New Business Model for Journalism in Sharing Economy
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All the News That's Fit to Pay For: Future of Journalism in the Sharing Economy Eric Ortiz l USC Annenberg l COMM 208 l April 8, 2015
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Transcript of New Business Model for Journalism in Sharing Economy
All the News That's Fit to Pay For:Future of Journalism in the Sharing Economy
Eric Ortiz l USC Annenberg l COMM 208 l April 8, 2015
Everyone has a story to tell.
You could tell a story.
With your smartphone.
And get paid.
Way things worked pre-Internet.
Life in the middle is unsustainable for most legacy media organizations.
This is state of our world.
Changing the world starts on Main Street.
Local news traffic is rounding error.
• Circulation/ad revenue shrinking.
• Papers can't make up difference digitally.
• News sites attract 3 percent of all Web traffic – 85 percent for national news site, 15 percent for local news
• Local news gets .5 percent of overall Web traffic.
• Average local newspaper gets 5 minutes per month per Web user.
Source: Matthew Hindman
Two big questions.
1. How can local news organizations make news stickier?
2. How can local news attract national audience?
Ways to make local news sticky.
• Improve technical experience of local news sites -- speed up load times and optimize for mobile.
• Improve content recommendation systems.
• Publish one piece of content every hour.
• Do A/B testing, create content for social media, produce more videos and multimedia content.
• Empower community members to be storytellers.
Solutions cost money.
Start with mobile economics.
By the numbers
• 2 billion people in world have smartphones• More than half of people with smartphones post
original photos and videos online• By 2020, 5 billion people in world will have
smartphones• 99.5 of consumers use mobile devices to access
content/information• Smartphone ownership is higher for Hispanic adults (61
percent) African-American adults (59 percent) than white adults (53 percent)
• 75 percent of consumers use smartphones to watch video online
Mobile exceeds PC Internet usage.
What can smartphones do?
• Text• Take pictures• Shoot video• Record audio• Detail location• Detect infared light• Read data• Make money• Turn into microscope• Perform car diagnostics• Connect to USB stick or mouse• Measure distances• Measure altitude and air pressure• Get temperature• Detect fever
Crowdsource for facts.
What is crowdsourcing?
• Using crowd as a source – Ferguson, Boston Marathon Bombings, MLB playoffs, in-class live blog.
• Participatory journalism – Collaborative storytelling, many contributors, World Cup, ISIS, Ebola, Barack Obama speech.
• Sharing economy – Uber business model, digital currency, utilitarian, practical, helpful, Crowdopolis.
• Community newsrooms -- Professional guides training people in neighborhoods to be mobile storytellers.
• Storytellers -- Document every story that matters. They all matter. Rashomon effect, 360-degree, interactive narratives.
• Platforms, multimedia, network effect – Need people to use something for it to be popular
See life as it happens.
• Periscope
• Meerkat
• Hang With
• Field59
Cover complex news in real time.
• Arab Spring
• Boston Marathon Bombing
• Ferguson
• Ebola
• Ottawa shooting
Collaborate to cover same story.
Go to remote locations.
360 Degrees Live from Hong Kong
Get Multiple Perspectives.
Anyone Can Be a Reporter.
Tell interactive stories.
With ease and speed.
Master the 3 C’s
Content.Context.
Continuous.
Stay charged.
Mobile reporting tools
• Twitter: Microblogging• Instagram: Photo sharing• Vine: Six-second vido• Tout: Social video• Videolicious: Quick, easy video editing• audioBoom: Audio sharing• Ustream: Live stream video• iMovie: Edit video• Seene Review: 3D images• WhatsApp: Group messaging• Pinterest: Curated visual content• SoundCloud: Upload, record, promote, share audio
More mobile reporting tools• Facebook: Social network• Skyro: Record, play, share audio content• DropVox: Record voice memos to Dropbox• Evernote: Notebook. Save photos, audio files, weblinks• Banjo: Social discovery• Emergency Radio Free: Police scanner• Expense Magic: Document expenses, send PDFs via
email• CamScanner: Take photos of document, convert into
PDF• Storehouse: Combine photos, videos, words to tell
story• Photosynth: Panorama photo• Portable charge: Jackery, Anker, Lumsing
Emerging markets
U.S. newspaper ad revenue: $63.5B in 2000, $23B in 2014Google ad revenue: $70M in 2001, $50.6B in 2013
Billion dollar opportunity
Stories we can tell with smartphones
• Breaking news• Conflict zones• Geopolitics• Protests• Government• Local business• Metro coverage• Sporting events• Red carpets• Trading floors• Man on the street• Live streams• Profiles• Features
Bellingcat.comGrasswire.comDemotix.comWikinews.orgNewsvine.comAllvoices.com
Citizen journalism sites
What’s next?
• All-in-one apps: Evrybit
• Virtual/augmented reality: Junaio
• Wearable devices: Apple watch
• Unmanned video: Drones
• Digital/mobile currency: Apple Pay, Bitcoin
• Sensors: iBeacon
News business needs new business models.
Think innovative.
Provide best user experience for journalism.
Can iTunes for news model work?
Micropayments for journalism.
Do due diligence.
Let users pay what they want.
Embrace retail revolution.
Mobile proximity payments in U.S. will exceed $189 billion in 2018, a compound annual growth rate of 153 percent from 2013.
Source: Business Insider
Establish strategic partnerships.
Follow Uber model for news.
Train community storytellers.
Partner with news organizations.
Create virtual story board for people to post story requests.
Story requesters set price.
Go native (advertising).
Facilitate native advertising for mom and pop shops.
Reward high-quality content.
Share the wealth.
• Split ad revenue.• Tip jar.• Freemium
model.• Incentivize
people to create high-value content.
Storytellers build reputation.
Create virtuous cycle.
Quality content
Informed citizens
High traffic
Generate revenue
Strengthen community
Build global network of local news bureaus staffed by locals.
Say hello to new CNN. Crowdsourced News Network.
Road to new CNN.
1. Train community storytellers.2. Establish strategic media partnerships.3. Create virtual story board.4. Use mobile-first platforms to generate high-quality content.6. Integrate native advertising into workflow.7. Gain trust of community members and local businessess.8. Reward content creators.9. Pump money back into community.10. Repeat in communities around the world.11. Build network of trusted sources.
Long live journalism.
Contact
Eric Ortiz
Email: [email protected]
Phone: 860-751-9771
Twitter: @erictortiz, @evrybit
Web: getevrybit.com
Blog: getevrybit.com/blog
