Monday, May 13, 2013

So who's making money publishing on the web?

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  •  - CNN Money - May 10, 2013
  • New media companies -- from Gawker to Buzzfeed -- have sprung up to feed every niche (and then some). Which are actually profitable?

    FORTUNE -- The web has given rise to a number of notable digital publishers serving almost everyone's tastes, from straightforward news to guilty pleasures. For every Pulitzer-winning 10-part series on wounded war veterans, there are just as many frothy posts like the "10 funniest cat GIFs of the week." What about earnings? Some like The Awl have been profitable from the outset; others like Vox Media predict they'll be in the black soon. Here's a snapshot of just several new media businesses and how they're doing.

    Right - Huffington Post co-founder Arianna Huffington. Credit: Twitter.
    Founded:  2005
    Readers:  73.1 million worldwide
    Employees:  Not available. (Estimated: Up to 500.)
    Who runs it:  Greek author, columnist, and influencer Arianna Huffington
    What it's known for:  What isn't it known for? In eight years, HuffPost has become one of the most popular news websites in the U.S., with a wide array of content, from hard news and celebrity commentary to aggregated stories from outside outlets and award-winning reportage. In 2012, it was awarded a Pulitzer in National Reporting for a 10-part series on war vets by senior military correspondent David Wood called "Beyond the Battlefield."
    Backstory:  Launched by Huffington, businessman Kenneth Lerer, deceased commentator Andrew Breitbart, and Jonah Peretti, creator of Buzzfeed, as a hub for news, commentary, and select third-party articles. Think Drudge Report, but more mainstream.
    Backers:  $1 million in initial funding with an additional reported $20 million later, followed by the $315 million acquisition by AOL in 2011.
    Business model:  Largely composed of digital advertising but also content syndication and e-commerce.
    Revenues:  Not available, but the outlet once aimed to triple sales from $30 million in 2010 to $100 million last year.
    Profitable:  Briefly in 2010, but not since its acquisition.
    What's next:  Aggressive international expansion and more video across the entire site, according to a HuffPost spokesperson.


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