NODA15 Talk, Ålesund 31 Jauary 2015

1. Who Will be Funding
Journalism in the Future?
Arne H. Krumsvik
Slideshare.net/arnehk

2. Who Will be Funding
Journalism in the Future?
 Data journalism not important?
 New media not able to fund journalism!
 Time to rethink revenue models
KRUMSVIK.COM

3. Who Will be Funding
Journalism in the Future?
 Data journalism not important?
 New media not able to fund journalism!
 Time to rethink revenue models
KRUMSVIK.COM

4. Digital competences: publishing first
26.8 27.4
45.8
31.6
18.2
46.3
0
5
10
15
20
25
30
35
40
45
50
Finding Analysing Presenting
Executives (13)
News Workers (14)
In which part of the journalistic production process is digital competence most
important at the moment, if you are recruiting?

5. Analytical skills less important
4.66
4.42
3.48
5.36
5.18
4.45
2
3
4
5
6
Executives
News Workers
Send photos by e-mail from
mobile phone
Use spreadsheet to analyse information
6 = very
important;
1 = not
important

6. Concentrated newspaper ownership
facilitates innovation
1. Newspaper executives in newspapers owned by media groups rated most
digital competences significantly higher than executives from other
newspapers.
2. However, the focus of innovation in newspapers owned by media groups
tends to be on efficient multi-platform news production rather than the
unique features of digital journalism on each publication platform.
3. The low priority afforded to computer-assisted journalism skills will have
consequences for the priority of the development of advanced digital
methods in investigative journalism.
Krumsvik, A. H. (2014). Newspaper Ownership and the Prioritization of Digital Competences. Digital Journalism.
Published online August 12, 2014.

7. Who Will be Funding
Journalism in the Future?
 Data journalism not important?
 New media not able to fund journalism!
 Time to rethink revenue models
KRUMSVIK.COM

8. Conditions for Profitability
In 1979, Harvard Business
Review published “How
Competitive Forces Shape
Strategy” by a young
economist and associate
professor, Michael E. Porter.
It was his first HBR article,
and it started a revolution in
the strategy field.

9. “WHY OLD MEDIA WILL BE FUNDING
JOURNALISM IN THE FUTURE”
• While profits in traditional media in various
ways are challenged due to digitization,
the conditions for profit in new digital media
makes them unable to provide future funding
of journalism organizations as we know
them.
• However, digital media products will increase
their strategic value in order to defend and
expand the reach of traditional media
players.
Krumsvik, A. H. (2012). Why old media will be funding journalism in the future. Journalism Studies, 13(5-6), 729-741

10. What is a business model?
• A description of the operations of a business including the
components of the business, the functions of the business, and the
revenues and expenses that the business generates.
investorwords.com
Osterwalder (2004)

11. Who Will be Funding
Journalism in the Future?
 Data journalism not important?
 New media not able to fund journalism!
 Time to rethink revenue models
KRUMSVIK.COM

12. Traditional Newspaper Revenue Models
• Subscription paper
• Single copy sold
• Free sheet
• 33 % circulation
• 67 % advertising
• 75 % circulation
• 25 % advertising
• 100 % advertising

13. Media Revenue Models
• Consumer payment
– pay for use: single use, subscription
– low cost for basic use; higher price for
extended use (upselling)
• Advertising Payment
– pay for space/time
– pay for action: leads generated, click through
• Sponsorship
– pay for association with product/service
• B2B payment
– licensing for use by other firms
• Subsidies
– governmental, foundations or firm
Some firms rely
on only one
source of
revenue; some
combine the
sources
Source: Robert G. Picard

15. KRUMSVIK.COM
Krumsvik, A. H. (2014). Newspaper
Ownership and the Prioritization of
Digital Competences. Digital Journalism.
Published online August 12, 2014, doi:
10.1080/21670811.2014.941234.
Krumsvik, A. H. (2012). Why old media
will be funding journalism in the future.
Journalism Studies, 13(5-6), 729-741,
DOI: 10.1080/1461670X.2012.664331.