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Credit:
Bizsetup Group
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Changing
Media Landscape Not without Risks
BY
IDN MEDIA WATCH
PARIS
(IDN) – A new report has confirmed that the changing global media
landscape offers fresh opportunities and is, at the same time, fraught
with risks that might jeopardize democracy.
The report provides an insight into the international newspaper market
and its evolution, with particular emphasis on its economics, the
development of online news, related opportunities and challenges and
policy approaches.
Analysing the evolving newspaper publishing industry, its economics and
the downturn, the report of the Organisation for Economic Cooperation
and Development (OECD) says:.
After very profitable years, newspaper publishers in most OECD countries
face declining advertising revenues, titles and circulation. The
economic crisis has enlarged this downward development.
About 20 out of 30 OECD countries face declining newspaper readership,
with significant decreases in some OECD countries. Newspaper readership
is usually lower among younger people who tend to attribute less
importance to print media.
The regional and local newspapers are particularly affected and 2009 was
the worst year for OECD newspapers, with the largest declines in the
United States, the United Kingdom, Greece, Italy, Canada, and Spain.
Employment losses in the newspaper industry have intensified since 2008
particularly in countries such as the United States, Britain, the
Netherlands and Spain.
'THE DEATH OF THE NEWSPAPER'
"However, large country-by-country and title-by-title differences
and the data currently do not lend themselves to make the case for 'the
death of the newspaper', in particular if non-OECD countries and
potential positive effects of the economic recovery are taken into
account," says the report released on June 16.
The highlights of the report on the economics of the newspaper industry
are:
On the revenue side, the global newspaper publishing market derives
about 57 per cent of its revenues from advertising. The reliance on
advertising is extremely high in countries such as the United States.
On average, online advertising only accounted for around four per cent
of total newspaper revenues in 2009, and suffered an acute decline. In
general, the online revenues of newspapers are miniscule in comparison
to total revenues and online revenues of other digital content
industries.
On the other hand, costs unrelated to editorial work such as production,
maintenance, administration, promotion and advertising, and distribution
dominate newspaper costs. These large fixed costs make newspaper
organisations more vulnerable to the downturns and less agile in
reacting to the online news environment.
ONLINE NEWS
About online news: the report says:
In some OECD countries, more than half of the population read newspapers
online -- up to 77 per cent in South Korea -- but at the minimum 20 per
cent read newspapers online. The willingness to pay for online news
remains low.
For the most part reading news online complements other forms of news
reading. Most surveys show that active offline newspaper readers tend to
read more news online. Countries such as South Korea where offline
newspaper reading is less popular than online newspaper reading are the
exception.
While younger age groups are much more active online news readers, it is
usually slightly older groups -- 25-34 year-olds -- who are most active
in most OECD countries.
"Despite these findings, the share of people who only read online
news is likely to grow rapidly with new generations who start using the
Internet early in life. The real concern is that a significant
proportion of young people are not reading conventional news at
all," says the report
The report points out that:
In all OECD countries, Internet traffic to online news sites has grown
rapidly. About 5 per cent of all Internet visits are related to reading
news online, which is a conservative estimate.
More recently newspaper websites have seen strong growth in their own
pages, with large newspapers reporting several million unique visitors
to their pages per month.
Search engines and their news services are very important in terms of
referring Internet traffic to other online news sources.
The future of news creation and distribution holds out both
opportunities and challenges because the impacts of the changing media
landscape on news are pulling in two opposite directions.
"One extreme is that online and other new forms of more
decentralised news will liberate readers from partisan news monopolies
which have tended to become more concentrated and to dominate the
production and access to news," says the report.
It adds: "The other extreme is that the demise of the traditional
news media is with us (partially caused by the rise of the Internet),
and with it an important foundation for democratic societies is at
risk."
Discussing business and policy issues, the report says: "Given the
central role of news for democratic societies, the evolutions of news
creation and distribution are a matter of public interest. The question
is whether and how the production of high-quality and pluralistic news
content can be left to market forces alone."
Some OECD countries have resorted to short-term emergency measures in
order to financially help the struggling newspaper industry. At the same
time, the question is currently being debated what potential roles
government support might take in preserving a diverse and local press
without putting its independence at stake.
Support measures and topics being debated include: (i) the improvement
or intensification of existing state support policies (direct or
indirect subsidies) and an extension to online news providers; (ii) new
approaches to the protection of newspaper content, (iii) the relaxation
of competition and media diversity laws; (iv) the role of public
broadcasters; and (v) the reliability and governance of online
news.
[Source:
IDN-InDepthNews
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