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Media Economics

Media Economics / UK Press — 1 Comment
13
Dec 12

James Harding departs The Times: follow the money

I’m sorry to see James Harding shoved out of the editor’s chair at The Times. He had made mistakes, but he had also done the paper (for which I worked) a lot of good.

The instant speculation about why he was dumped tells you a good deal about the way journalists think about their business. Some, noting rightly that coverage of News International and phone-hacking had been good after an initial stumble, thought that this robust editing had annoyed News Corporation’s boss Rupert Murdoch. If this was any problem at all, it would have rated as an irritant. Likewise I can’t think that Harding’s failure to buy the CD containing details of MPs’ expenses, when offered it before the Daily Telegraph, would have done for him.

Journalists find it hard to confront the unpalatable truth that the present and the future cannot resemble the past. The reasons are economics and nothing to do with politics or proprietorial power. In a phase of rapid change driven by technology and money, a large part of an editor’s job now is to help to find a business model. The Times hasn’t got one.

In this, The Times is not alone: the Guardian searches for the same thing. When the Sunday Times made profits which covered the losses of The Times, the weak market position of the latter title didn’t matter much to a company making plenty of money from three of its (then) four papers. Around ten years ago, The Sunday Times stopped covering the losses of The Times. These financial agonies lie at the root of all that is happening.

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Media Economics / Media Sources — 1 Comment
05
Nov 12

Google and the difference between information and knowledge

I am a regular reader of Frederic Filloux’s weekly commentary on media, The Monday Note. I cannot recommend it too highly for its trenchant originality.

Triggered by a new wave of complaint about Google in Europe, today’s note looks at Google’s interest in legacy news media. Why, Filloux asks, has Google maintained Google News for so long when it makes no money and when news sites are so relatively insignificant as sources in Google’s gigantic search business?

He thinks that the answer lies in Google’s planned move from being a search engine to being a knowledge engine: the ability to deliver more sophisticated and useful answers than most of us can dream automated search can now deliver. At the heart of that effort is something called Knowledge Graph. And the key to that is the boring-but-important issue of the structure of data. News media connect bits of information to make it knowledge people may want and need.

As Filloux points out, pure-play web news sites are often better at this than the ones built by established mainstream media – despite the fact that the legacy media often hold richer, bigger databases. New media’s data is easier to find because what is stored is better labelled and can be made sense more easily.

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Media Economics / South Asia — Comments Off
29
Oct 12

Indian media: expanding alright, but sometimes in the wrong directions

By what seems only to be coincidence, there has been a bundle of rich, informative writing about the India news media in the last month. It seemed a good idea to collect the links in one place – and they turn out to have a common theme.

Exhibit One is the James Cameron lecture by N. Ram, until recently editor of The Hindu. As befits his biography, Ram writes as a newspaperman but his magisterial survey does not neglect the astonishing growth of 24-hour news television in India. I have already posted about this lecture, so I’ll summarise brutally and say that Ram’s underlying message was: because Indian news media is a “growth story”, don’t assume that everything is fine.

Second item is a piece in the New Yorker (£) by long-time media analyst Ken Auletta on the Jain brothers who run Bennett & Coleman, the owners of the immensely successful Times of India. Auletta isn’t the first person to write about the changes which have occurred at the Times of India but he is the first writer to lay out with such clarity and force the truly revolutionary ideas which have altered the group’s papers.

I do not mean “revolutionary” in any romantic sense. The insight on which the Jain brothers based their changes at the Times of India and the Economic Times was simple but turned the world of those newspapers upside down. The idea is shocking to journalists like me, brought up on the assumption that newspapers have a democratic function beyond their existence as businesses. Not so, thought the Jains: we’re not in journalism, we’re selling advertising. And so the journalism was gradually but firmly subordinated to adjusting the newspapers to be platforms collecting readers whose attention could be sold to advertisers. This has been so successful and influential, that the group’s executive no longer feel and need to fudge or obscure what they have been doing.

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Experiments / Journalism Schools / Media Economics / US Press — 2 Comments
15
Oct 12

At last: a journalist with a sense of history and of its power to renew

People who run university journalism schools get used to being asked why they are offering courses to wannabe journalists who won’t be able to find jobs because so many of those jobs are disappearing in the digital disruption. I get asked this twice a week.

Nicholas Lemann steps down as head of the Columbia Journalism School in New York next year and an interviewer from the Daily Beast asked him just this question. His splendidly iconoclastic and counter-intuitive reply makes an excellent riposte to the unreflective pessimism which dominates much pipesucking and public moaning about journalism.

Lemann doesn’t dispute the facts: that jobs have been lost on papers and that more will go (see this blog on Britain here and here). He’s not optimistic about the 25 largest big-city dailies in America. But Lemann takes aim at two fallacies which pop up in most discussions about the future of journalism: the idea that these problems didn’t exist in a golden age sometime in the recent past and the assumption that the future of well-known daily newspapers is the same as the future of journalism.

“People tend to feel, whatever the pressing problem of the moment, that humans before me didn’t have to deal with it,” as he puts it.

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Media Economics / UK Press — Comments Off
01
Oct 12

It’s tough out there in print

Within two minutes this morning and without need of any comment, these two tweets recording cuts made by major papers….

Gordon MacMillan ‏@GordonMacMillan

Times closes monthly science & environment mag Eureka http://bit.ly/Pmm7sx  << Lost its largest advertisers /@BrandRepublic

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Media Economics / Predictions / UK Press — 1 Comment
25
Sep 12

Funding journalism: not before a sharp, painful squeeze

Nick Clegg, the Liberal Democrat leader, sinking in the polls and suffering the media persecution which goes with that, thinks that newspapers won’t be around when his children are grown up. He implies that because printed papers might vanish, journalists of the future won’t pick apart the performance of politicians. Or at least they’ll be nicer when doing it.

Less naive, but nevertheless mistaken is the idea floated by David Leigh of The Guardian (declaration: he’s also a colleague at City University) that the financial problems of newspapers could be solved by a £2 a month levy taken from internet service providers (ISPs). Journalism has always been cross-subsidised, so it’s the right question. But the wrong answer.

Taken together these fragments of the debate about what’s happening to journalism show that a stark idea, long discussed by those who study this stuff, has now gone mainstream. Change in newspapers will be transformative and not just adaptive. And it’s coming very soon.

Take a quick look at the recent print circulation figures of the five serious national dailies (FT, Times, Guardian, Telegraph, Independent). Taking the figures from June 2011 to June 2012 (i.e. excluding Olympic effects) year-on-year falls range between 8.52% (Telegraph) and 44.62% (Independent). Take the Independent out of the equation on the assumption that the figure is distorted by some statistical manoevre and the bracket is from 8.52% to 17.75% (Guardian). Now imagine the effect of those numbers on print advertisers (still probably at least two thirds of the income of these papers) and speculate about the tone and type of discussions that are going on inside the offices.

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Leveson / Media Economics / UK Press / Uncategorized — Comments Off
03
Sep 12

The Leveson Inquiry pre-positioning: editors a bit confused

The printing of naked photos of Prince Harry by The Sun exposed nothing very interesting about the prince but it did dislodge some very muddled thinking about the future of newspapers.

The short-term future for newspaper editors is dominated by the Leveson Inquiry, due to report in the autumn. The Inquiry’s chairman has been sending provisional summaries of his views to editors and they don’t like what they read, claiming that it hints at statute-backed press regulation. The government sounds wary. The opposition Labour Party is sitting on the fence on that issue, preparing to jump off on whatever side will cause the government most trouble, while keeping as much attention as they can muster on the issue of media plurality and ownership. These are all pre-publication manoeuvres. Nobody yet knows what Leveson thinks and positions will be amended or even abandoned when his views become clear.

The Prince Harry pictures gave editors a chance to rehearse their defences, which came in two varieties. The first is a broad press freedom argument which asks for licence to disclose anything which they deem interesting and which is within the law (and maybe a few things which aren’t). As a defence in court – prosecutions of News of the World journalists for phone-hacking and related offences are churning through the system in parallel to the Leveson Inquiry – this is unlikely to work (see this from the HuffPo by one of those arrested). We might christen this the “spacious elbow room” argument; popular papers need space to do what they do and to survive. A tincture of anti-establishment language is usually thrown in. Hence the ex-editor of The Sun, Kelvin MacKenzie:

“I’m unsure why the establishment hate newspapers so much but what I’d like to see is editors get off their knees and start pushing back against these curtailments in what will eventually, I promise you, lead to the closure of newspapers”.

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Economics / Media Economics / US Press — Comments Off
21
May 12

The economic history of newspapers according to the Sage of Omaha

The economic history of newspapers according to the Sage of OmahaFor many years, Slate has been one of the best sites for commentary in America. One of the stupidest things that intelligent team ever did was to sack their media columnist Jack Shafer, who now writes at Reuters.

His trenchant style hasn’t yet quite recovered from the transfer, but he continues stubbornly to refuse to think with the herd. For this alone he is required reading.

As evidence, here is Shafer’s column on Warren Buffet (left), the uber-guru of counter-intuitive investors everywhere, and newspapers. Buffet has owned newspapers on and off over the years and his commentary on their profitability or otherwise happens to write the twentieth-century history of printed media pretty well. And not just in America either. Once upon a time, newspapers could price their advertising space pretty much as they wished because their position in their markets was strong, bolstered by lack of competition and brand loyalty. Now that “franchise” has weakened. A cold-eyed view? Yes, but that is no bad way occasionally to look at newspapers which have more often been seen through rose-tinted spectacles of sentiment.

Journalists like to think that they are above grubby matters of business. But if you don’t understand what went wrong in the business model for printed news media, how are you going to figure out what will work in the future?

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