penelope muse abernathy knight chair of journalism and media economics

Penelope Muse AbernathyKnight Chair of Journalism and Media EconomicsSchool of Journalism and Mass CommunicationThe University of North Carolina at Chapel HillAugust 10, 2011

SHOULD THE GOVERNMENT SAVE JOURNALISM?

AEJMC Conference 2011

“The Gales of Creative Destruction”

-Joseph Alois Schumpeter

THIS CHART CALCULATES TOTAL SHAREHOLDER RETURN, TAKING INTO ACCOUNT SHARE PRICE AND DIVIDENDS.

1. Destroyed barriers to entry

2. Diminished pricing leverage

3. Eliminated entire categories of

advertising

THE INTERNET’S KNOCKOUT PUNCH

PATH TO RENEWAL

Destroyed barriers to entry

Shed Legacy costs

Diminished pricing leverage

Reestablish involved community online

Eliminated entire categories of advertising

Build new onlinerevenue

1. Foster and build a sense of geographic community

2. Set agenda for public policy debate, informing citizens and elected officials

3. Encourage regional economic growth and commerce, providing market place

WHY IS IT IMPORTANT THAT JOURNALISM SURVIVES?

HOW FAST DO WE NEED TO CHANGE?

6 % a

yea

r

ECONOMIC PRIORITIES FOR AN INDUSTRY IN TRANSITION

Focus on Potential Creation vs. Destruction• Follow the Money and Your Customers

Practice Triage on the Information Ecosystem• Focus on those most at risk: the state

and regional newspapers

TWO REPORTS

Emphasize the need for:• Transparency of Information and

Engagement of Communities• Accessibility to the digital highway• Experimentation with New Models

The likelihood that the structure of this medium will remain as before is nil.

-Eli Noam

For Materials and Supplemental ReadingsRelevant to This Presentation, Please See:

www.jomc.unc.edu/abernathyaejmc