Free Media Enterprise 2.0

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Information about Free Media Enterprise 2.0

Published on November 27, 2007

Author: sunitshrestha



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.

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

Information is the currency of democracy Thomas Jefferson

We all know how internet-enabled citizen journalism/media is emerging and could change everything. financial SUSTAINABILITY is yet still a big issue.

No sustainability No real growth No partnership No long-term impact Just an insignificant niche ? Just another hype in the dead-pool ?

Spectrum of citizen media... No-time Part-time Full-time Over-time High expected quality / capital requirement Free media enterprise hard-core bloggers / podcasters Area of interest typical bloggers / podcasters Low expected quality / capital requirement

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

Especially those emerging in developing countries.

Business model development Product & service Cost structure Revenue / funding

Product & Service BASICS Uniquely competitive content (faster, different, agenda-setting, insight, gossip, etc.) Robust delivery format (website, e-newsletters, podcasts, printed media, mobile, etc.)

Product & Service • Capacity service option Leverage unique media capacity to service others with strategic fit. • Reality-check growth • More sustainable • Lower startup risk • CAUTION: Distraction & time to market

Product & Service Capacity service option: Emerging Cases Center for Independent Journalism, Malaysia Community journalism capacity DuoCore, Thailand Podcasting capacity Siam Intelligence Unit, Thailand Data management & communication capacity

Cost structure Assuming low delivery cost, the worrying cost is in the content generation model. Crowd / Editorial High control Low control Hybrid community High cost Low/medium cost team Difficult to scale Highly scalable sourcing

Editorial team approach

User-generated media enterprise Crowd / community sourcing as long tail aggregator & facilitator. Manage monetary & non-monetary incentives along the tail. Recognition, Media creation incentive spectrum belonging, Money non-monetary Profit threshold for Profit threshold for stores physical stores (like with no retail overhead Profit threshold Tower Records) (like for stores with no physical goods (like Rhapsody) Beyond bricks and mortar there are two main number of products they can sell profitably. retail models — one that gets halfway down Pushing this even further are pure digital the Long Tail and another that goes all the services, such as iTunes, which o!er the addi- way. The first is the familiar hybrid model tional savings of delivering their digital goods of Amazon and Netflix, companies that sell online at virtually no marginal cost. Since an

Open source approach 12 million USD funding

(Open source approach)

Hybrid approach (Korea) 37,000+ citizen reporters 48 staff reporters

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.

Investment funding Grants hybrid Loans Equity Friedrich Naumann Foundation | Open Society Institute Media Development Loan Fund | SEAPA ResponAbility | SIDA | YSEI

Scale-up funding case in point Media Development Loan Fund

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.

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