Forecast 2017 Q&A: The media business model

The 2017 election underscored the pressure on today's news media. There's a high demand for news from a public with a lower propensity to pay for it'at least with traditional subscriptions. S. Sriram , an associate marketing professor at the University of Michigan's Ross School of Business, explains why pooling news personnel might be the way of the future. His research focuses on brand and product portfolio management in several industries including consumer packaged goods, technology products and services, retail and newspapers. SRIRAM: The staff cuts at newspapers are bound to continue unless they can find a way to stabilize revenues. But television news?especially cable television outlets such as CNN, Fox News and MSNBC'have experienced some growth in the recent years. This has enabled them to hire additional reporting staff. I can see several possible scenarios developing. One possibility is that newspapers get absorbed by television outlets, which will enable them to share reporting staff. An alternative possibility is that even if newspapers remain independent in terms of ownership, they may still share reporting staff resources with cable networks. If this happens, many news outlets will end up sharing a common pool of reporters. Any differentiation will be in terms of local news coverage and editorials. Q: There was a call after the election for people to support their local papers, and national papers, with subscriptions. Do you see any long-term benefit from this?