The document discusses the changing media landscape and challenges in sustaining journalism. It notes that while traditional media sources are declining, digital media usage is rising, especially among younger demographics. However, the transition to digital has significantly reduced total news revenue. Advertising remains the primary source of funding but is declining. New revenue models like donations, paywalls, and venture capital are growing but it is unclear if they can fully replace lost advertising dollars and sustain the industry long-term. The future of journalism depends on whether this period represents perpetual change or a critical moment in the transition to a new economic model.

1. Perpetual Change or Critical Moment?
Finding the audience, Sustaining Journalism
Jesse Holcomb
Senior Research, Journalism Project
@jesseholcomb

2. “Tell the truth and trust the people.”
–Joseph N. Pew Jr.
October 29, 2014 www.pewproject.org 2

3. Digital sources growing;
traditional not yet disappeared
October 29, 2014 www.pewresearch.org 3

4. Different sources for different topics
Source: Media Insight Project
October 29, 2014 www.pewresearch.org 4

5. Digital News Video on the Rise
October 29, 2014 www.pewresearch.org 5

6. Digital News Video more Popular w/the Young
October 29, 2014 www.pewresearch.org 6

7. The podcast audience is growing, too
October 29, 2014 www.pewresearch.org 7

8. Who’s listening?
• The young (33% of 18-29 year-olds)
• High-income (35% of &75,000-plus)
• The highly educated (37% of college-plus)
October 29, 2014 www.pewresearch.org 8

9. Social media is a pathway to news
October 29, 2014 www.pewresearch.org 9

10. Especially for the—you guessed it—young
October 29, 2014 www.pewresearch.org 10

11. Getting “News” on Facebook Is
an Incidental Experience
• 78% of Facebook
news users mostly see
news when on
Facebook for other
reasons
• 34% of Facebook
news consumers “like”
a news organization or
individual journalist
October 29, 2014 www.pewresearch.org/journalism 11

12. Still listening & watching,
but participating, too

13. Social Media Allows Public to Participate
October 29, 2014 www.pewresearch.org 13

14. Mobile Devices Make are Facilitating This
October 29, 2014 www.pewresearch.org/journalism 14

15. News is a Top Activity on Mobile
October 29, 2014 www.pewresearch.org/journalism 15

16. Still in rapid transition, but what will we see
with generational shift?
• News experience will be social
• News experience will be mobile
• News experience will be participatory
October 29, 2014 www.pewresearch.org 16

17. Sustaining Journalism
• Same question: New era of revenue diversity, or just a moment of
transition?
October 29, 2014 www.pewresearch.org 17

18. Business Model Collapse Felt Locally

19. Local TV Consolidation =
Decline in Original News
• News stations producing
original reporting declined 8%
since 2005
• A quarter of 952 stations
airing news do not produce their
own
• Impact on the consumer seems
to vary
October 29, 2014 www.pewresearch.org 19

20. Public is Taking Notice
October 29, 2014 www.pewresearch.org 20

21. Advertising still dominates
• Nearly two-thirds of total news revenue
• Mostly print ($25 billion from daily
newspapers)
• $13 billion from TV news
• 9 out of 10 hyperlocal news sites rely
very heavily on advertising (Michele
McLellan)
October 29, 2014 www.pewresearch.org 21

22. But things have changed
• Total news revenue in 2006:
$95 billion
• Today: $63-$65 billion
• Audience and non-traditional
revenue has grown as a
share of the total
October 29, 2014 www.pewresearch.org 22

23. New Money Is Coming To Digital News
• Personal wealth, capital
investment
• Venture capital - $300 million
over the past year to news orgs
• Foundation support for public
radio, as well as scores of digital
nonprofit outlets, added roughly
$150 million.
October 29, 2014 www.pewresearch.org 23

24. Growth in audience revenue
• Newspaper circulation revenue up 5% in 2012
- First growth since 2003
• Retransmission fees on the rise
- Now make up 2/3 of CNN U.S. revenue
• Public radio individual giving has grown
- 2012 was second-biggest year since tracking began
October 29, 2014 www.pewresearch.org 24

25. Nonprofit revenue streams:
Individual giving on the rise
October 29, 2014 www.pewresearch.org 25

26. Is it sustainable?
• Pay TV Industry – Reached a peak
- Shed 251k subscribers in 2013; first full-year loss
- Average expanded basic cable bill: $61 and rising
• Newspapers – Shrinking base of paying audience
- Total weekday newspaper subs are flat at 44 million
(down from 55 million in 2004)
- Newspapers raising rates; more paywalls (500 &
counting)
October 29, 2014 www.pewresearch.org 26

27. Who pays for news?
• About a quarter of US adults (Media Insight Project)
• People who enjoy following news and keep up with it often
• Older, white, highly educated
October 29, 2014 www.pewresearch.org 27

28. Public news values
- Communities of interest
- Daily information needs
- Civic and community
engagement
October 29, 2014 www.pewresearch.org 28

29. Explore our data at journalism.org
October 29, 2014 www.pewresearch.org 29

30. Perpetual Change or Critical Moment?
Finding the audience, Sustaining Journalism
Jesse Holcomb
Senior Research, Journalism Project
@jesseholcomb