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Plus Report - By Thomas Baekdal - September 2014

The Economics of Individual Media

Last week we talked about the amazing new world of individual media, what it takes to be successful as a individual media company and the whole dynamics of this amazing new future of media.

If you haven't read it already, I very much encourage you to do that first, as this is the second part of that series.

In this article we will talk about the economics of these individual media entities. Specifically there are two things we need to look at. One is how different the market is, the other is how much people can expect to earn. Both are very different from anything you see in the traditional media world.

If you are a traditional media person, this is what you are going up against. And if you are person who is thinking of becoming an individual media company, this will give you a good overall picture of what you can expect from it.

First, let's look at the market. Imagine that the graph below illustrates your market. Each line is a different category of content (or products), and the size of each line represents its mass-market potential.

This could be any market, it's just an illustration. For instance, it could be the sport news market, in which case the bars would represent different forms of sport. You see how the really popular sports like NBS, MLB, NFL, Nascar have a huge mass-market appeal, while most other types of sport have a much lower mass-market appeal.

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Thomas Baekdal

Founder, media analyst, author, and publisher. Follow on Twitter

"Thomas Baekdal is one of Scandinavia's most sought-after experts in the digitization of media companies. He has made ​​himself known for his analysis of how digitization has changed the way we consume media."
Swedish business magazine, Resumé


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