Like many industries, the Internet has upended the world of news and culture. While it has undermined some traditional business models, media consultancy Oliver & Ohlbaum published two new studies that we commissioned this week showing that the net is powering the rise of exciting new voices and small players. YouTube stars are building fame online before securing a record deal or a film contract. Newshounds now discover, share, and comment on stories on platforms like Twitter and Facebook.
In the first study, Different media, different roles, different expectations: the nature of news consumption in the digital age , Oliver & Ohlbaum set out to answer the question of how the Internet affects access to and consumption of news. Are readers consuming more news than they did in the age of ink? From more or fewer sources? After surveying data from the UK and Germany, the researchers found:
A new generation of news junkies is emerging: On average, all UK adults consulted an average of 2.7 news sources per week, while online readers visit almost twice as many - 5.2 news websites.
Readers are expanding their horizons, consulting a wide array of sources: In both the UK and Germany, readers now spend only 5-20% of their news-time on their favorite newspaper. Instead, they consume news from, on average, eight other sources.
Readers are encountering a broad range of views: Even where consuming user generated ‘less trustworthy’ sources, 47% say this is to encounter views different from their own.
Established media retain significant influence: Television remains considered the most authoritative media source and big brands continue to earn greater trust, audience attention, and influence on consumer opinion than other sources.
A second study, The Internet and the creative industries: measuring growth within a changing sector ecology , examines current approaches to measuring the ‘creative sector’; and the impact of the internet on the role of independent artists and small businesses in the business of culture. Drawing on case studies from the UK, France and Sweden, the research finds that the Internet has increased the numbers of creative sector SMEs and 'sole traders.'
In the music industry of twenty years ago, for example, a single record label hired lawyers, accountants, cafeteria workers. Today, many of these roles are distributed among small businesses and independent players. A band might be discovered on YouTube, hire professionals on an hourly basis to handle contracts, self-publish and self-market.
Until now, most research has failed to take into account this structural shift toward ‘unorganized content producers,’ suggesting that they fail to capture a great deal of activity. See below.
What is needed, the researchers conclude, is a new way of measuring the culture industry. Specifically, this new measurement must identify and measure the contribution of SMEs and sole traders. Only when we have reliable statistics can we truly understand the Internet’s impact on the business of news and culture.
Posted by Simon Morrison, Public Policy and Government Relations Manager
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