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News is now FREE

News is now FREE. Who will pay for quality journalism? Article by : Subash Gobine Presentation by : Ettioné Ferreira 21 March 2012; Sol Plaaitjies Institute for Media Leadership. History. Explosion in news Traditional newspaper Radio Television

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News is now FREE

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  1. News is now FREE Who will pay for quality journalism? Article by: SubashGobine Presentation by: Ettioné Ferreira21 March 2012; Sol Plaaitjies Institute for Media Leadership

  2. History • Explosion in news • Traditional newspaper • Radio • Television • ICT (Information and Communication Technologies)

  3. ICT’s • Includes satellites, internet, tablets, mobile, television, radio, etc. • Fast growing – largely driven by mobile technologies

  4. Rise of Mobile internet • ITU (International Telecommunication Union) • Estimated that at the end of Dec. 2009: • 4.6 billion subscribed to mobile tech • 600 million on mobile broadband • 2011: • 6 billion subscribed to mobile tech • 1.2 billion on mobile broadband The World in 2009: ICT Facts and Figures – ITU The World in 2011: ICT Facts and Figures

  5. What does it matter? • Multiplicity of sources • Global consumption • Massive migration of news outlets on the web • Many news sources on internet AND IT’S ALL FREE!!! (excluding data costs)

  6. Multiplicity of sources…

  7. Traditional VS. New Media costs • Traditional media: production costs, printing costs, distribution costs, etc. • New Media: Web Development, website host, internet access. = New media works out way cheaper! • If it’s cheaper to produce, why is there still traditional media?

  8. Free media Vs. Credibility • Blogs example of free media • User generated content/citizen journalism the future • No hosting costs • Freedom of expression • Importance of credibility • How do we regulate this? How do we as professionals maintain credibility on free media sites?

  9. Facebook • Over 500 million active users • Access is free • Numerous threats to ask subscription fees • Loyal users will stay… but how many will run? • Target market – younger audience – will they pay? • Will only work if the payers outweigh the lost users *Mark Zuckerberg – CEO of Facebook

  10. LOYALTY • Professionals trying to build customer loyalty • Loyalty – increase advertisers trust in product • With enough traffic, media can start charging after being free.

  11. How to make users pay for access? • Rupert Murdoch – charge for online access • Some content free, some paid • E-paper charge • Metered formula (eg. Financial Times) • NYTimes.com from Jan. 2011 = paid subscription

  12. CRITIQUES: • Internet makes user generated content easier: • Are professional journalists still needed? • People still want credibility & trust but how far would they go to get it? Will people pay for quality? • Living on advertising income • Free once, why pay again? • Will it only work for BIG companies (eg. the Mudochracy)

  13. REFERENCES: • Mdlongwa, F. & Letlhaku, M. 2010. “News is now FREE: who will pay for quality journalism?”. Harnessing Africa’s Digital Future. JOHANNESBURG: Konrad Adenauer Stiftung. Pages 18-23. • ITU online: http://www.itu.int/ITU-D/ict/facts/2011/index.html “The World in 2009: ICT Facts and Figures”. http://www.itu.int/ITU-D/ict/facts/2011/material/ICTFactsFigures2009.pdf. “The World in 2011: ICT Facts and Figures”. http://www.itu.int/ITU- D/ict/facts/2011/material/ICTFactsFigures2011.pdf. Accessed on 19 March 2012.

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