
If you’ve been following our coverage of Journalism Online, the pay-for-news venture founded by Steve Brill, Gordon Crovitz, and Leo Hindery, you know how they plan to generate revenue for news sites. What hasn’t been clear is how the firm itself will make money.
But in a document submitted to the Newspaper Association of America, which was just made public, Journalism Online reveals its business model: They’re asking for a 20-percent cut of subscription revenue (after credit card fees).
I checked with Cindy Rosenthal, the firm’s spokeswoman, who confirmed the information and said they weren’t charging clients anything beyond the commission. Journalism Online says it has signed letters of intent with media companies representing 176 dailies but won’t disclose their names. Guardian News and Media and The Milwaukee Journal-Sentinel are the only known clients, and most major newspaper companies have said they aren’t on board.
[UPDATE: 10:36 a.m.: In a brief chat with Brill as I waited for the bus this morning, he said, "What we tell publishers is, we only do well if you do well."]
Journalism Online had been the highest-profile of several firms known to be shopping paid-content solutions to news sites. But yesterday we revealed that Google is also making a play in that area, and much of the ensuing coverage suggested a new, if wildly imbalanced, rivalry between Google and Journalism Online. That will depend on how serious Google’s intentions are.
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