by Latoya Peterson
Earlier this month, I was mulling over a piece in The Atlantic about the decline of the news, and Google’s attempts to assist the ailing industry. I found this tidbit fascinating:
“If you were starting from scratch, you could never possibly justify this business model,” Hal Varian [Google's chief economist ] said, in a variation on a familiar tech-world riff about the print-journalism business. “Grow trees—then grind them up, and truck big rolls of paper down from Canada? Then run them through enormously expensive machinery, hand-deliver them overnight to thousands of doorsteps, and leave more on newsstands, where the surplus is out of date immediately and must be thrown away? Who would say that made sense?” The old-tech wastefulness of the process is obvious, but Varian added a less familiar point. Burdened as they are with these “legacy” print costs, newspapers typically spend about 15 percent of their revenue on what, to the Internet world, are their only valuable assets: the people who report, analyze, and edit the news. Varian cited a study by the industry analyst Harold Vogel showing that the figure might reach 35 percent if you included all administrative, promotional, and other “brand”-related expenses. But most of the money a typical newspaper spends is for the old-tech physical work of hauling paper around. Buying raw newsprint and using it costs more than the typical newspaper’s entire editorial staff. (The pattern is different at the two elite national papers, The New York Times and The Wall Street Journal. They each spend more on edit staff than on newsprint, which is part of the reason their brands are among the most likely to survive the current hard times.)
Krishna Bharat (Distinguished Researcher at Google) puts an even finer point on the problems with the existing news model. Bharat runs Google News, the aggregator that sifts through “25,000 sources in some 25 languages” daily. And considering he has watched the type of news trends that receive coverage, his next comments are old news to many of us dissatisfied with how our communities are portrayed in the mainstream media, but hopefully illuminating to those in the industry:
In this role, he sees more of the world’s news coverage daily than practically anyone else on Earth. I asked him what he had learned about the news business.
He hesitated for a minute, as if wanting to be very careful about making a potentially offensive point. Then he said that what astonished him was the predictable and pack-like response of most of the world’s news outlets to most stories. Or, more positively, how much opportunity he saw for anyone who was willing to try a different approach.
The Google News front page is a kind of air-traffic-control center for the movement of stories across the world’s media, in real time. “Usually, you see essentially the same approach taken by a thousand publications at the same time,” he told me. “Once something has been observed, nearly everyone says approximately the same thing.” He didn’t mean that the publications were linking to one another or syndicating their stories. Rather, their conventions and instincts made them all emphasize the same things. This could be reassuring, in indicating some consensus on what the “important” stories were. But Bharat said it also indicated a faddishness of coverage—when Michael Jackson dies, other things cease to matter—and a redundancy that journalism could no longer afford. “It makes you wonder, is there a better way?” he asked. “Why is it that a thousand people come up with approximately the same reading of matters? Why couldn’t there be five readings? And meanwhile use that energy to observe something else, equally important, that is currently being neglected.” He said this was not a purely theoretical question. “I believe the news industry is finding that it will not be able to sustain producing highly similar articles.”
I’ve been thinking about this in light of the Stanley-Jones tragedy, and in light of South Philadelphia High School. Continue reading