes those mixtapes you’ve been carrying around, rare CD’s, and even live recordings.
Yeah, the piracy debate is dead in the water here. Theoretically, one person could pirate 20,000 songs and then upload them to Google for free, with forever storage.
California is hoping for another Google-effect like the one that happened in 2005, after the company’s IPO. From 2004 to 2005 the revenue from capital gains taxes in California shot up $14 billion.
Mark Zuckerberg, whose initial public stock offering in two weeks could value the company at $96 billion, will cut in the state for an estimated $189 million in cash, according to calculations from PrivCo, which researches private companies.
The federal government will be in the money too, collecting an estimated $714 million in federal income tax from Zuckerberg.
And that’s just the payout from Zuckerberg. The windfall for California from the rest of the IPO could net California hundreds of millions more.
…the IPO could pump nearly $2.5 billion into state coffers over the next five years.
via LA Times
// Photo - Håkan Dahlström