Usually in March we attend an internet conference in New York City to hear the latest tales of woe affecting the Newspaper business. This year there was a little different message.
Newspapers apparently have stabilized after a decade of disruption to their delivery model (print) that has existed for centuries. Many Newspaper companies noted substantial sales declines, owing mainly to shifting revenues that have gone to online advertising or used in a promotional context (coupons).
This year, the warning bells were sounded for television and, to an extent, radio. Rather than watching major networks or listening to local radio, consumers are quite able to stream the content they want, when they want it. Digital TV, via satellite or cable, was a pre-cursor to what is coming. Dozens if not hundreds of channels meant the large networks no longer had a corner on the market. This of course will eventually lead to revenue shifts for that industry as well, as consumers choose to access free programming on-line.
Oddly, we see younger folk multi-tasking between television, mobile phones and tablets routinely. It is hard to keep up.
In addition to numerous high-profile speakers, conference organizers had a panel of “20-somethings.” Two females and two males in their 20s, addressed the audience with their impressions of the digital world, and disclosed their habits for online usage.
Surprisingly, they weren’t keen to subscribe to cable or satellite, opting instead for a wireless option via their mobile phone or tablet.
“Free” was a theme that resonated with all young speakers. Of course, this desire for free can be understood for what it is. All of us like a bargain, and for students or people not long out of school, money can be tight.
When the question of media sources came to light, however, one young woman suggested Facebook as her News feed. This caused a grunt and a guffaw from an Arizona Newspaper man sitting next to us in another case of shooting the messenger. We took the comment from the student as merely an innocent, telling statement. The other 20-somethings rhymed off various sites, but very few were known to us. Legacy media, particularly the large conglomerates, have a two-fold problem on the horizon.
First off, the shift in eyes to sources other than the major networks will impact advertising revenue. Secondly, those revenues from viewers were the sources to fund new programming, shows and News operations.
While the disruption of the mainstream media continues, viewers and readers would be wise to restrain their demands and cheers for free content.
Some online organizations have set up pay-walls or metered systems to try and offset the incredible costs of News collection. Others are now deploying print models to offset the absence of online revenue. It’s an interesting time for the News business.
While free is great and meets consumer demands, a more mature conversation is needed.
Without solid, dependable News organizations backed by consistent revenue, society risks the very independence it seeks online for free.
