News in the Link Economy
Media guru Rupert Murdoch (owner of Fox News, the Wall Street Journal and a plethora of newspapers under his News Corporation mantle) yesterday re-launched a firestorm by announcing that his company will start charging for online access to its news content. It’s a tactic competitor Associated Press has openly considered as well. The New York Times has a helpful roundup of what media watchers are saying.
For young news and media consumers, this remains an interesting moment in time. The easy parallel is that of the music industry’s attempts to fight off online piracy through a variety of online music sales models. Despite the endless speculation, and some notable successes (Itunes), nothing seems to have worked the way the music industry wanted it.
It’s difficult to predict how well Murdoch’s attempts will work, especially with young people. If the music industry has so much trouble convincing people to pay $1 for a song they can listen to over and over again, how will they convince consumers to subscribe to something they’ll likely only read once?
Aside from the general problem about a lack of a viable advertising model for news content creators, our Youth Media DNA studies last year showed that young people didn’t seem to understand the unique function of newspaper-style reporting vs. that of other media. Without that understanding, it’s difficult for newspaper content providers to distinguish themselves, especially online, where the content created by a TV station looks the same as that provided by a newspaper. Compare how CTV covered recent jobless figures with the Canadian Press article on the Toronto Star.
That, coupled with the fact that the objective-style reporting is now easily co-opted and repackaged into snarky forms by aggregators is also problematic, and not only for the newspaper industry.
How then to convince young readers as to necessity of a news gathering organization and the economic model that supports it? News Corp appears to be giving up on this front. We’ll see how strong that arm is.