Richard Koman, newsfactor
Despite years of hype about the impact of bloggers and the so-called Long Tail on the news business, traditional media sources are increasingly popular online even as their offline businesses continue to go south.
The idea of "The Long Tail" was that a great multiplicity of blogs and citizen journalism sites could match or exceed the value of traditional news gathering. But the reality is "more complex," says the Project for Excellence in Journalism's new report, State of the News Media 2008.
"Looking closely, a clear case for democratization is harder to make," the report said. "Even with so many new sources, more people now consume what old-media newsrooms produce, particularly from print, than before."
Advertising Woes
Indeed, traditional media, derided by some as "mainstream media," represents more of an oligarchy online than in print. According to researcher Matthew Hindman, the top 10 news sites represent 29 percent of all Web traffic but only 19 percent of newspaper circulation.
In the newspaper sector, circulation fell 2.5 percent and overall advertising revenue fell 7 percent in 2007. Even online advertising grew just 20 percent, compared to 30 percent growth in previous years.
"For 2008, the hope is that a collaboration of more than 400 daily papers with Yahoo will generate a kick of as much as 10 percent to 20 percent in online advertising because it will be much easier to buy and place ads under the new arrangement," the report said.
Hope in Innovation
Indeed, it is now within the realm of discussion for news companies to think about jettisoning print entirely, the report said.
Media companies have tried to transition online by cutting deals and buying up online properties. But, the report said, it's not clear that those deals have been valuable.
"The most promising element heading into 2008 may be innovation. The news industry now appears to be taking to new technology in earnest. Sites are evolving quickly and, in a new development, the mainstream media are now among the more experimental players," the report said.
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