Electronic explorationsby
David Kilburn
Japan's newspaper publishers have mastered the logistics of physical distribution to the extent that they can push
millions of copies - almost 10 million a day for the Daily Yomiuri's morning edition - into the nation's letter boxes
each day. Their massive circulations glean newspaper publishers more than one fifth of total ad spending.
Web browsers can already sample a Japanese approach to digital news distribution at Kyodo Cyber Express
(http://www.toppan.co.jp), which offers a choice of news photo-stories culled from the daily output of Japan's
largest wire service, Kyodo News.
"We are living in an era when a new way of disseminating information could change the world, it could become
even smaller because of the freer exchange of information, made possible with new technology. We are excited to
see how our experiment will produce a different means of providing information," says the introductory screen.
Electronic news delivery is not new to Japan. In 1983, Nihon Keizai Shimbun's Nikkei Telecom started to
provide an English and Japanese database of stories running in the newspaper. This includes a 'broadcast mode'
that delivers new stories directly to user's screens. But there's no advertising and the service is very expensive,
uses a clumsy text-based interface requiring the user to type arcane commands, and is only available on-line at the
slow speed of 1200 baud which makes it suitable only for business users.
Publishers and advertising agencies are both exploring digital formats that can deliver news direct to the home, on
PC screens, TVs, or new terminals that will combine both functions. How inkless papers will win over readers,
and how they will incorporate advertising are the key topics.
Last August, Nihon Keizai Shimbun, Japan’s leading business daily, working with Dentsu Inc, and IBM, unveiled
one prototype for a new electronic newspaper which could be delivered to homes via cable television, telephone,
or broadcast. It could be viewed on either TV sets or computer screens. News stories would be updated in real
time. Still photos could be replaced with video clips or augmented with sound tracks. Signals would alert viewers
to breaking stories. Navigating through the paper would require only the dexterity that goes in to clicking a mouse
on screen.
Meanwhile, the Hokkaido Shimbun, a leading regional newspaper, is exploring the new technologies in
cooperation with Hokkaido University and Sapporo Electronics Center Foundation. It has developed an
experimental interactive electronic newspaper that can be accessed by those in search of news articles and related
video and sound. The system, which was demonstrated at "Database Fair in Hokkaido" last October, has
attracted the attention of numerous high-tech companies because the technology involved is also applicable not
only to newspapers, but also to databases. Takatoshi Machida, chief researcher of the foundation, said such a
multimedia service could be available on Internet this year.
In Tokyo, the Yomiuri Shimbun and Hitachi Ltd. teamed up to jointly produce an experimental electronic
newspaper. A one-week public demonstration was held last November at Sony Square in Tokyo. The Asahi
Shimbun is also exploring digital delivery, initially the paper will beef up Asahi-Net, a domestic PC network.. It
plans to provide access to on-line information worldwide through Internet. The service will include merchandise
catalogs in a multimedia format, and a database for Asahi Shimbun newspaper articles, including some translated
into English.
For advertising agencies the main question is how electronic newspapers should handle advertising. In the Dentsu
prototype for the inkless future, the newspaper pages that appear on screen also contain 'boxes" for advertisers.
By clicking on these, readers can enter the advertiser's domain. "But readers will need a genuine incentive to do
this," says Mr. Gil Kuno, an executive in Dentsu's multimedia department, who added "We don't think readers will
welcome a procession of infomercials deluging them with data. "
Interactivity is at the core of Dentsu's concept for how advertising will be developed for on-line newspapers. The
prototype includes ads for Suntory beer that allow readers to order directly off the page and from a travel agent
Kinki Nippon Tourist Co that enables readers to plan and book a holiday itinerary as well as previewing their
destinations. Retail chains, such as convenience stores, are also expected to find new values in electronic print
ads. Stores can be located quickly and orders made, all electronically. Readers suitably equipped could also
receive discount coupons via a printer. "Interactivity will play a crucial role in the future of advertising," says Mr.
Kuno.
Despite the smooth finish of the prototypes, there are still years more work to be done before newspaper delivery
boys need look for new jobs. Standardization is an issue. Newspaper publishers need to reach a common format
for how readers will turn their electronic pages, and how advertising could be built into the package. When the
new papers switch on, it is likely that the circulations and the ad revenues of conventionally printed newspapers
will decline. "However," believes Mr. Kuno, "the new interactive advertising formats will give advertisers new
communication values, new opportunities, so we don't think that total ad revenues will be adversely affected."
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Originally published in Media International, May 1995
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