Arms-length revenue generation. The Next Newsroom will be linked to other community businesses and ancillary services that will generate revenue to help support journalism. Just as The Washington Post Company generates revenue from Kaplan, Inc., a national provider of educational services, The Next Newsroom will be supported in part by complimentary business enterprises in the local community.
This arms-length business partner could be a coffee house, or a training program for media literacy in schools, or a community publishing/printing/mailing operation.
The Next Newsroom will buy into a partnership business that can help launch and support the news-gathering operation, or look for a business to start that can help support The Next Newsroom.
These three sources of new revenue will generate about 30% of the cash needed to keep The Next Newsroom operating.
As new technologies help build revenue from local online search engines and tracking click-through to online advertising, these revenue streams likely will grow.
Revenue estimate from arm’s length business partnerships: $1.2 million The Next Newsroom estimates 1/3 of its revenue would be generated by the arm’s-length business partner or partnerships established in the local community. These revenues could include sharing operating cash flow from this business, extra advertising or tiered and tailored content sold at the business, income from e-books, literacy training, and other services. These revenues would come either from the users/participants of the CSOP model, or from non-users of the CSOP. This revenue estimate here assumes an average of $9/month x 11,000 household who aren’t regular participants in the CSOP households (or 25% of remaining non-user households).
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