1. News is now FREE Who will pay for quality journalism? Article by: Subash Gobine Presentation by: Ettioné Ferreira 21 March 2012; Sol Plaaitjies Institute for Media Leadership

2. History Explosion in news ▫Traditional newspaper ▫Radio ▫Television ▫ICT (Information and Communication Technologies)

3. ICT’s Includes satellites, internet, tablets, mobile, television, radio, etc. Fast growing – largely driven by mobile technologies

4. Rise of Mobile internet ITU (International Telecommunication Union) Estimated that at the end of Dec. 2009: ▫4.6 billion subscribed to mobile tech ▫600 million on mobile broadband 2011: ▫6 billion subscribed to mobile tech ▫1.2 billion on mobile broadband The World in 2009: ICT Facts and Figures – ITU The World in 2011: ICT Facts and Figures

5. What does it matter? Multiplicity of sources Global consumption Massive migration of news outlets on the web Many news sources on internet AND IT’S ALL FREE!!! (excluding data costs)

6. Multiplicity of sources…

7. Traditional VS. New Media costs Traditional media: production costs, printing costs, distribution costs, etc. New Media: Web Development, website host, internet access. = New media works out way cheaper! If it’s cheaper to produce, why is there still traditional media?

8. Free media Vs. Credibility Blogs example of free media User generated content/citizen journalism the future No hosting costs Freedom of expression Importance of credibility How do we regulate this? How do we as professionals maintain credibility on free media sites?

9. Facebook Over 500 million active users Access is free Numerous threats to ask subscription fees Loyal users will stay… but how many will run? Target market – younger audience – will they pay? Will only work if the payers outweigh the lost users *Mark Zuckerberg – CEO of Facebook

10. LOYALTY Professionals trying to build customer loyalty Loyalty – increase advertisers trust in product With enough traffic, media can start charging after being free.

11. How to make users pay for access? Rupert Murdoch – charge for online access Some content free, some paid E-paper charge Metered formula (eg. Financial Times) NYTimes.com from Jan. 2011 = paid subscription

12. CRITIQUES: Internet makes user generated content easier: ▫Are professional journalists still needed? People still want credibility & trust but how far would they go to get it? Will people pay for quality? Living on advertising income Free once, why pay again? Will it only work for BIG companies (eg. the Mudochracy)

13. REFERENCES: Mdlongwa, F. & Letlhaku, M. 2010. “News is now FREE: who will pay for quality journalism?”. Harnessing Africa’s Digital Future. JOHANNESBURG: Konrad Adenauer Stiftung. Pages 18-23. ITU online: http://www.itu.int/ITU-D/ict/facts/2011/index.html “The World in 2009: ICT Facts and Figures”. http://www.itu.int/ITU- D/ict/facts/2011/material/ICTFactsFigures2009.pdf. “The World in 2011: ICT Facts and Figures”. http://www.itu.int/ITU- D/ict/facts/2011/material/ICTFactsFigures2011.pdf. Accessed on 19 March 2012.http://www.itu.int/ITU-D/ict/facts/2011/index.htmlhttp://www.itu.int/ITU- D/ict/facts/2011/material/ICTFactsFigures2009.pdfhttp://www.itu.int/ITU- D/ict/facts/2011/material/ICTFactsFigures2011.pdf