US media sector braces for brutal year for jobs
US media sector braces for brutal year for jobs
AFP • July 3, 2019
Job losses are accelerating in the US news media amid
more newspaper closings and difficulties in monetizing online news sites
Washington (AFP) - The struggling US media industry is
facing its worst year for job layoffs in a decade as news organizations
continue to cut staff and close shop, according to a new survey.
The consultancy Challenger Gray & Christmas reported
this week that media companies, which include movies, television, publishing,
music, and broadcast and print news, announced plans to cut 15,474 jobs so far
this year, of which 11,878 of which were from news organizations.
That is nearly three times more than the 4,062 cuts
announced in the media sector in 2017 and the highest total since the economic
crisis in 2009.
"Members of the media, especially journalists, have
had a tough few years," said Andrew Challenger, vice president of the
Chicago-based firm.
"Many jobs were already in jeopardy due to a
business model that tried to meet consumer demand for free news with ad
revenue. As media outlets attempted to put news behind pay walls, in many
markets, consumers opted not to pay."
Some of the notable events this year included the closing
of the Youngstown Vindicator, the only daily in the Ohio city, with 144 jobs
lost, and the sale of the New Orleans Times-Picayune resulting in the loss of
most of the 250 newsroom jobs.
But the troubles have also impacted the digital sector
with BuzzFeed cutting 200 employees in January and Verizon eliminating 800 jobs
in its media division, which includes Yahoo, AOL, and HuffPost, the Challenger
report noted.
The report noted that media companies have been unable to
keep pace with Facebook and Google in tailoring ads for customers based on
their interests, making it hard to generate online revenue.
It also noted that a rise in browser ad blocking
extensions has made it increasingly difficult to monetize online news.
"Job cuts and consolidations are likely to continue
until these companies are able to find ways to create growth in revenue
streams," Andrew Challenger said.
He added that subscription-based models will only work if
news organizations can convince consumers of the importance and value of their
news.
"Another possibility for media companies is to
monetize users' personal data, as Facebook and Google have," he said.
"There are obvious ethical implications and
potential legal issues, however, especially as privacy laws begin to pass in
various jurisdictions across the country. Ultimately, the quality of the
country's news will start to decline if we as users refuse to pay for it."
Comments
Post a Comment