{"title":"The non-substitutability of local news?Advertising and the decline of journalism's umbrella market model","authors":"Helle Sjøvaag, T. Owren","doi":"10.2478/nor-2021-0001","DOIUrl":null,"url":null,"abstract":"Abstract This article addresses the challenges facing local newspapers as the digital economy transitions to artificial intelligence (AI). We interview five CEOs of Scandinavian newspaper corporations, representing small, mid-sized, and large newspaper chains. The analysis focuses on three main factors emerging from the interviews – technological transformations, digital advertising markets, and corporate enrolment – and how they relate to business model disruption and the non-substitutability of local news. The analysis is set within the framework of the digital transformation, which, for the purpose of this study, we argue consists of two phases: getting online (until about 2014), and algorithmic adaptation (the introduction of programmatic advertising and audience metrics from about 2014). The analysis concludes that as non-substitutability is lost on the advertising side of the market, this challenges the umbrella model of newspaper publishing.","PeriodicalId":45517,"journal":{"name":"Nordicom Review","volume":null,"pages":null},"PeriodicalIF":2.0000,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Nordicom Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2478/nor-2021-0001","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"COMMUNICATION","Score":null,"Total":0}
引用次数: 1
Abstract
Abstract This article addresses the challenges facing local newspapers as the digital economy transitions to artificial intelligence (AI). We interview five CEOs of Scandinavian newspaper corporations, representing small, mid-sized, and large newspaper chains. The analysis focuses on three main factors emerging from the interviews – technological transformations, digital advertising markets, and corporate enrolment – and how they relate to business model disruption and the non-substitutability of local news. The analysis is set within the framework of the digital transformation, which, for the purpose of this study, we argue consists of two phases: getting online (until about 2014), and algorithmic adaptation (the introduction of programmatic advertising and audience metrics from about 2014). The analysis concludes that as non-substitutability is lost on the advertising side of the market, this challenges the umbrella model of newspaper publishing.