How to build your own media company - without VCs or billionaires
Nov 27, 2024
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Jason Koebler, co-founder of 404 Media and former Vice Media tech head, shares his journey of launching a successful media company with just $4,000. He discusses the challenges of creating a sustainable model without relying on rich investors and emphasizes the importance of quality journalism. Koebler highlights the innovative strategies behind their subscriber-based funding and the impact of community-driven tech journalism. They also explore the dynamics of independent media and the need for diverse voices in tech reporting, bridging niche narratives with audience engagement.
404 Media successfully launched with just $4,000 and operates on a subscription model, prioritizing journalism quality over traditional funding sources.
The publication focuses on niche tech stories and ground-up reporting, directly engaging with communities to shape their editorial direction.
Despite their achievements, the founders recognize the challenges of long-term investigative journalism and the need for evolving audience engagement strategies.
Deep dives
The Founding of 404 Media
404 Media was founded by four former Vice journalists, including Jason Kebler, aiming to create an independent publication focused on tech journalism without relying on venture capital or wealthy benefactors. Each founder contributed $1,000 to kickstart the operation, prioritizing journalism quality over business models from the outset. Their approach emphasizes building a sustainable journalism platform that generates revenue from subscriptions, which they activated from day one. This strategy reflects a shift away from traditional media financing, aiming to offer a new, independent alternative in the evolving media landscape.
Subscription-Based Business Model
404 Media operates on a subscription model that has proven to be successful, with 7,120 paid subscribers generating significant revenue. Subscribers can choose between different tiers, including a Super Fan tier for dedicated supporters, ensuring an ad-free experience for paying members. The majority of revenue comes from subscriptions, complemented by some advertising for non-paying users. Unlike typical media companies that depend heavily on external funding, 404 Media emphasizes a self-sustaining model where the founders can pay themselves competitive journalism salaries.
Niche, Ground-Up Reporting
The journalism style at 404 Media is characterized by a focus on niche stories and ground-up reporting that dives into specific internet communities and tech impacts on individuals. For example, articles cover unique topics like the clandestine actions of DVD kiosk users and how AI is reshaping societal interactions. This approach often involves connecting with communities directly, fostering an authentic understanding of various tech-related issues. Their desire to produce stories that resonate with readers on a personal level shapes their editorial direction, as they prioritize both niche interests and broader societal themes.
Addressing Challenges in Revenue Generation
While 404 Media has established a successful subscription business, it does not intend to solve the broader media crisis in its entirety. The founders acknowledge the limitations of their model, particularly regarding long-term investigative journalism that may require more resources and staff. Despite this, they believe that independent journalism has a place in the future of media, especially as more publications emerge with similar structures. Their focus remains on producing compelling, adversarial journalism that engages readers and brings attention to significant issues in the tech industry.
Evolving Media Landscape and Audience Engagement
With traditional social media platforms evolving, 404 Media's founders emphasize the importance of audience engagement and adapting to new distribution channels. Their strategy includes being active on various social networks while remaining committed to creating quality journalism that retains subscriber interest. They believe that people are willing to support alternative media models that resonate with their values, fostering a movement towards independent journalism. However, they also recognize the need for balancing niche content with wider appeal, aiming to become a trusted source for tech reporting.
Lots of people start media companies using money from rich people. Jason Koebler and his colleagues did it themselves, using a grand total of $4,000. That was back in the summer of 2023. Now 404 Media, the tech news + investigations site they started after leaving Vice Media, is a success story. Koebler tells us how they started, how it’s going, and what he’d like to do next.