Go Back   ManagementParadise.com | Management & Business Education Learning Platform Management Students Voices ( MBA,BMS,MMS,BMM,BBA) > International MBA

Financing the Future of Journalism

Discuss Financing the Future of Journalism within the International MBA forums, part of the Management Students Voices ( MBA,BMS,MMS,BMM,BBA) category; The Tribune Company’s filing of Chapter 11 this week could wind up being the journalism industry’s equivalent of the subprime ...



Thread Tools Display Modes
Financing the Future of Journalism
 (1 (permalink))
Maya Raichura
MayaRai has a spectacular aura aboutMayaRai has a spectacular aura about
Management Paradise Guru
Status: Offline
Posts: 42,867
Join Date: Nov 2004
Age: 56
Financing the Future of Journalism - July 20th, 2012

The Tribune Company’s filing of Chapter 11 this week could wind up being the journalism industry’s equivalent of the subprime crisis. Print is the backbone of American journalism and if it collapses, then all serious, professional journalism is the United States is in peril. To avoid this, we must present new economic models to support good, robust print reportage.

One alternative is not-for-profit journalism. In my role as a senior research fellow at Harvard’s Hauser Center at the Kennedy School, I am creating a dynamic NPO database to follow these various emerging organizations. Though valuable, the not-for-profit model cannot replace a whole industry that represents billions of dollars. There is not enough philanthropy out there to do that. There must be earned income for print journalism.

Right now, almost all newspaper content that appears on the Web is free. The newspaper industry has been trading advertising dollars for Internet cents. How does it turn those Internet cents into Internet dollars? Or, simply, how does it get direct money from its users?

One discussion I’ve had with students here at Columbia Business School is about creating an earned-income model for the newspaper industry along the lines of Skype, where users make micropayments.

I check the New York Times five to 10 times a day on my Blackberry, for example, and I don’t pay a cent for that content. Is there a way for the Times and other newspapers — especially local newspapers, where there is high value for the reader — to create a micropayment each time a reader checks the site?

Multiply those small amounts by millions of users and it adds up to a serious amount of money. Direct micropayments are part of the solution, but experts must first create a model for them.

The challenge is to better understand the technology so it can be implemented seamlessly, like with Skype, or people just won’t participate. Another challenge lays in adoption: if only one or two newspapers do this, will readers simply choose to get their information elsewhere? Migrating from a free to a for-pay service in critical areas, like journalism, will take some work, but I feel confident it can be done.

Journalism is arguably one of the most important industries in the U.S. because it involves fundamental and basic freedoms: the right to free speech and information.

That Tribune Company filed Chapter 11 doesn’t mean that it — and others — are going out of business, but it does create a snowball effect and says to investors that print journalism is not a good place for their money. We need intelligent models to excite investors and present operators before things get worse.

The model that ultimately may make the most sense is some combination of micropayments and advertising. Academics and students must now present plausible models and see if the free market jumps on board. Otherwise, we are in danger of losing the great professional infrastructure that exists in American journalism.

Dr. Baker is the co-author of Leading with Kindness.

Photo credit: Daniel R. Blume


Friends: (0)
Reply With Quote

Related to Financing the Future of Journalism

Similar Threads

Thread Thread Starter Forum Replies Last Post
NIFTY FUTURE & BANK NIFTY TIPS. CALL 09725121826 VISIT WWW.NIFTYTIPS.TK OM HARI niftytips Financial Management 2 September 30th, 2012 12:58 AM
How the Connection to the Future Self Impacts Financial Decision–Making Maya Raichura International MBA 0 July 20th, 2012 04:30 PM
Coke Brand Looks to Global Future Maya Raichura International MBA 0 July 20th, 2012 04:30 PM
What Is the Future for Leverage? Maya Raichura International MBA 0 July 20th, 2012 04:30 PM

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off

ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.

Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.