16/11/16 - Newspapers big and small are facing an existential crisis

https://www.theguardian.com/media/greenslade/2016/nov/11/newspapers-big-and-small-are-facing-an-existential-crisis?CMP=Share_iOSApp_Other

The article highlights how newspaper business models are based around ad revenues - which is being destroyed by the internet. The impact is being shared across all newspaper regardless of the size. The Wall Street Journal 'required voluntary redundancy' in which 48 people complied with. The 'Downsizing expense' is being seen on a regular basis where papers are either closing down, looking for wealthy buyers who can afford to lose money or reducing the numbers of staff in an attempt to reduce costs. US print ad revenue is down by 35.1% so far this year and it has been described as the 'digital giants are sucking app advertisers' and that 'print isn't enticing advertisers. There is also the suggestion that sites such as google and Facebook should be required to pay a 1% levy to fund public service reporting.


O One-fourth of advertising revenue now comes from digital advertising.
O Editor & Publisher’s DataBook listing 126 fewer daily papers in 2014 than in 2004.
O Average weekday circulation fell 7%, the most since 2010
O digital circulation increased by 2%.
O Print Circulation dropped by 9%
O 2015, 75% of newspapers’ advertising revenue came from non-digital sources

(Newspapers: Fact Sheet

BY MICHAEL BARTHEL)

I Think that if newspapers can be descried as an ad business then they were destined to fail,being solely reliant on a source of income that could have ben unreliable from the start meant the economic instability was inevitable. Furthermore, the 1% levy fee could mean that more regulations and control would be put on the news as the money would have to be spent wisely/in the interest in the people who are giving it to them. Moreover, The 1% may only be useful if used properly. Using it to invest in continuing the newspaper in a way that is failing already would have no positive impact. it has to bemused in a way that can help the institutions to adapt to the changing times and use the internet to benefit them. It can't just be another source of just funding. it has to be invested.