Wednesday, January 18, 2012

NewsRight’s potential: New content packages, niche audiences, and revenue

Look past Righthaven-related fears and you’ll see the possibilities NewsRight might afford in enabling and automating new ways of redistributing content.

First posted at Nieman Journalism Lab

When NewsRight — the Associated Press spinoff formerly known as News Licensing Group (andoriginally announced by the AP as an unnamed “rights clearinghouse”) —began to lift the veil a couple of weeks ago, most of the attention and analysis focused on “preserving the value” of news content for content owners and originators. In the first round of reports and commentary on the launch, various bloggers and analysts quickly made comparisons to Righthaven, the infamous and all-but-defunct Las Vegas outfit that pursued bloggers and aggregators for alleged copyright violations.
But most of that criticism misses an important point: Would NewsRight’s investors, all legacy news enterprises, really invest $30 million in a questionable model just to enforce copyrights? Or are they investing in a startup that has the capacity to create revenues from new, innovative ways of generating, packaging and, distributing news content?

While some of the reactions point to the former, I believe the opportunity (and NewsRight’s real intention) lies in the latter: NewsRight has the potential to create revenue for any content creator large or small, and to enable a variety of new business models around content that simply can’t fly today because there hasn’t been a clearinghouse system like it.

(As background, here at Nieman Lab in 2010, I first described the potential benefits of a news clearinghouse months before AP announced the concept. Then after AP made public their plans, I described a variety of new business models it could enable, if done right.)

First, let’s have a look at some of the critics: