Internet TV a viable option
April By Noel Meyer

While big name and big bucks operators like Disney, with its Go.com and CNN are slashing, amalgamating or closing their web sites its timely to visit news4hamilton.com, a small and tenacious multimedia news site that's proving that with the right business approach, news on the net can turn a profit.

News4hamilton.com was launched last November by former local TV news anchor Donna Skelly on a budget of C$250,000. As much as anything is certain in the dot.com world, the company is on track to turn a profit after its first year.

When the question comes up as to why news4Hamilton.com is moving out of the red when other sites are floundering, Skelly says, "We are different. I look at a lot of the big sites and they are going in with big money and spending. We're a very small shop with a low overhead and we have very little in terms of luxuries. The one thing we splurged on was a window. I think people just went crazy and didn't treat the Internet like a regular business."

Skelly says the news site works because it is very focused on Hamilton, a city of half a million in Southern Ontario where the major employer is steel company Dofasco which gives it its Steel City nickname. "It's a success because of the fact that it's local. I'm not marketing to the world, I'm marketing to an audience. I'm from here and I've worked here for 12 years. I understand the market and I am presenting a product that I believe there is a need for."

And she obviously fills a need. As of March 5th, the site had over 13 million hits with an average of 35,000 views per day. Users spend an average 25 minutes on line. Respectable demographics.

The company competes against six local radio stations, one local TV station, a respected daily, The Hamilton Spectator and a weekly community newspaper. But there are holes. The Spectator only updates its web pages once a day. "The web is perfect for news because it's immediate. We want information yesterday. Traditional media can't post information immediately."

At news4hamilton.com stories are posted as soon as they are written or produced. The time lag for text is usually one hour and for video, 90 minutes. The site offers text, real audio and streaming video webcasting in 56K and 100K configurations. The site offers seven different channels covering news, sports, arts and entertainment, lifestyles, holidays, travel and business. The news page is the home page and when it comes up the first thing to catch the eye is the dedicated video box showing news clips.

All the content is original and focused on Hamilton. While in some ways the site goes against the standard precepts of the web, in other ways it fulfils the promise of the 500 channel universe. "It's very much local and personalised. It allows you to watch what you want to watch. Not everyone wants to see the local school concert but you can."

Where it goes against the grain is that the site doesn't offer realms and realms of additional information. "We do the opposite. We are quick and dirty, in and out with as much coverage as we can get as fast as we can. We can't compete with the Hamilton Spectator which does a wonderful job of providing background information. From personal experience, I want a quick fix."

The operation has 20 staffers including Skelly who describes herself as founder, CEO, news director and cleaning lady. Half are paid, including two sales reps and half are volunteers from local communications studies programs getting experience they couldn't get anywhere else.

Drawing factors for the station include Skelly herself who, after 12 years as a local anchor, has a high profile and two star atheletes, retired Olympic swimmer Joanne Malar and Canadian Football league Hamilton Tiger Cats slotback Mike Morreale who provide athelete of the week profiles.

Skelly didn't embark on her venture lightly, she spent 18 months researching the project and commissioning a market study. Among the factors she looked at were connectivity, access speeds, and Internet growth.

Several findings convinced her that the time was ripe to go ahead. One was the shear growth of the Internet. Another was the fact that most people log on for news, travel and health information and the third and perhaps most important was an American statistic that showed that the Internet is now the third most popular form of local advertising because of its cost effectiveness.

Key factors enabling her to go ahead were two deals struck before she launched. The first was an agreement with Dofasco to sponsor the site and the second was with two local community cable channels for studio space.

Forging an alliance with Dofasco gave news4hamilton.com legitimacy and credibilty in the local advertising community. The deal with the cable companies cut overhead and provided visibility. In exchange for office and studio space Skelly provides the community channels with a five minute news broadcast every half hour.

The company markets itself as much as it can. In June they will take over spots on prime billboards as they become available. "Marketing is the key. We are in the business of selling advertising and I believe it is more difficult to sell a product around the globe than it is to sell it in your own backyard. We do radio and we are visible in the sense that we have two news cruisers that drive around town and are everywhere. We cover everything and we are able to go out and promote ourselves."

Skelly's advice to traditional broadcasters venturing onto the web is pithy. "I think they've got it wrong. I think they are using it as a tool to promote their programming instead of using it as a tool to attract people to their site. Forget about promoting your programming on the Internet. It's unnecessary. I'm not going to the Internet to find out more about Will and Grace. I watch the show and I'll pick up the TV Guide to find out when it's on. If I'm going to the Internet and you promise me there is going to be more information, give me the information."