The times, they are a changin’.
November 7, 2011 Leave a comment
The media industry is in the midst of a revolution. In the past decade readership of traditional newspapers and other periodicals has faded precipitously as society moves online in search of its news. According to Eric Alterman “since 1990 nearly a quarter of American newspapers have disappeared, only nineteen per cent of Americans between the ages of eighteen and thirty-four claim to look at a daily newspaper, and the average age of a newspaper reader is fifty five and rising”. Traditional media outlets must innovate and embrace technology or face extinction, but many are skeptical of what the future holds.
The future of media and its monetization through advertising is one the most controversial and difficult issues the industry is facing. In the past, media outlets could defray the cost of reporting on the minutiae by bundling the minutes of last week’s city hall meeting with the front page headlines and last night’s sports scores. Readers bought the entire newspaper and felt inclined to read it in its entirety. Online news has changed the rules of the game. Readers only read according to their interest and advertisers only want to pay for ads that target the stories generating the most interest. In essence, the most popular stories make money and the rest go unreported because they lack both popularity and profitability. It also appears that media outlets must become more accountable to their subscribers to survive. Only 10% of their consumers will pay, but consume 40% of the news and account for 50% of revenue. This model only works well for large well-established periodicals with great reputations for content like the Wall Street Journal or the New York Times. Other news sources must continue to think outside the box to maintain their relevance. Incorporating new technology is one way to increase efficiency. Recently a group of scientists created Narrative Science a robot that collects data and reports the news. Instead of employing an expensive army of staff writers that collected sports scores, financial data, or minutes from the local city council meetings, editors could use robots to handle the routine reporting and focus the efforts of a few journalists to create stories for profit.
The future of ethics, integrity, and neutrality in media is disconcerting. Large profits in advertising, low publishing and production costs, and immediate access to everyone allows for the emergence of polarizing news outlets and corporate sponsored ‘news’. For example, Billionaire Mark Cuban aggregates reports compiled by investigative journalists in his employ for his own personal financial gain on a site named Sharesleuth. Although it is legal, his actions call into question the basic ethics of journalism, one of America’s oldest institutions. Wiki-Leaks, Julian Assange’s controversial site, is another example of questionable ethical behavior. Although his desire to hold governments accountable through transparency was noble, his actions crossed both legal and ethical boundaries, disrupted international diplomatic activity, and endangered the lives of many.
As Clay Shirky suggests, we are in the middle of this revolution and it may be many years before we reach a new equilibrium. Until then, it is going to be a fascinating journey.