The Internet Is an Opportunity, not just a Threat
The Internet. The Internet. The Internet. At Wednesday’s FCC oversight hearing on Capitol Hill, those were the two magic words cited by anyone advocating more media consolidation.
The Internet is also FCC Chairman Kevin Martin’s favorite excuse for why we need to let a handful of Big Media companies swallow up even more local outlets. In making his case against the ban on newspaper-broadcast cross-ownership in the New York Times, he wrote “the undeniable reality that the media marketplace has changed considerably over the last three decades.”
But the emergence of the Internet needs to be put in the proper context. The Internet hasn’t replaced TV or newspapers as the primary sources of local news for most Americans — and it won’t do so anytime soon.
Fact No. 7: The Internet is an opportunity, not a death sentence
The Internet presents more of an opportunity than a threat to the newspaper industry. Local newspapers are by far the dominant source for local news on the Internet. As these companies navigate the changing terrain and modify their business models, they will continue to thrive financially.
Consider:
- Recent data from the Newspaper Association of America shows that nearly 60 million Americans visited local newspaper Web sites during the second quarter of 2007, visiting an average of eight times per month, a jump of nearly 10 percent from the year before.
- While newspapers may have lost some of their traditional circulation since 2000, they’ve gained that back over five-fold in online readership.
- Online ad spending continues to grow rapidly, increasing to $5.5 billion for the first half of 2007, a nearly 20 percent increase above the same period in 2006.
More competition, not less
There will always be a strong demand for local news reporting, regardless of how it is delivered. Data suggests that some of the more financially “troubled” newspaper chains (such as Tribune) haven’t navigated the online transition as well as other chains that are thriving online and off.
Mergers and consolidation — and more corporate welfare — certainly aren’t the answer to solving the mismanagement of traditional media. There is very little evidence that this strategy will succeed financially in the long run, and it is not worth the democratic costs in terms of the loss of diverse and antagonistic news sources.
These enterprises need to adapt and take advantage of the opportunities in cyberspace. Print and broadcast outlets are just beginning to compete head-to-head in the online sphere. To allow them to consolidate now will only stifle viewpoint diversity and competition in the future.
Over the next two weeks at StopBigMedia.com, we’ll be counting down the “10 Facts Kevin Martin Doesn’t Want You to Know” about his new media ownership rules, as exposed in our new report — Devil in the Details.
Next: Martin’s plan would harm minority owners.
