
10 — village july 2009
engulf much of the media
here and elsewhere with consequences for
society and democracy that are incalculable.
Some of our national newspapers seem certain
to fail, the most vulnerable being The Sunday
Tribune which has lost over € million in the
last decade and a half. Quite some achievement
for a newspaper whose costs should hardly
have exceeded that in the period. Newstalk
-FM is probably vulnerable too. Denis
O’Brien is likely to be required by the Broad-
casting Commission of Ireland (BCI) to divest
himself of some of his national radio licences
and the obvious candidate is Newstalk, rather
than the profitable Today FM. If anybody is
willing to purchase Newstalk they are more
brave than calculating.
But other media are vulnerable too. In-
dependent News and Media (INM), the most
profitable media group on the island, is on
the verge of a crisis as it struggles to meet a
massive debt repayment by the end of June
and an even more massive debt repayment in
the next two years. This, as I wrote here re-
cently, largely because of the insistence by its
former controlling shareholder, Tony O’Reilly,
on paying out much of the sizeable profits in
dividends rather than to reduce the massive
borrowings. The Evening Herald could go
and perhaps some of the group’s local news-
papers.
It would be no harm were Newspread, the
newspaper and magazine distribution agency,
sold off to an unrelated group. The dominance
in the media market of INM has been and, so
far, remains a problem and if the crisis forces
a lessening of the dominance all the better.
Unfortunately, the other media monster
here, RTE, is probably immune from radical
change because of the € subsidy it gets
through a poll tax (aka the licence fee) every
year. RTE’s dominance barely leaves room for
another broadcasting medium to survive and
the negative effect of that dominance spills
over into the print media as well because of
the volume of scarce advertising spend RTE
is able to absorb across its range of outlets:
television channels, three radio channels, a
magazine and a lavishly resourced web site.
In keeping with the psychological condition
now afflicting the Green party, a syndrome
which propels them to show loyalty to their
captors, regardless of risk, even an emotion-
al attachment which causes them to defend
their captors, the Stockholm syndrome. The
Greens, unwittingly, do Fianna Fáil’s bidding
allowing the State owned media conglomerate
grow and proliferate, however damaging that
may be to others of the media species. Eamon
Ryan even thinks this was his idea.
Newspapers everywhere are imperilled.
In America The New York Times, The Phila-
delphia Enquirer, The Boston Globe, The San
Francisco Chronicle, The Los Angeles Times
and many more are in crisis. Many won’t sur-
vive. There is trouble too in the UK. The Inde-
pendent and The Independent on Sunday both,
owned for now by INM may expire soon. Lon-
don’s Evening Standard, recently bought by a
Russian billionaire, is already again in crisis.
And even if much of the print media sur-
vive this present financial catastrophe, the
medium-term future is bleak. Readers are mi-
grating to the web and migrating away alto-
gether from news. The web has proved a dis-
aster for the print media. Newspapers have
been forced to place most of their content on
the web and then they have failed to win reve-
nue from that, while losing sales of their print
editions.
Rupert Murdoch has spoken of charging
for access to newspaper web sites, in part be-
cause The Wall St Journal, which he also now
owns, has proved its capacity to earn revenue
through web subscriptions. But that experi-
ment is unlikely to be replicated easily else-
where and it is hard to see how subscription
web sites can succeed while the same mate-
rial is available free on other web sites – for
instance here via the RTE web site and in the
UK via the BBC web site.
A new idea has emerged recently in Amer-
ica via the hugely successful
books site, amazon.com. It
has devised an electronic book
reader, Kindle, which can also
download newspapers and
magazine from the web. But
the downloads come not via
the web-sites of their news-
papers and magazine but by
way of a protected document
format (PDF) – the whole newspaper or maga-
zine is downloaded in one go and automatical-
ly printed if required. The new Kindle device
is such that the newspaper or magazine can
be read in a format very similar to the print
editions.
Apparently customers are willing to pay
for these downloads, whereas they are un-
willing to pay for access to the web-site. Pilot
surveys are being conducted by The New York
Times and The Washington Post to determine
how popular this might be. The cost of supply-
ing the electronic device to would-be custom-
ers at a hugely-subsidised price suggests it will
be difficult for them.
“Newspapers everywhere are
imperilled”
Vincent Browne