Monday 24 March 2014

Daily Mail and Guardian digital 'minnows', says News UK chief

Daily Mail and Guardian digital 'minnows', says News UK chief

Mike Darcey says relying on online ads as main revenue stream is risky in market containing rivals such as Google and Facebook
Mail Online
The News UK chief thinks that by the Guardian and Daily Mail allowing users to access their news articles online for free, they are devaluing the value of the news industry as why would people pay paywalls when they can access content elsewhere for free. 

"The Guardian web proposition is so good I wonder why anyone continues to buy the Guardian edition in print at all. They must be very wealthy people."

"When print is switched off, all you have is online advertising [and] online ad prices are low and are falling,"
combined monthly online readership of almost 300 million

I think that they will have to rely on advertising revenue as competition is continuously increasing. This means more news companies are allowing content to be consumed freely on-line, forcing more companies to follow in order to survive. if contents available for free audiences will not pay to consume news. although Facebook and Google are large competitors with a vast amount of revenue generated through advertisement, the daily mail may have a chance considering the amount of on-line traffic they generate. 




This article talks about how reliable social media really is. Although social media contains an incredible amount of information, consumers assume it is all correct.
Examples in the article include:
‘Morgan Freeman dying three times: once on Twitter, twice on Facebook.
During Hurricane Sandy, a shark swam up the streets of New Jersey.
In the London riots of 2011 a tiger was let loose from London Zoo.
And this week Manchester United boss David Moyes was sacked’.
In the US a third of all adults under 30 are said to get their news from social media

I think the number more and more people will continue to get their news from on-line sources. This is because it is easier to consume compressed amounts of information with  key points.

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