Obituary to media or new beginning?

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Funding of News Media is collapsing. The digital media in the US is usually a couple of years ahead of us. That’s why I went to meet Director of Nieman Lab at Harvard University, Josh Benton and many other directors of different media companies last week in Boston and New York.

The freedom of speech or the democracy don’t benefit from local media losing the game to the global giants. The engine halls don’t recruit many people.

The message was bleak.

Funding of News Media is collapsing. The biggest disappointment of last spring was when New York Times’s second trial to implement a paywall failed. Another challenge is the funding of quality journalism by digital media advertising. The winners in the new media are viral services, such as The Huffington Post and Buzzfeed, of which the business model is entirely based on Facebook’s ecosystem and content.

The real winners are the global internet giants, such as Facebook, Google, Yahoo and AOL. Last year, the display advertising was purchased in the US market by 22,2 billion USD, of which 11,2 billion USD was turned by these companies. In growing mobile advertising, the share of the same giants was 64%.

The most interesting modern News Medias, such as The Quartz, The Daily Beast and Atavist are brilliant in their design and journalism, but they are not profitable.

The freedom of speech or the democracy don’t benefit from local media losing the game to the global giants. The engine halls don’t recruit many people.

From Boston point of view, our future is in Mobile business, where the advertising is automated, and best possible journalism is provided by content marketing companies and philanthropists.

See for yourself on www.goldmansachs.com

A digital native company needs to learn how to act and communicate as an omni channel media - however, the funding model is not worth to copy. At the same time, it’s clear that the old media houses need to renew themselves: look for and invest on digital services and journalism, even if a patent solution on funding hasn’t been found yet. But, it’s already sprouting somewhere.

Freedom of the press Day was advertised in the Finland's biggest national news paper Helsingin Sanomat with an image with bars. In Finland, a journalist will surely not be arrested for a scoop on politicians, but will lose his or her job. A small language group like us should defend its journalists, authors and photographers.

A digital native company needs to learn how to act and communicate as an omni channel media - however, the funding model is not worth to copy.

For example like this:

1. If a reader finds a free media valuable, the best way to support, is to subscribe.

2. The VAT of media produced in Finland should be decreased to 0%. I.e. the EU media regulation doesn’t apply to France.

3. Along with research of journalism, research and professorship for funding should be developed.

Because otherwise, soon enough there will be nothing more to research.

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The author is the CEO of Aller Media.

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