notes for feburary 23 and 25
notes for feburary 23 and 25 JOURN 1100
Popular in Principles of American Journalism
Popular in Journalism and Mass Communications
This 8 page Class Notes was uploaded by Elizabeth Ronecker on Sunday February 28, 2016. The Class Notes belongs to JOURN 1100 at University of Missouri - Columbia taught by Joesph Moore in Spring 2016. Since its upload, it has received 12 views. For similar materials see Principles of American Journalism in Journalism and Mass Communications at University of Missouri - Columbia.
Reviews for notes for feburary 23 and 25
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/28/16
2/23/16 The Economics of journalism I. Overview of unit a. Dual business model for media b. Market model vs. the public service model c. The current state of media ownership d. Potential implication for content e. Crisis in journalism’s business model II. Key questions a. What is the various ways journalism is paid for? b. How we arrive at today’s business models> c. What are the potential implications of these business models on journalism? d. Implications for content, industry entire journalistic landscape e. Substance and esthetically III. Commercial media a. American media system is commercial b. Businesses owned by individuals, families or groups of people i. Ex) owner of amazon owns Washington post c. Some media companies are publicly traded (owned by lots of shareholder) d. 2010, 40% of US newspapers are owned by a publically traded company e. “Commercial media are neither natural or inevitable” IV. Dual market model a. Media sells content to consumer b. Media sell the attention of audiences to advertisers c. Most of the money comes from advertisers so the needs of advertisers trump the needs of consumer because they pay for a lot of things d. Price of newspaper is less than cost to make; difference made from advertising revenue e. This model is in decline; desperate to find new models to replace it V. US radio in the 1920s a. Early 1920s, radio is dominated by educational institution b. Considered public good and is limited c. Lot of debate about how limited radio should be regulated or if it should be limited d. Airwaves dominated by education institutions-‐> public service where universities would share information with communities e. Radio act of 1927 est. Federal Radio Commission (FRC) f. In 1928, FRC reallocated frequencies to for-‐profit commercial broadcasters i. Told commercial that they could broadcast at any time and the non profit ones could only broadcast at certain times so lost listeners g. Radio advertising expenditures reached $100 million in 1929 i. Some people were disturbed that their children were getting advertised to ii. Some groups were really against this and protested wanted to be able to bring culture to masses iii. Opposed groups lost because commercial radio had a lot of money to influence iv. Dewey-‐ in favor that the “radio is the most powerful instrument of social education”… social public interest VI. Market vs. public sphere models a. Market i. Private companies ii. Generates profits iii. Audiences are consumer and a product iv. Entertainment orientated v. Media accountable to owners and shareholders b. Public sphere model i. Public resources serve particular area ii. Promotes citizenship and education iii. Audiences are citizens, political actors in democracy iv. Education orientated v. Media accountable to public and government reps. c. Most news have private but NPR and PBS is public sphere model d. Can coexist but one model is dominated over other e. Market is dominated over public in the US f. BBC in GB is public-‐ license fee to pay for it; 4 cents per person per hour to watch i. A lot of people think its run by government but it is independent; in exchange for public finance promotes public education VII. Public investment in news media a. Government provide financial support to news media in 3 general ways i. Public service media (licensing fees) ii. Indirect press subsides (tax breaks) iii. Direct press subsidies (direct investment) (rare and not a lot of money) VIII. NPR model a. Get revenue from corporate underwriting (mention of companies name) and individuals IX. Origins of the market model in the US a. Strong libertarian ideology i. Idea that individuals free from influence from the state b. Historical mistrust of centralized government i. US fought against this in American Revolution ii. Countries that use sphere, they didn’t have revolutions; they slowly moved to more democratic government c. Concentrations of economic power i. Corporations had vested interest that things public commodities (RR) were kept to a minimum so others could own and taxes were kept low X. Advantages and disadvantages a. Market i. Advantage: lower cost to get the paper, less reliance on government, companies can better connect to consumers ii. Disadvantage: consumer comes second to the advertiser, more entertainment focus, monopolistic, iii. The advantages and disadvantage can be interchanged b. Public sphere i. Advantage: educational, profit is stable, ii. Disadvantage: not as entertaining, journalists watchdog when rely on government, limit amount of money XI. What does US commercial media landscape look like today? a. Media ownership i. Highly concentrated ii. More than have ever been in history iii. 90% of media is owned by 6 major corporations 1. Comcast, Newscorp, Disney, Viacom, Time warner, CBS iv. Google dominates online (advertising) but is not considered one of big 6 b. Time warner i. TV: CNN, HBO, TBS, TNT, Cartoon Network, CW (co-‐own with CBS) ii. Entertainment: Warner Bros, New Line Cinema, DC comics iii. Print: people, time, sports illustrated, real simple, entertainment weekly iv. Online: TMZ c. Newscorp i. TV: FOX, Fox news, Fox sports, Nat geo, big ten network ii. Entertainment: 20 century fox iii. Books: harper Collins iv. Online: Hulu (32%) d. Disney i. TV: ABC, ESPN, A&E, LIFETIME, Disney channel, history channel ii. Entertainment: marvel, Lucas film e. Viacom i. TV: Nickelodeon, MTV, CMT, BET, VH1 f. CBS i. TV: CBS, ShowTime ii. Entertainment: CBS films g. Comcast i. TV: NBC, MSNBC, bravo, Oxygen, USA, E!, the weather channel ii. Entertainment: universal studies iii. Online: Hulu (32%), fandango iv. Other: universal studies h. Other international i. Sony(japan) 1. Sony pictures and music entertainment ii. Bertelsnam (Germany) iii. Vivendi (France) i. US print media i. Hearst, tribune, Gannett, Lee enterprises (STL post dispatch) XII. Media ownership a. Horizontal integration i. Owning companies that expand the reach of your products or services ii. Ex) Disney owning ABC, ESPN, Disney Pictures iii. 30 rock and product integration b. vertical integration i. owning companies that streamline the production of your products or services ii. ex) a magazine publishing company owning companies that produce glossy paper iii. ex) time warner owning Warner Bros. pictures and Warner Bros. Home entertainment c. interlocking directories i. Members of the board of one company sit on the board of another company ii. newscorp, Disney, Viacom, and time warner have 45 interlocking directorates iii. Make is so profit is high d. Media content (broadly speaking) i. Potential decrease in diverse speaking ii. Potential decrease in risk-‐taking, increase in duplicative content (same Disney plots, different characters) iii. Desire to maximize certainty iv. Cradle to grave loyalty (Disney) e. Journalistic content i. Greater reliance on syndicated and wire content (cheaper) 1. Potential decrease of local voices 2. Potential homogenization of wire content (STL postdispatch story can show up in other LEE enterprise paper) ii. Lack of local print competition (2 paper cities) 1. 1920: 43% of cities had multiple newspapers 2. 2000: 1% did iii. potential decrease in risk-‐taking, covering of underrepresented voices 1. desire to maximize certainty in dual market iv. potential desire to attract affluent audiences v. tension between public sphere and product models of journalism vi. concern that streamlining of business operations lead to cost-‐ cutting of valuable assets (experienced journalists) vii. devoting resources to more profitable content 1. unrealistic conceptions of nominal annual growth a. 1970-‐80 annual average growth among Gannett papers: 30-‐50% b. 1990 annual average growth across the entire industry about 29% 2/25/2016 I. graphs a. newspaper graph from NY times showing that there is a circulation decline for paper II. factors contributing to crisis in business model a. newspaper chains carries loads of debt b. borrowed money to own more papers to get horizontal c. high expectations for annual growth not being met d. 2008, financial crisis e. monopoly on news challenges with the rise of blogging, citizen journalism f. change in consumption patterns among young people g. high operating costs for print media h. decline in classified revenue (craigslist effect) i. online ads not worth as much as print ass (dollars to dimes) j. online delivery seen as complementing print media III. dollar to dimes a. prints advertising 1. publishers set rates 2. rates based on size, color, location 3. maximum exposure potential is publication circulation 4. print had monopoly on information, audience b. online advertising 1. advertisers have more power over setting rates 2. rates based on impact (interact with ad) 3. exposure and impact are highly trackable 4. print has lost monopoly over information, audience c. newspapers went to rise of 60 billion in 2000 to 40 billion in 2010 d. as news print ads decline as online ads are rising e. money is going to big corporations to GOOGLE, YAHOO f. in 10 years, went to 50 billion in ads g. online ad revenue market is highly concentrated-‐Google, yahoo, Microsoft, AOL, Facebook and then just everybody else is only 23b IV. change in consumption patterns a. declined after 2008, but rebounded a little after b. newspaper sale has decreased overall since 2003 by 5% c. where people get their news-‐traditional news (paper, TV, and radio) has declined but print has a steeper decline d. 2005, people get more online goes up about 12% e. internet has contributed but traditional was declining even before internet became more accessible f. people have been consuming less news over all g. young people consuming less news than any age group V. the craigslist effect VI. role of 2008 financial crisis and great recession a. ads for jobs went down the most; steep decline VII. loads of debt a. the internet and financial crisis of 2008 had major impact but other factors as well b. chains took debt in 90s to acquire more papers-‐> high rates of returns c. trend today: debt 5-‐20 ties greater than annual revenue d. consequence: newspapers have had to cut newsroom aspects which has made journalism decline in quality and thus people have seen that e. stock drop of big companies like lee VIII. response from newspapers a. layoffs, buyouts, redundancies b. concessions, furloughs c. closures, online-‐only publication (2011: 152 papers closed down)-‐> rocky mountain news, Seattle post both closed and those cities became one paper towns d. reduced circulation; went to 3 times a week e. step decline in news room cuts from 03-‐06-‐>9,000 f. photographers have had the hardest cuts IX. impact on content a. 35% reduction in newspaper reporters covering state legislatures (2003-‐2014) b. major reductions of regional newspapers have DC bureaus st c. major reductions in foreign bureaus (most expensive; 1 to get cut) d. movement away from beat reporting e. layoffs of most experienced (expensive) reporters f. major decrease in professional photography jobs (Chicago sun times cut its entire 28 person photo staff in2013) g. copyediting and page design took major hits h. in 2013, 31% of Americans left a new outlet because it stopped covering news they were use to X. closer look at the impact of the crisis on reporting on local government a. reporters spread too thin (do more with less) b. loss of “institutional memory” c. tendency toward “pack journalism” –wait for something sensational to happen d. rise of click-‐driven journalism (reporting in extreme/outrageous bills rather than weighty yet boring matters) e. local government reporting seen as a “stepping stone” journalism f. state/local politician bypassing traditional gatekeepers, fact-‐checkers (not as heavily scrutinized) XI. social factors a. 75% of young people that of local paper were gone then would have no impact on how to get their information b. people respond that news stories are less complete and turning away; not quantity but quality c. irony; most people no nothing about the news financial debt 1. don’t know why the quantity is bad so Americans don’t understand; since the newspapers aren’t really explaining the debt XII. impact on society? a. NOLA people are more likely to click on private schools then public where most kids in NOLA go to school b. Kentucky; changes in municipal politics after paper closed-‐> voter turn out decreased and people said they had doubts about what they could change 1. Revealing because reporters are suppose to give civic function of what the policies could change XIII. Silver linings a. Rural newspapers have not suffered as bad as papers in metro areas (and some have thrived); more secure advertising base b. However, any buts to the USPS disproportionately affect rural newspaper delivery c. Newspapers with really high circulations and those with really low circulations have increased hiring d. Ad revenues is going up online so some has been going to online news e. TV and print newspaper have more ad spending share then time spent share f. Classified ad spending is recovering; as consumer spending is going up g. Broadcast local is increasing audience h. Since 2012, morning news and early evening news have had slight increase in viewership and slight increase in ad revenue i. Mobile ad revenue is taking off, in 4 yrs. increased 18b j. Magazine and newspaper digital ad is increasing but magazine is increasing more k. Stocks are recovering for big companies, not a lot but some, 2013 XIV. What so the stocks say? a. Increase cannot fix debt that has been taken in b. Stock alone is not able to measure “responsible growth” c. “Business as usual” behavior XV. key takeaways a. crisis in the traditional business models of news media b. crisis mostly in newspaper c. multiple factors to crisis 1. economic 2. structural 3. social
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'