Division of Labor, Talent and Journalistic Branding

A clear divide exists between generic labor and talent in media companies and it is now increasingly dividing journalists. The divide initially appeared in the motion picture industry and moved into broadcasting as competition led companies to vie for the talented people—or at least those who could generate the largest audiences and revenue for media companies.

The talent concept moved into journalism with the development of television news and salaries for news presenters and leading correspondents that were far above those of average television reporters.   In print journalism, talent initially involved columnists and then encompassed a few well-known reporters.
Today, the appearances of journalists at events and on talk shows, individually-authored digital news sites, and the increasing uses of blogs and social media by journalists is transforming many into individual brands that are being using to improve their social standing and connections with audiences. This journalistic branding no longer primarily supports employers’ interests for audience creation and retention. Instead, it creates an individual brand that increases the demand for the services of the branded journalist. This, of course, can be translated in higher wages, better employment opportunities, or self employment via the digital media.

The fact that individual journalists are finding ways to increase their value isn’t a problem, but journalists need to thinking about the point where branding transforms them into celebrity—thus moving them from being an observer to a participant in the news they report.
The development of talent—whether as journalists, investment managers, sports personalities, and even publicly recognized scholars—represents a significant shift in capital-labor relations.  In industrial society, capital had disproportionate power because it controlled factories and labor had few ways to counteract that power outside of collective bargaining. In post-industrial society, however, power is shifting toward talent because these branded professionals are a new class of personnel who are crucial for companies—but talent doesn't fall into the traditional capital or labor categories.

One of the downsides of this shift, according to Roger Martin, dean of Rotman School of Management at University of Toronto, is that it is creates two classes of labor: generic labour and talent. The first is often undervalued and the second sometimes overvalued.  The process is creating disproportionate incomes, opportunities, and mobility for the latter group and there is growing animosity between generic labour and talent because they do not share similar experiences or have a common identity.
What talent will mean to the future of journalism is uncertain, but digital communications are clearly making it possible for some journalists to separate themselves from others and to move into the talent category. It is something we should be watching.

What we now know about news and news revenue in the digital world


There has now been enough experience and research to draw conclusions about how news is transitioning to the digital world and what it means for news companies. If one objectively views the developments, one sees that the current developments are is neither as bleak as some journalists portray them nor as rosy as some digerati frame them. Instead, we have reached a point where digital news is becoming workable in commercial terms, but is not yet mature enough to erase the industry's business challenges.
News consumption in the digital environment is significant and audience reach is now 5 to 10 times larger across digital platforms than for print editions of most newspapers.  Many large news organizations are now generating 15-25 percent of their revenue from online, tablet, and smartphone platforms and benefits are starting to appear for some mid-sized players as well.

If we look at what has occurred in the past decade, there are some important lessons to embrace about news businesses in the digital environment:
  • Commoditized news does not create economic value; you have to provide something unique if you are going to get the public to pay for it
  • Consumer payments are becoming a more important revenue source than advertising and success come through creating more sources of revenue than merely audience sales and advertising sales
  • Paid apps for news on smartphones and tablets are gaining better acceptance than general online payments, and
  • new partners, networks, and value configurations are needed in the digital world.
When it comes to payment issues we now know that:
  • Willingness to pay is affected by the platform used (partly because of expectations and traditions and partly because of better payment interfaces), as well as the number of free digital competitors in the market
  • Willingness to pay ranges from about 4 to 12 percent of the public in markets that have been studied
  • Larger legacy news players seem to have advantages when seeking digital payments because of their offline size and resources and the strengths of their brands
  • Instituting a paywall reduces website traffic between 85-95 percent
  • Metered ( freemium) models provide brand and marketing advantages and reduce traffic loss somewhat
  • Cooperative paywalls involving multiple newspapers are beginning to work in some locations and provide economies of scale and transaction cost saving that are useful for smaller organizations
  • Public affairs magazines are finding it easier to get the public to pay than newspapers, especially on tablets. This may be due to differences in how they approach and present content.
It is also apparent that users expect more from digital environments than the print environment and that they are more willing to use and pay for news if it offers a better experience (convenience, simplicity, ease of reading/viewing, enjoyment), if they can influence the presentation and consumption and interact with content and other users, if content includes more analysis and access to additional material, if it includes audio-visual material, and if it offers various usability tools. Those factors mean that news organizations have to offer digital content that differs from the print newspaper in many ways.

We have learned that to make money from news in the digital world companies have to focus on customer needs (not the needs of the news organization), must be realistic about financial expectations (you won’t make as much money as in the 1990s and growth won’t be highly rapid), and that you cannot just transfer the same content among platforms because each platform requires different types of presentations, story forms and navigation.
Some news organizations are making good progress in getting things right and the public is increasingly seeing value provided by news on digital platforms and evidencing increased willingness to pay. Most news enterprises still have a long way to go, but we have no reason to be  highly pessimistic about the future of news in the digital world.

Many journalists can't provide the value-added journalism that is needed today

Journalists pretend they spend their time investigating the intricacies of international affairs, covering the inner workings of the economic system, and exposing abuses of political and economic power. Although many aspire to do so (and occasionally do with great effect), the reality is far from the imagined sense of self.

Most journalists spend the majority of their time reporting what a mayor said in a prepared statement, writing stories about how parents can save money for university tuition, covering the release of the latest versions of popular electronic devices, or finding out if a sports figure’s injury will affect performance in the next match.

Most cover news in a fairly formulaic way, reformatting information released by others: the agenda for the next town council meeting, the half dozen most interesting items from the daily police reports, what performances will take place this weekend, and the quarterly financial results of a local employer. These standard stories are merely aggregations of information supplied by others.

At one time these standard stories served useful purposes because newspapers were the primary information hubs of the community. Today such routine information has little economic value because the original providers are now directly feeding that information to the interested public through their own websites, blogs, and Twitter feeds. Additionally, specialist topic digital operators are now aggregating and organizing that information for easy accessibility.

Town councils place their agendas and voting reports on their own websites, many police and fire departments operate continuously updated blogs and twitter feeds that provide basic emergency reports and what is being entered in their blotters and logs, performance centers and concert promoters offer websites and digital notifications of upcoming activities and events, and companies and business information media offer direct distribution of financial reports and news releases to the public. All of these are stripping the value from newspaper redistribution of those kinds of information and making people less willing to pay for provision of that news.

To survive, news organizations need to move away from information that is readily available elsewhere; they need to use journalists’ time to seek out the kinds of information less available and to spend time writing stories that put events into context, explain how and why they happened, and prepare the public for future developments.  These value-added journalism approaches are critical to the economic future of news organizations and journalists themselves.

Unfortunately, many journalists do not evidence the skills, critical analytical capacity, or inclination to carry out value-added journalism. News organizations have to start asking themselves whether it is because are hiring the wrong journalists or whether their company practices are inhibiting journalists’ abilities to do so.