Journalism, Value Creation and the Future of News Organizations

Abstract

News organizations in the United States are struggling to respond to technical and social changes that are disrupting the business models that proved successful in the twentieth century. The primary driver of change is that audiences are spending less time and money for news and this is affecting the willingness of advertisers to support news products. Value concepts are rooted in moral philosophy and economics. However, news organizations produce intrinsic and instrumental value for society; however, this value does not necessarily translate into exchange value. This study considers why news organizations are, at present, having difficulty creating value. It argues that journalism and the news business and argues it must improve value creation for five central stakeholders: consumers, advertisers, investors, journalists, and society. It examines why and how these organizations are delivering low value, shows why new value creation is needed, suggests ways to do so in the coming years, and argues that new value can only be created if news organizations adhere to fundamental values.