Monday, August 30, 2010

Does Desperate Housewives Pay for 20/20?

The Washington Post as a company is way more than a newspaper. The company now earns 62 percent of their revenue and 67 percent of their profit from Kaplan, the college prep company owned by the Washington Post.

According to Ken Doctor and the folks studying journalism at Harvard's Nieman Lab, more and more operations we consider "news" companies aren't relying upon their news product as the primary revenue stream. Here are a few examples (listed with their percentage of revenue generated by news):

News Corp.: 19 percent (newspapers and information services); 31 percent (newspapers and broadcast)
Gannett: 94.3 percent (newspapers and broadcast)
New York Times: 93 percent (newspapers and broadcast)
Washington Post: 21 percent (newspapers and broadcast)
Thomson Reuters: 2.3 percent (Media segment)
Bloomberg: <15 percent (non-terminal media businesses)
AP: 100 percent (newspapers and broadcast)
McClatchy: 100 percent (newspapers and broadcast)
Disney (ABC News): <14 percent (broadcast)
Guardian Media Group: 46 percent (newspapers)

News Corp and Disney, for example, bring in massive revenue through movies and other forms of entertainment.

Is there anything wrong with making a profit elsewhere and putting that money toward the journalistic product? Are there conflicts that could arise?

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