Online news attracts star power and big money

Online news attracts star power and big money

WASHINGTON - The news media is generating some big news of its own, as a growing number of star US journalists move online, bringing followers and financial backers with them.

Online news sites have been around for years, but in recent months the trend has gained momentum, defying predictions of a troubled media industry.

The latest was the relaunch of FiveThirtyEight, headed by Nate Silver, a statistician and journalist who made his own headlines with his accurate prediction of the 2012 presidential election.

The site, which covers a range of news with a statistician's eye, is backed by the sports broadcaster ESPN, after Silver left The New York Times with his blog.

Also joining the fray was The Intercept, a news site backed by tech entrepreneur Pierre Omidyar with an editorial team led by Glenn Greenwald, the former Guardian reporter who broke news with documents leaked by former National Security Agency contractor Edward Snowden.

Omidyar has pledged to invest US$250 million (S$317 million) in his First Look Media, which includes a not-for-profit news operation and a separate technology arm for new media.

The Washington Post's popular "Wonkblog" columnist Ezra Klein meanwhile left the newspaper to start a news website backed by Vox Media.

Yahoo wooed television news star Katie Couric and former New York Times tech writer David Pogue. And journalists at The Wall Street Journal-backed tech blog AllThingsD broke off in January to create Re/code, a separate website with support from Comcast's NBCUniversal.

The new energy in Internet news comes as the entrenched news industry faces deepening financial woes, and the model for online profits remains unclear.

So is the news business dying or being reborn? Alan Mutter, a former Chicago newspaper editor who consults for journalism and technology ventures, said that while traditional newspapers are withering, online news sites may be working.

But the digital news business is likely to be "vertical," covering a segment such as technology, sports or politics, unlike a newspaper, which aims to cover all sectors. Online news can get money from subscriptions, premium content or links to shopping, for example.

"The future of digital publishing is the antithesis of traditional publishing," Mutter told AFP.

Newspapers try to get a broad audience by offering comics, coupons and recipes, while covering news ranging from local crime to politics to walks on the moon, and online sites are changing that model.

The shift is similar to what happened in retailing, with multi-sector department stores hammered by specialty apparel, housewares or electronics stores.

"Newspapers are basically following a publishing-model mindset that is locked in 1958," Mutter said.

More about

Purchase this article for republication.

BRANDED CONTENT

SPONSORED CONTENT

Your daily good stuff - AsiaOne stories delivered straight to your inbox
By signing up, you agree to our Privacy policy and Terms and Conditions.