PLEASE NOTE :- TABLES 3.1 and 3.2 have been removed from the electronic version of this thesis for copyright reasons. A complete version is available in print from the University of Ballarat Library. WEB BASED REGIONAL NEWSPAPERS: THE ROLE OF CONTENT A thesis presented by Ian J. Knox Ass.Dip.FM., Dip.Teach., Grad.Dip.Ag. In fulfilment of the requirements for the degree of Master of Business University of Ballarat School of Business P.O. Box 663 University Drive, Mount Helen Ballarat, Victoria 3353 Australia Submitted in March 2002 ABSTRACT The phenomenon and acceptance of electronic publishing has proliferated in the last five years due to the expansion in the use of the World Wide Web in the general community. The initial fears that newspapers would be decimated by the introduction of this technology have been proven groundless, but despite a high web presence by newspapers world wide, profitable models of cyber papers are elusive. In an online environment traditional relationships between newspaper advertising and editorial may not stand. Despite the considerable body of published literature concerning the movement of print newspapers to an online environment, little was found concerning online content. A need to re-evaluate what content and functions are considered to be desirable by print readers, in an online environment was identified as the main objective of this research. Evaluation the of user attitudes to web based newspapers provides a foundation for future research into areas such as developing effective models for profitable online newspapers. To achieve this objective, the research tools used were a content analysis, an online newspaper user survey and newspaper management personal interviews. The study looked at Victorian regional daily newspapers that also had online versions. By focussing on the regional newspapers, meaningful comparisons could be made between content, staff attitudes and readership interests. The content analysis measured the quantum and nature of the content of the print and online versions of the regional dailies during a one week period. This provided a measure of the type and source of the articles included both in print and online. Newspaper editorial staff interviews contributed a personalised view of content priorities, which was then contrasted with a web based questionnaire which measured user requirements in relation to content and interactivity. It was found from the survey that content alone would not provide a sufficient basis to build a profitable online regional newspaper site. The findings were analysed in relation to the literature, newspaper site content and editorial staff interviews. Despite regularly accessing online newspaper sites, it was found that users are unwilling to pay for the experience. Users indicated a desire for a higher level of interactivity, in addition to the content, which is currently provided, by online regional newspapers. Evaluation of user attitudes to web based newspapers provides a foundation for future research into the development of effective models for profitable online newspapers. ii STATEMENT OF AUTHORSHIP Except where explicit reference is made in the text of the thesis, this thesis contains no material published elsewhere or extracted in whole or in part from a thesis by which I have qualified for or been awarded another degree or diploma. No other person's work has been relied upon or used without due acknowledgement in the main text and bibliography of the thesis. Ian Knox 26/03/02 iii TABLE OF CONTENTS Abstract ii Statement of Authorship iii List of Figures x List of Tables xii Acknowledgements xiii CHAPTER 1. REGIONAL NEWSPAPERS ONLINE - THREAT OR OPPORTUNITY? 1 1.1 Background 1 1.2 The Present Study 2 1.3 The Research Questions 3 1.4 Justification 4 1.5 Research Outline 5 CHAPTER 2. REVIEW OF LITERATURE 7 2.1 Introduction 7 2.2 The Role of Regional Newspapers 9 2.2.1 Overview 9 2.2.2 Local vs Global 10 2.2.3 Regional Newspaper Circulation Trends 11 2.3 Internet Use and Subscription Growth in Rural and Regional Areas 11 2.3.1 Australian's use of the Internet 11 2.3.2 Obstacles to Rural Connectivity 12 2.3.3 Incentive for Rural Connectivity 12 iv 2.4 Newspaper "Content" 13 2.4.1 Systematic Analysis of Newspaper Content 13 2.4.2 Threat Posed to the Traditional News/Advertising Relationship 14 2.4.3 Fragmenting the Market 15 2.4.4 Content May Not Be King 15 2.4.5 Distinction Between Content and Point-to-Point Blurred 15 2.4.6 Organisational Alliances 16 2.4.7 Convergence of Content and Point-to-Point Broadcasts 17 2.4.8 Change from Egalitarian Content 18 2.5 Trust 18 2.5.1 The Nature of News 18 2.5.2 Marriage of Convenience 19 2.5.3 Comfortable with Old Media 19 2.5.4 Trust Decisions Impact Harder on Internet News Consumption 20 2.5.5 Opinion Pollution 20 2.6 Traditional Media Distribution Methods 21 2.7 Corporate Ownership or Community? 22 2.7.1 "Growing Communities" 22 2.8 Charging for Content 23 2.9 Journalists and the Internet 24 2.9.1 Print Journalism Changes 24 2.9.2 Journalists use of the Internet 24 2.10 Attracting Online Readers 26 2.10.1 Content - Getting Users Involved 26 2.10.2 Stimulating the Provision of Content 27 2.11 Threat to Paper Based Advertising 27 2.11.1 Traditional Loyalties 28 2.12 Business Strategy Models 28 2.12.1 Web Competitors 29 2.12.2 Reasons for Online Presence 29 2.12.3 Free Services 30 2.12.4 Commercial Models 30 2.12.5 Fundamental Shift in v Newspaper Economics 31 2.12.6 Total Service Model 31 2.12.7 Sex Site Lessons 32 2.12.8 Free Online Under Threat 33 2.13 Conclusion 34 CHAPTER 3. RESEARCH METHODOLOGY 35 3.1 Introduction 35 3.2 Research Paradigm 36 3.2.1 Choice of Research Paradigm 37 3.2.2 Deduction or Induction 40 3.3 The Research Design and Techniques 40 3.4 Data Collection Techniques 41 3.5 Measurement Technique Employed 44 3.5.1 Literature Review 44 3.5.2 Newspaper Content Analysis 45 3.5.3 Newspaper Editorial Staff Interviews 47 3.5.4 Staff Interview Protocol 47 3.5.5 Readership Questionnaire 48 3.5.6 Questionnaire Protocol 49 3.6 Questionnaire Design 49 3.6.1 Sample Selection 51 3.7 Strengths and Limitations of the Research 52 3.7.1 Reliability and Internal Validity 52 3.8 Data Analysis 53 3.9 Generalisability 53 3.10 Conclusion 54 CHAPTER 4. CONTENT ANALYSIS 55 4.1 Introduction 55 4.2 Newspapers Analysed 56 4.3 Content Analysis 57 vi 4.3.1 Topic 57 4.3.2 Region 58 4.4 Print Physical Characteristics 58 4.5 Online Physical Characteristics 59 4.5.1 The Courier 60 4.5.2 The Shepparton News 62 4.5.3 The Standard 63 4.5.4 The Border Mail 66 4.5.5 Geelong Advertiser 68 4.5.6 Bendigo Advertiser 70 4.6 Results of Content Analysis 71 4.6.1 Print Content 71 4.6.2 Online Content 72 4.6.3 Source of Articles 74 4.7 Conclusion 80 CHAPTER 5. REGIONAL NEWSPAPER INTERVIEWS 81 5.1 Introduction 81 5.2 Interview Design and Method 82 5.3 The Respondents 82 5.4 Interview Themes and Findings 84 5.4.1 Why Is Your Newspaper Online? 84 5.4.2 Relationship with the Parent Print Newspaper 85 5.4.3 When Did The Newspaper Go Online? 86 5.4.4 Web Strategies 87 5.4.5 Financial Viability of Online Publishing 89 5.4.6 Current State of the Newspaper Industry 92 5.4.7 Readership/Online User Market Intelligence 92 5.4.8 Changes to Layout and Content in the Past 12 Months 93 5.4.9 Content Differences 94 5.4.10 Online Traffic 96 5.4.11 Interactivity 97 5.4.12 Relationship Between Print/Online Publications 97 5.5 Conclusion 98 vii CHAPTER 6. ATTITUDES TO WEB BASED REGIONAL NEWSPAPERS 100 6.1 Introduction 100 6.2 Questionnaire Design 100 6.3 Questionnaire Analysis 102 6.3.1 Sample Overview 102 6.3.2 Newspaper Readership 103 6.3.3 Internet Use and Access 103 6.3.4 Preferred Online Content 104 6.3.5 Desired Level of Interactivity 105 6.3.6 Branding and Potential for Print Replacement 106 6.3.7 Respondent Demographics 107 6.4 Factors Differentiating Regular and Infrequent Users 107 6.4.1 Identifying Homogenous User Groups 107 6.4.2 Print and Online readership 108 6.4.3 Content Preferences 108 6.4.4 Use of the Internet 110 6.4.5 The Defining Difference B Level of Interactivity 111 6.4.6 User Group Demographic Differences 113 6.5 Respondent Comments 113 6.5.1 Content Requests 114 6.5.2 Additional Services 114 6.5.3 Interactivity 115 6.6 Conclusion 115 CHAPTER 7. CONCLUSIONS AND RECOMMENDATIONS 117 7.1 Introduction 118 7.2 Review 118 7.2.1 The Research Questions 120 7.3 The Future of Regional Newspapers 121 7.4 The Role of Content 121 viii 7.5 Unfulfilled Promises 122 7.6 Online Content vs User Requirements 123 7.7 Implications 124 7.8 Limitations of the Study 125 7.9 Future Research 126 7.10 Contribution 127 7.11 Future Directions for Online Newspapers 127 7.12 Conclusion 128 REFERENCES 130 APPENDICES 137 ix LIST of FIGURES 3.1 Features of the Two Paradigms 38 3.2 Possible Methodological Approaches 39 4.1 Weekly Circulation Figures of the Regional Daily Newspapers 59 4.2 The Courier 60 4.3 Shepparton News 62 4.4 The Standard 64 4.5 TheGreatSouthWest Regional Portal 65 4.6 The Border Mail 67 4.7 The Geelong Advertiser 68 4.8 Geelonginfo 69 4.9 Bendigo Advertiser 70 4.10 Print Content by Topic Category 14/05/01 B 19/05/01 (3,800 Articles) 73 4.11 Print Content by Topic Category Percentage 14/05/01 B 19/05/01 73 4.12 Online Content by Topic Category 14/05/01 B 19/05/01 (677 Articles) 75 4.13 Online Content by Percentage in Each Topic Category 14/05/01 B 19/05/01 75 4.14 >Localised Content= 76 4.15 Print Content By Region (Number) 14/05/01- 19/05/01 (3,800 Articles) 78 4.16 Print Content By Region (Percentage) 14/05/01- 19/05/01 (3,800