ConversatorIA — E01: Journalism and Sustainability

A collection of conversations with ChatGPT on various topics of vital importance for the future of media. In each installment, a meta-interview at the intersection of journalism, technology, and innovation.

In a constantly evolving world, it is undeniable that journalism must adapt to technological, social, and cultural changes to remain relevant and effective in disseminating information. Since the emergence of the internet, the media has undergone radical transformations that have changed our conception of time, space, and informational contexts.

Starting in 2023, artificial intelligence is presented as a new evolutionary gateway that promises to redefine the way we access information and approach problem-solving. If social and multimedia web revolutionized access and distribution of information, the era of artificial intelligence has the capacity to become a great catalyst for human creativity by providing synthetic production force on unprecedented scales.

It is true that this type of technology also poses profound ethical challenges for our profession, from the accuracy and impartiality of algorithms used in the generation and selection of news to the loss of jobs due to the automation of production processes in newsrooms or the ease of distributing fake news, to mention just a few.

Revisiting Jesús Martín Barbero, looking towards the near future, I am not particularly interested in understanding what humans can do with artificial intelligence, but rather what artificial intelligence can do with us.

Without avoiding the debate, widely necessary for what lies ahead, I make Carlos Scolari’s words my own: “Rather than talking about ‘replacement’, we should begin to reason and act in terms of critical integration (in opposition to the uncritical exclusion proposed, for example, by returning to pen-and-paper assessments from the 20th century).”

It is precisely in this sense that ConversatorIA is born, an experiment to try to understand the first reaches of natural language and its relationship with journalism through a series of conversations with ChatGPT. In each episode, a deep meta-interview (edited by a human 👨‍🦲) to systematize, problematize, and share everything that this artificial intelligence finds on the web about different topics of vital importance for the future of media.

After three years in which the pandemic fully dragged us into the third decade of the new century, newsrooms continue to adapt to the most abrupt digital transformation in their history. From a present where the only constant is change, perhaps a possible cartography to navigate uncertainty is not only to look for answers but to have the lucidity to pose the right prompts.

ConversatorIA — E01: Journalism and Sustainability

🗓 Wednesday, February 8, 2023. 10:20 am. La Plata, Buenos Aires, Argentina.

👨‍🦲 A.L: Good morning, how are you?

💬 I.A: Good morning! How are you today? Is there anything I can help you with? I am here to answer your questions.

👨‍🦲 A.L: Yes, I’m Alvaro Liuzzi and among many things, I am the editor of a newsletter about media, technology, journalism, and innovation. I would like to talk to you specifically about sustainability and new business models in the journalism industry.

💬 I.A: Of course, I would be delighted to answer questions. The journalism industry is in a transition period due to digitization and the decrease in traditional advertising. To survive and thrive, many media outlets are adopting new business models, such as subscription, membership, sponsorship, brand collaboration, and revenue diversification. These models are allowing media outlets to obtain direct revenue from users and find innovative ways to generate income.

Overall, I believe that new business models are an opportunity for media outlets to rebuild their financial base and improve the quality of their content. However, there are also challenges, such as discovering and retaining the audience, the need for a solid strategy and a focus on quality, and competition for user attention and time.

👨‍🦲 A.L: I understand that the latter you mentioned is key. Could you differentiate the existing business models in the journalism industry?

💬 I.A: Of course, here are some of the most common business models in the journalism industry:

1. Advertising: This is one of the oldest and traditional business models in the journalism industry. Media outlets sell advertising space on their platforms to advertisers and generate revenue from it. However, due to the decline in traditional advertising, this revenue source is decreasing.
2. Subscriptions: This model is based on users paying a monthly or yearly fee in exchange for access to exclusive content or an enhanced user experience. This model has become more popular with the rise of digital distribution and the need for media outlets to find more stable revenue sources.
3. Membership: This model is similar to subscriptions but offers users a more personalized and participatory experience. For example, members can have access to exclusive events, a members’ network, and increased interaction with the media outlets.
4. Sponsorships and brand collaborations: This model involves media outlets collaborating with brands to create content and promote products. This revenue source can be valuable, but also requires media outlets to be careful to maintain their integrity and not compromise their objectivity.
5. Revenue diversification: This model involves media outlets diversifying their revenue sources to not depend solely on one or two sources. For example, a media outlet can combine advertising, subscriptions, memberships, sponsorships, and brand collaborations to generate revenue.

Some media outlets may use one or more of these models, depending on their target audience, mission, and overall business model. However, all models have their challenges, and media outlets must find a balance between generating revenue and maintaining their integrity and objectivity.

👨‍🦲 A.L: Regarding your last response, what do you think is the biggest challenge that media faces when it comes to business sustainability?

💬 I.A: There are several significant challenges that media face in their pursuit of a sustainable business model.

Some of the biggest challenges include:

1. Adoption of new technologies: Adopting new technologies and transitioning to digital platforms is a costly and complex process that requires significant investment in infrastructure, training, and human resources. Additionally, the decline of traditional advertising has made media increasingly reliant on subscriptions and memberships, which requires investment in new ways to engage with audiences.
2. Changes in content demand: Consumers are increasingly demanding high-quality content, and media must invest in reporting, investigations, and other premium content to remain relevant. At the same time, competition in digital distribution has driven down ad prices and made advertising revenue more uncertain.
3. Pressure to maintain integrity and objectivity: Integrity and objectivity are key values for media, but can also be a challenge in the pursuit of new revenue streams. For example, collaborations with brands or sponsorships can create conflicts of interest, and media must ensure they do not compromise their integrity by accepting these revenue streams.
4. Lack of revenue diversification: Many media rely exclusively on one or two revenue sources, making them vulnerable to economic fluctuations or changes in the market. Lack of revenue diversification can make it difficult for media to maintain long-term economic viability.

However, there are also many opportunities and innovative solutions that can help media overcome these challenges and find a sustainable business model in the long term.

👨‍🦲 A.L: I agree, innovation plays a key role in identifying new monetization opportunities. Could you mention some ideas to explore in this regard?

💬 I.A: Here are some innovative solutions that media can explore to overcome challenges and find a sustainable business model:

1. Subscription and membership models: Many media are adopting subscription and membership models, where consumers pay a monthly or annual fee to access exclusive content or a personalized experience.
2. Live events and experiences: Some media are creating live events and experiences to generate additional revenue and connect with their audience on a deeper level.
3. E-commerce and related products: Media can sell products related to their content, such as books, merchandise, and other products.
4. Brand collaborations: Media can collaborate with brands to create sponsored or customized content that is relevant to their audience.
5. Crowdfunding: Media can use crowdfunding platforms to fund specific projects and generate revenue more directly from their audience.
6. Paid exclusive content: Some media are offering paid exclusive content, including articles, videos, and other resources that are only available to subscribers or members.

It is important for each media to carefully evaluate its audience, content, and current business model before adopting any solution, to ensure that it is appropriate for their unique needs.

AI-generated photo — Prompt: An old black and white photo from the year 1910 depicting a person talking on the phone while simultaneously sending or receiving data over a computer link. The photo has a high-quality damaged look.

👨‍🦲 A.L: Regarding this, what are the biggest differences between generating an audience and creating a community around a journalistic medium?

💬 I.A: Generating an audience and creating a community around a journalistic medium are two different objectives, although they can be related.

Generating an audience refers to attracting a large number of people to visit or read your content. The objective is to reach a broad base of users who are interested in the topic being covered. The main goal is to reach a wide audience to generate revenue through advertising or other sources.

On the other hand, creating a community around a journalistic medium involves fostering a sense of belonging and connection between users and the medium. The idea is to generate a group of people committed to the medium, who actively participate in discussion and who feel an emotional connection with it. The community can be a valuable source of feedback, ideas, and support for the medium, and can help increase user loyalty and fidelity.

In summary, generating an audience focuses on attracting a large number of people to your website or content, while creating a community focuses on fostering emotional connection and engagement with your audience. Both are important for the success of a journalistic medium, but depending on their business model and content strategy, one or the other may be more important.

👨‍🦲 A.L: Could you mention four examples of journalistic media that have succeeded in their sustainability strategy?

💬 I.A: Yes, here are four examples:

1. The New York Times: The New York Times has adopted a subscription model that has allowed it to increase its subscriber base and diversify its sources of revenue, reducing its reliance on advertising.
2. The Guardian: The Guardian has adopted a “public good journalism” approach and has asked its readers to make voluntary donations to help finance its research and reporting.
3. Financial Times: The Financial Times has been successful in its subscription model, with a solid subscriber base and a large amount of subscription revenue.
4. The Economist: The Economist has diversified its sources of revenue through subscriptions, advertising, events, and complementary products, allowing it to maintain a sustainable model.

👨‍🦲 A.L: The cases you share are often mentioned but are they the norm or the exception? What about small or less resourced media outlets?

💬 I.A: The cases of The Times, The Washington Post, and The Guardian are excellent examples of media outlets that have managed to make subscribers their main source of funding. However, I think they are still exceptions and that the majority of media outlets still rely heavily on advertising.

Regarding small media outlets, the situation is even more challenging. Many small media outlets have fewer resources and a more limited audience, which makes it difficult to adopt new business models. However, some small media outlets have found innovative ways to generate revenue, such as subscription, crowdfunding, and collaboration with other media outlets.

In any case, I think small and large media outlets have an opportunity to explore new business models that allow them to be more sustainable and offer a quality experience to their users. The current trend is towards models that are based on a closer and more direct relationship with users, rather than relying so much on advertising. In this sense, I think small media outlets can take advantage of their size to be more agile and experimental in the search for new business models.

👨‍🦲 A.L: Do you think the current context could lead to an accelerated change in the business model of media outlets in the next few years so that they are less dependent on advertising?

💬 I.A: Yes, I believe that the current situation is leading to a change in the business model of media outlets so that they are less dependent on advertising. Advertising has historically been an important source of revenue for media outlets, but with the increasing competition for users’ attention and the rise of ad-blocking, it is becoming less of a sustainable source of income.

For this reason, many media outlets are looking for new business models that allow them to finance themselves without relying so much on advertising. For example, they are adopting subscription models, crowdfunding, sponsorships, e-commerce, product sales, among others.

In summary, I believe that media outlets are constantly searching for new business models that allow them to be sustainable and offer a quality experience to their users. The current trend is towards models that are based on a closer and more direct relationship with users, rather than relying so much on advertising.

👨‍🦲 AL: What new professional profiles are needed in the media to develop new sustainability strategies?

💬 IA: To develop sustainable strategies for economic sustainability, media outlets may require new professional profiles that are skilled in key areas such as technology, digital marketing, data analysis, and business strategy. Some of these profiles may include:

1. Digital Marketing Specialist: This professional is responsible for developing digital marketing strategies to promote the media’s products and services, increase its subscriber and sponsor base.
2. Data Analyst: This professional is responsible for collecting, analyzing, and utilizing data to inform strategic decisions and enhance the user experience.
3. Information Technology Specialist: This professional is responsible for developing and maintaining the technologies that allow the creation, distribution, and monetization of content.
4. Business Strategy Specialist: This professional is responsible for developing strategies to diversify income and make the company more sustainable in the long term.

These professionals will work collaboratively with writing, editing, and design teams to create innovative solutions that help maintain the independence and quality of journalistic content.

👨‍🦲 A.L: Finally, what recommendations would you give to a media outlet that wants to start experimenting to diversify its revenue streams?

💬 I.A: If a media outlet wants to diversify its revenue streams, here are some recommendations I can make:

1. Focus on the quality of your content: The quality of your content should always be your number one priority. A loyal and engaged audience will follow a media outlet that offers relevant, informative, and entertaining content.
2. Explore new ways of monetization: In addition to advertising, there are other forms of monetization that may be suitable for your media outlet, such as subscriptions, sponsorship, crowdfunding, and collaboration with other media outlets. It is important to research and evaluate these options to determine which one is most suitable for your media outlet.
3. Create a community: Building a community of loyal followers is key to success in any business model. Offering a personalized experience, user interaction, and participation are some of the ways to create a strong community.
4. Collaborate with other media outlets: Collaboration with other media outlets can help improve visibility and increase revenue. Content exchange agreements, collaborations on events, or joint projects can be established.
5. Leverage digital technologies: Digital technologies such as data analysis, artificial intelligence, and automation can help improve the efficiency and effectiveness of your media outlet. Use these technologies to enhance your business model and offer a better experience to your users.

These are just some of the recommendations I can make. Ultimately, the key to success is to remain flexible and open to new opportunities, and be willing to experiment and adapt to changes in the industry.

👨‍🦲 A.L: Thank you for your answers. Would you like to say anything else to close this first episode of ConversatorIA on journalism and sustainability?

💬 A.I: Sure, I would like to add that in a constantly changing world, it is essential for media outlets to adapt and evolve in order to survive and thrive. Revenue diversification is just one piece of the puzzle, but an important one to ensure the sustainability and long-term success of a media outlet.

Furthermore, it is important to remember that journalism remains a vital part of democracy and society at large, and the financial sustainability of media outlets is crucial to ensure their ability to cover important stories and provide objective and accurate information to the public.

In summary, the financial sustainability of media outlets is essential for their continuity and long-term success, and revenue diversification is a key strategy to achieve that sustainability.

🔗 Originally posted in spanish as “ConversatorIA — E01: Periodismo y sustentabilidad” as part of the collection ConversatorIA.