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The Impact of the Internet on Mass Media (the press)

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5 most often used Lithuanian Web sites, SIC Gallup Media, Spring 2002 (%)

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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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The Internet means change for the media (the press) in …

According to Colin Sparks, University of Westminster (Sparks, 2002):

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1. A common delivery technology (… because of media convergence)

2. Reduced distribution costs

3. Altered patterns of consumption

4. Erosion of advantages of place

5. Removal of advantages of time

6. Competition for revenue streams

7. Separation of editorial and advertising

8. Direct relations between advertisers and consumers

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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?)

1: A common delivery 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 spaceBut the audience buys the PC and pays the telecom’s 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 !!! (that’s why television looks different on the Internet)

Available at any time of the day or night (if (if archived)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)

Broadcasters 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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Seasonal differences in TV viewing, Spring 2002

Source: SIC Gallup Media.

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TV viewing by time zones, Spring 2002

Source: SIC Gallup Media.

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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)

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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:

Subscription (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)

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.aftonbladet.se, 2mln.)

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http://www.solutionconscious.com/vmu/excercise3.htm

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Most newspapers are “bundles” of different kinds of content (in Lithuania: drifting towards the ‘middle’ – a little bit of everything)

Newspapers have a definite periodicity and circulation area

Newspapers are overwhelmingly commercial enterprises

They get the majority of their revenues from advertising(display advertising, classified advertising)(display advertising, classified advertising)

The example of the newspaper

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The newspaper

News Features

Weather

SportLeisure

ClassifiedAdvertisements

DisplayAdvertisements

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From offline to online

14.00

Gather news

16.00

Edit news

22.00

Print news

07.00

Sell news

24.00

Distribute news

08.00

Read news

00.00 -24.00

Gather news

00.00 -24.00

Edit news

00.00 -24.00

Upload news

00.00 -24.00

Download news

‹--------------------------Limited by distance-----------------------›

‹------No geographical limits-------›

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Offline news source

Offline advertising

Offline readership

The Virtuous Offline Circle

Editorial Department

Advertising Department

Offline Newspaper

Purchase

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The Vicious Online Circle

Online newspaper

Online alternative

Online news source

Online advertiser

Online readership

Logon

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The online newspaper bundle?

News

Features

Weather SportLeisure

Services

ClassifiedAdvertisements Transactions

Registration

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Is a complement rather than a substitute for Is a complement rather than a substitute for offline mediaoffline media

Consequently increases rather than decreases costsConsequently increases rather than decreases costs

Has similar but not identical contentsHas similar but not identical contentsConsequently needs additional staffConsequently needs additional staff

Major business issuesMajor business issuesCannot (yet?) attract subscription revenuesCannot (yet?) attract subscription revenuesIs a vehicle for similar forms of advertising to the offline Is a vehicle for similar forms of advertising to the offline

mediamediaFaces competition particularly for classified advertisingFaces competition particularly for classified advertising

The Online Newspaper

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Consequences for costs

Impossible to abandon offline presence for the foreseeable futureTherefore there will be additional costs

A successful online presence needs specialised material and designTherefore these costs will be substantial

A `sticky’ site needs a great variety of materialTherefore there will be a premium on those sites that aggregate

content from different sources

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Attracting and keeping visitorsA strong brand offline supports a strong brand online A strong brand offline supports a strong brand online

(BBC, CNN, WSJ, NYT etc.)(BBC, CNN, WSJ, NYT etc.)Not true in all casesNot true in all cases

There are some examples of pure online brandsThere are some examples of pure online brands

A big and dynamic site is more attractiveA big and dynamic site is more attractiveFrequent updates mean frequent repeat visitsFrequent updates mean frequent repeat visits

Rich content means different people visitRich content means different people visit

Rich content means the same people visit oftenRich content means the same people visit often

The Internet is on the side of the big battalionsThe Internet is on the side of the big battalions

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Making money from visitorsBasic news content is very hard to sellBasic news content is very hard to sell

Many competing free outletsMany competing free outletsLow intrinsic value of news (and falling?)Low intrinsic value of news (and falling?)

Premium services can be soldPremium services can be soldNot necessarily the ones that have high status (e.g. cartoons, Not necessarily the ones that have high status (e.g. cartoons,

crosswords)crosswords)Specialised, high value-added material can be soldSpecialised, high value-added material can be sold

Visitors can be soldVisitors can be soldThose who visit frequently, do a lot and spend time on a site Those who visit frequently, do a lot and spend time on a site

are valuable sources of customer dataare valuable sources of customer data

Advertising can be sold (but not for much)Advertising can be sold (but not for much)Uncertain effectivityUncertain effectivityMany competitorsMany competitors

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Social implications

Critics of the traditional media have often said Critics of the traditional media have often said they are limited because:they are limited because:

They are controlled either by the state or a few They are controlled either by the state or a few large corporationslarge corporations

The are dominated by professional The are dominated by professional communicatorscommunicators

They are primarily one-way communicationThey are primarily one-way communication

Only a limited range of views are ever presentOnly a limited range of views are ever present

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Proponents of the democratising function of the Proponents of the democratising function of the internet often say:internet often say:

It is impossible for either state or large corporations to It is impossible for either state or large corporations to control itcontrol it

It gives everyone an equal voiceIt gives everyone an equal voice

It is necessarily dialogical communicationIt is necessarily dialogical communication

It opens the way to the representation of all viewsIt opens the way to the representation of all views

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The likely outcomes The technological potential for new entrants and The technological potential for new entrants and

increased diversity is unlikely to be realised in increased diversity is unlikely to be realised in commercial practicecommercial practice Strong offline brands produce strong online brandsStrong offline brands produce strong online brands Rich offline content translates into rich online contentRich offline content translates into rich online content High offline production values translate into high High offline production values translate into high

online production valuesonline production values Powerful offline marketing complements powerful Powerful offline marketing complements powerful

online marketingonline marketing (Almost) anyone can have a web presence, just as (Almost) anyone can have a web presence, just as

anyone can spout at Speakers’ Corner, but effective anyone can spout at Speakers’ Corner, but effective control of social communication will remains in few control of social communication will remains in few handshands

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Online media are widely presentOnline media are widely present

TheTheyy operate according to operate according to aa different logics than offline media different logics than offline media

Nevertheless, the offline/online link is extremely importantNevertheless, the offline/online link is extremely important (helps to increase traffic in both versions)(helps to increase traffic in both versions)

There are major questions about the long-term commercial There are major questions about the long-term commercial viability of online mediaviability of online media

Online media are unlikely to transcend the limitations of Online media are unlikely to transcend the limitations of offline media from the point of view of public lifeoffline media from the point of view of public life

Therefore …

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Kam reikia interneto Lietuvoje?

ALF tyrimas, 2001 http://politika.osf.lt

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Pusė mokančiųjų naudojasi juo ir darbo, ir asmeniniais reikalais; Kas trečias – tik asmeniniais reikalais; Kiek mažiau nei kas penktas – tik darbo reikalais.

Asmeniniais reikalais:

Spaudai, publikacijoms, elektroninėms knygoms susirasti ir skaityti – 50,4%;Elektroniniam paštui – 49,8% ir darbo paieškai – 42,5%.

Paieškai duomenų bazėse – 29,5%, nuotoliniam mokymuisi 29,2% ir medicininėms konsultacijoms – 29,2%.

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20,8% naudoja ir norėtų naudoti internetą prekėms pirkti ir parduoti; 17,7% – kompiuterių programoms ieškoti ir parsisiųsti;

16,9% – atostogoms planuoti; 15,7% – ekonominio pobūdžio informacijai ieškoti (kainoms, biržų indeksams ir pan.);

15,5% – komunalinėms ir administracinėms paslaugoms; 15,1% – informacijai apie vartotojų teises ir jų gynimą gauti; 14,2% – banko sąskaitoms tvarkyti.

Ieškotų informacijos apie Europos muziejus ir kultūrinį palikimą – 10%, apie politiką – 9,5%, ir tam, kad galėtų dalyvauti politiniuose debatuose – 3,7%.

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Koks šiuo metu yra aktyviausias IT vartotojas?

Internetu naudojasi bent du kartus per savaitę -- 8,5% (iš viso apie 300.000 piliečių).

Amžiaus ribos – 15- 49 m. ir tai sudaro 87,6% visų, besinaudojančių internetu. Amžiaus vidurkis – 32 metai.

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Informacinės visuomenės piliečio išsilavinimas aukštasis (53,4%), rečiau vidurinis ar specialusis vidurinis (34,6%). Didelė tikimybė, kad jis gyvena Vilniuje ar Kaune (šiuose dviejuose miestuose gyvena daugiau kaip pusė visų interneto naršytojų, 56,9%).

Šis pilietis dažniau yra vyras (54,4%) nei moteris (45,6%). Jis gauna didesnes nei 500 Lt/mėn. pajamas (41,9%).

Interneto vartotojai yra turtingesni nei vidutinis lietuvis. Internetu jie naudojasi dažniau darbo ar mokymosi vietoje (82,4%) nei namuose.

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Kada iš tikrųjų gyvensime įtinklintame pasaulyje?

Aktyviausia informacinės visuomenės grupė – 15-19 metų. 86,5% šios amžiaus grupė respondentų moka naudotis kompiuteriu, 62,7% moka naudotis internetu.

Dauguma – 97% – nemokančiųjų nori išmokti dirbti kompiuteriu.