For years I have been watching the economic decline of journalism. The cycle has gone like this:
- new media emerge in droves because of the digital and social media opportunities;
- in a rush to keep up with digital and social expansion and competition, legacy print media put their content online for free;
- subscribers, preferring free to paid, and being overwhelmed with choices, drop subscriptions and use social platforms, RSS feeds, news aggregators and so on to access news;
- the competition intensifies and to stay economically viable (i.e. more clicks) journalism quality suffers and goes solid reporting of important news is edged by click-bait, market-driven, entertainment value;
- good journalists accept buy-outs and publishers seek “cheaper content” by aggregating, leveraging content from broader sources (witness MLive consolidating newsrooms and its universal desk so the content is very similar in Muskegon, Detroit, Grand Rapids, or how similar Detroit Free Press and USA Today look ) and gaining free content from bloggers, user-generated content and other “innovations” (witness the GVSU student who was paid in swag for her popular Buzzfeed quizzes);
- smaller newsrooms put out less serious news, people keep getting it for free, favoring a stream of articles from multiple sources vs a deep read of select single sources;
- with lower subscription and readership numbers, advertising dollars continue to decline, offering even less revenue to put into the “product” of must-read news.
There have been some alternative models. The New York Times offers 5 free reads per month and then a given IP address will have to subscribe. Others, like the Wall Street Journal and the Economist, offer some article free but premium articles are dangled out there with a notice that they are for subscribers only.
Other publications have emerged in a non-profit or donation model. In Michigan, many quality journalists from legacy media have moved to such publications such as the Bridge (“If you care about Michigan, please support our work”) or more recently Michigan Advance (heads up–I’ve invited editor Susan Demas to speak at GVSU and my colleagues are putting together an event for March 29 that will include a panel of journalism, advertising, public relations, and communications faculty including myself).
There is also a trend of nonprofits, businesses, and government offices becoming their own media outlet in the form of a news bureau or online newsroom that goes direct to public. A former student of mine who works for a state-wide association just asked me about this. I have written about this pointing to some examples on my blog previously–here’s a collection of prior posts on the subject.
But recently I noticed more media, from individual outlets to group conglomerates, drawing a line in the media economics sand and announcing a return to paywalls and subscriptions for their content. The latest example of this is a decision by Conde Nast for its fleet of publications. Some see the move as a bad one, but it is a trend to watch nonetheless.
Here’s why this is good for advertising and public relations.
- Survival of media. This will reverse the downward cycle I posed above. I heard a billionaire say once that if something is free, it has no perceived value. If people have to pay, publishers will have to put out quality reporting–meat, not candy. There is a hunger among the intelligent public for a less frantic media landscape, for news that is credible and quality. This will help good media–whether old or new–to survive.
- Communication environment. We should want good journalism to survive, first as citizens, and secondly as advertising and public relations professionals. Programmatic and targeted advertising made some economic sense, but it can lack qualitative intuition, creativity, and ethics. A recent study shows that most people don’t want tailored or targeted ads. Audiences who pay for content are more attentive to both paid and earned media (or ads and editorial content). And our ads and article pitches will exist next to good and not questionable content, which other studies shows matters to readers.
- Dedicated and aggregated audience. Digital media has been about both reach (quantity) and targeting small audiences of like minds and relevant interests. But returning to paywalls changes the equation. It may result in lower reach as not all current readers will subscribe. But those who do subscribe will be in one place, read each issue and multiple articles, have a natural interest in content and likely a net disposable income enabling them to respond to ads.
There are some considerations to work out as journalism returns to paywalls. One is whether subscribers–and maybe only subscribers–will be allowed to share content. Another is whether publishers will offer headlines and article summaries, or a handful of free articles each issue as a loss leader to draw subscribers. We’ll see. We are in what economist Joseph Schumpeter would call a “gale of creative destruction” in the media industry. What looks dire could emerge as a very good move forward.
I for one am eager to see what good things paywalls do for journalism, content, citizens and the ad and PR industry.