Thursday, August 26, 2010

Online News - is it an exciting opportunity or a recipe for bankruptcy?


Who will pay for journalism? Is it just about the money?


It is evident that the Internet and digital technology has changed the field of journalism.

Journalists are now able to enter a sphere where their stories can reach a far greater audience unlimited by geographical borders, in a faster and more compelling way, using slideshows, video footage, graphics, hyperlinks and background research to enhance their news.

The Internet has also enabled audiences to have a greater and more efficient participatory role in the news by offering them an opportunity to comment immediately, which has also seen the rise of citizen journalism, (see my first post for more information).

However, this new digital age forces the question of who will pay for journalism, as few media websites charge fees for viewing content.

Media Alliance commissioned Essential Media to survey shifts in dominant news sources in the past five years and found that the:

•    Use of online news websites increased by 13 per cent
•    Use of radio news bulletins increased by 3 per cent
•    Use of TV news bulletins fell by 8 per cent
•    Use of newspapers fell by 6 per cent

Media Alliance Federal Secretary, Christopher Warren, states “whether all newspapers will survive is no longer a parlour game but a genuine consideration,” (2008, Future of Journalism – Life in the Clickstream).

See the link below for the full report.

Life in the Clickstream


This report emphasises the decline in newspapers. It states that in May 2008, at the Media Alliance summit, one of Britain’s leading media commentators, Roy Greenslade, predicted the death of newspapers.
“Popular newspapers, the mass newspapers, are dying and will die. They have no future whatsoever. I’m sad to see newspapers go. I worked on them for 40 years,” (Greenslade 2008, Future of Journalism summit, Sydney).


Newspaper editor and Knight Professor of Journalism at the University of North Carolina, Philip Meyer, emphasised this stating that, “We’ll have to reinvent journalism” (Meyer 2008, Future of Journalism summit, Sydney).

Alan Mutter, a former newspaper editor and cable TV CEO, also stated in 2008, on his blog Reflections of a Newsosaur, that “newspapers are set to lose US$7.5 billion in advertising sales this year, a fall of 23.4 per cent of its peak revenue in 2005,” (Mutter 2008, Monitor move doesn’t spell end of print).

Reflections of a Newsosaur, October 2008

In my journalism class at the University of Newcastle, it was discussed that while the decline of Australian newspapers is not as severe as in the United States, Australian newspapers might need to source their funds from elsewhere, as advertisers pull out due to the drop in print sales.




This loss of advertising revenue which sustains newspapers has resulted in a digital revolution. The rising power and scope of online news is undeniable. Access is easy, quick, current, 24/7, interactive, environmental more sound (less trees are being cut down to print on paper) and ultimately its free!



Problem

However, this last aspect poses issues of profitability for these news corporations and thus the question of how to fund journalists.

Already there has been a decline in journalistic jobs, as seen in the report The Future of Journalism, which states that “The number of full-time Australian journalists has, by Alliance estimates, fallen 13 percent since 2001, from just under 8500 across all media to around 7500” (Media Alliance 2008, p.9). 

Possible Solutions

Diversification was offered as a solution to the question of funding journalists, as well as the Ipad, which Rupert Murdoch has enthusiastically supported as being a way for people to pay for his news, because people buy 'apps'. However, Murdoch should not be so confident, as the Ipad is simply a laptop, offering users the opportunity to browse the internet easily and find the news for free somewhere else.

Why pay when it’s free, just a click away?

Therefore, we are faced with our original dilemma.

Philip Meyer envisaged in the American Journalism Review, that niche publications could save print journalism, stating that a “smaller, less frequently published version, packed with analysis and investigative reporting and aimed at well-educated news junkies, that may well be a smart survival strategy for the beleaguered old print product” (2008, The elite newspaper of the future).

I believe at this point in time that this may be the best option for news media corporations in sustaining an avenue for funding journalists, however further research in the topic may come to another conclusion.

Below is an interesting American YouTube clip that shows footage of The Nation's John Nichols and others about new models for journalism. Media Critic, David Carr of The New York Times, argues vigorously that government funding and subsidies can't save journalism, and discusses some 'green shoots' - emerging new models that are promising ways forward for the struggling media industry. More videos about the future of journalism and media are available at TheNation.com/multimedia

http://www.youtube.com/watch?v=qJHDMSDSt9A

No comments:

Post a Comment