Earlier this month former Wall Street Journal reporter and editor Jessica Lessin launched a technology and business news site – The Information – that got the media world buzzing. The Information costs a hefty $399 a year, or $39 a month, and offers no free content up front, which is one of the strictest paywalls on the market. At first most media professionals were skeptical, and some were even condescending toward Lessin’s lofty goals. But it got everyone in the media world thinking – in an era where content is fast and free, can Lessin carve out a niche audience among those who value quality over quantity?
Lessin decided to leave WSJ and start her own publication because she saw an opportunity to go after an underserved market, which she describes in a letter from the editor as “professionals in technology and in industries being upended by it.” Lessin told AllThingsD that her goal is to focus on deeper, more investigative analytic reporting instead of simply reporting the latest breaking news. The publication currently has eight full-time employees, all with impressive professional backgrounds.
Many media professionals are questioning The Information’s bold business model. Bigger, more established media outlets have tried less expensive paywalls in the past and failed and many newly established outlets have folded or struggled due to unsuccessful paywalls, such as the crowdfunded outlet Matter. The Information is also choosing not to host any ads, which means its only sources of revenue are its subscribers and investors.
But the boldness of The Information’s business model could be what makes it successful. Business Insider did the math and discovered that the publication only needs about 1,800 annual subscribers to break even, and if it garners 5,000 subscribers it will have a profit of $1 million.
The publication could easily acquire the number of subscribers it needs because it is aimed at professionals who are accustomed to paying for content that will help their businesses. If an employee makes the case that a subscription to The Information could help increase the company’s bottom line, the boss is unlikely to say no.
Regardless of whether The Information is successful, it is admirable that Lessin has taken the first step toward creating a sustainable publication that produces high-quality journalism.
Tags: Business Model, Journalism, Media, Paywall Filed under: COMMUNIQUÉ PR, Media, News