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Case 17The Chicagotribune.com
Nina Ziv
Polytecbnic University
As he sat in his office in the Tribune Tower in downtown Chicago on a sunny morning in August 1999, Owen Youngman, director of interactive media for the Chicago Tribune, reflected on what it was like to manage the Chicagotribune.com:
The big deal is that you get up in the morning and come to work and you are on the bus and you know you’ll make a mistake today. You don’t know what it is and you may not know for a long time. Whereas in the newspaper business, there’s a lot more certainty regardless of what part of the business you are talking about . And adjusting to that reality is different. And so you manage differently as a result. Some things you hedge; others you don’t.
Youngman, a seasoned veteran of the Chicago Tribune for over 28 years, was used to a culture that valued innovation but was steeped in 150 years of tradition. He now found himself managing in an environment characterized by constant change, instantaneous feedback from readers, a volatile marketplace, and competitors who had never been on his radar screen . True, in its foray into the online world, the Tribune had been very successful. As a leader and innovator in developing an online newspaper, the Tribune had not only developed a distinctive persona for its online paper but also been innovative at integrating the digital and physical aspects of the paper and providing unique online offerings for its readers. It had been recognized for its efforts by such prestigious as the Newspaper Association of American (NAA)as well as the bible of the newspaper business, Editor & Publisher magazine . In the summer of 1997, the Chicagotribune.com was named Best Newspaper Site (in the largest circulation category ) by the NAA. In 1998. Editor &Publisher honored the Chicagortibune.com as 1998’s Best Online Newspaper among publications with print circulations of more than 100000. The online newspaper also won awards for the best business section and the best design.
But clearly, the Chicagotribune.com faced significant challenges in its fourth year of operation. Perhaps the most important challenge was creating a digital brand that would build on the reputation of the print newspaper but offer its readers features they could not get in print. Most online news sites obtained up to 70 percent of their online conten simply by reusing and reformatting print stories for the online market, a practice known in the industry as “shoveling.” Rather than just providing its readers with an electronic version of the print edition, Youngman and his staff were committed to expliting the strength of each medium and constantly fine-tuning the interaction between them. In order to do this, the organization currently in place would need to be restructured to accommodate the new medium and the right kind of talent would need to be recruited that could adapt to this hybrid environment.
Closely linked to the development of the brand was the challenge of defining what business the newspaper should be in as it positioned itself in the new media industry. Should the Chicagotribune.com be in the business of providing news to its readership, or should it become an e-commerce business with news as just one of its many products？Unlike many new media companies that operated independently, the Chicagotribune.com was part of the Tribune Company, a media conglomerate, and thus its development as an online entity was linked to the overall strategy of the parent company. In May 1999, the Tribune Company consolidated its national and local online businesses into one business unit, a move that could have a significant impact on the development of the Chicagotribune.com. Tribune Interactive, which joined publishing, broadcasting, and education as the Tribune Company’s fourth line of business (Exhibit1), brought together the interactive functions of the Tribune’s four newspapers and 17 television stations. In addition, other Internet products and services=such as BlackVoices, Go2Orlando, and Digital City-were placed under the umbrella of the business unit (see Exhibit 2)
The purposed of the consolidation was to enable the Tribune to develop new products for the online environment more rapidly and achieve economies of scale. Yet Jeff Scherb, the chief technology officer of the Tribune and president of Tribune Interactive (TI), stated on numerous occasions that the “goal is for TI to be an e-commerce company enabled by great content.” Scherb understood that the mission of the newspaper was to focus on coverage of events and breaking news, but his vision also entailed building Internet businesses that would provide consumers with the utility and convenience of one-stop shopping on the Web.
Whether or not the e-commerce mission of the online edition delineated by Scherb was realized, executives at the Tribune saw the Chicagotribune.com as one part of their plan to leverage the rich content of old media newspapers and evolve the Tribune company into a cross-media company with multiple outlets serving a wide-ranging audience.
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