The internet, which offers numerous possibilities, has also proven to be the downfall of journalism, as exemplified by the struggles of digital media-news companies like BuzzFeed and Vice.
Digital newsrooms have experienced significant setbacks recently, with BuzzFeed News abruptly closing down, leaving many talented journalists jobless. Vox Media also laid off 7% of its staff and faced a reduced valuation compared to previous years. Vice’s bankruptcy filing further underscored the challenges faced by digital news outlets.
The internet’s impact on journalism can be likened to the effects of Gutenberg’s printing press. It upended communication and continues to bring uncertainty to the news media landscape. Major experiments in digital news have often failed due to a disconnection between audience presence and profitability. Digital advertising revenue, expected to be driven by audience size, instead migrated to social media platforms, primarily Facebook.
Venture capitalists, who initially funded news sites with optimism, became disillusioned and impatient as expected returns failed to materialize. Social media’s role in news distribution did not pan out as anticipated, and the internet faced its own challenges, leading to Twitter users and hundreds of laid-off journalists expressing concern about its stability.
News organizations seeking success in the fully digital age are confronted with difficult questions. While some experiments have failed, others have found success in diversifying revenue sources. Quality digital-first news sites, such as ProPublica, have thrived, relying heavily on philanthropy. The New York Times, a traditional media outlet, succeeded in the digital age, partially due to non-news initiatives like puzzles, cooking apps, and product reviews. The Wall Street Journal’s exclusive business coverage and impenetrable paywall attracted a wealthy audience, while smaller local-news sites like Mississippi Today achieved recognition and sustainability through memberships, events, and philanthropy.
Billionaire-owned news companies like The Washington Post have relatively more stability, but they still grapple with the loss of advertising revenue. The Guardian, owned by the Scott Trust and supported by its readers, demonstrates an essential component of financial health in the digital age.
The digital revolution remains in its early stages, and there is no single solution for the future of journalism. Diversified revenue models prove to be a promising approach for sustainable business models. The industry has learned from past mistakes, acknowledging its over-reliance on print advertising and social media distribution.
The report highlights that the importance of quality journalism cannot be overstated. Successful news organizations, whether legacy or digital, adhere to their core strengths and expand strategically. The New York Times’ commitment to its news report and core identity played a significant role in its continued success, even during turbulent periods. Notably, the success of news outlets does not hinge on whether they are legacy or digital newcomers; rather, it is contingent on building strong core identities and sustainable business models.
In conclusion, the internet’s impact on journalism has been transformative, posing challenges and opportunities for news organizations. The struggles of BuzzFeed and Vice underscore the need for diversified revenue models and a focus on core strengths. News outlets that adapt and innovate will thrive in the digital age, while the importance of quality journalism remains paramount in serving the public’s need for reliable news and information.
