As I wrote a few days ago, the Pew Research Center’s Project for Excellence in Journalism released their report on the issues facing media outlets in 2009. The report covered corporate-owned, non-profit, and new media. The Columbia Journalism Review looked over the report and highlighted some of the more noteworthy trends and facts they read:
- We estimate that the newspaper industry has lost $1.6 billion in annual reporting and editing capacity since 2000, or roughly 30 percent, which leaves an extra $4.4 billion remaining. Even if the economy improves, we predict more cuts in 2010.
- $141 million of nonprofit money has flowed into new media efforts over the last four years (not including public broadcasting). That is less than one-tenth of the losses in newspaper resources alone.
- A new survey on online economics, released in this report for the first time, finds that 79 percent of online news customers say they rarely if ever have clicked on an online ad.
- Advertising during the year declined for the first time since 2002, according to data from eMarketer. Updated August projections put the declines at 4.6 percent, to $22.4 billion in total revenues.
- Only about one third of Americans (35 percent) have a news destination they would call a favorite and even among these users, only 19 percent said they would continue to visit if the site put up a paywall.
- 71 percent of Americans feel now that most news sources are biased in their coverage and 70 percent feel overwhelmed rather than informed by the amount of news and information they see.
- At night, when cable is dominated by ideological talk shows, Fox grew by nearly a quarter to an average of 2.13 million viewers at any given moment. MSNBC rose 3 percent to 786,000, while CNN fell 15 percent to 891,000 viewers…In daytime, CNN was up 9 percent over 2008 to an average of 621,000 viewers. But Fox daytime viewership grew again by almost a quarter, to roughly twice CNN’s audience (1.2 million viewers). MSNBC, relying on NBC news people more than talk show hosts, fell 8 percent to 325,000 viewers.
So basically, what you see here is a vicious circle constantly reinforcing itself. Since the start of the Great Recession, legacy media publishers are losing tons of money in traditional advertising so they’ve cut costs and some have increased their online presence to include online ads. Since most people aren’t clicking those online ads, publishers are flirting with the idea of paywalls to make up the lost revenue. The problem with this is that most people will simply stop going to the site if they have to pay (something publishers should have realized after The New York Times‘ disastrous fling with them (although it appears not even the NYT learned that lesson)). So publishers have spent even more money they will not see coming back as revenue, which forces them to cut back even more.
Since New Media seems to be linking quite a bit to Old Media, expect them to start transitioning to either original reporting with little or no payout, looking for hyperlocal sources to link to, or an increase in opinion pieces, leading to both a loss of investigative reporting and objective news in the hands of a very few number of people.

![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=01742adb-ef83-41ad-9aaa-e4e2144c49ce)
