Collapse of the Newspaper Industry and Its Replacement By Online News

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Question 1

Information Technology has revolutionised the way through which people access information. Chen’s article, “Newspapers fold as readers defect and economy sours” shows this by detailing the collapse of the newspaper industry and its replacement by online news. Prior to the widespread availability of the internet, consumers were forced to rely on newspapers and television to find out the news of the world. These comparatively old medias are offered to the public on a delay due to the process of printing and production. However, the internet now offers news and information to these same people, free of charge and on demand.

The development of online news has therefore resulted in its overtaking newspapers as a popular source for news (Pew Research Center , 2008). Reasons for this occurrence are evident when analysing modern lifestyles in technologically advanced countries. Instant access to services such as fast food and online banking is a distinguishing feature of this decade, and access to news conforms to this trend. Increasingly common internet-enabled phones allow users to access diverse news content wherever they happen to be, whereas in previous years a newspaper was the only portable choice (Reardon, 2007).

The ad-revenue-based business model of the newspaper is collapsing (Carr, 2008), particularly in the technologically advanced United States (Chen, 2009). Most major newspapers offer a free version of their content online while relying on revenue from physical sales and ads. Carr (2008) states that a newspaper ad costs “many thousands of dollars”, while online ads bring in only a few dollars for each 1,000 customers. This is a serious problem for companies that rely on paper sales. Increasing numbers of peo...

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...yths. Retrieved August 6, 2009, from Friends of the Earth: http://www.foe.co.uk/resource/briefings/paper_recycling.html

Pew Research Center . (2008, December 23). Internet Overtakes Newspapers As News Outlet. Retrieved August 1, 2009, from The Pew Research Center for the People & the Press: http://people-press.org/report/479/internet-overtakes-newspapers-as-news-source

Reardon, M. (2007, November 13). Smartphone sales skyrocket. Retrieved August 2, 2009, from CNET News: http://news.cnet.com/8301-10784_3-9816072-7.html

Skillings, J. (2006, May 24). $100 laptop gets working prototype. Retrieved August 9, 2009, from CNET News: http://news.cnet.com/100-laptop-gets-working-prototype/2100-1005_3-6076351.html

Villano, M. (2009, June 8). Can Computer Nerds Save Journalism? Retrieved July 31, 2009, from TIME: http://www.time.com/time/business/article/0,8599,1902202,00.html

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