Financial motivation impacts the public’s perception of news

The news media face significant challenges in today's market, particularly in engaging large, diverse audiences and ensuring that their content is trusted and valued. While much of the discussion around consumer disengagement in news focuses on issues like bias and clickbait, a new culprit has emerged: the public's perception of profit-driven news.

Some people believe that news companies are increasingly compromising their integrity by prioritizing profit and financial gain, even as the industry struggles to improve its public standing and economic sustainability. Journalism scholars Jacob L Nelson,Seth C Lewis, and Brent Cowley explore factors influencing the perceptions of news trustworthiness. Their research, Money is the root of all evil.' How the business of journalism shapes trust in news examines how perceptions about news funding influence trust and engagement with news content.

Trust, bias, and skepticism of the news

The authors interviewed 34 news consumers, using the folk theory-a generative approach to uncovering the narratives people construct on any given topic. The root causes of trust understandably vary among individuals. Some respondents attribute their distrust of the news industry to the rise of populism, others to the influence of digital technology, and some to the lack of diversity in traditional newsrooms.

However, despite these varied perspectives, many perceive news reporting as biased. While discussions on bias typically focus on political leanings, economic bias can play an equally significant role. Economic pressures influence public trust; many today believe news organizations prioritize profitability over accurate reporting.

Skepticism toward journalism also stands as a barrier to trust. Respondents highlighting their skepticism and concerns often feel compelled to fact-check and corroborate news stories. They view the news as ideologically biased rather than objective, leading them to consume it critically and avoid accepting journalistic perspectives as entirely truthful.

Is the news profit-driven with an economic bias?

The research participants assume news organizations primarily make money through advertising, leading to a focus on attracting large audiences. They believe this economic pressure results in sensational and often ideological biases in news coverage. The perception of journalism as profit-driven contributes to consumer distrust of news, as they view the news media as prioritizing profit over accurate reporting.

Further, respondents frequently point to journalism's pursuit of profits as a reason for their deep skepticism. They observe news organizations striving to secure advertising deals and attract large audiences, thinking this will influence the journalists' reports. Those who see ideological bias in the news perceive it as economically motivated rather than ideologically driven.

Perception controls reality

Audience distrust stems not necessarily from the news media's actions but from the perception that news organizations prioritize profits above all else. While skepticism towards commercial influence is justified, this study indicates that audiences overwhelmingly view economic interests as dominating journalistic integrity. The respondents' perception suggests that audiences believe profit-driven priorities significantly compromise journalistic quality.

News without profit-motivations: Non-profit or publicly-funded

The authors believe journalists will not restore public trust solely by maintaining objectivity and avoiding political bias. They recognize the need for news organizations to have revenue goals. However, they recommend addressing the economic model of journalism and demonstrating a clear separation between financial motives and journalistic integrity.

They also see options in non-profit or publicly funded models, which can reduce perceptions of profit-driven motives in the news. While trust in publicly funded outlets like the BBC dropped, a structural shift across the could improve trust. Public funding could especially benefit local newsrooms, which are perceived positively but are financially vulnerable.

It is essential to understand public perceptions of newsroom economic motivations and their impact on trust. Further examination of the assumptions that journalism's commercial interests shape people's trust in news is key to understanding the nuances of the industry's credibility challenges. Meanwhile, increasing transparency can help address audience concerns about revenue and profits influencing journalistic work.

engagement, news, nonprofit, revenue models, trust