Carl Sullivan: 'Online Newspapers Need To Be More Innovative'
The online editor of Editor & Publisher says that online newspapers are now "licking their wounds" and may find charging for content to be "a folly."

I Want Media, 09/17/01

Carl Sullivan is the online editor of Editor & Publisher, the leading newspaper industry trade publication. Sullivan joined E&P four years ago after serving as managing editor of Financial Planning magazine. He recently spoke with I Want Media about what online newspapers are doing right, what they're doing wrong, and the possibility that charging fees for content could be "a desperate move."

I Want Media: Editor & Publisher redesigned its site a few weeks ago. How come?

Carl Sullivan: We were long overdue to redesign. It's been over a year since we've done much tinkering. We wanted to clean up the navigational line. There were also some technical issues related to hosting. It was part of a transition that took place after VNU bought E&P about two years ago.

IWM: What is the role of Editor & Publisher's online edition?

Sullivan: The Web site is a complement to the weekly print magazine, and in other ways it's a different beast. If there's a breaking story on Tuesday, readers will find it on our Web site and then there'll be a follow-up in the print magazine on the following Monday. The Web site allows them to not have to wait until they get the print magazine nearly a week later to get that news from us.

IWM: You must look at a lot of online newspapers across the country. Do you see any trends?

Sullivan: Well, there's not a lot of innovation going on right now. Online newspapers really need to be more innovative. The main reason [they're not innovative] is the economy. Right now everyone's sort of in regroup mode, licking their wounds.

During the whole dot-com boom, newspapers thought they were behind the curve and felt a need to catch up. Suddenly, there were all these dot-coms providing news and advertising that newspapers saw as competition. But a lot of these competing sites have scaled back or are completely gone. Newspapers are now stopping to catch their breath and focus on what they're doing online. A lot of them have had to downsize their new-media departments and don't have the money to start big projects. But I think we need to not lick our wounds too much and keep an eye on the future.

IWM: A growing number of online newspapers are charging for content. What's your opinion?

Sullivan: That's pretty much the largest debate right now. Some newspapers are charging for premium areas while others are charging for access to the entire site. But newspapers have to make sure they have unique content that people will be willing to pay for. They have to be very careful about that.

A lot of people I respect in the industry are saying that [charging for online content] is a folly; that it's a desperate move. But who knows? The jury is still out. Maybe the pay sites will be the ones that are doing it right.

IWM: The Wall Street Journal's online edition, which is widely regarded as a successful pay content site, is not yet profitable. If the Wall Street Journal can't make money online, how can a small-town newspaper?

Sullivan: That's an interesting question. Some smaller papers have local information that only they will have, so maybe they will be able to make a business and charge for it. And some small papers may offer online access for free to people who subscribe to the print newspaper. It can be a way to get more people to subscribe to the print edition.

IWM: What other business models should online newspapers explore?

Sullivan: Newspapers can charge for specialty information. The South Florida Sun-Sentinel just came out with a special e-mail newsletter about the Miami Dolphins. The Boston Globe does a similar newsletter about the Red Sox. These newsletters offer specific, detailed information, like behind-the-scenes activities at summer camp. It's the kind of stuff that would never make it into the print newspaper. But it's information that serious sports fans are willing to pay for.

A lot of newspapers are working on digital distribution of their print editions. The Audit Bureau of Circulations finally changed its rules to allow paid electronic editions of print newspapers to count as paid circulation. The New York Times and other papers are working with a company called NewsStand to deliver their print newspapers to paying subscribers over the Internet. Most of these projects are trying to deliver the contents of the full print newspaper, including advertising.

Papers also need to be thinking about wireless. The NAA has a big project on this. Basically, they're helping to create a wireless network that will allow people to get information from their local newspaper through their cell phones or Palm Pilots. It might just be headlines, or it could be a database of a paper's restaurant reviews.

IWM: What are online newspapers doing right? Are any online papers catching your eye?

Sullivan: The Virginian-Pilot in Norfolk recently ran an impressive print-and-online project about the deadly affects of asbestos exposure in the shipbuilding industry in that community. After a nine-month investigation, the newspaper ran a big series that was supplemented by a special section on their Web site, including audio clips of interviews with some of the men who are dying. It's a great example of how the Web can enhance a print newspaper's efforts.

The Herald in Everett, Washington, created an interactive map on its Web site to go along with coverage of the city's plans for a patch of undeveloped waterfront. Web-site visitors could "choose" how the land would be used by marking the interactive map with icons for things such as parks, baseball fields, sailing area, etc. Thousands of residents responded to the map, which led to more coverage of how the community wanted to use this land.

IWM: Conversely, what are online newspapers not doing right?

Sullivan: Almost everybody needs to figure out how to better serve their advertisers. A lot of local advertisers are not advertising on local newspaper Web sites. Many papers don't offer a lot of research data about their sites -- and research is usually one of the first areas that gets cut at newspapers. Advertisers need to know who is coming to your site.

IWM: Do you have any advice for online newspaper editors or publishers?

Sullivan: Well, keep your job, if you can.

IWM: How do they do that?

Sullivan: That's the big question. These are difficult times and, like I said, everyone is kind of in a regroup mode. But newspaper companies should try not to be too pessimistic and remember that the economy is cyclical. And they should remember that there's a lot that they can do online. Web sites can be a way to get new subscribers for their print editions, promote their products and serve consumers in a whole different way.



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