Stormy Weather For Online News?

The challenges faced by newspapers in the digital world resemble dark clouds on the horizon, according to a high-profile reporter.

Writing in American Journalism Review, Paul Farhi delivers a stark warning for future journalists if these challenges are not met by news groups in the present.

The Washington Post reporter predicts the appearance of four significant “rumbles of thunder” in the distance - audience growth figures, “fly-by” visitors, increased online competition, and slowing digital ad growth.

Farhi uses Nielsen/NetRatings and other research group data to paint a picture of a static audience, the majority of whom are fast mouse-clickers who don’t linger long on news sites.

But it’s in the field of advertising that he finds the greatest cause for concern due to declining print revenue, and Farhi suggests current rates would see online ad turnover take at least a decade to counteract it.

Farhi writes: “Journalists, or indeed anyone with an interest in journalism, had better pray that doesn’t happen.

“Because online revenue is still relatively small and will remain so even at its current pace, this scenario implies years of financial decline for the newspaper industry.”

He adds: “Newspapers were already cutting their staffs before this year's advertising downturns.

“A sustained frost of similar intensity would likely lead to even more devastating slashing.”