Moaning can be a strategy, and the media has been using quite a bit of it in recent years. When the pandemic struck in the spring of 2020, it even felt like there was a competition for the bleakest headline. Who in the industry doesn’t remember Buzzfeed’s reporter Craig Silverman concluding that the coronavirus was a “media extinction event“. Last year though things went surprisingly quiet in the horror scenario department. And now the latest trend report by Oxford-based Reuters Institute is predicting something like a bull market for the industry: The subscription business is flourishing and even the digital advertising market, which had long been declared dead, has made a strong comeback. 59 percent of the surveyed 246 media executives from 52 countries reported rising revenues, and three out of four respondents expected an even better business in 2022. Hooray, we are playing again!
It should be noted that the annual survey is not representative. Mostly those respond who are already committed and possibly proud of their successes. Nevertheless, the situation is apparently better than the mood. Instead of a “media extinction event”, the pandemic has become a “media empowerment event.”
Fuelled by increased user interest and trust levels, editorial and management teams at many publishers have finally taken their fate into their own hands. They are developing new formats and workflows geared to user needs, fine-tuning subscription models, and even taking care of their customers. The crisis has accelerated innovation, dozens of media executives had already gone on record for the EBU News Report, published in late November 2021 (transparency note: I am lead author of the report).
This is about time. For decades, journalists have left the money-making part of the business to the publishers. These, in turn, had often just administrated advertisers and subscribers rather than selling advertising formats and journalism. But suddenly, advertising revenues dwindled, whereas on the content side, the quality supply multiplied. Journalism had become a consumer good, to be developed and sold accordingly. Only the producers had noticed it rather late. These days things are different. In many media outlets, teams of journalists, marketing, and tech have started to work together on products for different audiences. And what’s at least as important is that publishers look at how their neighbours are doing it, support each other, and – the master discipline – even develop solutions jointly. For 2022 and beyond, the smart ones are collaborating, cooperating and/or training together. This is happening on an international and national level. There are several examples:
► In the project “A European Perspective“, led by the European Broadcasting Union, public broadcasters share important content and make it accessible in different languages with the help of automated translation.
► In the Table Stakes Europe program, managed by the World Media Association Wan-Ifra, European publishers train their editorial teams in the “audiences first” principle and support each other; they recently started their third year (transparency note: I work as a coach in the program).
► In the award-winning Drive project, led by Deutsche Presse-Agentur, more than a dozen German regional publishers pool their user data and jointly analyse the findings.
And the number of international training programs, in which seasoned journalists and media managers look into each other’s decks and learn new skills, continues to grow. When it comes to innovation, scarce resources render it not only impossible but also stupid to be a lone warrior. This is especially true for public service media, where waste is hard to justify in front of the license fee or taxpayers.
Of course, there are also those who want to – and possibly can – go it alone. In the first week of January, The New York Times announced its acquisition of sports journalism platform The Athletic. It did so for $550 million, giving it access to subscribers across America and beyond. The industry has been debating ever since whether this is a new killer virus for local journalism or not all that bad, as Joshua Benton of Harvard’s Nieman Lab reflected.
And then there’s Axios, another U.S. digital journalism provider, which plans to redefine local journalism in a land of news deserts. It launched Axios Local and is expanding into audience-centric business journalism with Axios Pro. In addition, there are plenty of creators on both sides of the Atlantic who are making their debut as founders, either alone or in teams. Young journalists seem to have overcome their shyness when it comes to business models. Just a year ago, Project Oasis, a major study on media start-ups in the U.S. and Canada, analysed that many founders’ lack of business knowledge was the biggest hurdle to becoming successful media entrepreneurs.
So, are the many appeals to support journalism superfluous because the industry can manage without help? It’s not quite that simple. Pressure on press freedom is growing in many countries, and journalists are increasingly exposed to aggressive attacks. In addition, many customers could develop a kind of subscription fatigue and thus bring the positive development to a standstill. In the “Trends and Predictions” report of the Reuters Institute, significantly more respondents were convinced of their own company success than predicting a great future for journalism. This demonstrates a new sense of agency but also a certain humility. The diligent workers outnumber the visionaries. Most respondents said their focus this year would be making what they had already built better, more efficient and more user-friendly. Making growth sustainable, this should be a central goal – in 2022 and beyond.
MUNICH – When a local radio station in Charlotte, North Carolina started a podcasting competition in its community, it was prepared for many contingencies, except one: that the response would overwhelm the station’s server. The initiative was aimed at increasing on-air diversity, and tens of thousands of people wanted in. Groups and individuals from all walks of life submitted more than 370 ideas for podcasts, and 33,000 listeners logged on to vote for them. What started as a one-time experiment will now be a regular feature.
Journalism has always suffered from a lack of diversity. Demographically uniform newsrooms have been producing uniformly homogeneous content for decades. And while editors around the world have increasingly recognized that this is a problem, too little has been done to address it.
One reason, ironically, is a preoccupation with digital change. “There has been so much focus on digital transformation in recent years, the question of diversity has had to stand aside,” explains Olle Zachrison of the Swedish public broadcaster Sveriges Radio, in a study comparing diversity efforts in the United Kingdom, Sweden, and Germany. And yet, as the newsroom in Charlotte discovered, diversity is not just an added bonus; it is at the very core of audience engagement today.
In explaining the business ethos of the digital age, Amazon founder Jeff Bezos has argued that it is all about “customer obsession as opposed to competitor obsession.” For the media, then, the guiding principle should be “audience first.” And that means using data to understand and cater better to it.
Not long ago, editorial choices were guided mostly by gut feelings and assumptions, whereas now they are often informed by analytical metrics and revealed truths about audience behavior. Some of these revelations are uncomfortable. Editors can no longer fool themselves about their journalism’s real-world impact. They now know that even the best stories tend to reach just a fraction of their hoped-for audience.
Complicating matters further, newsrooms have discovered that demand can peak at times when they have no new offerings, or when what they’re serving is not what consumers are seeking. In surveys like the Digital News Report, respondents often complain that the media offer too much negativity and volume, and too little explanation and relevant coverage.
Before digitalization, journalists didn’t have to think about their audiences as much as they do now. Newspapers were money-printing machines – the advertising dollars poured in regardless of what would now be called “content.” Likewise, public-service media faced almost no competition. But now that digital information is a commodity, with a few major platforms controlling its distribution, audience loyalty has become a matter of survival.
Many newsrooms were entirely unprepared for this new reality. They don’t even know who their potential new customers are, let alone how to reach them and win their trust. The problem is not just that newsroom homogeneity results in an incomplete view of the world and of the reading/listening public. It is that even when “outsiders” do land a job in this kind of environment, they tend to adapt to the dominant culture rather than challenge it. As a result, newsrooms remain ill equipped to reach out to new audiences.
The lack of diversity in the media has actually worsened in recent decades. Back in the heyday of local news, newsrooms were no less white or male, but being a journalist at least didn’t require a university degree – only a willingness to dive in and chase leads. Yet as the industry became concentrated more in big cities and employment prospects elsewhere diminished, education became yet another entry barrier. While the better-educated candidates moved up to higher-profile jobs, many others left the profession altogether.
In keeping with the industrial society of the time, the occupational model that followed from these changes was hierarchical. As with teachers and their pupils, preachers and their congregations, and experts and the lay public, education conferred status and authority upon journalists. The public was a passive recipient of information, not an engaged participant in a broader conversation.
Clinging to this hierarchical structure is now a recipe for failure. The digital world of information is one of choice and abundance, but also of considerable confusion about what is true and false. Trust is a news organization’s most valuable asset, and the task for journalists is both to challenge and inspire their audience, and to invite conversations among them.
That can’t happen unless journalism represents the society in which it is operating. Unfortunately, a recent global survey of media leaders finds that while editors see progress toward gender diversity, much more must be done to achieve racial and political diversity, as well as a balance between “urban” and “rural” backgrounds. The most likely reason for this failure is that industry leaders continue to regard the digital transformation as a matter of technology and process, rather than of talent and human capital.
Fortunately, the digital transformation represents an opportunity. As Jeff Jarvis of the City University of New York explains, industry leaders should “Try listening to, valuing, and serving the people and communities who were long ignored and left unserved by our old industry, mass media.” All news organizations should take Jarvis’s advice – and not just because it is the right thing to do. Their own survival depends on it.
This commentary was published in ten languages by Project Syndicate on June 25, 2020