The Economics of New Media: How to Make Money?

Digital Disruption and the Future of News

The news business

• News generates $63-65bn in annual revenue

• Video game industry $93bn• Starbucks $15bn • Google $58bn

– State of News Media 2014 (Pew)

Time to panic? Total revenue supporting American journalism is down by a –third since 2006

Advertising: 69% of revenue

• Falling – daily newspaper advertising ($25.2bn) peaked in 2005 at $49bn, 82% of total newspaper revenue. Makes up 58% of sector

• Nearly a third from TV advertising ($12.8b)• Commercial news and talk radio 4% ($1.6bn)• Non-commercial news radio <1% ($200m)• For profit digital natives just 1% ($500-700m)

Audience: 24% of revenues

• Daily newspaper circulation: $10.4bn (69%)• Weekly newspapers (6%) • Monthly TV bills (20.5%)• Non-commercial news (3%)• For-profit digital natives (<1%)

Events: 7% of revenue

• All ThingsD $5,500 for spring conf = $2.75m• NYT 16 events in 2013• Atlantic Media 20% of revenue from events

• Trend towards membership, premium,

How much advertising revenue from for-profit digital natives?

• Analysts identified roughly $500m in annual ad revenue from for-profit digital news outlets

• Real intake certainly higher• Even if doubled, revenue would not amount to

any more than of 1 to 2% of all news ad revenue in US media system

• (Pew)

GE Anderson

• Editorial Director, Commerce• Yahoo• June 2012 – Present (2 years 4 months)Sunnyvale• Managed a team of 10 full-time and more than 30 freelance editors

and producers to create original editorial content for Yahoo Autos, Homes, Shopping, Small Business, and Travel properties• Personally invited Deepak Chopra to speak to the company as part of Yahoo's "Outside Insights" leadership development initiative (Q4, 2013)• Grew page views by >80% (10%, 207%, and 106%, respectively in Autos, Homes, and Travel) in 2013 in the face of decreased traffic from the Yahoo front page• Hosted the first exclusive live stream of the Pebble Beach Concours d'Elegance (Aug. 2013)• Delivered >$2.5M in display revenue for Autos per month in 2013, making editorial content the largest revenue generator for the property

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FOR Monday Sept 22nd

Read 1) Ten Ways that Journalists Can Use Twitter before, during and after a Story (Poynter)2) Digital Media Ethics (Uni of Wisconsin)3) Should Reddit Be Blamed for Spreading a Smear?4) How Twitter may have helped track down suspects from a Philly police surveillance videoASSIGNMENT: Set up a twitter account and link to your wordpress site. Live-tweet an event (12 to 16 tweets). On wordpress, use a storify-type layout to show your live-tweeting or a conversation sparked by it. 2) Also post your most retweeted and/or favorited tweet (for MIDNIGHT SUNDAY SEPT 21)

Live-tweeting

• Basic reporting habits apply to live tweeting• Use correct grammar, spelling and punctuation. • Don’t forget the who/what/where/when/why/how• Research facts beforehand• Find out twitter handles of those involved• Attribute statements, identify people in pictures• Remember everything you tweet is in the public domain• Context & analysis are important• Humor and a distinctive voice help build followers• Remember atmosphere. Tweet what people are saying around

you to bring the event alive.

Five things to live-tweet

• “Fourth and Long” author John U Bacon talks about the fight for the soul of college football, today 530pm Hatcher library

• Pussy Riot live in Michigan Theatre, Thursday Sept 18th 510pm

• Author Chad Harbach, who wrote the baseball novel ‘The Art of Fielding’ speaks at UMMA Auditorium, Friday Sept 19 510pm

• Wolverines vs Utah game Sept 20th 330pm• Comm Studies department convocation, tomorrow 4pm