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Digital Platforms and Australian News Media: Report This may be the author’s version of a work that was submitted/accepted for publication in the following source: Flew, Terry, Suwana, Fiona,& Tam, Lisa (2018) Digital platforms and Australian news media: Report. Digital Media Research Centre, Queensland University of Technology, Australia. This file was downloaded from: https://eprints.qut.edu.au/118270/ c 2018 The Authors and Queensland University of Technology This work is covered by copyright. Unless the document is being made available under a Creative Commons Licence, you must assume that re-use is limited to personal use and that permission from the copyright owner must be obtained for all other uses. If the docu- ment is available under a Creative Commons License (or other specified license) then refer to the Licence for details of permitted re-use. It is a condition of access that users recog- nise and abide by the legal requirements associated with these rights. If you believe that this work infringes copyright please provide details by email to [email protected] License: Creative Commons: Attribution 4.0 Notice: Please note that this document may not be the Version of Record (i.e. published version) of the work. Author manuscript versions (as Sub- mitted for peer review or as Accepted for publication after peer review) can be identified by an absence of publisher branding and/or typeset appear- ance. If there is any doubt, please refer to the published source. DIGITAL PLATFORMS AND AUSTRALIAN NEWS MEDIA: REPORT APRIL 2018 By Professor Terry Flew, Dr. Fiona Suwana and Dr. Lisa Tam, Queensland University of Technology DIGITAL PLATFORMS AND AUSTRALIAN NEWS MEDIA: REPORT / 1 Authored by Professor Terry Flew Digital Media Research Centre, Creative Industries Faculty, Queensland University of Technology Dr. Fiona Suwana, Digital Media Research Centre, Creative Industries Faculty, Queensland University of Technology. Dr. Lisa Tam, QUT Business School, Queensland University of Technology QUT Creative Industries Research Office QUT Creative Industries Faculty Musk Ave Kelvin Grove QLD 4059 Australia Phone +61 7 3138 8114 Email [email protected] Website qut.edu.au/creative-industries CRICOS No. 00213J 2 / DIGITAL PLATFORMS AND AUSTRALIAN NEWS MEDIA: REPORT CONTENTS EXECUTIVE SUMMARY 4 PART A: THE RISE OF INTERNET DISTRIBUTION OF NEWS AND 7 ITS BENEFITS TO CONSUMERS THE CHANGING NATURE OF NEWS PROVISION 7 THE GROWING AUDIENCE FOR INTERNET-DISTRIBUTED 7 NEWS CONSUMER BENEFITS FROM INTERNET-DISTRIBUTED 8 NEWS NEWS VALUE SHIFTING TO AUDIENCES 9 MULTI-HOMING OF NEWS SOURCES 9 PART B: BENEFITS OF INTERNET DISTRIBUTION OF NEWS TO 10 ADVERTISERS PART C: BENEFITS OF INTERNET DISTRIBUTION OF NEWS TO 11 PUBLISHERS BENEFITS OF DIGITAL PLATFORMS FOR JOURNALISTS 11 QUALITY TRENDS WITH ONLINE NEWS 12 EMPLOYMENT FOR AUSTRALIAN JOURNALISTS 13 PART D: COMPETITION IN THE NEWS INDUSTRY IN THE 14 DIGITAL ERA COMPETITION BETWEEN NEWS PROVIDERS IN 14 AUSTRALIA TOP ONLINE NEWS SITES IN AUSTRALIA 16 BUSINESS MODEL CHANGES TO COMPETE IN A DIGITAL 16 ERA STRATEGIES OF TRADITIONAL NEWS BUSINESSES 18 THE RISE IN DIGITAL SUBSCRIPTIONS 19 BEYOND PAYWALLS: NEW WAYS OF FUNDING 20 JOURNALISM CONCLUSION 21 REFERENCES 22 DIGITAL PLATFORMS AND AUSTRALIAN NEWS MEDIA: REPORT / 3 EXECUTIVE SUMMARY This report was commissioned by Facebook in February that they consume available content. 2018. The opinions contained in this report represent the independent views of the authors. Internet users have access to more information in convenient formats and often for free, across a range of This report identifies the growing uptake in recent years increasingly sophisticated personal and mobile devices, of internet-distributed news which has given rise to and in ways that enable new forms of participation. movement away from a concentrated oligopoly of news Those consumers most engaged with news have been providers in Australia. This is a strongly consumer-led embracing these new opportunities to get, share, and development, with consumers increasingly attracted to comment on news, and engage communities of interest the capacity to share, comment on and recirculate news in discussion of the content. through digital platforms. These developments mean that internet users have This report focuses on the: access to more and more information from more and more publishers, increasing the opportunities most • benefits of internet distribution of news for people have to use diverse sources and encounter consumers; different perspectives on topics of interest. • benefits of internet distribution of news for advertisers; This is discussed in more detail in Part A of this report. • benefits of digital platforms for journalists and news publishers; and DIGITAL PLATFORMS HAVE INCREASED • increasing level of competition in the provision COMPETITION IN THE PROVISION OF NEWS of news that has occurred in the past few years, The ease of access to sources and news content has and the steps taken by the news industry to generated a perceived increase in demand for news remain competitive in the digital age. worldwide. As a result, news providers – both print-and- digital and digital-only - have embraced this trend and The structural shift to digital platforms as a means of dis- sought to develop business models that allow them to tributing, discovering and sharing news is a global phe- compete in the digital age. nomenon. It continues to create significant benefits for consumers, advertisers and publishers in Australia. This All news media organisations have been engaged in has, in turn, contributed to the movement away from a innovation in their business models. The most successful concentrated oligopoly of news providers in Australia to a news outlets in Australia have adapted to the digital news market in which there is increasing competition. The environment by diversifying revenue models, transforming advent of digital platforms has contributed to this devel- journalistic storytelling, and better understanding their opment and this contributes, in a more general sense, to audiences. Successful organisations have adopted some of the following industry dynamics. innovative business models, including by working with digital platforms such as Facebook, as well as alternative CONSIDERABLE BENEFITS TO CONSUMERS FROM funding sources such as advertising, hosting events, INTERNET DISTRIBUTION OF NEWS philanthropy, memberships, spin-off products and crowd- The rise of digital platforms as a means of sourcing sourced journalism. This trend, and the need for new news has provided significant value to consumers. providers to re-calibrate their business models in order News consumers now have ready access to an almost to adapt to the changing news environment, started long infinite range of choices of news content and can access before the rise of digital platforms. However, the increase news across multiple sources. Consumers also have a significant degree of flexibility in customising the ways 4 / DIGITAL PLATFORMS AND AUSTRALIAN NEWS MEDIA: REPORT in internet distribution of news and digital platforms BENEFITS TO PUBLISHERS FROM INTERNET has created new opportunities for publishers and other DISTRIBUTION OF NEWS content providers. The internet distribution of news has raised some challenges for traditional business models. However, Internet distribution has provided new opportunities for it has also created significant benefits for publishers domestic and international players to compete with the and journalists. The consumer-led movement to digital long-established oligopoly in Australian news media platforms has enabled them to reach larger and more markets, and to compete alongside more traditional diverse audiences at a fraction of the cost of traditional formats (e.g. print, television and radio). formats. Recent entrants in the Australian news market have Digital platforms also offer new opportunities for the included international titles such as The Guardian monetisation of news content through social media (commenced in 2013), Daily Mail (2014), Buzzfeed (2014) referrals through a range of different business models and The New York Times (2017), as well as local digital- (including subscriptions, “hard” or “soft” paywalls and only players such as Junkee (2012), Crikey (2000), The New other supplier relationships), the sale of advertising and Daily (2013), The Conversation (2011), The Saturday Paper other means. They also allow news content creators, (2014), HuffPost Australia (2015) and Mashable (2005). journalists and editors to deepen their relationship with audiences, offering further opportunities to monetise This is discussed in more detail in Part B of this report. content. BENEFITS TO ADVERTISERS FROM INTERNET Both traditional and new digital-only publishers have DISTRIBUTION OF NEWS benefitted from internet distribution of news through Advertisers have also benefitted from the consumer-led digital platforms. It has allowed some traditional movement to digital platforms, as it provides them with a publishers to pursue a digital-only strategy much wider array of media content providers, and a much (e.g. The Independent in the UK), whilst allowing all more detailed understanding of target demographics publishers to structure their content to maximise through data generated from online transactions. This is, benefits from the combination of their print offerings, in turn, beneficial for consumers, as they are more likely digital content on their ‘owned and operated’ websites, and to see advertisements. content promoted through non-owned
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