Consider this one simple fact: Mr. Munjoy distributes his product on a platform he uses for free. If he ever decides to charge a fee, it will be for his blog’s content, not its distribution.

And herein lays the Achilles Heel of newspapers: their costs are all in the distribution, not the content. In fact, contrary to what newspaper executives may want you to believe, newspapers have never charged for their content – which is why the newspaper industry is, and for the foreseeable future will be, in serious trouble.

The Big Mistake
Five cents, 10 cents, 25 cents, 50 cents…whatever the cost of your daily paper, that cost goes to pay for the means of distribution. Paper, ink, presses, gasoline, tires, vending machines and so on – all means of distribution. The same goes for advertising – the more ads you can sell, the more pages you can print, the more there is to distribute.

Obviously some of this revenue goes to pay for reporters and editors, but in a purely business sense, the content they produce merely allows the company to distribute a product. And as I said, that’s how newspapers make money, by distributing their product.

This worked fine until the Internet Age. Newspapers made the mistake of looking at the Internet as simply another means of distribution, assuming that people would come to their web sites and read the news, and more importantly read the ads that helped pay for the web servers and Net access fees.

But search trumped any vision of people reading the news only at a newspaper’s web site. Now they could read the news on Google, Yahoo, MSN or via RSS feeds straight to their computer desktops. The new media companies like Google saw value in the content, not the distribution, and traditional newspapers have been trying to catch up ever since.

Some newspapers tried to charge for content, but having not placed any value there before it was difficult to make that case now (there is, however, a legitimate argument over whether news aggregators can publish copyrighted material without permission.) Niche publications did better than mass market ones, but with the free content genie out of the bottle and more and more information available from more and more sources, content itself became commoditized.

As the public turned more selective, news turned more subjective. After all, if you want people to value content, you have to make it stand out. But in trying to save their business model, newspapers have injured journalism.

Where we are Today
Television had its role in this tragedy as well. In the Golden Age of TV news, daily broadcasts were not expected to make money. News was seen as a loss leader, its existence seen as nothing less than fulfilling a sacred public trust.

But television was also a business, and as profits rose from the entertainment side of the house, pressure mounted on the news divisions to earn some of that valuable ad revenue. So television news, because it came into people’s homes for free, looked to its content to attract viewers – to entertain them if not inform.

And this is where we are now, in print, on the airwaves and online – a journalism where placing value on news content means a world of infotainment and hyperbole, of diversion and distraction.

There is plenty of good work to be sure, but how long will it last? How long will newspapers focus efforts on the “paper” part of their monikers instead of the “news” – on supporting an obsolete distribution infrastructure rather than new business models that place value on content that is truly valuable?

We don’t have the answers yet – but like any good journalist, getting to the answers starts with asking the right questions. Let’s hope there are some good journalists left to ask them.

(Originally published in Below the Fold.)