Reports of Journalism’s Death are Overstated

We're finally realizing that the “free news” era was an unsustainable detour.

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by Peter Coish

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We’re entering the “post-web” era. The idea of free information, supported by advertising clicks, is falling apart. AI platforms now deliver information directly to users, bypassing publishers entirely. The ad-supported digital model is failing.

No Traffic? No Revenue

Newspaper and magazine publishers spent decades chasing clicks from search engines and social media. Now that traffic source is disappearing. Google’s AI-powered summaries and conversational search features have already reduced publisher clicks by around 34%. Major publishers like HuffPost, The Washington Post, and Business Insider are seeing their search traffic collapse, which means their ad revenue does too.  This has resulted in layoffs and urgent strategic pivots.

Back to First Principles

After years of handwringing – and advocating for dumb legislation – some news media have finally realized that the correct response is a return to their original business model – paid journalism. Before the internet, readers paid for subscriptions, newsstands, or cable packages. The “free news” era was an unsustainable detour.

The New York Times demonstrated the viability of this return when it implemented a paywall in 2011, successfully converting millions of casual readers into dedicated subscribers. The key was consistent, high-quality journalism. The Atlantic and The New Yorker soon followed, focusing on loyal subscribers rather than transient social media traffic.  Read any of these publications and it’s hard to argue that they are not at the peak of their game.

Quality journalism stands out in a landscape dominated by shallow content and misinformation. The Atlantic nearly doubled their subscriber base by prioritizing impactful reporting. Readers will pay for trustworthy journalism. A NYT subscription costs around $25 per month.  That works out less than a dollar a day.  Readers paid that much every day to pick up a print copy of the paper.

Innovation in the Face of Adversity

However, simply introducing paywalls isn’t enough. Publishers now bundle news subscriptions with additional products like apps, podcasts, and exclusive events to enhance value. Direct audience engagement through newsletters and events helps build deeper connections and subscriber loyalty. Smart publishers are also innovating with digital-native formats such as explainer videos and short-form content to attract younger audiences. They are adapting to new content consumption habits to expand their subscriber base.

AI is the latest challenge for publishers. Platforms such as Google’s AI-powered summaries and conversational search, along with tools like ChatGPT, satisfy user queries without directing them to publishers’ websites. As these AI systems scrape and repackage news content, publishers see a significant reduction in web traffic and ad revenue. Some publishers respond by licensing their content to AI companies, securing modest compensation, but worry this may only strengthen future competition. Others pursue legal action to protect their intellectual property, arguing that unchecked AI use undermines their sustainability. Ultimately, the AI threat lies in publishers potentially becoming mere data suppliers for AI tools, losing control over their content distribution and economic viability.

Sadly, Canadian Newspapers Haven’t Learned

The lesson is publications must evolve into relationship-driven brands, independent of unreliable web traffic. They must stay flexible, continue innovating, and remain committed to producing quality journalism. Canadian metros seemed resistant to learning that lesson, and instead of innovating, spent years blaming Facebook and Google for their travails.  This has lead to ill-advised legislation and handouts from the public purse.

Survival depends on readers’ willingness to pay for journalism they value. The shift back to paid content is difficult. But necessary. Ultimately, sustaining quality journalism will require readers to recognize its importance and invest in it directly.