Collapse Of The Newspaper Industry And Its Replacement By Online News

1215 words - 5 pages

Question 1
Information Technology has revolutionised the way through which people access information. Chen’s article, “Newspapers fold as readers defect and economy sours” shows this by detailing the collapse of the newspaper industry and its replacement by online news. Prior to the widespread availability of the internet, consumers were forced to rely on newspapers and television to find out the news of the world. These comparatively old medias are offered to the public on a delay due to the process of printing and production. However, the internet now offers news and information to these same people, free of charge and on demand.
The development of online news has therefore resulted in its overtaking newspapers as a popular source for news (Pew Research Center , 2008). Reasons for this occurrence are evident when analysing modern lifestyles in technologically advanced countries. Instant access to services such as fast food and online banking is a distinguishing feature of this decade, and access to news conforms to this trend. Increasingly common internet-enabled phones allow users to access diverse news content wherever they happen to be, whereas in previous years a newspaper was the only portable choice (Reardon, 2007).
The ad-revenue-based business model of the newspaper is collapsing (Carr, 2008), particularly in the technologically advanced United States (Chen, 2009). Most major newspapers offer a free version of their content online while relying on revenue from physical sales and ads. Carr (2008) states that a newspaper ad costs “many thousands of dollars”, while online ads bring in only a few dollars for each 1,000 customers. This is a serious problem for companies that rely on paper sales. Increasing numbers of people are seeking their news online, meaning businesses are required to adjust their practices in order to keep customers (Villano, 2009).
An excellent example of adjusting to suit modern consumers is provided by American magazine The New Yorker, who now offer, as a bonus to subscription, a complete digitised archive of their publication since 1925 (Condé Nast Digital, 2009). Yet another solution that attempts to revitalise the newspaper industry is the Amazon Kindle e-book reader. Amazon’s Kindle currently allows customers in the United States to wirelessly access and purchase international newspapers and magazines, and read them on a paper-like screen (Amazon.com, Inc., 2009). IT-enabled solutions create an opportunity to increase revenue by cleverly integrating old media into new forms.
Consumers accessing online news have deprived large newspaper publishers from revenue, although some would claim that this has improved journalism through the creation of competition for readership between various medias. The production costs of a website are many times smaller than that of a printed newspaper; thus, penetration into the market is easier for independent journalists. Chen (2009) claims that competition leads to “better...

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