A Very Brief Discussion on News Monetization

Monetization… the process of converting or establishing something into legal tender.

Consider the traditional business model for news:
1. Journalists decide/create the “news”
2. Deliver to audience (via newspaper, magazines, TV, radio)
3. Sell ads (or subscriptions) around news content based on size of audience

How does the Internet change this model?

Let’s explore some new web and mobile revenue models (excerpted and adapted from https://hackpad.com/Ch2paBpUyIU#Web-and-Mobile-Revenue-Models)

Advertising
•    Display Ads – ex. Yahoo!
•    Search and Text Ads – ex. Google
•    Video Ads – ex. Hulu
•    Audio Ads – ex. Pandora
•    Promoted Content – ex. Twitter, Tumblr
•    Recruitment Ads – ex. LinkedIn
•    Classifieds – ex. Craiglist
•    Featured listings – ex. Yelp
•    Email Ads – MSN
•    Location-based offers – ex. Foursquare

Commerce
•    App Sale – ex. Instapaper ($3.99 for mobile app)
•    Retailing – ex. Zappos
•    Marketplace – ex. Etsy
•    Aggregator – ex. Lastminute.com
•    Group buying – ex. Groupon
•    Digital goods / downloads – ex. iTunes
•    Pay what you want – ex. Radiohead
•    Auction – ex. eBay
•    Reverse Auction – ex Priceline Name Your Own Price
•    Opaque Inventory – ex Hotwire
•    Barter for services – ex. SwapRight
•    Crowdfunding – ex. Kickstarter

Subscription
•    Content as a Service – ex: Spotify, Netflix
•    Freemium SAAS – ex. Dropbox
•    Donations – ex. Wikipedia
•    Membership Services – ex Amazon Prime
•    Full Paywall — ex. The Times of London
•    Metered Paywall – ex. NYTimes
•    Freemium Paywall – ex. The Economist

Mobile
•    Paid App Downloads – ex. WhatsApp
•    In-app purchases – ex. Zynga Poker
•    In-app subscriptions – ex. NY Times app
•    In-app Advertising – ex. Associated Press

Gaming
•    Freemium – Free to play w/ virtual currency – ex. Zynga
•    Subscription-  ex. World of Warcraft
•    Premium – ex. xBox games
•    DLC – (Downloadable Content)  – ex. Call of Duty
•    Ad Supported – ex – addictinggames.com

What do these new business models mean for news organizations?

What does this new business landscape mean for future journalists or content creators (photographers, filmmakers, TV producers, musicians, writers, etc)?

What does it mean to be an entrepreneurial journalist?

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