Has the Media Found Its New Business Model?

Bloomberg, the international news agency, recently fired dozens of journalists. The layoff of reporters/journalists is nothing new, but the direction the company is pointing is probably one that’s about to become the new “norm” for most publications, as explains Julia Greenberg in a recent Wired article, “Bloomberg’s Future is the Future of News for Everyone.”

“This is not about downsizing; it is about refocusing our considerable resources,” Editor-In-Chief John Micklethwait wrote in a memo.

The Wired piece points out two major trends that Bloomberg is going to focus on: becoming more niche but also more global, and getting leaner while also spreading to as many platforms as possible.

What does this mean?

Niche and global

This apparent paradox is a business logic applied to the news industry. The idea is to focus on specific markets – in Bloomberg’s case, business, finance, markets, economics, technology, and politics – while having a broad reach. This means that they will keep specializing in these beats to become the go-to source of information on the subjects as they affect business decisions around the world. “By focusing on its strengths, [Bloomberg] hope[s] to differentiate to reach the broadest possible audience.”

Leaner and ample reach

This again is another principle of business translating to an industry that has struggled to reinvent itself. The goal is to do more with less. A smaller, more focused team of reporters will bring in-depth news to the platforms the readers prefer. “By distributing news on Twitter, in push alerts, or on Facebook, media organizations are increasingly putting news not only where readers are but in the process also reformulating the news such that it best encapsulates what readers might be looking for on that platform.”

From the market perspective, Bloomberg’s decision makes sense. When considering that, like all other companies, it has investors that demand positive returns on their investment, the shake up is more than justified.

Media corporations have lagged to find a new business model, however, because it is not a trivial operation. What you see on paper might not necessarily materialize in practice, as explains Greenberg: “Ultimately, the challenge for any news organization in the Internet age is that journalism doesn’t scale the way a purely digital product does. Code can travel the world with a click; but news, at least for now, still needs people.”

And, as business professionals know, finding, hiring and retaining qualified people is usually the most expensive and most important element of any industry.

What do you think of this “leaner” media organization trend?

If you’re in healthcare, insurance, technology or other professional services industries, and need help with a PR, marketing or social media campaign, contact Scott Public Relations.

Like what you’ve read? Follow Scott Public Relations on Facebook , Twitter, Pinterest, LinkedIn and Google+.