News: Economic Impact

By Laura Colantonio, Trending Editor

News is accessible not only on traditional mediums like print, television, and internet, but also indirectly through word-of-mouth. News, in general, is something individuals, whether they know it or not, are in contact with on a daily basis. Accessing new information has become something similar to human instinct and because of this, the news industry is a strong one.

Even print, which one might expect to have decreasing popularity with the rise of the internet, is doing relatively well with more than 2.7 billion adults globally reading newspapers in print. Per Pew Research, revenue from newspaper advertisements decreased a whopping 55 percent from 2006 to 2012. This statistic goes to show that print news, while still popular today, will never again seem to be as popular as accessing news on the internet. Word Press Trends completed analysis which found that a minimum of 40 percent of global internet users read newspapers online. To put this percent into perspective, there are well more than 3 billion internet users in the world. News is being accessed by new individuals nearly each second, which allows more to be informed about a litany of subjects.

Advertising has always been the primary revenue source for news networks on television, magazine companies, newspapers, and so on. According to Pew Research, ironically enough revenues coming from viewers has increased significantly over the years to become a more reliable means of profit, reaching 16 percent revenue in 2006 to 24 percent in 2014. Audience revenue include matters like retransmission and subscription fees. Subscription fees have always existed with magazines and accessing some newspapers to one’s front door, but now is especially becoming more popular with the internet. On reputable news sites, it is common that individuals must subscribe to the news source in order to access the entirety of articles on the site, over just half or less. Amongst audience revenue is also audience-driven streaming, which accounts for 24 percent of all news revenue in 2014. Considering such news streaming revenue increased about 50 percent since 2006, for the future it is expected that usage of streaming will increase, therefore also rising profits.

Although the news industry is not going anywhere, sources might expect less profit in the future. Websites like YouTube and news via word-of-mouth is powerful and although some like to confirm information, individuals seem to be more accepting of information, expecting it to be accurate if it seems correct.

At the end of the day, we understand that news is not going anywhere and that it is something, in this day and age, we have grown to become reliant on and cannot live without. Whether accessed through a magazine, newspaper, television, or an article released online, news is everywhere, something unlikely to change.

A version of this article appeared in the Tuesday, February 21st print edition.

Contact Laura at

laura.colantonio@student.shu.edu

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