News cycle is a technical term used in the media industry to represent the time period between the successive reporting of news events. "A news cycle is defined as the amount of time that passes between the release of one edition of a news outlet and the follow up edition. The most common example of a new cycle would be the daily newspaper. Released early in the morning of one day, the next edition does not appear until roughly twenty-four hours later. That one-day period between the daily edition constitutes a news cycle. Originally associated with newspapers, the term is applied today in all forms of news distribution." (Tatum) The period of news cycle has come down drastically because of the immense development in the information sector. The reduction of news cycle period has its merits and demerit as well. Though live telecasts were useful for the public to receive information instantly, because of immense competitions between different news channels quiet often the public receives contradictory information from different channels which sometimes create problems even to the government and the administrations.
The main advantage of instant reporting trough live telecast of the incidents is that it gives the public enough preparation time to respond with the news. For example, the live telecast of the battle between Liberation Tigers of Tamil Elam (LTTE) and the Sri Lankan military has given the external world the exact picture of struggles experienced by the Tamil refugees. The world has succeeded in forcing the Sri Lankan government to declare cease fire after watching the live telecast of the injuries and death caused to the innocent people. The recent Mumbai terrorist attack also showed live by most of the domestic and foreign cable news networks'. The public got the clear picture about what was going on in Mumbai during that period instantly. Such instant information will make the public aware of the necessary precautions needed at the time of a terrorist attack.
"A number of markets rely strictly on broadcast network news for the early morning." (Tatum) For most of the markets it is essential to know the market conditions in order to prepare strategies for their daily activities. For example, the natural rubber prices in India will vary depends on the prices of rubber in the international market. The tire manufacturing companies will procure rubber from the domestic market based on the prices in the international market. If the domestic prices are higher than the international prices they will import rubber from outside and hence the domestic price of natural rubber in India will vary in accordance with the international price. The rubber growers in India need to know the international price variations in order to take decisions whether to accumulate the stock or to sell out the stock. They will watch media for knowing the price fluctuations in international market. Instant information always will be helpful for them in taking decisions.
Share market is another area in which the instant information is precious. The current economic recess was an unexpected one for many. Nobody expected that the American banking sector will be destroyed like this. Many people sold out their shares immediately when they receive the information about a possible collapse of American banking