JMM 632 Final: News Media Flashcards
Are U.S. consumers willing to pay for news?
There is low willingness to pay for news because social media has provided consumers with fast access to free information available online, and the majority of news consumers in the U.S. have a right to free information. The low number of people who are willing to pay for news is because of the recent increase of misinformation and disinformation available on the internet and to fact-check news stories
What is the primary source of news for Gen Z?
social media about 63%
What are the advantages of the advertising revenue model for news organizations?
Advertisers pay the news organization to display their ads to the website’s visitors, and the website earns revenue based on the number of clicks, impressions, or conversions generated by those ads.
What are the disadvantages of the advertising revenue model for news organizations?
It has not been able to generate sufficient revenue for most news organization because the advertising domain today is mostly dominated by tech giants like Google (Alphabet) and Meta. The hold these companies have on online advertising has resulted in inadequate returns for traditional ad-financed news platforms. Only a handful of news outlets with a sufficiently large online reach can earn significant revenue. Also, news is a sensitive information good, strongly depending on trust, and solely relying on advertising revenue could be seen as dubious, even risk compromising the journalistic integrity of the organization.
What are the advantages of the subscription revenue model for news organizations?
Stable and predictable revenue because consumers who are willing to pay for the subscription actually want to use their services.
What are the disadvantages of the subscription revenue model for news organizations?
Must consistently produce high-quality content to retain readers.
What are the advantages of the paywalls revenue model for news organizations?
better user experience because the content is tailored to the interests of the people who pay
builds trusts with readers who are more likely to subscribe if they trust the content and company
Could also be additional revenue source for news companies by restricting access to valuable content that users are interested in
What are the disadvantages of the paywalls revenue model for news organizations?
hinders subscription growth
most people are not willing to pay for a newspaper subscription if they’re not usual readers -> Some people just want to read one article
reduced readership
paywalls can make it harder to attract new readers and increase the number of subscriptions
requires unique, high-quality content to convince readers to subscribe -> content that’s not accessible anywhere else (e.g. Rolling Stone)
What are the advantages of the donations/not-for-profit revenue model for news organizations?
a way for news organizations to raise funds by asking their audience to contribute money.
What are the disadvantages of the donations/not-for-profit revenue model for news organizations?
doesn’t generate significant revenue
Does the paywall model work?
Paywalls can be successful in increasing revenue for some news organizations, but they can have negative effects on audience engagement and website traffic. Companies with a great reputation and unique content tend to do better with the paywall model. Some experts recommend being flexible with paywalls and maybe only putting a lower share of articles behind the paywall if the demand is high.
