News Won’t Learn from Music’s Mistakes

The news industry has been kicking up a bit of a stink that is reminiscent of the music industry in its digital infancy. They’re noticing a decline in advertising revenues and are pointing the finger at the internet for stealing away their advertising contracts. Similarly those news outlets that have an online presence are pointing the finger at Google and similar news aggregator services for making their content available outside of their originating sites meaning advertising never gets seen. On the other side of the argument the aggregators and index services argue that a large proportion of the news site traffic is because of their aggregators and indexing. It all sounds very similar to the music industry rallying against P2P for stealing their profits and streaming services for profiting off their content. The consumption patterns have changed, companies outside the circle that traditionally dealt with a media start filling the gaps, and then the old companies call for courts to protect them for being too slow.
Interestingly what is also comparable is the statistical debate; with music it was always the stats war between ‘P2P causes drops in profits’ and ‘P2P has no impact/improves profits’. With news, as the major companies claim that the internet has stolen all their revenue, stats start cropping up that in fact it may be many factors. You could argue that music sales declined due to multiple factors such as reduction in releases and the move from sales as albums to sales as tracks. With advertising revenue Robert Picard argues that it is not necessarily the internet, but the rise in other forms of physical advertising.
Over the last few weeks there have been calls from the news industries to implement essentially a DRM program across the net (ACAP) to control aggregators. News Corp have also implied that paywalls will soon be going up around their major properties. With the music industry’s recent admittance that their reaction to Napster could have been better it seems that just as one industry starts to come around, the other begins the whole process over again.

The news industry has been kicking up a bit of a stink that is reminiscent of the music industry in its digital infancy. They’re noticing a decline in advertising revenues and are pointing the finger at the internet for stealing away their advertising contracts. Similarly those news outlets that have an online presence are pointing the finger at Google and similar news aggregator services for making their content available outside of their originating sites meaning advertising never gets seen. On the other side of the argument the aggregators and index services argue that a large proportion of the news site traffic is because of their aggregators and indexing. It all sounds very similar to the music industry rallying against P2P for stealing their profits and streaming services for profiting off their content. The consumption patterns have changed, companies outside the circle that traditionally dealt with a media start filling the gaps, and then the old companies call for courts to protect them for being too slow.

Interestingly what is also comparable is the statistical debate; with music it was always the stats war between ‘P2P causes drops in profits’ and ‘P2P has no impact/improves profits’. With news, whilst the major companies claim that the internet has stolen all their revenue, stats start cropping up that in fact it may be many factors. With music you could argue that sales declined due to multiple factors such as reduction in releases and the move from sales as albums to sales as tracks. With advertising revenue Robert Picard argues that it is not necessarily the internet, but the rise in other forms of physical advertising.

Over the last few weeks there have been calls from the news industries to implement essentially a DRM program across the net (ACAP) to control aggregators. News Corp have also implied that paywalls will soon be going up around their major properties. With the music industry’s recent admittance that their reaction to Napster could have been better it seems that just as one industry starts to come around, the other begins the whole process over again.

Reference

AP to Aggregators: We Will Sue You | Wired

European publishers want a law to control online news access – Ars Technica

News Corp will charge for newspaper websites, says Rupert Murdoch | Media | guardian.co.uk

British music boss: we should have embraced Napster – Ars Technica

The Media Business: THE POOR CONNECTION BETWEEN INTERNET ADVERTISING AND NEWSPAPER WOES

One thought on “News Won’t Learn from Music’s Mistakes

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