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US media sector braces for brutal year for jobs
WASHINGTON, July 6, 2019 (BSS/AFP) – The struggling US media industry is
facing its worst year for job layoffs in a decade as news organizations
continue to cut staff and close shop, according to a new survey.
The consultancy Challenger Gray & Christmas reported this week that media
companies, which include movies, television, publishing, music, and broadcast
and print news, announced plans to cut 15,474 jobs so far this year, of which
11,878 of which were from news organizations.
That is nearly three times more than the 4,062 cuts announced in the media
sector in 2017 and the highest total since the economic crisis in 2009.
“Members of the media, especially journalists, have had a tough few
years,” said Andrew Challenger, vice president of the Chicago-based firm.
“Many jobs were already in jeopardy due to a business model that tried to
meet consumer demand for free news with ad revenue. As media outlets
attempted to put news behind pay walls, in many markets, consumers opted not
to pay.”
Some of the notable events this year included the closing of the
Youngstown Vindicator, the only daily in the Ohio city, with 144 jobs lost,
and the sale of the New Orleans Times-Picayune resulting in the loss of some
160 positions including 65 in the newsroom.
But the troubles have also impacted the digital sector with BuzzFeed
cutting 200 employees in January and Verizon eliminating 800 jobs in its
media division, which includes Yahoo, AOL, and HuffPost, the Challenger
report noted.
The report noted that media companies have been unable to keep pace with
Facebook and Google in tailoring ads for customers based on their interests,
making it hard to generate online revenue.
It also noted that a rise in browser ad blocking extensions has made it
increasingly difficult to monetize online news.
“Job cuts and consolidations are likely to continue until these companies
are able to find ways to create growth in revenue streams,” Andrew Challenger
said.
He added that subscription-based models will only work if news
organizations can convince consumers of the importance and value of their
news.
“Another possibility for media companies is to monetize users’ personal
data, as Facebook and Google have,” he said.
“There are obvious ethical implications and potential legal issues,
however, especially as privacy laws begin to pass in various jurisdictions
across the country. Ultimately, the quality of the country’s news will start
to decline if we as users refuse to pay for it.”
BSS/AFP/HR/0930