The Digital Transformation of 21st
   Century News Journalism
 Presentation to Conference on Digital Media and
      Journalism, School of Communication,
      Ming Chuan University, Taipei, Taiwan,
                 12 October, 2012

             Professor Terry Flew
          Creative Industries Faculty
      Queensland University of Technology
Drivers of Digital Transformation

• Convergence of media industries and content
• Distribution of content across multiple delivery platforms
• Media globalization
• Exponential increase in information and entertainment
  content available to consumers
• User-created content, participatory media, and blurring
  of producer/consumer lines
It’s not just the Internet

• Rise of knowledge-intensive industries and creative
  industries
• Network externalities
• Rise of peer production and sharing – openness and
  mass collaboration in Web 2.0 environments
From mass communications media to social
media: the crisis of news
                     MASS COMMUNICATIONS MEDIA                SOCIAL MEDIA
                     (20TH CENTURY)                           (21ST CENTURY)


MEDIA DISTRIBUTION   Large-scale; barriers to entry           Dramatically reduced barriers to entry



MEDIA PRODUCTION     Complex division of labour; media        Easy to use web 2.0 technologies;
                     professionals as content ‘gatekeepers’   small, multi-purpose teams as
                                                              “preditors” (Miller)



MEDIA POWER          Assymetrical – one-way communications    Greater empowerment of
                     flow                                     users/audiences through interactivity
                                                              and choice


MEDIA CONTENT        Tendency towards standardised “mass      Segmentation of media content markets
                     appeal” content                          and “long tail” economics (Anderson)

PRODUCER/CONSUMER    Mostly impersonal, anonymous and         Potential to be more personal; rise of the
                     commoditised (audience as mass market    produser (Bruns); user networks and
RELATIONSHIP         target)                                  communities



PAYMENT SYSTEM       Audiences cross subsidised by            Not clear as yet: subscription,
                     advertisers (commercial media) or tax    “freemium”, free?
                     revenues (public service media)
Ways of thinking about digital
transformations

              MAJOR                               INCREMENTAL
              TRANSFORMATION                      CHANGE
OPTIMISTIC    Democratization of journalism       New ways of accessing
              with rise of participatory media    and delivering the news
              culture e.g. Clay Shirky, Charles   – journalists have always
              Leadbeater, John Hartley, Henry     dealt with technological
              Jenkins                             change



PESSIMISTIC   “Cult of the amateur”; loss of      Strengthening power of
              maninstream journalism jobs         major media
              not compensated for by the          corporations
              Internet
OECD, Evolution of News and the Internet
(2010)

1. Declining sales of print newspapers
2. News consumption migrating to the Internet
3. Structural crisis of newsrooms – shift of classified and
   print advertising
4. New opportunities online, but new competitors (e.g.
   sports organizations)
5. Move to digital-only newspapers?
6. Online advertising generates less income
Decline in newspaper sales
U.S. advertising spend 2011




    Source: KPCB Internet Trends 2012
Shift of young people to online news

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The new online news media ecosystem

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Newspaper advertising revenues
The crisis of mainstream journalism

• Undermining of traditional news business models
• Falling share prices/rising debt for established news
  media businesses
• Shift in the “attention economy” of users
• Crisis of authority for professional journalism
• Growing public distrust of journalists
• Rise of the “PR state”
The renewed appeal of alternative
journalism

• The “Fifth Estate” (Dutton, Benkler)
   Non-profit [organizations] focused on bringing to light
   direct, documentary evidence about government behavior so
   that many others, professional and otherwise, can analyse
   the evidence and search for instances that justify public
   criticism … [they use] uses a combination of
   volunteerism, global presence, and decentralized action to
   achieve its results (Benkler, 2011: 55).
Monitory democracy (John Keane)

• solving a basic problem facing contemporary
  democracies: how to promote the unfinished business of
  finding new ways of democratic living for little people in
  big and complex societies, in which substantial numbers
  of citizens believe that politicians are not easily trusted,
  and in which governments are often accused of abusing
  their power or being out of touch with citizens, or simply
  unwilling to deal with their concerns and problems
  (Keane, 2010: 354).
Lessons from the online alternative
journalism movement

• A sustainable business model matters
• Continuing advantages of mainstream media: brand,
  workforce, audience
• Challenge of the news/opinion relationship
• Potential for access to information to become stratified
  by income
• Shifting role of public service media – from PSBs to
  multi-platform media
Wikileaks as an alternative
Pros and cons of Wikileaks

• Challenge of tech-savvy “critical outsiders”
• Need in democracies for transparency and information
  access
• “Wikileaks effect” will be felt for a long time
• But …
   –   Very reliant on Julian Assnage as charismatic figurehead
   –   Dilemma of internal accountability
   –   Balance of fact and advocacy
   –   Continued reliance on mainstream media outlets