Salon in Dire Straits
An anonymous reader submits this well-linked blurb:
"It appears the end may be near for Salon Media Group. Their auditors doubt the company can stay in business for very much longer. Despite recently reaching nearly 40,000 subscribers, they haven't been able to make up for lost ad revenue in a down market. As a result, they've accumulated a deficit of about $75 million. Their best known asset, besides Salon.com, may be The Well, one of the earliest and most influential online communities. I hope that it can survive if Salon does not."
Salon could do a _print_ magazine.
Have their online content lag behind the print for a month, and sell the magazine. Advertisers are comfortable with print. They know the way print works.
Then you just have to get the info out before it gets stale. Revolutionise the printing process so it only has a one month lead time instead of a three.... hmmm....
Oh yeah, I forgot, it's called "Wired". Oops.
Reeses
It's no /. and even though it's generally slanted for the left-thinking crowd, I'll miss Salon if it goes belly up.
They've had some very insightful articles and interesting columnists (I really miss reading Camille Paglia). The handwriting was on the wall when they adopted the subscription model. Most people aren't willing or even able to pay for content.
Don't anthropomorphize computers, they don't like it.
A site like Salon, as excellent as it is/was, simply cannot make it by charging for content. Other then porn, content isn't something people will pay for on the web, especially what are basically magazine articles.
If Salon was serious about surviving, it should have canned it expensive SF offices and become basically a virtual company. Web space is cheap, and writer can live anywhere.
Too bad they couldn't see the obvious.
I have spent many hours reading Salon. It's one of the sites I check every day. Even after they moved most of their content to the premium service there were enough interesting articles left in the free section to make it worth skimming. Unfortunately if they do go under, the only really interesting news/opinion webzine left will be Slate.
I wanted to support them, and thought about subscribing. But I've always had strong concerns about their financials, and was worried that after I forked over my 30 dollars that they'd go under. This is one of the reasons I'm reluctant to pony up money for any web site. There's no guarantee that even after I subscribe that the site will still be there for the length of my subscription. I know it's not much money, but still if I pay for a year, I want to know that the site will still be there at the end of that year.
Of course I don't know why anyone bought the stock. It was obvious that they had no real strategy for turning a profit. As a business Salon is a disaster. They put out the equivalent of a weekly magazine on a daily basis. It's a shame that quality content just isn't enough.
I'm not an actor, but I play one on tv.
Maybe I don't understand business as much as I think I do, but whatever happened to growing a business. All these (especially internet) business that take a boatload of cash and thy to "hatch themselves into the world" fully grown keep going bust. How does a website that only hosts articles get many millions of dollars in debt before turning a profit? It's not like they have warehouses of inventory to maintain. It's a freekin' server cluster the content management and writers. Half the people reading this could probably build the business infrastructure in a month or so.
Marketing costs? Ok, ya got me there, but that many millions worth? How much are they paying their writers? How much Salon content couldn't they have hired english major to write at a fraction of the cost?
I think the world needs to start going back to "building businesses", which has become a lost art. Make the model work...THEN take it to the multi-million level. Not throw in millions, then figure out a model that works.
-Pete
Soccer Goal Plans
It's ironic that a left-wing magazine would have the kind of cash flow that conservatives want for the government. Too bad, so sad.
Democracy Now! - your daily, uncensored, corporate-free
Salon in Dire Straits
from the partying-like-it's-salon1999 dept.
You actually went with this over "from the can't-get-your-money-for-nothing dept."?
TheFrood
If you say "I'll probably get modded down for this..." then I will mod you down.
Other then porn, content isn't something people will pay for on the web, especially what are basically magazine articles.
I disagree. I think people are not willing to pay the subscription on a regular basis in seamingly large amounts (even $5 a month per site is too much). But if it was a few cents here and there for an article or for a page of posts, people would be much more willing to pay. We need micropayments, and we need them bad. What I don't understand is why they still haven't appeared and spread, the market for them should be huge. The only explanation for it that I've seen makes me sad...
Is there something outside the marketability of political orientation that is a factor in this difference in success? Does political orientation give a business an advantage in a Capitalistic society? Or is it that Republicans are just looser with their wallets?
Strange women lying in ponds distributing swords is no basis for a system of government.
While Eye Socket, Montana might be a little extreme, the fact of the matter is that their journalism could have been done in many places other than SF. I mean, do you think Ariana Huffington lives in San Francisco? If they want to find out about life in the big city, they pay some freelance writer in the big city to tell them about it.
I think they could have done qutie well journalistically had they lived in any of a number of other largish cities that weren't nearly so pricey.
This sig has been temporarily disconnected or is no longer in service
Most of Salon's expensives come from actually paying well-respected and well-written authors.
Writers (professional writers, which you are clearly are not) do not work for free. Good writers (which Salon has in arguably larger numbers than ANY other news-op-ed-online-only publication) are very very expensive.
So it's more likely than not, not about location, or about offices or management. It's about paying the writers for the great thought-provoking content (when have you noticed a grammar or spelling error on Salon?) and bandwidth, in that order of cost.
Advertisers are comfortable with established print magazines. If Salon went to a dead-tree distro model, they'd be just another new publication competing for ad dollars and shelf space. The failure rate for new print magazines is pretty horendous.
Most of Salon's expensives come from actually paying well-respected and well-written authors.
Fair enough, but $75 million worth???
$75 million dollars is a gargantuan amount of money, enough to employ hundreds of people for years. They had ad revenue and 40,000 subscribers too. Incredible.
They had good writing. As a modest literary magazine, along the lines of the Atlantic or the Nation, they had potential. But no way should they have ever become a major public company. That was sheer arrogance.
There was so much of that in the dot-com era.
"Left-wing media a financial failure?" by toupsie
***1/2
Why is it that openly conservative media finds financial success while liberal media seems relegated to the realms of popular and commercial ruin? This is the question asked by toupsie in "Left-wing media a financial failure?", a thought-provoking new comment by the prolific, seemingly right-leaning Slashdot reader. While this ground has been covered before on Slashdot, toupsie's thorough linking and sharp writing style make this one of the most competent treatments of the subject. However, readers looking for comments with more answers than questions would do best to look elsewhere.
As the comment opens, we are introduced to a variety of notable leftist sites, each of which has failed to galvanize its intended audience into a potent political force. As a counterbalance, toupsie then lists a number of policial media success stories, all of which have a strong and identifiable conservative bias. With the stage now set for conflict, toupsie comes right out and asks the question heretofore only hinted at: "Is there something outside the marketability of political orientation that is a factor in this difference in success?"
While the question is posed in an intelligent and inspiring manner, toupsie is careful to avoid conjecture, instead leaving the answers to his complex questions in the hands of the Slashdot readership. A few weak guesses are offered up to get conversation rolling, but it is difficult to believe that the author actually feels that way himself. While it leaves a taste of incompleteness is your mouth, toupsie's decision to leave answers for another day is ultimately a wise one. These are questions which have no clear answers. Including "answers" in his post would not only detract from the strength of toupsie's earlier questioning and cast doubt on his reliability, but would possibly reveal his own political bias. This could divide his audience and possibly endanger the entire post. While a more daring author might throw caution to the wind and state his own personal beliefs, toupsie prefers the safe route, and I don't think any of us could fault him for that.
Overall, it's a very solid post and I recommend it in its entirety.
"It stinks!"
hahaha
you mean the way he won two elections and then his vice president who lacks any charisma still won an election (well he won the election part anyway)?
Of course when a site develops a real sense of loyalty and community, simply asking for a donation can yield a healthy sum of money - kuro5hin.org, for example, raised over $37,000 in two days.
While such a model is obviously not going to cover Salon's $11 million annual expense, it is an intriguing idea. Granted, I doubt it would work for Salon, it seems like such a proposition would work only for tightly-knit community oriented sites.
I could not justify my existence if I were a turkey farmer. Would I terminate myself? Undoubtably, yes.
That movie "Brewsters Millions"? (He had to spend so much cash in a short period of time in order to inherit much more cash with certain stipulations...) I don't think most people could blow $75 Meeeelion dollars even on a real company without turning some sort of profit along the way....Hell you would make all these crazy expenditures -- and you would start to get customers and sale products by accident somewhere around $25 Million...:) Hell you could create a business selling tumbleweeds or rocks and dirt delivered from the arizona desert in little baggies on the concord -- and one day a busload of Japanese tourists would show up at the doorstep....errrr....I ain't gonna make my quota of losing $75 million if these damn busses keep showing up!!! Ahhh....Lets take this business online if we really want to lose some big money....But damn....we have a product --- the tumbleweeds are flying of the shelf....we are overnighting these things to Japan on the Space Shuttle and still only $43 million in the hole....
Sorry -- I am no business man....But fail to see how a website can spend that kind of dough....(I am sure bandwidth and server costs are only a drop in the bucket.....) And what does this say about the 40K people who have paid??? That is real income --- yet they still can't make money....
(+1 Funny) only if I laugh out loud.
Sites like kuro5hin.org which, through careful donation drives, make 6 months of operating money in 3 days. Non-profits who are there for the people, who are lean and run well mainly out of the pockets of the people who're there?
Maybe a big business media site like Salon can't stay in business, but I'm sure that a leaner site could've. The Internet is all about the little guy, as Dan's Data's "Minnows 1, whales 0" argues. Until more people are online supporting a services model, you can't just base your entire revenue on a needing "just a few more" subscribers to break even.
Salon should've restructured about 74.5 million ago. They've lost a stupid amount of money.
--
Internet Explorer (n): Another bug -- that is, a feature that can't be turned off -- in Windows.
I think there's a problem of terminology here. The lady isn't deserving of anything. If the country was a pond, she'd be the crud that lived on the bottom. But she's our crud and because of that we take pity on her.
We realize that it could be any one of us on the bottom of that pond, but we also need to realize that even the bottommost dreg can raise itself off the floor. The goal of welfare should be to encourage and enable those dregs to lift themselves off the floor with a minimum of assistance. Rawls expounds on this concept of the safety net, but IMO goes a little overboard advocating what amounts to be a neo-Communist state ala Finland or Sweden.
The welfare system is to be judged on how well it lifts people from the bottom and returns them to productivity. When people find themselves unable to escape from the jaws of the system, something is seriously wrong and probably lacking in the system. However, tossing the system wholesale is wrongheaded IMO. A revamping and rethinking of strategies to help welfare recipients rather than simply handing them a check would be far better than tossing the baby out with the bathwater and relying on private charities who are simply not equipped to help at this time.
I have been pwned because my
Wired was the first source AFAIK to describe the Well as "one of the earliest and most influential online communities."
So far the only influence of the Well is the self-agrandizing perspective of those who belonged to it.
Usenet ran circles around the Well, not to talk about the early Internet. Heck, Joe McCarthy mailing list at MIT was more influential than the Well.
So put a lid on it. The Well was a neat local BB in the Bay area. Nothing more, nothing less.