The Monterey Digital Herald
a presentation by e-Debate Team B
Maria Lambarte -- Frank McEntire
Hai Nguyen -- Mariko Nihonyanagi
Jessica Onken -- Niko Rastrullo
Nicholas Rodrigues -- Brandon Rose
Leslie Smith -- Nancy Villegas
Amelia Weigant
CST 373-01 Spring 2009 Kevin Cahill
Table of Contents
Problem Definition
Historical Context
Stake Holders
Competitive Analysis
Economic Factors
Environmental Factors
Technological Factors
Recommendations
Pros and Cons
References

Problem Definition
The newspaper industry is suffering from a steady
decrease in printed newspaper sales and distribution since
the creation of the Internet.
The industry must switch to the cheaper and more
efficient medium of the World Wide Web, or stay unchanged
and go out of business.
Problem Definition (continued)
Traditional newsprint...
•
Has been around for 400 years as a primary distribution
of news (Wilkinson, 2009)
•
Is becoming antiquated in the face of modern
technology
•
The World Wide Web and television allow news to be
updated instantaneously
•
The current economy has driven newspaper sales lower
•
Newspaper companies will eventually go out of
business, with either the economy or time being the
cause
Problem Definition (continued)
•
Newspapers will eventually fade from existence, like the
ATRAC tape and telegraph
•
If major newspaper companies start posting articles
online, more will follow
•
The Kansas City Kansan, a paper on a similar scale to
the Monterey County Herald, has already gone digital
(Wiebe, 2008)
•
Newspapers will become an outdated business plan if
nothing is changed
•
The Herald has a chance to be a pioneer in this
transition
Historical Context
•
Early attempts at written news began with the
Gutenberg Press, invented by Johann Gutenberg
•
The earliest forms of newspapers were formed like
books or pamphlets in 1513
•
By 1640, the covers were removed and newspapers
began to resemble their modern day incarnates
(Britannica, 2009)
•
The first newspaper for the United States was the
Boston Newsletter, which began circulation in 1704
•
By 1732, the Newsletter expanded to cover worldwide
events (Early America, 2009)
Historical Context (continued)
•
Newspapers remained a dominate news source until
the 20th century
•
Radio was the newspapers first new form of competition
•
After World War II, the television was invented, and
newspapers lost their foothold as a dominant news
source
•
From 1940 to 1990, 267 newspapers had shut down
(Stephens, History of Newspapers)
•
With the introduction of the Internet, newspapers
continue to suffer around the world.
Circulation continues to fall
at about 2.5% year-to-year for dailies and 3.3% for
Sunday editions.
Daily Newspaper Readership by Age Group
Percentage Reading Newspapers in an Average Week, 1999-2007
Young people continue
to shun the newspaper.
In 2007, just 33% of
18-to-24-year-olds and
just 34% of 25-to-34year-olds read a
newspaper in an
average week,
according to data from
Scarborough Research.
Historical Context (continued)
•
The French government is giving 780 million dollars to
their newspaper industry
•
Their newspaper is the lowest selling form of newsprint
in Europe (MediaBuyerPlanner.com, 2009)
•
The internet has an upside to it:
•
Most US newspapers have created online news sites,
and average 60 million visitors per month (Reuters,
2008)
Stake Holders
•
It is irresponsible for the owners of a company to let it
die without attempting to save it
•
The Herald currently employs 200 to 500 people that
could be affected (LinkedIn, 2006; MediaNews, 2009)
•
MediaNews Group, the owners of the Herald, are at risk
•
With 31% of the MediaNews Group's stock, the Hearst
Corporation is the majority share holder, and also at risk
•
The readers of the Monterey County Herald are also a
major stake holder, and those with computers have
better access to the news
Stake Holders (Continued)
Stake holders at the Media News Group:
•
Gary Wright, chairman
•
William Dean Singleton, vice-chairman and founder
•
Jody Lodovic, president
•
Steven B. Rossi, vice president and chief operating
officer (LinkedIn, 2006)
Stake Holders (continued)
•
A time of change approaches for those who contribute
to the news industry
•
Reading and other elements that are a part of news
print have become fully integrated with the Internet
•
The Herald, which has outsourced their printing and
delivery needs, can easily transition to an online
newspaper
•
Authors already use computers to write their articles,
and computers can make layouts as well
•
Stake holders can ensure stability in the future with this
transition
Competitive Analysis
•
Competition has shifted with the invention of the
computer and Internet
•
The Herald's greatest opponent is the Internet itself, as
many people today can access it via computer, cellular
phone, or Blackberry
•
Competing newspapers include the Monterey county
Weekly, The Carmel Pine Cone, and the Carmel Valley
News
•
Other competitors include the Paper (written for the
lesbian and gay communities) and the Californian, the
Salinas newspaper
Competitive Analysis (continued)
•
Magazines offer competition, though their information
isn't always local
•
Radio and television are also major opponents
•
Radio listeners can keep up with the news while driving
to and from work
•
TV viewers can watch the news from the comfort of their
living room
•
Society today is fast-paced, so many simply don't have
the time to read a newspaper
Economic Factors
•
The cost of printing and distributing a daily newspaper
needs to be considered
•
According to the article, Electronic Newsletter, the price
of online newspapers increases with the amount of
visitors, but is still cheaper than traditional methods
•
Newsprint currently costs $778.70 per metric ton, with
the Herald producing 7 tons of newspaper on a typical
day
•
That's about $5,500 spent a day on newspaper
(Paperage, 2009)
•
Even the CEO of the New York Times plans to transition
and stop printing entirely (Avriel, 2007)
Economic Factors (continued)
•
According to the Fresh Air interview from WHYY,
traditional newspaper models need to be reinvented
•
The Monterey County Herald can increase their visits
through advertisements, such as Google Adsense
•
This would increase the amount of money saved
through circulation, and also increase profits
Environmental Factors
•
Switching to an online paper would be more
environmentally friendly
•
Newspapers are the fourth largest source of carbon
dioxide emissions, after chemical, coal, and primary
metals (Koerner, 2008)
•
Few readers save newspaper after reading it, and
dispose of it
•
400 tons of newspaper is collected for recycling per
year, on average
•
Most newspaper ends up in landfills
Environmental Factors
(Continued)
•
Producing a newspaper requires tremendous amounts
of energy
•
The amount of energy needed to produce 1 kg of
newspaper is about 61 megajoules of energy
•
The Herald can take the next step in helping the
environment by switching to an online paper
•
Many companies have already become environmentally
friendly, and every little bit helps
Technological Factors
•
The idea of the offset printing press has not changed
since 1903
•
The Monterey County Herald uses a computer plate
system to print their newspapers
•
The use of ink remains unchanged
•
An average newspaper goes through 3,500 gallons or
more of ink per year
Technological Factors
(continued)
•
The average printing press uses 12 large towers
•
These towers require newspapers to buy larger
buildings in order to do printing off-site.
•
With the switch to an online newspaper, the space used
by printing tower buildings can be used to house
servers
•
Another option is the newspaper can move to a smaller
and cheaper building, and a server farm can be built
elsewhere
Technological Factors
(continued)
•
With the Internet as the medium, the Monterey County
Herald will be able to share information about the
Central Coast all over the nation
•
Kindles, netbooks, web enabled cellular phones, and
other devices with internet access can also become
enabled to display the articles
•
A future use of the technology that could be adapted to
this is the flexible OLED screen, which mimics the
thickness of paper
Recommendations
•
1: Switch to an online newspaper, and have a
weekends-only newspaper that summarizes the events
of the week. This will allow those without Internet
access to keep up with the news.
•
2: Advise companies that advertise in the newspaper to
post printable coupons on the news site, or advertise
their site on the news site. Also, the Herald should
provide links to comic sections on the Web, and pay
companies, if necessary, to have their website listed in
search engines
Recommendations (continued)
•
3: Establish an archive system that makes previous
articles easy to find and recover.
•
4: Allow those without internet access to keep up with
the news by giving weekly subscriptions to public
libraries.
•
These suggestions will allow the Monterey County
Herald to successfully switch from a printed paper to an
online news source.
•
It will benefit the environment from reduced waste, and
many individuals will have easier access to local news.
•
Many already turn to the Internet to get their news
sooner.
Pros and Cons
•
Pro:
•
Con:
•
Environmentally friendly
•
•
News can be updated
instantly
•
Articles can be found
faster by searching
relevant information
The digital divide will
prevent the poor, elderly,
or those living in rural
areas to keep up with
the news
•
•
Switching to an online
paper could attract
younger audiences
Switching to an online
paper will create a loss
of jobs in the printing
industry
•
Online ads are
frustrating
Pros and Cons
(continued)
•
Links to relevant
information can be
provided within the
article
•
Online papers can be
confusing, and people
online tend to look for
only one particular story
•
Credentials of the
authors can be easily
accessed
•
•
Readers can comment
directly on articles
Screens can strain the
eyes, and be less
enjoyable. Some prefer
the feeling of holding a
newspaper.
•
Articles can be emailed
directly to subscribers
•
•
Greater ad revenue
E-papers can't be
portable unless you
have a mobile internet
device
Questions
???
References
America's First Newspaper. Early America. Retrieved January 28, 2009 from:
http://www.earlyamerica.com/earlyamerica/firsts/newspaper/
Avriel, E. (2007). NY Times publisher: Our goal is to manage the transition from printto internet. Retrieved February 22,
2009 from http://www.haaretz.com/hasen/spages/822775.html
France Pledges $780 Million Dollars to Struggling News Industry. Posted Jan. 3, 2009. Retrieved Jan 28, 2009 from:
http://www.mediabuyerplanner.com/2009/01/23/france-pledges-780-milliontostruggling-newspaper-industry/
Fresh Air from WHYY. (Interviewer) & Downie Jr., L. (Interviewee). (2009). Former'Post' Editor Details The 'Rules Of The
Game' [Interview video]. Retrieved from National Public Radio Website:
http://www.npr.org/templates/story/story.php?storyId=99173374
Koerner, B. (2008). Should I Cancel My Newspaper Subscription? Retrieved February12, 2009 from
http://www.slate.com/id/2185143/
Larry Parsens. (2008). Bought By Denver-based Media Chain. Save The Herald, retrieved Jan 28, 2009 from:
http://www.savetheherald.com/page3.php
Linkedln Corporation (2006). Monterey County Herald. Retrieved January 23, 2009, from
http://www.linkedin.com/companies/monterey-county-herald
MediaNews Group. (2009). Monterey County Herald. Retrieved January 23, 2009, from http://www.montereyherald.com/
References (continued)
Newspaper. (2009). In Encyclopædia Britannica. Retrieved January 28, 2009, from Encyclopædia Britannica Online:
http://www.britannica.com/EBchecked/topic/413113/newspaper
Paperage.com. (2009). Newsprint Prices by Grade Per Ton. Retrieved February 2, 2009 from
http://www.paperage.com/foex/newsprint.html
Reuters.(2008). Newspaper websites draw record viewers. Posted Jan. 25, 2008. Retrieved Jan 28, 2009 from:
http://www.internetnews.com/breakingnews/article.php/3723891/
Wiebe, M. (2008, December 31). KCK’s Kansan to go online, end print newspaper. The Kansas City Star. Retrieved from
http://www.kansascity.com/news/breaking_news/story/959759.html
Wilkinson, E. J. (2009). A brief history of newspapers. International Newspaper Marketing Association. Retrieved January
27, 2009, from http://www.newspaper-industry.org/history.html