Grassroots need water, too

I don't imagine it was a tough conclusion to come to, but Alan Mutter at Reflections of a Newsosaur now doubts volunteerism will come to journalism's rescue. He writes:

Although a number of do-it-yourself ventures have embraced modern technology to attempt to fill the void created by the retrenchment of the mainstream media, there is scant evidence to date that any have succeeded to the point that they will support the sustained efforts of professional journalists. ...

Even where the will to go forward remains powerful, there is no satisfactory answer to the practical question of how long talented, capable and motivated individuals can afford to commit themselves to self-assigned journalistic endeavors that so far are not known to have generated any appreciable income for the writers.

Mutter cites the soon-to-be defunct Gannett blog as evidence of this latter point.

Not getting paid is a sure way to spoil just about any job in a capitalistic society.

Is YouTube going down the tubes?

If the ubiquitous YouTube can't turn a profit - if billions of eyeballs and Google's best efforts at monetizing popular content can't turn a profit - then what chance do newspapers have at turning popularity, a strong brand name, interactivity and free online content into a solid moneymaking venture?

From the Silicon Alley Insider:

Credit Suisse estimates YouTube will manage to rake in about $240 million in ad revenue in 2009, against operating costs of roughly $711 million, leading to a shortfall of just over $470 million. This half-billion dollar loss comes after more than a year of feverish experimentation in various forms of advertising, cross-product embedding, licensing and partnership deals. YouTube is adamant that ultimately they’ll find an advertising solution that will enable the ungainly behemoth to reach profitability. Looking at the math, it doesn’t seem likely.

So what can Google do to turn the financial picture around?:

Google could take a lesson from its neighbor, Hulu, and focus only on proprietary content with existing consumer loyalty and real monetization prospects. With its massive audience, this is a viable option, and a direction in which YouTube has already taken some baby steps. Axing user-generated content would seem to be anathema given the site’s roots, but it may be the surest way of putting the business into the black.

Alternatively, YouTube could implement a subscription structure for the site, either monetizing certain members-only content, or requiring users to create a paid account in order to contribute content. With so many marketers looking at YouTube as part of their viral strategy, this too could be a viable option.

That last bit sounds an awful lot like what newspaper companies are being encouraged to do.

More trouble with free

Awhile ago I mused most profusely about the ridiculous notion that newspapers would continue to invest in journalism when they're giving away the news for free.

A side effect of not charging for the words writers produce is that owners feel less obligated to pay the writers for their work. Huffington Post is on the vanguard of a new business model, whereby fame is the currency of choice.

HuffPo just blew into the windy city and Kevin Allman is neither impressed with the work nor the fantasy pay scale.

More trouble with free

The wildly popular Gawker is cutting what it pays its writers.

Toll lanes on the information superhighway

We are living in a special time. A time as magical and carefree as it is fleeting. It is our version of free love. Rivers of free information are flowing through the intertubes and, for a small fee, we have unfettered access to most of it. A virtual orgy of free information. Generations to come will look back on this time with green-eyed jealousy, wishing the world would offer them a chance at the innocent experimentation and instant gratification we had, bitter at us for not realizing just how good we had it.

Because it's going end. Free is, as newspaper companies will vouch, not a workable business model. Free is never really free in the long run. And Internet providers are already plotting ways to cash in on our new found habits.

The latest idea is placing meters on the information flow. The more we use the Internet, the more we'll pay for it. It probably won't happen for a few years - they need more of us to get hooked on the goods before they raise the prices.

Unless, of course, we give up on net neutrality and let the big guys to squeeze out the little guys. That should free up some bandwidth. But even that might only forestall the inevitable.

So, gather ye gigabytes while ye may. Download what you can. Check out every corner of the Internet before they put the fences up and start charging entry fees. Make sure you enjoy this time because it soon shall pass.