Date

Sat - 23.09.2017


revenue model

While most news publications seem to be facing financially touch times, the Economist is sailing on remarkably smooth waters. The publication has posted record profits over the last four years, Reuters reported, and contrary to the trend at most papers, its circulation kept growing during the second half of 2011.

As the Editors Weblog noted last November, more than 100,000 of the Economist's subscribers are digital readers - a notable achievement in convincing online readers to pay, although still dwarfed by the 1.49 million print readers.

But what is perhaps most remarkable about the magazine's growth is its rapid speed. Reuters noted that it took 161 years for the Economist to break the 1 million subscribers milestone, in 2004 (the paper was founded in 1843). Andrew Rashbass, Chief Executive of the Economist Group, told Reuters that he expected the Economist to reach 2 million readers within five years.

How has the magazine succeeded in maintaining such an impressive growth? Simply put, by having solid revenue model and offering content that is seemingly non-commercial by nature but for which people are willing to pay.

Author

Teemu Henriksson

Date

2012-02-20 09:35

by David Carr

Earlier this year, I wrote a column about the publishing industry's resistance to the terms Apple was imposing for subscriptions on the iPad. Soon after, an e-mail was followed by a phone call and Steve Jobs was on the line to straighten me out.

At the time, publishers were profoundly unhappy. Apple was not only proposing to take a third of the revenues, but it was also requiring that the transaction go through Apple, meaning publishers would get none of the consumer data that had such high value to advertisers.

Continue reading in The New York Times

Author

Anton Jolkovski

Date

2011-09-01 09:35

For years, American dailies have relied on a traditional business model in which about 80 percent of revenue comes from advertising and 20 percent from circulation. But now, according to a study conducted by Harvard University, the old rule of thumb has changed, The Guardian reported on Friday.

"We're moving into an era of 'reader revenue,' one that will roll up print subscriptions, single print copies, digital pay per view, digital subscriptions, all-access (across platform) subscriptions, memberships and more," said Ken Doctor, who leads the research.

As ad revenues have declined from $50 billion in 2000 to $24 billion in 2009, newspapers have increased their single copy and subscription prices and have started to look at other ways to gain revenue. The overall effect is greater circulation revenue, El Mundo informed.

Based on data from the second-quarter reports, the survey shows, for instance, that The New York Times revenue is 40 percent from circulation and 53 percent from ads. Other American publishers that are moving away from the old business model are:
- Scripps: Circ: 28 percent, Ads: 67 percent, Other: 5 percent
- Gatehouse: Circ: 27 percent, Ads: 71 percent, Other 2 percent

Author

Clara Mart

Date

2010-08-09 15:57

The Wall Street Journal pointed out today that newspapers are reaching the end of costs they can cut, and need to see increases in ad revenue. However, ad revenues continue to decline or merely stabilise, and Wachovia analyst told the WSJ that "it's increasingly likely that expense cuts, while significant, won't be enough to drive upside earnings."

So what are newspapers to do? Experts are increasingly recommending newspapers find many smaller revenue streams instead of counting on one large revenue stream to come back. These can include charging for premium content, as the Economist or Wall Street Journal does; developing niche print and online products like the Bakersfield Californian's Bakotopia or getting help from non-profit content providers, like ProPublica or Associated Reporters Abroad.

Another revenue stream newspapers are missing is e-mail, ClickZ reported in May. According to A Borrell Associates report, the e-mail market reached US$12.1 billion, but only a small portion of that, $848 million, is local - prime real estate for the newspaper industry.

Author

Leah McBride Mensching

Date

2009-11-04 16:02

New York's Newsday today announced that its online content will cost US$5 per week beyond the public service basics as of Wednesday. The move, which Newsday called "pioneering," follows a trend of paid content increasingly bandied about the news industry, Reuters reported today.

According to The New York Times, the Newsday paywall has limited revenue-raising potential: 75 percent of Long Island - the geographic region the newspaper chiefly serves - has been promised unfettered access to the Web site through a partnership with Optimum Online, the local cable company. Print subscribers retain unfettered access to online content as well.

Consequently, this particular paywall may test instead the strength of bundled marketing because Cablevision (NYSE: CVC) owns Newsday as well as Optimum Online, Long Island's leading Internet provider, paidContent observed today.

Author

Leah McBride Mensching

Date

2009-10-22 18:31

CNN's new iPhone app is creating quite a stir by following an old publishing model - charge a small fee ($1.99) and include ads, the Huffington Post reported yesterday. The commotion surrounding the app, released September 29, is caused by violating the existing expectation that free apps can include ads, but paid apps should not.

Other media outlets have had less luck charging anything for news content. The Associated Press, for instance, reports trying to charge $2.99 for a BlackBerry application this year. The download rate was less than a tenth of what the app usually attracts, said Jane Seagrave, the AP's senior vice president for global product development. Since dropping the fee, the AP has seen its downloads soar, she said.

"There were too many others that were available on the market for free," Seagrave said. For now the AP is trying to generate revenue from the app by selling advertising on it. She would not disclose how much revenue the AP is getting from mobile phone apps, according to the AP.

Author

Leah McBride Mensching

Date

2009-10-09 16:03

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