Privacy and Injunctions - Evidence - Parliament

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Martin Clarke, publisher, Mail Online, Edward Roussel, Digital Editor, Telegraph Media Group, and Philip Webster, editor, Times Online—Oral evidence (QQ 1306–1383) website from 1 till 7, and then the London office takes over again. All the news in the Far East, some of the very biggest stories of the past year, have happened in the middle of the night. I am thinking of Osama bin Laden—those kinds of stories. The website is updated through the day, and of course it also has a lot of things that you cannot put in the paper. The obvious thing I am talking about is videos. We have a multimedia department that is churning out videos throughout the day and night. They and things like interactive graphics cannot go in the paper, but they can appear on the website. Edward Roussel: I would add to what Philip said that a newspaper and a website are fundamentally different editorial products. For a website, in addition to old-fashioned text, the future is going to be at least three things. One is live news, that is the 24/7 coverage of news. The second is the use of multimedia, so video, picture galleries and graphics. The third is social media, in other words how you engage your readers with interactive tools such as polling and rating, and how you give your readers the facility to share your content across the web using tools such as Twitter and Facebook. In our case we have the same brand values for the website as we do for the newspaper, but we also have a different set of tools and techniques to make that narrative compelling online. Philip Webster: You were talking about profitability, and I should add that we have reached the point where the revenue we receive from advertising and subscriptions now outstrips the revenue we used to have when we were a free site with 21-million-odd people coming in each month. We have now reached a point where the revenue from subscriptions, allied with an admittedly lower level of advertising than we had before, takes us past that point, so it is becoming a more and more viable proposition. Q1515 Ms Stuart: Is it the same for The Mail? Martin Clarke: We are in a completely different market from The Times, because obviously The Times have chosen to put up a paywall, and you put your finger on it in the question when you said the ad yields are much lower online than they are in print. You really have a choice; you can either try to stay quite small and charge for access the way The Financial Times, The Times and The Wall Street Journal have, or you can try to be big, and be very big and make money by staying free. On the one hand, the yields are much lower, but on the other we now have access to a much bigger market—the entire English-speaking world. When we looked at the numbers, the same as The Times did, we came to a different conclusion and decided that we might make a bit of money by putting up a paywall, but we thought there was more growth potential in the longer term by remaining free and expanding, getting as big as we can not just in the UK but around the rest of the world. We now have a third of our visitors from the States, another third from the rest of the world and only about a third in the UK. In the online world they use the phrase “scale”, and that is our model; a scale model to become as big as we can. We may not make very much money for each ad that we serve, but if you serve enough of them there is a lot of money there. Facebook is not one of the most highly valued companies in the world for no reason. Obviously there is money online, providing you can reach a certain scale, so we have chosen an entirely different business model from The Times. That was not just financial diktat. Newspapers have never been able to export themselves beyond Britain. We can only sell papers where we can print them, and we have small satellite operations in Spain and Florida and places like that, but they are relatively 554
Martin Clarke, publisher, Mail Online, Edward Roussel, Digital Editor, Telegraph Media Group, and Philip Webster, editor, Times Online—Oral evidence (QQ 1306–1383) minor. The digital world allows you to sell your wares anywhere in the world, and what we have discovered is that there is a big appetite around the world—anywhere they can read English—for not just the Mail Online but for The Telegraph, The Sun and all the other British websites. Those that are free have big overseas readerships. The other factor that came into our thinking was we could not just look at what our competition in what we used to call Fleet Street were doing; we had to look at our bigger competition online for news at the big portals like Microsoft and Yahoo!, AOL—or now AOL HuffPo. Of course, none of them were ever going to be not free, so if we were going to compete on a level playing field with them, we had to be free, but we also had to be big, and that was the path we chose. Q1516 Ms Stuart: But is your website ahead of the printed copy or not? Martin Clarke: Yes, largely. Q1517 Ms Stuart: By 8 o’clock in the morning you have your hard copy and the online will have to catch up with it. Martin Clarke: Yes, but the content of the paper would go up between 10 and midnight. By midnight it should all be online. We edit it ourselves; we are driven by our own editorial imperatives, which may not be the same as the paper. Obviously during the day anything that happens once the paper has gone to bed, that just goes straight online— breaking news or news that the paper may not ever be interested in. We do a lot more science, more politics, a lot more foreign news, and obviously a lot more showbiz. We run under our own steam. Probably 60% to 70% of content that we put online does not start with the paper; it starts with our own online journalists. The paper may do a version of the same story later in the day, but probably the first version will be done online. What we take from the paper are the exclusive news stories, and obviously the paper does the contentious, investigative, difficult stories, if you like, that obviously you cannot do on a breaking news service. Exclusive features, exclusive columnists and anything that is really exclusive would start life in the paper, and the breaking news, what we call all-round news, would be on the website first. Q1518 George Eustice: How much of an internal tension is there in your organisations between breaking news as it happens and stories as you get them, and saving something back for your print edition so you have an exclusive scoop the following day? Martin Clarke: I do not know where you get the idea that there are tensions within newspapers. Q1519 George Eustice: I suppose if the newspapers are still the largest part of your business model, there is a danger of your compromising your print if you put too much online; but if you do not put enough online, it is always going to remain a minnow. Martin Clarke: We generally do not have a lot of tension because the rules are very clear. If it is an exclusive story that we can put in print first, then we do. If it 555
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