Newsrooms: Below 40,000 Full-time Employees
Newsrooms (USA) are below 40,000 full-time professional employees for the first time since 1978; http://eicker.at/NewsMedia2013
Newsrooms (USA) are below 40,000 full-time professional employees for the first time since 1978; http://eicker.at/NewsMedia2013
Estimates for newspaper newsroom cutbacks put the industry down 30% since its peak in 2000; http://eicker.at/NewsMedia2013
Pew: 8th annual report on health and status of American journalism; State of News Media 2011: http://eicker.at/NewsMedia2011
The state of the U.S. news media improved in 2010, at least in comparison with a dismal 2009. Newspapers were the only major media sector to see continued ad revenue declines, down 6.4%. (After our report was published, the Newspaper Association of America released its final tally and put the drop at 6.3%.) But as online news consumption continues to grow – it surpassed print newspapers in ad revenue and audience for the first time in 2010 – a more fundamental challenge to journalism also became clearer. The news industry in the digital realm is no longer in control of its own future, according to the State of the News Media report from the Pew Research Center’s Project for Excellence in Journalism.
Online, news organizations increasingly depend on: independent networks to sell their ads, on aggregators and social networks to deliver a substantial portion of their audience, and now, as news consumption becomes more mobile, on device makers (such as Apple) and software developers (Google) to distribute their content. And the new players take a share of the revenue and in many cases, also control the audience data.
“In a world where consumers decide what news they want and how they want to get it, the future belongs to those who understand the audience best, and who can leverage that knowledge with advertisers,” said PEJ Director Tom Rosenstiel. “Increasingly that knowledge exists outside of news companies.”
These are some of the conclusions in the eighth annual State of the News Media report, which takes a comprehensive look at the health and status of the American news media: This year’s study includes detailed looks at the eight major sectors of media. The special reports this year include a survey about the role of mobile technology in news consumption and the willingness of people to pay for their local newspaper online, a look at emerging economic models in community news and a study of how the U.S. newspaper business is faring compared with other nations.
The Who Owns the News Media database allows users to compare companies by various indicators, explore each media sector and read profiles of individual companies. And in the Year in the News Interactive, users can explore PEJ’s comprehensive content analysis of media performance based on 52,613 stories from 2010.
Among the study’s key findings:
Mobile has already become an important factor in news: Nearly half of all Americans (47%) now get some form of local news on a mobile device, according to a new survey in this year’s report, produced by PEJ with Pew Internet and American Life Project in partnership with the Knight Foundation. As of January 2011, 7% of Americans reported owning some kind of electronic tablet, nearly double the number four months earlier. But the movement to mobile doesn’t guarantee a revenue source. To date, even among early adaptors, only 10% of those who have downloaded local news apps paid for them.
Online outpaces newspapers: Fully 46% of people now say they get news online at least three times a week, surpassing newspapers (40%) for the first time. Only local TV news is a more popular platform in America now (50%). In another milestone, more money was spent on online advertising than on newspaper advertising in 2010: Online advertising overall grew 13.9% to $25.8 billion in 2010, according to data from eMarketer. While eMarketer does not offer a print ad revenue figure, we estimate the newspaper took in $22.8 billion in print ad revenue in 2010. (We estimate online ad revenue at newspapers to be about $3 billion.)
Online news hires may have matched newspaper cuts for the first time: Large national online-only news operations began to get into the creation of original reporting in a significant way in 2010. AOL hired nearly 1,000 employees, over half of whom went to the new local news venture Patch.com. Bloomberg Government expects to number 150 journalists and analysts by the end of 2011, doubling Bloomberg’s Washington bureau and Yahoo added several dozen reporters across news, sports and finance. These hiring increases appeared to have compensated for the 1,000 to 1,500 job losses the study estimates the newspaper industry suffered in 2010.
More grim news for newspapers: The newspaper sector endured another year of revenue and audience declines. Advertising revenues fell by roughly 6.4% in 2010 from the year before. Weekday circulation fell 5% and Sunday fell 4.5%. Seven of the top 25 newspapers in the United States are now owned by hedge funds, which had virtually no role in the industry a few years ago. Many of these new owners are turning to other outsiders to turn the business around. One potential silver lining is the finding that 23% of Americans said they would pay $5 a month for an online version of their local paper if the print version were to perish.
Every media sector is losing audience now except online: For the first time in at least a dozen years, the median audience declined at all three cable news channels. CNN suffered most with median prime-time viewership, falling 37% in 2010; Fox lost 11%, and MSNBC 5%. In aggregate, the median viewership fell 13.7% across the entire day in 2010. Prime-time median viewership fell even more, 16% to an average of 3.2 million, according to PEJ’s original analysis of Nielsen Market Research data. Daytime fell 12%.
Local TV wins 2010 revenue race: Among traditional media, local TV may have had the best year financially. Revenue rose 17%, exceeding projections, thanks in part to a 77% increase in auto advertising and a record $2.2 billion in political advertising for the midterm elections. And, to boost audience, local TV has added newscasts at 4:30 AM in 69 cities; more than double the startups in that time slot a year ago. Nonetheless, when adjusted for inflation, average station revenue has still dropped by almost half in the past nine years.
AM FM radio listening may be on the brink of a major change – and decline: Radio has remained among the most stable media platforms, largely because AM and FM remained the primary listening format in automobiles. That may be about to change. Toyota is about to put online radio in all its models and Pandora has made an agreement with Pioneer that would include its online radio service in the cars of at least six additional auto manufacturers by the end of 2011. Meanwhile, Audio’s foray into HD radio seems to be failing. Only 31% of Americans have even heard of it and the number of stations converting to HD dropped substantially in 2010.
The report is the work of the Pew Research Center’s Project for Excellence in Journalism, a nonpolitical, nonpartisan research institute: The study is funded by The Pew Charitable Trusts and was produced with the help of a number of collaborators, including Rick Edmonds of the Poynter Institute, Deborah Potter of Newslab and a host of industry readers.
Its true. This is what most printing companies were worried about a decade ago. How has this affected the development of new printing technology… esspecially for newpapers ?
Well, there’s eInk, eReaders with different screen technologies, publication systems etc. pp. – Anyway, personally I do not believe in a recovery of “print”. At least not in developed countries. Print’s got a hype around the world, but not where electronic devices have taken over…
Merger of The Daily Beast and Newsweek: combined newsrooms and ad sales, independent brands? http://eicker.at/NewsweekBeast
Newsweek: “Newsweek magazine and The Daily Beast, an operating company of IAC, announced today they have agreed to merge their operations in a joint venture to be owned equally by Sidney Harman and IAC. – The new entity will be called The Newsweek Daily Beast Company. The directors of the joint venture will include Dr. Harman as Executive Chairman, IAC Chairman Barry Diller, and one director each to be appointed from either side. … ‘I see Newsweek and the Beast as a marriage between Newsweek’s journalistic depth and the vibrant versatility The Daily Beast has realized on the web,’ said Ms. Brown. ‘The metabolism of The Daily Beast will help power the resurgence of Newsweek and Newsweek amplifies the range of talent and audience The Daily Beast can reach. The two entities together offer writers, photographers and marketers a powerful dual platform.‘ … ‘Consumers and advertisers value media distributed across multiple platforms,’ said Mr. Colvin. ‘The merger of The Daily Beast and Newsweek audiences creates a powerful global media property for the digital age.‘”
Brown, TDB: “Some weddings take longer to plan than others. The union of The Daily Beast and Newsweek magazine finally took place with a coffee-mug toast between all parties Tuesday evening, in a conference room atop Beast headquarters, the IAC building on Manhattan’s West 18th Street. The final details were only hammered out last night. – What does this exciting new media marriage mean? It means that The Daily Beast’s animal high spirits will now be teamed with a legendary, weekly print magazine in a joint venture, named The Newsweek Daily Beast Company, owned equally by Barry Diller’s IAC and Sidney Harman, owner (and savior) of Newsweek. … It takes two inspired entrepreneurs like Barry Diller and Sidney Harman to undertake such a challenging media experiment. … Both of us look forward to joining with Sidney Harman, who made his fortune and reputation as founder of Harman International, the worldwide audio manufacturer, and has a mind that’s alive with a cultural curiosity that’s exactly what you need to succeed in the publishing world. I very much admire his passion to restore Newsweek to its glory days, and with a bit of luck and a lot of hard work, we will. Join us for the journey!”
Guardian: “Merger talks reportedly broke down in late October because Sidney Harman, who bought Newsweek in August for $1, balked at terms that denied him the power to dismiss Brown while giving the British editor freedom to report to an independent board.”
NYT: “The arrangement is in many ways a win-win for both sides, with Mr. Harman getting a respected editor who will generate buzz around a magazine that many in the publishing world had left for dead, and Ms. Brown gaining an editing job back in a well-known publication. – It also gives Mr. Diller, a member of the board of The Washington Post Company, the longtime former owner of Newsweek, a print magazine. That has the potential for far more revenue than The Daily Beast, a digital news and aggregation enterprise that has been neither fish nor fowl.”
NYT: “People who have spoken with and consulted Mr. Diller on the Newsweek talks said that over the course of the discussions with Sidney Harman, the magazine’s new owner, Mr. Diller became increasingly enamored with the idea of idea of coupling his two-year-old start-up with one of the most established brands in print journalism. … The merger is likely to come with other forms of consolidation. One of the main reasons the merger appealed to Mr. Diller and Mr. Harman was that combining the newsrooms and business sides would allow them to reduce staffing. When asked about possible job cuts on Friday, Ms. Brown said, ‘We’re going to have to look at the whole business model, the whole editorial model, and we’ll have to make our assessments.‘”
AdAge: “It remains to be seen how the marriage works once the honeymoon is over. Back when the deal seemed dead, Ms. Brown seemed to think that walking away was the best idea. The ‘complexities’ of Newsweek’s ‘infrastructure, legacy and our desire to stay nimble ultimately made this not the right decision at this time,’ she said then in an email to The New York Times.”
pC: “One of the big questions as the two media outfits come together is whether they can both rein in costs or whether this will compound their respective cash flow problems. At the time of Harman’s purchase of Newsweek barely two months ago, the magazine was expected to lose another $20 million by the end of the year. Meanwhile, Daily Beast, which just celebrated its second anniversary in October, will lose about $10 million, according to the WSJ.”
TC: “Combining the two news brands would be a disaster. Just look at what each publication stands for. Newsweek is a storied publication whose tag line is, ‘What Matters Most.’ The Daily Beast’s, meanwhile, is. ‘Read This Skip That.’ … The plan seems to be to combine the newsrooms and the ad sales, but keep the properties independent. The magazine will be a place for longer narratives and investigative pieces. The web will be for breaking news. … IAC confirms the two sites will likely be combined under the Daily Beast. – Comscore estimates that the Daily Beast is pulling in 2.9 million unique visitors a month, while Newsweek.com is attracting 5.4 million. But those are two very different audiences looking for different things.”
Newspapers are switching from reader surveys to web analytics: more scientific decisions finally; http://j.mp/cXklA1
Steiger, Pro Publica (Web, About): “Unsere Absicht ist es, Machtmissbrauch aufzudecken”; http://is.gd/WMl
NJL: “Predictions for Journalism 2012 – To close out 2011, we asked some of the smartest people we know to predict what 2012 will bring for the future of journalism.”
NJL, Carrie Brown-Smith: “The social media bubble may burst, and more predictions for 2012 – In 2012 we will see a growing gap between newsrooms that are innovating and those that are…not. – 2011 saw a number of promising examples news organizations going beyond ‘digital first’ platitudes to actually trying things and making it work, and I’m optimistic we will see this trend continue. … 2012 will be a good year for local television. … 2012 *might* see a bursting of the social media bubble, or at least convince us that it is harder game to play than we thought. – This might seem odd coming from an avid social media user who developed two new courses on it for our journalism department and who even has been christened with that dreaded ‘social media guru’ title on more than one occasion [ack]. And assuredly, I do think social media is an incredibly important tool for news organizations to use to promote their content, improve their reporting, and engage their audiences… Journalism schools will increasingly step up to the plate to play a leadership role in journalism innovation in 2012.”
NJL, Dave Winer: “We need to improve tech criticism. Here’s how. – At the end of this year I’m thinking about the need for proper criticism of software, alongside other arts like theater, movies, music, books, travel, food and architecture. It’s finally time to stop being all gee whiz about this stuff. Tech is woven into the fabric of our culture, as much as or more so than the other arts. And it’s headed toward being even more interwoven. – We all need this, on all sides of the art. As users and creators. … The goal would be to move away from the lone inventor myth and see tech projects as more like film production or a even more apt, a TV series. Software is a process.”
NJL, Nicholas Carr: “2012 will bring the appification of media – For years now, the line between the software business and the media business has been blurring. Software applications used to take the form of packaged goods, sold through retail outlets at set prices. Today, as a result of cloud computing and other advances, applications look more and more like media products. … As traditional media companies have moved to distribute their wares in digital form – as code, in other words – they’ve come to resemble software companies. … The old general-purpose web, where everyone visited the same sites and saw the same stuff, is rapidly being supplanted by specialized packages of digital content geared to particular devices – iPhone, iPad, Android, BlackBerry, Kindle, Nook, Xbox – or to particular members-only sites like Facebook and Google+. … Apps are as much content-delivery services as they are conventional software programs. Newspapers, magazines, books, games, music albums, TV shows: All are being reimagined as apps. Appified, if you will. – Appification promises to be the major force reshaping media in general and news media in particular during 2012. … Appification opens to newspapers the powerful marketing and pricing strategy that the Berkeley economist (and now Google executive) Hal Varian dubs ‘versioning.’ Long a cornerstone of the software business, versioning is the practice of creating many versions of the same underlying informational product, packaging them in different ways, and selling them at different prices to different sets of customers. … We already see versioning strategies at work in the ‘metered’ programs operated by a growing number of papers… The orthodox view among online pundits has been that paywalls and subscription fees won’t work for general-interest newspapers, that people simply won’t pay for a bundle of news online. … That won’t mean the end of the industry’s struggles, but it does portend a brighter future. And that’s good news.“