Downfall of the Newspaper Industry
For over a hundred years the newspaper industry ruled the world. It was the number one undisputed manner in which the world was informed about what was happening. It was the reporter of international conflict as well as local and national sporting event. It didn’t seem like it was a legitimate news story until it appeared in print. Those days are now gone. Due to the rise of technology, the old manners of producing news and presenting it to the masses was totally outdated. It wasn’t a lack of vision that caused the downfall of the newspaper industry it was simply time for extinction. Although some papers hang on, it is becoming less and less economically feasible to produce a newspaper in the old fashioned manner.
Changes in Technology
There is not a way to create a business for a website like there was for newspapers and that fact has never been addressed. In a newspaper, they made money through distribution, subscriptions and advertising. Advertisers paid a certain amount of money to get their message out to the masses, and generally the size of the ad determined the price. As news has switched to the internet, there is no model that works the same. You can sell the space on the sidebars, but that is somewhat limited. All of the sources of revenue the paper depended on shrunk and could not be replaced.
Combine these changes with the stubbornness and shortsightedness of most in the newspaper industry. As the model was changing, many of the owners and editors were very slow on the uptake when it came to understanding the changes that were coming. The rise of social media, and the effect of the internet on the distribution of news devastated the newspaper industry and their only response in most cases was to decrease the workforce that they employed. One of the major costs that newspapers faced was getting the paper printed each day. Although there were a lot of people who depended on this for their livelihood it was clearly changing and again the newspapers were slow to adopt change.
As the news was moved into a web based product it became as easy for one person to run a website as it was for a large company. This made many smaller news sites jump up and start to fill the void. As these sites built a following large newspapers were feeling the hit. People were no longer buying their papers and advertisers were not going to spend money on ads nobody would see.