What’s our Revenue/Investment Model? What options are available? How do we evaluate an option? What questions do we need to ask? What data do we need to track? What do revenue producers want? How can we give it to them?

Subscriber Oriented Publications Readers pay for articles they want Addl revenue comes from adding topics, quantity, and media types that are attractive –A financial journal covering stocks adds coverage of commodities –A magazine adds additional content pages providing more depth, variety, expertise, etc. on its existing topic areas –Stratfor starts to offer podcasts in addition to text-only Typically expensive Paid for by employer Narrowly topic targeted, like a trade rag Examples –Stratfor (old pricing structure $750) –Jane’s –Institutional Investor Investment Question: What is the cost of the additional content I must add to gain an additional Member?

Advertiser Oriented Publications Advertisers pay for access to attractive readers Addl revenue comes from adding new advertiser-oriented sections –Homebuilders advertise in Homes pages –Bars advertise in Sports pages –Theaters advertise in Weekend Entertainment supplement Relatively inexpensive or free Paid for by individual Often general interest Examples –Austin American Statesman –Wall St. Journal –Economist Investment Question: What do I have to spend to generate an additional dollar of ad revenue?

Aggregator Model Members pay a single service to provide them with diverse GENERIC content Additional revenue comes from offering “premium” content and/or larger content packages –A cable provider offers Showtime, HBO –A stockbroker provides Level II quotes as an upcharge Typically offers a variety of price points Member value is a function of convenience as much as options –Possible to overload buyer with choices –Ability to customize display/format is competitive edge –Editorial judgment by service provider is additional value Revenues come from a combination of Member fees and advertising revenues Examples include cable companies, websites like Morningstar that sell access to SEC reports, Yahoo news, etc. Investment question: What investment in additional content must I make to acquire an additional profitable member?

Website Publishing Allows a Hybrid Websites offer a combination of paid and free content Some sites have used the “XM Radio (paid/no commercials)” model instead of the free radio (free/ad supported) model Granular control on the net allows for a combination of free/paid content –NYT.com is free; TimesSelect is paid –Summaries of WSJ articles are free; the whole article is paid –A web-version of Statesman.com is free; the Newstand version (essentially pdf) is paid “Mixed media” –We can offer a commercial-free site to paying Members and commercials to non- paying consumers –We can offer our content to people willing to sit through a commercial –We can produce our own content but complement it with others’

Investment Evaluation Plan Establish initial benchmarks Formulate goals/plans for changes Define criteria for success/failure within a relevant timeframe Put tools in place to provide the information Make sure that all the necessary players are aware/involved Test Report back Determine explanation for success/failure Repeat

NYT/TimesSelect TimesSelect is an up-charge for access to certain articles.

Wall St. Journal Online WSJ Online provides article summaries for free but requires a subscription for the full article.

Austin American Statesman The AAS provides its content for free, but if you want the look of the newspaper, you can subscribe for what is essentially a pdf version.