Business of Journalism Assignment

Posted on August 30, 2011

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3 Trends that have changed economic models for news organizations

-The surplus of information that a person is exposed to has significantly affected news organizations. The public now has many options and much of the content is free and fairly homogenos. This has driven the price of content down and affected profit margins.

-Another trend that the digital age has brought is aggregation. Traditionally, newspapers aggregated content into one bundle. In this age, every bit of information exists independently of another, and it is seamless to go from one news organization to another. For the reader it is good, but it presents a challenge for the publisher who was previously able to market his/her content to advertisers based on total circulation. Now advertisers are more interested in the number of clicks per page.

– Competitors now have to ability to repackage content and make more money off it than the original source.

Advantages digitally based news organizations have over traditional print/broadcast models.

– Content can be distributed by readers at no cost through social media like Facebook and Twitter. It also publicizes and validates the work of journalists when articles go viral or have several hits.

– Digital media sites are able to learn more about the consumer; where they are coming from, what they are interested in and they can have access to customers’ credit card numbers or other valuable demographic information that will help sell more advertising.

Advantages traditional print/broadcast news have over digital news

-The “lean back” experience that broadcast and print mediums have is not shared by digitally based news. Readers do no immerse themselves for hours reading news online as they would with a newspaper or a traditional news broadcast. Instead digital news has a ‘lean forward” experience because people search for more specific information. This translates into less page views and less interest from advertisers.

– Unlike traditional news, it is difficult to determine ad inventory online because traffic is determined by the reader. As a result, digital media sites cannot promise ad space and end up underselling their websites.

– Advertising on digital media sites is also hard to display and is not as engaging as it is in print and broadcast mediums. Digital media sites have a disadvantage in this area because advertisers tend to pay more for more engaging and entertaining ads.

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