… while digital downloads fade and physical music media sales hold steady.
The music industry revenue reports issued annually by the Recording Industry Association of America (RIAA) are always interesting to look at, because they chronicle the big trends in how people are consuming their music.
The 2018 RIAA report is particularly enlightening, as it finds that streaming audio now accounts for three-fourths of all U.S. music industry revenue. With more than 50 million Americans subscribing to at least one streaming service, those revenue stats certainly make sense.
Moreover, the RIAA report states that 2018 revenues from streaming music platforms amounted to nearly $7.5 billion. That compares to just $1.1 billion (~11%) for digital downloads and $1.2 billion (~12%) for physical media sales.
Equally significant, streaming revenues account for nearly all of the revenue growth experienced across the entire industry – and the growth is dramatic. Streaming revenues jumped ~30% between 2017 and 2018, whereas growth in the other segments was essentially flat.
Within the streaming segment, all three major sectors – premium subscriptions, ad-supported on-demand streaming, and streaming radio – experienced revenue growth. But paid subscriptions continue to comprise the biggest chunk of revenue; they make up ~73% of all streaming revenues, or $5.4 million.
Ad-supported on-demand streaming is also proving to be quite popular with users, but while revenues grew by some 15% in 2018 to reach $760 million, it’s pretty clear that ad-supported streaming audio services lag behind in terms of generating revenues. Ad-supported streaming may account for more than one-third of all streaming activity … but only ~8% of streaming revenues.
The third segment — radio streaming services – looks to be a particularly bright spot. These services are evolving nicely, passing the $1 billion mare in revenues in 2018 for the first time.
But the main takeaway is this: Streaming audio now represents the “mainstream” while digital downloads are going the way of the cassette tape in an earlier era. And physical media (CDs, vinyl) have stabilized to a degree that many observers might not have anticipated happening just a few years ago.
The bad news continues for the publishing industry in 2019.
I’ve blogged before about the employment picture in journalism, which has been pretty ugly for the past decade. And just when it seems that news in the publishing industry couldn’t get much worse … along comes a new study that further underscores the systemic problems the industry faces.
The results from a recent Reuters survey of publishers worldwide point to declines that will only continue in 2019. In fact, Reuters is predicting that the industry will experience its largest wave of layoffs in years, coming off of a decade of already-steadily shrinking numbers.
The main cause is the continuing struggle to attract ad revenues – revenues that have been lost to the 600-lb. gorillas in the field – particularly Facebook, Google and Amazon.
Growing subscription revenue as opposed to a failing attempt to attract advertising dollars is the new focus, but that will be no panacea, according Nic Newman, a senior research associate at Reuters:
“Publishers are looking to subscriptions to make up the difference, but the limits of this are likely to become apparent in 2019.”
In addition to boosting subscription revenue, publishers are looking to display advertising, native advertising and donations to help bankroll their businesses, but advertising is the main focus of revenue generation for only about one in four publishers — a far cry from just a few years ago.
Putting it all together, Reuters predicts that it will lead to the largest wave of publishing job layoffs “in years” – and this in an industry where employment has been shrinking for some time now.
With yet more layoffs on the horizon, it’s little wonder that the same Reuters research finds employee burnout growing among the employees who remain. As Newman states:
“The explosion of content and the intensity of the 24-hour news cycle have put huge pressure on individual journalists over the last few years, with burnout concerns most keenly felt in editorial roles.”
A major reason why: Even more is being asked from the employee who remain – and who are already stretched.
Journalism salaries are middling even in good times – which these certainly are not. How many times can an employee be asked to “do more with less” and actually have it continue to happen?
Even the bragging rights of journalists are being chipped away, with more of them relegated to spending their time “aggregating” or “curating” coverage by other publishers instead of conducting their own first-hand reporting. That translates into perceptions of lower professional status as well.
In such an environment, it isn’t surprising to find editorial quality slipping, contributing to a continuing downward spiral as audiences notice the change — and no doubt some turn elsewhere for news.
Last but not least, there’s the bias perception issue. Whether it’s true or not, some consumers of the news suspect that many publishers and journalists slant their news reporting. This creates even more of a dampening effect, even though in difficult times, the last thing publishers need is to alienate any portion of their audience.
How have your periodical and news reading habits changed in the past few years? Do you continue to “pay” for news delivery or have you joined the legions of others who have migrated to consuming free content in cyberspace?
(For more details from the Reuters research, you can sign up here to access the report.)
But will the results be any different this time around?
Since the emergence of digital magazines, salon.com has been the poster child for experimentation on figuring out the best ways for news and opinion publications to make money.
It hasn’t been an easy journey. Over a period of 15+ years, Salon has tried various different approaches – with never more than middling success.
Salon was one of the very first publications to erect a paywall for content, way back in 2001. Over the ensuring eight years, it tried several different paywall programs before dropping the paywall plan entirely in 2009.
At its height, Salon had attracted nearly 90,000 subscribers, each paying around $30 per year. But that represented less than $3 million in annual subscription revenues. Those paltry numbers were one reason why the subscription model was dropped by the publisher.
The fundamental challenge – the same one faced by so many other digital news sites – is whether people think a publication is worth paying “real money” to access when so much alternative content is available online free of charge.
Even with free access, Salon’s unique users have slipped in their totals so that in some months, they’ve barely exceeded 1 million users. Compare that to the average monthly traffic of 9 million that the publication was experiencing as late as 2016.
The user statistics for Salon do point to a certain measure of brand loyalty, with nearly 40% of the site’s desktop traffic being direct (the other key sources of traffic are search and social channels). But even with Salon’s level of brand loyalty, it remains a difficult slog. As Rob Ristagno, CEO of media technology consultancy Sterling Woods Group, puts it:
“If you can’t prove to me that your content is better than anything I can get [for free] on YouTube or through a Google search, you should probably find a new business.”
But hope springs eternal, and Salon is now trying to go back to the revenue-producing well by offering ad-free options. It’s now launched a feature that allows visitors to try out an ad-free version of the site over small windows of time – as little as an hour of viewing for 50 cents.
Other viewers can sign up for larger blocks of ad-free reading — all the way up to a year’s supply of ad-free viewing for a flat rate of $99.
In 2019, Salon also plans to return to putting some content behind a paywall, in a two-pronged effort to drive more readership toward paying for the information they see and consume on the site, while diversifying away from the programmatic ad revenue model that’s been driving most of Salon’s business of late.
One of the reasons the company predicts success in this latest endeavor is due to heightened consumer awareness of user tracking. Here’s what Salon Media Group’s CEO, Jordan Hoffner, has noted:
“I believe you’re going to see a shift in consumer demand around tracking-free [sites]. I just think that with everything that’s gone on in the industry over the last two years, I believe that people are tired of being followed.”
That sounds more like a wing and a prayer – especially when we learn that Salon‘s ad-free testing has reportedly received only “hundreds” of viewer signups so far.
In the coming months, we’ll see if Salon’s latest gambit is working. But why should we expect this foray to be any different? True, there is heightened consumer awareness of viewing tracking … but I have my doubts as to whether very many people will be prompted to pay for web content as a result.
How about you – do you feel differently? Let us know your thoughts.
What differentiates B-to-B companies who carry out successful content marketing initiatives compared to those whose efforts are less impactful?
It isn’t an easy question to answer in a very quantitative way, but the Content Marketing Institute, working in conjunction with MarketingProfs, has reached some conclusions based on a survey it conducted in June and July of 2018 with nearly 800 North American content marketers. (This was the 9th year that the annual survey has been fielded.)
Beginning with a “self-graded” question, respondents were asked to rate the success of their company’s content marketing endeavors. A total of 27% of respondents rated their efforts as either very or extremely successful, compared to 22% who rated their results at the other end of the scale (minimally successful or not successful at all).
The balance of the CMI survey questions focused on this subset of ~380 respondents on both ends of the spectrum, in order to determine how content marketing efforts and results were happening differently between the two groups of marketers.
… And there were some fundamental differences discovered. To begin with, more than 90% of the self-described “successful” group of B-to-B content marketers reported that they prioritize their audience’s informational needs more highly than sales and promotional messaging.
By comparison, just 56% of the other group prioritize in this manner — instead favoring company-focused messaging in greater proportions.
Other disparities determined between the two groups of marketers relate to the extent of activities undertaken in three key analytical areas:
The use of primary research
The use of customer conversations and panels
Also importantly, ~93% of the respondents in the “successful” group described their organization as being “highly committed” to content marketing, compared to just ~35% of the respondents in the second group who feel this way.
Moreover, this disparity extends to self-described skill levels when it comes to implementing content marketing programs. More than nine in ten of the “successful” CMS group of respondents characterize themselves as “sophisticated” or “mature” in terms of their knowledge level.
For the other group of respondents, it’s just one in ten.
Despite these differences in perceived skills, it turns out that content marketing dissemination practices are pretty uniform across both groups of companies. Tactics used by both include sponsored content on social media platforms, search engine marketing, and web banner advertising. It’s in the messaging itself — as well as the analysis of performance — where the biggest differences appear to be.
For more information on findings from the 2018 Content Marketing Survey, click here.
From the New York Times on down, leading publishers are telling us that print versions of their newspapers will eventually disappear. The only question is how soon it will happen.
But what are the implications of this pending shift to all-digital? Will online news consumers be as strongly engaged as they have been with the print newspaper product?
We now have a window into answering this question by looking at the experience of The Independent, a UK national daily paper. Two years ago, The Independent made the shift to become an online-only publication.
And the result was … no measurable increase traffic shifting from offline to online. That finding comes from a before/after analysis of the publication’s performance as conducted by European communications industry researchers Neil Thurman and Richard Fletcher.
Instead, these customers became like other digital readers. That is to say, in the words of the researchers, “easily distracted, flitting from link to link, and a little allergic to depth.”
Let’s drill down a little deeper. At the time it ceased publishing a print edition of its newspaper, The Independent had a paid print circulation of approximately 40,000, along with ~58 million monthly unique visits on its digital platform.
That a humongous chasm … but the researchers found that the publication’s relatively small number of print readers were responsible for more than 80% of all time spent consuming all of The Independent’s news content – print and digital.
That is correct: Considering engagement on all of its digital platforms, all of that added up to fewer than 20% of the time collectively spent reading the print publication.
The chart below shows what happened to readership. All of the time The Independent’s print readers spent with the paper seems to have simply disappeared when the company ceased publishing a print version. It didn’t transition to independent.co.uk.
Even more telling, the researchers found that half of print recipients had read the newspaper “almost every day,” whereas online visitors read a news story in The Independent, on average, a little more than twice per month.
While print readers typically spent from 40 to 50 minutes reading each daily edition of The Independent, online readers spent, on average, just 6 minutes over the entire month.
Here’s the thing: Whereas print newspapers usually have few if any competitors in their immediate space, online there are an unlimited number of competing sites to attract (and distract) the reader – all of them just a mouse-click away.
Even if we discount a measure of exaggeration on the part of respondents in terms of how much time they actually expend on their reading consumption versus what they reported to survey-takers, the print/online dynamics reveal stark differences. As researcher Thurman reports:
“By going online-only, The Independent has decimated the attention it receives. The paper is now a thing more glanced at, it seems, than gorged on. It has sustainability but less centrality.”
There is one silver-lining of shifting to an all-digital platform, at least in the case of The Independent. That shift has resulted in increased international reach by the publication.
But The Independent is a national newspaper, unlike most of America’s leading papers, and so that sort of positive aspect can’t be expected to apply very easily to those other media properties. How many people outside of central Colorado can be expected to read a digital edition of the Denver Post?
The main takeaway from The Independent’s experience is that for any paper choosing to go all-digital, chances are high that the audience isn’t going to follow along – certainly not at the level of loyal, in-depth time once spent with the print product.
Sure, the very real costs of printing and delivery will now be a thing of the past. But a significant – even dramatic – decline in reach, influence and impact will be the new reality for the publishers
The slow death of America’s alt-weeklies can’t help but feel a little disheartening.
Over the years I’ve enjoyed reading the so-called “alternative press.” I’ve found it a fascinating sociological exercise, where certain fringe or controversial topics and points-of-view are often aired long before they enter more mainstream discourse.
But that was before the Internet changed everything.
Before the ubiquity of the Internet, the role that alternative weeklies played was arguably one of consequence. I can recall a time where one could encounter a dozen or more papers freely available in retail establishments such as record stores, coffeehouses and head shops in any medium sized or larger North American city.
The editorial focus of these alt-weeklies covered the gamut – from alternative music, film and literature to environmental causes, LGBTQ interests and other social action priorities – not to mention various ethnic sub-groups.
Basically, any “ism” or group that was underrepresented in the mainstream press was a prime editorial focus and audience target of the alternative press.
One could chart the fortunes of cultural trends by the tone of the editorial writing in these publications – ranging from optimism and anticipation to depression or even rage – depending on the prevailing sociological or political currents of the day.
One friend of mine called it the “alt-weekly shrill-o-meter” – with the decibel level rising or falling with the fortunes of urban-progressive forces in America.
One of the foundational premises of alt-weeklies was that they should be available free to everyone, and therefore they were given wide distribution everywhere urban-aware people congregated.
The costs of production, printing and distribution were paid for through varied and frequently entertaining (of the voyeur sort) advertising.
Back in the late 1980s I was acquainted with a fellow who sold advertising for one such paper, Minneapolis-based City Pages. He earned a tidy-if-modest living selling advertising space for independent restaurants, funky specialty retailers, dive bars, performance spaces and the myriad music groups that were prevalent on the Twin Cities scene.
Other regular advertisers he relied on were the ones peddling more “questionable” fare like phone chat lines (of whatever persuasion one might prefer) and other services one can euphemistically characterize as “adult.”
Some people contend that these advertisers did as much as anything to keep many an alt-weekly publication afloat in the pre-Internet days.
The point is, in their heyday the alternative press played an important role in American urban culture – even if it existed on the margins of society and played a somewhat less-than “conventionally upstanding” role in the process.
And another thing: These alt-weeklies reflected the personalities of the cities in which they operated. Despite the inevitable superficial similarities between them, I always recognized distinct aspects of each publication that made it a true product of its place. (Speaking personally, I found this to be the case in Phoenix, Nashville, Minneapolis-St. Paul and Baltimore, where I lived and worked from the 1970s to the 1990s.)
Unfortunately, the past 15 years haven’t been kind at all to this corner of the publishing world. With the rise of the Internet (where “anything goes” editorially is an understatement), coupled with inexorably increasing costs to prepare and distribute a paper-based news product, the business environment has turned into a classic squeeze-play for these alternative papers.
Adding to those problems is the challenge of shrinking advertising revenues. Publishers aren’t facing merely the general decline of revenues from would-be advertisers who can now publicize themselves just as effectively online at a lower cost. It’s also the near-total banishment of adult-oriented advertising, as alt-weeklies have been shamed into dropping those ads due to changing societal attitudes about the objectification and exploitation of women (and men, too).
Because of these dynamics, in recent years the main story about the alternative press has been a predictable (and dreary) one: how these papers have been dropping like flies. Whereas once there were a dozen or more alternative papers published in a typical urban market the size of a St. Louis or Pittsburgh, today there may be just one or two.
In smaller urban markets, there may be none at all.
Just this past week, the last non-student run alt-weekly publication in the entire state of Montana – the Missoula Independent – shut down for good. Employees received this warm-and-fuzzy communiqué from the publisher, Lake Enterprises:
“This is to give you notice that we are closing the Missoula Independent as of September 11, 2018. As of that time, the offices will be closed and you are not to report to work or come into the building.”
In a now-familiar story line, closing Montana’s last remaining alt-weekly publication came down to a simple calculation of revenues vs. costs. (It probably didn’t help that the magazine’s staff had voted to unionize earlier in the year.) And adding insult to injury, Lake Enterprises has also shuttered the publication’s archives – all 27 years of it.
Suddenly, it’s as if the Missoula Independent never existed.
This alt-weekly publication’s experience is similar to numerous others. Lee Banville, an associate professor of journalism at the University of Montana, had this to say about the Missoula Independent’s fate after the previous owner sold the publication to Lee Enterprises:
“There was – almost immediately – a pretty good chance this was going to happen. Other alt-weeklies that have been purchased by paper chains have been closed.”
Indeed, it’s a scenario that’s been playing out all over the country: An alt-weekly begins to struggle; new owners move in with the objective of saving the publication, only to cut staffing to near-zero or shut down completely when the old (or new) business model cannot be sustained.
And in fact, no publication is immune – even an iconic brand like New York City’s The Village Voice.
Earlier this month, the world witnessed the effective demise of that vaunted alt-weekly – a publication that some people consider the best exemplar of the genre.
Village Voice publisher Pete Barbey, who acquired the media property in 2015 and turned it into an online-only publication in 2017, has now shuttered the publication completely barely a year later.
“Today is kind of a sucky day,” Barbey reportedly told Village Voice employees in a phone conference call. “Due to, basically, business realities, we’re going to stop publishing new Village Voice material.”
At least in this case, a veritable treasure trove of Village Voice archival material will be digitized and remain available in cyberspace. Approximately half of the publication’s employees are being kept on for a period of time to carry out that mission … but no new Village Voice journalism will ever again be produced.
As anyone who knows me personally can attest, I don’t come out of the “counter-culture” movement – nor would I consider that many of my personal or political views reflect those that are typically espoused by the writers and editors of the alternative press.
And yet … I can’t help but empathize with the comments of freelance writer Melynda Fuller, who has opined:
“The loss of alternative weeklies feels particularly personal. They act as mirrors for the complex lives lived in the cities where they publish. As more outlets are bought up, shut down or prevented from operating at full capacity, a much-needed connection is lost between that city’s culture and its residents.
Media is in the communications business. In a fractured time in our history, every connection counts.”
How about you? Do you feel any sense of nostalgia for the alternative press? Is there a particular favorite publication of yours that hasn’t been able to survive? Please share your thoughts with other readers.
For people who might be hoping for a turnaround in the news industry that could take us back to a world more like the one we once knew – you know, with actual journalists writing primary-sourced stories and conducting formal fact-checking – those days seem less likely than ever to return.
In late July, analytics firm MediaRadar reported on the latest stats for print advertising in the United States – and they’re continuing a long slide by falling another 13% between January and April of 2018.
Even worse: Most of the companies that stopped their print advertising during the period didn’t migrate their ad dollars over to digital. Instead, they stopped advertising altogether.
This by now numbingly-familiar trend in advertising is directly related to the financial well-being of the news media, as advertising has traditionally bankrolled the lion’s share of newsroom activities.
According to Pew, in 2008 America’s newsrooms collectively had approximately 114,000 reporters, editors, photographers and camera personnel on staff. As of 2017, the number had plummeted to around 88,000.
That loss of ~27,000 people represents nearly 25% of all the newsroom jobs that were existed in newspaper, radio, TV/cable and other information services in 2008.
Not surprisingly, the biggest decline was experienced in the newspaper segment – down a whopping 45% to ~39,000 jobs. The digital-native sector was something of a bright spot, with job numbers increasing by nearly 80% over the same period to reach a level of ~13,000 jobs in 2017.
But digital news personnel growth hasn’t been nearly enough to make up for the job losses suffered by the other newsrooms.
What’s more, even digital newsroom jobs aren’t particularly secure, with frequent restructurings being the order of the day thanks to the unsettled nature of the industry as it attempts to adjust to ever-evolving news-consumption preferences.
How are news media organizations responding? Give them credit for trying all sorts of gambits – from membership programs to paid newsletters, premium news paywalls and in-house content studios.
But how many of those efforts have proven to be financially robust enough to shoulder the costs of running a “legitimate” newsroom? Whatever the number, it hasn’t been sufficient, because whether we like it or not, most people have become conditioned to expect their news and information delivered free of charge. And while many may lip service to favoring traditional journalistic practices, most aren’t willing to put up their own money to pay for it as part of the bargain.
Meanwhile, the hollowing out of traditionally structured newsrooms continues on, with no end in sight. I wonder if there even are other financial or business models that could stop the hemorrhaging of jobs in newsrooms.