In our latest BSR Policy Briefing, business and economics reporter Kimmo Lundén examines the dilemma of the news media and its business model’s disruption on the web. While newspapers are better read than ever before, the advertisement money from media’s webpages together with the money from subscriptions have not so far compensated losses from the print.
Media’s revenue model and its change
Print journalism is facing increasing economic pressure due to rising costs, declining revenues, and growing digital competition. For instance, in Finland the media landscape has faced changes from reducing print days to even merging or discontinuing certain newspapers entirely. While digital revenues are growing, they still cover only a small fraction of the losses from declining print income.
With global media, international news sources and social media, consumers have more choices than ever. However, converting readers into loyal digital subscribers remains a central challenge. Experts predict that print will continue but its role is diminishing. The transition to digital will depend on creating value that convinces audiences to support journalism financially in a fragmented, competitive media ecosystem.
The effects of technological disruption
The media industry continues to grapple with the effects of technological disruption. Traditional revenue models, especially advertising, have collapsed, and while digital subscriptions and online ads have grown, they haven’t fully replaced lost print revenue. The digital ad markets are dominated by tech giants and news consumption is shifting toward mobile and platforms like TikTok and YouTube. Despite global declines in media trust and rising news avoidance, Finland maintains high trust and engagement with its media.
Publishers increasingly rely on subscription income, and video ads are more lucrative than standard digital ads. However, monetization challenges persist. In addition, AI is rapidly transforming journalism, offering efficiency but also posing risks to content control, copyright, and reliability. Finnish media companies are cautiously experimenting with AI, while also attempting to protect their content from unauthorized use in AI training.
Future prospects of the media
In a climate of financial strain, experts warn that media independence and quality are at risk, emphasizing the urgent need for sustainable, transparent media funding models.
The future of media remains uncertain. With advertising revenues declining and platforms like Google dominating, media companies are shifting to subscription-based models. At the same time, the need for media innovations and cooperation between private and public actors is increasing. In the future, the industry will have to preserve the trust of the readers and subscribers while navigating through technological, political and economic upheavals.
Read the issue: BSR Policy Briefing 3/2025: Solutions for media to achieve financially sustainable journalism online and in print
