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":

South Africa’s biggest journalism scandal ever to have rocked the media fraternity in the Ashley Smithgate Scandal

Finally, someone has confessed to South Africa’s biggest journalism scandal in sixteen years, the Ashley Smithgate Scandal.
And interestingly, no such labels as disgraced has been placed on Ashely Smith, the former Cape Argus political reporter who this week admitted that he was among senior journalists and editors who received payola – kickbacks through government contract to manipulate the news.

As I read the article about a someone I studied journalism with, though he was junior and worked with at the Independent Newspapers (I was working for The Star and he was working for The Saturday Star), I grew irritated on how some young journalists were propelled so much quickly in their careers, while others stagnated despite having more experience than them.

These revelations of brown envelope journalism were made by one Vukile Pokwana also former fellow journalism student who was also a director at Hip-Hop Media, in a two hour interview with the then Cape Town premier, Lynn Brown last year, had sent shockwaves thought the media fraternity.

His confession, nearly a year after Mail & Guardian broke the story, and despite denials by Chris Whitfield, editor-in-chief of Independent Newspapers in the Cape, who complained to the newspapers’ press ombudsman Franz Kruger about the coverage that Smith and political editor, Joseph Aranes (also a former journalism student at Peninsula Technikon) received brown envelopes for writing stories in favour of the then Western Cape premier Ibrahim Rasool, while waging a dirty campaign against his rival Mcebisi Skwhatsha.
These claims resurfaced when another senior ANC leader Max Ozinsky wrote that Rasool had systematically manipulated the media.

As I read what I already knew as the Mail & Guardian had broken the story, but waited for prove or evidence, I was reminded of Jason Blair, a young and perhaps talented journalist from the New York Times who shamed the journalism fraternity by plagiarizing stories.
Blair was forced to resign after he admitted in committing one of journalism cardinal sin – plagiarism. He later wrote a memoir, titled: “Burning Down My Master’s House”. He was labeled disgraced.

However, our own Blair in the Ashely Smith is now been labeled a former Cape Argus journalist as if he didn’t resign over a cloud of heavy dark smoke. Smith and his cohort Joseph Aranes have caused a serious damage to journalism. Their actions have soiled the reputation of this noble profession which relies on trust to thrive. As senior reporters, they were conscious of the fact that journalism entails a high degree of public trust and it will take serious efforts to build that trust and credibility.

As for Whitefield, as the captain of the ship, he is also guilty for not taking necessary action when this information came to the fore. Instead he pontificated and established a clumsy hearing in which Smith received a slap in the wrist, while Aranes continued with his work.

Being accused of such a journalistic crime does harm to the media at large than one publication and Whitefield should have known that unlike pointing fingers at the Mail & Guardian reporter, Glynnis Underhill who broke the story and came with more follow ups, something that didn’t sit well with Whitefield and his editorial team.

Realizing that Underhill was pursuing the story vigorously; Whitefield diverted attention on the messenger and complained that she was malicious and that the Mail & Guardian as a rival publication was pursuing a vendetta against his publication. These were just flimsy accusation as I said before and still remain so. By trying to sweep the matter under the carpet and attempted shoot the messenger with an empty revolver, Whitefield failed to deal with the allegations and therefore should be charged for dereliction of duty.

It also boggles my mind why should Smith be asking for indemnity while he was conscious that their actions were unethical and criminal. Anyway, journalism is known of hiding scoundrels who have plagiarized, known for receiving, accepting and demanding bribes and freebies. I take my hat to those journalists, who despite being paid pittance, have held the torch and mirrors our society.

Those journalists regard themselves as liberators, watchdogs and are independent. They are not imbedded and write or broadcast without fear or favour. They will never compromise journalistic ethics.

Perhaps, like his US buddy Blair, Smith should write a memoir: Destroying My Master’s Mansion.

Themba Sepotokele is a Gauteng-based government communicator and a media trainer. He writes in his own capacity.

Newspass: Why Google’s paywall plans may just work

by Matthew Buckland

Google has been quietly testing a new paywall system for publishers it is calling “Newspass”. According to Italian newspaper La Repubblica, Google has been piloting the service with publishers in Italy.


The search giant will apparently launch “an integrated payment system” allowing users to buy news content with just “one click”. Newspass would allow publishers to use a single infrastructure for Web, mobile and tablet computers to monetise their content.
Importantly, La Repubblica reports that consumers will have a single log-in across a multitude of news sites that would be flexible enough to accommodate various kinds of payments, including long-term subscriptions and one-time micropayments. It would be a one-click payment for access, not too dissimilar from Google Checkout.

Paywalling systems on news sites have been controversial for a better part of a decade. There is justified scepticism about whether they work or not. A handful of publications around the world, largely in the specialist finance field, have got it more-or-less right, but for the most part, paywalls have not been a success. [...]

Read full article on www.memeburn.com/ 

The keys to managing and leading people and firms in the new age

Story by: Monique Senekal
Editing by: Francis Mdlongwa

Consultative and empathetic leadership, forging alliances to create economies of scale and of scope, embracing innovation, being communicative and balancing value creation for customers are emerging as key success factors of effective management in the digital age.

Modern management theory concurs with the new role of a human resources manager: to be proactive in managing change in an organisation. More and more, these managers need to act as strategists and contribute to the financial bottom line.

In the digital age, the modern HR manager needs to understand that the people of an organisation could be a key source of competitive advantage. As such, he/she needs to recruit, retain and retrain only the most talented people to ensure strategic management.

However, many top managers of companies who still follow traditionalist business models, even in change management, still prefer to maintain their control over subordinates and often dumb down any form of creativity. In addition, many executives supervising HR managers don’t see the need for drastic change either.

This is where the approach to media leadership training run by Rhodes University’s Sol Plaatje Institute for Media Leadership (SPI) differs: we integrate cutting-edge management theory into our practical training programmes and promote the need to embrace change management in all our learning and teaching.

The Essentials of People Management (EOPM), which took place at the SPI from 31st May to 4 June this year, focused specifically on the challenges of leading and managing diverse groups of people in a rapidly changing industry.

By the end of the week, participants agreed that great weight should be given to HR Orientation, and effective Change and Performance management in the workplace.

Thandisizwe Mgudlwa, a freelancer who contributes to Independent Newspapers Limited, explains why he now appreciates the importance of investing in staff orientation:

“When I came here, I thought I knew much about people management, but I knew nothing. I am taking back the shared experiences, education and skills learnt, in particular the importance and processes of HR orientation. In my ten years working in the media industry, I’ve never really been given that opportunity to understand the philosophy, culture and the history of the organisations I have worked for. Now I understand that it is my right, as an employee, to demand that the HR department and other relevant departments explain these until I understand.”

Jimmy Dhlamini, Station Manager at Thetha Fm, echoes these views:

“Orientation is key; employers need to ensure that the process of orientation is taken forward. There is much that media practitioners need to learn in terms of properly orientating people.”

Many young talented people today prefer to work for start-ups; promising undertakings rather than an established company because they like the entrepreneurial challenge and tremendous career opportunities. Two of our EOPM short course delegates, both relatively young, have left the SABC because they say they were fed up with top management who relentlessly “crushed” their creative spirit. They explain that top management often exclude subordinates in the decision-making process because they (management) want to maintain the status quo.

Nobathembu Kani, a former SABC radio producer, explains what the role of HR in change management should be:

“The greatest insight I have gained is that the vision and mission (of the organisation) should be clearly communicated with your staff, especially when change is taking place. We cannot only be told to do things, blind-folded. We need to understand and share the vision and mission; I speak from experience! Transparency should be in place. HR should take a more active role in the management of staff rather than simply playing a consultant role to the other departments. Motivation is very important as well; remuneration is not only monetary.”

Kani says doing this course has encouraged her to pursue her ideals in any organisation:

“Now, not only am I fully aware of how I fit into the organisation but I also see how I can be an element of change. I feel empowered.”

These EOPM delegates may occupy different positions in their respective organisations, they may be managing one or more people and have varying powers of authority, but they all agreed that the sharing of experiences and problem-solving techniques was one of the most rewarding aspects of the just-ended EOPM.

Bultcha Teguest Yilma, co-owner, Managing Director and Deputy Editor-in-Chief of the Ethiopian-based Capital weekly newspaper, provides further insight:

“I now realise, very importantly, that each department needs a customised Performance Management form; I cannot expect that every department fill out the standardised form because each department has a different role to play, with staff that have different job descriptions, goals and needs.”

Another key learning area for delegates is the importance of effective communication in order to achieve the goals of the organisation.

Yilma notes:

“I now know that effective and continuous communication is crucial; you may think you have agreed on a common goal, but people forget or get side-tracked; so time and time again you need to set up follow-up mechanisms – reiterate, revise and re-evaluate those goals to make sure everyone is on the same path.

“Also, I don’t have a management background, I have an economics background. So in taking part in this course, I now understand why I fight with my Finance Manager who is also my HR manager. Now I understand it may not be because of a competence problem, but rather an ability problem. Now I know I really need to hire an HR person.”

For Besizizwe (Bheki) Mdhluli, Communications Officer at Naledi Municipality, the most important lesson on the course was retaining and refitting experienced staff:

“I’ve come to realise that in the changing media landscape what is important is that you don’t just retrench staff members, but seek alternative positions for them in the workplace so that you can retain (seasoned) workers.”

Often delegates who come on our short courses feel inspired to transfer the lessons they have learnt from SPI to their organisation. Mdhluli plans on organising a formal presentation:

“When I am back at my organisation, I will speak to my manager, try to organise a sort of conference to teach what I have learnt on this course to the handful of people I manage, and to the rest of my organisation.”

Some delegates simply feel inspired to be better relationship builders.

Denise Mhlanga, Editorial Assistant/Journalist at LiveOutLoud Magazine, explains:

“You definitely need to know yourself as a manager; your strengths and weaknesses. Also, don’t assume you know the needs and wants of your employee; talk to them, ask questions.”

SPI believes in the importance of continuous management training to achieve strategic awareness and to link strategic thinking with implementation. It is a requirement for all large companies as employees cope with new ways of doing business.