The Business of Content with Simon Owens

If you follow the digital media sector, you’ve likely noticed that advertising as a business model is on the wane. With the Facebook and Google duopoly sucking up just about all the advertising money flowing online, publishers have been forced to find alternate revenue sources to fund their content. One such source: subscriptions. More and more publishers are rolling out subscription and membership programs, and many have been successful. One such success? Innovation Leader, a small business-focused publication that launched in 2013. It carries no advertising, has a hard paywall, and charges subscribers $695 a year. I recently sat down with one of its cofounders, Scott Kirsner, and asked him about why he settled on such a high price point, how the publication markets to new subscribers, and how it approaches content development.

In 2010, a college dropout named Kyle Taylor launched a blogspot account. He was taking on odd side jobs in an attempt to crawl his way out of debt, and the blog was a way to write about lessons he learned on making and saving money. Traffic was scarce, at first, but over a period of years the blog slowly gained an audience. Eventually, brands started approaching Taylor about publishing sponsored posts, and revenue for the site, which was called The Penny Hoarder, quickly grew. Flash forward a few more years, and The Penny Hoarder now has a huge audience, dozens of full-time staffers, and millions in annual revenue. To get a better understanding of how the site grew this big, I interviewed John Schlander, The Penny Hoarder’s managing editor. I asked him about how his staff develops its story ideas, how the site makes money, and whether the rise of the gig economy plays a part in its success. Let’s jump right into it.

When Christopher Wink graduated college in 2008, he had no intention of launching a media company. He just wanted an entry level journalism job that would allow him to work his way up within the industry. But back then, when newspapers were hemorrhaging revenue and announcing mass layoffs, there weren’t a lot of journalism jobs to pass around. So, out of desperation, he and a couple other college friends launched a Wordpress blog called Technically Philly. It covered the local tech scene, an industry that at the time was largely ignored by regional news organizations. Eventually, the blog gained traction and profitability, and the growth allowed Wink and his friends to launch local tech blogs in Brooklyn, Baltimore, DC, and Delaware. I interviewed Wink about the early days of running an unknown tech blog, what it takes to launch a site in a new city, and why he’s never been all that interested in building out an advertising business.

Back in January, Facebook made an announcement that shocked the publishing world: It was tweaking its Newsfeed algorithm so there would be less emphasis on Facebook pages and more focus on what your friends were sharing. Reach for Facebook pages was expected to plummet, and publishers that had grown addicted to Facebook’s free referral traffic girded themselves for an all-out decimation of their businesses. But while there have been some clear victims of the algorithm change, the actual data for who’s been hurt by it is noisy. Some publishers have seen a dip in Facebook engagement, while others have remained steady or even improved. That’s the case for U.S. publishers, at least. But what about Europe? To find out, I interviewed Steve El-Sharawy, head of innovation at EzyInsights, a platform that tracks Facebook engagement for publishers. I asked El-Sharawy about how European publishers reacted to the announced algorithm changes and whether there are any clear winners and losers in the ordeal.

It’s impossible to know which company launched the first branded podcast, but one of the earliest well known examples was GE’s The Message. Produced in collaboration with Panoply, The Message was a science fiction documentary that generated millions of downloads and a rabid fanbase. Ever since GE’s runaway success with the medium, other major brands have waded into the podcast waters, with large companies like Walmart and Goldman Sachs launching their own shows in recent years. But what makes a branded podcast good? How do you avoid making it sound like just another ad? And how does a successful podcast help a company’s bottom line? To answer these questions, I interviewed Rachael King, founder of the podcast consulting company Pod People. She recently helped produce podcasts for companies like Samsung and Medium, and we talked about the rise in demand for the services she offers and how one develops the skillset needed to become a podcast consultant.

Will Sommer grew up in a conservative household and garnered an early interest in Rush Limbaugh and other right wing media figures. When he went to college, his politics changed, but his obsession with conservative media never went away. In late 2016, that obsession paid off. Sommer was one of the first reporters to write about Pizzagate, the conspiracy theory that a DC pizza parlor was the home of a child sex ring. After a man was arrested for firing a gun inside the restaurant, his reporting gained national relevance. Shortly afterward, he launched Right Richter, and he soon became one of the foremost experts on the obscure right wing media outlets that, in some cases, produce conspiracies that bubble all the way up to Donald Trump’s Twitter account.

Back in 2013, the Obama Administration rolled out a new version of Healthcare.gov, with disastrous results. It was the public unveiling of the Obamacare exchanges that would allow anyone to buy health insurance on the open market, and yet the website was almost impossible to navigate without encountering errors that would prevent you from signing up for insurance. At the time, Charles Gaba was running a freelance web designer business in Michigan and writing for the liberal blog Daily Kos during his free time. Frustrated by the botched rollout and the amount of misinformation floating around about how many people had actually enrolled in the exchanges, he made a public call to other Daily Kos bloggers to help him count the number of Obamacare enrollees. That project eventually evolved into ACAsignups.net, a standalone blog that eventually captured the attention of policymakers, journalists, and anyone interested in the state of U.S. healthcare. Traffic to his blog exploded, and he became an overnight celebrity in the healthcare space. I interviewed Gaba about how he’s monetizing his website and the role he’s played in helping save Obamacare from GOP sabotage.  

Every year we get new articles questioning whether “email is dead.” With the proliferation of social media and messaging apps, it seems only natural to ask what will replace a decades-old electronic messaging system that really hasn’t changed much in all the years we’ve used it.   But email has remained resilient, and it’s even experienced a renaissance of sorts lately. In the wake of Facebook’s algorithm changes that are designed to hurt content providers, more and more publishers are launching new email newsletter products. It’s impossible these days to fire up a podcast or watch a YouTube video without encountering an ad for Mailchimp. And of all the email providers, Gmail is king. The Google-operated service has over 1 billion users and is one of the few major email platforms that is actually continuing to innovate. In 2014, it opened up its API to developers, allowing them to build new products that Gmail users can install. It was around this time that Ajay Goel was on the lookout for an opportunity to launch a new business. It was while he was looking around for a tool that would send mass emails that he came up with the idea for Gmass, an add-on that allows users to schedule and send mass emails directly from their Gmail accounts. I interviewed Goel about his long career of building email-based tools and why he doesn’t think email’s going away anytime soon.

There’s no question that newsletters are on the rise. Legacy publishers are constantly launching new newsletter products. Quartz’s Obsession newsletter, for instance, picks seemingly random topics and goes deeps on them. Vox’s Voxcare newsletter, a favorite of mine, covers new developments in healthcare policy. But we’re also seeing a number of media startups that are producing newsletters without corresponding websites. The Hustle, a business-news oriented newsletter that has over 500,000 subscribers, keeps all its content contained within its newsletter and publishes none of it to its website. The same can be said for theSkimm, a female-focused newsletter launched by two former NBC producers, and Lena Dunham’s Lenny Letter. So what’s the business model for these types of newsletters? Of course many of them rely on advertising, but we’re also seeing a number of new products enter the market that allow newsletter publishers to charge money to their subscribers, often in exchange for access to extra premium newsletters. For example, Hot Pod, a newsletter about the podcast industry, sends out a weekly free newsletter each Tuesday and a second one every Friday for subscribers who pay $7 a month. Given the rise of paid newsletters, we’ve seen a number of new platforms spring up to service this type of publisher. One of those platforms is Revue, a newsletter distribution platform that was designed with content publishers in mind. I interviewed its founder Martijn de Kuijper about the platform’s offerings and the best way for publishers to convert casual newsletter readers into paying subscribers.

With over 150 million users, Spotify has the ability to launch the careers of previously-unknown music artists. It does this by featuring these artists on its playlists, which are maintained by a mixture of users, Spotify staff, and algorithms. Playlists count for half of all listening on Spotify, and getting your song listed on a few of the most influential lists, some of which boast millions of subscribers, has the ability to thrust you onto the Billboard 100 charts. Several rap artists featured on Rap Caviar, one of the app’s most powerful lists, have become overnight sensations. But with individual users wielding that much power, it shouldn’t be surprising that some have succumbed to illicit backroom deals in which artists pay the playlist owners to include their songs, a practice that’s been illegal since the payola scandals in the 1950s that led to a Congressional investigation into radio DJs. Daily Dot managing editor Austin Powell recently published his investigation into the black market for Spotify playlists. I interviewed Powell about how these markets operate and what Spotify is doing to stop it.