News Summit: Balancing cost cutting with great journalism

HONG KONG - Staff reductions have been the rule for the last 10 years and many times, the “do more with less” motto has threatened editorial quality.

“Managers have to cut costs but continue to produce great journalism pieces,” Martha Stone, CEO of World Newsmedia Network in the USA, told the Tuesday morning session of News World Summit 2011, hosted by the Global Editors Network, in Hong Kong.

Stone also revealed the results of the latest World Newsmedia Innovation Study 2011, which indicates that “on the top of the heap for investment is the notion of developing journalism skills,” followed by developing skills of sales people and iPad/tablet products.

According to the study, the top areas for media companies to cut costs include printing, administration, materials, distribution, office spaces, as well as content generation.

More than 50 percent of the media companies who participated the study pointed out social media and paid-for e-reader/tablet products as opportunities, while 47 percent said so for paid-for mobile services.

Within the next five years, over half of the respondents said more than 20 percent of the revenue will come from sources other than traditional media.

The global study is in its third year and available in 9 languages.