New Business Models
The ongoing goal of the New Business Models for News project is to inform the discussion about the future of news with business specifics — experience, facts and figures. After months of research and analysis, we have created business models that we believe demonstrate there is a sustainable future for local news.
For the purpose of our models we utilized data from a top-25 metro market and hypothesized that the sole daily newspaper had ceased publication. We began with the assumption that there will continue to be a market demand for quality journalism and that the market will find a way to meet that demand. So, what will fill the void?
We posit that no single company or product will replace the metro daily newspaper. Instead, an ecosystem made up of many players operating under many models and motives will emerge. In that context, we created models for hyperlocal sites serving different sized towns or neighborhoods, a metro-wide New News Organization (NNO), and a company that would supply the supporting infrastructure – or Framework – that the new news ecosystem will likely need. We also researched and modeled a not-for-profit local news organization that could be supported by public funding.
Although these genericized models are backed up by extensive, well-documented research, they are but one possible view of the future. They represent a stake in the ground. Clearly, our models cannot address the specifics of every individual local market. That’s why we invite you to download our spreadsheets and plug in your own assumptions. You can make changes to all fields highlighted in green: raise or lower advertising rates, increase or decrease staff, revise whatever you like. When you open the individual models, please look at the bottom of the spreadsheet and click through all the sections to see more detail. (Note: Changing data in fields not highlighted in green will break the formulas.)
Here are the latest versions of the New Business Models For News, which have been revised based on feedback received at a number of presentations and workshops.
(Models updated February 17, 2010)
Hyperlocal and Ecosystem Framework Models
Hyperlocal sites are the building blocks of the new news ecosystem. In these models, we break out financials for sites serving smaller markets (20k, 35k, 60k) — towns, neighborhoods or areas of interest — within our sample top-25 metro market (pop. 5 million). We model the hyperlocal sites both as stand-alone entities and also as part of a larger sales, support, and technology infrastructure that we believe is necessary to optimize businesses within the ecosystem. We project that an organization that enables advertising networks and provides other services to support the local news ecosystem is both a sustainable business (we model it here as the “Framework”) and will make individual hyperlocal news organizations more profitable.
• Download the Hyperlocal Site Model
Google Docs Spreadsheet (To make changes, click File>>Make a copy or File>>Export.)
Excel Spreadsheet
Business Plan Summary
• Download the Integrated Hyperlocal-Framework Model
Google Docs Spreadsheet (To make changes, click File>>Make a copy or File>>Export.)
Excel Spreadsheet
Business Plan Summary
Click here to leave your comments or contact us at newbiznews09@gmail.com
New News Organization Models
In the absence of a metro daily newspaper, this model envisions a new, metro-wide news organization serving a market of 5 million people that operates on a smaller scale, yet still provides wide local coverage. The NNO will produce original beat and investigative reporting and will also work collaboratively with other sites as well as individuals in the ecosystem to add value. Although advertising remains the key source of revenue, new business-to-consumer and business-to-business revenue opportunities will also be developed. In addition, since many current news organizations are exploring subscription, metering or micro-payment options, we also developed a New News Organization model that includes a paid content component.
• Download the New News Organization Model
Google Docs Spreadsheet (To make changes, click File>>Make a copy or File>>Export.)
Excel Spreadsheet
Business Plan Summary
• Download the New News Organization (Paid Content) Model
Google Docs Spreadsheet (To make changes, click File>>Make a copy or File>>Export.)
Excel Spreadsheet
Business Plan Summary
Click here to leave your comments or contact us at newbiznews09@gmail.com
Not-for-Profit News Organization Model
Given the number of promising not-for-profit local news organizations that have launched throughout the US recently, it is likely that publicly supported journalism will play a role in the new news ecosystem. We conducted research within our sample metro market and created a model based on the estimated funds that could reasonably be generated in support of an NFP news organization.
• Download the Not-for-Profit Model
Google Docs Spreadsheet (To make changes, click File>>Make a copy or File>>Export.)
Excel Spreadsheet
Click here to leave your comments or contact us at newbiznews09@gmail.com
First Draft » Blog Archive » Can Hyperlocal Save “Old” Media? Should It?
30. Sep, 2009
[...] Jarvis is on the Editorial Advisory Board of my employer, Patch.com). He has developed several business models that point towards the profitability of hyperlocal journalism. As the hyperlocal path continues to [...]
Two Paid Models for Metro News | News Innovation
30. Sep, 2009
[...] you’ve taken a peek at any of the other models we produced and presented to the Aspen Institute you’ll see many of the revenue and expense [...]
Jeff Jarvis: «Cobrar por las noticias en la red podría ser un suicidio»
08. Oct, 2009
[...] ha dirigido un estudio que concluye que el futuro es de los medios hiperlocales y sin ánimo de lucro, con redacciones [...]
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15. Oct, 2009
[...] be presenting and discussing the New Business Models for News Project projections for the local news ecosystem (earlier presented at a Knight Foundation-sponsored event at the Aspen Institute). In the second [...]
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15. Oct, 2009
[...] be presenting and discussing the New Business Models for News Project projections for the local news ecosystem (earlier presented at a Knight Foundation-sponsored event at the Aspen Institute). In the second [...]
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18. Oct, 2009
[...] return again to the NewBizNews Project, where we modeled a sustainable economy of news at between 10-15% of a metro paper’s revenue – about as [...]
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28. Oct, 2009
[...] website in the coming weeks for further HyperCamp updates. And take a look at the Project’s business models. We urge you to download and modify our spreadsheets by plugging in your own [...]
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11. Nov, 2009
[...] For those of you who are wondering, here is a link to the models that are being discussed this [...]
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12. Nov, 2009
[...] News Innovation | New Business Models (tags: onlinenews mediacompanies businessmodels) [...]
This Weekend
12. Nov, 2009
[...] New Media Women Entrepreneurs Summit in The District, and the CUNY J School’s boot camp on hyperlocal-news business models. Both conferences were interesting, informative and [...]
Knight Foundation Blog » New Business Models for News
14. Nov, 2009
[...] The four business models were presented and discussed last Wednesday at the New Business Models for (Local) News Conference and Hypercamp at CUNY. You can download the models at newsinnovation.com. [...]
New Business Models — http://newsinnovation.com/models/ « my mcLife
15. Nov, 2009
[...] from: http://newsinnovation.com/models/ [...]
Assaig sobre mitjans i fotoperiodisme, per David Campbell « Memòries de Brooklyn
17. Nov, 2009
[...] search for new business models for news is occupying the minds of people much more knowledgeable than me. However, from reading recent [...]
Roger Wilson
24. Nov, 2009
Can someone explain the event/conference component of the new news org model? I am interested in the content and the economics.
Three Horizons of News Innovation « Business Models « Innovation Leadership Network
10. Dec, 2009
[...] before, Jarvis in undertaking an interesting project where his group has constructed a number of new business models for news that use new revenue generation mechanisms to support journalism profitably. Conover criticises [...]
We Aren’t Still Looking for a Silver Bullet, Are We? « DigiDave – Journalism is a Process, Not a Product
21. Dec, 2009
[...] networks. The best thoughts around this I’ve seen recently come from Boss Jarvis’ presentation at Aspen. Say what you want about the numbers – the concept deserves [...]
So your hyperlocal news website put you in the poorhouse. Now what? « The Hyperlocalist
20. Jan, 2010
[...] few hyperlocal business models are out there, most spawned by larger media companies looking to tap into local advertisers. [...]
New Media Business Watch | No Medium Spared
29. Jan, 2010
[...] Wants to Be Expensive’ Dorian Benkoil, E-Media Tidbits, Poynter, Aug. 18, 2009 (See also: New Business Models City University of New York Graduate School of [...]
fancy dress
08. Mar, 2010
Fantastic post thanks for sharing, quick question though, how do you think business models will evolve over the next year or so given financial turmoil?
Revised Business Models | News Innovation
16. Mar, 2010
[...] Although these genericized models are supported by extensive, well-documented research, they are but one possible view of the future. They represent a stake in the ground. Clearly, our models cannot address the specifics of every individual local market. That’s why we invite you to download our spreadsheets and plug in your own assumptions. The latest spreadsheets and business plan summaries are available here. [...]