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US Newspaper Turns to Software Licensing to Increase Revenue

By Alisen Downey, TMCnet Web Editor

When someone mentions a news agency, you probably imagine paper-strewn, open-floor offices, or swarms of reporters surrounding noteworthy people as they exit buildings and cars, or correspondents talking into video cameras outside barricades and inside studios filled with flat screens. But one thing you probably don’t think of is the software built to support these organizations and the technologies involved.

Like most industries today, the news is going digital—and that means transitioning from the age of newsprint to the age of online reporting. As a result, the Washington Post and many other organizations have developed their own content management systems to publish stories online. But, the Post is taking the age of digital news a step further by making itself a kind of tech company, in addition to a news source. That’s because it is now looking to license its software to some of the smaller newspapers already licensing and republishing news from the Post.

The move doesn’t come as a surprise to many, considering that the newspaper was bought by Amazon chief executive Jeff Bezos for $250 million last year. As the print industry continues to wane, the newspaper believes a software licensing business could help bolster its finances while further establishing itself as a tech savvy and relevant source.

“In the short and medium term, print provides the money until digital can become self-sustaining over time,” Steve Hills, Washington Post president, told the Financial Times. “In the very long term, the battle is all about digital. We’re taking that Jeff Bezos long view.”

The belief that newspapers should become more like technology companies is shared by others within the Post. Editor Martin Baron described the company as “more of a technology organization” since Bezos bought it last year, adding that Bezos “understands our technology needs to be at the forefront of what we do.”

Will software licensing be the financial foothold so many newspapers today are seeking as print publishing falls into obscurity? It’s too soon to tell, but the Post is making a strong case for the business model.