Entrepreneurial trends in journalism: Killing what you eat?

1. Entrepreneurial trends in journalism: Killing what you eat? Journalism 200 Philip Merrill College of journalism November 20, 2012 Prof sarah oates

2. Looking ahead • News quiz on Thursday 29 November; this will cover Friday 23 November from 9 a.m. to Wednesday 28 November at 5 p.m. If you are away from mass media over Thanksgiving, catch up when you get back (there will be suggestions via news apps in this class, I use cnn.com, washpost.com, sometimes nytimes.com)

3. What to take out of this lecture and reading (Hanson Ch 3) • An overview of the ‘major players’ in the US media market • ‘Vertical integration’ of the media production and distribution market across a range of platforms • Change over the past three decades in order to think about change in the next three decades. • The ‘new players’, i.e. Apple, Google, Facebook, etc. • The relationship between media BUSINESS and media CONTENT (i.e. do owners influence content?) • SHOULD a journalist have to be an entrepreneur? http://journalism.about.com/od/trends/a/Not-Every-Journalist-Can-Be-An-Entrepreneur.htm

4. Lecture plan Oral reports Claire Gawryck Media and the iPad: The Ad(app)table Future of News Emily Schweich Instragram in Journalism http://prezi.com/nxcnhlcfnoml/instagram-in-journalism/

5. THE MEDIA AND THE IPAD THE AD(APP)TABLE FUTURE OF NEWS Claire Gawryck JOUR200 Prof. Oates 11/20/12

6. Truth Four • “Nothing’s new. Everything that happened in the past will happen again.” • It’s the same news we’ve always consumed. Now it’s on a new platform.

7. Common attributes of news apps • Connect to social media: Send the article in email, share on Facebook, post to Twitter • Change font size and type • Search bar • Access to older news • Use of bold graphics/photos • All media sources use the iPad (paper, radio, TV)

8. Food for thought • “Mass communication is becoming less mass, and we have new media companies that specialize in providing narrowly focused content” (Hanson 103). • Is the iPad making mass communication more narrow? Or is it opening narrowly focused media to a broader mass?

9. Three types of news apps • Independent apps from established media • Recycle material from TV, radio, online for the app • iPad only apps: New companies delivering the news • Various sources to conglomerated into one app • “Digital copies” of paper news on Newsstand • News packaged into issues that are released daily, weekly, monthly, etc.

10. Independent apps From established media

11. cnn • Live streaming of broadcast • Video clips from TV reports • Written news from website

12. NPR • Live streaming of radio • Text news • Combines text and recorded clips of show

13. Ipad only apps New companies delivering the news

14. Flipboard • Easy “flipping” of pages • Photos and white space combine aesthetics with news • Multiple sources of news • Division of types of news

15. flud • Social networking • Follow news outlets and blogs • Multiple sources combined into one • Choose categories of news that interests you

16. Newsstand “Digital copies” of paper news

17. The New york times • Two different versions: free and subscriber • Save articles • Updates daily • Mirrors tangible paper copy

18. Glamour • Downloads new issues automatically • Requires subscription • Special iPad features and “perks” • Saves past issues

19. Questions • Do you believe adapting to the iPad is key to the news/media’s survival? • “Mass communication is becoming less mass, and we have new media companies that specialize in providing narrowly focused content” (Hanson 103). • Is the iPad making mass communication more narrow? Or is it opening narrowly focused media to a broader mass?

20. sources • Hanson • http://upload.wikimedia.org/wikipedia/commons/thumb/a/a4/IPad_3.png/482px-IPad_3.png • http://www.pcmag.com/article2/0,2817,2362575,00.asp • iTunes App Store

21. entrepreneur  (from French) • — n • 1. the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits • 2. a middleman or commercial intermediary

22. http://ask.reference.com/web?q=What%20Is%20Entrepreneurship?&o=100100http://ask.reference.com/web?q=What%20Is%20Entrepreneurship?&o=100100 • The pursuit of a self-owned business or company. Entrepreneurs are people who are willing to take risks to make a profit, whether by inventing a new product or opening their own company. • the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking … • the ability and willingness to establish and run a business. • Entrepreneurship is starting a business at your own risk after analyzing all opportunities and threats. • Entrepreneurship is when someone has a idea and starts their own business. They are driven by the passion to succeed … • The business of taking individual risks to make new ideas happen is called Entrepreneurship. Dictionary gives the meaning of entrepreneurship literally as "to take or carry between." This meaning is usually used in a true economic sense ... • http://www.associatedcontent.com/article/184604/what_is... • The word Entrepreneur is taken from French word "entreprendre" which means "Undertaker" i.e. the person who undertakes to organize, manage and assume the risks of new enterprise. The Entrepreneur is considered as the aggressive catalyst for...

23. Closest meaning in this context … • The term 'entrepreneurship' can be described in several ways but primarily it is the concept in which somebody uses all his energies to find solution to the problem that can serve him and his society in the best possible way. It can also be described as the process in which you look at things in such a way that nobody has ever imagined when the person provides the solution everybody realizes that it can be done and even followed. • http://www.blurtit.com/q862805.html

24. One way to think about it … • Have we had media EVOLUTION or media REVOLUTION?

25. US Media Ownership History/Trends • Tradition of private ownership • Growth of national news • A limited number of companies own the media outlets and there is no state-owned or state-run media for mass distribution in the general public (i.e. no real state player). This is unusual in terms of global patterns, because state or public television (like the BBC) is a really important part of the media mix in most countries.

26. US Media Ownership History/Trends • There has been steady evolution of media forms in the United States since the colonial era, many of these forms have co-existed (i.e. newspapers, radio, television, internet). • In 1980, VCR was a ‘scarce luxury’, cable TV just starting to get popular, USA Today yet to be published, MTV/CNN not yet on cable, only 3 broadcast TV networks, CDs didn’t exist in the mass market, mobile phones very rare (Hanson, p.80). Were the next 30 years a revolution?

27. Puzzle • Why didn’t the main media corporation adapt to the changing technology? Why did it take a separate group of entrepreneurs (Silicon Valley) to exploit much of the profit-making capability of the internet? If a key component of the internet is news content, why are news organizations not able to capitalize on this? • Will ‘changes in the way we communicate … transform the way we live’? (media journalist Ken Auletta quoted in Hanson, p. 81). If so, what does that mean for media CONTENT? What does it mean for media BUSINESS? How are these two interlinked?

28. Hanson’s Big Picture (p. 78) • In recent years, ownership of of newspapers, book and magazine publishers, recording labels, movie companies and internet companies increasingly concentrated – going from hands of families who started them to small number of very large corporations. • At the same time, entrepreneurs such as Steve Jobs able to use digital technologies to create new media that can ‘turn upside-down Big Media’s focus on using traditional tools to deliver media’ with the same techniques that have been used for decades or even centuries • Are ‘new channels’ (Hanson) really emerging or it is all really the same, just in a different format

29. Big Media • Vertical integration – the idea that one entity controls all aspects of production – in the case of the media, this means that a media organization would both create and distribute content (across a range of platforms) • From dictionary: absorption into a single firm of several firms involved in all aspects of a product's manufacture from raw materials to distribution • Synergy – the idea that companies can absorb other firms that complement (rather than replicate) their existing strengths. This hasn’t worked out well (Hanson)

30. The big media players in the US (Hanson) • Time-Warner, 2008 sales of $47 billion (more than the GDP of Uruguay) • Owns more than 30 magazines (including Time, People, SI, DC Comics). • Cable networks including HBO, CNN, TNT • Broadcast: CW Television network (co-owned with CBS) • Movie/TV studios: Warner Brothers, New Line Cinema, Castle Rock Entertainment, Hanna-Barbera Cartoons

31. Time-Warner History • Founded in 1922 by Henry Luce and Briton Hadden to publish Time magazine, added Fortune and Life. • By 1980s, Time Inc. had added multiple magazines, book publishers, local cable companies (HBO movies), • 1989: Time merged with Warner Communications (of Warner Brother movie fame) • 1996: Time Warner vastly expands cable TV by buying Ted Turners’s ground of channels including CNN, WTBS, TNT, Turner Classic Movies and Cartoon Network + internet and movie studios

32. David buys Goliath … Goliath spits David back out • AOL bought Time Warner in deal valued at $106 billion, companies merge in 2001 • But new company soon cuts more than 4,000 jobs, sold off properties such as sports teams, book division and Warner Music Group • Synergy never worked out (Hanson, p. 85) • AOL declined in internet terms since merger, now reinvented as an advertising-supported content provider than than as a key internet access point. • AOL ‘sold off’ in 2009, is again a separate company.

33. Amusing blog post on AOL/Time Warner debacle • Hotshot Merrill Lynch analyst Henry Blodget wrote that AOL Time Warner would provide “the operating system for everyday life.” • The operating system for everyday life. Yes, we were that stupid in February 2000. • Read more at http://venturebeat.com/2009/12/09/aol-spinoff-the-cheat-sheet/#qop4Vcrxx0ZA0rIk.99

34. Disney: The Mouse that Roared • Revenue of $37.8 billion in 2008 • Reliably turning profits of $3 billion to $4 billion over past several years prior to 2008 • As of 2008 (Hanson) Disney owned Hyperion Books, Disney Publishing Worldwide, magazines, ABC network, TV stations in at least 10 cities, 70 radio stations, cable networks (Disney Channel, ESPN, A&E, ABC Family, Lifetime Television), movie studios/distributors (Walt Disney Pictures, Touchstone Pictures, Buena Vista Productions,, Pixar, Miramax Films PLUS theme parks, cruise line business, more than 700 Disney stores, many international TV and broadcasting companies

35. Disney in 21st century • Importance of animation • Commitment to synergy • Media convergence: moving into using online media to promote its brands (part owner of Hulu). Among first Big Media companies to makes its movies and T show available through Apple’s online iTunes store.

36. News Corporation • Created by Rupert Murdoch from one newspaper in Australia in 1952. • Owns more than 275 newspapers worldwide, including Wall Street Journal, New York Post, Times of London, The Sun (British tabloid), The Australian (national daily) • Fox Broadcasting network, more than 25 TV stations in at least 17 cities • Cable networks, including Fox News and FX • Direct broadcast satellite companies BSkyB, Star Group, Sky Italia • Movie studios, including 20th Century Fox • All of part of 6 magazines, book publishers

37. Key points about News Corp • Worldwide presence in 9 different media types (newspapers, magazines, books, broadcasting, direct-broadcast satellite TV, cable networks, movie studio, home video and the internet) • Fiscal year 2009, News Corp had sales of $30.4 billion • News Corporation is controversial, due to Murdoch’s belief in ‘hands-on style’ (Murdoch family still owns approximately 40% of News Corporation) • Much hated in Britain due to labor disputes, predatory and illegal activities of Murdoch papers (Leveson Inquiry)

38. More info • See ‘Who Owns What’ page at the Columbia Journalism Review • http://www.cjr.org/resources/index.php

39. The rise of the internet business? • Google revenue in 2011 = $37.9 billion – now approximately equal to Disney as No. 2 company • Facebook revenue in 2011, $3.7 billion • Apple: $156.5 billion in 2012