There’s no doubt these are tough times for the media industry. Advertising revenue for both newspapers and television companies is substantially down with forecasts of a 20% reduction in one year is common.

In truth it is hard for these companies to survive and we’re witnessing both a haemorrhaging of jobs and significant closures of titles. And bizarrely we’re all able to watch this play out on the new media that was in line to save these venerable organisations. Employees can be seen blogging and twittering away on their last days at work.

And the cause of all this isn’t difficult to see. Despite the cuts the cost bases of these traditional media houses are too high. On-line advertising just hasn’t filled the gap caused by the decline in revenues and people simply don’t want to pay for news – be it on or off-line. And despite what the clever people tell you a ‘free’ economic model is never going to pay the bills.

But there’s an underlying issue here that goes far beyond this recession. And if we’re going to be honest with ourselves it needs to be addressed if we’re going to come out of it. Is the industry we work for meeting the needs of the audiences it serves?

The danger here is that our major media outlets are driven more by their cost models than the needs of their constituents. We’re too keen to distribute what we want to produce rather than what people will pay to receive.

And there lies the rub. Interestingly all our research shows that people – both personally and professionally – have a much greater need to communicate than they did before. And if we actually listen hard and work to meet that need then the economic model will follow.

Examples aren’t hard to find from iTunes through to journal subscriptions people will pay for what matters to them. So lets put our efforts into making sure that the ‘new’ media economy that comes out of this recession is fit for purpose and not just a re-hash of 19^th century ideals.