Poynter Online
Go


Top Story

Wall Street Walks Away From Newspapers
Most Recent Articles
Most E-mailed
Recent Comments
Recent Tags
Community Activity

Poynter Training
Poynter Seminars
Small, in-person training experiences.
News University
Today's most popular courses on NewsU, Poynter's e-learning site for journalists.
Webinars
Our online classroom is just a click away. Learn more.
All Webinars
Home > Online & Multimedia
Tools: Text Sizeor, Print, e-mail, Permalink, Share
1:08 PM  Apr. 6, 2006
Citizen-Media Start-ups Ply Innovative Business Models
By Steve Outing (More articles by this author)

Some industry observers have suggested that there's a second -- albeit more rational -- Internet bubble forming. Investor money is flowing again to Internet start-up ventures, including enterprises that have a citizen-media business model.

CitJ BUSINESS MODELS:
ARTICLES IN THIS PACKAGE
Traditional Media Adopts CitJ
Some news organizations are overcoming fears and opening up to citizen journalism.

CitJ's National Networks: Will They Bloom?
Entrepreneurs and media companies eye the opportunities in aggregating local sites.

Independent CitJ: Web Sites and Networks
Citizen-media practitioners can do it on their own.

It's Not About the Money
For some citJ publishers, it's about public service, not profit.

Ideas From CitJ Gurus
Get creative to succeed with citizen media.
Here are a few of the new companies worth watching as they evolve. Viable business models for citizen media might appear from any of them.

Flickr.com

Photo-sharing Web site Flickr, now owned by Yahoo!, is worth watching for how it's beginning to monetize some of its services (which were mostly free during the early days, other than a premium account that allowed for more photo uploads than with the free plan). While it's not fully a "citizen journalism" Web site, people do often use it for that purpose -- with many people posting photos of major news events and assigning them the same descriptive "tags" so that others can find them all. (e.g., tsunami)

There's money in citizen photos, and Flickr is pointing the way. Calling it a "pilot program" for now, Flickr has partnered with several other companies to allow people to order physical products like multi-photo books, posters and postage stamps made from photos posted on Flickr. You also can order a DVD movie of your photos, or DVD backups or slide shows.

Flickr promises more, so keep an eye on the site for ideas as it commercializes further.

NowPublic.com

An interesting and worthwhile potential use for citizen journalism is to support collaboration between journalists and the public. An example of that is NowPublic.com, which brings bloggers and citizen reporters together with photographers. It's a collaborative Web site that enables people to identify important stories and write news articles, and then other people illustrate them with photos taken at the scene. So, for a citizen reporter's account of a fire, others who witnessed the blaze might add their photos or video (or simply additional text information) to the report via NowPublic.com. (Here's an example on another news topic.)

The company Web site describes NowPublic.com this way: "NowPublic combines the power of news readers, bloggers, photographers and writers to create fast, open-source news coverage of the most important stories emerging anywhere in the world." Founder Michael Tippett explains it further: "The proliferation of digital cameras, camera phones and blogs has created a latent throng of reporters who are perpetually on the brink of breaking tomorrow's news. NowPublic is increasingly becoming the repository of this footage when it emerges."

Is there a business model for this type of company? If Tippett's theory is correct and this collaboration of news starts attracting significant readership -- usurping some of the power of the mainstream press -- then ad revenues will follow.

Gather.com

Gather.com has been described as "a kind of eBay for online writers and their readers." The site gathers content on all manner of topics, and the idea is that, eventually, popular writers will be able to make a living by posting their work and attracting an audience. Space will be sold to advertisers, and ad revenues will be shared with the writers.

With a huge pile of miscellaneous content, how's anything supposed to get noticed? The site ranks content based on how many readers it gets, how readers assess the quality and how much discussion it generates. So the best stuff, in theory, attracts the most readers and advertising money.

Gather.com is also recruiting bloggers with this ad-share model. Hobbyists with blogs may be able to make some money by being on Gather, even if they can't get a deal with a blog network or figure out how to make money blogging independently. Who knows -- if the concept proves successful, the best bloggers on Gather.com might even do better than with a blog network's rates.

The company's founders are positioning Gather.com as a "democratic" alternative to the mainstream press -- since it brings in voices of non-professionals and because the site's users "vote" on what's the best content.

Writers are compensated with "Gather Points," which can be exchanged for goods from partner companies. Soon, according to the company, top earners will be able to exchange their points for cash. With that scheme, Gather.com appears to be positioned to attract more of the enthusiastic experts, rather than professional experts who would expect a better payout.

Nevertheless, the idea of compensating citizen journalists or contributors with something other than hard cash is a model that other citizen-media operators will want to consider.

Newsvine

Newsvine is an innovative citizen-journalism-driven Web site that's trying to take advantage of the concept of using the public as a "giant brain" and news-reporting and -editing resource. It combines feeds from the Associated Press and ESPN, recruits independent bloggers and gets the input of readers (via comments as well as original articles from them).

Users of the site are able to rate the importance of stories, creating a sort of reader-generated editing system that determines story position, giving the most popular articles front-page prominence. So, what the site is really about is melding mainstream journalism with the power of citizen or grassroots journalism.

The site will survive on advertising revenues, and users who make submissions -- assuming that they are popular -- will share in that.

Newsvine is creating Web sites for more than 200 U.S. cities (example), so imagine a localized news service that combines mainstream news sources with the power of citizen involvement and editing. The company may partner up with local newspapers, which could syndicate their content through the Newsvine network.

Digg.com

Digg.com is another news Web site in which "the people" edit the news. That is, people add links to news stories that they like to Digg.com, then other Digg users can vote them onto the front page (or reject them). The best stories rise to the top thanks to the rating efforts of the site's users. We are the editor.

The service has quickly become quite popular, and when a story is added to Digg.com, a huge traffic spike goes to the article -- what's been termed "the Digg effect." (It's similar to when a news story get struck by "the Slashdot effect.")

The site currently includes Google AdSense as its core revenue stream.

What can citizen-media practitioners learn from Digg to support their operations? I think it's the value of "citizen editing." Digg's early popularity and buzz factor seem to indicate that the concept has some strength, and that should translate into advertising dollars. Other citizen-media operations might want to think not just about citizen reporting, but also about citizen editing.

Scoopt

Scoopt is a citizen-news-photography site that collects images that people snap of news events, then serves as an agency to sell the photos to mainstream press outlets, sharing the revenues. It's one of several companies that wants to help eyewitness news photographers get paid for their best images.

What Scoopt reveals, I think, is that citizen news photography -- the small slice of it that's high quality and worthy of wide public view -- won't be free for much longer. Business models for all news organizations that rely on or plan to rely on citizen photography will want to plan for this.

Tools: Print, e-mail, Permalink, Comment On This Article, Share
Username
Password
New User? Signup Now
Poynter Careers