State of the News Media 2012
PEJ: State of the News Media 2012 – new devices, platforms spur more news consumption; http://eicker.at/NewsMedia2012
PEJ: State of the News Media 2012 – new devices, platforms spur more news consumption; http://eicker.at/NewsMedia2012
Gerrit Eicker 16:43 on 16. July 2012 Permalink |
PEJ: “The age of mobile, in which people are connected to the web wherever they are, arrived in earnest. More than four in ten American adults now own a smartphone. One in five owns a tablet. New cars are manufactured with internet built in. With more mobility comes deeper immersion into social networking. … Two trends in the last year overlap and reinforce the sense that the gap between the news and technology industries is widening. First, the explosion of new mobile platforms and social media channels represents another layer of technology with which news organizations must keep pace. – Second, in the last year a small number of technology giants began rapidly moving to consolidate their power by becoming makers of “everything” in our digital lives. Google, Amazon, Facebook, Apple and a few others are maneuvering to make the hardware people use, the operating systems that run those devices, the browsers on which people navigate, the e-mail services on which they communicate, the social networks on which they share and the web platforms on which they shop and play. And all of this will provide these companies with detailed personal data about each consumer. … The problems of newspapers also became more acute in 2011. Even as online audiences grew, print circulation continued to decline. Even more critically, so did ad revenues. In 2011, losses in print advertising dollars outpaced gains in digital revenue by a factor of roughly 10 to 1, a ratio even worse than in 2010. When circulation and advertising revenue are combined, the newspaper industry has shrunk 43% since 2000. – The civic implications of the decline in newspapers are also becoming clearer. More evidence emerged that newspapers – whether accessed in print or digitally – are the primary source people turn to for news about government and civic affairs. If these operations continue to shrivel or disappear, it is unclear where, or whether, that information would be reported.”
PEJ – Major Trends: “Mobile may be leading to a deeper experience with news than on the desktop/laptop computer. … Social media are important but not overwhelming drivers of news, at least not yet. … News viewership on television grew in unexpected venues. … More news outlets will move to digital subscriptions in 2012 – as a matter of survival. … As privacy becomes an even larger issue, the impact on news is uncertain. There has always existed a tension between the services that technology companies provide and the data about consumers they gather and then leverage for financial gain. Those tensions have swelled as app technology, new methods for targeting advertising, the rise of Facebook and Google’s new privacy settings intensified the debate how those data are used.”
PEJ – Mobile Devices and News Consumption: Some Good Signs for Journalism: “The migration of audiences toward digital news advanced to a new level in 2011 and early 2012, the era of mobile and multidigital devices. More than three-quarters of U.S. adults own laptop or desktop computers, a number that has been stable for some years. Now, in addition, 44% of adults own a smartphone, and the number of tablet owners grew by about 50% since the summer of 2011, to 18% of Americans over age 18. … [T]he reputation or brand of a news organization, a very traditional idea, is the most important factor in determining where consumers go for news, and that is even truer on mobile devices than on laptops or desktops. Indeed, despite the explosion in social media use through the likes of Facebook and Twitter, recommendations from friends are not a major factor yet in steering news consumption. … Taken all together, the growing body of data suggests that the move toward mobile holds some promising options for news producers, including increasing the amount of overall news being consumed. … The majority of Americans now get news through at least one digital, web-based device. … The most common way that people get news is by going directly to a news organization’s website or app. … Social media, while clearly a part of the digital news experience, is not nearly the driver of news that many have suggested. … For those who get news on both the smartphone and tablet, social networking is a much more popular way to get news. … Consumers who still only get digital news on the desktop/laptop computer have a very different set of behaviors. … While there is no single digital news device, there is a primary one. For now, the desktop/laptop still reigns as the place people get most of their digital news. Fully 82% of people who get news on a computer say that is where they get most of their digital news. But much of that may mainly come from the computer being their only digital option. Again, about half of that group – 43% of all desktop/laptop owners – does not own another device. … [B]rand matters on every device, and seems to matter the most on the tablet. … Search is not far behind as a path to news. … The new survey data also found that a new cohort of news organizers or apps that curate and present news to users, such as Topix or Flipboard, was gaining a sizable place in news consumption. For each device, about a quarter of those news consumers report using news organizing sites or apps like Topix or Flipboard to get news stories. … 67% of those who consume news on both their smartphone and tablet follow news recommendations on Facebook. That compares to 59% who get news on just one of those devices and 41% who get digital news only via the desktop/laptop. Similarly, 39% ever follow news recommendations on Twitter, compared with 24% who just use a smartphone or a tablet and 9% who use only the desktop/laptop.”
PEJ – What Facebook and Twitter Mean for News: “At the moment, Facebook and, to a lesser extent, Twitter, dominate this intersection of social media and news. … Overall, as noted in the companion report, the survey confirms that Facebook and Twitter are now pathways to news, but their role may not be as large as some have suggested. The population that uses these networks for news at all is still relatively small, especially the part that does so very often. Moreover, these social media news consumers have not given up other methods of getting news, such going directly to websites, using apps or through search. In other words, social media are additional paths to news, not replacements for more traditional ones. … Over all, just 9% of digital news consumers very often follow news recommendations from Facebook or from Twitter on any of the three digital devices… On Facebook, the news comes mostly through family and friends. On Twitter, people tend to get news from a broader mix of recommenders. … Twitter news followers tend to be more heavily mobile than the public at large, and they lean toward smartphones in particular.”
PEJ – Newspapers: Building Digital Revenues Proves Painfully Slow: “The newspaper industry enters 2012 neither dying nor assured of a stable future. The industry has rallied around a story about itself – that year-by year it is developing new digital products and new revenue streams to transition from dependence on print advertising. … If this transformation were going well, one would expect the new revenues to get closer each year to replacing ad revenues lost in print. In 2011, according to Newspaper Association of America statistics, online advertising was up $207 million industry-wide compared to 2010. Print advertising, though, was down $2.1 billion. So the print losses were greater than the digital gains by 10 to 1. … Most newspapers are profitable on an operating basis, many with margins in the mid-teens. … Audiences continue to hold up much better than revenues, but after a decade of losses, the case the industry can make to advertisers for premium-priced print ads has weakened. … After several years of stasis, newspapers began changing hands again in late 2011. … Newsrooms continued to shrink as companies, and to remain in the black, felt the need for more rounds of cost reductions. … [A] positive development in 2011 is that after years of talk and no action, the industry began to embrace pay walls for digital content. … A companion development, much less noticed, has been the industry’s launch of a licensing organization, NewsRight, seeking to collect royalties for the content originators from aggregators. … Another bright spot for newspapers in 2011 has been the growth of freestanding affiliated businesses, some digital, others not.”
PEJ – Magazines: Are Hopes for Tablets Overdone? “Magazine publishers’ two main revenue sources remain in print -sales and advertising- and both fell again in 2011. Circulation revenues were lower, as were the number of print ad pages sold. … Readers, meanwhile, are migrating fast to digital and mobile, a move that accelerated in 2011 with the explosion of tablets and smartphone ownership. … The good news for magazine publishers is that the newest mobile devices, particularly tablets, may provide a particularly good environment for magazines. Research shows that people read more long-form content on the new devices and that they spend more time on magazine apps specifically than with those of other media. … Readers have already begun a sharp migration. At Time Inc., 15% of readers now access content in digital form only, while 30% read both online and in print, according to the December 2011 American Magazine Study by Affinity Research. Other publishers show similar trends. … If the revenue shift is slow, however, there is no mistaking the direction: the rapid growth of tablets, e-readers and smartphones is fundamentally altering the landscape for magazine publishers. … With all that as a backdrop for magazine generally, what is the role of the newsweekly in an era of 24/7 digital news and the rapid expansion of mobile devices?”
PEJ – How Community News is Faring: “In 2011, the landscape of community news websites reached a new level of maturity. Some seed grants ran out, there were more startups, some highly publicized closures and a clearer sense of what is needed to succeed. … To survive now, community news sites need to develop multiple revenue streams. … The initial skills that many site founders brought to their new enterprises – often these were journalists leaving old media – are insufficient now. … At the hyperlocal level, sites are beginning to try to make up for what they lack in scale by sharing knowledge. … Experts predict more local sites with niches or special areas of interest will become a trend, focusing on topics such as health care, education and state government. … The future for local and regional sites probably will see increased use of news networks and partnerships – with public radio, local television, even local daily newspapers that may have resisted such alliances just a few years ago.”
PEJ – Local TV: Audience Rise After Years of Decline: “After years of losing audience and revenue, local television news appears to have settled into a kind of equilibrium. Stations made less income in 2011 than the year before, but the decline was about what might be expected in a non-election year. And the overall audience for local TV news grew as stations added newscasts at different times and on additional platforms, including their digital channels. Local stations also expanded their online, mobile and social media offerings, but most have not yet generated a substantial audience.”
PEJ – Digital: News Gains Audience but Loses Ground in Chase for Revenue: “Facebook and other social media are additional distributors of content, but they are also are rivals for advertising revenues. The new tablets, smartphones and other mobile technologies represent new ways to reach audiences, but they are also a new wave of new technology that news companies need to react to. Even as traditional media institutions continue to struggle to find a sustainable model after more than a decade of declining advertising revenues and digital upheaval, the new wave threatens to shift the media landscape out from under them once more. … The extent to which news consumers rely on social media is rapidly evolving. … Social media … have become a part of the digital fabric and many news leaders recognize it as an increasingly critical tool in gaining new digital readers and building a loyal, highly engaged audience. … Users also spent a good deal of time there: on average, Facebook users spent 423 minutes (or 7 hours) on the site in December. In a PEJ study of the top 25 news sites, by contrast, CNN had the highest average time per user, but it was just 30 minutes per month. … If the first 15 years of the web proved difficult, the next 5 look only more so. The basic axiom of legacy media is that they are trading legacy dollars for digital dimes – that they cannot monetize their enormous audience online to nearly the degree that they could generate revenue per person on television or in print. The rapid growth of mobile computing and social media will only make that transition more complex. … One part of that challenge for news is that the kind of advertising that news sites rely on represents a relatively small portion of digital ad revenues. Instead, as we have noted here in past reports, search advertising generates the largest share of digital revenue, roughly 50% of the market. … Display ads will also continue to see strong growth, thanks to the healthy appetite for banner ads, the largest segment within display. Banner ads increased 23.9%, to $7.7 billion in 2011. – Whether news sites will be able to take full advantage of that growth, however, is becoming less certain.”
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