The Decline of The Media Industry

DECLINE THE THE MEDIA INDUSTRY NEWS DIV Media has had a rough time of it recently. With bookstores going out of business and new regulations attempting to restrict online content, things are definitely changing. Just how much remains to be seen. THE NEWSPAPER INDUSTRY NEWS One of the longest-running forms of media is in trouble. NEWS- PAPERS were once a staple in every household, but that's just not true today. Advertising owhere the victim 1side two years age as just 15. where the victim 1side 44.24% injust 4 years. revenues dropped by 2005 a day mmt of what is trado nerdreys $49.435 BILLION Fn one billN predies the ares a day s a day by the 2006 will *tly, the com- vels Totaj Vats $49.275 BILLION two years ago where the v $45.375 BILLION was inst 15 iside 2007 e victim ags set o. kchang dag, Abo y tone e 15 per00 mnic tr $37.848 BILLION 2008 urmfiba one billion sh 2009 day, or igs p. е уел. $27.564 BILLION the y 13,500 Between 2007 and 2010, newspaper journalists lost their jobs. 21 You're fired! U.S. newsrooms have lost 25% Full-time staff levels are lower than they have been since the 1970s. of their full-time staff. 121 LOCAL NEWS LOCAL NEWS 2008-2009 Citizen journalism, locals saw the largest drop in staff in a 12-month reporting on their own news, is on the rise, (31 period, but this has now slowed. 121 Just 40% 41% 31% of people read a newspaper online or in print, and of those: read online read print Cummings predicts that to one billion shares a day by year, ntly, the com papers l4) shooting in her ne two years ago was just 15 atariy tops 3 THE perc Cumm PRINTED BOOK Over the past couple of years, dozens of bookstores have gone -------------------------- WHAT IS GOING ON? out of business, including large chains like Borders. WHAT HAPPENED? THE DEMISE OF BOOKSTORES Amazon now sells more e-books than print books. The last known ratio was 115 First, mega-bookstores wiped out most smaller e-books for every 100 print. bookshops. The 3rd generation Kindle is the bestselling product Then mega- bookstores began to ever on Amazon, 187 Originally for adults, e-readers are becoming more popular with younger readers now. go out of business, 16 Barnes and Noble is the last big chain to remain. 16 25% of young adult book sales at Harper Collins were e-books in January 2012. [9] THE VIDEO INDUSTRY IS THE WRITING ON THE WALL? While the actual movie may not be in danger, we've already seen a decline in video rental stores. Netflix, an online streaming video service, predicts that > 2030. DVDS will be obsolete by [10] The company has moved almost entirely to streaming video. MVIE In 2009, the company saw an 18% drop in revenues in the U.S. I121 Blockbuster shut down all stores in Canada. In 2010, Hollywood Video went bankrupt. 19 DANGER DANGE DANGER NGER DANGER SOPA DANG It is becoming obvious that digi- tal is the way to go, and the Internet is now the source of much of our media... but even that is in danger. NGER DANGER NGER DANGER DAN SANGER DANGER DANG SOPA = Stop Online Piracy Act To crack down on online piracy and copyright infringement THE IDEA: by preventing access to websites that host and aid the transfer of pirated materials. 14) Sites like Pirate Bay would be shut down or blocked. 191 DANGER TWO SIDES TO THE STORY While Congress pushes for passing SOPA and its sister act, PIPA, others say it will destroy the Internet as we know it. 15) Because neither SOPA nor PIPA clearly defines what constitutes SOPA copyright infringement, Opponents feel SOPA will destroy the online economy. n5) it leaves the door open to affect virtually any company. 16 Malicious claims could disable websites that aren't really infringing at all. 15) WAIT ISN'T THAT ALREADY ILLEGAL? 1998 SOPA Digital Millennium Copyright Act * This act protects * It does not protect against copyright from overseas infringement. 4 infringement. 14) EVERYTHING IS CHANGING. Media has always been a very flexible medium, and with the Internet, it is becoming more and more difficult to control. Where will things end up? Time will tell. SOURCES: [1] http://www.naa.org/trends-and-numbers/advertising-expenditures/annual-all-categories.aspx [2] http://asne.org/article_view/articleid/763/decline-in-newsroom-jobs-slows-763.aspx [3] http://stateofthemedia.org/2010/overview-3/ [4] http://mashable.com/2011/03/15/online-versus-newspaper-news/ [5] http://money.msn.com/exchange-traded- fund/dispatch.aspx?post=8cef1cd2-3da3-4436-9b2d-cd0blea01fc7 [6] http://www.nytimes.com/2012/01/29/business/barnes-noble- taking-on-amazon-in-the-fight-of-its-life.html?pagewanted=all [7] http://www.guardian.co.uk/world/richard-adams- blog/2011/jan/28/amazon-kindle-ebook-paperback-sales [8] http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol- newsarticle&id=1510745&highlight= [9] http://www.nytimes.com/2011/02/05/books/05ebooks.html [10] http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aedis7ssqmtc [11] http://www.cbc.ca/news/business/story/2011/08/31/blockbuster-canada-close.html [12] http://articles.businessinsider.com/2010-02- 25/entertainment/30079707_1_jim-keyes-blockbuster-kiosks [13] http://dvd.ign.com/articles/108/1084390p1.html [14] http://money.cnn.com/2012/01/17/technology/sopa_explained/index.htm [15] http://searchenginewatch.com/article/2139890/sopa-explained- why-its-bad-for-the-web-how-to-stopsopa [16] http://www.pcworld.com/businesscenter/article/248378/why_sopa_and_pipa_are_bad_for_ small_business.html