With the availability of text, video and audio, will the Internet be able to convince readers to shift from their old favorite source of news to digital sources of information.  We should remember that for this to happen, we should have the right device and an Internet connection.  We should have a PC, mobile phone, personal digital assistants (PDA), Pocket PCs and a reliable connection to be able to access the news.

So let us answer the question right away - Will the Web kill the newspaper industry?  NO.

The web is not killing print, but it sure is changing our relationship with printed information.  Nothing will ever replace the experience of sitting back with a book, newspaper, etc. and reading it where and when you want.  You can sit on a toilet with a magazine or read a paper on the bus, restaurant, beach or anywhere you want. 

Now let me ask you a question - Show me a successful news website that has no brick and mortar company backing it up, be it TV, radio or newspaper.  Most of these companies, if not all, has one.  Why?  Because of credibility. 

With the availability of blogs and podcasts, everyone can claim to have a news site.  Everybody can publish his or her news.  Everybody can claim to be a radio station, a TV network, or a newspaper online.  This is simply because news is already a commodity.  But credibility will separate a legitimate news source from the rest, and a site with a brick and mortar company will provide this.

Another factor that will be crucial here is connectivity.  According to InternetWorldStats, the Philippine population is 85,712,221, with Internet user pegged at 7,820,000--equivalent to a 9.1% penetration.  There are about 2.1% of Internet users in Asia, and the latter has an average projected 291.0% user growth for the years 2000-2005.  Cambodia has a 583.3% user growth, and Vietnam has 2,835.0 % user growth during the same years.  So if the Internet will be the new source of information, what will happen to the rest of our citizens who don't have access to the Internet and those who cannot afford the devices?

User online activity is another factor.  According to a February-April 2006 survey released by Pew Internet & American Life Project, the most popular online activities are as follows: 1. Sending e-mail; 2. Using a search engine to find information; 3. Searching for a map or driving directions; 4. Looking for health/medical info; 5. Researching a product or service before buying it/Checking the weather (tied); 6. Looking for info on a hobby or interest; 7. Getting travel info; 8. GETTING NEWS; 9. Buying a product; 10. Surfing the Web for fun.

Data released by comScore Networks's new World Metrics panel indicated the top websites that received the most unique visitors in March 2006.  They are as follows:  MSN-Microsoft Sites (538,578) Google Sites (495,788) Yahoo Sites (480,228) eBay (269,690) Time Warner Network (241,525) Amazon Sites (154,640) Wikipedia Sites (131,949) Ask Network (127,377) Adobe Sites (115,774) Lycos, Inc. (109,394) CNET Networks (107,589) Apple Computer, Inc. (98,622) Real.com Network (78,104) Monster Worldwide (74,152) and Wanadoo Sites (73,446).  The figures are in millions.  These are worldwide statistics for March.  Which of the sites indicated are purely NEWS sites?  NONE.

Let us now compare the number of circulations to unique visitors and the number of pages per copy to online pageviews.  In the Manila Bulletin's case, overall circulation per day is about 250,000; that's 7,750,000 copies per month.  Let us say only Three (3) people get to read per copy of the newspaper, that will be 23,250,000 readers per month--which can be considered unique visitors for online sites.  Let us again say that there are 50 pages for each copy of the Manila Bulletin.  Multiply that by 23,250,000 readers and that is equivalent to 1,162,500,000 pageviews a month.  Can you show me a news website that generates this many pageviews?

If print is losing readership, it's not because of the web.  It's more because of content than medium. Newspapers and television are getting hit the most as they decide that their role is to "make the news" instead of "report the news".  Sensationalizing news in order to sell should be avoided as much as possible.

We also have to remember that news content is expensive to produce, and that offering the same content across different media like the Internet could help maximize the revenue generated by the content.  Try spending the same for content and only offer it online and I can guarantee you the news site will close shop in no time.  With this in mind, the Internet and mobile devices can be viewed as an important supplementary content delivery option and revenue-generating source.

In terms of advertising spending, advertisers are pouring unprecedented amounts of money on the Internet, but they're also spending liberally on other media, like cable networks, TV, radio newspapers and outdoor advertising.

News websites offer advantages that newspapers cannot--like breaking news, in-depth analysis, search, animated banners and it's all FREE.  But this should not be viewed as a threat to traditional media, rather it should be viewed as a challenge.  Traditional media should innovate themselves and come up with new methods of reporting and/or writing stories.

Let me just say that the Internet looks promising in terms of its low barriers to entry, but any content produced on the Internet should co-exist with other offline products in order for it to be viable.  The two mediums will work best in a symbiotic relationship rather than as an either/or proposition.

I’m logging off.  God bless us all!

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Industry Update:  Oracle Phils. has a new Managing Director in the person of Mr. Francis Ong.  Mr. Ong replaces Mr. Yashi Kant, who relinquished his position without much fanfare--as quietly as he did when he assumed office.  What does the industry say about Mr. Ong's appointment? - "It's the best thing that happened to Microsoft".  Whatever that means, I will leave it up to you to decide.  Let me just say - Welcome aboard Mr. Francis Ong.

*****

Announcement: 
1. Attend the Powertips/Manila Bulletin WirelessWorld Expo 2006 on July 21-23, 2006 at Rockwell Tent Makati.  Admission is FREE.

2. Tune-in to my new radio program entitled "Hi-Tech Tayo Pinoy", aired every Saturday from 3pm to 4pm on Veritas846.

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