The Big Issue - Digital Challenges

When it comes to convergence, one size clearly does not fit all. Each sector of the media faces its own challenges and opportunities.

Chaired by: Alastair Stewart, ITV 
Pete Clifton, Head of Editorial Development, BBC
Carolyn McCall, Chief Executive, Guardian Media
Ian Squires, Director, ITV regional production
Martin Clarke, Publisher, Mail Online

Report by Hannah Waldram and Melanie Hall

If the biggest online news organistaions are struggling financially, what hope is there for the regional news companies? This was one of the key concerns raised in the conference discussion 'The Big Issue -  Digital Challenges', chaired by Alastair Stewart.

Although guardian.co.uk has been making money for the past two years, there was a clear indication that it, like other online media companies, struggles to pay its way. This prompted the question from Charles McGee, editor of the Glasgow Herald, to Carolyn McCall, chief executive of the Guardian Media Group: "If you cannot make money, what chance have regional online operations?" Mrs MCall's answer was to go hyperlocal. "Local press can be very very local and the more local you are the better it probably is," she said.

Martin Clarke, of Daily Mail online, said that newspaper websites were still dependent on the parent paper, and were not making money for themselves. Fellow pannelist Pete Clifton, head of development for the BBC, said the industry had  descended into "fast-food" journalism, and needed to be careful about not sacrificing quality at the price of getting news out quicker. Ian Squires, director of ITV regional production, said "The internet is forming and changing, even as we use it."

Ms McCall was optimistic about the digital future. She said: "It's very easy to look at the challenges. The fact is that audiences are going to flock to digital. Web 2.0 has given us enormous potential to tell stories in a completely different way. The most obvious challenge seems to me to be economic." 

Websites themselves are still failing to make money. Media institutions nationally are only taking 20 per cent of advertising compared with Google, which alone takes 40 per cent. Guardian editor Alan Rusbridger said: "There is something intrinsically unfair about the advantage that Google has by taking the lion's share of the advertising, but I think at the moment Google by and large are helping us all."

Ms McCall said: "We are partners with Google. We do make some money from them."

Mr Clarke suggested that the way of measuring website visitors, the basis of advertising revenue, was funadmetally flawed. He said: "The only figures that should matter are the daily unique users and how long they stay on it. The difference between success and failure is how many people visit your website every day rather than once a month. Why should an online user that visits the website once a month count the same as someone who visits every day?"
The BBC came under fire for not sharing content. But Mr Clifton said: "The BBC is in a position where we are coming up with a range of potential partnerships.  It's better to work in partnerships rather than to top slice the licence fee. One of the arguments for this is the long-standing relationships with the licence fee payer and the BBC. We have a clear view about the strength of working better in partnerships."

The BBC's expansion into regional news was attacked by Mr Clarke. He said: "It should be no business of the BBC to compete with regional broadcasters. The BBC does not have to generate a profit. Otherwise, there is a risk of having a homogenised view of the world."

Mr Clifton responded: "One of the BBC's key public services is to deliver to the audience, but certain audiences do not think we are measuring up. The local websites have been going on for many years. It's about improving the quality of what we do on our local sites. There is a clear indication from audiences that they want mroe video. We want to improve the quality of what we do online."

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