Thread by @jarroddicker

Business models are product strategy.

Revenue is a proxy for how we serve customers & should create something new (a blend of advertising/consumer or new service).

Reading @risj_oxford report & seeing media/journalism once again going in the wrong direction.

Thoughts /1

@risj_oxford When polled “What’s the most important revenue stream for my company going forward?:

Reader Revenue: 50%
Reader Revenue & Advertising: 35%
Advertising: 14%

Concerns:

1) No new revenue. "A blend of/outside ads/subs"
2) No acknowledgment of The Passion Economy (@ljin18)

/2

@risj_oxford @ljin18 Media leaders need to go beyond advertising & subscriptions. Branching beyond a singular business model is critical. Pivoting from one (ads) to another (subs) is the definition of insanity. This requires both operational (how things work) & inspirational (value) reinvention.

/3

@risj_oxford @ljin18 The Passion Economy (see Substack) is a competitor for market share, consumer revenue AND talent. It’s accessible to all, offers shared products/services for operations & rewards individuality.

It gives ownership & agency to the creator AND consumer.

/4 a16z.com/2019/10/08/pas…

@risj_oxford @ljin18 This means that creators own their monetization, their subscribers (ie. the list) & manage their relationship with customers.

This means consumers can support/subscribe to creator-specific (not brand). Offers agency (choice) & utility (rewards). It’s a loyalty-driven model.

/5

@risj_oxford @ljin18 All media businesses are looking to bring back an element of ownership. In legacy media, it’s ownership of a brand’s relationships (subs), distribution (platform) and partnerships (ads). In new media, it’s ownership of one’s individuality (content, customer,, monetization).

/6

@risj_oxford @ljin18 So when polled “what’s the most important revenue stream for my company going forward?” legacy media should respond:

We don’t know yet.

Advertising & subscriptions should be a focus to maintain & grow business. A blend or method “outside of” those two will be the future.

/end

@risj_oxford @ljin18 ^ thread inspired by recent "how do we make money? what's journalism's business model?" conversations w/ @jeffjarvis @jayrosen_nyu @dkiesow

@risj_oxford @ljin18 @jeffjarvis @jayrosen_nyu @dkiesow also! @sarafischer @Zielina @nuncaduermo and I will be going deep on media models and news revenue diversification tonight at CUNY. Details below:

eventbrite.com/e/lets-talk-ne…

Here’s this report ^ reutersinstitute.politics.ox.ac.uk/journalism-med… cc @Chronotope