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The non-substitutability of local news?

Authors
  • Sjøvaag, Helle1
  • Owren, Thomas1
  • 1 University of Stavanger, Norway , (Norway)
Type
Published Article
Journal
Nordicom Review
Publisher
Sciendo
Publication Date
Feb 02, 2021
Volume
42
Issue
1
Pages
1–14
Identifiers
DOI: 10.2478/nor-2021-0001
Source
De Gruyter
Keywords
License
Green

Abstract

This article addresses the challenges facing local newspapers as the digital economy transitions to artificial intelligence (AI). We interview five CEOs of Scandinavian newspaper corporations, representing small, mid-sized, and large newspaper chains. The analysis focuses on three main factors emerging from the interviews – technological transformations, digital advertising markets, and corporate enrolment – and how they relate to business model disruption and the non-substitutability of local news. The analysis is set within the framework of the digital transformation, which, for the purpose of this study, we argue consists of two phases: getting online (until about 2014), and algorithmic adaptation (the introduction of programmatic advertising and audience metrics from about 2014). The analysis concludes that as non-substitutability is lost on the advertising side of the market, this challenges the umbrella model of newspaper publishing.

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