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Cost Cutting Through Repackaging

-Andrew Grossman

April 13, 2009

 

     If you read an article in the daily newspaper or the online version of the paper and the text of the article sounds familiar, it is probably because you have read it before. Which is to say, you are reading repackaged content that has been reprinted by one branch of a media group-say, one of its community newspapers-into another branch. Repackaging costs less than purchasing new content. Editors know they usually have distinctly separate audiences for different publications. The content can appear fresh, even if it has already been published.

 

        Publishers save money by repackaging content, if they already own all rights.. Typically, when the company first makes the purchase from the content provider, they ask for reprint rights within their own group. They also typically ask for the right to publish the content online with no additional payment to the creator. Seldom does the creative realize how much money is being signed away. These rights can result in many additional appearances of the content, such as:

 

1.  repackaging of original magazine content into a book compilation

2.  repackaging of music by an individual artist into a compilation of various artists

3.  repackaging of music by an individual artist into a greatest hits album

4.  assumption of 'download rights' when the original sale of a cartoon is for one-time rights

5.  reprint of an article sold to a daily newspaper into all editions of the publishing group's weekly newspapers

 

All of this possible future income can be realized by the creative if the language is in the original contract, but seldom does the artist, especially if she is early in her career, have the knowledge to ask for a separate negotiation of subsidiary rights.

 

        In the era of online publishing, when content is almost exclusively presented as part of a massive database, directed by a database administrator, a royalty for future sales is more valuable than a lump sum up-front payment.

 

Category:  Music Industry, Newspaper Industry, Article Income

 

Daily Content Comment is Copyrighted by Andrew Grossman.  All rights reserved. 

The material on this site may not be reproduced, distributed, transmitted, cached

or otherwise used, except with the prior written permission of Andrew Grossman.

He can be contacted through the All Content Network at:  andrew@andrewgrossman.net

Creatives Fight to Survive

 

-Andrew Grossman

April 8, 2009

 

        The fight against unauthorized use of copyrighted content on the Web is not merely being taken up by large media outlets such as AP, which on Monday announced that they will pursue copyright infringement suits against web sites that use work from AP without permission. Individual content creators are also part of this life and death struggle for payment and control of how and where their content is used. Professional writers, journalists, columnists, cartoonists, illustrators, photographers and film makers are on the front line of this battle. What is at stake is their capacity to make a living from their creative work. In other words, their careers.

 

        In the Old Media, freelance creatives in print media sold their work to magazines and newspapers. Some would eventually sign contracts with media companies such as United Media and King Features to distribute their work in return for splitting the profits. Others were able to forge successful careers by representing their interests directly in sales to print media. That success has now been made inestimably more difficult by the advent of the internet.

 

        At first, when the internet was young, the sale of rights was made in a package-the primary rights, those that would allow media to publish the content in hardcopy editions, were what the publication was purchasing. Subsidiary rights, for online publication, were considered too minor to charge additional money for. Print media certainly treated online rights this way, since there was no prospect of generating additional revenue from online editions.

 

        As the internet has matured, and as hardcopy publishing is moving rapidly toward near extinction, the online rights are now the primary reason for purchase. Print publication has become the subsidiary sale. That means that for profit creatives have been sucked into surviving in the internet world, and that means that individuals face the same daunting task as media companies-how do we make money in this new form? What complicates the formula is the tradition of the internet, back to the pre-dawn of web

history, for providing an open source culture. Open source essentially means that everyone shares and shares alike, no money changes hands.

 

        Battling this online model is now the primary and formidable task of media and its content providers. The enemy comes in many forms:  amateur artists who 'are just delighted to be published on the web'; bloggers who have never expected to be paid, since most of them approach their work as non-information oriented diarists; savvy creatives who have assumed that offering free content online will swell the audience for their work and thus make offline sales more likely; overseas creatives who look

at the internet as a chance to break into the American market.

 

        They are all making one fundamental mistake-they do not realize that the internet will soon be the only surviving content delivery system. There will be no other forum in which to sell content. It must happen online or not happen at all. Given these parameters, the imperative of the new model has changed how to conduct a creative career:  it is no longer of paramount importance whether the content is of highest quality (although quality is still a factor in become a professional). All that matters is name branding. All that matters is strengthening the perceived value of what you present electronically.

 

Category:  Copyright Laws, Article Income, Cartoon Income

 

Daily Content Comment is Copyrighted by Andrew Grossman.  All rights reserved. 

The material on this site may not be reproduced, distributed, transmitted, cached

or otherwise used, except with the prior written permission of Andrew Grossman.

He can be contacted through the All Content Network at:  andrew@andrewgrossman.net

Evening for the Newspaper

 

-Andrew Grossman

April 3, 2009

 

        Evolution and revolution is occurring in the newspaper publishing industry. The evolution is that papers have progressively over the last several years done an online edition that carries part or all of their hardcopy content. What began as an extra service to their readership has now become the only format that more and more newspapers offer. That is the revolution. The reason is that newsprint is too expensive, especially when compared to the low costs of online publishing, and more especially because of the impact that the recession has had on the willingness of small businesses to buy ads.

 

The revolution is here, but it is far more ground shaking than simply moving the delivery system from print to the internet. Advertisers, after temporarily increasing their ad buys online in the last two years, have now pulled back while waiting to see just how bad the economic contraction proves to be long term. That essentially means  there is little ad money to be had through online newspaper publishing, and to this point there has proven to be little money available in online subscriptions. The subscription model has been sucked into the same vortex as almost all other online content:  the internet historically provides free content, either through business models that have depended on drawing as many viewers as possible in order to increase ad rates, or because of media companies simply admitting that they cannot fight the renegade culture of the internet.

 

That leaves newspapers with several imperatives: 

 

1.  cut staff to the bone

 

2.  sell hardcopy newspapers as cheaply as possible in order to max ad rates

 

3.  create an online version in the hope that sufficient ad dollars

     will migrate online

 

The irony is that the only reason ad dollars would dramatically increase online is because there are few traditional avenues left available offline. Essentially, this means that newspaper management is working in two directions at the same time:  try to rescue the old model while at the same time anticipate the end of the old model and be prepared for the shift online. How does this effect newspaper content? Dramatically. Those reporters who have been laid off already have very little prospect of returning to the profession, even if publishers are successful enough with the new model to return to some version of the past. Almost all of the content created by paid reporters in the past will now be supplied by amateur bloggers who work for free. Bloggers will create their own niches. Sports fans will provide sports content, both local and national. News junkies will provide local and national news, especially through popular the equivalent of popular blogger ‘news’ sites such as RedState and DailyKos, which are highly politically partisan. Entertainment content will be provided mainly by amateur fans.

 

In the midst of all this free content, there will be some ‘blogger reporters’ who become popular enough through name branding that they receive payment. The war between amateur writers and professional writers will be vicious indeed.

 

Category:  Newspaper Industry, Publishing Online

 

Daily Content Comment is Copyrighted by Andrew Grossman.  All rights reserved. 

The material on this site may not be reproduced, distributed, transmitted, cached

or otherwise used, except with the prior written permission of Andrew Grossman.

He can be contacted through the All Content Network at:  andrew@andrewgrossman.net