Online Has its Advantages, But is it the Future?

Matt Mikus

Business may not be booming for internet news publications, as a recent study shows that online journalism has decreased seven percent in growth for the first time, due to a loss in audiences and advertising.  

The Pew Research Center report showed that between June and July of 2007 the percentage of people who said they go online for their news dropped from 34 to 27 percent.

Daily newspapers such as the Lansing State Journal and New York Times are turning to partner Web sites to help bring in more revenue. Bonnie Bucqueroux, a journalism professor at Michigan State University, said that going to an online paper would be cheaper than other mediums.  Bucqueroux mentioned that starting a Web site can cost around $200, compared to nearly $2 million to start a radio station.

Bucqueroux also added that although print advertising creates more revenue than online advertising, it also costs more to print and deliver papers due to rising energy costs.  With crude oil costing around $90 a barrel, according to Oil-price.net, it cost more money now to run a printing press and deliver newspapers to the stand.

The low cost of publishing on the Internet can also lead to specialization of local media as well. 

“When you pick up a newspaper, you have everything from business news to sports news to the sudoku puzzle bundled together in one paper,” Bucqueroux said. “But online, journalists have the potential to really specialize. Mlive.com, a Michigan based news organization, built their reputation on covering local high school sports.”

Another advantage that online publications have over print is the reader feedback and interactivity.  According to Bucqueroux, many local papers have developed a forum on their Web site to collect post-production insight on articles and editorials.

Mary Dailey, the breaking-news editor of the Detroit News said they host many different forums where readers can discuss news topics.

“We might put out a poll question that connects with a story to get feedback,” Dailey said. “Sometimes if the story is developing, we may post a poll question. The reporters can go back in and interview some of the readers who took the poll.”

But even with the advantages that online papers have, online newspapers are still struggling to gain a dominant share of the market. Stephen Lacy, professor of media economics at Michigan State University and co-editor of “The Journal of Media Economics,” believes that one reason online publications are not growing as fast in the market is because printed news is more convenient than online news.

“It’s a very different experience sitting at a desktop trying to read versus reading a newspaper on a bus,” Lacy said. “A paper is more portable.”

Lacy also mentioned that newspapers are more popular than online news because of the cost of technology.  A newspaper can cost around a dollar a day while a computer alone costs around a thousand dollars, not including cost for Internet access. In fact, almost 30 percent of households in the United States do not have Internet access, which keeps them from accessing online news sources.

One problem that both online and print publications are facing is less revenue generated by advertising. With so many different publications competing for the same advertising dollars, the amount of money generated decreases.

“The real issue eventually will become whether or not there’s enough advertising available for news organizations to support them at a level that will provide good journalism,” Lacy said. “If there’s not, then either people will pay or there will be a lower quality of journalism.”

Because of the decrease in advertising dollars, newspapers have to find new ways to generate a profit. Lacy mentioned that some publications might develop a local classified section online, while others may charge for extra content.

Other publications may benefit from their unique community. The Petoskey News-Review charges a small fee for an electronic form of their daily paper to customers who live in the area seasonally, while still offering free content online.

Bucqueroux believes that journalists may develop non-profit organizations to develop quality news online. She also mentioned that local papers might print only their Sunday edition, which generates more profits, and have their daily released online.

“The entire system is changing, has changed and will continue to evolve,” Lacy said, “so it’s tough to say what it will be like in the next 10 years.”