Media organizations around the world are searching for new revenue sources. Since often the best lessons are in miscalculations, #mediadev collected real-life stories of times when things didn’t go to plan.
Can you imagine how boring life would be if we succeeded at everything we did, if we never had to respond to dynamic situations or unanticipated interruptions? We are socially programmed to think that failure is a bad thing. However, sometimes the best lessons are in those precise mistakes or miscalculations that don’t bring about the expected results. Against the background of emerging global trends, new technologies, and rapidly changing communication environments, media organizations around the world are constantly searching for sustainable revenue sources. For all of us it is vital to exchange mutual challenges and learn from each other.
Here is a real-life story from a media outlet in the field that could easily happen to any of us as we try to pursue new ways for media viability:
Subscriptions are a popular and sensible business model pursued by media outlets looking for a sustainable revenue source that enables future income forecasts to be drawn and provides a steady base audience to rely on. However, using basic economic and business theory without doing market research can be risky.
Imagine you are a successful radio network that has a small core audience that subscribes to you. You need to expand your listenership and to increase your income in order to grow. You have been discussing with your colleagues the best ways to get more people to sign up for subscriptions and what strategies to adopt. In the end you agree that the best way to attract people is to reduce the cost of the subscription using the logic that by reducing the price you will increase demand for the product. You decide to reduce the subscription drastically – by 50% – with the hope that this will also have the dramatic impact on the other side and once you have people subscribed you can increase fees incrementally over time as you build your loyal base. Unfortunately, the mass uptake isn’t realized and the number of subscribers remains the same. This results in a 50% reduction in revenue and a loyal base who now expect the product for less in the future.