Media giants are navigating treacherous waters. Amid a weak ad market and the rising threat of AI, media companies are increasingly depending on reader revenue rather than ads. The Washington Post’s recent “Build It” strategy presentation highlights this shift. CEO Will Lewis’s vision centers on subscriptions, but who will pay remains a critical question.
Lewis introduced various subscription tiers—Memberships, Post Pro for professionals, Post+ for consumers, and Flexible Payments for casual readers. Despite detailed tactical plans to grow, including improved SEO, AI tools, and expanded live events, the presentation lacked clarity on the company’s editorial focus and target audience.
The big picture shows subscription media growth slowing, with publishers struggling to replace subscribers who canceled their Trump-era subscriptions. For the Post, the challenge is identifying a new audience. With revenues down 12% since 2021 and a 50% audience drop-off since 2020, finding this audience is crucial. Unlike The New York Times, which caters to progressive elites, or The Wall Street Journal, which targets business professionals, the Post’s strategy is still unclear.
The financial losses are significant. The Post lost $77 million last year, and digital revenues have declined 14% since 2021. However, with Jeff Bezos as the owner, the Post has the luxury of time and patience. Other companies, like CNN, are not so fortunate. Under pressure to reduce debt, CNN is exploring a subscription strategy but faces the challenges of cable bureaucracy.
The competitive landscape is fierce. The Daily Beast is undergoing major changes, with new leadership aiming to recruit high-profile names amid significant layoffs. Joanna Coles, the new boss, aims to reshape the newsroom, cutting costs and trying to attract big names like Brian Stelter, who declined the offer. Meanwhile, BuzzFeed faces pressure from activist investor Vivek Ramaswamy, who demands drastic changes, including hiring controversial figures to revive the struggling news site.
In this tumultuous environment, media companies must adapt or perish. The shift to reader revenue is a necessary but challenging transition. Identifying and engaging a loyal subscriber base while maintaining editorial integrity and financial stability is a delicate balancing act. As the media landscape evolves, those who successfully navigate these challenges will emerge stronger, while others may struggle to survive.
Sources:
www.axios.com/2024/05/28/media-journalism-ai-changes
nypost.com/2024/05/28/media/vivek-ramaswamy-demands-buzzfeed-hire-tucker-carlson-aaron-rodgers/