The impact of user generated content on the newspaper industry is profound. Classified ads are being replaced by Craigslist and Ebay, and circulation numbers are dropping as a new generation of students leaving high school and college no longer rely on printed news media.
In addition to this, media production is now available to anyone with a computer and Internet access. Online media is no longer a specialized industry, but rather is a social phenomenon where the current generation is actively participating in the creation of content such as visual media production (i.e. photos and videos on Flickr and YouTube), consumer product ratings and comments, (i.e. Amazon) and self published blogs. 1
“Citizen media are also growing in ways unmistakable and engaging . Web sites run by citizen journalists are multiplying – rapidly approaching 1,500 heading into 2008 – offering stories, blogs and videos. And that trend is considered a healthy one by professional journalists, who call on citizens more frequently to inform their reporting.” 2
The newspaper industry is in economic decline. Recently Gannett Newspapers, publisher of USA Today and over 80 regional papers has laid off over 3000 employees (10 percent of their workforce) in the largest cutback in the 102 year history of the company. 3
One of the worlds most respected international daily papers, the Christian Science Monitor, recently stopped print production and has become an online daily newspaper that publishes a weekly magazine in print. 4
Causes of the decline in newspapers:
Newspapers are funded primarily through advertising revenue. Subscription revenue only covers the cost of distribution. Up to 40 percent of revenue has traditionally come from classified ads. Most of that revenue has disappeared due to the widespread use of websites like Craigslist and Ebay.
As circulation numbers decline, traditional print advertising has evaporated from many pages. Newspapers have resorted to emphasizing special insert advertising that costs more to produce and distribute and yield a lower profit margin. Spokesman Review editor Steve smith explains in his blog,“Ad inserts are not a boon, they are part of the problem. As advertisers move from in-paper advertising to inserts, they pay less, much less. As inserts represent a decline in what we call ROP (run of paper) advertising, revenues decline.”11
Many newspapers have tried to make the switch to New Media by retraining reporters and photographers in the field of digital filmmaking. Staff Photographer Colin Mulvany, from the Spokesman Review became a national figure by becoming an early adopter of video and blogging technology. His video blog was an immediate hit by attracting over 10,000 hits per day. His blog was featured in the Wall Street Journal and he was invited to give training workshops all over the country by the National Press Photographers Association.1
The development of online media however, has not led to the growth of newspaper advertising. The online version of the Spokesman Review has been unsuccessful in converting web circulation into advertising revenues. Among the problems Colin notes, is the ability for a web surfer to click away from content that is too slow to download, or too full of advertising messages. Print media’s attempt on online media followed a traditional broadcast television format of using advertising pre-roll and post roll with news content presented in between. Early video posts had 30 second ad spots in front of the content, in a manner similar to the 30 second spot on television. Web surfers would bypass these ads and exit the website altogether. Today, Gannett and The New York Times utilized 12 second pre-rolls and the Spokesman Review is experimenting with 7 second pre-rolls and are still seeing their audience taking an early exit from the ad-heavy messaging.
Some newspapers, including the LA Times and the Spokesman Review are retreating from their online strategies and laying off their newest multimedia employees. 1
What are newspaper’s doing wrong?
The paradigm shift in news reporting has been underway for the past 10 years. The concept of a “citizen journalist” was introduced by the American Media Institute in their groundbreaking book “We Media.” The concept behind citizen journalism is that non professional journalist (the public) can use modern media technology to fact check mainstream media articles, comment on articles, and report breaking news. During the London Tube bombing in July 2005, over half of the news photos that were published came from passenger cell phones.
In addition to this, the internet has introduced a new level of fan based community building that has emerged as a major source for information about companies, products, teams, etc. These fan sites have become major sources for news items.
“According to a recent Sports Illustrated story, "there is little doubt that fan websites are breaking — and making — news and dramatically reshaping the relationship between college coaches and the public. Mainstream news media, SI included, monitor website message boards to take the public's pulse and, in some cases, look for news tips."
According to Technorati there are over 7 million blogs. We live in a time where not only are newspapers presenting the news, their employees are self publishing personal blogs that give us insight into the daily operations of the news media.
“From a journalistic perspective: Blogging and other conversational media are entering a new phase when it comes to community information needs — they're growing up. Traditional media are using these tools to do better journalism, and are beginning to engage their audiences in the journalism. Entrepreneurial journalists are finding profitable niches. Advertisers are starting to grasp the value of the conversations, and so on. The big issues remain, including the crucial one of trust. Here, too, we're seeing progress. The best blogs are as trustworthy as any traditional media, if not more.” - Dan Gillmor, Director, Knight Center for Digital Media Entrepreneurship, Walter Cronkite School of Journalism & Mass Communication, Arizona State University startupmedia.org
The Challenge newspapers face is two fold. First, participatory journalism operates in direct opposition of the traditional gatekeeper role of mainstream journalism. The idea of a “informed public” that follows a hegemony ideology within news narratives has been wiped out by the internet technologies that have reduced the cost of publication and distribution to the point where anyone with a computer and online access can have a voice. The separation of news and conversation (see we media footnote) has been smudged by online web 2.0 tools that enable the audience to actively participate in story making. User generated content is also tapping into traditional advertising revenue. 6
“The majority of bloggers we (Technorati) surveyed currently have advertising on their blogs. Among those with advertising, the mean annual investment in their blog is $1,800, but it’s paying off. The mean annual revenue is $6,000 with $75K+ in revenue for those with 100,000 or more unique visitors per month. Note: median investment and revenue (which is listed below) is significantly lower. They are also earning CPMs on par with large publishers.”9
The second challenge to newspapers is the fact that advertisers themselves have been able to capitalize on the development of fan based online communities. Viral marketing on social websites and corporate sponsored websites have marginalized traditional news media’s influence on advertising. 10 & 12
New media and user generated content has emerged as a social practice that has overwhelmed the professions it was built upon. The picture is not clear as to what will become of media professionals and journalist.
Sources:
- Author interview of Spokesman Review media manager, Colin Mulvany, September 26th, 2008
- http://digitallearning.macfound.org/atf/cf/%7B7E45C7E0-A3E0-4B89-AC9C-E807E1B0AE4E%7D/JENKINS_WHITE_PAPER.PDF
- http://www.stateofthenewsmedia.org/2008/narrative_online_intro.php?cat=0&media=5
- http://www.nppa.org/news_and_events/news/2008/10/gannett_layoffs.html
- http://www.nytimes.com/2008/10/29/business/media/29paper.html?fta=y
- http://masteringmultimedia.wordpress.com/2008/10/03/layoffs-hit-the-spokesman-review-hard/
- http://www.hypergene.net/wemedia/weblog.php
- http://www.hypergene.net/wemedia/weblog.php?id=P41
- http://technorati.com/blogging/state-of-the-blogosphere/
- Williams, M. (2007). “The Cult of the Mohicans: American Fans on the Electronic Frontier”. The Journal of Popular Culture, 40:3, pp 526-554
- http://www.spokesmanreview.com/blogs/conversation/archive.asp?postID=18823
- Wiertz, C., de Ruyter, K., (2007). “Beyond the Call of Duty: Why Customers Contribute to Firm-hosted Commercial Online Communities”. Organization Studies, 28:3, pp 347–376
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