Here’s how little hope executives of newspapers see for our industry: The idea that reportedly excited them most at last week’s secret meeting could make up about 3 percent of last year’s decline in advertising revenue.
Zachary Seward of Nieman Journalism Lab, who is doing an outstanding job of reporting on the meeting, tells in his latest report about the Fair Syndicate Consortium‘s plan to track down splogs (spam blogs) that reprint news web site content in its entirety and get advertising revenue from third-party vendors such as Google and Yahoo!
The report is interesting and I don’t fault newspaper executives for protecting their copyrights and their rights to advertising revenue from content they produce. But here’s what I found discouraging in Seward’s report:
- Jim Pitkow of Attributor, who made the “Fair Syndication Consortium” pitch, estimates that pirated content is costing newspapers $250 million a year.
- Seward reports: “Nearly everyone I’ve spoken to with knowledge of the Chicago meeting, where newspaper companies were pitched on a variety of online business plans, says that Pitkow’s presentation of the Fair Syndication Consortium was by far the most popular.”
OK, let’s do some math on that. As Alan Mutter reportedin his Newsosaur blog, advertising revenues plummeted by $7.5 billion last year (and that pace accelerated in the first quarter of 2009). So the $250 million that newspaper executives got excited about was a mere 3 percent of last year’s decline in revenue, less of what we appear headed for this year.
Sure, save that $250 million if you can. But that’s a tourniquet, not a plan for a healthy future.
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