The document discusses the challenges facing American journalism, particularly focusing on revenue losses as traditional media declines and local news deserts emerge. It highlights potential local solutions through both hyper-local and regional approaches to generating revenue, alongside sustainability considerations for new journalism ventures. Key questions are posed for evaluating sustainability and the business models of these projects while referencing the need for innovative strategies and metrics for success.

1. The
landscape
we’re
in
right
now
Newspapers
&
legacy
media
losing
value
Increasing
number
of
local
“news
deserts”
75%
of
online
ads
go
to
Google
&
FB
CommuniLes
lack
local
voices
to
reflect
who
they
are
&
what
goes
on
2007-­‐2010-­‐-­‐$180M/yr
invested
in
journalism
by
foundaFons
$1.6B/yr
editorial
cuts
by
legacy
newspapers.
Source:
"
The
InformaFon
Needs
of
CommuniFes”,
FCC,
June
2011
‘The
problem
facing
American
journalism
is
not
fundamentally
an
audience
problem
or
a
credibility
problem.
It
is
a
revenue
problem.”
-­‐Pew
Project
for
Excellence
in
Journalism
1

2. Local
soluLons
oPen
take
2
forms
Hyper
local
play*
Big
regional
play**
•
Sell
ads
on
a
non-­‐CPM
basis
($40-­‐ • UnderwriLng,
grants,
donors,
$2500/month)
events,
adverLsing
&
more
• Grants,
ads
•
High
tech
with
apps,
ad
targeLng.
• Market
locaLon,
not
audience
•
Strong
third
party
distribuLon,
• Focus
on
short
form
local
content
oPen
to
print
enLty.
• Keep
staff
minimal
&
producLve
• InvesLgaLve
reporLng.
(1-­‐2
arLcles/day)
• Aggregates
niche
publicaLons
• Typical
revenue
of
$50-­‐100,000
K
• Annual
budget
$60-­‐300,000
K
*Ex:
Barista,
Batavian,
West
SeaXle
Blog
**Ex:
Texas
Tribune,
California
Watch,
Minn
Post
2

3. Problems
• The
big
sites
(budgets
of
$2.3-­‐$6MM)
are
oPen
neither
sustainable
OR
typical
• Smaller
sites
are
niche,
harder
to
evaluate
• Do
funders
have
criteria
to
evaluate
local
efforts?
• What
are
realisLc
expectaLons
for
earned
revenue?
BoXom
line:
Thinking
about
sustainability
needs
to
start
day
1
3

4. Sustainability
quesLons
• What
aspects
of
this
project
create
the
most
value?
How
can
we
make
money
from
them?
• Who
can
we
learn
from/copy?
Whose
models
might
work
for
us?
• What’s
the
revenue
porlolio
to
try
out?.
• Can
we
try
some
tacLcs
and
afford
to
fail?
• Do
we
know
how
to
measure
success/failure
in
our
efforts?
4

5. Ben
Wirz’
formula:
What
is
Minimum
Viable
Product
(MVP?
MVP
=
F(Customer,
Problem,
Time
or
$$$)
• Focus
on
CUSTOMER
– QualitaLve
Discovery,
QuanLtaLve
ValidaLon
• Get
to
know
habits,
problems,
desires
(FUN
MATTERS)
– what
causes
pain?
what
causes
pleasure?
• Define
1-­‐5
TESTABLE
Conversion
Metrics
of
Value
– AXenLon/Usage
(session
Lme,
clicks)
– Customer
Data
(email,
connect,
profile)
-­‐ Revenue
(direct
or
indirect)
-­‐ RetenLon
(visits
over
Lme,
cohort
behavior)
-­‐ Referral
(users
evangelize
to
other
users)
• Note:
Paid
SoluLons
drive
FOCUS
(&
pay
rent)
SOURCE:
DAVE
MCCLURE,
500
Startups,
Metrics4Pirates
PresentaLon,
June
2011

6. Where
are
you
in
this
equaLon?
• How
do
you
think
about
sustainability?
• What
do
you
know
to
be
true?
• What
are
you
quesLoning?
• What
are
you
funding—or
not
funding?
6