The emergence of new media has led to a dramatic change in the traditional media centred around an advertising-based, single-revenue model that was previously successful on a near-global basis, panellists at the International Press Institute (IPI)’s World Congress “Funding Models for Quality Journalism” noted.
Kicking off the panel, which explored the ways in which funding and business models are being implemented around the world, moderator Markus Spillmann, owner and CEO of Spillmann Media, emphasised that audiences differ globally, impacting whether specific revenue models will succeed for different organisations and countries.
Some organisations have proven effective following the traditional news model, he noted, while other organisations are increasing their digital presence but maintaining their print media roots.
Fellow panellist Virginia Alonso, deputy editor-in-chief of Spain’s El Mundo, commented that “premium, advertising, subscriptions, and political affinity are four business models that have proven to work well” in her country.
Murat Yetkin, editor-in-chief of Turkey’s Hürriyet Daily News observed that print was not yet dead in his country. Even though there have been changes in their readers’ profiles, he said, Hürriyet still uses the traditional revenue models that emphasise advertising and circulation.
Charles Sennott, founder and executive director of The GroundTruth Project, argued that “the business models that exist right now are insufficient for quality international journalism because it is very expensive”, adding: “One of the things that I think can contribute to that model is the non-profit approach, [i.e.] going after foundations and individual donors and combining that with earned revenue.”
While Sennott said that a combination of non-profit and for-profit is the ideal model, he said he remains open to the development of new models to support quality journalism.
“There will be models to sustain, we just haven’t found them yet,” he commented, explaining that young journalists and entrepreneurs who are digital natives will be able to find models that will sustain quality journalism.
Ben Hicks, executive director of The Guardian Foundation, added that “innovation is key” and that “power is with the tech giants”. The Guardian’s business model for generating revenues relies solely on charitable funding.
The panellists agreed that no single solution to funding quality journalism will work worldwide, although Spillmann noted that the mixtures of different funding approaches will ultimately lead to a change in the current news disseminating structures.
With no one model controlling the funding of journalism, the rise of digital media might eliminate the dominant news organisations that currently control mainstream media, he contended.