The key idea is how free media enterprise can tailor their unique capacity to service others, embracing open source content creation in order to revamp the cost structure & increase scalability, creating combination of products and seeking the right mix of finance. The general outline of investors and donors are presented.
Free Media Enterprise 2.0
Citizen media, business model and ﬁnancing.
By Sunit Shrestha, TRN Institute
Information is the
We all know how internet-enabled
citizen journalism/media is emerging
and could change everything.
is yet still a big issue.
No real growth
No long-term impact
Just an insigniﬁcant niche ?
Just another hype in the dead-pool ?
Spectrum of citizen media...
No-time Part-time Full-time Over-time
High expected quality /
hard-core bloggers /
Area of interest
typical bloggers / podcasters
Low expected quality /
+ citizen media
What to do for ?
Especially those emerging
in developing countries.
Product & service
Revenue / funding
Product & Service
• Capacity service option
Leverage unique media capacity
to service others with strategic ﬁt.
• Reality-check growth
• More sustainable
• Lower startup risk
• CAUTION: Distraction & time to market
Product & Service
Capacity service option:
Center for Independent Journalism, Malaysia
Community journalism capacity
Siam Intelligence Unit, Thailand
Data management & communication capacity
Assuming low delivery cost, the worrying cost is in the
content generation model.
High control Low control
High cost Low/medium cost
Difﬁcult to scale Highly scalable
Editorial team approach
User-generated media enterprise
Crowd / community sourcing as long tail aggregator & facilitator.
Manage monetary & non-monetary incentives along the tail.
Media creation incentive spectrum
Proﬁt threshold for Proﬁt threshold for stores
physical stores (like with no retail overhead Proﬁt threshold
Tower Records) (like Amazon.com) for stores with no
physical goods (like
Beyond bricks and mortar there are two main number of products they can sell proﬁtably.
retail models — one that gets halfway down Pushing this even further are pure digital
the Long Tail and another that goes all the services, such as iTunes, which o!er the addi-
way. The ﬁrst is the familiar hybrid model tional savings of delivering their digital goods
of Amazon and Netﬂix, companies that sell online at virtually no marginal cost. Since an
Open source approach
NowPublic.com: 12 million USD funding
Subscription (with large enough audience ﬁrst)
Content provider to other media intermediary such as cable
network, mobile, etc.
Publication & physical media release
Events / seminars / work-shops
Capacity service such as research, podcasting, training, data
Friedrich Naumann Foundation | Open Society Institute
Media Development Loan Fund | SEAPA
ResponAbility | SIDA | YSEI
Scale-up funding case in point
Media Development Loan Fund
supporters should do?
Share investment information & develop partnership
Micro venture capital focusing on free media enterprise.
Explore innovative funding instrument such as loan-like
grant, equity-like grant and equity-like loan.
Guarantee instrument for collateral option.