The Impact of the Internet on Mass Media the press

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The Impact of the Internet on Mass Media (the
press) Atvejo studija interneto itaka
tradicines spaudos kaitai
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Trends observed Media-morphosis (Roger
Fidler) Media convergence (Nicholas Negroponte,
1980) Broadcasting Computers and
telecommunications The Press
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According to Colin Sparks, University of
Westminster (Sparks, 2002)
The Internet means change for the media (the
press) in
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• A common delivery technology ( because of
  technological convergence)
• Reduced distribution costs
• Altered patterns of consumption
• Erosion of advantages of place
• Removal of advantages of time
• Competition for revenue streams
• Separation of editorial and advertising
• Direct relations between advertisers and consumers

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1 A common delivery technology

• Offline media have clear and distinct delivery
  technologies
• In material (e.g. broadcast or printed two most
  common formats for the online media)
• In time (e.g. daily newspaper v. monthly
  magazine)
• In function (e.g. radio while driving v. TV while
  relaxing)
• In place (e.g. newspaper at work, television at
  homes morning-evening hours)
• Online technology all comes through one delivery
  mechanism, at any time, and potentially to any
  place (infra-red access technology?)

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2 Reduced distribution costs

• The symbolic material of the offline media is
  expensive to distribute
• Newspapers and magazines must be printed and
  shipped
• TV and radio must pay for spectrum and build and
  run transmitter networks
• Online media have no need for these mechanisms
• The company needs to rent server space
• But the audience buys the PC and pays the
  telecoms costs (which are becoming less and less
  expensive).

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3 Shifts in news consumption patterns
Existing patterns of consumption are embedded in
patterns of life TV is a primary leisure
activity, often in a family setting (the most
typical mass medium) Radio is more a background
to other activities The periodicity of
publications fits rhythms of life
(morning-evening newspapers)
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• Online media have as yet no well-established
  consumption patterns
• Usually consumed alone !!! (thats why television
  looks different on the Internet)
• Available at any time of the day or night (if
  archived)

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4 Erosion of the importance of place
Offline media are tied to particular
places Newspapers bounded by the distribution
area (bringing the community together) Broadcast
ers depend on the configuration of the
transmitter mechanism (restrictions in
transmission)
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• Online media operate on a global scale
• Consumption is not determined by distance or by
  geopolitics (www.lrytas.lt as a virtual meeting
  place or a new channel for participation)
• Media are no longer sheltered by location (new
  models of tele-working, distance working,
  e-learning)

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5 Erosion of temporal advantages
Offline media are produced and distributed at
definite times Morning and evening newspapers
have different agendas (In Lithuania mostly
morning newspapers, no Sunday press) The time
of major TV and radio programmes is carefully
calculated (who will watch these? Prime-time
television programs soap-operas, reality TV
shows)
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Online media are available all the time News
can be updated regularly (www.vz.lt,
www.delfi.lt, www.omni.lt) All material can
be accessed at any time (www.delfi.lt), although
there may be restrictions www.lrytas.lt (5 days,
since 1100a.m.)
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6 Competition for revenue streams

• Offline media traditionally have three main
  sources of revenue
• Subsidy (e.g. licence fee for broadcasters ???
  (an ongoing discussion for/against
  subscription-fee) exempt from taxation in
  press)
• Subscription (particularly for the printed
  material)
• Advertising (the most dominant form) display
  advertising and classifieds

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Online media challenge some of these Subscriptio
n (some claim that it is not yet feasible as
there is no relevant content on the Internet
while others see this as the only valuable model
for the quality-Web www.cnn.com) Subsidy
(or sponsorship) www.omni.lt (Omni Laikas), or
all conventional newspapers Advertising
(classifieds are well suited to the online world,
banners, pop-up windows, background advertizing,
intermercials) www.lrytas.lt (however, this may
end in cannibalization)
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7 The disaggregating of editorial and advertising

• Most offline media package a range of both
  advertising and editorial content together
• Advertising between television programmes,
  display advertising next to editorial material in
  printed media, etc.
• The two depend upon each other (the media
  messages are sold both to audiences and
  advertizers).

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• The searchable nature of the online world allows
  the two to be separated
• Audiences can bypass advertising material???
  www.delfi.lt ?
• (less and less ?, because online media employs
  new more aggressive advertising strategies
  www.vg.no)
• Intermercials interactive commercials (5s of
  commercial broadcast)
• Audiences can seek those kinds of advertising
  they are interested in at a particular moment

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8 Direct relations between providers and
consumers
Offline, the media are necessary The only way
that the audience can access editorial content is
through the media package news, classifieds,
display ads, editorial content. The only way the
advertiser can access consumers is through the
media package thus, newspapers operate in two
markets for audiences and advertizers
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• With Online, there are other routes
• The audience can go directly to news sources (as
  in verticals)
• Advertisers can go directly to consumers (employ
  different marketing strategies ask questions,
  collect information from what countries and at
  what times per day users access the Web)

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Summary of the effect of online media
Taken together, these developments pose major
challenges to the offline media (provoke the
media-morphosis) They challenge their
self-identities They challenge their market
niches They challenge their revenues
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• but the online media face major challenges,
  too
• They lack independent credibility
• They have no record of delivery in commercial
  terms
• as a consequence, they find it hard to make
  money (www.delfi.lt, www.aftonbladet.se, 2mln.)