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How Facebook and Google are killing papers and transforming news

If journalism is to survive, it needs either to cut costs (read: sack journalists), or build revenues.

When I started work at the Daily Mail in 2005, there was often a discussion among the men who decided the running order of stories about which pages should be printed in black and white. Not all the presses used colour, and God help the unthinking journalist who placed a story about a man painting his entire council house with replica Michelangelos on a page that would end up in “mono”.

That story makes me feel very old (I’m 33), but it highlights the accelerated pace of change in the news industry in the past decade and a half. I also remember the cuttings library, and a time when headlines were written to fit arbitrary spaces on a page, rather than having to be stuffed full of searchable keywords. Those days are gone.

The first newspapers were printed in the 17th century, and the methods of both their creation (movable type) and their distribution (on paper) remained broadly unchanged for three centuries. When Marxism Today’s published its New Times issue in 1988, that system was unravelling. Computers had arrived and the print unions’ insistence on sharply delineated workplace roles was under threat. This had already led to the Wapping dispute of 1986, in which Rupert Murdoch moved his newspapers to new headquarters to break the collective power of the printers. It took 13 months and 1,262 arrests, but it ended with thousands of men in effect accepting that their skills were obsolete.

That trend has merely continued. Today’s journalism students are encouraged to become jacks of all trades – they learn how to make videos, record podcasts and use databases, they master Photoshop, they understand social media and, yes, they even write and edit stories.

On one level, the world of news now seems gloriously open: anyone can start a blog, anyone can publish on the Huffington Post (if you don’t mind not being paid) or Medium, and anyone can build a following on Twitter or Facebook. But there are new barriers to entry. Where many of my older colleagues at the Mail had started work at 16 – often on local papers, because NUJ rules demanded you spend two years there before heading to Fleet Street – young journalists increasingly have postgraduate qualifications as well as degrees. That privileges the middle class and those whose parents live in London, and who can therefore live at home while trying to break in to the industry.

Local newspapers, once the training ground for young reporters, are dying out: there has been a net loss of 198 since 2005, according to the Press Gazette. Their classified adverts have gone online or gone altogether, and some of those titles that remain are consolidated into remote industrial parks, far from the communities they serve. So there is less reporting of court cases and of the petty corruption of councillors (Private Eye’s Rotten Boroughs, which still covers that ground, is never short of material).

In place of independent papers are glossy PR puffs produced by councils. In December, the editor of the Hackney Citizen complained that the local authority was producing its own fortnightly freesheet, Hackney Today. The latter sells advertising space, making it a direct competitor to independent newspapers, and the council pays for 108,000 copies to be printed by Trinity Mirror and distributed to households every fortnight. It is produced by a press office.

National newspapers are also struggling. Print circulations are falling and the returns on display advertising online can be pitiful. Most online adverts are “programmatic”: sold in real-time auctions on a CPM (cost per mille, or thousand clicks) basis. Users hate them for slowing page loads or interrupting their reading. Unsurprisingly, the use of ad-blocking software has risen steadily.

The industry has tried to fight back by expanding the types of adverts it sells. That is why everyone became so excited about video a few years ago: publishers could place an unskippable advert before a video clip and charge pounds, not pennies, using CPM.

The internet-only news organisation BuzzFeed had another strategy: from the start, it didn’t sell display advertising, only “native ads”: what used to be called advertorial. The theory was that users might be irritated by display ads but they wouldn’t object to a pet-food brand sponsoring a heart-warming video about life with a pet. In at least one case, this paid off handsomely – BuzzFeed’s 2015 collaboration with Purina led to a video called Puppyhood, which racked up four million views in two weeks. The challenge is to repeat that winning formula again and again.

Other publishers tried the start-up mantra: build it, scale it fast, hope the revenues turn up at some point. Medium, a cleanly designed blogging platform, was launched by the Twitter co-founder Ev Williams in 2012 and attracted big-name publications and writers. But on 4 January Williams announced that he was “renewing Medium’s focus” by cutting a third of its staff, because it was not financially sustainable. “It’s clear that the broken system is ad-driven media on the internet,” he wrote. “The vast majority of articles, video and other ‘content’ we all consume on a daily basis is paid for – directly or indirectly – by corporations who are funding it in order to advance their goals. And it is measured, amplified and rewarded based on its ability to do that.”

If journalism is to survive, it needs either to cut costs (read: sack journalists), or build revenues. Hence the proliferation of sidelines: conferences, round tables, business-to-business operations, events, sponsored supplements and the rest. Some companies are trying a more direct approach. The heavily loss-making Guardian is investing in a membership scheme, and the radical US magazine Mother Jones has a pledge to fund in-depth reporting. (Individual journalists are trying this, too: the Patreon website offers readers a chance to fund writers directly, at a set cost per month or per piece.)

Of course, someone is making money out of the great flowering of content on the web. Facebook has 1.86 billion monthly users, and in the third quarter of 2016 its net income was $2.38bn, up from $896m a year earlier. Along with Google, it controls two-thirds of the online advertising market. “Facebook is the new town hall,” Mark Zuckerberg told investors. Unfortunately for him, that role in public life is what made Facebook the focus of the row about “fake news” after the US election. For millions of people, Facebook is where they get their news; its editorial decisions and inbuilt biases shape our common understanding of reality.

You might not have to get your words past the print unions any more, but you do have to pander to what Facebook’s and Google’s guiding algorithms deem important. Zuckerberg has more power than anyone who bought ink by the barrel ever did.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

This article first appeared in the 16 February 2017 issue of the New Statesman, The New Times

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The Brexit Beartraps, #2: Could dropping out of the open skies agreement cancel your holiday?

Flying to Europe is about to get a lot more difficult.

So what is it this time, eh? Brexit is going to wipe out every banana planet on the entire planet? Brexit will get the Last Night of the Proms cancelled? Brexit will bring about World War Three?

To be honest, I think we’re pretty well covered already on that last score, but no, this week it’s nothing so terrifying. It’s just that Brexit might get your holiday cancelled.

What are you blithering about now?

Well, only if you want to holiday in Europe, I suppose. If you’re going to Blackpool you’ll be fine. Or Pakistan, according to some people...

You’re making this up.

I’m honestly not, though we can’t entirely rule out the possibility somebody is. Last month Michael O’Leary, the Ryanair boss who attracts headlines the way certain other things attract flies, warned that, “There is a real prospect... that there are going to be no flights between the UK and Europe for a period of weeks, months beyond March 2019... We will be cancelling people’s holidays for summer of 2019.”

He’s just trying to block Brexit, the bloody saboteur.

Well, yes, he’s been quite explicit about that, and says we should just ignore the referendum result. Honestly, he’s so Remainiac he makes me look like Dan Hannan.

But he’s not wrong that there are issues: please fasten your seatbelt, and brace yourself for some turbulence.

Not so long ago, aviation was a very national sort of a business: many of the big airports were owned by nation states, and the airline industry was dominated by the state-backed national flag carriers (British Airways, Air France and so on). Since governments set airline regulations too, that meant those airlines were given all sorts of competitive advantages in their own country, and pretty much everyone faced barriers to entry in others. 

The EU changed all that. Since 1994, the European Single Aviation Market (ESAM) has allowed free movement of people and cargo; established common rules over safety, security, the environment and so on; and ensured fair competition between European airlines. It also means that an AOC – an Air Operator Certificate, the bit of paper an airline needs to fly – from any European country would be enough to operate in all of them. 

Do we really need all these acronyms?

No, alas, we need more of them. There’s also ECAA, the European Common Aviation Area – that’s the area ESAM covers; basically, ESAM is the aviation bit of the single market, and ECAA the aviation bit of the European Economic Area, or EEA. Then there’s ESAA, the European Aviation Safety Agency, which regulates, well, you can probably guess what it regulates to be honest.

All this may sound a bit dry-

It is.

-it is a bit dry, yes. But it’s also the thing that made it much easier to travel around Europe. It made the European aviation industry much more competitive, which is where the whole cheap flights thing came from.

In a speech last December, Andrew Haines, the boss of Britain’s Civil Aviation Authority said that, since 2000, the number of destinations served from UK airports has doubled; since 1993, fares have dropped by a third. Which is brilliant.

Brexit, though, means we’re probably going to have to pull out of these arrangements.

Stop talking Britain down.

Don’t tell me, tell Brexit secretary David Davis. To monitor and enforce all these international agreements, you need an international court system. That’s the European Court of Justice, which ministers have repeatedly made clear that we’re leaving.

So: last March, when Davis was asked by a select committee whether the open skies system would persist, he replied: “One would presume that would not apply to us” – although he promised he’d fight for a successor, which is very reassuring. 

We can always holiday elsewhere. 

Perhaps you can – O’Leary also claimed (I’m still not making this up) that a senior Brexit minister had told him that lost European airline traffic could be made up for through a bilateral agreement with Pakistan. Which seems a bit optimistic to me, but what do I know.

Intercontinental flights are still likely to be more difficult, though. Since 2007, flights between Europe and the US have operated under a separate open skies agreement, and leaving the EU means we’re we’re about to fall out of that, too.  

Surely we’ll just revert to whatever rules there were before.

Apparently not. Airlines for America – a trade body for... well, you can probably guess that, too – has pointed out that, if we do, there are no historic rules to fall back on: there’s no aviation equivalent of the WTO.

The claim that flights are going to just stop is definitely a worst case scenario: in practice, we can probably negotiate a bunch of new agreements. But we’re already negotiating a lot of other things, and we’re on a deadline, so we’re tight for time.

In fact, we’re really tight for time. Airlines for America has also argued that – because so many tickets are sold a year or more in advance – airlines really need a new deal in place by March 2018, if they’re to have faith they can keep flying. So it’s asking for aviation to be prioritised in negotiations.

The only problem is, we can’t negotiate anything else until the EU decides we’ve made enough progress on the divorce bill and the rights of EU nationals. And the clock’s ticking.

This is just remoaning. Brexit will set us free.

A little bit, maybe. CAA’s Haines has also said he believes “talk of significant retrenchment is very much over-stated, and Brexit offers potential opportunities in other areas”. Falling out of Europe means falling out of European ownership rules, so itcould bring foreign capital into the UK aviation industry (assuming anyone still wants to invest, of course). It would also mean more flexibility on “slot rules”, by which airports have to hand out landing times, and which are I gather a source of some contention at the moment.

But Haines also pointed out that the UK has been one of the most influential contributors to European aviation regulations: leaving the European system will mean we lose that influence. And let’s not forget that it was European law that gave passengers the right to redress when things go wrong: if you’ve ever had a refund after long delays, you’ve got the EU to thank.

So: the planes may not stop flying. But the UK will have less influence over the future of aviation; passengers might have fewer consumer rights; and while it’s not clear that Brexit will mean vastly fewer flights, it’s hard to see how it will mean more, so between that and the slide in sterling, prices are likely to rise, too.

It’s not that Brexit is inevitably going to mean disaster. It’s just that it’ll take a lot of effort for very little obvious reward. Which is becoming something of a theme.

Still, we’ll be free of those bureaucrats at the ECJ, won’t be?

This’ll be a great comfort when we’re all holidaying in Grimsby.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Brexit. You can find him on Twitter or Facebook.