Convergence Emergence

Entries tagged as ‘Newspapers’

Clay Shirky on the future of newspapers and accountability journalism

November 3, 2009 · Leave a Comment

Professor Clay Shirky

Professor Clay Shirky spoke recently at Harvard on internet issues facing newspapers. Click here to view the video or read the transcript. It is very interesting and fascinating stuff, covering newspapers’ shrinking ability to produce accountability journalism. The focus is on the U.S. and the public good role that commercial media – in this case advertising supported newspapers – have played in accountability journalism.

I read the transcript to learn about the role that social media is playing in this…and was not disappointed. Social media disrupts the traditional role that media has played in deciding what information is bundled with the ads. Newspaper web sites by and large have mirrored the print copy of newspapers, assuming that readers would go to the web site just as they picked up a newspaper to read. With social media, that assumption no longer holds. Instead of going to the web site, people go directly to the storey, because someone in their network Twittered about it or put it on Facebook or sent a link in an email. So the audience is being assembled not by the newspaper, but by other members of the audience. Now, that’s true for me too. I spend less time on media web sites and on RSS feeds and more time on Twitter & Facebook because of the quality of information I’m getting through my social network.

There is little doubt that social media is a disruptive force in media and in advertising. Companies born digital are taking on more social dynamics into their business model. Take Google for instance, having just released an experiment with search going social.

Professor Shirky’s presentation goes into the public good generated by the social distribution of news online. The public good comes from republication and reuse on a scale that was not feasible from just hard copy print alone.

People can share or forward commercially produced articles online very easily right now, but for how long is unclear.  If newspapers put news and information behind a pay wall, that would block republication and reuse. But then, as Shirky says, the internet enables non-commercial models for news and information production and distribution, including socially produced material. So whatever newspapers do, they will need to rebalance with these alternatives. But the uncertainty is whether the alternative models will be effective substitutes for accountability journalism. Shirky thinks a transitional problem is looming due to the rapid decline of the newspaper industry (particularly in the U.S.); and the uncertainty about the nature and length of time of the intervening period until the (or whether the) social media ecosystem has evolved to fill the gap, particularly in respect of local journalism.

Categories: Emerging business models · Media · Newspapers · Social media · drivers of change
Tagged: , , ,

Challenges to business models/drivers of change

January 31, 2008 · Leave a Comment

This article from the Online Journalism Blog (referred to me by a colleague) reminded me of other  drivers of change that directly challenge existing media business models.

  • Internet users expect that much of the content available online is free – so why pay?
  • Production and distribution costs online are minuscule compared to say newspapers and traditional broadcasting.
  • The traditional vertically-integrated and independent model is not an option with the Web. I did make reference to this in the drivers of change posting earlier this month. The internet is a ‘network of networks’ where interdependency is unavoidable…and where there is no overarching centralised management system or ownership structure.

Categories: Emerging business models · drivers of change
Tagged: , , , , , ,

Structural differences Australia and global entertainment & media industry

January 24, 2008 · 2 Comments

During the course of researching market developments I had cause to revisit PriceWaterhouseCoopers Australian Entertainment & Media Outlook/2007 – 2011 (June 2007).  One issue really stood out – a key difference in the Australian market compared to the global situation.

By 2011 Newspapers are forecast to lead the field in Australia (including Internet, Free-to-air TV (FTA), subscription TV and others) in terms of total industry spending, accounting for 20 per cent of the top 10 categories of spending.  The Internet is forecast to come in at second place followed by FTA and subscription TV.

Now for the global comparison – newspapers are forecast to run it at 4th place, accounting for 11 per cent of spending. Globally the leader (by a comfortable margin) is the Internet accounting for 19 per cent of revenues. Globally, FTA, subscription TV and newspapers are in the top four. 

Newspapers came in first place globally in 2006 but are forecast to fall to 4th position by 2011…while in Australia, newspapers retain “the pole position’ in the forecast period. There are other differences too (such as filmed entertainment forecast to be ranked at 1oth globally and 5th in Australia by 2011). But the most interesting one is Newspapers, Sure, the Internet is hot on the heels of newspapers by 2011 but the comparison internationally appears to be significant.

Now here’s the thing – I don’t know why. Are there any views on this?

Categories: Emerging business models
Tagged: , ,