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UK News Provision at the Crossroads

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UK News Provision at the Crossroads UK news provision at the crossroads The news market in the 21st Century and the likely implications for the BBC’s role A report for the News Media Association prepared by Oliver & Ohlbaum Associates Ltd September 2015 O&O NMA – UK news provision at the crossroads Contents 1 The key points ...................................................................................................................................... 5 2 Introduction .......................................................................................................................................... 8 2.1 The aim of this report................................................................................................................... 8 2.2 Our approach ............................................................................................................................... 8 2.3 About O&O .................................................................................................................................. 8 2.4 About the NMA ............................................................................................................................ 8 3 Executive summary ............................................................................................................................. 9 4 The UK continues to benefit from a remarkably successful news provider market .................. 16 4.1 An overlapping mix of news coverage and outlets creating a vibrant ecosystem ..................... 16 4.1.1 The UK currently enjoys the benefits of having a plural and diverse news media market ........ 16 4.1.2 News services have always overlapped but online news is further eroding traditional points of differentiation ............................................................................................................................. 21 4.1.3 Plurality and diversity matters – and news consumers recognise this ...................................... 23 4.2 A strong, independent commercially funded news media is an important part of the overall news landscape ......................................................................................................................... 25 4.2.1 Bringing more depth to news coverage ..................................................................................... 25 4.2.2 More focused on connecting with audiences at a local level .................................................... 26 4.2.3 Able to devote more resources to campaigning and risk taking journalism .............................. 27 4.2.4 A news product with global appeal ............................................................................................ 27 4.2.5 In aggregate, providing a greater scope of coverage than any single provider could hope to replicate ..................................................................................................................................... 28 5 The market is currently in transition – from traditional to new news provision models ........... 29 5.1 New media has always challenged old, but competition leads to innovation ........................... 29 5.2 The rise of connected media has the potential to be transformative for how news is gathered, processed and disseminated ..................................................................................................... 32 5.2.1 The removal of traditional barriers to entry ............................................................................... 33 5.2.2 The creation of a much more ‘open’ news value chain ............................................................. 34 6 The opening up of the digital news market brings risks and opportunities – the next five years are likely to be critical to shaping the future .................................................................................. 38 6.1 Despite strong headwinds, no immediate signs of market failure in news – players have been pro-active and continue to innovate .......................................................................................... 38 6.1.1 Local and regional news media growing audience reach as they move towards a sustainable model ......................................................................................................................................... 38 6.1.2 National news media experimenting with national pay and global free models (and all points in between) .................................................................................................................................... 43 6.2 Capitalising on the opportunity for global expansion ................................................................. 44 6.3 Maintaining diversity in original national news provision ........................................................... 44 6.4 Allowing local and regional media to innovate, experiment and develop the next generation of community focused news organisations.................................................................................... 45 Oliver & Ohlbaum Ltd 2 O&O NMA – UK news provision at the crossroads 6.5 The risks from a dilution of news provision – increasing domination of overseas news, reduction in plurality and range of UK news voices .................................................................. 46 6.5.1 Globalisation of news provision is both an opportunity and a threat ......................................... 46 6.5.2 No single dominant provider of news can replace the benefits of maintaining a diverse news market ........................................................................................................................................ 46 6.5.3 The BBC cannot take on the role of ‘provider of last resort’ for news coverage ....................... 47 6.5.4 Three broad scenarios for the evolution of the UK news market .............................................. 47 7 The BBC’s role and influence in the UK news market – a key asset but one that cannot be relied on exclusively .......................................................................................................................... 49 7.1 How the BBC defines its news remit ......................................................................................... 49 7.2 How the BBC’s online news service scope overlaps with other players in the UK news sector ......................................................................................................................................... 50 7.2.1 From broadcast news to becoming a major publisher of written journalism ............................. 51 7.2.2 From ‘hard’ news to ‘soft’ news, features and magazine content ............................................. 51 7.2.3 A renewed drive towards international expansion ..................................................................... 53 7.3 A natural tendency to portfolio expansion as UK institutions become more ‘local’ in nature and audiences fragment ................................................................................................................... 53 7.4 Strategic partnerships and JVs likely to be a better solution .................................................... 54 7.5 More transparent and accountable governance structures may be required............................ 54 8 Maximising the value of the UK’s news assets – a more co-operative vision of UK news provision in a globalising world ....................................................................................................... 57 8.1 The choices facing the BBC about its role in the market .......................................................... 57 8.2 How the BBC can help others to adapt to the changing market landscape and more efficiently deliver on its broadening news remit ......................................................................................... 58 8.2.1 A more collaborative approach in local and regional markets .................................................. 58 8.2.2 Creating a different content sourcing and distribution economy in national online news ......... 61 8.2.3 Supporting a more plural future for UK output in global news markets ..................................... 62 9 The BBC’s Future of News report – an alternative vision ............................................................. 64 9.1 The BBC’s Future of News report – some observations and practical issues .......................... 64 9.2 An alternative approach to addressing perceived areas of deficit or risk in the provision of news services ............................................................................................................................ 66 9.3 What a ‘more open’ BBC could mean in practice ...................................................................... 67 Oliver & Ohlbaum Ltd 3 O&O NMA – UK news provision at the crossroads Table of Figures Figure 1: Total funds spent on news by news providers in the UK, 2013 .................................................... 9 Figure 2: Potential areas of co-operation between the BBC and UK local news providers ....................... 13 Figure 3: Estimated spending on UK news content by media, 2013 .......................................................... 16 Figure 4: Cited main sources of news coverage by news type and media, UK 2014 ................................ 17 Figure 5: Comparison of published print news titles, selected markets, 2014 ........................................... 18 Figure 6: Proportion of viewing
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