
Business models for multimedia journalism
An article in the Herald Sun boasted News Corp’s 57.2% profit lift, with the Wall Street Journal’s pay to view website gaining large amounts of profit with an 80% jump in online subscriptions.
Although, –unlike a newspaper– most people don’t pay to read daily online news, there are many other ways news corporations can reap profits. News organisations are still experimenting with and determining whether it is possible to fund investigtive journalism through an online business model.
Giving something away for free no longer means that money can’t be made. There are many different parties involved in the web of moneymaking, compared to the standard seller and buyer business model.
News sites generally feature a number of banners and listings on every page, whereby the advertising organisation pays the host site, not only for the time featured but per click, per view, per lead or per customer generated. Selling products and services on its website, brand licensing, streaming audio/visual advertising and selling information about consumers are also among the many methods adopted to generate profit.
Therefore, it means the corporations that attract the most traffic to their site, have more chance of making big profits. As mentioned above, news corporations can charge website subscription fees and it’s also common for publications to charge to access archive material.
In today’s market, consumers are a sucker for the word ‘free’ and generally there is a immense difference between ‘free’ and ‘cheap’. For example, it would be likely to see a substantial difference in online news hits if publications started advertising ‘cheap news’.
News corporations have seen the prominence of online news in this era. Therefore, publications will continue to experiment with making profit while evolving this medium.
It is important to establish a way to make a profit, before quality journalism is wiped out. This debate has heightened since Fairfax’s job cuts which are fashioned around the evolving news environment. Brownyn Clune, creator of Australian citizen journalism site PerthNorg argues that those sacked should get over it and join the new world of individualistic journalism. (http://www.bronwenclune.com/2008/09/01/a-letter-to-love-striken-fairfax-journalists/) But critics argue it is Fairfax’s responsibility to adapt to the new environment, while maintaining quality investigative journalism.
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