Monday, July 27, 2009

"For healthy media, half of income should come from subscriptions"

OhmyNews founder-CEO Oh Yeon-ho is a robust frontiersman of tech Korea. And here is his theory of health:
"For a news media to remain healthy, it will have to earn at least 50% of its income from the sales of content or paid subscriptions. Despite our best effort, OhmyNews still relies on advertisers for more than 70% of its revenue," Oh said.

He added that if 100,000 readers joined the venture contributing KRW 10,000 a month, OhmyNews would be able to survive without relying on advertising revenues.

Buy why only online start-ups? Pay-ever-more-for-content may be good strategy -- nay, an inescapable reality -- for traditional media too. Consider this: In the first quarter of 2009, newspaper advertising plummeted almost 30 per cent, magazine advertising revenue fell more than 20 per cent, and broadcast television revenue slipped nearly 12 per cent.

Also read: "Stop giving away content via Web, Walter Isaacson advises media"
Can selling news via the Web save newspapers?
Can selling news via the Web save newspapers?
"A sustainable model emerges"

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