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TheJournal.ie & The Future of Journalism for the IIEA

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TheJournal.ie & The Future of Journalism for the IIEA

  1. 1. The online news business What I’ve learned over the last 18 months and why i’m optimistic about the future @brianfallon, CEO, TheJournal.ie
  2. 2. A quick introduction...
  3. 3. # Site Name Unique Users (‘000) # Site Name Unique Users (‘000) 1 Google 2,293 11 Independent.ie 841 2 Facebook 1,821 12 Federated Publishing 828 3 Microsoft Sites 1,717 13 BBC Sites 825 4 Yahoo Sites 1,519 14 New York Times Sites 802 5 Distilled Media 1,422 14 Apple 788 6 Glam Media 1,226 16 Irish Times Group 787 7 RTE.ie 1,121 17 VEVO 775 8 Ask Network 991 18 Viacom 707 9 Wikipedia 982 19 Eircom 650 10 Amazon 957 20 eBay 649
  4. 4. Irish Online News Market Traffic By Publication (000’s of unique users) 900 675 450 225 0 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Source: ComScore TheJournal.ie Independent.ie IrishTimes.com RTE.ie IrishExaminer.com BBC DailyMail.co.uk
  5. 5. 2 major trends in the news business right now...
  6. 6. 1. Readers are moving online...
  7. 7. Newspaper circulation is falling... 200000 150000 100000 50000 0 Jan 2005 Jun 2009 Dec 2011 Jun 2014 Dec 2016 Jun 2019 Dec 2021 Source: ABC Island of Ireland Report, Internal Projections Irish Independent Irish Times Irish Examiner
  8. 8. Internet usage is exploding... Irish Internet Usage (% of population) 100 75 50 25 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: EuroStat, Red C Decoding Digital Trends, Internal Projections Desktop Internet usage Smartphone/Tablet Usage
  9. 9. But is that good news for online publications?
  10. 10. ...not necessarily...
  11. 11. Online readers have instant access to unlimited free content...
  12. 12. And the majority are not reading content produced in Ireland Percentage of Irish internet traffic that landed on Irish publishers 9% 91% Irish Publisher Non-Irish Publisher Source: ComScore Key Measures Ireland
  13. 13. And they don’t really want to pay for news either • The New York Times expects a upper bound of 5% of online readers to convert to online subscription
  14. 14. 2. Advertisers are (slowly) moving online
  15. 15. Online ad Spend is the only ad sector growing Online Ad Spend Ireland (% of total spend) 16.00% 12.00% 8.00% 4.00% 0% 2009 2010 2011
  16. 16. ..but not as fast at it should! The Entitlement Gap % Time Spent vs % Ad Spend by medium 50% 46% Entitlement Gap worth 38% ~€200m per annum 33% 33% 28% 25% 23% 13% 14% 11% 7% 3% 0% 0% TV Radio Print Internet Mobile Time Spent Ad Spend
  17. 17. ...and advertisers have unlimited choice too
  18. 18. So is it possible to earn enough money online to pay for journalism?
  19. 19. Let’s do some (beermat) maths...
  20. 20. First, what’s the size of the audience we can sell/sell to... • Top 3 Irish Sites are tied: • ~700k users per month • ~35m page impressions per month
  21. 21. 1. Advertisers • Potential revenue from advertising: €3.8m • 35 million pages/month with 3 ads per page gives 105 million ad impressions/month or 1.26 billion per annum • News sites can earn at least €2 to €4 per 1000 ad impressions. Taking the average, this adds another €3.8m of revenue • Note: does not include revenue from mobile advertising
  22. 22. 2. Subscriptions • Potential revenue from subscriptions: €3.3m • 3% of 700,000 unique users is 21,000 paying users • Using the NYT entry level subscription of $195/annum (€155) gives annual revenue of €3.3 million (or €5.4 if 5% conversion)
  23. 23. Total Revenue: €7.1m (or if optimistic €10m+)
  24. 24. How much journalism can you afford with that?
  25. 25. Here’s THE reason I’m not worried about the future of journalism • If TheJournal.ie had revenue of €7m we could afford a newsroom of approx 80 journalists!
  26. 26. 5 reasons i’m optimistic about the future
  27. 27. 1. Online is due a lot of growth (And as our growth continues, we’ll be able to hire a lot more journalists)
  28. 28. 2. Journalists have more sources for stories than ever before (Open & Collaborative Journalism)
  29. 29. 3. Journalists can tell stories in exciting new ways (Interactive Multimedia)
  30. 30. 4. People have never been more engaged in the news (Social & Mobile are changing the game)
  31. 31. 5. Lots of change = lots of opportunity!
  32. 32. Finally, what public policy do we need?
  33. 33. Public Policy Changes: • Defamation reform for user generated content • Open Government: • Open Data • Open Courts • Open RTÉ
  34. 34. Questions?

Editor's Notes

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  • Both offline and online\n
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  • 5%-6% per annum for the decade\n
  • 2014, smart phone usage exceeds desktop\n
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  • Remember, they have unlimited access to FREE content, so why pay?\n NYT operates the world most successful general news paywall\n
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  • - Super low overheads\n- new collaborative journalistic methods coupled with old fashioned news gathering\n- death of print != death of journalism\n
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  • The internet has opened up collaboration\n
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