News is now FREEWho will pay for quality journalism?

Article by: Subash Gobine

Presentation by: Ettioné Ferreira21 March 2012; Sol Plaaitjies Institute for Media Leadership

History

•Explosion in news▫Traditional newspaper▫Radio▫Television▫ICT (Information and Communication

Technologies)

ICT’s•Includes satellites, internet, tablets,

mobile, television, radio, etc.•Fast growing – largely driven by mobile

technologies

Rise of Mobile internet•ITU (International Telecommunication

Union)•Estimated that at the end of Dec. 2009:

▫4.6 billion subscribed to mobile tech▫600 million on mobile broadband

•2011:▫6 billion subscribed to mobile tech▫1.2 billion on mobile broadband

The World in 2009: ICT Facts and Figures – ITUThe World in 2011: ICT Facts and Figures

What does it matter?•Multiplicity of sources•Global consumption•Massive migration of news outlets on the

web•Many news sources on internet

AND IT’S ALL FREE!!! (excluding data costs)

Multiplicity of sources…

Traditional VS. New Media costs•Traditional media: production costs,

printing costs, distribution costs, etc.•New Media: Web Development, website

host, internet access. = New media works out way cheaper!•If it’s cheaper to produce, why is there

still traditional media?

Free media Vs. Credibility•Blogs example of free media•User generated content/citizen journalism

the future•No hosting costs•Freedom of expression•Importance of credibility•How do we regulate this? How do we as

professionals maintain credibility on free media sites?

Facebook•Over 500 million active users•Access is free•Numerous threats to ask subscription fees•Loyal users will stay… but how many will

run?•Target market – younger audience – will

they pay?•Will only work if the payers outweigh the

lost users

*Mark Zuckerberg – CEO of Facebook

LOYALTY•Professionals trying to build customer

loyalty•Loyalty – increase advertisers trust in

product•With enough traffic, media can start

charging after being free.

How to make users pay for access?•Rupert Murdoch – charge for online

access•Some content free, some paid•E-paper charge•Metered formula

(eg. Financial Times)•NYTimes.com from Jan. 2011

= paid subscription

CRITIQUES:•Internet makes user generated content

easier:▫Are professional journalists still needed?

•People still want credibility & trust but how far would they go to get it? Will people pay for quality?

•Living on advertising income•Free once, why pay again?•Will it only work for BIG companies (eg. the

Mudochracy)

REFERENCES:

• Mdlongwa, F. & Letlhaku, M. 2010. “News is now FREE: who will pay for quality journalism?”. Harnessing Africa’s Digital Future. JOHANNESBURG: Konrad Adenauer Stiftung. Pages 18-23.

• ITU online: http://www.itu.int/ITU-D/ict/facts/2011/index.html “The World in 2009: ICT Facts and Figures”. http://www.itu.int/ITU-D/ict/facts/2011/material/ICTFactsFigures2009.pdf. “The World in 2011: ICT Facts and Figures”. http://www.itu.int/ITU- D/ict/facts/2011/material/ICTFactsFigures2011.pdf. Accessed on 19 March 2012.