4 questions with Keith
McAllister
Pony Express riders carried
letters and parcels in a mochila 147 years ago. Today, Mochila is an online
content portal. Keith McAllister, Mochila’s chief executive officer, talks about
the challenge of creating more content while reducing costs.
What are
some of the issues facing newspapers in regards to content management?
The fundamental challenges of
the newspaper industry are well known. In the online world, newspapers lose
their traditional advantage of being a platform monopoly and now must compete
against an enormous range of publishers, large and small, and with content of
all types, including text, photos and video.
On the acquisition side, the
question for newspapers is how to efficiently acquire content for their online
businesses that engages their users and drives page views. Most newsrooms are
facing the paradox of having to create more content and reduce costs at the same
time.
On the distribution side,
newspapers must find ways to get their high-quality content in front of as big
an audience as possible. That distribution should achieve branding, traffic
generation, and the creation of additional revenue.
We believe the traditional
subscription-licensing model offers limited value. The traditional licensing
model is limited because it requires human beings to negotiate one-off deals. We
believe there’s a great need for a technology-based solution that allows both
control and scale.
How has
content management changed over the past few years?
We are seeing a trend toward
respect for copyright. When consumers first started to turn to the Internet for
news and entertainment, the boundaries were undefined. Today, copyright
infringement issues have become more pronounced and there is a definite need in
the market for the organized exchange of rights-managed text, video and photo
content. I think you are starting to see that the traditional content licensing
and online syndication model is evolving so that publishers of all sizes — from
long-tail bloggers to large newspaper companies — play by the same rules.
In what
ways does content management help to increase revenue for media companies?
There are two pieces to the
revenue puzzle that can be solved by joining a media marketplace. First,
newspapers can leverage their digital assets by licensing them to online
publishers for a set fee. This is the preferred method of syndication for
established sites that have a large sales staff that can command high
advertising CPMs.
Second, newspapers can
increase revenue by syndicating their content in an ad-supported model. This
method allows smaller publishers who can’t afford syndication fees but are
willing to share ad revenue as payment to syndicate.
Newspapers can also further
monetize the ad-supported content by including related links that drive a new
audience back to their main site where they can provide ad page views.
What Web
2.0 trends do you believe newspapers should pay attention to?
Users are increasingly
engaging with content on a growing number of formats, including on mobile phones
and iPods. It’s important to develop strategies to drive content to these
formats and support experimentation.
One of the largest Web 2.0
trends today is the implementation of widget technology. Publishers can utilize
widgets, which we call content badges, to get packages of customized content to
integrate into their Web sites.
We believe that newspapers
have everything to gain from adopting Web 2.0 technologies, allowing them to
broaden the distribution of their content, grow their brand, enhance the user
experience, and ultimately, provide a more sustainable online business model.