11 May Bussiness Models 2024
We have included this as a business model this year, although the issue overall remains contentious. The battle is still very much brewing between The New York Times and OpenAI over the use of the publisher’s data and archives to train its models. A handful of other digital news organisations like The Intercept have also stepped in with their own lawsuits. Meanwhile, several publishers around the world have moved to stop OpenAI’s crawlers from accessing their content to inform its answers. Yet, a handful of other publishers have moved ahead with forging content partnerships with AI companies, most notably OpenAI.
KEY EXAMPLES:
At the end of 2023, OpenAI and German media giant Axel Springer announced an agreement that will allow ChatGPT to summarise news articles from Axel Springer’s prestigious publications, such as Politico, Business Insider, Bild, and Welt, including some content typically behind paywalls. A statement said OpenAI will compensate Axel Springer for access to its diverse news content, which ChatGPT will then be able to succinctly summarise for users, providing attributions and links to full stories.
OpenAI will also be able to use Axel Springer news content to train ChatGPT, adding a knowledge base of vetted journalistic sources amid ongoing concern about AI’s ability to provide accurate information. The companies said in a statement that the agreement will enhance the AI experience for customers while “creating new financial
opportunities that support a sustainable future for journalism.”
Associated Press: OpenAI and The Associated Press (AP) have entered into a licensing agreement, enabling OpenAI to use part of AP’s news archive for AI training, while AP will tap into OpenAI’s technological expertise. This collaboration is strategic for OpenAI, securing a valuable resource for improving its AI models amidst growing legal challenges over data access. According to Nick Diakopoulos, a professor at Northwestern University, such deals ensure legal access to essential training materials, an important move as the legal landscape around AI and data use evolves. The AP, while not currently using generative AI in its news reporting, has a history of incorporating AI for tasks like automating earnings reports and sports recaps. This deal signifies a deeper dive into AI, allowing AP to explore new applications of the technology, including enhancing its AI-powered image archive search. The partnership is seen as potentially impactful beyond the immediate benefits to both organisations, given AP’s extensive network and influence in the news industry. This could lead to broader adoption and integration of AI technologies across the media landscape, reflecting the significant role such collaborations play in shaping the future of news production and distribution.
Le Monde and Prisa Media: OpenAI recently announced that it has signed contracts with Le Monde and Prisa Media to bring French and Spanish news content to ChatGPT. The company said in a blog post that the partnership will put the organisations’ news coverage — from brands including El País, Cinco Días, As, and El Huffpost — in front of ChatGPT users, as well as contribute to OpenAI’s ever-expanding volume of training data. From OpenAI’s blog: “Over the coming months, ChatGPT users will
be able to interact with relevant news content from these publishers through select summaries with attribution and enhanced links to the original articles, giving users the ability to access additional information or related articles from their news sites … We are continually making improvements to ChatGPT and are supporting the essential role of the news industry in delivering real-time, authoritative information to users.”
THE BOTTOM LINE
It isn’t quite clear how much OpenAI is paying each publisher for these deals, but some estimates can be made from recent reporting. A report from The Information revealed that OpenAI is offering publishers between $1 million and $5 million a year for access to their archives, aiming to enhance its AI models. Although details about the Shutterstock deal remain unclear, OpenAI appears to be investing between $4 million and $20 million annually on licensing articles from news organisations. Despite
these figures being relatively small for a company like OpenAI, which reportedly boasts a war chest of over $11 billion and annual revenues exceeding $2 billion, it could be substantial enough to potentially edge out AI rivals also pursuing licensing agreements.
CHALLENGES AHEAD
At the moment, the news publishing world seems split on a combination of offensive and defensive strategies when it comes to dealing with AI companies. As the conversation and narrative evolve on the threats to business models for news, it may be important to calibrate which side to position on.
Subscriptions are the key business model that should bring in about 40 percent of revenue if you want to build a sustainable media business. But while reader revenue remains a crucial aspiration for publishers, it is increasingly clear that navigating the evolving media landscape requires adaptability and a multi-faceted approach beyond relying on paywalls.
WE WANT TO POINT TO TWO RECENT NEWS ARTICLES:
1) In early February this year Axios put out a piece called “The Great Subscription Reversal” from the everexcellent Sara Fischer. Though largely U.S centric, the piece highlighted some key concerns.
“A strategy focused mainly on subscriptions requires upfront spending on premium content. That takes time to pay off — and many publishers don’t have the cushion for that in the current ad slowdown,” Fischer notes.
“At the same time, many outlets have learned that simply throwing a paywall up over your previously free content doesn’t work either. It throttles ad revenue without capturing enough new subscribers.”
2) Semafor’s Ben Smith sat down for a long-ranging chat earlier this year with Sir Will Lewis, the new CEO of the Washington Post. He had some very interesting views indeed on the future of subscriptions: “My hunch is that the existing model is creaking. We went from an advertising model to a subscription-based model, and that subscription-based model is now waning and then will enter a more significant period of decline.”
He goes on: “There’s very positive evidence of how news can be accessed and paid for in more innovative ways. There are day passes that are successful, there’s week passes, there are models like the Guardian where you can make donations. So there’s a whole new generation of paying user concepts. I’m pretty excited about it. I think it’s newsroom 3.0.”
THE SUBSCRIPTION ROLLERCOASTER:
So where do we stand now with subscriptions? A quick recap: Prepandemic, subscription revenue was on a steady rise, particularly for established publications. However, the pandemic surge in subscriptions, fuelled by heightened news interest, faces new challenges as economic pressures force consumers to prioritise essential spending. Coupled with a slowdown in digital ad spending over the last year, lay-offs in various news organisations and the looming threat of AI, it’s a pretty challenging time for the news industry that will require some key strategic shifts in response.
BEYOND THE PAYWALL: EXPLORING OPTIONS
While hard paywalls may not always be the answer, publishers can explore various options:
Membership Models: Reframe reader payments as “memberships” offering exclusive benefits and fostering a sense of community beyond just access to content.
Strategic Ad Blending: Integrate advertising thoughtfully alongside a subscription-first strategy, leveraging first-party subscriber data to offer highvalue ad placements.
Content Bundles: Offer bundled subscriptions encompassing diverse content categories, like The New York
According to PwC and WANIFRA newspapers globally made $34 billion from advertising last year but $49 billion from circulation (both print and digital). While print revenue streams are declining, publishers expect their digital consumer revenues to grow two to five times faster than digital ads over the next three years, depending on
the world’s region, per FT strategies, Google and an INMA Survey.
Across 33 major markets, the proportion of top online news outlets charging for content has increased substantially, from 26 percent in 2018 to 41 percent in 2022. In the most recent survey by Oxford’s Reuters Institute for the Study of Journalism, a higher proportion of news executives said subscriptions were important (a rise from 74 percent in 2020 to 80 percent in 2024) than advertising (a decline from 81 percent in 2020 to 72 percent in 2024). Times’ combination of news, cooking, and gaming content. This strategy can increase subscriber value and attract new audiences.
CASE STUDIES IN ACTION:
Mail Online: Facing declining ad revenue, they launched a freemium paywall targeting their UK audience, offering limited free access with a subscription model for in-depth and exclusive content. This approach leverages their high direct traffic to potentially attract paying subscribers.
The Washington Post: Partnered with the meditation app Headspace, aiming to attract new subscribers interested in wellness content beyond core news offerings. This demonstrates the value of expanding content offerings to broaden appeal.
Axios: Launched “Axios Pro”, a B2B subscription service offering in-depth journalism on various topics, attracting over 3,000 paying subscribers within its first year. This case highlights the potential of niche, premium content for specific audiences.
UNTAPPED POTENTIAL AND ROOM FOR GROWTH:
While reader revenue gains traction, data suggests significant untapped potential:
● Market penetration of digital-only news subscriptions remains low worldwide, with a median of only 0.9 percent of households subscribing in national markets.
● Success stories like Le Monde and Corriere della Sera demonstrate the potential for higher penetration, exceeding 2 percent in their respective markets.
● The New York Times, despite having the most digital subscriptions globally, still only reaches 0.8 percent of U.S. households.
THE ROAD AHEAD: A MULTI-PRONGED APPROACH
Declining ad revenue, coupled with the challenges of the current economic climate, underscores the need for a multi-faceted approach. By embracing innovative approaches like:
● Freemium paywalls to balance free access with premium content
● Strategic ad integration that respects subscribers while generating revenue
● Content bundles and expanded offerings to cater to diverse interests, and
● Niche, premium content for specific audiences, publishers can create a more resilient and sustainable business model, ensuring the continued production of high-quality journalism while adapting to the evolving media landscape.
However, the potential for reader revenue growth is undeniable. Industry expert A.G. Sulzberger, publisher of The New York Times, emphasises the untapped potential, highlighting that the current subscriber base is smaller than many streaming services. This underscores the need for continued innovation and audience engagement to unlock the full potential of paid content and secure the future of journalism.
The “cookiepocalypse” has arrived. In late 2024, Google Chrome,the dominant forcein web browsing, isset to start phasingout third-party cookies. This longanticipated
move marks a significant shift in the digital advertising landscape, presenting challenges and opportunities for publishers.
MOVING BEYOND:
Third-party cookies, once the lifeblood of programmatic advertising, allowed advertisers to track user behaviour across the web. However, concerns about privacy and data exploitation led to their demise. While letting go of a familiar model can be daunting, it presents an opportunity to embrace a more sustainable and transparent approach.
OWNING YOUR AUDIENCE CONNECTION:
The key to navigating this new landscape lies in first-party data, information directly collected from your audience. This includes email addresses, subscription preferences, and on-site activity. Unlike the anonymised and aggregated data of third-party cookies, first-party data provides valuable insights into your readers’ true interests and needs.
THE PARADIGM SHIFT:
Many argue that media companies’ reliance on programmatic advertising was a strategic misstep. This approach, as outlined by industry analysts Simon Owens in his Substack newsletter:
Devalued quality content: The focus on display ads, often ignored by users, undermined the value of valuable journalism.
Fuelled ad fraud and low-quality content: The focus on scale prioritised low-cost clicks over genuine user engagement.
New Priorities: Instead of chasing elusive scale, publishers must focus on building trust and fostering relationships with their audience. This requires:
Offering valuable content: Prioritising high-quality journalism and engaging formats that genuinely capture readers’ attention.
Collecting and utilising first-party data responsibly: Building a transparent data collection strategy that respects user privacy while providing alue to readers
and advertisers.
AHEAD OF THE GAME:
Several publishers have already begun pioneering this shift. Here are a few examples:
The New York Times: Has launched a proprietary first-party data platform, offering advertisers unique and targeted audience segments based on subscriber and user data. The company launched its first-party data platform in 2021, but it has been collecting first-party data for years, ever since it launched its digital subscription strategy in 2011. News Corp: Introduced “News IQ”, a platform utilising its collective first-party data to provide precise and measurable advertising solutions for brands.
South China Morning Post: The Hong- Kong-based publisher launched its firstparty data platform Lighthouse in 2019 to better understand its users and provide advertisers with the tools necessary to target audiences with greater precision.
ALSO TRY:
Publishers are increasingly tapping into zero-party data, information users consciously share via preferences, quizzes, polls, and surveys. This empowers readers to control what data they share and offers valuable insights for content creation and audience segmentation.
BuzzFeed, for example, utilises interactive quizzes and polls to collect zero-party data about its audience’s interests. This allows them to tailor content recommendations and partner with brands for targeted advertising campaigns based on user preferences rather than inferred data.
FOR SMALLER PUBLISHERS:
Concerned your first-party data might not be large enough to attract advertisers? Consider these tactics:
Building Alliances: Smaller publishers are forming alliances to enhance the appeal of their first-party data to advertisers. By pooling data with others, they can create larger, more desirable audience segments. For example, regional news outlets might merge their data, offering advertisers a wider audience with specific interests, all
while prioritising user privacy. A notable initiative is OneLog, a collaboration among Swiss media companies.
Leveraging Lookalike Modeling: Smaller publishers are using a technique called lookalike modelling to get more value out of their first-party data, which is information gathered from their own sources like website interactions and reader behaviour. This method starts by analysing the data on their current audience to understand common interests and behaviours. For example, if they notice many readers are interested in eco-friendly living, they identify these interests as key characteristics.
THE PROCESS INVOLVES SEVERAL STEPS:
Collect and Analyse First-Party Data: Publishers gather and examine data to find common traits among their readers, such as preferences for certain topics.
Create Audience Segments: They segment their audience based on these shared characteristics.
Use Lookalike Modeling Tools: With specialised software, publishers identify new potential readers who share similar interests with their current audience but
haven’t been reached yet.
Expand Audience and Targeting: The publisher then targets these new individuals with content and ads, aiming to attract them as regular readers.
Collaborate with Advertisers: This expanded, relevant audience is also offered to advertisers, allowing them to target these new segments with confidence, knowing their ads are more likely to engage users with a proven interest in their products or services.
BUILDING BRIDGES OF TRUST:
Building trust and encouraging data sharing remains a challenge. Recent reports like the 2023 Reuters Institute Digital News Report show that only 32 percent of respondents trust news websites with their data. This highlights the need for ethical and transparent practices.
Hosting events is a powerful strategy for publishers to not only engage audiences but also generate significant revenue. This is a business model that seems to be making
a strong comeback. In the years preceding Covid-19, we often noted at INNOVATION that when executed effectively, with strategic partnerships and a skilled team, events can contribute up to 20 percent or more to a publisher’s bottom line. The pandemic years inevitably took a toll on this revenue stream, but with publishers learning to effectively pivot to add in virtual and hybrid events to the mix, this revenue stream is making a significant comeback with a host of publishers vastly expanding their portfolios.
THE RISE OF VIRTUAL AND HYBRID EVENTS:
Over the two pandemic years, publishers experimented with converting in-person events to successful online experiences. This led to a unique challenge:
reintegrating virtual offerings back into the physical event landscape as health protocols allowed in-person gatherings to resume.
KEY CONSIDERATIONS FOR THE FUTURE OF EVENTS:
Evolving audience expectations: As Dan Macsai, executive editor of Time, observes, “People have fundamentally recalculated why they attend events. The standards have gotten higher.” Events need to offer unique value propositions that go beyond what virtual experiences can provide.
The power of in-person connection: the desire for networking and face-toface interaction presents an opportunity. Events can capitalise on this by emphasising the benefits of in-person connection to justify premium ticket prices, while hybrid or virtual sessions can also try to incorporate this element of networking. ThePublisher
as an Event Organiser
BUSINESS MODELS – 2024 EXAMPLES OF SUCCESS:
Semafor: Launched in 2022, Semafor generated a remarkable 30 percent of its first-year revenue from its events arm, SemaforX. A big part of this success is attributed to its focus on experiential events and strategic use of its founders’ experience in event planning–they hosted nearly 12 events prior to the official launch of the newsroom. In 2023 the publication also successfully piloted an expansion of its Semafor Media brand into live events and planned to hold 40 global events.
Time: With established events like the Time100 Gala and Time100 Talks, Time has a thriving events business. During the pandemic, they launched virtual events and expanded their portfolio upon returning to in-person gatherings. Time anticipates a 55 percent year-over-year growth in event-based revenue, doubling their event count from 10 in 2022 to 18 in 2023, according to reporting from Digiday. Last year, the company’s events business crossed the $10 million mark for the first time with all of the events revenue coming from brand sponsorships.
Vox Media: In 2023, Vox Media aimed to host over 100 events, marking an 18 percent increase from 2021, according to reporting from Adweek. This growth underscores their commitment to experiential offerings and indicates a strategic emphasis on events within their publishing model.
CHALLENGES AND THE ROAD AHEAD:
The key challenge now lies in seamlessly blending virtual and in-person elements to create an enriching and valuable experience for attendees. Publishers need to address the following issues.
Fluctuating ticket prices: The shift from free or discounted virtual events to premium in-person experiences requires careful pricing strategies that balance value with audience expectations.
Last-minute purchasing habits: The pandemic conditioned consumers to purchase tickets closer to the event date. Publishers need to develop effective marketing strategies to encourage early registration.
As the digital landscape grows ever more saturated with content and options, publishers are increasingly exploring membership models to foster deeper connections with readers and diversify revenue streams. While subscriptions remain a crucial strategy, overcoming “subscription fatigue” and catering to diverse reader preferences sometimes call for a more nuanced approach.
BEYOND THE PAYWALL:
While paywalls may seem like an easy solution, they can alienate certain segments of the audience. Justin Eisenband of FTI Consulting aptly describes them as “blunt force instruments”, and it’s a phrase that we keep repeating because it only grows in relevance. We’ve covered earlier, of course, the sentiment in some markets that the subscription strategy might see major reversals. As an antidote, membership models offer a more inclusive and interactive approach.
DEFINING MEMBERSHIP:
The Membership Puzzle Project (MPP) offers a valuable framework:
A social contract: Members contribute (time, money, expertise) to support journalism they believe in, while the publisher offers transparency and opportunities for impact.
Editorial orientation: Readers become active participants, engaging in two-way knowledge exchange with journalists.
Identifying champions: Members are key collaborators in the publisher’s quest for impact and sustainability.
Free access advocacy: Many members believe in open access and advocate for exposing journalism to a wider audience.
This framework highlights membership as more than just a financial transaction; it’s about building a community invested in the publication’s mission.
BUILDING A MEMBERSHIP PROGRAM:
The MPP defines three key components: Membership strategy: Defines the role of members in supporting journalism and how the organisation envisions member
integration.
Memberful routines: Processes that connect members to the newsroom and its content.
Membership program: The platform where members interact and manage their contributions.
SUCCESSFUL EXAMPLES:
Tortoise Media (UK): This “slow news” outlet boasts over 100,000 members, half of whom are funded through sponsored memberships, ensuring diversity of voices. Their “ThinkIn” events foster discussion and co-creation of editorial viewpoints, strengthening audience relationships.
Gazeta Wyborcza (Poland): Their premium membership “Wyborrcza.pl Club” offers subscribers exclusive access to editorial team interaction and online meetings. This fosters a sense of community and belonging, leading to a subscriber base of over 280,000. The underlying principle here is of a value that exceeds mere published articles. Notably, another feature of the Club package is the opportunity to pass on two additional subscriptions to fiends or relatives, and it is the Club’s most used feature, taken up by over 70 percent of members. These examples highlight how membership models can nurture dedicated communities and establish a stable revenue source beyond the conventional subscription methods. Adopting a similar, yet distinct strategy, several publishers are now implementing tiered subscription models. These models stand out by offering a variety of subscription plans, each with unique features and levels of content access. This approach empowers readers to select a plan that aligns with their interests and budget, making subscriptions more customisable and engaging.
EXAMPLES OF TIERED SUBSCRIPTIONS:
The Ken: Recognised as a leading business news outlet, The Ken utilises a tiered subscription model in India and Southeast Asia, providing daily, sector-specific articles and in-depthnarratives exclusively to its subscribers. The Ken offers a range of subscription options, from a basic plan that includes access to India-specific content and complimentary podcasts, to a comprehensive plan covering all content across different sectors and regions. The Information: Known for its thorough coverage of the tech industry, The Information embraces a tiered subscription approach as well. Its subscribers have access to a spectrum of content, from daily tech news digests to detailed data reports and exclusive events.
ADVANTAGES OF TIERED SUBSCRIPTIONS:
Customisation and Choice: This model caters to a broad audience spectrum, from casual readers to professionals in search of detailed analyses, by offering varied
subscription options. Increased Engagement: Offering different access levels motivates subscribers to engage more fully with the content, and may lead to subscription
upgrades as their interest deepens. Community Building: Similar to membership models, tiered subscriptions help cultivate a sense of community among subscribers, particularly when higher tiers include exclusive events or direct interactions with journalists.
In the digital age, many media companies are no longer solely content creators, but also technology innovators. By leveraging their in-house expertise, they’re developing
innovative software solutions and offering them to other organisations within the industry through IT licensing. This approach presents a compelling opportunity to generate additional revenue streams beyond traditional advertising and subscriptions.
BUILDING BRAND PRESTIGE AND INDUSTRY LEADERSHIP:
Successfully venturing into IT licensing can significantly enhance a publisher’s brand image. It establishes them as thought leaders and innovators, actively contributing solutions to the broader media ecosystem. This can attract new talent, partnerships, and enhance overall brand prestige.
BALANCING INNOVATION WITH PROFITABILITY:
While the potential for revenue and brand recognition is exciting, navigating this space requires careful consideration. The recent developments with The Washington Post’s Arc XP, a leading light for this business model example, highlight the need for a balanced approach.
THE WASHINGTON POST AND ARC XP: A CASE STUDY
Initial Promise: Arc XP, a cloud-based digital platform for content management, subscriptions, and advertising, exemplified the potential of IT licensing and was emblematic of the new revenue streams that The Post looked to pioneer after its takeover by Amazon founder Jeff Bezos. It powered over 1,900 sites across the world, reached over 1.5 billion users and generated significant revenue for the Post.
Shifting Strategies: In 2022, the Post declined offers to sell Arc XP despite concerns over profitability as reported by the Wall Street Journal, choosing to
invest $50 million instead. However, in August 2023, the Post laid off staff from Arc XP, including top marketing, program management, and product design positions, according to reporting from Semafor. This unexpected move underscores the challenges of navigating IT licensing, particularly regarding longterm profitability and strategic direction.
MORE EXAMPLES:
The Globe and Mail: This Canadian publisher developed Sophi, an AIpowered software solution that optimises content placement, automates print layouts, and personalises paywalls. Sophi has driven significant subscription success for The Globe and Mail and is being adopted by other publishers, demonstrating the potential for broader industry impact.
Quintype (India): Partially owned by Quintillion Media—the parent company of the digital news platform The Quint, Quintype is a leading digital and mediatech/
AI-focused company in India. Their flagship product, Quintype Technologies, is an AI-powered newsroom growth platform offering content creation,
distribution, and monetisation solutions to publishers worldwide. Unlike Arc XP, Quintype goes beyond typical IT licensing by providing a complete ecosystem for digital media success, catering to a wider range of publisher needs.
KEY CONSIDERATIONS FOR SUCCESS:
Market Needs and Value Proposition: Identifying specific needs and challenges faced by other publishers and creating solutions that demonstrably address them is crucial.
Balancing Costs and Revenue: Carefully evaluating development and maintenance costs against potential revenue streams is essential for long-term financial viability.
Scalability and Adaptability: Building solutions that cater to a diverse range of publishers, both in size and needs, increases marketability and future-proofs the model.
In today’s evolving media landscape, publishers are increasingly leveraging their brand reputation zas a valuable asset. By licensing their brand to related products and services, they can unlock new revenue streams beyond traditional advertising and subscriptions. This approach, known as brand licensing,allows them to connect with audiences in new ways and cultivate a loyal community.
DIRECT-TO-CONSUMER STRATEGIES:
The rise of direct-to-consumer (D2C) approaches signifies a growing trend. Publishers are leveraging their brand recognition to develop various D2C initiatives, including:
Branded Events: Hosting conferences, workshops, or festivals related to their core content areas.
Consumer Products: Creating or licensing their brand for merchandise, apparel, or lifestyle products, fostering brand loyalty and generating additional revenue.
Unlocking the Power of Data:
First-party data plays a critical role in successful brand licensing. By analysing audience demographics, preferences, and purchasing habits, publishers can:
Identify high-potential licensing opportunities: Understand which product categories resonate most with their audience.
Develop targeted product lines: Tailor offerings that cater to specific audience segments and interests.
Form strategic partnerships: Collaborate with brands that share their target audience and brand values.
CASE STUDIES:
Forbes: The renowned business magazine has witnessed a 40 percent surge in consumer revenue, partly attributed to a strategic focus on merchandise. From apparel to baby clothes, Forbes capitalises on its brand recognition to connect with fans beyond traditional media consumption. The Publisher as a Brand Licensor
Hearst Magazines: Partnering with Idle Group, Hearst has launched branded mattresses based on popular publications like “Country Living.” This initiative leverages first-party data insights, revealing a reader base willing to invest in premium products. Hearst plans to expand this strategy to other publications like “Women’s Health” and “Men’s Health”, demonstrating the potential of datadriven brand licensing.
Meredith Corporation: known for publications like Better Homes and Gardens and Southern Living, the media giant has established itself as a leader in brand licensing. They boast a diverse portfolio of licensed merchandise across various categories, including home décor, food products, and gardening supplies. Their success highlights the potential for publishers to build successful brand extensions beyond traditional media.
NAVIGATING THE CHALLENGES:
While brand licensing offers exciting possibilities, careful consideration is essential:
Maintaining Partner Relationships: D2C efforts should be strategically designed to avoid conflicting with existing advertising partnerships.
Product Selection and Partnership Choice: Meticulous research is crucial to identify suitable products and reliable partners to ensure success.
THE PATH AHEAD:
As publishers continue to invest in and refine their data collection and audience segmentation capabilities, D2C strategies like brand licensing are poised to become an increasingly competitive landscape. However, the future of brand licensing potentially extends beyond traditional merchandise and experiences, with emerging technologies like Non-Fungible Tokens (NFTs) adding an intriguing extra dimension.
In a world of insatiable curiosity and continuous learning, publishers are leveraging their established reputation as knowledge brokers to offer engaging educational experiences. Fuelled by the success of platforms like MasterClass and Coursera, publishers are strategically converting their journalistic expertise into educational
offerings.
INNOVATIVE COURSE CREATION:
The rise of online learning platforms has opened exciting avenues for publishers:
Developing online courses: Sharing their expertise through interactive courses covering diverse topics, catering to a broader audience beyond traditional media consumption.
Partnering with educational institutions: Collaborating with universities and online learning platforms to co-create and deliver highquality educational content.
CASE STUDIES:
The Financial Times (FT): Capitalising on their prestigious reputation in business journalism, the FT launched its “MBA 101” newsletter course. This free program guides aspiring students through the application process, leveraging the FT’s existing MBA rankings expertise. While free, the course strategically funnels potential subscribers through a discounted student subscription offer, showcasing a data-driven approach to education and audience engagement. The Publisher as an Educator
The Economist: Recognising the vast potential of the education sector, The Economist launched its Executive Education pillar in 2021. They tailor courses to their existing audience of senior executives, leveraging the deep knowledge and expertise of their journalists. Offerings like “International relations: China, Russia and the future of geopolitics” demonstrate their commitment to delivering high-value content to their specific audience segment.
National Geographic: Capitalising on their legacy of storytelling and exploration, National Geographic offers a range of online courses through National Geographic Learning. These courses cover diverse topics, including photography, environmental conservation, and world history, allowing audiences to learn and engage with their vast library of knowledge in an interactive format.
NAVIGATING THE EVOLVING LANDSCAPE:
While venturing into education offers exciting possibilities, publishers must consider: Unique Value Proposition: Identifying a niche area of expertise or a loyal audience
segment where they can stand out in a crowded educational landscape. Engaging Course Design: Going beyond traditional lectures, developing interactive and engaging learning experiences to capture and retain student attention.
Traditional revenue streams are evolving and may not be the best bet for all publishers. In this context, philanthropy is emerging as a significant contributor to the
financial sustainability of news organisations. This trend extends beyond its historical stronghold in the US, offering promising prospects or publishers worldwide.
AN OVERVIEW OF PHILANTHROPIC SUPPORT:
UK Example: A recent report by Press Gazette revealed a substantial increase in philanthropic funding for UK newsrooms, reaching an estimated £77 million, compared to £55 million in mid-2021. Global Landscape: While the US remains the leader, with a record $619.5 million raised in 2020, Press Gazette’s data also suggests international growth in philanthropic support for journalism.
CASE STUDIES IN ACTION:
The Salt Lake Tribune (USA): This pioneering publication became the first legacy newspaper in the US to transition to a non-profit model. This allows them to accept tax-deductible donations while still pursuing traditional revenue streams like subscriptions and advertising. Their success offers a valuable example of financial sustainability achieved through diverse funding sources. The Publisher as a Philanthropy Partner
The Guardian (UK): Through their US arm, theguardian.org, they raised $9 million between 2020 and 2021. They maintain a unique hybrid approach, combining donor support with subscriber revenue. This flexibility allows them to pursue specific philanthropic contributions for targeted journalism projects without compromising editorial
independence.
CHALLENGES AND CONSIDERATIONS:
Geographical Disparity: While gaining traction globally, philanthropic funding remains more prevalent in the US. This necessitates strategic efforts to attract and diversify funding sources in other regions. Donor Dependence: Reliance on a limited number of major donors can lead to vulnerability and potential threats to editorial independence. Publishers need to carefully navigate this risk and cultivate diverse funding streams.
Sustainability Concerns: Ensuring longterm consistency and reliable support from philanthropic sources remains an ongoing challenge for publishers.
Publishers are increasingly embracing the role of brand storytellers, leveraging their content creation expertise to develop engaging and impactful advertising campaigns for brands. This model offers publishers a valuable diversification strategy to supplement traditional revenue streams.
THE CASE FOR PUBLISHERS AND BRANDED CONTENT
Building Trust and Relationships:
When strategically crafted, branded content can foster trust and create lucrative partnerships between publishers, brands, and their audiences. Achieving this requires authentic storytelling, a commitment to a multi-platform approach, and the application of data-driven insights to ensure relevancy and engagement.
Leveraging First-party Data: As the digital advertising landscape braces for significant changes with the phasing out of third-party cookies, an opportunity arises for brands to build campaigns based on sophisticated audience segments and taxonomies. This shift emphasises the importance of firstparty data in developing targeted, personalised advertising strategies.
Cutting Through the Digital Noise: In an era where AI-generated, generic shortform content floods platforms like TikTok, the value of authenticity and genuine storytelling becomes paramount. Brands that tailor their messaging to reflect the values and aspirations of their audience, especially those emphasising sustainability and social responsibility, distinguish themselves from the competition.
Going Beyond Conventional Advertising:
With digital advertising poised for a recovery in 2024, influenced by major news events such as elections and global sports events like the Olympics, there lies a golden opportunity for publishers. By investing in content studios and partnering with brands on compelling campaigns that reach high-quality audiences, publishers can extend their role beyond content creation to become strategic partners for brands, navigating the evolving digital landscape together.
LEADING THE WAY:
The New York Times – T Brand: The award-winning studio exemplifies multimedia branded content creation, collaborating with prestigious brands like Cartier, Google, and American Express. Their website emphasises their team of experienced professionals entrusted with crafting compelling narratives for a discerning audience.
Vox – Vox Creative: Recognised for their innovative work with brands like Tide and Citi, Vox Creative positions itself as a one-stop content shop for advertisers. They leverage their editorial network, data insights, and robust community to connect brands with engaged audiences.
The Washington Post – WP Creative Group:
This rebranded entity (it was earlier called WP BrandStudio) reflects the evolution of their content studio beyond just producing award-winning content. They now emphasise deep collaboration with brands, going beyond a transactional model to become strategic partners. This shift focuses on delivering greater value, purpose, and seamless management for brand partnerships.
The Atlantic – AtlanticLIVE: This events and content arm of The Atlantic produces live and virtual events, podcasts, and branded content solutions for businesses. They utilise their journalistic insights and access to industry leaders to curate engaging content for both audiences and brands.
CHALLENGES TO CONSIDER:
Competitive Landscape: This space is intensely competitive, with established agencies and emerging players vying for a share of the market.
Investment Requirements: Producing high-quality branded content necessitates a significant investment in in-house talent, studio infrastructure, and sales operations.
The exponential growth of e-commerce, fuelled by the pandemic and solidified by changing consumer habits, presents a significant opportunity for publishers.
This section explores how publishers are adapting their strategies to thrive in this evolving landscape.
THE E-COMMERCE LANDSCAPE:
Market Growth: E-commerce is predicted to constitute 25 percent of global retail sales by 2027, with China and the US leading the charge. This translates to an expected $9.1 trillion in annual sales by 2027, according to WPP’s 2021 projections.
Consumer Expectations: Consumers now expect frictionless shopping experiences and mobile-optimised platforms for online purchases. Publishers that fail to prioritise these aspects risk losing valuable audience engagement.
STRATEGIC ADAPTATION FOR PUBLISHERS:
Content Strategy Transformation: Damian Radcliffe, a researcher and professor, emphasises the need for publishers to adapt their content strategies to cater to evolving consumer needs. This may involve incorporating product reviews, buying guides, and curated content tailored towards specific e-commerce interests.
Prioritising User Experience: A seamless user experience is crucial. As Gregorz Piechota, INMA Researcher-in-residence, highlights, publishers need to invest in
user-friendly interfaces and functionalities for online shopping experiences.
Exploring New Revenue Streams: With the advertising landscape becoming increasingly saturated, affiliate marketing presents a viable alternative. This model allows publishers to earn a commission on sales generated through product links embedded in their content.
EFFECTIVE IMPLEMENTATION THROUGH AFFILIATE MARKETING:
Building Trust with Quality Reviews: The key to success in affiliate marketing lies in building audience trust. Publishers need to invest in high-quality product reviews and maintain editorial independence to ensure reader confidence.
LEADING EXAMPLES:
The Independent: Their “Indy Best” section has seen remarkable growth, doubling its editorial team during the pandemic. They’ve also launched an integrated shopping service allowing readers to purchase directly from editorial reviews, keeping them engaged within the platform. Future PLC: The media company generated close to $1 billion in e-commerce sales in 2020 and continues to see growth. Their “Hawk” platform automatically identifies affiliate products and embeds them in reviews, creating a
seamless shopping experience.
ADDITIONAL EXAMPLES:
New York Times – Wirecutter: Offers in-depth product reviews and buyingguides across a vast range of categories, from tech gadgets to kitchen appliances. They are known for their rigorous testing methodologies and unbiased recommendations, establishing trust with their audience.
Gannett – Reviewed: Provides comprehensive product reviews with a focus on user insights and practical recommendations. Their “Best Of” lists highlight top performers in various categories, making it easy for readers to find the best options based on their needs.
The Wall Street Journal – Buy Side: Features curated product recommendations from their editorial team, focusing on luxury and premium goods. They leverage the journal’s reputation and expertise to guide readers towards high-quality products across various categories.
CHALLENGES AHEAD:
Maintaining Editorial Integrity: Balancing the need for affiliate revenue with preserving trust and avoiding biased recommendations is crucial. Publishers must ensure transparency in their approach to affiliate marketing, clearly disclosing any sponsored content or affiliate partnerships.
Building Trust with Affiliate Partners: Establishing strong relationships with reputable brands and retailers is essential. Publishers need to carefully curate their affiliate partners to ensure they align with their target audience and editorial values.
Navigating Evolving Consumer Behavior: Consumer preferences and shopping habits can shift rapidly. Publishers need to stay informed about industry trends and adapt their strategies accordingly to remain relevant and competitive in the e-commerce landscape.
Longstanding publishers hold invaluable treasure troves of history within their archives. These vast collections, once primarily serving journalists, are now being strategically leveraged to generate revenue, enhance subscriber offerings, and foster deeper audience engagement.
BEYOND THE NFT HYPE:
While the initial excitement surrounding Non-Fungible Tokens (NFTs) for monetising historical content captured attention, the market’s recent downturn has publishers reconsidering their approach. Moving beyond this short-lived trend, this section explores established and innovative ways publishers are utilising their archives in the
contemporary landscape.
KEY EXAMPLES:
The Atlantic: The publication digitised their entire archive of over 1900 print magazines, spanning 165 years. This provides access to original works from iconic figures, offering historical and educational value. Additionally, by featuring digital advertising alongside the content, The Atlantic aims to generate revenue and attract new subscribers through this initiative.
Harvard Business Review: They utilise Harvard Business School case studies as an exclusive benefit for premium subscribers. These studies, delving into real-world business dilemmas, provide valuable insights for students, entrepreneurs, and professionals. This approach demonstrates how archives can be used to create a differentiated and valuable subscription experience.
CHALLENGES IN UTILISING ARCHIVES:
Digitisation Costs: Large-scale digitisation projects can be resourceintensive, requiring significant investment in manpower and technology. The New York Times, for
instance, received funding from Google to undertake their project. While the potential benefits are significant, the initial investment can be a major hurdle.
Engaging New Audiences: Presenting archival content in a way that resonates with contemporary audiences is crucial. Interactive features, curated collections,
and educational resources can help bring historical content to life and attract new audiences.
Copyright and Permissions: Navigating copyright laws and obtaining permissions for historical materials can be complex and time-consuming, especially for vast archives. This can present a significant barrier for publishers seeking to fully utilise their historical assets.
Data Security and Preservation: Ensuring the security and long-term preservation of digitised archives is essential. This requires investment in robust infrastructure, ongoing maintenance, and adherence to data protection regulations.
In today’s information landscape, established publishers hold a wealth of intellectual capital and experienced staff across various coverage areas. This expertise can be strategically leveraged beyond traditional content creation, transforming them into knowledge catalysts.
UNLOCKING NEW REVENUE STREAMS:
Publishers can monetise their inhouse expertise by providing highquality research reports for industry or government entities. This goes beyond a simple pay-for-report model. The report release itself can be a strategic tool.
Published on the publisher’s platform: This expands reach, establishes thought leadership, and attracts potential clients.
Leveraged for events: Hosting discussions or conferences around the report findings can generate additional revenue and brand recognition.
Attracting sponsors and advertisers: Partnering with relevant organisations can increase reach and offset research costs.
EXAMPLES IN ACTION:
Financial Times – FT Strategies: In 2019, the FT launched a consulting arm leveraging their in-house data scientists, product managers, and digital experts. FT Strategies draws on the FT’s expertise in data and technology to help other media companies build successful customerfocused businesses. This demonstrates how publishers can translate their internal knowledge into consultancy services.
The Economist Intelligence Unit (EIU): Established by The Economist Group, the EIU is a dedicated research and analysis arm providing country reports, industry
forecasts, and business solutions. This demonstrates a full-fledged research and consulting division leveraging a publisher’s brand and expertise.
Skift: This travel industry publication exemplifies blending news, newsletters, events, and in-depth research reports. “Skift Research” offers 50 new reports annually, covering diverse topics like food tourism trends and airline industry insights. This model highlights how publishers can combine content creation with premium research, catering to specific audience needs.
CHALLENGES AND CONSIDERATIONS:
Building a Reputation: Establishing a strong reputation for reliable and insightful research takes time and consistent delivery. Competition: Publishers face competition from established research firms in specific sectors. They must differentiate themselves by leveraging their unique expertise and industry connections.
As the fight for attention and subscriptions intensifies in a landscape marked by news media layoffs, publishers are embracing interactive experiences to captivate audiences, drive engagement, and potentially diversify revenue streams. The key strategy gaining traction is the reimagining of puzzles and games, a classic “habitforming tool” for newspapers, in a contemporary context.
THE CASE FOR GAMES:
The New York Times’ acquisition of Wordle, a viral word-guessing game, raised eyebrows but signalled a strategic shift. By attracting millions of new users to the platform, even a small conversion rate to paid subscriptions could be significant. This underscores the importance of diversifying engagement strategies for publishers in an environment where traditional advertising models may be increasingly saturated.
KEY EXAMPLES:
The Washington Post: Launched their first in-house game, “On the Record”, a quiz testing knowledge of current events. This Sporcle-inspired format reflects a growing trend of integrating interactive quizzes to enhance reader engagement. While not directly inspired by Wordle, it showcases publishers’ exploration of alternative, non-word game approaches.
The New York Times: Following the success of Wordle, the NYT has expanded its gaming offerings and redesigned its Games app, experiencing a significant rise in subscriptions partly attributed to their gamification efforts. This highlights the potential of interactive content to attract and retain audiences within the platform, fostering engagement beyond just news consumption. Jonathan Knight, NYT’s General Manager of Games, emphasises the value of games as a “dessert” after news consumption, providing engaging entertainment alongside informative content. According to recent reporting from Axios this year, The New York Times’ puzzle and games were played more than 8 billion times last year, led by Wordle.
TIME Magazine: TIME has used Artificial Intelligence to turn its vast archives into engaging quizzes. According to Twipe Digital Publishing, this project combines tradition with modernity and serves as a pilot for AI-driven initiatives to increase engagement with readers.
BEYOND ENGAGEMENT: EXPLORING MONETIZATION OPPORTUNITIES:
More reporting from Axios’ Sara Fischer emphasises that beyond engagement, games offer potential for direct revenue generation. The NYT’s recent introduction of non-intrusive advertising within their games and their $6/month games-only subscription tier are notable examples. These strategies demonstrate how publishers can leverage interactive content to explore alternative revenue streams alongside traditional models.
CHALLENGES AND CONSIDERATIONS:
While incorporating games offers opportunities, maximising their effectiveness requires further planning as outlined by Digital Content Next. Strategies like newsletters, social features, and additional in-game layers can be explored to foster deeper user engagement and potential monetisation.
Additionally, publishers must carefully balance the user experience with any monetisation efforts, ensuring that advertising initiatives are non-intrusive and do not alienate their audience.
The world of sports journalism is facing a fascinating, and ethically complex, evolution. A growing number of publishers are partnering with sports betting
companies, venturing into previously uncharted territory. This move is fuelled by the exponential growth of the sports betting industry, particularly in the United States,
where the market is estimated to reach a staggering $30 billion by 2030.
EXPANDING THE PIE:
Fuelled by advances in technology and the legalisation of online betting in an increasing number of states, the sports betting pie is growing at an astronomical rate. The American Gaming Association reports that August 2022 alone saw revenue exceeding $471 million, a staggering 116.2 percent increase compared to the same period
in 2021. With online betting now legal in 33 US states, up from just 18 in January 2022, many online news publishers are embracing potentially lucrative content partnership deals with sports betting companies.
A DOUBLE-EDGED SWORD:
However, this foray into the world of sports betting is not without its fair share of challenges and ethical considerations. While it offers a new revenue stream for publishers struggling with declining subscriptions and advertising dollars, some argue that it blurs the lines between journalism and advertising, potentially compromising journalistic integrity.
INSIGHTS AND ANALYSIS:
Adam Fiske, CEO and Co-Founder of Cipher Sports Technology Group, highlights the role of technology in driving the growth of the industry. He emphasises how AI-powered analytics and machine learning models allow for highly accurate data and insights, creating a win-win situation for both sports betting companies and their
affiliate partners.
GLOBAL LANDSCAPE:
While the US market is experiencing explosive growth, other countries, like the UK, show a different picture. The UK’s sports betting market value sits at $5.4 billion, significantly lower than the US. However, it still represents a sizable chunk of the European market, holding a 23 percent share in 2021.
JOURNALISM AND THE BETTING BOOM:
From a journalistic perspective, some sports betting reporting can be seen as a valuable service for sports fans and readers, providing them with insightful analysis, betting odds, and expert opinions. For publishers, it offers an alternative revenue stream that is likely to grow as more states legalise online betting and fans embrace it as part of their sports viewing experience.
INDUSTRY VOICES:
Will Yakowicz, Staff Writer at Forbes, underlines the significant shift in the media landscape: “Many media companies have identified a new pivot: sports wagering.” He highlights the rapid growth witnessed since the 2018 Supreme Court ruling that paved the way for legal sports betting, with 26 states and Washington D.C. now boasting legal markets. This rapid growth has fuelled the financial strength of the industry, making it an attractive partner for publishers facing dwindling traditional revenue sources. Natural Extension and Mutual Benefit: Several sports media publishers recognise sports betting coverage as a natural extension of their existing sports
content. They see an opportunity to leverage their audience and expertise to create engaging content, while also capitalising on the growing interest in
sports betting. This partnership also benefits sportsbooks, as it provides them with a cost-effective way to reach new customers compared to traditional advertising methods.
The Innovation in News Media World Report is published every year by INNOVATION Media Consulting in association with WAN-IFRA, The report is co-edited by INNOVATION President, Juan Señor, and Senior Consultant Jayant Sriram