The report written by Tom Standage, The Economist’s Digital Editor, finds that over the last decade the internet has transformed the global news industry, making the news more participatory, social, diverse and partisan.
The report starts by considering the global state of newspapers, which employ the most journalists and set the news agenda in most countries. The picture is surprisingly mixed: although newspapers are in decline in the developed world, particularly in America, circulation is growing in India, China and Brazil. Overall, global newspaper circulation went up by 6% between 2005 and 2009. But there is no denying that newspapers in the rich world are in trouble, as the internet lures readers and advertisers away.
As advertising revenue dries up, newspapers have had to rely more on revenue from readers. This has prompted many newspapers, including the Times of London and the New York Times, to put up paywalls. All paywalls are not created equal, however, and there are many competing approaches. There are also signs that consumers will be prepared to pay for news in digital form, allowing some—but not all—newspapers to make the transition to digital publishing. “News producers through the rich world are starting to charge for content on the web and mobile devices,” says The Economist. In Britain, The Daily Mail and The Guardian continue to go against the grain, offering their content free online as they try to transform themselves into global news brands. Newspapers in many countries are also generating additional revenues by providing a range of new services, such as dating, wine clubs, diet clubs and even cruises.
A broader trend, across the entire news industry, but particularly visible in television news, has been the integration of material from social networks into news bulletins. News channels have shown mobile-phone footage and other amateur video of the Arab spring, the Japanese tsunami and the recent tornadoes in America. CNN has signed up 750,000 volunteers as part of its iReport scheme. Most striking of all has been Al Jazeera’s rebroadcasting of amateur video from Facebook of protests in Tunisia, which helped inspire similar protests across the Arab world. As well as making it easier for ordinary people to act as reporters, social media also lets people discuss and share the news, giving the audience an increasingly important role in news distribution. Some news organisations have also invited readers to participate in the analysis of large troves of documents, an approach known as “crowdsourcing”.
The internet also means that news is coming from an increasing variety of organisations. As well as the incumbent newspapers, radio and television channels, there are new, internet-native start-ups such as the Huffington Post; non-profit organisations that campaign for transparency, such as the Sunlight Foundation; philanthropically funded news providers that specialise in investigative reporting or local news coverage; and, of course, WikiLeaks, which provides a way for whistleblowers to publish documents anonymously. There is a huge amount of experimentation under way. “What is clear is that starting with a clean sheet - using the latest digital tools, being free of printing presses, not depending on print advertising - gives not-for-profit news organisations an optimistic sense of being part of something new rather than of an industry in trouble,” says The Economist.
Indeed, although the internet may have hurt some newspapers financially, it has stimulated innovation in journalism. The outlook is positive, for consumers at least. The report argues that “as news becomes more social, participatory, diverse and partisan, it is in many ways returning to the more chaotic, freewheeling and politically charged environment of the era before the emergence of mass media in the 19th century.” News is reverting to its pre-industrial form, but supercharged by the internet. This explains why conventional news organisations, which grew up in the industrial era, are having so much trouble adjusting. “And although the internet has proved hugely disruptive to journalists, for consumers, who now have a wider choice than ever of news sources and ways of accessing them, it has proved an almost unqualified blessing,” the report concludes.
Also in this week’s issue, The Economist looks at the phone-hacking saga which it argues “jeopardises more than merely News of The World: it threatens Rupert Murdoch, the press as a whole, the police and politicians”. The Economist argues that a full judicial inquiry is needed immediately to clean up British journalism.
To coincide with the special report, The Economist is holding an Ideas Arena online event on “The News” to provide an in-depth look at how the industry has been transformed. Through debates, podcasts, guest commentary and more, this online event will enable website visitors to participate in the discussion on how the news industry has evolved.
To join the conversation at the Ideas Arena, visit: http://economist.com/ideasarena/news
The full schedule of the Ideas Arena: The News event is as follows:
July 7th to August 4th
The Economist Asks
The Economist will poll readers themselves, across all sections of the site, to find out their views on how the media landscape has changed.
July 7th to August 4th
By Invitation
The Economist invites a panel of experts to offer insight and discussion on aspects of “The News” special report topic.
July 12th to July 22nd
The Economist debate: The news industry
Special guests on The Economist online debating site will ask how journalism is changing in the digital age. Our speakers are Jay Rosen (author, blogger and journalism professor at New York University) and Nicholas Carr (author of "The Shallows"). As always, Economist readers will get the final say in whether the motion is supported or discarded.
July 12th
Ask The Economist
Online readers are invited to an online conversation conducted live on a Twitter-feed by the special report editor.
The full report is now live on www.economist.com and on newsstands.
