IN THE MODE.

Journalists: make like a Brazilian hooker

with 3 comments

I’m not going to be one to point out again that there is some extensive discussion about possible models to monetise digital news at the moment. Well actually I am – but I do have a wider point.

As we all now know super-pimp Rupert let it be known that all (that’s every one mind you, not just some, pay attention at the back) of his titles would be starting to charge for access to their online outlets. I believe this is kicking off with the Sunday Times, which to me is a better proposition than most. And we have all of the hoo-ha debate about freemium, premium, paywalls and the rest.

Paul Carr hit out with a great ‘who cares?‘ piece in the Telegraph; Brad Rourke made an interesting point about the distinction between news and journalism, and what can possibly be charged for each; while Simon Jenkins followed up with a thoughtful piece on how news organisations should learn from the music business and look outside their traditional revenue streams. Nice.

And of course the wonderful Charlie Brooker made some solid economic proposals too. Hard to argue with his concept of magic coins – one which I’ll come back to later. But I’ve got another idea. Why shouldn’t journalists put their money where their mouth is, and get their asses on the corner to sell their wares. What I say is: make like a Brazilian hooker.

This isn’t an idle thought. I’ve put a lot of thought into Brazilian hookers over the past few weeks – but more specifically into the rather unique business model adopted by Brazilian bordellos. It works like this:

  • You (yes, you) sign up to be a hooker at one of these long-running establishments, after deciding which one fits with your personal style and sexy ethos
  • You pay a flat fee per day, week or month to the madam, monsieur or whoever the fabulous and no doubt kindly proprietor is
  • All the money you make from your trade, you keep
  • That’s it

Now why couldn’t this work for news – or using the distinction some people have made – at least journalism? Journos pay a fixed fee per month – the news organisation provides the service and shelter – and the writers get to keep every penny their stories earn.

So newspapers would essentially become a provider of service – they would bring expertise in editorial, the delivery platform, a secure means of taking and distributing payment. But also bring with them a firmly established set of values, mood, decor and style which a journalist could choose to associate themselves with (and vice versa, I guess).

Ah, yes you say – but how is this payment made? No one wants to pay for content. Well firstly there’s advertising. The newspaper of course will provide (or at least contract out) the ad-serving technology and delivery mechanisms. And popular stories will attract traffic. So all ad revenue from a particular page goes to the journalist who wrote it. Simple – as with hooking it’s survival of the fittest (pun intended).

Secondly this model enables subscriptions to be a far more attractive proposition for consumers. Say you start off by paying a tenner. This gives you the right to view say 1000 pages at a penny each. Some pages could cost more – perhaps Page 3 in the Sun, or other premium sections – but let’s say most cost a penny. Each time you read a story, the balance drops by 1p. You can go back to the same story without paying again – this only seems fair. And of course at any time you can top up your balance – augmented no doubt by a willingness to undergo behavioural and more intrusive types of advertising.

But let’s say you share the page. From a form on the site itself – via Twitter, Facebook, email, whatever. If your friends go and read the story via your link (free of charge of course) the ad revenue from that impression is split – between you, the author and the newspaper. And this tops your account back up a little, so you get to read more incrementally more news through the mechanism of sharing things you know your friends will like. The newspaper gets reimbursed for the content and ad serving. The author gets more payment. And crucially brands who are advertising get to reach more like-minded readers. Readers could even have their sharing sponsored by a brand of their choice.

But deep down, as it always has been and always will be, it’s about great content. One of the main complaints over the past week at least seems to have been that people won’t pay because they can get the same thing elsewhere for free from the BBC. Bullshit. Good news outlets have always differentiated themselves.

I’m sure there’s more to this. Things like creation of revenue to fund younger aspiring hacks who can’t afford to pay the newspaper fees to start off with. Perhaps micro-economies could start to develop around superstar writers. I don’t know. And a tiered model so that it’s fairer to those further down the scale.

So come on journos – cough up. And come on economists – surely my witless ramblings can’t actually work?


Written by domrodwell

August 12, 2009 at 6:37 pm

Posted in Thinking Mode

3 Responses

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  1. Hi Dom,

    Where to start?

    Well this who pays for journalism question has been banded around for a long time and believe me I have sat in many forums where the topic has been discussed well past closing time.

    There are two things that have happened to the media industry.One that technology now means that everyone has the ability to publish almost at no cost,almost instananeously and with no consequence for their action.Thus breaking a business model that had existed since the middle of the 19th century.

    This,by itself, would have decimated the industry but combined with rapidly falling advertising revenues,has speeded up the process to the point where the sector is dying.

    Now the consequences of that are that without information relevent to the democratic process,as citizens we are unable to take control of our destiny.

    So taken to its extreme the media will be full of Michael Jackson,Peter Andre and Jordan.

    And yes I suppose as journalists,if we believe strongly in getting the message across then we should put our money where our mouth is and stomp up front to get a return at a later date.

    Personally I would and I have but a lot of people aren’t in that position.

    But then there is the question of return.As you allude,nobody wants to pay for content but you are correct that people will pay for quality and differentiation.That is what Rupert Murdoch believes,hence he will turn the Sunday Times into an online product that will give the reader something different that they will pay £1 a week for.

    The problem though is the other side of the economic model scarcity and its correlation with price.

    Going back to my opening gambit,the ease of publication means that there are multiple sites which replicate news and multiple quality comment.

    Quality and differentiation are already out there.Just look at the amount of political bloggers.

    But there is another distortion in the market in the Uk,the good old BBC.When they just stuck to TV and radio,newspapers could differentiate themselves but now with their tentacles reaching into all areas,they are no different to any other news provider,except that they are subsidised.

    So any model relying on scarcity is blown out of the water.

    What’s the answer-well if I knew that I wouldn’t be sitting here,I would be doing it.

    The answer I think is a combination of many,the BBC perhaps subsidising other media outlets,independent journalists branding themselves,probably freelancing and running multiple projects to share the risk and reward.Maybe some government intervention to safeguard information deemed “necessary” for the public good and a general information tax which could be levied on the information providers ie the ISP’s.

    Anyway a great piece and I hope that it engages much discussion

    nigelbarlow

    August 13, 2009 at 4:09 pm

  2. [...] Journalists: make like a Brazilian hooker « IN THE MODE. I’ve put a lot of thought into Brazilian hookers over the past few weeks – but more specifically into the rather unique business model adopted by Brazilian bordellos. It works like this: [...]

  3. [...] Journalists: make like a Brazilian hooker « IN THE MODE.A modest proposal (and a pretty smart one) from Dom Rodwell: "Why shouldn’t journalists put their money where their mouth is, and get their asses on the corner to sell their wares. What I say is: make like a Brazilian hooker." (journalism newspapers business_models ) [...]


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