A new business model in action

Politico’s groundbreaking use of the reverse-syndication model has now expanded with Reuters acting as a distributor and marketer.

The agreement will offer the two organization’s combined coverage to 60 newspapers and 40 broadcasters currently part of an advertising network run by Politico. Other media companies would be able to join.

In exchange for access to the news, the broadcasters and newspapers would allow Politico to sell online advertising on their sites under a revenue-sharing agreement.

So the members of the network get high-quality coverage at no cost – with revenue coming their way, even – and the reporters get support for journalism at its source.

There are new business models for news.

  • The real loser here could by the Associated Press.
    So might this mean specialist journalists cover the expensive stories…Washington, The Federal Reserve, etc?

    If local journalists do the same, the traditional newspapers may turn out to be the ultimate news aggragators for the local areas. If that plays out it might turn out that their real defensible advantage are the presses and delivery trucks.

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  • I can see this model working at the local level. For example, a group blogging/citizen journalism site that wants to go to the next level could partner with a local television/radio station that “gets” the Web. The station’s ad sales staff could sell ads that support paychecks for some of the online org’s staff. In return, the station gets a cut, and ad space and guaranteed permalinks to their own content. And the online org benefits from links to the day’s news on their site.

    I’d be interested in knowinv what percentages are used to divide up the revenue.

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