Everyone’s trying to work out how journalism is going to work online - especially how the hell it’s going to be paid for. Making the news market work online (well, monetizing anything online) is tricky. But a decent question is whether journalism works as a market product now. Most publications are certainly trying to make money out of it, but is journalism governed by supply and demand? Not really.
Can I back that statement up? I can have a go. Take a look at the graph below, from google trends:

The top graph is number of UK searches in the last month on 4 more-or-less random current affairs stories. The bottom graph is (roughly) the number of stories written by professional news organisations in that time. There’s a reasonable correlation for the olympics, but you’ll note more’s written than read on the credit crunch, and vice versa (bigtime) on Shannon and Madeleine. Recession? Who cares?
If journalism’s a market, it’s not really working. I spotted another sign that the journalism market doesn’t behave over at Adrian Monck, who carried a quote from a blog post on the Berkman Conference (on “participatory media”, no less):
Serious journalism was described … repeatedly, as something akin to like broccoli, or medicine the citizenry needs to spoon down, no matter how unpalatable, if democracy is to survive. That’s despite the fact investigative, or civic, journalism is still seen inside the industry as being at the top, most vital top end of what we do. Yet I struggle to think of another industry that views its premium product as something akin to a nasty cough syrup - necessary, good for your health, but irredeemably foul-tasting.
(Apologies to Prof Monck, from whom I’ve lifted not only this snippet, but also post title. Tsk.)
Let’s accept for now that papers (and other outlets) don’t just offer what people want to read. There’s a lot that’s market-driven, of course, or papers would quickly go out of business. But at least some (to differing extents) of what gets published is not just there to satisfy demand.
This idea helps to explain why “old media” is starting to have a tough time of it. The obvious example here is gawker. Gawker’s bloggers are paid by the number of views each post gets. Don’t know about you, but that scares the bejeesus out of me, as a “content provider”. But I digress. Bloggers have very little incentive to produce worthy-but-dull content for gawker - feeding what the public wants is really the only way. Old media outlets, whose staff don’t face such direct incentives, are less likely to be so market-focussed, so may struggle. But should news outlets follow the market? There’s a decent argument against it - but be warned, economics is involved.
Warning: 3 paragraphs of economics follows. It’s worth it though, honest.
Some “serious” journalism has benefits to society. Let’s say I buy the Guardian because I enjoy reading it. As I’m browsing through, I read that all that stuff about MMR vaccines causing autism was, well, bollocks. As I result, I have my children immunised, and we don’t get measles outbreaks in our school. My personal decision to buy the paper had benefits to society at large. There’s also usually arguments about informed democracy, and keeping politicians honest, etc, in this reasoning. Goods with these funky benefits are called merit goods in economist lingo.
Merit goods sound great, but they’re actually a pain in the arse. To see why, it’s easiest to think about the opposite. When I buy a car, it causes problems for everyone else in society. It adds to traffic congestion, it’s noisy when I drive around outside your house, it means my neighbours have to battle with me for parking, it wears down roads, and of course it contributes to climate change. My car costs you, and the Government, time and money which I don’t notice. To force me to take these into account, I pay tax on my car and on fuel - I’m forced to take the social cost on board.
But in the opposite situation, it’s a bit trickier. There are benefits to society in me following the news - instead of wanting less people to use the good (as with cars), we would like more people to read papers (or news sites, or broadcasts). The “free market” fails for goods like these exactly as it fails for cards - the “right” amount isn’t provided (see the earlier “merit goods” link for a nice graph showing this). One way to fix this is to lower the cost - Government subsidies to News International anyone? No? TV networks are compelled to provide a certain amount of news each day - for “public service” reasons. Should we do the same for other potential news outlets?
Economics bit over. Thanks for your patience
Until now, we’ve never really needed to. There are many reasons for owning a newspaper, and profit is rarely chief among them (thankfully). Very few newspapers rake in the cash - nor many magazines. Papers are a path to influence public opinion, a show of status for the owner, an almost surefire route to a peerage, and more. Proprietors’ complex motives have actually led to partial fixing of the “merit goods” issue.
Newspapers bundle a load of content together - sports, arts, TV listings, film reviews, comment and news. People buy the Sun for its cracking sports section, and keep roughly abreast (pun unintended but left in place) of current affairs at the same time. You may buy the Indie for a particular columnist, and get the rest thrown in. A populist front page story about house prices may draw someone in to buy a paper containing “worthy” stuff within. It’s worked for decades.
And along comes the ‘net, and bundling has had it. There are compensations: it’s easier to get something big out there quick and well than it ever was. It’s also easier to communicate and interact with your core audience - and even “dull but worthy” has a decent population wanting to read it. The ‘net’s prevailing price point (free) makes it easier for, say, business consumers to tune in to the relevant RSS feeds of several news organisations at once. “Quality” journalism isn’t necessarily doomed. But mass-market news is in trouble.
There’s probably an opportunity there, too. Bundling’s probably a fairly lazy tactic, as they go. Trying to find ways to make complex stories accessible and interesting suddenly becomes high priority. Given the ability to tell the same stories in different ways online, it could be doable. Let’s not forget “old media” is doing pretty well at moving online. The biggest news sources online (in the UK, anyway) are the old media outlets - BBC and the Guardian up in front, with several other newspaper sites rapidly closing the gap. Guido and Iain Dale may claim traffic figures coming close (or maybe not), but if we keep using the web as we do now, then all of today’s “future of news” arguments will look pretty stupid in five years time. But my job prospects would be looking healthier, so I could bear the discomfort with fortitude.
And finally: Just out of interest: Is it too old left, or old media to suggest there are stories out there that have worth beyond their readability? If not, what ideas do people have to preserve that kind of journalism in the new media age? Ideas on a postcard to the usual address…