"This exploratory study [.] argues that in a continent where traditional media organizations are increasingly failing to hold power to account, not-for-profit organizations are leading by example, setting the agenda and constantly scrutinizing those in power. This study further looks at the motivati
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on behind the formation of three not-for-profit investigative organizations, their funding model, as well as their impact in their respective countries. The following organizations are being studied: South Africa’s Amabhungane Centre for Investigative Journalism; Nigeria’s Premium Times Centre for Investigative Journalism; and Botswana’s INK Centre for Investigative Journalism. This study also argues that although these organizations are playing a crucial role in keeping power in check, their overreliance on donor organizations may spell doom for some of them." (Abstract)
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"Journalist fellow Michael Leitner takes a deep dive into media organisations who already use data to efficiently acquire, engage and furthermore keep subscribers. Do we need automated paywalls, and what data do we need to use to keep readers interested? Key Insights: Dynamic paywalls are no silver
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bullet solution; If you want to keep your subscribers, watch their behaviour; Predicting churn is easy, preventing it is hard; Privacy regulation adds a big question mark; New players focus on acquisition, first movers bet on retention; Don’t try to hit everything with the machine-learning hammer; Know who, what, and why you’re tracking; The newsroom needs to understand your goals and metrics; Create flexible structures, so everybody can participate; Content is still king over software and tech strategy." (Publisher description)
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"When Wyborcza.pl was launched back in 2008, besides its quality, one of the best things about it was that its content was freely accessible. Once the paywall was up in 2012, the publisher had to find a way to present this content differently. According to Bregula, this was the most important task w
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hen they introduced the paywall: audiences had to understand what was unique about content if they have to pay for it. This could be more reporting on local news or expanded foreign news coverage. Moreover, Gazeta Wyborzca learned that readers tend to pay if the coverage is relevant to them." (Page 12) - "Implementing a paywall at a time of severe financial pressure saved the site from closure (or reliance of foreign donors) and allowed Malaysiakini to grow into a stable, popular and important media presence. Advertising revenue only overtook subscription revenue eight years after the paywall was implemented [...] Underlying the success of this paywall is Malaysiakini’s uniqueness in providing independent news within a partially unfree media context. As such, the case of Malaysiakini’s paywall must be understood within the movements of wider political and ideological processes." (Page 24)
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"Over the course of the past few years, crowdfunding platforms have made significant gains in art and technology, and more recently in the field of journalism. This article provides an overview of Rapport, a Finnish crowdfunding platform designed to allow a new approach for journalists to fund their
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work." (Page 91)
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"This report aims to identify, evaluate, and discuss models to finance investigative journalism in the EU. To provide a thorough evaluation, we developed a set of criteria that cover six areas to that the financial source may exert an influence from high to low degrees. Those are (1) Independence, (
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2) Quality, (3) Market Structure, (4) Processes, (5) Sustainability, and (6) Competitiveness. This set of criteria is applied to eight representative financing models that stretch from the classical publishing house over innovative financing to publicly supported media. The analysis reveals that only a mixture of models allows the market to benefit best from each model’s core asset. The diversity of finance models is a natural inhibitor of market concentration, when regulative interference is well dosed. Also, the pluralistic set of finance models supports independence in that power is spread over many market actors." (Executive summary)
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"Newspapers have come a long way since youngsters hawked the latest edition on street corners or metal boxes collected coins from anonymous visitors sucked in by a juicy headline. Today’s publishers need to be much more savvy about distribution, getting their arms around who their customers are, w
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hat makes them pay, and how to drive the right behaviors across a varied and complex online landscape. That means applying new technologies, adopting a “test and learn” way of thinking and going where the data leads them. Gone are the days when success could be measured by how many million unique visitors a website has in a month, especially when the vast majority of those come once, never to be seen again. In a few years time, the playbook may have changed. But keeping up with the fast-moving technology world is no longer an option, it’s an imperative for survival in the digital age." (Conclusion)
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"This report explores the recent trajectory of South African news with a specific focus on the economic sustainability of news media. Digital news consumption on mobile phone, and especially via Social Media on Smart Phones (SMSP) is fracturing audiences and reducing traditional sources of revenue.
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Printed newspapers in particular are starting to close and will be closing, this report suggests, at an accelerated rate, and while the past two or three years have seen a revival in important national-level political reporting, local and community media is increasingly losing the struggle to survive. Dozens of community papers have closed in 2015-2017, some after many decades of publishing. The Times in Johannesburg closed in January 2018. Many others will follow. In addition, as this report explores, much of the best current journalism produced in South Africa is currently financed by grants and donations from international foundations. The disruption of the news industry by digital technology has, in South Africa, been exacerbated by political manipulation of news media, including, as this report explores, a multi-pronged attack on media coordinated by what the report describes as the Zuma-centred power elite (after the 2017 PARI report “How South Africa is being Stolen”)." (Executive summary)
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"A crowdfunding platform for movies is an alternative way of refunding movie production costs. Usually, such platform combines several types of funding, including sourcing the Internet community to gather small private donations, that is, a revenue stream which is typically named “crowdfunding”.
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In this chapter, we apply the framework of business model analysis to review this crowdfunding mechanism. We describe the business model characteristics of several industry cases. Next, we decide whether such a crowdfunding platform can sustain itself and whether it is able to collect sufficient funds for the production of movies. We argue that the platform could obtain enough funds from the general public for smaller-budget productions such as short films or documentaries. A movie crowdfunding platform could also collect enough income from advertising to make itself sustainable. Charging a premium membership fee to movie producers would yield negligible revenues and is hence not advisable. Further, we find that the platform will never amass the needed production budget in a small market, especially for the production of long feature films. However, a crowdfunding platform could be more valuable when combined with other means of financing smaller movie formats and could perform a marketing purpose alongside its central crowdfunding role." (Abstract)
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"Este estudio es el primer estudio exhaustivo sobre el impacto que tienen emprendedores de medios digitales, los riesgos a los que se enfrentan, y si ha surgido un modelo de negocio viable para el periodismo digital independiente y de calidad. Para llevar a cabo esta investigación, SembraMedia, con
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el apoyo de Omidyar Network, conformó un equipo para estudiar 100 medios digitales de Argentina, Brasil, Colombia y México, 25 de cada país. Muchos de los investigadores eran emprendedores periodísticos, por lo que trajeron sus propias conexiones y una comprensión profunda de los medios en sus países. En entrevistas de dos horas a fundadores o directores, hicieron más de 130 preguntas sobre gestión, innovación, desafíos, oportunidades, tamaño y participación de la audiencia, e ingresos y gastos. Esta investigación tiene como objetivo ayudar a los fundadores de empresas de medios digitales a comprender mejor las tendencias, las amenazas y las mejores prácticas que los afectan. A su vez, diseñamos este informe para ayudar a los inversores, fundaciones y organizaciones periodísticas a apreciar el valor, la vulnerabilidad y el impacto de este ecosistema de medios de comunicación de rápido crecimiento. Aunque no compartiremos la información privada de cada medio, en este reporte se podrán ver los principales resultados y hallazgos." (Sumario)
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"This article analyses three crowdfunded media organizations in three different countries – Krautreporter (Germany), Direkt36 (Hungary), and Colta (Russia). Using qualitative in-depth interviews, it demonstrates that journalism practices in a crowdfunded newsroom are very different from those in o
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ther media. The study concludes that direct funding from the audience is financially unstable; it affects journalists’ professional self-perception, changes their relationship with the audience and generally increases the amount of work that journalists have to do. At the same time, participants claim to be more satisfied with their work now than they ever were before." (Abstract)
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"The accelerating digitalisation of the media landscape has released enormous forces of change in the Nordic advertising markets. The overall impression from the results of this study is that the sweeping changes digitalisation is bringing about are not just undermining the business model on which t
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he majority of commercially financed media companies in the Nordic countries have based their journalistic operations, they are also making it more difficult for the same companies to find a sustainable business model in a digital environment. The battle for advertising revenue is now an unfair fight. Media companies at the national and local level are finding it increasingly difficult to compete with the advertising solutions that global digital actors such as Google and Facebook are bringing to the market. The latter are not just more sophisticated than the domestic alternatives, they are also significantly cheaper. The results of this study indicate unequivocally that the differences in competitiveness between Nordic and non-Nordic advertising platforms will be exacerbated as digital advertising investments grow." (Executive summary)
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"This report looks at ten factors that have altered the media marketplace and that pose challenges to national and local news producers and their sources of revenue. They include ways in which governments interfere in media markets; changes in the structure of news distribution and audience behavior
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; and the way these changes have transformed how advertising media is bought, sold, and distributed. It then examines the key engagement metrics taken from a sampling of media development partner organizations to offer thoughts on how well these news producers are prepared to compete for audiences and revenue. Finally, it offers thoughts about the implications of these issues for media development organizations." (Introduction, page 2)
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"For journalists promoting the free flow of information in repressive or restrictive media environments, the issue of financial sustainability is complex. Both media in exile (out-of-country news outlets feeding independent information into the country of origin) and news outlets in restrictive news
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environments (in-country providing counter-information) exist in flawed market situations and often rely on grant funding. This is the first academic study of the revenue streams of these media, providing scarce empirical data and a typology of funding structures of these media. This article examines three main revenue categories: grant funding, earned income and donations. The major factors influencing revenue streams compared to online media start-ups in open markets are discussed. The article finds significant barriers to revenue creation and identifies the need for alternative approaches, particularly partnerships, to promote economic resilience for media under threat." (Abstract)
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"El presente documento es un analisis descriptivo del sector de crowdfunding – financiamiento mediante una multitud de donantes por medio de Internet - en América Latina. Su objetivo es conocer el tamaño, las caracteríticas y la dinámica de las plataformas latinoamericanas de crowdfunding. Par
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a ello, se realizó una encuesta a los operadores de dichas plataformas, entrevistas con administradores de plataformas y un análisis de los datos publicados en los portales web de las plataformas sobre la dinámica de las campañas y los inversionistas. El sector en América Latina ha tenido un crecimiento importante desde 2009 a la fecha. Los países que cuentan con un sector más desarrollado son Brasil, México y Chile. Se encontró que la internacionalización de los portales es todavía limitada y, por lo tanto, las plataformas lationamericans tienen aún la mayoría de fundraisers en el mismo país en donde operan. El análisis de datos ofrece una información detallada sobre los rasgos distintivos de cada uno de los cuatro modelos de crowdfunding analizados (donaciones, recompensas, deuda y acciones). El análisis de las entrevistas realizadas informa sobre los detalles de los modelos de negocio y la forma en que las plataformas lationamericanas capitalizan oportunidades y enfrentan retos inherentes a la dinámica de este tipo de plataformas. Finalmente, se describen los principales avances y retos en distintos países de América Latina en la promoción de este sector." (Resumen)
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"From April 28, 2009 to September 15, 2015, 658 journalism-related projects proposed on Kickstarter, one of the largest single hubs for crowdfunding journalism, received full – or more than full – funding, to the tune of nearly $6.3 million. These totals – both in terms of number of projects a
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nd funds raised – trail nearly all of Kickstarter’s other funding categories, from music, theater and film to technology and games. Nevertheless, the number of funded journalism projects has seen an ongoing increase over time and includes a growing number of proposals from established media organizations." (Pages 2-3)
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"Our remit was to look for innovative media outlets that are producing high-quality news, that are technologically innovative and that might actually survive financially. Accordingly, we spent three months interviewing media innovators around the world and reading what others have written on the sub
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ject. This report is divided into seven sections: 1) this introduction, 2) our main findings, 3) two sets of recommendations, one for the media development community and another set for people starting a media outlet, 4) an “Innovation Index” listing practices that we found around the world, 5) a description of our methodology, 6) a review of practitioner reports we read, 7) write-ups describing 35 media outlets, based on interviews we conducted [...] We were inspired and encouraged by what we saw. All over the world, independent media outlets are innovating and overcoming obstacles. Globally, start-ups are demonstrating the drive to take risks for the sake of a good idea. The challenges facing these outlets—and the innovations employed to tackle them—broadly fall into four categories: editorial, business, distribution and security. Operating with agility, media start-ups are finding creative ways to gather and disseminate information. In India, Gram Vaani uses a mobile phone social network to connect the rural poor and circumvent legislative prohibitions on radio broadcasting. In Zimbabwe, The Source survives in the repressive media climate by focusing on business journalism. Oxpeckers in South Africa uses geomapping to report on rhino poaching. Crikey in Australia has built a successful business model based on soliciting tips and scandal from the same audience it reports on and Kenya’s African SkyCAM deploys drones to avoid negotiating with police for access to disaster zones [...] Instead of finding a clear model for what works, we found confirmation of many things we knew or suspected. Independent media outlets vary in size, ambition and model. Few have fully succeeded, while many do one thing well, which typically reflects the founder’s particular strength—usually in journalism or technology [...] Most media outlets we found are small, run by a few full-time staff supplemented by volunteers and freelancers, and supported by a combination of grants, donations and haphazard business endeavors. The leaders at most organizations we interviewed were motivated by a desire to produce high-quality journalism rather than meet particular financial or audience goals." (Executive summary, page 5-7)
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"Malaysiakini, an online news platform launched in 1999 in a country of continuous and pervasive media controls, has taken advantage of a precarious space allowing comparatively free journalism on the Internet. Its success in Malaysia is two-fold: First, it has increased demand for reliable and inde
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pendent news, along with support for human rights, open government, and free expression; second, it has built a viable business model that enables it to employ about 40 reporters, publish in four languages, and expand into video products and business news." (Executive summary)
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