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