WJEC 2010 - Journalism Business at Crossroads

By David Moepeng, PDMM student


The business of journalism has been under threat since the advent of internet-supported digital media which gives audiences free access to content. This has resulted in loss of potential revenue for the news media, especially print publishers who are now scouting all over in search of business models through which they can retain audiences, continue to generate revenue and thereby protect the business of journalism from becoming unfeasible.

While digital technology is hailed as a major leap forward for the traditional news media, it has proved to be suicidal and unsustainable for most publishers due to the little revenue that online publications can generate.

As online technology continues to tear apart traditional business models for news media, there is a greater need for viable revenue generating models in digital platforms such as online and mobile.

It remains unclear as to what models the news media will adopt; although, currently, the introduction of access charges for online content seems to be the most favoured.

Speaking in an interview on the sidelines of the recently-ended Highway Africa 2010 conference and the 2nd World Journalism Educators Congress in Grahamstown, South Africa, Joe Foote, Dean of the Gaylord College of Journalism and Mass Communication at the University of Oklahoma, US, advised the news media to be experimental with multiple models.

Foote said the media industry is currently unclear about what business models to adopt as no one knows exactly what will work.

“Whatever business models are adopted, they will be a risk to anyone who tries them so perhaps a couple of years from now we will have had winners and losers and we will know more,” he said.

Foote observed that the simplest model is one that involves paywalls for subscription-based access to news sites, adding that multiple models would need to be applied simultaneously to generate revenue from multiple sources, including through news aggregators such as Yahoo and Google.

He advised that news organisations will have to be more innovative to attract advertisers and consider more reader-tailored advertising. Foote said despite being used by online advertisers already, this model is yet to be adopted by the news media.

Adam Clayton Powell III, vice provost for globalization at University of California believes that mobile applications such as Apple Iphone news applications will also provide a revenue stream for the news media in the future, although currently the pricing for such gadgets and applications limits access.

Powell III also sees the emergence of non-advertising supported news media organisations which will be funded by entities such as non-governmental organizations, governments and other interest groups.

Whatever business model works will, however, depend on the type of publication and the quality and exclusivity of its content.

The internet could therefore become a measurement tool for demand as publications that carry content that is readily available in free platforms may lose readers and go out of business if they introduced pay walls.

Foote gave an example of financial publications in the US such as The Economist, Financial Times, Wall Street Journal and Bloomberg News, which he says are making significant profits.

He also sees small town newspapers surviving the tide due to little competition, but added that this will also depend on quality and relevance of the content.

Click here to listen to a podcast in which Joe Foote spells out his "Tips for New Business Models in the Digital Age":

Coming to a phone near you: Six examples of how social media took the starring role in the news

By Gill Moodie


Until Twitter came along and blew the lid off news coverage of the Iranian elections last year, many of us were scratching our heads wondering just how social media could help journalism be more interesting.

Sure, Facebook helped you market a story to your buddies and you could pick up a story or two on Twitter, but what else was there? Then the Iranians, armed with cellphones, beat the pants off the international news organisations covering the June protests in Tehran and we all sat up and took notice.

In South Africa, social media also steals the spotlight from traditional media from time-to-time. Here are my favourite examples:

1. Viral sensation

When AWB leader Andre Visagie stormed out of a live e.tv panel discussion this month, it went viral in a big way with every news organisation, blogger and his dog embedding it. At last count just one iteration of the clip had had 267 000 hits on YouTube and the hilarious “Don’t Touch me on my Studio” clip was also quickly remixed into a number of spoof vids. On the very same day ANC Youth League president Julius Malema threw BBC hack Jonah Fisher out of a press conference – another a big hit – but the prize for enduring appeal must surely go to parliament’s finance portfolio committee chairman, Nhlanhla Nene, who vanished behind a desk after his chair collapsed on live TV in 2008. It was inevitable that someone at the SABC would release the video on YouTube and Zoopy. Word got around on Facebook and very soon the rather un-amused Nene was an internet celebrity. Even venerable institutions such as the BBC covered it (without being able to resist embedding the vid themselves, of course).

Today one version of the Nene clip has had more than 3.1-million views on YouTube. We, of course, can’t resist putting it up again: [...]

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