1. 1 The Impact of the Internet on Mass Media (the press) Atvejo studija: interneto įtaka tradicinės spaudos kaitai

2. 2 Trends observed … Media-morphosis (Roger Fidler) Media convergence ( Nicholas Negroponte, 1980) Broadcasting Computers and telecommunications The Press

3. 3 The Internet means change for the media (the press) in … According to Colin Sparks, University of Westminster (Sparks, 2002):

4. 4 1. 1. A common delivery technology (… because of technological convergence) 2. 2. Reduced distribution costs 3. 3. Altered patterns of consumption 4. 4. Erosion of advantages of place 5. 5. Removal of advantages of time 6. 6. Competition for revenue streams 7. 7. Separation of editorial and advertising 8. 8. Direct relations between advertisers and consumers

5. 5 Offline media have clear and distinct delivery technologies: In material (e.g. broadcast or printed: two most common formats for the online media) In time (e.g. daily newspaper v. monthly magazine) In function (e.g. radio while driving v. TV while relaxing) In place (e.g. newspaper at work, television at homes: morning- evening hours) Online technology all comes through one delivery mechanism, at any time, and potentially to any place (infra-red access technology?) 1: A common delivery technology

6. 6 2: Reduced distribution costs The symbolic material of the offline media is expensive to distribute: Newspapers and magazines must be printed and shipped TV and radio must pay for spectrum and build and run transmitter networks Online media have no need for these mechanisms: The company needs to rent server space But the audience buys the PC and pays the telecom’s costs (which are becoming less and less expensive).

7. 7 3: Shifts in news consumption patterns Existing patterns of consumption are embedded in patterns of life: TV is a primary leisure activity, often in a family setting (the most typical mass medium) Radio is more a background to other activities The periodicity of publications fits rhythms of life (morning-evening newspapers)

8. 8 Online media have as yet no well-established consumption patterns: Usually consumed alone !!! (that’s why television looks different on the Internet) (if archived) Available at any time of the day or night (if archived)

9. 9 4: Erosion of the importance of place Offline media are tied to particular places: Newspapers bounded by the distribution area (bringing the community together) Broadcasters depend on the configuration of the transmitter mechanism (restrictions in transmission)

10. 10 Online media operate on a global scale: Consumption is not determined by distance or by geopolitics (www.lrytas.lt as a ‘virtual meeting place’ or a new channel for participation)www.lrytas.lt Media are no longer sheltered by location (new models of tele-working, distance working, e-learning)

11. 11 5: Erosion of temporal advantages Offline media are produced and distributed at definite times: Morning and evening newspapers have different agendas (In Lithuania: mostly morning newspapers, no Sunday press) The time of major TV and radio programmes is carefully calculated (who will watch these? Prime-time television programs: soap-operas, reality TV shows)

12. 12 Online media are available all the time: News can be updated regularly (www.vz.lt, www.delfi.lt, www.omni.lt)www.vz.ltwww.delfi.lt www.omni.lt All material can be accessed at any time (www.delfi.lt), although there may be restrictions: www.lrytas.lt (5 days, since 11:00a.m.)www.delfi.ltwww.lrytas.lt

13. 13 6: Competition for revenue streams Offline media traditionally have three main sources of revenue: Subsidy (e.g. licence fee for broadcasters ??? (an ongoing discussion for/against “subscription-fee”); exempt from taxation in press) Subscription (particularly for the printed material) Advertising (the most dominant form): display advertising and classifieds

14. 14 Online media challenge some of these: Subscription (some claim that it is not yet feasible as there is no relevant content on the Internet; while others see this as the only valuable model for the ‘quality-Web’: www.cnn.com)www.cnn.com Subsidy (or sponsorship): www.omni.lt (‘Omni Laikas’), or all conventional newspaperswww.omni.lt Advertising (classifieds are well suited to the online world, banners, pop-up windows, background advertizing, intermercials): www.lrytas.lt (however, this may end in “cannibalization”) www.lrytas.lt

15. 15 7: The disaggregating of editorial and advertising Most offline media package a range of both advertising and editorial content together: Advertising between television programmes, display advertising next to editorial material in printed media, etc. The two depend upon each other (the media messages are sold both to audiences and advertizers).

16. 16 The searchable nature of the online world allows the two to be separated: Audiences can bypass advertising material??? www.delfi.lt ?www.delfi.lt (less and less , because online media employs new more ‘aggressive advertising strategies’: www.vg.no)www.vg.no Intermercials – interactive commercials (5s of commercial broadcast) Audiences can seek those kinds of advertising they are interested in at a particular moment

17. 17 8: Direct relations between providers and consumers Offline, the media are necessary: The only way that the audience can access editorial content is through the media package: news, classifieds, display ads, editorial content. The only way the advertiser can access consumers is through the media package … thus, newspapers operate in two markets – for audiences and advertizers

18. 18 With Online, there are other routes: The audience can go directly to news sources (as in verticals) Advertisers can go directly to consumers (employ different marketing strategies: ask questions, collect information from what countries and at what times per day users access the Web)

19. 19 Summary of the effect of online media Taken together, these developments pose major challenges to the offline media (provoke the media- morphosis): They challenge their self-identities They challenge their market niches They challenge their revenues

20. 20 … but the online media face major challenges, too: They lack independent credibility They have no record of delivery in commercial terms … … as a consequence, they find it hard to make money (www.delfi.lt, www.aftonbladet.se, 2mln.)www.delfi.ltwww.aftonbladet.se