Google, Data, and Owning the Golf Club
March 11, 2010
I remember when I first interviewed with Barry Bingham Jr., then the boss of the Courier Journal & Louisville Times Co. The newspaper was a monopoly and it had a document from a government official saying it was okay for us to own the morning and evening newspaper, the top TV station, the top AM and FM station, and to have other information related businesses such as high volume printing, door knob ad packet hanging, a ham company, and, oh, yes, an electronic information publishing company. That unit was also number one in revenue per record on the big commercial online systems.
One of my recollections of that interview was my question about revenue and profits. I spoke with him in 1980, so my memory of that meeting in his sunny office looking down Broadway in Louisville from the Courier Journal’s main building was along the lines: “Don’t worry. When people spend money for advertising in this area, we get most of it.” He went on to point out that he would subsidize my riding the bus to work because after working in New York and Washington DC, I was not an automobile buff. He also pointed out that I was expected to volunteer in various civic groups, which for me included helping with youth soccer and contributing to the Chamber of Commerce’s first “Advanced Technology Council.” Yep, 30 years ago I thought Louisville was an advanced technology center. Go figure.
After that initial meeting, Mr. Bingham and I became friends. When he had a computer problem, he would come over to my house and we would fix his Mac. After the sale of the Courier to Gannett, he and I would have lunch at least once a year. I had to make sure I had my wallet because Mr. Bingham would often arrive in his beat up Datsun without any money even though he worth was in the big money.
At one of those lunches, he made a comment about owning the country club. My memory locked on to this analogy, and I want to share it before I suggest you spend some time working through a Google presentation about newspapers and advertising. Here’s the country club story. His view was that newspapers were the owners of the country club. The newspapers decided what to emphasize and in the case of the Courier Journal what issues to push. The Courier Journal, when I joined as an officer of the company, was ranked on a couple of lists as among the Top 25 news papers * in the world *. The Courier Journal employee ID pass was a sure fire ticket to many events. When I wanted carpet samples from the now defunct Stewart’s Department Store, I showed my Courier Journal ID and was able to haul off a dozen carpet samples. The salesperson told me, “I will come by your house, answer questions, and pick up the samples.” Now that’s power. In New York, a carpet sample to go required a driver’s license, a credit card, and a one page form. In Louisville, the Courier Journal was the owner of the country club, employees were members, and the influence of the company, its employee practices, and its reputation in the community was remarkable. I joined the Courier Journal after a stint at Booz, Allen & Hamilton and (if you can believe this), the Courier Journal had a bigger stick that the venerable firm founded in 1917 by George Booz. Amazing. What’s become of the Courier Journal? It has been Gannettized, and I don’t recall the paper’s receiving any big writing awards. Most of the special sections are recycled wire service stories and photo essays showing people with shoes or Derby hats.
Now navigate to Scribd and download Google Newspaper Economics: Online and Offline by Google’s chief economist Hal Varian. After you work through the data, ask yourself these questions:
- Who owns the country club? Traditional newspapers or the “flat” world of Internet content?
- Who are the caddies in the age of the “digital Gutenberg”? Internet companies or newspaper publishers?
- What must newspapers to do to regain their revenue flows?
- What can newspapers do to regain their commanding position in the information food chain?
I have my answers. Please, post yours in the comments section of this Web log. I won’t grade your responses, but I will look at them and see if I have missed anything in Dr. Varian’s data centric description of a business sector struggling to find a revenue stream.
Stephen E Arnold, March 11, 2010
No one paid me to write this. Since the presentation was given for an FTC group, I will just say, “Freebie.”
Comments
3 Responses to “Google, Data, and Owning the Golf Club”
-
- Subscribe to Beyond Search
Feature archive
News archive
-
when choosing golf clubs, i always prefer to use an iron:,-
It had been awesome to study through your publish. I really liked the short while which i used reading it and needed to leave a comment to express that….Kind regards
That’s a great question. Having a furniture store is a tough business. I’d like to branch out into modern furniture but at the moment it’s pretty much rustic furniture. Along with that, getting to the point that I have a chain would be great.