- The economic model has not yet proven itself. Jamshidi’s Letter of Intent has the clearest path. It makes money from ads that cost around $700 per newsletter, which works because it targets a narrow genre of people that software and funding companies need to talk to.
- The Daily Aus took money from investors and will have to hope he can convert Instagram followers into dollars.
- Venture capitalists won’t touch media companies because they can’t generate the high returns they seek, so this way of raising money feels like a dead end.
- Estimate: “We just don’t think you’re destined for a multi-billion outflow,” says a venture capital fund manager Daily co-founder Sam Koslowski, 27. “I think that’s totally fine, that’s fine with me,” Koslowski said. The people who give money to the company want good journalism and a decent return.
Mainstream media companies like Nine, the owner of this masthead, and News Corp, have also made moves. The Sydney Morning Herald and age having a newsletter editor overseeing titles like that of national science journalist Liam Mannix Examine, Money with Jess [Irvine] and veteran editor Jason Steger’s List of books (no prizes for guessing what it is). The Australian is preparing a children’s publication called (and again, no prize for inventiveness) The Oz.
And one more thingwhile this generation of media hopes that ads, events and brand deals will make them profitable, in the United States there is a whole other generation of successful media that is subscription driven: Athletic (sports ), Information (technology) and Puck (Washington, Silicon Valley, Hollywood) are just a few.
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