Who Will be Funding Journalism in the Future?

Arne H. Krumsvik

Slideshare.net/arnehk

Who Will be Funding Journalism in the Future?

Data journalism not important? New media not able to fund journalism! Time to rethink revenue models

KRUMSVIK.COM

Who Will be Funding Journalism in the Future?

Data journalism not important? New media not able to fund journalism! Time to rethink revenue models

KRUMSVIK.COM

Digital competences: publishing first

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Executives (13)

News Workers (14)

In which part of the journalistic production process is digital competence mostimportant at the moment, if you are recruiting?

Analytical skills less important

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ExecutivesNews Workers

Send photos by e-mail from mobile phone Use spreadsheet to analyse information

6 = very important; 1 = not important

Concentrated newspaper ownership facilitates innovation

1. Newspaper executives in newspapers owned by media groups rated most digital competences significantly higher than executives from other newspapers.

2. However, the focus of innovation in newspapers owned by media groups tends to be on efficient multi-platform news production rather than the unique features of digital journalism on each publication platform.

3. The low priority afforded to computer-assisted journalism skills will have consequences for the priority of the development of advanced digital methods in investigative journalism.

Krumsvik, A. H. (2014). Newspaper Ownership and the Prioritization of Digital Competences. Digital Journalism. Published online August 12, 2014.

Who Will be Funding Journalism in the Future?

Data journalism not important? New media not able to fund journalism! Time to rethink revenue models

KRUMSVIK.COM

Conditions for Profitability

In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field.

“WHY OLD MEDIA WILL BE FUNDING JOURNALISM IN THE FUTURE”

• While profits in traditional media in various ways are challenged due to digitization, the conditions for profit in new digital media makes them unable to provide future funding of journalism organizations as we know them.

• However, digital media products will increase their strategic value in order to defend and expand the reach of traditional media players.

Krumsvik, A. H. (2012). Why old media will be funding journalism in the future. Journalism Studies, 13(5-6), 729-741

What is a business model?

• A description of the operations of a business including the components of the business, the functions of the business, and the revenues and expenses that the business generates.

investorwords.com

Osterwalder (2004)

Who Will be Funding Journalism in the Future?

Data journalism not important? New media not able to fund journalism! Time to rethink revenue models

KRUMSVIK.COM

Traditional Newspaper Revenue Models

• Subscription paper

• Single copy sold

• Free sheet

• 33 % circulation• 67 % advertising

• 75 % circulation• 25 % advertising

• 100 % advertising

Media Revenue Models

• Consumer payment– pay for use: single use, subscription– low cost for basic use; higher price for

extended use (upselling)• Advertising Payment

– pay for space/time– pay for action: leads generated, click through

• Sponsorship– pay for association with product/service

• B2B payment– licensing for use by other firms

• Subsidies– governmental, foundations or firm

Some firms rely on only one source of revenue; some combine the sources

Source: Robert G. Picard

KRUMSVIK.COM

Krumsvik, A. H. (2014). Newspaper Ownership and the Prioritization of Digital Competences. Digital Journalism. Published online August 12, 2014, doi: 10.1080/21670811.2014.941234.

Krumsvik, A. H. (2012). Why old media will be funding journalism in the future. Journalism Studies, 13(5-6), 729-741, DOI: 10.1080/1461670X.2012.664331.