Funding models

Overview

Four ways a media product can be funded, audience being the product in an advertising model and freemium model.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   Name four ways a media product can be funded.

   Model answer

   Advertising, subscription, direct sale or pay-per-use, and public funding.

2. 2

   How does advertising funding shape a product?

   Model answer

   The product must deliver a large or valuable audience and must remain acceptable to advertisers, which constrains both content and tone.

3. 3

   What is meant by the audience being the product in an advertising model?

   Model answer

   The publisher's customer is the advertiser, and what is sold is access to the audience's attention.

4. 4

   How does subscription funding shape a product?

   Model answer

   The measure becomes keeping the subscriber, so range, quality and continuity matter more than the reach of any single item.

5. 5

   Give one advantage of subscription over advertising for editorial independence.

   Model answer

   The publisher answers to its readers rather than to advertisers, so it can carry material that would deter a sponsor.

6. 6

   Give one disadvantage of subscription for the public.

   Model answer

   The content reaches only those willing and able to pay, which divides the audience by income.

Other ways to work this

The same content, four other ways.

What is inside Levo

Six ways to work the same material.