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Wednesday, August 20, 2008

A conversation with a neighbor

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After arriving home today, my neighbor R. greeted me as he relaxed on his front porch. After a few pleasantries, he asked, "So, how's The Sun? The new redesign is coming soon, right?"

I was startled. "Where'd you read that?" I asked.

He said he had been seeing the promo ads in the paper. Hmmmm, I thought. Real readers do see those things. That's a good sign. I told him we just got a good glimpse of what it'll look like today. A lot more visual, I said.

"Well, I canceled my subscription," he said. (Though, technically, he was still getting it through the end of August.)

Ouch, I thought.

"Why?"

And he proceeded to explain that he canceled because he got frustrated that his newspaper didn't come by 6 a.m. for about eight straight days. Some days, he commutes to work by train and he's out of the house about the same time I am (since I cover early morning news.) He wants his paper to bring with him, so he can read it on the train. For him, the delivery disruption was the last straw. He was also frustrated at how thin the Monday paper was -- why pay for that, he said, when I can get it for free online?

Sam Zell may have his own brutal economic calculus -- and I can tell you that so do readers like my neighbor, R. So many well-paid smart people diagnose the "problems with newspapers" these days as being with the content, or with "out of touch" reporters. But I'd bet a good chunk of people -- I repeat, a GOOD chunk of people -- just want their damn paper delivered on time, and not being charged more for less content.

R. is no dummy. Neither are most of our readers.

So, I pitched an idea to my neighbor: What if you could keep your subscription to The Sun, but pick up your paper at the train station? He thought about it some, and nodded approvingly.

And for the rest of the evening, I started thinking about how to make print still work for people -- after spending the past three years thinking about how to make news on the Internet work. How can we make it work for the thousands of commuters like R. who want to read the paper on the train, bus or subway? Why not deliver their subscriptions to their point of entry into the public transportation system?

Is the better model giving our product away for free (i.e. "b") or pitching our product to people in modes that are most convenient for them to access it, while we continue to make at least a little money on its actual sale. Subscribe to the paper -- and pick it up wherever the heck it is you want to pick it up. We just want you to pick it up everyday of your life.

Sure, we have newspaper boxes at train stops and bus stops and major downtown areas. But you force someone to pay full price. Sell them a subscription and give them a kiosk -- automated or manned by one or two people -- that gives them their paper at a subscription price. And guess what: you don't have to spend gas money and manpower time delivering a few thousand papers each day across the Baltimore region. Let the subscribers come to the product.

Maybe I'm naive, but is this being done anywhere? Just a thought. I probably shoulda posted it to the Tribune's Idea Bank. But maybe -- maybe -- others can share their own ideas on how to satisfy the news consumer in the 21st century on this blog. Comments away!

19 comments:

MagandangPhilippines said...

Gus: I actually think that this would be a huge convenience for those who are commuting. Ultimately, the only way to save print news is to increase access and convenience to print newspapers. Create an electronic membership card that people can just slide into the newspaper dispenser to get their paper at the terminal (with the option of a regular coin slot as well.)

Gus G. Sentementes said...

Thanks, Mag.

I, too, thought of something like an electronic membership card that people can easily swipe to pick up their Sun subscription -- why not something similar to the little things you put on your keychain and swipe at the gas pump?

When you create this type of electronic system, you really start to open up the possibilities for letting Sun readers access Sun products and promotions in a lot of different ways. More thoughts on this?

MagandangPhilippines said...

Sure. This is Moria Byrne, by the way. magandangphilippines is just my blog name. You could also use the card account to create educational programming for teachers and students with games, resources for doing research online or in the library and links lesson plans etc. NYTimes and others do this.

http://www.nytimes.com/learning/index.html
http://www.pbs.org/newshour/extra

Anonymous said...

I'm the Distribution Mgr. for b and formally for the Sun. This is an interesting idea. As always, cost is the main obstacle. The startup cost of purchasing boxes like these would be huge with no guarantee of return. Managing the copies would also be difficult. Any unused copies would be an expense yet you would have to make sure it was always full. If a reader chose not to have their paper home delivered then we would have to make sure there were copies available for everyone. This could be difficult since we need to maintain a return percentage of 5. These are just top-of-head obstacles. Let me think it through.

Michael Smith

Gus G. Sentementes said...

Michael,

Thank you for your insight into some of the on-the-ground issues such a distribution model would confront. Great points.

It would be cool to maybe test it with a pilot program for train riders at Penn Station. Maybe see how that goes. People can either buy it for 75 cents at the newstand, or get a discount at a subscription box or manned kiosk.

To help manage the number of copies needed at a particular location, maybe the subscriber designates where exactly they want to pick it up each morning.

If they don't want to commit to one location, maybe they pay a little more for the convenience of being able to swipe a card or punch in a code anywhere in the city to pick up their paper.

Maybe the secret is not making such subscription pickup locations as ubiquitous as regular newstand boxes. But putting them in high-traffic areas where we know a lot of subscribers either live and/or work (ie. near major parking garages downtown, so people can pick up the paper on their way into work.)

Again, i'm no expert. just a guy who wants to generate a little conversation here. How do we win back my neighbor's business? :-)

Gus

Anonymous said...

Gus,
I will run these ideas by the Director of Circulation. In order for this to get the green light it would probably have to either generate new subscribers or prove that people leave for their commute before our 6am home delivery deadline and therefore don't subscribe.

As for your neighbor, if you send me his name and address I will have someone contact him and they will make sure he gets his paper on-time. There are numerous reasons he could be getting a late paper. You can just email it to me. michael@bthesite.com

Christopher T. Assaf said...

This an excellent idea, though maybe not feasible, it should be looked into. The conversations with neighbors can really provide good anecdotal evidence for good and bad things with the paper. I know, I hear a lot of them from mine. Many are lifetime subscribers.

Maybe boxes that take credit cards and a subscriber card? No need to have change...

Gus G. Sentementes said...

Thanks, Chris. Let's give this idea a name: "portable subscription."

I've been running the idea of a "portable subscription" past several random people who are newspaper readers and they seem to really like it. I think when you give people such flexibility, it really starts to be attractive to them, as consumers.

It's not necessarily attractive for all readers/subscribers, but if you start testing it with commuters at train stations, you can really start to see how it works as a model.

I'm operating under the assumption that a major newspaper would like to figure out a way to get its newspaper into the hands of a subscriber in a way that saves money on delivery logistics and is more convenient for subscribers. Without running any numbers (and really, I have no numbers to run right now), I have to guess a company saves money by disseminating a few thousand subscriptions from one point (a train station), than paying multiple drivers to drive around greater Baltimore tossing papers onto commuters' front lawns each morning....

But, I could be wrong!!

Maurice Bradbury said...

Since we're beefing--I don't subscribe because there is apparently no way to not get the Sunday paper. I find that really strange-- aren't there lots of businesses that aren't open on weekends or Sundays? I even offered to pay for the full week if they could just stop delivery for Sunday, but they would not work with me at all.

Gus G. Sentementes said...

That's interesting -- and the first time I've personally heard of that issue. I will try to find an email that readers of this blog can use to submit their circulation/subscription issues to and link to it here. Hopefully you can get a quick, satisfactory response.

jackie said...

Flexibility is often one the top reasons cited by readers who leave print for online, so I think havin gportable subscriptions would be a great idea, in any form. As for what mjb alludes to, why not have a more customizable subcription system? Why not let readers choose how many days per week they'd like to get the paper?

Thanks for this blog, by the way-- I teach media and communication studies at a local university, and this transparency is fascinating to me!

Anonymous said...

While I think it's an interesting idea, I also think it's an idea that's about 5 years too late to implement successfully as a profitable operation. Omnipresent network access got a whole lot closer to an every day fact of life with the release of the iPhone.

As Michael Smith said, there are going to be significant start up costs for rolling this out in any widespread manner, and I'd say within 24 months from now, there will be 30+ million iPhones in the US alone. I think the number of people who read the physical paper is going to dwindle pretty rapidly to traditionalists who like reading paper more than a screen, as many will be able to read the Sun online while commuting.

Dingo said...

How about decent writing? How about not getting 2/3 of your content from wire services? How about increasing the amount of editorial content instead of turning into essentially an advertising circular with a few stories scattered throughout?

How about reopening the foreign bureaus so we can get a take on the news that's different from the other papers? How about more local beat reporters who have the time and focus to develop real expertise in particular local issues?

These are things that would cause me to renew my Sun subscription.

Unknown said...

Hey Gus & blog readers,

For delivery or subscription issues, you can email customersatisfaction@baltsun.com. It's on the "About the Baltimore Sun" page of baltimoresun.com, but I just realized it's vaguely worded so I'm going to rewrite.

Anne Burger
Sun Interactive Marketing Manager

Gus G. Sentementes said...

Thanks, Anne. I'll post that link on the main page so readers can find it easily in the future.

Gus G. Sentementes said...

The email link to the Sun's official e-mailbox for dealing with customer satisfaction is up in the right column of the main page of the blog. Please use it! Tell The Baltimore Sun what you like and don't like. It's important. Thank you.

jd said...

Put a printer in the home of every subscriber who wants a paper version. Cut a deal with the printer manufacturer, take a cut from the ink and paper sales. Customer can set amount of news to print, when to print it. This method eliminates a lot of cost for the producer and also saves the consumer from unwanted sections or pages.
BTW, Gus, just heard from a friend today who picks up "b" because it's at his bus stop. He's not thrilled with the product, but he can't beat the convenience.

Gus G. Sentementes said...

So will those printers print ads, too? Or can a subscriber choose not to print them? Because I thought the big problem with the news business right now is not necessarily readership -- people love to read stuff for free online -- but keeping the advertisers on board, 'cuz the ad rates they pay help foot the bill for our great journalistic enterprises.

Caederus said...

Forget the paper. Accept that the "paper" will be electronic.

Just look at the Amazon Kindle . To quote Amazon...

Top U.S. newspapers including The New York Times, Wall Street Journal, and Washington Post; top magazines including TIME, Atlantic Monthly, and Forbes—all auto-delivered wirelessly.

Top international newspapers from France, Germany, and Ireland; Le Monde, Frankfurter Allgemeine, and The Irish Times—all auto-delivered wirelessly.


How will a physical paper compete with that?