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Building *The* Indian Knowledge Economy BrandViews: 435
Jun 21, 2005 1:12 am What's the future of the news business?

Bala Pillai

Dear all,

From fragmented factoids to more sense-making?

Cheers../bala

http://www.carnegie.org/reporter/10/news/

What's the future of the news business? This report to Carnegie Corporation of New York offers some provocative ideas.

There's a dramatic revolution taking place in the news business today and it isn't about TV anchor changes, scandals at storied newspapers or embedded reporters. The future course of the news, including the basic assumptions about how we consume news and information and make decisions in a democratic society are being altered by technology-savvy young people no longer wedded to traditional news outlets or even accessing news in traditional ways.

In short, the future of the U.S. news industry is seriously threatened by the seemingly irrevocable move by young people away from traditional sources of news.

Through Internet portal sites, handheld devices, blogs and instant messaging, we are accessing and processing information in ways that challenge the historic function of the news business and raise fundamental questions about the future of the news field. Meanwhile, new forms of newsgathering and distribution, grassroots or citizen journalism and blogging sites are changing the very nature of who produces news. With these elemental shifts in mind, Carnegie Corporation of New York has launched a major initiative on the future of news and commissioned this report, based on a survey of 18-to-34-year-olds carried out by Frank N. Magid Associates in May 2004. (A set of PowerPoint slides comprising a distillation of the survey data is available on the Corporation's web site, www.carnegie.org/pdf/AbandoningTheNews.ppt.) The goal of this effort is to assess where 18-to-34-year-olds get their news today and how they think they'll access news in the future.

For news professionals coming out of the traditions of conventional national and local journalism, fields long influenced by national news organizations and dominant local broadcasting and print media, the revolution in how individuals relate to the news is often viewed as threatening. For digital media professionals, members of the blogging community and other participants in the new media wave, these trends are, conversely, considered liberating and indications that an “old media” oligopoly is being supplemented, if not necessarily replaced, by new forms of journalism created by freelancers and interested members of the public without conventional training.

The Internet Migration

At the heart of the assessment of the news-related habits of adults age 18-to-34 are fundamental changes driven by technology and market forces. Data indicate that this segment of the population intends to continue to increase their use of the Internet as a primary news source in the coming years and that it is a medium embraced in meaningful ways. Newspapers and national television broadcast news fare poorly with this critical demographic group.

Surprisingly to some, among 18-to-34-year-olds, local TV is ranked as the most used source of news, with over 70 percent of the age group using it at least once a week and over half of those surveyed using local TV news at least three times a week. The local TV ranking is driven in an overall sense by women and low- and middle-income groups. Meanwhile, the second-most-used weekly news source, the Internet, is number one among men, high-income groups, and broadband users.

With over half of Internet users now connecting via high-speed broadband services, daily use of the Internet among all groups is likely to climb, because broadband access, the way an increasing number of households go online, makes daily usage more likely. Already, Internet portals—widely used, general interest web sites such as Yahoo.com and MSN.com that include news streams all day, every day—have emerged in the survey as the most frequently cited daily news source, with 44 percent of the group using portals at least once a day for news. Measured by daily use, local TV comes in second at 37 percent, followed by network or cable TV web sites at 19 percent, newspapers at 19 percent, cable networks at 18 percent and national broadcast networks at 16 percent.

And by other measures, the Internet is already clearly ahead of other media among the young. According to the Magid survey, young news consumers say that the Internet, by a 41-to-15 percent margin over second ranked local TV, is “the most useful way to learn.” And 49 percent say the Internet provides news “only when I want it” (a critical factor to this age group) versus 15 percent for second-ranked local TV. This audience, the future news consumers and leaders of a complex, modern society, are abandoning the news as we've known it, and it's increasingly clear that a great number of them will never return to daily newspapers and the national broadcast news programs.

Other notable findings revealed by the survey: although ranked as the third most important news source, newspapers have no clear strengths and are the least preferred choice for local, national and international news. On the TV front, cable news is the fourth most valuable news source just ahead of national network programs. Those broadcast newscasts are, however, considered the number-one source for national news. Cable is considered up-to-date and accessible, but not as informative as the Internet.

A Revolution In News
And In Public Discourse

The dramatic shift in how young people access the news raises a question about how democracy and the flow of information will interact in the years ahead. Not only is a large segment of the population moving away from traditional news institutions, but there has also been an explosion of alternative news sources. Some have been assembled by traditional news organizations delivering information in print, on television and on the radio as well as via the Internet and mobile devices. Others include the thousands of blogs created by journalists, activists and citizens at large.

Clearly, young people don't want to rely on the morning paper on their doorstep or the dinnertime newscast for up-to-date information; in fact, they—as well as others—want their news on demand, when it works for them. And, say many experts, in this new world of journalism, young people want a personal level of engagement and want those presenting the news to them to be transparent in their assumptions, biases and history.

  Next page: Through Internet portal sites, handheld devices, blogs and instant messaging, we are accessing and processing information in ways that challenge the historic function of the news business and raise fundamental questions about the future of the news field.

 

cheers../bala

Bala Pillai  bala@apic.net

Sydney, Australia

Knowledge Economy Brands-in-the-making (since 1995)

Knowledge Management + Social Networks + Citizen Journalism + Complementary Currency

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