Financial Value of Trust in the Media Business

Abstract

We live in a time where the term “fake news” has become a household term and has even entered the German dictionary Duden. However, it is not just plain lies that are an issue as Jami (Venus in arms. CreateSpace International Publishing Platform, United States, 2012) correctly points out: “Just because something isn’t a lie does not mean that it isn’t deceptive.” It is therefore no surprise that various research papers report a record low polling in media trust such as Edelman (Edelman trust barometer. Annual global study 2018, 2018) or Gallup (Americans trust in mass media sinks to new low, 2016). According to the Gallup (Americans trust in mass media sinks to new low, 2016) poll, trust in mass media in the United States “is lower than it has ever been since the organization started asking that question in 1972”. Trust in the Media Business is a concept with multiple dimensions such as social, political, personal or journalistic. This article aims at elaborating a particular dimension, namely the Financial Value of Trust in the Media Business for individual businesses. Trust is not a “nice to have” attribute for some of these companies, but is a strong driver of success. Market players have to find the adequate strategy and have to decide whether they should try to become price leader, a quality leader or a speed leader. The strategy of speed leader is a newly introduced concept in this article, which together with the other two established strategies form the “strategic triangle”.