The history and success of Wall Street Journal Online

¶ … Wall Street Journal Online. The Wall Street Journal Online has over 646,000 paying subscribers. It features updated, in-depth coverage and analysis of business news drawn from more than 1,600 journalists working for the Wall Street Journal and Dow Jones Newswires around the globe. The Online Journal has enhanced the business of Wall Street Journal and Dow Jones Newswire.

THE WALL STREET JOURNAL ONLINE

The Wall Street Journal has over 646,000 paying Internet subscribers. Many believed the Wall Street Journal would fold with the popularity of the Internet, but this did not happened. Instead, it has increased the sales of the Wall Street Journal. "The Wall Street Journal has been published since 1889" (1998) It has always met the challenge of time and technology. Even before the explosive growth of the Internet, the WSJ was making its headway to create a powerful online news product. The history of the Wall Street Journal Online is one of interest comparing the steps and direction it has taken.

The History of Wall Street Journal

Dow Jones has strived on giving the businessman the news on business, financial news, and information. "In doing so, Dow Jones looks to leverage core competencies and traditional strength in business content, and our expertise in what we call the 'chemistry of publishing" (Steinbock 2000). Dow Jones has met changing technology changes for over 100 years. Dow Jones began with the understanding that it would have to change the Journal into the online world. "We began by thinking about what would make the Journal useful in the lives of business people and investors" (Steinbock 2000). They believed they had to supply value to customers or they would not survive. Various other companies have tried to obtain paid subscribers for their online news sites and have failed.

Dow Jones has been a symbol of power, respect, and trust. Although Dow Jones survived for over 110 years, many industry observers believed it would not survive the World Wide Web. The Wall Street Journal emerged after the Second Industrial Revolution as it met the rising financial markers and the new technological infrastructure of Manhattan. "Historically, Dow Jones has been a first mover in business and financial news and information" (Steinbock 2000).

This included handwritten bulletins of stocks to the bond trading news called the Customers' Afternoon Letter. With the electric ticker service in 1897, the company continued to grow with supplying the news by telegraph. As technology changed so did Dow Jones. They met every challenge from the rapidly changing world. "The Journal has made the 'three interrelated sets of investments in production, distribution, and the management required to achieve the competitive advantages of scale, scope, or both, inherent in the new and improved products and processes" (Steinbock 2000).

During the 1970's, it grew through the diversification of the products and expansion. Many companies did not survive this period. Then the 1980's the circulation climbed to over two million in 1983. Part of the reason for this growth was Dow Jones database efforts. Three years later they introduced Wall Street Journal Europe. During the years between 1985 and 1990 Dow Jones acquired Telerate, a real-time financial data network. Dow Jones added Smart Money, which is the Wall Street Journal Magazine of Personal Business. In 1996 Dow Jones introduced the Wall Street Journal Interactive Edition. Next, came the Asia Business News in 1995. Approximately two-year later, Dow Jones started an alliance with NBC that was centered on CNBC. "It sought to offer U.S., Asian and European audiences the best available business news programming" (Steinbock 2000). All this brought new markets, new demographics, and new technologies. Wall Street Journal met all these changes. Dow Jones delivered a video of news coverage to business and financial customers' computers. However, this failed and caused a sizable loss in 1997.

During this time Dow Jones revenues composition changed. "In 1993, Dow Jones's revenues had amounted to $1,932 million, with 44% from information services, 43% from business publications, and 13% from community newspapers. After restructure and divestitures, Dow Jones, in 199, generated $2,002 million in revenues, with 66% from print publishing, 17% from electronic publishing, and 17% from community newspapers" (Steinbock 2000). This began a shift from information services to publishing services. This changed the advertising to circulation and a reduction in internationalization. The more that Dow Jones focused on circulation the more rapidly publishing was moving to electronic products. Sadly, Dow Jones stock languished. It was during this time that the Interactive Journal was being created and launched. Many believed that Dow Jones would be destroyed.

The Beginning of Wall Street Journal Online

Neil F. Budde taught himself how to do computer programming and the use of HTML on Boston's Logan Airport (Sacharow 1998). Some people laughed at the ideal that Budde could teach himself computer programming and make it work for an Interactive Journal. However, Budde became the veteran editor of the beginning Interactive Journal beginning in December 1993. "From the beginning, we wanted to create something people would pay for. It's always been part of our vision. We set out to create and independent product that would stand on its own," says Budde (Sacharow 1998). He would direct the design, development, and evolution of it. He would oversee the news, technical operations, and manage its relationship similar to how he had with the Wall Street Journal and Dow Jones news media. According to Budde, "After all, we now had a medium that lent itself to timeliness, depths of information and provided the ease of linking from one piece of information to another. I started showing the prototypes around to people in the company. As I got feedback, more people were getting excited about the idea" (Steinbock 2000).

Budde's beginning concept was to use the Visual Basic as he designed the features and functions of the Interactive Journal. It would have robust data and information that would provide the global perspective of highly customized news and investment data. The concept was that it would be a tool of use. Even during the early invention days, the ideal was that people would pay for quality when they received an in depth and breadth of information. Putting the Interactive Journal on software would have taken them longer and the company might not have been able to survive. "Time was running out" (Steinbock 2000). The aggressive competitors might destroy The Wall Street Journal if something was not done quickly. Budde was working on a solution. The Internet was the best technology for delivering this product. The team of inventors was excited about the possibilities of using the Internet with the Interactive Journal. Budde says, "We couldn't help but notice the emergence of the Internet and the World Wide Web....As we investigated a bit further, we realized that we should move our efforts over to the Internet" (Steinbock 2000). In the past Dow Jones had overcome the problems and kept up with the technology and it would continue to do so. Early in 1995, the team moved development to the Internet.

The earliest version of the Interactive Journal started with Money & Investing Update. This was an interactive version of the Journal's third section, free and advertising-driven. "With technology integration, the emphasis was on the upstream activities, including user feedback (e.g.... developer communities in beta testing, focus groups or internal employees in building online communities or product testing). Only with the launch of the product was this internal orientation displace with an external one" (Steinbock 2000).

Once the migration takes place then the integration is no longer the driving force. The product was free in the beginning. The Interactive Journal had to gain paying subscribers.

The Money & Investing Data was started in April 1996. This extended news coverage that would include politics, economics, marketing, sports, and weather. Marketing integration development needed to manage its interaction with the customer. "Marketing integration is driven by downstream processes (distribution, marketing, and sales service). With full product launch, the focus groups are displaced by the customer base, which provides continuous, real time, and interactive feedback. Through segmentation, user feedback is analyzed according to strategic objectives" (Steinbock 2000). The Wall Street Journal Online had a staff of more than 700 reporters and editors bringing together the combined assets of Dow Jones and the Wall Street Journal and the Asian Wall Journal. The staff from all of this would be able to bring news 24 hours a day, 7 days a week around the globe. Plus, the online investing news. However, the Wall Street Journal Online has different demographics than the Wall Street Journal. "Certainly, the Interactive Journal sought to extend the newspaper franchise into the market space, but online migration required far more than a simple brand extension" (Steinbock 2000). The wsj.com was more than the printed version bringing new products and services.

Dorothes Coccoli Palsho, president of business information services at Dow Jones, announced the new perspective of paying subscribers for the Online Journal. She states that it is a matter of trust. "We do not view news and information as a commodity, but rather as a valuable product that editors and reports enhance with their judgment, perspective and analytical skills. The process of filtering and analyzing information is an asset to busy people who are being deluged with information, much of it misleading or irrelevant" (Palsho 1997). She stated that most readers do not have the time to search and gather news on their own and they trust the staff to do this for them. There have been several other newspapers that tried putting their paper on the Internet with paid subscribers and have failed. Palsho says that the Interactive Journal will be different from other newspapers because one of their most important assets is credibility.

The relationship between credibility and trust is a vital asset regardless of what new forms of media develop. Assessing the variety of news and information sources available online, she said that no matter how fancy the delivery method, or how attractive the pricing (even free), serious customers won't tolerate content that isn't completely reliable and credible" (Palsho 1997).

Palcho states that there are over 60 million documents and access to around 400 separate databases. Many publishers are skeptical concerning the Wall Street Journal Online. The Interactive Journal is placing it within a larger matrix of specialized information, services, and partnerships within a wide variety of distribution channels.

When the Online version started it had over 30,000 paying subscribers within the first 30 days. Budde's team believed that regular users would pay the premium for the quality service they would receive. The design of the online wsj.com offered valuable service and features that people would be willing to pay the subscription rate. The beginning rate was $49 annual or $29 for paid subscribers of the Wall Street Journal. Gradually the number of paying subscribers has increased. The Wall Street Interactive Journal was the only online news service that required payment. "A 'quick search' option reaches more than 1,000 sources (newspapers, magazines, trade journals, transcripts, and newswires) in the database....The full search of 5,500 publications offers more search options" (Paul 1999).

The Journal was prepared daily by a staff of 150 full-time professionals, sixty of them editors and reporters, the online version gave subscribers far more than a recycled version of the Wall Street Journal. It provided information about politics, economics, technology news, marketing, travel and sports. It integrated various geographically targeted Wall Street Journal publications with online readers with a comprehensive global resource for business news.

Technology News

Technology news is important to the Online Journal more than the Wall Street Journal in print. Dow Jones expanded its online offering in technology and personal finance. It developed a special page called the "Tech Center." Budde's team knew that technology and advertising had to be important for the online journal.

Advertising

Advertising on wsj.com was going to be a premium ad arena for two reasons. The readership of wsj.com represented a global community throughout the world. The readers are remarkably influential businessmen who would influence other readers. These businessmen demanded the best in news, analysis, and commentary. The Online journal could be an advertising medium that demanded a price premium. "Initially, the Interactive Journal had to emulate its buyers -- not just the subscribers, but the advertisers" (Steinbock 2000).

The Interactive Journal (wsj.com) was unique, but that would not be the selling point. It had to give more than quality or uniqueness. The team working on the Interactive Journal must give attractiveness of the product with the vast knowledge of market news and the team had to communicate this to subscribers for the wsj.com to be successful. In August 1998 the journal launched an affiliate program that earned money for bringing subscribers to the journal. The rates of the journal increased from $49 to $59 per year. Other papers such as the New York Times did not have paid subscribers on their online papers.

The Interactive Journal had many financial sites with charts, graphs, and other database information. During this time the digital economy was being "mobilized." The Interactive Journal followed in the footsteps. Now the Journal would have to offer "unwired" services. News came from a variety of mobile technologies and devices. Mobile users could now use this around the clock.

Making the Wall Street Online with Customization and Personalization

Budde saw many challenges in the future of the Online Journal. He says, "We must make it ever easier for those, who are already subscribers, to locate the information they need and want from the vast collection of information we have. We need to get new people to sample WSJ.com and understand its value" (Steinbock 2000). The need was to personalize the Online Journal for the customers. The Interactive Journal needed to raise switching costs that would then raise entry costs to deter rivals.

The largest paid circulation in the fourteen-year history of the Interactive Journal was in 2000 with 438,000 subscribers. This was a gain of over 55% over the first quarter of 1999. There were several reasons for these gains ranging from traditional marketing and direct marketing to the emulating success of AOL in shipping millions of diskettes to people to get them to take AOL. Budde says that campaign of AOL taught him how important it is to put something in the customers' hands.

WSJ.com was now a market leader in Web publishing and commerce. The Online Journal had 461,000 paid subscribers. "With a paid circulation of more than 461,000, WSJ.com maintained its position as the largest paid circulation on the World Wide Web. A worldwide leader in electronic publishing, Dow Jones & Co. had developed the world's first electronic news ticker 1897. Starting in 1993 it had developed the most successful subscription model on the Web" (Steinbock 2000). Dow Jones knew when to listen to their customers and made the changes needed to keep the company going. Definitely the online journal helped the printed version of Wall Street Journal. Budde's team met the challenge of the international global activity by producing the Asian Wall Street Journal. "Just as the Second Industrial Revolution gave rise to Dow Jones & Company and its flagship brand, the Wall Street Journal, the Third Industrial Revolution led to the creation of the Interactive Journal, through technology and marketing integration" (Steinbock 2000). Dow Jones met the challenges and succeeded with the Wall Street Journal Online.

Search 7 days of Journal articles

The Subscriber Services Web site will also allow a person to order the Wall Street Journal and other Dow Jones publications, check the latest headlines and Dow Jones Averages, take a look at our storied history, profiles of our award wining writers and provide Valuable Links to WSJ sites, DJ publications, Online Products & Services and Travel Amenities" (wsj.com 2002).

A subscription can be ordered by clicking on the subscribe to the Journal on the Welcome Page or for other Dow Jones Publication click on "other Dow Jones Links." It is easy to subscribe by using a credit card or simply call [HIDDEN] JOURNAL (568-7625). This number can be called if a person has questions about their subscription or contact information is available on the website. An email can be sent to as well.

The minimum browser should be the Microsoft Internet Explorer version 3.0 or higher, or Netscape 4.0 or higher. It is necessary to log in to be sure that only subscribers are using the web site. Cookie encryption is used to protect personal information. "A cookie is a string of information that is sent by a Web site to the hard drive of the computer and is stored there temporarily. When a subscriber types in their account number to access Subscriber Services, they save this information as a cookie" (wsj.com 2002).

If a person wants to contact the advertising department, they can call or visit the website at http://advertising.wsj.comto access information online. If a person wants to reach the Online Journal and Barrons Online, they are available at www.wsj.comand www.barrons.com.They can email or phone.

FACTS ABOUT DOW JONES CORPORATION

Dow Jones & Company was founded in 1882 by Charles H. Dow, Edward T. Jones and Charles Bergstresser, publishes the world's most vital business and financial news and information" (dj.com 2002). The headquarters of Dow Jones is located at 200 Liberty Street, New York, NY 10281. The Revenue for 2001 was $1.8 billion. The net income for 2001 was $68.2 million (after special items). There are over 8000 employees worldwide during 2001. There are three major industry segments: print publishing, electronic publishing, and community newspapers.

The Wall Street Journal has a daily circulation of approximately 1.8 million. It is the largest newspaper in the United States. The Wall Street Journal Europe was founded in 1983 and has a daily circulation of over 100,216. The Asian Wall Street Journal was founded in 1976 and has an approximate circulation of 85,460.

WSJ Facts and Figures from dj.com

First issue of The Wall Street Journal was July 8, 1889

First issue of The Asian Wall Street Journal was September 1, 1976

First Issue of The Wall Street Journal Europe was January 31, 1983.

First two-section Journal was on June 23, 1980

First three-section Journal was on October 3, 1988

The Wall Street Journal Special Editions launched was 1994

First Weekend Journal was March 20, 1988

WSJ.com was launched on April 29, 1996

Pulitzer Prizes awarded to the Journal have been 26

Average paid circulation of The Wall Street Journal for the six months ending September 30, 2001 is 1,780,605

Statement of Total Circulation for The Wall Street Journal for six months ending September 30, 2001 is 1,851,320

Circulation of The Wall Street Journal Sunday is 10.8 million

Average paid circulation of The Asian Wall Street Journal for period ending December 31, 2000 is 85,460

Average paid circulation of The Wall Street Journal Europe for the six months ending December 31, 2001 is 100,216

Total circulation of The Wall Street Journal Special Editions is 6.9 million in 36 newspapers in 32 countries (including The Wall Street Journal Americas circulation is 2.37 million)

Number of global Journal news department personnel is 750

The regular press capacity of the Journal is 96 pages

Wall Street Journal news bureaus: domestic - 15; foreign - 31

Advertising sales offices: domestic - 28; foreign-24

U.S. printing plants are 17

The Wall Street Journal Europe printing plants are Bologna, Brussels, Frankfurt, London, Madrid, and Zurich

The Asian Wall Street Journal printing plants are Bangkok, Hong Kong, Jakarta, Kuala Lumpur, Manila, Seoul, Singapore, Taipei, and Tokya (The above information comes from the Audit Bureau of Circulations 2002)

WSJ.com Timeline

April 1993 - Neil Budde begins developing early prototypes of a proposed Wall Street Journal Interactive Edition using Visual Basic

November 1993 - Business plan approved and team of Neil Budde. Tom Baker and Susan Cayne were chosen to be a part of Budde's team.

January 1995 - Work switched from software to Internet and World Wide Web

July 1995 - The beginning of the website with Money & Investing Update with 13 charter advertisers

September 1995 - Briefing Books added to the website that allows more research capacity

April 1996 - WSJ.com is launched with full contents of the printed Journal and continuous updating with portfolio features

August 1996 - Subscriptions rates for the Online Journal at $49-year or $29/year for print subscribers

December 1996 - WSJ.com wins Best Internet Business Produce in first Global Information Infrastructure Award. 50,000 subscribers secured.

January 1997 - Integrated access into Dow Jones Publications Library for pay-per-view access to deep archives and 6,000 other publications added.

April 1997-100,000 subscribers

July 1997 - Barron's Online integrated into WSJ.com subscription package

August 1997 - Careers.wsj.com (predecessor to CareerJournal) launched as free site

September 1997 - Expanded technology coverage in WSJ.com broken out as separate Tech Center section with additional online -- only coverage

December 1997-200,000 subscribers

January 1998 - Boeing Co. becomes first corporate customer with 4,500 subscribers

April 1998 - Advanced stock charting from Big Charts added to Briefing Books

November 1998 - Subscriptions price increased to $59/year for online-only subscribers but remains $29/year for print subscribers

June 1999-300,000 subscribers

September 1999 Named "Simply the best online news site on the Web" by Forbes magazine

January 2000 - Neil Budde named Published in addition to Editor role

January 2000 - WSJ.com airs commercial during Super Bowl telecast

January 2000 - Intraday stock quotes from London and Hong Kong added in first wave of international stock quote expansion that eventually brought coverage to 28 markets

February 2000 - Product rebranded The Wall Street Journal Online

February 2000-400,000 subscribers

August 2000 - Named "King of financial online news site" by Fortune magazine

August 2000 - Opinion Journal launched as extension of Journal editorial page, quickly reaching a wide audience in midst of U.S. presidential elections.

September 2000-500,000 subscribers. Named "The Nation's favorite source of financial information" by Campaign Magazine

December 2000 - Voted "Best Business News Site" for 2002 in Yahoo! Internet Life magazine's 100 Best Sites

January 2002 - Chines.wsj.com site launched (Chinese-language service with selected WSJ.com content). By June 2002, the site is adding approximately 125 new registered users a day and has close to 15,000 subscribers

January 2002 - Redesigned and rebuilt WSJ.com is introduced with improved navigation expanded personalization of home page and additional content

July 2002 - Price increased from $79/year or $39/year for print subscribers

July 2002 - Health Industry Edition launched as first industry-focused edition

WSJ.com Timeline can be found at http://services.wsj.com/timeline