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For journalists contemplating creating a media company (like our MJ Bear Fellow Laura Amico), the possibilites feel limitless — until you hit your first cash crunch. Journalists are in a particularly difficult position. Serving the public is not lucrative, and the way the industry has made money in the past is entering a free fall. A recent report from the Project for Excellence in Journalism noted that while digital represents the future of the industry, the present is grim with seven dollars in print revenue lost for every digital dollar gained.
Check out this video from Inc. on seeking investments, and pay special attention to what investors are looking for. The world of journalism and the world of startups may be galaxies apart, but it’s becoming clear to everyone that an ad-based model is a flawed model.
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The Mail now has about 30 staff in the United States to create stories for its American readers; the Guardian also has 30 in a new bureau in New York, and has experimented with translation, posting some of its Arab-spring coverage in Arabic. Neither seems to think of itself as essentially British any more, at least online.
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According to a study by Oliver and Ohibaum, 68% of UK consumers source news content online compared to 75% from TV and 54% in newspapers.
But though only 3.8% pay for online news, the percentage of users paying for content increases on mobile (9%) and tablet (19%).
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