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Buy this news, please? Potential business models for online news in the not-all-that- far-off future

Buy this news, please?

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This is a very short (5 minute) overview of some of the more prevalent ideas for how journalism could be funded in the future. I presented this at an Ignite event in fall 2009.

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Page 1: Buy this news, please?

Buy this news, please?

Potential business models for online news in the not-all-that-

far-off future

Page 2: Buy this news, please?

A Look Back

Subscriptions didn’t cover the cost of news content, only delivery method.

Advertising covered the rest. In 2000, 40% of the newspaper industry’s revenue came from print classifieds.

Page 3: Buy this news, please?

Why focus on online news?

Rising costs associated with print: Fuel, newsprint, postage, etc.

There’s new audiences out there.Well, that’s what I know best. So there.

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Who’ll be making news?

Citizen journalists Bloggers Online communities News start-ups

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“Old Media” Survivors

(Hey, why not?)

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No money, mo’ problems

6 theories for funding online news

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#1 - Advertising

If it ain’t broke, why fix it?

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Not just for print anymore

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Some sites profit from online ads (Gawker, Tech Crunch, etc.)

Those sites have less overheadSponsored contentTarget advertising to readers

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News as Non-Profit

That’s not an oxymoron

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News as Non-Profit

Largely paid for by grants, philanthropy

“Watchdog for hire”

Published in other news outlets

ProPublica, Common Language Project

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Pay Walls

Get behind the velvet rope

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Content pay walls

News accessed only by subscribersProbably most popular option with journalists

Ex: Newport Daily News, magazines

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Content pay walls

Pros Forces readers to subscribe

Limits unauthorized use of copyrighted content

Increases value of exclusive content

Cons Readers may turn to free competitors

Lost traffic, lost ad revenue

Subscriptions alone don’t pay the bills

Page 15: Buy this news, please?

“Freemium” Memberships

One easy payment of $19.95…

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“Freemium” Memberships

Offers most everyday content for free

Charging for access to exclusive content

May include extra discounts, perks not available to non-subscribers

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Who’s Doing it Well

Packer Insider at JSOnline.comESPN InsiderMen’s Health Personal TrainingWall Street JournalNiche content

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Micropayments

Readers determine value by paying for what they

want

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Micropayments

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Government Subsidy

No, really.

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Cons:Pros:

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Who knows?

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Mandy Jenkins

For more info go to manjamedia.com

Twitter: @mjenkins

Email: [email protected]