The McClatchy Company, the third largest publication company in the U.S., is another major publisher venturing into the social shopping business. The company, which involves 30 daily newspapers, including The Miami Herald and The Fort Worth Star-Telegram, and 43 non-dailies, is offering daily discounts on its local newspaper websites. The New York Times and Denver Post have also ventured into the social shopping business.
Anyone who is in the publishing business or uses the Internet knows that printed newspapers are feeling the crunch because subscribers are turning away from the traditional style of reading the daily paper. Business Model Innovation posted an informative article about the issue, explaining that traditionally newspapers as a subscription based property made its revenue from 30 percent subscription fees and single copy sales and 70 percent from display ads and classifieds.
With the advent of Internet advertising options like Groupon, Foursquare, LivingSocial.com and even Craigslist, the traditional revenue system no longer works. Since newspapers are experiencing the competitive crunch, decisions like getting involved with social shopping seems natural.
But, is it the right order to follow?
Traditionally, we think of newspapers as a source of filtering “information for relevant news, provide insights, give background, analyze the global events, and give you information on areas most newspapers think are irrelevant to their local readers.” We don’t think of them as advertisers or social shopping businesses.
If newspapers start leaning toward social shopping with daily discounts, what will happen to the traditional newspaper that lands at our front porch every morning?