Traditional Media Is Dying
It seems like every week there is something taking place that can only lead to one conclusion: the collapse of traditional media.
We have discussed how broadcast television is dead. The greatest media package in the world (from the company perspective), the cable/satellite subscription model, is dead. We saw the idea that streaming was the golden goose, something that is costing these entities billions. Netflix is the only one making any money.
Bear in mind, all of this is happening in a time when technology, i.e. AI, is still in its infancy. What we are witnessing is the leftover from the change in distribution caused by the Internet. We have not even approached a world where AI is behind most of the content creation.
That said, we are seeing the end of yesterday, notably newspapers. Those employed in that industry are still walking around without a clue. Nothing exemplifies that more than the Los Angeles Times.
The End Near
These entities are done. There is nothing left.
While many will point to political affiliation, the reality is they lost the one currency that is required: trust. The legacy media is known to be sensationalist, liars, and making stuff up. This is both in print and on television. While some will claim it is one affiliation and not the other, this is more fake news. Journalism, at least in the traditional sense, is dead at these entitities.
How many times, for example, did we hear how the Hunter Biden laptop didn't exist and was nothing more than conspiracy theory? Did we see the media jump on that, attacking the computer shop owner who turned it over. Turns out the DOJ had to admit it was real.
Over the last 20 years, there are many of stories like that.
Of course, this is nothing new. Fake news did not suddenly arise
So tell me, what years did President Dewey serve in the White House?
When trust goes, no matter what the industry, it is done. We see this with finance, medicine, and even government. The last one is really heating up to the point where we are going to see a great deal of civil unrest around the world the latter half of this decade.
Basically, this is how institutions fail.
What is left of the newspaper industry is going that direction also. The LA Times is laying off 20% of its newsroom.
The Los Angeles Times announced Tuesday that it was laying off at least 115 people — or more than 20% of the newsroom — in one of the largest workforce reductions in the history of the 142-year-old institution.
The move comes amid projections for another year of heavy losses for the newspaper.
The cuts were necessary because the paper could no longer lose $30 million to $40 million a year without making progress toward building higher readership that would bring in advertising and subscriptions to sustain the organization, said the paper’s owner, Dr. Patrick Soon-Shiong.
Trillions Of Value Wiped Out
We are going to see trillions in value eliminated over the next decade. When we look at the likes of Disney, Paramount, and other media entities, we see how the collapse is already in motion. Again, I cannot emphasize enough that we haven't even seen the onset of AI generate content. That is still in the early stages. This is all the result of the distribution change from 30 years ago.
To see how quickly things can deteriorate, we only need to look at Bally Sports. This was part of Fox Broadcasting but had to be sold off to appease regulators when Disney acquired the media giant. Fox basically sold this to Sinclair for $10.6 billion, pending regulatory approval. Getting the approval might have been the worst thing to happen to Sinclair.
The sale was completed August 22, 2019. According to Wikipedia, on November 4, 2020, Sinclair took a $4.23 billion write-down on the FSN purchase . We are now to $6.3 billion.
On February 15, 2023, Diamond Sports Group, the owner of Bally Sports, failed to make a $140 million interest payment, instead opting for a 30-day grace period to make the payment. On March 14, 2023, Diamond Sports Group filed for Chapter 11 bankruptcy protection; its restructuring plan included a proposal for the company to be separated from the Sinclair Broadcast Group into a standalone company.
This is just one company. It also deals in one of the primary areas that broadcast television is still strong: sports.
Yet it went from over $10 billion in valuation to bankruptcy in 4 years.
Web 3.0
As stated here previously, Web 3.0 is going to enter this realm in a big way. While it is not evident to many at this moment, we are going to see the ability to create media companies provided to almost anyone. This means the market will be flooded with content.
While most will get few views (think YouTube viewership curve), there are going to be a few that stand out. We have not seen the last of stories like Pat McAfee who turned a YouTube channel into a multi-million contract. The difference is we might not see many coming from legacy media.
These entities are suffering in a major way. Streaming is costing them billions. Feature films are flopping all over the place, resulting in hundreds of millions in losses. Cable news is seeing its audience diminish. Late night television is likely never to return to the days of Leno or Letterman (in terms of ratings).
Broadcast media was always the attention economy. This is now expanding. Joe Rogan is another example of a show that gets plenty of eyeballs.
Each minute spent on a show like that results with a loss of legacy media. With news being plastered all over social media, who needs to turn on CNN to find out what is going on. Judging by the ratings, few are.
Just like shopping malls, technology has crushed this industry. Demonetization is going to obliterate it. Simply put, why would advertisers pay when viewers are not there.
We are in a world of platforms and these media entities have not figured out how to properly do it. Now they are taking on the likes of Apple and Amazon, two companies that are well aware of how to monetize their platforms.
It is going to get messy. The LA Times is just another example of how the death roll is underway.
Posted Using InLeo Alpha
I like to take a paper newspaper and magazine with me on the train. As I always did at the end of the 20th century. But in the carriage everyone is looking at their smartphones and laptops. The circulation of my favorite magazine fell from 3 million to 15 thousand copies per month.
There are a few who still like the physical newspaper.
I can tell the age of people in the neighborhood behind me based upon those who get the paper. None are young.
I haven't bought a newspaper since I think 2015, traditional media won't be used by young people. I believe that independent information on web 3.0 will grow more and more. I look for information and share it with users here on HIVE. I think I will continue to do it and I think others will start to do it
I cant remember the last time I bought one might have been even longer than 2015.
You are right...it will be great to see it all expand into Web 3.0.
o.o i never bought a newspaper ever in my life :D, maybe im too young but why read news when can find it online or have someone summarize in a nice video
I would say age has a lot to do with it.
my age?
Yes. Being so young. If you were a boomer you would have read a newspaper.
ok fair enough. im a youngling . i get it haha
Now people have much better alternatives than reading newspapers to find out what's happening. I think the lost of trust and relevance on traditional media in recent years has speed up their demise. Few people believe what they put out nowadays.
Newspapers are just too slow.