Opinions on the status of newspapers
Posted by Mica Swyers on June 19, 2007 at 2:24 PM
Halfway through 2007, decreasing online revenue growth leaves shareholders worried and advertisers apprehensive. Still, others insist that the online revolution does not necessarily sound the death knell of print journalism and that the industry should take note of current trends and adjust its image and mission accordingly. Two recent assessments from Rick Edmonds from Poynter Online and Allen Neuharth from USA Today highlight important concerns of which we should be aware.
According to Edmonds, a media business analyst for Poynter Online:
- Newspaper online revenue growth, although still significant, is slowing, from thirty to 35% earlier in the decade down to 20% this year. This trend of decreasing online revenue will most likely continue as Internet business grows.
- Print revenue, particularly from classified ads, is also falling behind, a decrease that some papers are trying to counteract with the Yahoo consortium, an under-development advertising alliance between the Internet company’s online classifieds and print papers’ local readership.
- Newspapers are hard-pressed to find concrete evidence of the benefits of online ventures. Despite optimistic claims, the Web brings in only 7% of revenue, and there is little documentation on the effectiveness of online advertising and the local reach of newspapers’ websites. Newspapers should thus back up claims with more data on the benefits on online operations, including “loyal local repeat visits” and the correlation between online readers and e-commerce.
- Although free dailies make up only 7% of US circulation, lagging behind other Western nations, Edmonds foresees increased competition from freebies due to increased distribution.
In a Q&A session, Neuharth, USA Today founder and former chairman of Gannett Co., made the following observations on the state of the newspaper industry:
- Companies should now see themselves within “the news and information and advertising and entertainment business.” Currently, there is more hunger for information than ever before, and newspapers should capitalize on this demand.
- College groups should recognize the impact of an industry that expands past just the realm of journalism or broadcast and train the new generation of journalists accordingly, so that they may provide the public with the broad spectrum of information that it demands.
- Addressing criticisms of low-quality mainstream media, Neuharth said that the industry is better off with the expression of all voices, particularly commenting on conservative talk show hosts like Rush Limbaugh. In light of the heavy focus on celebrity gossip, he counsels newspapers to remember that “serious and thoughtful” people still exist and that they demand “serious news and information” from the industry.
- Although the general feeling may be that the First Amendment is frequently abused, journalists must continue to work towards a standard of fairness to counteract misuse.
Source: Poynter Online and Democrat & Chronicle
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