The news industry is facing one of the biggest backlashes. With the emergence of social media and other forms of obtaining news, newspaper revenues are at an all time low.
Oddly, amidst all the crisis is the Texas Tribune which was awarded $1.5 million from the Knight Foundation. A quote found on Forbes, perfectly explains their situation. “In Harry Potter terms, we’re the boy who lived,” says Evan Smith, the Tribune’s editor in chief. “We have managed, for whatever reason, to make it work in a way that others have not.”
It’s true! They have managed to climb out of the rubble left behind from the damage of the crashing news business model.
They have devised a new “news business model” called revenue promiscuity. Instead of relying so heavily on ad revenue like the old business model does, they will rely on a number of sources. They will using one/third of the money, $500,000, to support their intelligence gathering consultants. The rest of the money will be saved for fundraising efforts, marketing, and sponsorship opportunities.
They will be hosting events that will bring in money. In their about section, it says “As a 501(c)3 organization, The Texas Tribune is supported by individual contributions, major gifts, corporate sponsorships, and foundation grants. The Tribune also generates earned revenue from events and specialty publications. Contributions from the Tribune’s launch campaign will subsidize operations through 2012. By the end of 2012, The Texas Tribune is forecast to be better than break even on $4.5 million in revenue.”