Category Archives: Media business models

The media services business model

When new technologies arrive, old systems are disrupted.  The digital revolution has had a profound effect on the American media landscape to the extent that we now have what are called  “news deserts.”  The decline of news organizations means there are far fewer professional reporters and photographers, and the lack of  independent journalism seems to create predicable results. 

New technologies have dried up old revenue streams. Classified ads that once made up a third of a publications income are now available for free (Craiglist, Facebook market, etc). Display advertising (also formerly one third of income)  is focused on customers already searching on Google or specifically targeted through Facebook.  And subscription revenue (the final third of income) has fallen off since it’s so easy to get news for free.

So what’s a community news organization to do? 

In the first place, let’s consider new sources of revenue that would not be in direct conflict with the public service mission of journalism. So: Asking for handouts from government won’t work. Nor will shaking down misdemeanor criminals through a mugshot publishing scam attached to expensive reputation cleanup (which is illegal in some states). 

In the second place, this new revenue ought to be something that complements journalism and improves the public sphere. What could journalists do that would help their community, increase the quality of public dialogue, and serve the media needs of individuals and groups? How could journalists serve a larger mission? Continue reading