IN FEBRUARY Vice, a media firm that caters toyoungsters who like their news with a dollop of sass and hip-hop, toured the opulentresidence of the ousted president of Ukraine, Viktor Yanukovych, and posted the video online. “It looks like a weird dictatorship theme park,” the sardonic reporter told the camera. A newreport by the Pew Research Centre, a think-tank, finds that a third of Americans now watchnews videos online, about as many as say they watch news on cable television. Among thoseaged 18-29, around half do.
In years past Pew's “State of the News Media” reports have been sombre, chronicling theevisceration of jobs and the gutting of news budgets. This year, however, Pew sounded moreoptimistic, pointing to the slew of digital-news services, such as Vice's online news channel,that have sprung up recently. Around 5,000 full-time jobs have been created at 468 digital-news firms, according to Pew. Many online-news firms have hired high-profile journalists awayfrom big publications, such as the New York Times and Washington Post, and are launchingbureaus around the world (although not nearly as many as have been shuttered bynewspapers).
Digital news firms used to do little besides rehashing traditional newspapers'stories. Now theyare starting to feature more original articles. Last year Business Insider, a business-news site,ran a profile of Marissa Mayer, the boss of Yahoo. At 23,000 words, it was as long as a novella. “Online you can afford to do that. In a magazine you'd go broke,” says Henry Blodget, the bossof Business Insider. Buzz Feed, which used to be known for casting out “click bait” online, nowclaims around 170 full-time staff, including a Pulitzer-prize winner, Mark Schoofs, who has beenhired to run a new investigative team.
Lower costs explain why so many digital news firms, like Silicon Valley start-ups, are launchingtoday. Ken Doctor, a newspaper analyst, reckons it costs as little as $5m to start a “credible”digital news offering. Financiers and philanthropists are investing in news: eBay founder PierreOmidyar put $250m into a new non-profit, First Look Media. All this has injected hope into abeleaguered industry. Last month Marc Andreessen, a venture capitalist, predicted thatjournalism may “be entering into a new golden age” and that the news industry would growten- or a hundredfold.
Journalism is at least becoming more participatory. Pew finds that around half of social-mediausers share news articles or videos, and comment on them. Around 7% of American adultshave posted their own news video to a social network, or submitted one to an establishednews site. Interactive features are doing particularly well. Last year the New York Times's mostpopular “article” was a quiz in which people could test whether they spoke more like a LosAngeleno or a Louisianan.
Some positive news is welcome, but newsrooms continue to bleed jobs (see chart). The rise ofdigital-media firms has done little to restore local news coverage, which has suffered with theclosure of many local papers. Digital-news firms'long-form narratives and investigativejournalism may grab attention, but they are unlikely to compensate for projects that willnever take place again in old newsrooms because of budgetary woes.
Facebook users may be reading news, but they spend on average only a minute and a half on anews site each month if they come from Facebook, about a third of the time that visitors spendif they go to a newspaper's site directly. And digital video may be growing, but its advertisingonly accounts for around 10% of all digital ad revenues, and viewing growth has slowed. Eventelevision news is not having an easy time. In 2013 the three big cable news channels—CNN,Fox and MSNBC—lost around 11% of their combined audience during prime-time. The newsindustry today resembles Newton's third law of motion, says Amy Mitchell, Pew's director ofjournalism research: for every action, there is an equally strong reaction. The momentummight have shifted online, but gravity is still pulling everyone down to earth.