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Free Media Enterprise 2.0

Citizen media, business model and financing.

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.

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Free Media Enterprise 2.0

  1. 1. Free Media Enterprise 2.0 Citizen media, business model and financing. By Sunit Shrestha, TRN Institute
  2. 2. Information is the currency of democracy Thomas Jefferson
  3. 3. We all know how internet-enabled citizen journalism/media is emerging and could change everything. financial SUSTAINABILITY is yet still a big issue.
  4. 4. No sustainability No real growth No partnership No long-term impact Just an insignificant niche ? Just another hype in the dead-pool ?
  5. 5. Spectrum of citizen media... No-time Part-time Full-time Over-time High expected quality / capital requirement Free media enterprise hard-core bloggers / podcasters Area of interest typical bloggers / podcasters Low expected quality / capital requirement
  6. 6. {} + citizen media What to do for ? + supporters investors donors
  7. 7. Especially those emerging in developing countries.
  8. 8. Business model development Product & service Cost structure Revenue / funding
  9. 9. Product & Service BASICS Uniquely competitive content (faster, different, agenda-setting, insight, gossip, etc.) Robust delivery format (website, e-newsletters, podcasts, printed media, mobile, etc.)
  10. 10. 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
  11. 11. Product & Service Capacity service option: Emerging Cases Center for Independent Journalism, Malaysia Community journalism capacity DuoCore, Thailand Podcasting capacity Siam Intelligence Unit, Thailand Data management & communication capacity
  12. 12. Cost structure Assuming low delivery cost, the worrying cost is in the content generation model. Crowd / Editorial High control Low control Hybrid community High cost Low/medium cost team Difficult to scale Highly scalable sourcing
  13. 13. Editorial team approach
  14. 14. User-generated media enterprise Crowd / community sourcing as long tail aggregator & facilitator. Manage monetary & non-monetary incentives along the tail. Recognition, Media creation incentive spectrum belonging, Money non-monetary Profit threshold for Profit threshold for stores physical stores (like with no retail overhead Profit threshold Tower Records) (like for stores with no physical goods (like Rhapsody) 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
  15. 15. Open source approach 12 million USD funding
  16. 16. (Open source approach)
  17. 17. Hybrid approach (Korea) 37,000+ citizen reporters 48 staff reporters
  18. 18. REVENUE COMBINATIONS 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 analysis, etc.
  19. 19. Investment funding Grants hybrid Loans Equity Friedrich Naumann Foundation | Open Society Institute Media Development Loan Fund | SEAPA ResponAbility | SIDA | YSEI
  20. 20. Scale-up funding case in point Media Development Loan Fund
  21. 21. What investors/donors/ supporters should do? Share investment information & develop partnership Micro venture capital focusing on free media enterprise. Consolidate funding. Explore innovative funding instrument such as loan-like grant, equity-like grant and equity-like loan. Guarantee instrument for collateral option.