Business and Internet Journalism - with a focus on news sites Referent: Alexander Jaeger Final Project Jour 3500 Survey of...
1 Agenda/Research Questions <ul><li>Who are the big players in the U.S. media market? </li></ul><ul><li>Which role play ne...
2 Preliminary Remarks <ul><li>This presentation claims not to discover all aspects of business in web journalism or even i...
3 1. Who are the big players in the U.S. media market? Top ten U.S. media companies in 2007 Name of the company Revenue in...
4 1. Who are the big players in the U.S. media market? What does that mean? Example: Time Warner Inc., 6 Business Divisions
5 1. Who are the big players in the U.S. media market? What does that mean? Example: Time Warner Inc., 6 Business Divisions
6 1. Who are the big players in the U.S. media market? What does that mean? Example: Time Warner Inc., 6 Business Divisions
7 1. Who are the big players in the U.S. media market? What does that mean? <ul><li>Of the top-20 popular news sites, 17 a...
8 1. Who are the big players in the U.S. media market? Top online news sites 2007 in terms of unique users  <ul><li>Google...
9 2. Which role play news sites economically in media companies? Some facts  <ul><li>Revenue from media companies’ digital...
10 2. Which role play news sites economically in media companies? Experts say…  <ul><li>David Waters:  </li></ul><ul><li>“...
11 3. Which forms of revenues do news sites generate? Revenues from charges  <ul><li>We can distinguish two forms </li></u...
12 3. Which forms of revenues do news sites generate? Revenues from advertising  <ul><li>We can distinguish some sorts of ...
13 3. Which forms of revenues do news sites generate? Revenues from advertising  <ul><li>Factors which influence revenues ...
14 4. What is the current economical situation for news sites? Where does the money go to?  Type of site U.S. Ad Spending ...
15 4. What is the current economical situation for news sites? Where does the money go to?  <ul><li>Here we can see again ...
16 4. What is the current economical situation for news sites? Where does the money go to?  <ul><li>Online web revenue  gr...
17 4. What is the current economical situation for news sites? Where does the money go to?  <ul><li>As local web ad spendi...
18 4. What is the current economical situation for news sites? Experts say…  <ul><li>David Waters: </li></ul><ul><li>“ Str...
19 5. Which economical problems news sites have to face in future?
20 5. Which economical problems news sites have to face in future? The measurement problem
21 5. Which economical problems news sites have to face in future? The measurement problem <ul><li>David Waters: </li></ul...
22 6. Which impact the current situation on newsrooms? Precise numbers of people employed in online newsrooms are in short...
23 6. Which impact has the current situation on newsrooms? It is not only that more people work in online newsrooms, there...
24 7. Which conflict areas do exist between the business point of view and the point of views of journalists? Experts say…...
25 8. What should be considered more important, the business side or the content side of a news site? Experts say… David W...
26 9. Which skills do business men need in order to be successful managers for news sites? Experts say… David Waters: Know...
27 10. Which trends can be observed that have an impact on the profitability of news sites?
28 10. Which trends can be observed that have an impact on the profitability of news sites? Experts say… Rising costs of n...
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Final Project 2

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An insight into the businnes point of view of journalism

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Final Project 2

  1. 1. Business and Internet Journalism - with a focus on news sites Referent: Alexander Jaeger Final Project Jour 3500 Survey of Internet Journalism Dr. Jin Yang Fall of 2008
  2. 2. 1 Agenda/Research Questions <ul><li>Who are the big players in the U.S. media market? </li></ul><ul><li>Which role play news sites economically in media companies? </li></ul><ul><li>Which forms of revenues do news sites generate? </li></ul><ul><li>What is the current economical situation for news sites? </li></ul><ul><li>Which economical problems news sites have to face in future? </li></ul><ul><li>Which impact has the current situation on newsrooms? </li></ul><ul><li>Which conflict areas do exist between the business point of view and the point of views of journalists? </li></ul><ul><li>What should be considered more important, the business side or the content side of a news site? </li></ul><ul><li>Which skills do business men need in order to be successful managers for news sites? </li></ul><ul><li>Which trends can be observed that have an impact on the profitability of news web sites? </li></ul>
  3. 3. 2 Preliminary Remarks <ul><li>This presentation claims not to discover all aspects of business in web journalism or even in relation to news sites, instead it shall give an overview and an insight </li></ul><ul><li>The presentation is based on information in “Web Journalism. Practice and Promise of a New Medium.” which gives hints in different chapters of the book, “The State of the News Media 2008.” and some class material from my home university </li></ul><ul><li>Another source of information was an interviews with one of our guest speakers and of course online research </li></ul><ul><li>The most difficult thing I encountered in the process was to find appropriate information and how to present it in an appropriate way </li></ul><ul><li>The best thing I learned from the process was to ask the right questions and to figure out how to address these questions in a suitable way </li></ul>
  4. 4. 3 1. Who are the big players in the U.S. media market? Top ten U.S. media companies in 2007 Name of the company Revenue in Mio. $ Profit in Mio. $ Time Warner Inc. 46482 4387 Walt Disney Corp. 35510 4687 Comcast Corp. 30895 - News Corp. Ltd. 32996 5387 Viacom Inc./CBS Corp. 27496 3085,1 NBC Universal Inc. 15416 3107 Cox Enterprises Inc. 15033 - Dish Network Corp. - - The Thompson Corp. 9901 1587 Virgin Media Inc. 7023 25 220752 22267,1
  5. 5. 4 1. Who are the big players in the U.S. media market? What does that mean? Example: Time Warner Inc., 6 Business Divisions
  6. 6. 5 1. Who are the big players in the U.S. media market? What does that mean? Example: Time Warner Inc., 6 Business Divisions
  7. 7. 6 1. Who are the big players in the U.S. media market? What does that mean? Example: Time Warner Inc., 6 Business Divisions
  8. 8. 7 1. Who are the big players in the U.S. media market? What does that mean? <ul><li>Of the top-20 popular news sites, 17 are owned by one of the 100 largest media companies in terms of net revenues in the U.S. in 2006 </li></ul><ul><li>The 10 richest companies owned 30% of the most popular news sites </li></ul>Name of the company Newspapers/news web sites Time Warner Inc. CNN News, AOL News News Corp. Ltd. FOX News, New York Post Viacom Inn./CBS Corp. CBC News NBC Universal Inc. MSNBC Cox Enterprises Several newspapers, nearly all all of them have web sites
  9. 9. 8 1. Who are the big players in the U.S. media market? Top online news sites 2007 in terms of unique users <ul><li>Google and Yahoo were before not included because they are pure Internet companies </li></ul>Rank and name of the news site Unique Users monthly average 2007 1. Yahoo! News about 32 Mio. 2. MSNBC about 29 Mio. 3. CNN about 29 Mio. 4. AOL News about 20 Mio. 5. NY Times about 15 Mio. 6. Gannett about 12 Mio. 7. ABC News about 10 Mio. 8. Google News about 10 Mio. 9. USA Today about 9 Mio. 10. CBS News about 8 Mio.
  10. 10. 9 2. Which role play news sites economically in media companies? Some facts <ul><li>Revenue from media companies’ digital operations are still just a fraction of total gross revenues </li></ul><ul><li>Newspaper online revenues account roughly 3% to 8% of total dollars , and television and radio sites bring even less, from 1.5% to 3.5% on average </li></ul><ul><li>Obviously, there is a gab between the number of users reached by digital operations and the money made by it </li></ul><ul><li>On the one side, there must be problems as causes for these facts (see later), on the other side this has also some implications for the treatment of news sites </li></ul>
  11. 11. 10 2. Which role play news sites economically in media companies? Experts say… <ul><li>David Waters: </li></ul><ul><li>“ At washingtonpost.com, the web site is the business. But the site is only part of the larger washingtonpost media co. It should grow to become a much larger part.” </li></ul>
  12. 12. 11 3. Which forms of revenues do news sites generate? Revenues from charges <ul><li>We can distinguish two forms </li></ul><ul><li>Charge for all services, so that the reader might read all articles on a news site once he subscribed </li></ul><ul><li>Charge that depends on the amount of usage which means the reader has to pay a certain amount of money for every article he wants to read </li></ul>
  13. 13. 12 3. Which forms of revenues do news sites generate? Revenues from advertising <ul><li>We can distinguish some sorts of advertising </li></ul>
  14. 14. 13 3. Which forms of revenues do news sites generate? Revenues from advertising <ul><li>Factors which influence revenues from advertising </li></ul><ul><li>In a certain way revenues from advertising depend on the number of users who visit a web site </li></ul><ul><li>This can be measured in the way web sites owners can count unique users </li></ul><ul><li>Unique User: Number of people who visited the web site in a particular time interval </li></ul>Unique users Price to reach 1000 users will decline Short run: increase in the volume of ads In a longer run: increase in revenue and profit
  15. 15. 14 4. What is the current economical situation for news sites? Where does the money go to? Type of site U.S. Ad Spending in Mio. $, 2006 Portals, search engines & ISP’s 1,277,9 Business, finance, investing 900,5 News & current events 766,8 Sports 715,4 Local news & guides 689 General interest/general entertainment 644,1 Computing & technology 523,8 Movies, videos, TV & cable 374 TV Stations 340,9 Portals and search engines 318,6
  16. 16. 15 4. What is the current economical situation for news sites? Where does the money go to? <ul><li>Here we can see again that traditional media do not make their money with their news sites (2006: 766,8 Mio.) </li></ul>Type of media U.S. Ad Spending in Mio. $, 2007 Newspapers 56200 Broadcast Television 48150 Cable & Satellite TV 23452 Broadcast & Satellite Radio 20725 Yellow Pages 15914 Pure-Play Internet 19093 Consumer Magazines 13996 B-to-B Magazines 11489
  17. 17. 16 4. What is the current economical situation for news sites? Where does the money go to? <ul><li>Online web revenue grew by 26% to 15.2 billion in the first nine months of 2007 , but that number was down from a 36% grow rate through the same period a year earlier </li></ul><ul><li>In 2006, the rate of growth for ad spending on news sites had not kept base with other leading categories </li></ul><ul><li>In 2006, ad revenue for news and current events sites grew by just 9% and that rate of growth is down from 12% in 2005 </li></ul><ul><li>National web ads are nearly three times that of local ads in terms of revenue </li></ul><ul><li>But local web ads are gaining ground, they increased 32% in 2007 </li></ul>
  18. 18. 17 4. What is the current economical situation for news sites? Where does the money go to? <ul><li>As local web ad spending is growing rapidly, local news sites may also make some economical progress </li></ul>
  19. 19. 18 4. What is the current economical situation for news sites? Experts say… <ul><li>David Waters: </li></ul><ul><li>“ Strong and getting stronger each year. Traffic and revenue continue to grow . Post.com is 2 nd to nyt.com.” </li></ul>
  20. 20. 19 5. Which economical problems news sites have to face in future?
  21. 21. 20 5. Which economical problems news sites have to face in future? The measurement problem
  22. 22. 21 5. Which economical problems news sites have to face in future? The measurement problem <ul><li>David Waters: </li></ul><ul><li>“ How to generate enough revenue to support journalism. So far, most of our content cost is carried by the newspaper biz. Advertising creation and sales have to learn how to work the web.” </li></ul>
  23. 23. 22 6. Which impact the current situation on newsrooms? Precise numbers of people employed in online newsrooms are in short supply Writing, editing and designing for web- Employed bachelor’s degree recipients in communications doing this work (%) Source: Annual Survey of Journalism & Mass Communication Graduates, 2007
  24. 24. 23 6. Which impact has the current situation on newsrooms? It is not only that more people work in online newsrooms, there are also changes in education and organization <ul><li>42% of 2006 graduates indicated that their undergraduate curriculum included writing and editing for the web </li></ul><ul><li>14% said they received training in designing and building web pages </li></ul><ul><li>Veteran journalists as well as new hires are being trained more and more on new media skills </li></ul><ul><li>Media Companies train more reporters to produce more multimedia </li></ul><ul><li>News sites also begin to take on the role to help the users navigate through content that comes from others </li></ul><ul><li>Some companies start the total integration of the print and online reporting teams </li></ul>
  25. 25. 24 7. Which conflict areas do exist between the business point of view and the point of views of journalists? Experts say… David Waters: Cooperation increases Collaboration could be a problem Editorial retains complete control over content Ad tries to sale what editorial does, editorial tries not to provide content for ad Question: How shall journalists write about companies which spend a lot of ad money into the news company and how much shall they write about them? Question: Shall journalists give up some accuracy in order to gain more visitors to the web site? Business men control the resources that go into journalism
  26. 26. 25 8. What should be considered more important, the business side or the content side of a news site? Experts say… David Waters: Content interesting useful creative compelling informative “ I’m a journalist so I say content. I think it’s all about the content. Ad can’t sale a lousy product for long.” Opposite opinion: News sites are businesses. Businesses need to make profit.
  27. 27. 26 9. Which skills do business men need in order to be successful managers for news sites? Experts say… David Waters: Knowledge about news, journalism, the first amendment and the vital need for quality journalism in a democracy Knowledge about new digital technologies and the ability to understand the needs of advertisers <ul><li>To my mind: They must not only use their knowledge in both areas, but must also be able to work with journalists and advertisers together in order to create benefits for the organization as a whole </li></ul>
  28. 28. 27 10. Which trends can be observed that have an impact on the profitability of news sites?
  29. 29. 28 10. Which trends can be observed that have an impact on the profitability of news sites? Experts say… Rising costs of news print and newspaper distribution. Declining newspaper subscriptions and ad revenue. Higher demands from Wall Street. David Waters “ On flip side, growing tech/digital ways of distributing content faster, and in more efficient ways. Shifting costs from production and distribution to content.”

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