By William J. Furney
Today is World News Day, and the media industry finds itself in a precarious position. From falling advertising revenues to the rise of artificial intelligence, and the erosion of public trust, news outlets are struggling to survive. This year’s event, backed by hundreds of organisations, seeks to shine a spotlight on the mounting challenges.
A Broken Business Model
The core of the crisis lies in the financial collapse of traditional news models. UNESCO is clear in its assessment: the business model of the news media is broken. The golden age of advertising revenues that kept newspapers and broadcast news afloat has faded, with digital giants like Google, Meta and Amazon now controlling the majority of global ad spend. These companies soak up nearly half of the world’s advertising revenue, leaving only a quarter for traditional media outlets. The result? A sharp decline in the resources available to fund quality journalism.
The situation has become so dire that even established news outlets are scaling back. In a striking example, Scripps News announced this week that it will shut down its 24/7 national over-the-air broadcast channel, leading to 200 layoffs. The CEO, Adam Symson, said the money was just not there, forcing the company to make difficult cuts. “The prospects for the necessary revenue growth haven’t materialised,” he wrote in a note to employees, highlighting a reality that resonates across the industry.
Trust in Freefall
Trust in the media has also hit new lows. According to the Reuters Institute, only four in 10 people say they trust news most of the time. This lack of faith has been compounded by rising scepticism and the overwhelming volume of disinformation, especially on social media platforms. Younger audiences, in particular, are turning away from traditional news sources in favour of influencers and content creators. For many, platforms like TikTok and YouTube are now their primary source of information.
This shift in audience behaviour is further eroding the revenue streams of traditional news outlets. With platforms such as Facebook deprioritising news and political content, traffic to news sites from social media has dropped significantly. Fewer clicks mean fewer advertising dollars, which, in turn, leads to cost-cutting measures such as layoffs and closures.
The AI Dilemma
Artificial intelligence, once viewed as a tool to enhance journalism, is now adding to the industry’s woes. AI’s ability to generate convincing news articles, videos and even fake images has fuelled the spread of disinformation. Political websites, masquerading as legitimate news outlets, are increasingly powered by AI. These so-called “pink slime” sites are designed to manipulate political opinions, particularly in the lead-up to elections. They create content that looks like local news but serves a hidden political agenda.
AI is also transforming news production itself. For instance, during the Paris Olympics, US streaming platform Peacock used AI-generated match reports read by a simulated voice of commentator Al Michaels. While AI may offer new efficiencies, it raises concerns that journalists could be replaced by algorithms, further undermining the quality of news reporting.
Despite these fears, some companies are embracing AI in a bid to stay competitive. German media giant Axel Springer, which owns Politico and Die Welt, has invested heavily in AI to handle menial production tasks, allowing journalists to focus on original reporting.
Rising Costs, Shrinking Newsrooms
While the global media landscape continues to evolve, the financial pressures are mounting. The costs of running a news organisation are rising, yet fewer people are willing to pay for news. In 2023, only 17 percent of people surveyed in 20 wealthy nations said they had paid for online news. This reluctance to subscribe has compounded the industry’s revenue problems.
As a result, newsrooms around the world are facing deep cuts. Symson of Scripps News noted that national broadcast stations, unlike their local counterparts, do not benefit from the political advertising that comes with election cycles. He explained that many brands and agencies have grown wary of advertising around national news, deeming it too risky in the current politically polarised climate. The television advertising market, in particular, has been in steady decline for years.
Scripps News’ decision to wind down its 24-hour broadcast service is a sobering reflection of these broader trends. The network, which had won multiple awards including two national news Emmys, will continue to produce content for digital platforms and local stations. But the layoffs signal an industry-wide shift towards a leaner, more focused approach to news production.
The Growing Threat of Repression
In addition to financial woes, the press faces increasing repression worldwide. Journalists are routinely jailed, attacked or killed for their work. China, Belarus and Myanmar are among the most notorious offenders, with hundreds of reporters languishing behind bars.
The war in Gaza, triggered by Hamas’s attack on Israel, has also taken a heavy toll on press freedom. More than 130 journalists have been killed since the conflict erupted, with many losing their lives while reporting on the ground.
Even in democracies, investigative journalism is under threat. New laws on national security and other regulations are making it harder for reporters to hold governments and corporations accountable. The quiet repression of the press is one of the most alarming challenges facing the media today, as it undermines the very foundations of democracy.
A Path Forward?
Despite these challenges, some in the industry remain optimistic. Reporters Without Borders has launched initiatives such as the Journalism Trust Initiative, which seeks to restore confidence in news by promoting ethical journalism. At the same time, media companies are exploring new revenue models, from digital subscriptions to partnerships with tech firms.
But the path forward is far from clear. As the media grapples with AI, disinformation, and declining trust, it’sclear that the traditional business model that once sustained journalism is no longer fit for purpose. World News Day serves as a reminder of the vital role that journalism plays in society, but also of the existential challenges it faces.
* Image: File