Further fueling the ongoing debate over the future of the news media and independent journalism, eBay founder and billionaire Pierre Omidyar last month committed $250 million to a news site co-founded by journalist and author Glenn Greenwald. Omidyar’s investment followed the announcement over the summer that Amazon founder and CEO Jeff Bezos had purchased The Washington Post, also a $250 million investment. The late Steve Jobs’s wife, Lauren Powell, and 29-year-old Facebook co-founder Chris Hughes are also pouring money into old and new media ventures.
Could this new band of news media owners shape a technology-led business model that will be profitable and protect the integrity of impartial, ideology-free journalism? Ultimately, according to Wharton experts, the ball will rest with the consumer.
Any new business model that those in the technology world would bring to the media realm would have to address the major pain points currently facing the industry. News organizations have “suffered a lot financially in the past couple of years,” says Wharton marketing professor Pinar Yildirim. Circulation numbers and advertising revenue have shrunk as both readers and companies turned their focus to the Internet. The industry has tried to adjust to the new normal — some newspapers and magazines have cut back on issues or the number of days they produce a print product. Other news organizations have started charging for online access. Still more have tried to add content that mimics what tends to be most popular on the web, especially entertainment-related coverage, Yildirim notes.
Omidyar has indicated that he was motivated more by a desire to protect independent journalism than the prospect of getting a return on his investment, at least for now. In a blog post published on his website last month, Omidyar wrote that his investment in Greenwald’s venture (tentatively called “NewCo.”) stems from his “interest in journalism for some time now.” In 2010, Omidyar founded Honolulu Civil Beat, a news website with a stated focus on “investigative and watchdog journalism.” Earlier this summer, he explored buying The Washington Post newspaper before Bezos became the winning bidder. Around that time, Omidyar said he began thinking about the social impact he could help create with an investment in “something entirely new, built from the ground up.”
I met Aaron Swartz in Cambridge shortly after he’d been indicted for downloading lots of JSTOR articles on MIT’s network in 2011. My Wired colleague Ryan Singel had been writing about his story, and I’d talked a lot with my friends in academia and publishing about the problems of putting scholarship behind a paywall, but that was really the level at which I was approaching it. I was there to have brunch with friends I’d known a long time only through the internet, and I hadn’t known Aaron that way. I certainly didn’t want to use the brunch to put on my journalist hat and pepper him with questions. He was there primarily to see his partner Quinn Norton’s daughter Ada, with whom he had a special bond. The two of them spent...
Bedrocket Media bills itself as a "next generation media company" backed by New York heavyweights from the world's of internet and television. "The old order – with its big, high-cost studios and gatekeepers – is crumbling, and the future belongs to nimble content creators who can take advantage of the seismic changes happening in the industry. We see a unique opportunity to become 'cable in the cloud,'" said Bedrocket CEO Brain Bedol.
The startup was one of the fist partners for YouTube's new channels initiative, creating a sports channel named Network A, but wanted to push things a little further. "We love YouTube, but we also want to expand beyond the model of showing TV on the internet. The web's strength is that it lets you do...
We’ve all heard about the painful transition newspapers and magazines are going through. Two decades after the arrival of the web, the search for durable, profitable business models that make sense in the digital age goes on. And it isn’t going well. Advertising, subscriptions, and data-as-service have failed. Now is the time for web developers, designers, and digital strategists of all stripes to lead experiments with making (and saving) money from the things technology and the web are good at.