#FTMedia13: Three major publishers discuss 'disruption'

Senior bosses from three publishing companies that have been in existence for around 100 years shared the challenges of 'disruption' at the Financial Times Media Conference taking place in London today.

The session heard about the challenges facing the 96-year-old Forbes brand; Gannett, which has been going for more than 100 years and owns local news titles in the US and is parent company of Newsquest; and the Financial Times, which celebrated its 125th anniversary in February.

"We think of ourselves as a 96-year-old start-up," Mike Perlis, president and chief executive of Forbes, said as he outlined the digital publishing model which involves nearly 1,000 contributors writing for the site, many of whom get paid based on the number of unique users they drive to the site.

We think of ourselves as a 96-year-old start-upMike Perlis, president and chief executive of Forbes

He said there was some resistance when Forbes reinvented its model in 2010. It required "deep change" and although most members of staff were able to embrace the new model, some were less ready to accept the shift.

Maryam Banikarim, senior vice-president and chief marketing officer at Gannett, said that change is a constant challenge for the publisher. "Speed and culture change, those are the things that keep me up at night," she admitted.

In order to push forward, she urged publishers to bring in new skills and to listen to social-savvy staff. "The younger, digitally-native people need a seat at the table," she said. "That's what will create a shift in your organisation."

Mobile

John Ridding, chief executive of the Financial Times, revealed mobile traffic to FT.com was greater than desktop last month.

"Mobile is a game changer," he said, admitting he was using an overused phrase. "It allows you to go anywhere in the world." He explained how readers want "the same FT" globally, but with some tailoring, referring to region-specific FT sites.

The FT has also introduced some local currency payment options, something the New York Times is also seeking to bring in in order to encourage more international subscriptions.

Paywalls

Around half of US news sites now have some form of paywall, Andrew Edgecliffe-Johnson, media editor at the Financial Times said in introducing the topic of subscription models.

Gannett has recently introduced nearly 80 metered paywalls for its local sites (which you can read more about here), but its flagship title USA Today does not require a subscription.

Yesterday the New York Times announced a cheaper subscription model, with readers also able to choose to access specific topics for a lower pricing plan. Ridding said that flexibility has always been central to the FT model.

Personalisation

The panel members were also asked about personalisation. Perlis explained how Forbes offers readers 'follow bar technology' to allow them to follow particular topics on Forbes. Personalisation helps readers find what they are looking for and gives Forbes opportunities to charge advertisers more knowing that they will reach specific people.

The Financial Times has recently introduced new personalisation options within its relaunched web app for iPad. Readers can not only save articles to a MyFT hub, but can toggle between a finishable 'morning edition' that replicates the paper and a 'live edition' which updates during the day.

Digital revenues

Forbes considers itself a brand business, Perlis said, explaining that it is launching a wine club and advertisers have new opportunities, such as sponsoring events.

Gannett, which recently reported a 76 per cent rise in digital revenue for the first quarter, as Edgecliffe-Johnson pointed out, has created new opportunities such as daily deals. And having a legacy brand in the local areas helps, Banikarim said. "Feet on the ground for more than 100 years is hard to replicate."

Print

"There is not going to be some cavalry riding to the rescue of lost print advertising," Ridding said.

And while Forbes grew in print revenue last year, albeit modestly, according to Perlis, he said there is great demand outside the US.

"I continue to be bullish about print," he said, explaining how Forbes sees the print product is the gateway to the multiplatform brand.

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