This study examines the impact of "digital transformation" on the management and financing principles of the "journalism industry." The "new digital environment" the world has been experiencing since the launch of the Digital Transformation Initiative at the World Economic Forum in 2015 has rendered "traditional business models" unable to keep pace with the global developments. Digital reality has imposed new business models and brought about radical changes in many concepts and products.
The press industry has not been immune to this digital reality, which has imposed new challenges on the rules of newspaper management and financing, and has had a clear impact on the main sources of funding for journalistic work, namely distribution and advertising. Interest in this digital reality has increased in the "press industry," especially after the COVID-19 pandemic, which has forced the world to accelerate its adoption across many economic sectors and activities, including the press and media sector.
The study used the survey method to obtain information by conducting in-depth interviews with academic elites and digital transformation experts. Eight themes were identified in the interviews with the respondents to monitor their perception of digital transformation, its requirements in journalistic work, the extent of newspapers' interest in it, the challenges of implementation, the new horizons it offers for newspapers, and the ability of newspapers to benefit from artificial intelligence, The feasibility of implementing a digital subscription system, its obstacles, and the future of press institutions and newspapers.
The study concluded with a set of findings, the most important of which are: Egyptian newspapers have succeeded in implementing digital transformation mechanisms, with 64% of those interviewed believing that newspapers are on the right track in a manner consistent with global transformations. Academic elites and experts also adopt a generally optimistic view regarding the extent to which Egyptian newspapers can benefit from artificial intelligence technologies, with 60% believing that newspapers are already using it, 28% expressed that newspapers could fully benefit from it under several conditions, including providing infrastructure and training leadership. This means that the total number of those who believe newspapers are using AI (either fully or partially) reaches 88%.
The results revealed that the lack of human preparedness topped the list of obstacles to implementing digital transformation, with a weighted relative weight of 68%, followed by the lack of financial capabilities (48%), then management's lack of interest (32%), and the lack of technological infrastructure in fourth place, with a weighted relative weight of 24%.
A group of academics and experts believe that a digital subscription system or paywall is possible. 56% believe this is possible, provided the journalistic content is of high quality and can convince both readers and advertisers of the value of paying to read, and that journalism provides a genuine service that motivates readers to continue reading for a fee.
In contrast, 28% believed it was not feasible to implement the system, as its success would require distinguished journalistic content, which readers currently lack in newspapers. This would also be compounded by low income levels, weak technological infrastructure, and a lack of interest in reading and culture. Meanwhile, 16% believed it would require detailed studies, as implementation would require a study that encompasses consumer habits, the economic situation, competition with free content, and low digital awareness.
The study concluded that the elite group of academics and experts hold a positive view of the future of newspaper institutions, with 76% of them viewing the future of newspapers and institutions with optimism, conditional on newspapers' ability to adopt digital transformation policies and develop content as the only way to continue their role in the future.
While 24% of them believe that newspaper organizations will not be able to continue with the disappearance of print newspapers, the inability to benefit from modern technologies, and newspapers' reliance on old business models.