By Jim
Chisholm
Special to Newspapers & Technology
The revolution has only just
begun.
Just at a time when we begin
to think we understand the consequences of the millennial brands - Google,
Craigslist, Harry Potter, al Qaeda, Skype, 3G, etc. - then the game leaps to a
whole new level.
The driver of the new
revolution? Wireless mobile.
Mobile is the ultimate medium.
Always on. Always with you. Perfectly targeted to whom you want, where you want,
when you want. The scale and opportunity of this medium has only been held back
by the avaricious greed of the telco operators, who mostly saw their ability to
charge beyond market rate as gift from the lords above.
As someone whose mobile phone
costs regularly eclipse $1,700 month, I have been watching with glee as the
mobile majors - some of the world’s largest communications companies - have seen
their values plummet. It never seemed right to me that companies with more
customers than many continent’s populations could seemingly charge what they
wanted.
Newspaper renaissance
Today, low-cost mobile
communications are becoming a reality, and with that the revolution that will
herald the long-awaited renaissance in newspaper publishing.
Indeed, the opportunities are
growing even faster than mobile communications costs are plummeting.
Any conversation about
newspaper industry mobile marketing soon turns to the developments in Norway and
Japan.
Consider VG, Norway’s leading
tabloid daily newspaper.
As bombs and rockets fell in
Beirut, readers flocked to the paper’s Web site to view video clips and other
information posted by an expatriate Norwegian blogger armed with nothing more
than a Nokia phone.
For more than two years,
readers have sent in materials that are posted on the paper’s site. It even
offers readers T-shirts upon which are printed their own photographs. So many
thousands of readers send in material each day that VG had to staff a special
desk to handle the content.
VG’s parent company, Schibsted,
recently stated that more than 25 percent of its profits are derived from its
digital activities.
No wonder.
But there is another factor
behind the extraordinary and deserved success of VG: Telenor, Norway’s leading
wireless provider.
Instead of charging as much as
it could, whenever it could, Telenor encouraged new customers by offering
low-cost introductory plans and followed those up with a sensibly structured
pricing model.
Where other providers have
tried to rule their roosts, Telenor opted for a strategy to become a true
partner and participant.
Japanese newspapers are
reporting similar successes.
Papers are seeing high
subscription levels for all of their offerings, from news and sports to finance
and games. Why? Part of the reason is innovating content, but another big
consideration is that Japanese telecommunications providers have long offered
attractive pricing.
In Austria, one newspaper
publisher took its mobile strategy one step further by installing wireless nodes
throughout its circulation area. Its subscribers now have free wireless access,
and with that comes services such as voice-over IP telephony and other broadband
benefits, all courtesy of the newspaper.
All of this comes as next-gen
mobile phones become equipped with both telephony and wireless Web access.
Logical domain
For three years now, I’ve been
arguing that newspapers should provide a wireless service across their
circulation areas, in the process corralling their digital consumers.
Ironically, another medium has
stepped forward to offer this strategy - Yahoo, in San Francisco.
Wireless mobile services are
the logical domain of newspapers.
There are hundreds of examples
today that demonstrate how attractive mobile services are to current and
potential readers. These services add value and therefore encourage consumer
loyalty among both older and younger customers.
Most important, wireless
services generate profit and shareholder value without requiring the investment
we all believed was necessary to develop such interactive services.
Now is the time for newspapers
to seize this opportunity and corner this most compatible market, before it is
too late.
Jim
Chisholm is joint principal of iMedia, a leading newspaper industry adviser. He
can be reached at
jim.chisholm@futureofthenewspaper.com.