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Reuters Tim Gardam and David A RISJ REUTERS REUTERS CHALLENGES INSTITUTE for the STUDY of INSTITUTE for the CHALLENGES JOURNALISM STUDY of JOURNALISM | What’s Happening to Our News What’s What’s Happening to Our News An investigation into the likely impact of the digital revolution on the economics of news publishing in “I think the report is the most analytical,most thoughtful and best researched piece of work I have seen on this or related the UK subjects. It is also superbly written.” Stewart Purvis, Andrew Currah Partner for Content and Standards, Ofcom “There is no more urgent need in journalism than facing honestly the challenges brought on by change - and finding opportunities there - to decide as a society what kind of news we can and must have to stay informed.” Jeff Jarvis, Associate Professor at the City University of New York's Graduate School of Journalism and director of the interactive journalism program; and a Guardian columnist on new media The author,Dr Andrew Currah, is a lecturer at the University of Oxford , specialising in the digital economy and the future of the internet. His work has been published in a variety of international journals, as well as edited collections. He is also a freelance consultant and a regular contributor to Oxford Analytica, with responsibility for their coverage of digital and internet-related topics. Currah RISJ CHALLENGES SELECTED RISJ PUBLICATIONS CHALLENGES present findings, analysis and recommendations from Oxford’s Reuters Tim Gardam and David A. L. Levy (eds) Institute for the Study of Journalism. The Institute is dedicated to the rigorous, international The Price of Plurality: Choice, Diversity and Broadcasting comparative study of journalism, in all its forms and on all continents. CHALLENGES Institutions in the Digital Age muster evidence and research to take forward an important argument, beyond the mere published in association with Ofcom expression of opinions. Each text is carefully reviewed by an editorial committee, drawing where necessary on the advice of leading experts in the relevant fields. CHALLENGES John Lloyd and Julia Hobsbawm remain, however, the work of authors writing in their individual capacities, not a collective The Power of the Commentariat expression of views from the Institute. published in association with Editorial Intelligence Ltd EDITORIAL COMMITTEE Colin Bundy David Levy Tim Gardam Geert Linnebank CHALLENGES Timothy Garton Ash John Lloyd Elaine Hernen Henrik Örnebring James Painter Counter-Hegemonic News: A case study of Al-Jazeera English and Telesur The editorial advisors on this CHALLENGE were John Lloyd and Geert Linnebank. Floriana Fossato and John Lloyd with Alexander Verkhovsky Published by the Reuters Institute for the Study of Journalism, Department of Politics and The Web that Failed: How opposition politics and independent International Relations, University of Oxford, 13 Norham Gardens, Oxford, OX2 6PS initiatives are failing on the internet in Russia Tel: 01865 611090 Fax: 01865 611094 http://reutersinstitute.politics.ox.ac.uk Forthcoming CHALLENGES Cover illustration by Gerry Black Typeset by the Medical Informatics Unit, NDCLS, University of Oxford. Tel: 01865 222746 Nik Gowing on Printed by Oxuniprint, Oxford. Tel: 01865 844916 The Tyranny of Real Time Text © Dr Andrew Currah 2009; Visiting Fellow at the Reuters Institute for the Study of Stephen Coleman on Journalism and Lecturer, Centre for the Environment, University of Oxford. News Media and Public Trust All additional material © Reuters Institute for the Study of Journalism. The moral rights of the author have been asserted. Stephen Whittle and Glenda Cooper on Intrusion vs. Investigation All rights reserved. No part of this publication may be reproduced or disseminated or transmitted in any form or by any means , electronic, mechanical, photocopying, recording John Kelly on or otherwise, or stored in a retrieval system, or otherwise used in any manner whatsoever Citizen Journalism without prior written permission, except for permitted fair dealing under the Copyright, Designs and Patents Act 1988. Glenda Cooper on Disaster Coverage © RISJ January 2009 -- ISBN 978-0-9558889-3-9 ACKNOWLEDGMENTS Funding for this report was provided by The Joseph Rowntree Reform Trust Ltd and David Ure RISJ CHALLENGES What’s happening to our news An investigation into the likely impact of the digital revolution on the economics of news publishing in the UK Andrew Currah REUTERS INSTITUTE for the STUDY of JOURNALISM Contents Foreword by Mandy Cormack 1 Foreword by Tim Gardam 3 Summary 5 List of Figures and Tables 9 Chapter 1. Introduction 11 1.1. A digital revolution is transforming news publishing 11 1.2. The economic foundations of news are weakening 13 1.3. What’s happening to our news 16 Chapter 2. The news consumer 19 2.1. At an aggregate scale, television and newspapers still attract 21 the largest audiences of news consumers in the UK 2.2. Despite their dominant positions, television news viewing 23 and newspaper circulation show signs of a long-term decline in the UK 2.3. The nature and scale of news consumption is shifting to 26 varying degrees in different segments of the market 2.4. For the news consumer, the digital revolution creates an 28 abundance of choice but a scarcity of attention 2.5. Search engines and aggregators are now the principal gateway 31 to the digital news consumer, thus wresting control from publishers Chapter 3. The economics of news 37 3.1. News publishers face long-term declines in their core 38 businesses, as advertising spend migrates to digital platforms 3.2. To effectively monetise their web content, news publishers 40 will need to harness the capabilities of internet advertising formats iii RISJ CHALLENGES | What’s happening to our news 3.3. As the digital revolution gathers pace, news publishers are 43 struggling to generate significant revenues from their web properties 3.4. The web is redefining the geographical reach of media brands, 45 sparking competition among news publishers for foreign audiences 3.5. The digital clickstream is reshaping the content strategy of 47 news publishers, albeit in an incremental and covert fashion 3.6. Whilst the BBC enjoys considerable digital success, there is 50 no evidence that its web presence significantly harms commercial news publishers in the UK Chapter 4. The sources of news 59 4.1. The PR industry now plays a powerful and pivotal role in the 61 gathering, packaging and distribution of news and information 4.2. The mutual exchange of information between journalists and 66 PR is dependent on relationships of trust and credibility 4.3. The digital revolution is transforming the audience into 70 co-producers and co-distributors of news and other information Chapter 5. The digital vision 77 5.1. The response of publishers is fuelled by a siege mentality, 78 rather than a clear projection and valuation of the digital market 5.2. The integration of newsrooms is creating added complexity 81 and is taking publishers beyond their core competencies 5.3. News publishers are in danger of morphing into ‘digital 85 windsocks’, shaped by the direction of the prevailing clickstream Chapter 6. The news value chain 93 6.1. There is a net contraction in the geographical reach of 95 newsgathering networks, both domestically and internationally 6.2. As they restructure, news publishers are searching for more 98 agile, flexible and cost-efficient models of newsgathering 6.3. Web technologies are radically expanding the scope of 103 newsgathering and the investigative capabilities of journalists 6.4. The digital arms race engenders a slavish dependence on 106 technology, which valorises speed over contemplation and reflection 6.5. The digital success of publishers will depend upon cultural 111 and operational changes in the processing and distribution of news iv Contents Chapter 7. A democratic deficit? 119 7.1. The collateral damage of the digital revolution is the reduced 121 attention of journalists, and as a result, the ‘quality’ of the news agenda 7.2. The operational pressures of the digital newsroom are casting 123 a shadow over the factual accuracy of the news 7.3. The digital value chain favours a compressed, personality- 129 driven approach to the news, which threatens to veil the basic facts and context of news stories 7.4. The digital revolution strengthens the economic rationale of 133 sensationalist reporting, limiting debate and exposing the public to ‘harmful’ news Chapter 8. Digital possibilities 141 8.1. To safeguard the provision of public interest news, the 142 government should review the conditions and structure of UK taxation and charitable law 8.2. The visibility and civic value of news on the web could benefit 148 from a voluntary ‘digital kitemark’, oriented around accountability and transparency 8.3. To nurture an informed and participatory digital citizenry, 154 government and civic education should be redesigned to harness the potential of the web Acknowledgements 161 Interviewees 163 Suggested Reading 165 v Foreword by Mandy Cormack, a director of the Joseph Rowntree Reform Trust The Joseph Rowntree Reform Trust has, since its inception, taken an interest in supporting press and broadcasting freedom, and in particular the protection of the public service ethic. Both principles have a central role in the functioning of a democratic state, providing citizens with the information on which to participate in the democratic process and holding those in authority to account for their actions and omissions. At the heart of this is the news-making process—the agenda shaping, gathering and distribution of news about politics, society and the economy, and the world in which we live. In May 2007, the Reuters Institute for the Study of Journalism hosted a workshop ‘Money and News’ sponsored by the Joseph Rowntree Reform Trust. The purpose of the workshop was to explore the impact of the media’s commercial operation on the conduct of its democratic news- making role in the twenty-first century.
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