Region 1 Visual Journal(ism)

Convergence, integration, cross-media, inter-departmental collaboration. All sounds good but can a mid-size newspaper make any money at it? At monday note, Frederic Filloux, an editor for the Norwegian group Schibsted, debunks the myth that leaner, compact newsroom can produce a general news site that operates in the black. His suggestion: diversify for that elusive net gain.

He sees a too-wide gap between the average revenue per unique visitor and how many visitors must be on a site to make turn a profit. Industry average for the ARPV is 14-35 cents per visitor. If a paper has about $1.4 million in monthly costs- the site needs 8.3 million UVs to break even. A lot of eyeballs.

The possible light at the end of the economic dark hole lies in those “alternative subsidy streams” to support news gathering. Diversify. Build profit silos separate from the newsroom by exploring “service contracts, requests for expertise, or corporate communication assignments?” One successful example is The Washington Post Company which owns Kaplan. That investment grew 21% in 2007.

Are mid-size and smaller newspapers nimble enough in their business planning to incorporate a profit silo concept? Back up your gear and pick up a book. Newsroom of the future will be full of MBAs.