The Washington Post aims to become a provider of software for other news organizations, to develop new revenue and raise its profile as a technology company.
The American journal, which accelerated the search for digital media revenues since Jeff Bezos, Amazon’s director, bought last year at 250 million dollars (mdd), receives offers to license the software developed to feed their website. Potential customers may include a network of local and regional US newspapers that were recently launched and whose subscribers will receive free access to digital products Post .
For the newspaper, ” affiliate program is not just about the content, also it is that we offer technological solutions, “said Shailesh Prakash, director of information daily.
Student Newspaper at Columbia, Yale and Maryland already use content management software Post in a test to see how they can open up to other professional services news.
The development of a licensing operation would be step in the efforts of the Post to generate profits while digital print operation is reduced. Now there is also the habits of media consumption and the pressure of new competitors require news organizations to invest in strengthening their technology.
The Post faces great challenges. Standard & amp; Poor’s estimated in September that American newspapers and magazines will drop their earnings before interest, taxes, depreciation and amortization (Ebitda) in percentages of between 5 and 10 percent at least the end of 2015. The income will print advertising more falls, said S & amp;. P, and “digital strategy alone will not stop the total fall in Ebitda publishers, which should increase subscription prices and cover to try to stabilize incomes”
“In the short and long term, provide print money until eventually digital becomes sustainable,” said Steve Hills, president of Washington Post . “In the long run, the fight will be completely digital. We took the long run by Jeff Bezos,” he said.
In the past 16 months, Bezos pumped money into the Post . He hired 100 people for writing, to have a net increase of about 60 staff and launched blogs and digital products which include an application Fire Tablet Amazon offering morning and evening editions. The publisher no longer publishes its financial information, but executives say traffic growth as evidence that the strategy works. Unique visitors increased 62 percent, to reach 48 million 800 thousand in November compared with figures from a year ago, according to ComScore.
But is the technology side of the business which shows signs more clear influence of the founder of Amazon. The Post hired 20 engineers in 2014, and now employs 225, divided among developers working in their digital initiatives and more traditional information technology functions, such as printing plant resources and departments human, sales and advertising.
Prakash said, “followed the example of Amazon” in software development to suit the needs of Post and can be opened to other users. Amazon Web Services, which offers cloud computing customers ranging from the CIA to
Netflix, he became the division’s fastest growing e-commerce company.
“Technology is the heart of our business, “Prakash said about pushing more self-developed software. “You could not outsource the business plan or plant revenues. Why outsource technology?
Attempts to renew the image of news organizations to digital technology companies found a mixed reaction. In The New Republic , the centennial political magazine, resigned half its staff this month in protest at the way his owner, Chris Hughes, co-founder of Facebook, managed the launch of the new strategy focused on digital.
Martin Baron, editor of Post , joined executives from the commercial side of the business in the description of the company as “an organization’s technology” from Bezos bought it. “Understand that our technology has to be at the forefront of what we do,” he said.
Bezos investment referred to as giving to Post a ‘track “to experimentation, release the pressures of quarterly financial scrutiny. But the task is still create a sustainable model for creating and selling journalism.
“We are a business. We were not bought to handle a (organization) charity, “Baron said.” The tracks do not follow forever. We hope to take off. We are in terms of traffic. I hope that also means dollars at some point. “
BEZOS ATTRACTS SOFTWARE ENGINEERS
The Washington Post builds its engineering team under its previous owner, Graham, whose patriarch, Donald Graham, family sits on the board of directors of Facebook. But the association with Bezos strengthened the capacity of the newspaper to attract talented developers, according to Prakash.
“As an engineer, Amazon is a mecca for us,” Prakash, who is part of the company since 2011 and previously worked at Microsoft and Netscape said. “That Jeff Bezos we present to me and my people to people and right technology is a competitive advantage that attempt to use much. “
However, the contracts have a cost. The average salary for a computer engineer in Washington DC is approximately $ 78,000, according to the recruitment site, Glassdoor, compared to $ 52,000 for a journalist.
Technology companies often also offer stock options. “We have the capital to deliver,” Prakash said. To compete, the Post opened a design and development office in New York. Another remote place in Virginia, not far from the headquarters of the Washington Post, but near a growing community of startups, will be operational in March.
“Not only fighting for journalists. I show that we are not a company journalism really are a company partially technological innovation that builds material instead of managing and buy it, “said Prakash
