the State of the Newspaper Industry

The newspaper industry alone shed 28% of its employees since its peak in 2001, according to The American Society of News Editors’ annual newsroom census, and in 2012, that number is estimated to have dipped below 40,000 employees for the first time since the census began in 1978.ScreenHunter_653 Jul. 05 06.28.jpg

From 1998 through 2010, eighteen newspapers and two newspaper chains closed all of their foreign bureaus, according to a tally by American Journalism Review. Other outlets reduced the number of correspondents in their bureaus.ScreenHunter_652 Jul. 05 06.26.jpg

Estimates for newspaper newsroom cutbacks in 2012 put the industry down 30% since 2000 and below 40,000 full-time professional employees for the first time since 1978. In local TV, our special content report reveals, sports, weather and traffic now account on average for 40% of the content produced on the newscasts studied while story lengths shrink. On CNN, the cable channel that has branded itself around deep reporting, produced story packages were cut nearly in half from 2007 to 2012.

A growing list of media outlets, such as Forbes magazine, use technology by a company called Narrative Science to produce content by way of algorithm, no human reporting necessary. ScreenHunter_654 Jul.jpg

This adds up to a news industry that is more undermanned and unprepared to uncover stories, dig deep into emerging ones or to question information put into its hands. And findings from our new public opinion survey released in this report reveal that the public is taking notice. Nearly one-third of the respondents (31%) have deserted a news outlet because it no longer provides the news and information they had grown accustomed to.

At the same time, newsmakers and others with information they want to put into the public arena have become more adept at using digital technology and social media to do so on their own, without any filter by the traditional media.  They are also seeing more success in getting their message into the traditional media narrative.  

So far, this trend has emerged most clearly in the political sphere, particularly with the biggest story of 2012—the presidential election. A Pew Research Center analysis revealed that campaign reporters were acting primarily as megaphones, rather than as investigators, of the assertions put forward by the candidates and other political partisans.  That meant more direct relaying of assertions made by the campaigns and less reporting by journalists to interpret and contextualize them. The campaigns also found more ways than ever to connect directly with citizens.  

There are signs of this trend that carry beyond the political realm, as more and more entities seek, by various means, to fill the void left by overstretched editorial resources.

In circumventing the media altogether, one company, Contently, connects thousands of journalists, many of them ex-print reporters, with commercial brands to help them produce their own content, including brand-oriented magazines. In early March, Fortune took that step, launching a program for advertisers called Fortune TOC—Trusted Original Content—in which Fortune writers, for a fee, create original Fortune-branded editorial content for marketers to distribute exclusively on their own platforms.

Efforts by political and corporate entities to get their messages into news coverage are nothing new. What is different now—adding up the data and industry developments—is that news organizations are less equipped to question what is coming to them or to uncover the stories themselves, and interest groups are better equipped and have more technological tools than ever.

 

While traditional newsrooms have shrunk, however, there are other new players producing content that could advance citizens’ knowledge about public issues.

They are covering subject areas that would have once been covered more regularly and deeply by beat reporters at traditional news outlets—areas such as health, science and education.

For news organizations, distinguishing between high-quality information of public value and agenda-driven news has become an increasingly complicated task, made no easier in an era of economic churn.

 

 

3.2

Six major trends of the year of 2012:

The effects of a decade of newsroom cutbacks are real – and the public is taking notice. Nearly a third of U.S. adults, 31%, have stopped turning to a news outlet because it no longer provided them with the news they were accustomed to getting. Men have left at somewhat higher rates than women, as have the more highly educated and higher-income earners—many of those, in other words, that past Pew Research data have shown to be among the heavier news consumers. With reporting resources cut to the bone and fewer specialized beats, journalists’ level of expertise in any one area and the ability to go deep into a story are compromised.  Indeed, when people who had heard something about the financial struggles were asked which effect they noticed more, stories that were less complete or fewer stories over all, 48% named less complete stories while 31% mostly noticed fewer stories. Overall, awareness of the industry’s financial struggles is limited. Only 39% have heard a lot or some. But those with greater awareness are also more likely to be the ones who have abandoned a news outlet.

The news industry continues to lose out on the bulk of new digital advertising. Two new areas of digital advertising that seemed to bring promise even a year ago now appear to be moving outside the reach of news: mobile devices and local digital advertising. Over all, mobile advertising grew 80% in 2012 to $2.6 billion. Of that, however, only one ad segment is available to news: display. While mobile display is growing rapidly, 72% of that market goes to just six companies—including Facebook, which didn’t even create its first mobile ad product until mid-2012. Local digital advertising, a critical ad segment for news as the majority of outlets cater to a local audience, is also growing—22% in 2012. But improved geo-targeting is allowing many national advertisers to turn to Google, Facebook and other large networks to buy ads that once might have gone to local media. In addition, Google and Facebook are also improving their ability to sell ad space to smaller, truly local, advertisers, again taking business that once went to local media. It is hard to see how news organizations will secure anything like their traditional share.  Google is now the ad leader in search, display and mobile.  Once again, in key revenue areas, it appears the news industry may have been outflanked by technology giants.

 

http://stateofthemedia.org/2013/overview-5/

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In many ways, 2013 and early 2014 brought a level of energy to the news industry not seen for a long time. Even as challenges of the past several years continue and new ones emerge, the activities this year have created a new sense of optimism – or perhaps hope – for the future of American journalism.

Digital players have exploded onto the news scene, bringing technological knowhow and new money and luring top talent. BuzzFeed, once scoffed at for content viewed as “click bait,” now has a news staff of 170, including top names like Pulitzer Prize-winner Mark Schoofs, and is the kind of place that ProPublica’s Paul Steiger says he would want to work at if he were young again. Mashable now has a news staff of 70 and enticed former New York Times assistant managing editor Jim Roberts to become its chief content officer. And in January of this year, Ezra Klein left the Washington Post for Vox media, which will become the new home for his explanatory journalism concept. Many of these companies are already successful digital brands – built around an innate understanding of technology – and are using revenues from other parts of the operation to get the news operations off the ground.

Other kinds of new revenue are flowing into news operations as well. A new breed of entrepreneurs – like Jeff Bezos, John Henry and Pierre Omidyar — are investing their own money in the industry, in some cases creating wholly new entities and in others looking to bring new life to long-standing ones.

The year also brought more evidence than ever that news is a part of the explosion of social media and mobile devices, and in a way that could offer opportunity to reach more people with news than ever before. Half of Facebook users get news there even though they did not go there looking for it. And the Facebook users who get news at the highest rates are 18-to-29-year-olds. The same is true for the growth area of online video. Half of those who watch some kind of online video watch news videos. Again, young people constitute the greatest portion of these viewers.

Accompanying this momentum is the question of what it adds up to within the full scope of news that consumers receive. Here the events of the last year get put in some perspective. Our first-ever accounting found roughly 5,000 full-time professional jobs at nearly 500 digital news outlets, most of which were created in the past half dozen years. But the vast majority of bodies producing original reporting still comes from the newspaper industry. But those newspaper jobs are far from secure. Full-time professional newsroom employment declined another 6.4% in 2012 with more losses expected for 2013. Gannett alone is estimated to have cut 400 newspaper jobs while the Tribune Co.  announced 700 (not all of them in the newsroom).ScreenHunter_648 Jul. 04 17.32.jpg

The new money from philanthropists, venture capitalists and other individuals and non-media businesses, while promising, amounts to only a sliver of the money supporting professional journalism. Traditional advertising from print and television still accounts for more than half of the total revenue supporting news, even though print ad revenues are in rapid decline. While seeing some small gains in new revenue streams like digital subscriptions and conferences, total newspaper advertising revenue in 2013 was down 49% from 2003.

Television ad revenue, while stable for now, faces an uncertain future as video becomes more accessible online. What’s more, most of the new revenue streams driving the momentum are not earned from the news product itself.

At this point, fully a quarter of the 952 U.S. television stations that air newscasts do not produce their news programs. Additional stations have sharing arrangements where much of their content is produced outside their own newsroom.     

In digital news, the overlap between public relations and news noted in last year’s State of the News Media report became even more pronounced. One of the greatest areas of revenue experimentation now involves website content that is paid for by commercial advertisers – but often written by journalists on staff – and placed on a news publishers’ page in a way that sometimes makes it indistinguishable from a news story. Following the lead of early adapters like The Atlantic and Mashable, native advertising, as it is called by the industry, caught on rapidly in 2013. The New York Times, The Washington Post and most recently The Wall Street Journal have now begun or announced plans to begin devoting staff to this kind of advertising, often as a part of a new “custom content division.”eMarketer predicts that native ads spending will reach $2.85 billion by 2014.ScreenHunter_651 Jul. 05 06.22.jpg

Many of these publishers initially expressed caution over such ads, with Wall Street Journal editor-in-chief Gerard Baker even describing it as a “Faustian pact.” In the end, though, many publishers eventually came down with a conclusion similar to Baker’s, who said that he was  “confident that our readers will appreciate what is sponsor-generated content and what is content from our global staff,” according to a statement released by The Journal. That may be the case, and it could also be the case that stories created for and paid for by advertisers do not bother consumers as long as they are a good read. At this point, though, there is little if any public data that speak to consumer response one way or the other.

And despite evidence of news consumption by Facebook users—half of whom report getting news across at least six topic areas—recent Pew Research data finds these consumers to have rather low levels of engagement with news sites.

A year ago, the State of the News Media report struck a somber note, citing evidence of continued declines in the mainstream media that were impacting both content and audience satisfaction. As indicated above and throughout this report, many of these issues still exist, some have deepened and new ones have emerged.