Will Newspapers Soon Become Nonprofits?

It may be that the future of newspapers will be based on a nonprofit business model. There was a time not too long ago that newspapers were some of the most profitable businesses of their day. That is changing quickly as the economic model for newspapers evolves daily. Printed papers have high-cost distribution systems and long publishing delays at a time when news is increasingly moving to the internet, becoming essentially immediate and free. Those newspaper companies that are moving their newspapers to the internet are struggling with downsizing print operations and building their online business. Many of these companies just don’t have the patience to see if this change to online publishing will return newspapers to their old profitability…or to any level of profitability for that matter.

So it is with interest that we are watching the rising popularity of nonprofit online newspapers that are seeking to become a respected alternative news and opinion source for the community. The Voice of San Diego is one such business which started almost three years ago. In many ways it works like public radio. It takes sponsorships, solicits contributions from foundations, businesses, and individuals as you would expect. However, it also takes general advertising and Google ads.

Considering the amazingly large number of page views that some online sites receive, the Voice of San Diego is not shattering any records. However, its traffic numbers are quite respectable for a local product; more than 700,000 page views per month, an average of 45,000 visitors per week and 5000 daily subscribers. What really stands out about this experiment is the newspaper’s audience profile. Seventy-seven percent of its readers are thirty-five plus. Thirty-three percent have incomes over $100,000 and about ninety percent have a bachelor’s degree or higher education. The audience might not be broad, but it’s established, well-educated and high income.

As entertainment and soft features take up more space in for-profit newspapers, maybe the day-in-day out reporting of critical community issues will be taken up by nonprofit newspapers.

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