This set of spreadsheets incorporates two models: hyperlocal and the sales, support, and technology framework that we believe is necessary to optimize businesses in the ecosystem. We believe an organization that enables advertising networks and other services to support the local news ecosystem is both a sustainable business and will make individual hyperlocal news organizations more profitable. We divided a sample metro market of 5 million people into many smaller markets (20k, 35k, and 60k) to reflect the towns and neighborhoods that comprise a large metropolitan market. Note: all models assume the local daily newspaper has gone away.
View the Framework/Hyperlocal business model as a Google Document here. (To make changes to this document, simply click File>>Create a copy or File>>Export.)
Or, download it as an Excel file here.
Highlights & Assumptions:
- Operating income (EBITDA) for the framework, year three: $1.3 million.
- Operating income for hyperlocal businesses, year three: Large, $66k; medium, $32k; small, $26k.
- In this new ecosystem, we envision a mature market of 5 million people supporting 99 small, medium and large blogs.
- Hyperlocal news organizations are viable without the framework, but are more profitable with the ability to sell ads across a wider network.
- Likewise, the framework can scale to other cities and become more profitable. For ease of projecting, we’ve limited that company to one metro market.
Click here to see the other models. (The New Business Models for News Project has been funded by the Knight Foundation.)