Since newspapers and media companies represent a substantial base of clients for NewsGator's Media & Consumer products, and since nearly every day recently we hear of another newspaper either on its death bed, or being shuttered all together -- along with some seemingly sounding the death knell of the entire industry -- I stumbled along an article today that I think is highly pertinent to the discussion of this topic.

A this year's SXSW, author Steven Johnson said, "I am bullish on the future of news.  I am not bullish on what is happening in the newspaper industry; it is ugly and it is going to get uglier. Great journalists are going to lose their jobs and cities are going to lose their newspapers."

However, Johnson makes sure to say that he believes that "panic that newspapers are going to disappear as businesses," is unfounded.  He adds, "then there is panic that crucial information is going to disappear along with them. We spend so much time figuring out how to keep the old model on life support that we don't figure out how to build the new one."  This serves no purpose either, according to Johnson.

To read more about what he has to say on this compelling topic, and some of his predictions for the future of the industry, check out the full AFP article here.

More importantly, perhaps, check out the full text of the speech that he gave at SXSW, available on his website.

Today I stumbled upon a great commentary piece, written by Donna Barrett and Randy Siegel, that appears in Editor & Publisher.  Since newspapers represent a substantial base of clients for NewsGator's Media & Consumer products, and since nearly every day recently we hear of another newspaper either on its death bed, or being shuttered all together -- along with some seemingly sounding the death knell of the entire industry -- I think what the authors have to say here is hugely relevant in the current climate.  The premise of their article is this,

"Sure, newspaper companies face serious challenges. But we also have serious opportunities to re-engineer ourselves as quality content creators for local print and online audiences that advertisers still desire."

The authors go on to say that,

"well-run newspaper companies will succeed by fighting hard, experimenting and evolving while tuning out those armchair critics who revel in the thought of a society without newspapers or news."

But what most caught my eye is one of their most important suggestions for how they believe newspapers can survive, and even thrive, in the future:

"Newspapers can increase their revenues and reach by investing in more content creation for different audiences, not less. The more compelling articles and information a newspaper and its website can offer, the longer readers and online users will be engaged. The longer consumers are engaged, the more exposure they will have to ads in print and online. The more attention the ads receive, the better the advertisers’ responses typically will be and the more those ads will be worth."

This description, almost uncannily, describes precisely what we're doing for media companies here at NewsGator!

First, by widgetizing content you are, indeed "investing in more content creation" and making this content highly portable across the entire social web.  Also, since widgets have been shown to enhance engagement rates, time on site, brand equity, etc. this fits right into the authors' point that the longer the consumers are engaged, then the more exposure they will have to ads -- which in turn helps newspapers' bottom lines.  And every single NewsGator widget is "advertisable."  In fact, we just announced our highly sophisticated Ad Burner optimization program that can seamlessly do just that.

Finally, two other product offerings from NewsGator also enhance content creation as well as reader engagement: our related content widgets, as well as our branded iPhone applications based off NewsGator's highly successful NetNewsWire application.

I encourage you to read their entire article here, but my take-away message here is that majority of the pertinent recommendations the authors make here in terms of newspapers enhancing & increasing content, enhancing readers' engagement with that content (which leads to higher ad revenue) are exactly what all of our offerings -- whether it be regular widgets, related content widgets, branded iPhone applications, our AdBurner program, or our data service offerings -- are designed to do.  There may be a down economy, and newspapers and media companies are no doubt struggling, but that just makes NewsGator products all the more important.