Scottish Newspapers and the Crisis of the Print Press: Journalistic Autonomy and Digital Transition in a Liberal Media System
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Scottish newspapers and the crisis of the print press: journalistic autonomy and digital transition in a liberal media system Article (Accepted Version) Dekavalla, Marina (2018) Scottish newspapers and the crisis of the print press: journalistic autonomy and digital transition in a liberal media system. Recherches en Communication, 44. pp. 103-119. ISSN 2033-3331 This version is available from Sussex Research Online: http://sro.sussex.ac.uk/id/eprint/74343/ This document is made available in accordance with publisher policies and may differ from the published version or from the version of record. If you wish to cite this item you are advised to consult the publisher’s version. Please see the URL above for details on accessing the published version. Copyright and reuse: Sussex Research Online is a digital repository of the research output of the University. Copyright and all moral rights to the version of the paper presented here belong to the individual author(s) and/or other copyright owners. To the extent reasonable and practicable, the material made available in SRO has been checked for eligibility before being made available. Copies of full text items generally can be reproduced, displayed or performed and given to third parties in any format or medium for personal research or study, educational, or not-for-profit purposes without prior permission or charge, provided that the authors, title and full bibliographic details are credited, a hyperlink and/or URL is given for the original metadata page and the content is not changed in any way. http://sro.sussex.ac.uk Scottish newspapers and the crisis of the print press: journalistic autonomy and digital transition in a liberal media system Marina Dekavalla, University of Sussex Abstract: This article examines how members of the Scottish newspaper industry view the current crisis of the print press and the future of their titles. It looks at how newspaper companies are attempting to address the challenges posed by digital transition and competition in a small market, and where they believe the solution to this problem lies. The analysis is based on input from interviews with editors and managers as well as circulation data from the last fifteen years. Findings suggest that, in line with the characteristics of a liberal media system, newspaper organisations believe that it is up to the industry, rather than the state, to resolve this systemic issue and to ensure the survival of their products. Keywords: newspapers, Scotland, digital transition, business models, future of news. The print press in most Western countries has faced a dramatic decline over the last twenty years, precipitated by a major change in how the public accesses news, which was introduced by digital platforms. Newspapers in large and small markets alike are losing readers and advertising revenue, which has put into question their future sustainability. For those operating in smaller markets the challenge is arguably greater due to the relatively small potential readership. This is especially the case when they operate near a larger market with bigger players publishing in the same language and competing with the indigenous press. This article explores how this crisis has affected Scottish newspapers and how members of the indigenous press industry view different potential solutions to the problem, originating in state or private initiative. It is based on interviews conducted between 2010 and 2016, as well as circulation data from the last fifteen years. More specifically, interviewees include editors in chief and managing directors, representing Scottish indigenous daily morning titles (the Scotsman, the Herald, the Daily Record, the Courier, and the Press and Journal), as well as the Scottish Newspapers Society, the body that acts for the interests of the industry. The paper focuses particularly on morning titles produced exclusively for a Scottish audience at the time of the interviews, and therefore the sample excludes London-based newspapers, which are also sold in Scotland, as well as evening or weekly local titles targeting individual cities or townsi. Scotland is one of the nations that make up the United Kingdom. It has had a devolved parliament since 1999 and a distinctive public sphere which has been sustained over the three centuries of its union with England. Scotland’s indigenous press has traditionally played a significant part in maintaining this separate space for national debate. Scotland has been negotiating its identity and place in the UK with an independence referendum in 2014 and – at the time of writing - ongoing debate about the possibility of a second referendum in the future. In this context, the availability of platforms for news, democratic deliberation and expression of opinion takes on an even more significant role. In what follows, I shall first discuss the challenges the print press has been dealing with in many Western countries, before exploring how these have affected Scottish newspapers in particular. I will then examine how interviewees from the Scottish press view two potential solutions to the problem: state support and solutions originating in the industry itself. Solving a business model crisis A business model is the way in which an organisation delivers its products or services, generates value and makes a profit from this activity (Fetscherin and Knolmayer, 2004). It is a fundamental logic, which explains how a business creates profit, guides how its operations are managed, and supports its future strategic development (Spieth et al., 2014). Traditionally the dominant business model for newspapers consisted in providing content to paying readers and at the same time selling access to these readers to advertisers. This model sustained the provision of news for several decades because the legacy press was a significant platform for the public to access news as well as for advertisers to reach their targeted demographics. All this changed gradually with the introduction of competition from an increasing number of platforms. In the UK, newspapers reached a peak in their sales in the 1950s, and thereafter have been losing readers, as a result of competition initially with television, and then, at a much more accelerated pace, with online media (Dekavalla, 2015). The decline of the press is a pattern that affects most Western markets and is not unique to Scotland or Europe. To survive the loss of readers and advertising income, traditional media organisations around the world have had to expand online, revise their previous business model and seek “a balance between old and new revenue logics”, a process with which different companies have engaged to different degrees (Leminen et al., 2016, p. 195). The traditional business model, which made the print news industry viable and profitable for many decades, is thus no longer sustainable in either large or small markets. Two routes for resolving this problem dominate public debate, depending on one’s position in relation to market liberal ideals. One is to let the industry find its own way through the crisis, which may involve experiments with different forms of content and monetization, as well as the loss of some of the less successful newspaper titles, but might eventually allow some of the old organisations to survive or new players to emerge. The concern usually expressed about this solution is the possibility of losing not just a few companies, but a public good which contributes to informed citizenry, democratic participation, accountability, and diversity of perspectives (Pickard, 2011). According to this argument, if the market is left to find its own solutions, there is no guarantee that future media business models will remain able to fund news making and this may create a democratic deficit. The second route involves sources of funding for the press from outside the corporate domain. Some of the proposed solutions here include the establishment of non-profit organisations supported financially by institutions, donations or crowd-funding (Pickard, 2011; Cagé, 2016); or state funding for the press. State funding may take the form of direct aid, namely financial assistance to publishers, or indirect aid which could be VAT reductions or exemption, tax breaks or other forms of less direct support, such as public sector advertising (Murschetz, 2014). As Picard (2014) points out, news has always depended on sources other than its consumers for funding, whether these were states, political parties or advertisers. Although newspapers in Western markets have generally been the object of less intervention compared to other industries, Western democracies have and still do intervene in press economics to different degrees, some with direct subsidies (general or selective) and some with indirect support, depending on their broader economic philosophies (Picard, 1985). These economic philosophies vary in different media systems (Hallin and Mancini, 2004), and are important in determining not only the extent to which states support the press, but also whether and in what form newspaper organisations see state support as acceptable. A common objection to state aid, for example, is that it may compromise press freedom and scrutiny of those in power (Nielsen and Linnebank, 2011). Although, as will be seen later in this article, this view is also dominant in the Scottish news industry (particularly among editors) not all forms of state support are seen in this way, even within a media system that is generally oriented towards market liberalism. Until now though, the press industry itself has been the actor most directly dealing with the crisis, even in countries where newspapers enjoy some level of support from the state. The press industry internationally has been seeking a new business model that will allow established brands to survive and monetize online content. They have been experimenting with different forms of digital provision (paywalls, apps for mobile devices, online subscriptions, digital kiosks), the degree of overlap between their digital and physical products, and the pricing of their offering on different platforms (Fetscherin and Knolmayer, 2004).