Trends in News Revenue: The view from 30,000 feet (with a detour)
Jesse Holcomb Senior Researcher, Pew Research Center @jesseholcomb │pewresearch.org/journalism
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“Tell the truth and trust the people.” –Joseph N. Pew Jr.
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Advertising still dominates
• Nearly two-thirds of total news revenue
• Mostly print ($25 billion from daily newspapers)
• $13 billion from TV news
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But things have changed • Total news revenue in 2006:
$95 billion • Today: $63-$65 billion
• Audience and non-traditional revenue has grown as a share of the total
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Growth in audience revenue
• Newspaper circulation revenue up 5% in 2012 - First growth since 2003
• Retransmission fees on the rise - Now make up 2/3 of CNN U.S. revenue
• Public radio individual giving has grown - 2012 was second-biggest year since tracking began
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Is it sustainable?
• Pay TV Industry – Reached a peak - Shed 251k subscribers in 2013; first full-year loss
- Average expanded basic cable bill: $61 and rising
• Newspapers – Shrinking base of paying audience - Total weekday newspaper subs are flat at 44 million (down from 55 million in 2004)
- Newspapers raising rates; more paywalls (500 & counting)
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The nonprofit news landscape
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Nonprofit vital signs • Identified 172 digital
nonprofits around the U.S. (and 24 that closed between 2008-12)
• Heavy focus on state, metro coverage
• Just ¼ cover general interest; rest are investigative & topically focused
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The survey
• We secured participation from 93 outlets (54% response rate)
• Asked 47 questions on the following:
- Hard financial data (revenues totals and revenue streams)
- Staffing, expenditures and knowledge about business
- Attitudes about the economic environment for a nonprofit
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Nonprofit revenue streams
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Biggest challenge for nonprofits
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Revenue diversity: Critical, but grants still matter
“We have four employees, and I wish [reducing reliance on] foundation money was a
bigger problem for me.”
– Brian Wheeler, Charlottesville Tomorrow
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Outside the nonprofit world • $300 million in venture capital for
digital journalism in 2013
• Understanding the web + growing a young audience =
- Buzzfeed’s $60 million (native advertising) - Vice Media’s $175 million (video)
• 5,000 new jobs created by nearly 500 digital journalism organizations
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Hyperlocal also ad-focused Knight Foundation consultant Michele McLellan surveyed more than 40 for-profit, hyperlocal digital news organizations.
- Typical revenue: Just over $100k per year
- 9 out of 10 sites rely very heavily on advertising
- The rest: mix of donations, events, web services, merchandise
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But digital ad market dominated by tech
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Public news values
- Communities of interest
- Daily information needs
- Civic and community engagement
Trends in News Revenue: The view from 30,000 feet (with a detour)
Jesse Holcomb Senior Researcher, Pew Research Center @jesseholcomb │pewresearch.org/journalism