free media enterprise 2.0

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Free Media Enterprise 2.0 Citizen media, business model and financing. By Sunit Shrestha, TRN Institute

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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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Page 1: Free Media Enterprise 2.0

Free Media Enterprise 2.0Citizen media, business model and financing.

By Sunit Shrestha, TRN Institute

Page 2: Free Media Enterprise 2.0

Information is the currency of democracy \\ Thomas Jefferson

Page 3: Free Media Enterprise 2.0

We all know how internet-enabled citizen journalism/media is emerging and could change everything.

financial SUSTAINABILITYis yet still a big issue.

Page 4: Free Media Enterprise 2.0

No sustainabilityNo real growthNo partnershipNo long-term impactJust an insignificant niche ? Just another hype in the dead-pool ?

Page 5: Free Media Enterprise 2.0

Spectrum of citizen media...No-time Part-time Full-time Over-time

typical bloggers / podcasters

hard-core bloggers / podcasters

Free media enterprise

Area of interest

High expected quality / capital requirement

Low expected quality / capital requirement

Page 6: Free Media Enterprise 2.0

What to do for { }+ citizen media+ supporters investors donors

?

Page 7: Free Media Enterprise 2.0

Especially those emerging

in developing countries.

Page 8: Free Media Enterprise 2.0

Business model development

Product & service

Cost structure

Revenue / funding

Page 9: Free Media Enterprise 2.0

Product & ServiceBASICS

Uniquely competitive content (faster, different, agenda-setting, insight, gossip, etc.)

Robust delivery format (website, e-newsletters, podcasts, printed media, mobile, etc.)

Page 10: Free Media Enterprise 2.0

Product & Service

•Capacity service optionLeverage unique media capacity to service others with strategic fit.

• Reality-check growth

• More sustainable

• Lower startup risk

• CAUTION: Distraction & time to market

Page 11: Free Media Enterprise 2.0

Product & ServiceCapacity service option:Emerging Cases

Center for Independent Journalism, Malaysia

Community journalism capacity

DuoCore, Thailand

Podcasting capacity

Siam Intelligence Unit, Thailand

Data management & communication capacity

Page 12: Free Media Enterprise 2.0

Cost structure Assuming low delivery cost, the worrying cost is in the content generation model.

Editorial team

Crowd / community

sourcingHybridHigh control

High costDifficult to scale

Low controlLow/medium costHighly scalable

Page 13: Free Media Enterprise 2.0

Editorial team approachPrachatai.com

Malaysiakini.com

Page 14: Free Media Enterprise 2.0

User-generated media enterpriseCrowd / community sourcing as long tail aggregator & facilitator.

iss. +

Beyond bricks and mortar there are two main

retail models — one that gets halfway down

the Long Tail and another that goes all the

way. The first is the familiar hybrid model

of Amazon and Netflix, companies that sell

physical goods online. Digital catalogs allow

them to o!er unlimited selection along with

search, reviews, and recommendations, while

the cost savings of massive warehouses and

no walk-in customers greatly expands the

number of products they can sell profitably.

Pushing this even further are pure digital

services, such as iTunes, which o!er the addi-

tional savings of delivering their digital goods

online at virtually no marginal cost. Since an

extra database entry and a few megabytes of

storage on a server cost e!ectively nothing,

these retailers have no economic reason not to

carry everything available.

Profit threshold for

physical stores (like

Tower Records)

Profit threshold for stores

with no retail overhead

(like Amazon.com)

Profit threshold

for stores with no

physical goods (like

Rhapsody)

Media creation incentive spectrum

Money

Recognition, belonging, non-monetary

Manage monetary & non-monetary incentives along the tail.

Page 15: Free Media Enterprise 2.0

Open source approachNowPublic.com: 12 million USD funding

Page 16: Free Media Enterprise 2.0

(Open source approach).in.thBlognone.com

DuoCore.tv

Palawat.com

Page 17: Free Media Enterprise 2.0

Hybrid approachPoliticalBase.com

OhmyNews.com (Korea)37,000+ citizen reporters

48 staff reporters

Page 18: Free Media Enterprise 2.0

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.

Page 19: Free Media Enterprise 2.0

Investment funding

Friedrich Naumann Foundation | Open Society Institute Media Development Loan Fund | SEAPA

ResponAbility | SIDA | YSEI

Grants

Loans Equityhybrid

Page 20: Free Media Enterprise 2.0

Scale-up funding case in point Media Development Loan Fund

Page 21: Free Media Enterprise 2.0

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.