Named to New Job: Senior Editor/Information Technology

As I moved out of the newsroom, I had a number of different roles/titles.  In late 1993 I moved into the newly created position of senior editor/information technology.  Among my duties were:

*Working on the planning and establishment of new ventures by PNI. These could include on-line news and advertising services; new printed, fax and audiotex news and advertising products, and CD/ROM marketing of databases and photos.

*Directing the introduction of new text-editing and pagination systems for the newsrooms.

*Leading PNI in assessing the possibilities of new technology, especially those efforts relating to the integration of newspapers, telephony, fax technology, television and computers. He will work to keep PNI abreast of all developments that could affect its interests in news-gathering and advertising and will make recommendations for PNI’s involvement in new technology in these areas.

It was an exciting opportunity to help influence a company and the digital revolution was about to take hold of the media industry. I’m indebted to John Oppedahl‘s vision and his trust.

“The consumer’s need for information is changing and so is the delivery of that information,” said John Oppedahl, PNI executive editor. “PNI is in a unique position to be Arizona’s source for news and other information regardless of how it is delivered. While we’ll still publish on newsprint, PNI needs to look at other forms of delivery, such as via computers.

 

Dual Online Strategy Memo

You need to have a memo about the plan, even though there are lots of conversations along the way.  Here’s the memo I wrote John Oppedahl (my boss), editor of The Arizona Republic.  It outlined our strategy to launch on both AOL and on the Web.  And we also had a bulletin board service for home sales.

June 2, 1995

TO:                     John Oppedahl

FROM:               Howard I. Finberg

SUBJECT:         Executive Summary/Online Plan

This is an executive summary of Phoenix Newspapers’ Online Plan:

As outlined in the “Online Opportunities” report, PNI will take a multi-platform (or multi-newsstand approach).  This will allow PNI to control where content is placed and will provide opportunities to reach readers through different services (America Online, the Internet/World Wide Web server and PNI’s existing bulletin board service). PNI will not sign an “exclusive agreement” with any online service, and hence will be free to take advantage of upcoming opportunities in 1996 and 1997 (e.g. Microsoft Network and New Century Network).

The full memo has more details about staffing and revenue expectations.  The revenue was optimistic, but realistic given the AOL bounties.

Arizona Central’s Official Launch Announcements

Even though Arizona Central (AzCentral) was live on both AOL and the Web earlier, we needed to make an official and public announcement about both services.  The Phoenix Newspapers (PNI) marketing department created an excellent package of materials, including press releases (one for each service) and screenshots of the online services.  And, of course, a FAQ about going online.  It reads quaint today, but the basic “here’s how to get online” information was essential in 1995.  The other members of the launch team were Dave Gianelli, special projects manager, Dan Hontz, online project for AzCentral on the Web, and Jeff Unger, online producer for AzCentral on AOL.

Both press releases are here: pni_annouces azcentral_12_08_1995

The FAQ about Arizona Central on AOL and on the Web are here: azcentral faq sheets_12_08_1995

Understanding the Online Future

In early 1994 I was given the task to figure out, with help of some great colleagues, the online future for Phoenix Newspapers [The Arizona Republic, the Phoenix Gazette and the Arizona Business Gazette]. Dave Gianelli and I spent a lot of time looking at different partnerships, such as America Online and Prodigy.  And we also looked at “going it alone” also known as the Web or Internet.  Remember, this was 1994.  The Web was something newer than the online services.  We created a report to help guide the company’s decision.  In the end, we urged a dual approach — partner with AOL [for the cash bounties] and go it alone, via the Web.  At the time, it was a bold and unusual strategy.

The first section is available as a PDF: PNI Online Opportunities Report 01_09_1994

 

Scanned pages of The Digital Edge's December 2000 article "Just Learning to Walk," with the Digital Futurist Consultancy website from that year

Learning to Walk: 2000 Look Back at Five Years Online

In December 2000, The Digital Edge, the online publication of the Newspaper Association of America‘s New Media Federation, marked the fifth anniversary of newspapers on the Web by asking seven veterans of the industry’s digital efforts to reflect on what they’d learned. The article, “Just Learning to Walk,” was written by Rob Runett, NAA Manager of Electronic Media Analysis. I was one of the seven, described in the piece as:

Howard I. Finberg, former vice president of Central Newspapers‘ CNI Ventures and CNI’s director of technology and information strategies. (He’s now sharing his wisdom as director of Tempe, Ariz.-based Digital Futurist Consultancy).

The others were Lisa DeSisto of boston.com, Todd Engdahl of DenverPost.com, John Granatino of Belo Interactive, Chris Jennewein of KnightRidder.com, Joe Michaud of MaineToday.com and Chris Morrill of the Hartford Courant’s ctnow.com.

Runett’s framing was that five years is nothing in the life of a medium, but felt like several lifetimes to the people who lived it. The questions ranged from proudest moment to biggest regret, and the answers were candid in a way industry panels rarely are.

My toughest hurdle was not technology. It was classified advertising:

The hardest challenge or hurdle we faced was getting the classified department to understand that that the company needed to move quickly or we’ll lose in the online marketplace. This was early in the development of the site [azcentral.com] and all we really knew was that our readers/customers wanted classifieds. And they wanted them for free, something that went to the opposite of the teachings at classified managers school. We didn’t have a business model, just a business “gut feeling” in 1996.

On business models, I argued that it was far too early to declare winners — and that interactive media was something genuinely new, not simply print extended:

Heck, we aren’t even walking yet and you want us to declare a college major?

Interactive, a.k.a. online, media truly is a new form of communication; it is less of an extension of our existing businesses or business models. Hey, that doesn’t mean we can’t learn from our forefathers. Interactive media should share the best traits of its “parents” and then move out of the house quickly.

Asked what I would undo, I picked the pace of the Web build-out at azcentral — and the pull of an easier revenue stream:

I resisted the temptation and probably should have moved quicker to have the team build out more Web features and spent fewer resources on AOL. But AOL was sending us money every month.

The “most important lesson in two lines or less” question produced the best writing in the piece. Morrill: “The user comes first. The user comes first. The user comes first.” Engdahl: “This isn’t a sprint, it’s a marathon.” Jennewein reminded everyone that traffic, advertising and low costs are Business 101, “but many of us lost sight of this during the dot-com boom.” I failed to follow the rules:

The basics, however, still matter: Quality. Accuracy. Fairness. Fun. Service. To do less is to fail the customer. I have also learned that I probably could never sum up in “two lines or less.”

The same December issue carried a column by New Media Federation President Gordon Borrell, vice president/new media at Landmark Communications, titled “Recommit or Pull the Plug.” Borrell noted that the Arizona Republic had cut 28 new-media positions in November and that Tribune Interactive had terminated 24 online positions in October — and listed me among those on the conference speaking circuit who had found themselves jobless since early summer. He quoted me on how I read the shakeout:

During the next year, the strong will get stronger; the weak will struggle. Those companies that recognize that the Internet is a new medium and not an extension of existing print models will do the best… What dot-com and traditional media businesses need to do is roll up their sleeves and get to work. No one said it would be easy — that’s why they call it work.

Borrell closed his column by agreeing: the 1990s were the years of experimentation and innovation, and what lay ahead was the real work.

Scanned along with these pages is a snapshot of the Digital Futurist Consultancy site as it existed in December 2000 — the biography, the scouting reports from DRUPA and the Jupiter conference, the Arizona Republic “learning journey,” and the 2020 Southwest Republic prototype done for the American Press Institute. Also included is the NAA press release announcing that year’s Digital Edge Awards, which named me the New Media Federation’s New Media Pioneer for 2000.

Reading these predictions now is instructive. DeSisto’s five-year forecast for boston.com included being on Palms, on cell phones and streaming headlines to LCD screens on taxicab roofs — and, she added, the Red Sox winning the World Series. She was right about the Red Sox in 2004, and right about the phones, though not in the way anyone in 2000 expected. Jennewein predicted that newspapers would dominate the local Internet space “with the specter of competition from dot-com startups long dissipated.” That one didn’t age as well.

What holds up, I think, is the thing I kept insisting on: that this was a new medium, not an extension of print. Twenty-five years later, that argument is still being relitigated in newsrooms — and the industry is still, in some important ways, just learning to walk. For others, they have been stopped in their tracks.

Typed pages from a 1996 Arizona Central briefing report for Phoenix Newspapers managers, with talking points and traffic charts

Making the Case for Arizona Central, 1996

This is a report I put together in August 1996 for managers at Phoenix Newspapers who didn’t quite understand what “going online” meant — or where it was headed. Rather than argue in the hallway, I built a briefing book: talking points, traffic charts, a project list, revenue and expense projections, and a stack of clippings from the trade and business press so no one had to take my word for the direction of the market.

The first section is organized around questions from Chip Weil, then President and CEO of Central Newspapers, with my answers filled in:

I’ve taken some of Chip Weil’s questions [the italics] and added some general answers and/or talking points that could be discussed at the meeting. Marilyn Tanious was helpful regarding some key points that should be discussed.

Most of the questions were about classified advertising — real estate and employment — which was where the money was and where the threat was. The report notes on-going discussions with the area’s multiple listing service [ARMLS] for complete property-for-sale data, work on getting employment display advertising online, more “Virtual Job Fairs” starting in September, an outside company [Moore Data] on a rentals database, and an automotive push with the AIG group and with Bill Luke, which wanted to put its used-car inventory online.

Asked about strategy over the next 24 months, I listed four areas: consumer acceptance, broadband delivery, directory publishing and transactions. Longer term, commerce systems and agency relationships — shared “ad space” with content partners. PAFET, the newspaper technology consortium, gets credit for access to experiences that would have been hard to duplicate, along with the strategic alliances with InfoSeek and Pointcast. On the money: about $2.3 million being spent CNI-wide, with a projected 10% expense increase for 1997 and capital spending estimated at $150,000.

The overview section reprints a piece I’d written for the first edition of an in-house newsletter, the Cyber Chronicles, aimed at a general newsroom audience:

While using a 17th Century technology — ink on paper — to communicate what’s happening with PNI’s online efforts may seem strange, it helps make the point that the newspaper isn’t going away. Frankly, there are just some things you can do better on newsprint.

Arizona Central ran two editions — one on the Web, one on America Online — and a good part of the internal confusion was about why we bothered with both. The answer in the report is blunt:

We are often asked, “Why have any content on AOL?” The reason is simple: It reaches a different audience than the Internet.

AOL was then the world’s largest commercial online service with six million customers, sharing market revenue with PNI and paying bounties for each customer we signed up with a special Arizona Central disk. The distinction I drew was between “the technically advanced” — comfortable with IP addresses and hunting on the Web — and “the technically evolving,” who preferred the safer environment of a commercial service.

The traffic charts are a reminder of how crude measurement was. Web numbers were “hits,” with a note that our pages used only three or four image files while boston.com used 19 on its home page — so our hit counts looked small by comparison. The big spike came from putting employment liners online in late June; the flattening was blamed on the Olympic games, a drop seen across AOL as well. AOL, at least, could count actual paid entries into Arizona Central. Median age was 43.7 on AOL and 43.5 on the Web, and the daypart charts show AOL peaking at 8 p.m. while Web use tracked working hours — traffic from major Valley employers and corporate sites around the country.

The project list is the part I still enjoy: movie times, Living Here, Meet Your Match, calendars formatted for database searching, Prep Stats, Holiday Lights with the Downtown Association, and a SAVE system to search and purchase past stories. And the honest bottom line, stated up front:

While it is unlikely that online will be profitable this or next year, revenue is running ahead of projections.

Thirty years on, what strikes me is how much of the argument was about audience rather than technology — where readers actually were, and the willingness to publish in two places at once to reach them. That part of the job hasn’t changed at all.

Phoenix Newspapers press release dated January 20, 1995, announcing the CCI pagination system contract

Announcing the CCI Pagination at Phoenix Newspapers

This is the press release Phoenix Newspapers, Inc. issued on January 20, 1995, announcing that PNI had signed with Computer Composition International for a new editorial pagination system. I was senior editor/information technology at the time, and this was the project I led in Phoenix. I also helped other newspapers think through database publishing.

The point I wanted to make in the announcement wasn’t about replacing aging equipment. It was about what a publishing database could do beyond the printed page.

“This is not just the replacement of a pagination system,” said Howard Finberg, senior editor/information technology. “This is a next-wave system that not only delivers electronic page layout but also database publishing. It will give us the flexibility to respond quickly to the changing ways information can be delivered to our customers.”

And on where that information might go:

“In addition to the newspapers’ traditional design needs for ink on paper, we will be able to use the information that pours into the newspapers daily in a variety of ways online, fax, audiotext, CD ROM and eventually the technologies that will be developed in someone’s garage,” he said.

The garage line was a bit of a joke at the time, since Apple Computers started in a garage. Looking back from 2026, it holds up better than the list that preceded it u2014 fax and audiotext are gone, CD ROM is a museum piece, and the things built in garages turned out to be the whole story.

PNI was not new to pagination. The release notes the newspapers began using Information International Inc. (triple-i) technology in 1985 and were completely paginated in 1987, with The Republic, The Gazette and the Arizona Business Gazette paginating roughly 2,000 pages a week. That history mattered: the CCI installation had to coexist with the triple-i pagesetters at the Deer Valley and Mesa production centers and with the triple-i scanners.

What strikes me rereading it is how much of the release is given over to the people who would actually use the system. Johnny Thoegersen of CCI made the WYSIWYG argument u2014 that the same designer could do more pages in the same amount of time, thanks to templates and automatic features u2014 and described the database as a central information repository accessible across departments. But the better quotes came from inside the building.

Dave Seibert, a pagination project team leader at PNI, said the CCI system “will let us pull up data and link photos easily. And the designers won’t have to work in a cavelike, low-light atmosphere anymore. They’ll be able to see a headline in color in their screens, something they can’t do now.”

Jenny Ignaszewski, a Gazette page designer, is looking forward to the new system because “it will make it easier to do wraps, illustrations and typography. We’ll have the capability of doing feature page design more easily under deadline.”

Mike Wilson, project team leader from Information Services, called CCI “the best system on the market today” and flagged the real engineering challenge u2014 the interfaces back to the existing triple-i equipment. The CCI server was to live in the computer room on the third floor of the Phoenix Center. Where the page design system itself would go was, as of the announcement, still undecided.

Installation was scheduled to begin that summer, with the first phase completed in late 1995.

One last artifact worth noting: the contact block at the bottom lists a fax number and an e-mail address, hfinberg@pni.com. In early 1995, listing both was still a hedge.

Typed 1993 internal memo to Phoenix Newspapers executive John Oppedahl outlining questions for a meeting with America Online

An Early Look at America Online

This is a short memo I wrote in February 1993 to John Oppedahl, then an executive at Phoenix Newspapers, Inc., about a meeting I had scheduled with America Online. At the time, AOL was signing up newspapers to put content into its database, and I wanted to understand what such a partnership would mean for PNI before anyone committed to anything.

John, attached is a package of information about America Online, the computer service company. Of specific importance are the pieces that relate to linking newspapers to their database.

The meeting was set for Thursday, Feb. 11, with Bob Smith, Manager, Business Development for America Online. The questions I planned to ask were the basic ones any newspaper should have been asking in 1993 — and, honestly, the ones many didn’t ask carefully enough:

* How the relationships work between AOL and the Chicago Tribune and San Jose Mercury News?

* What would be our responsibilities to make this project successful and what is expected of PNI in regards to equipment, staff, marketing, etc.

* What type of material would be expected from PNI on the computer database?

* Do we share in access time by all users? Or, do we receive royalties from only those users we sign on ourselves?

That last question — who gets paid, and for whose audience — turned out to be the one the industry spent the next decade arguing about.

I was careful to keep expectations modest:

I’m sure there will be other areas that need to be discussed before we go that first step with this project. Smith and I are at an ‘information sharing’ stage only.

The memo closes with the smallest of logistical notes: I would bring Smith by Oppedahl’s office at 11 a.m. Thursday.

Postscript: Phoenix Newspapers did sign an agreement with America Online.