The Guardian’s financial losses show that digital ‘success’ is measured by growth, and there’s no way to cover the costs of its growth

BuzzFeed and other digital start-ups are able to fuel their growth with rounds of investments, but Michael Wolff writes that publications such as The Guardian are in a trickier place: “Losses at some point overwhelm available capital.” While The Guardian cuts 20 percent of its costs, it will still have to find ways to sustain digital growth — but digital growth costs money, and The Guardian has refrained from implementing a paywall in favor of a membership model.

+ What The Guardian needs to do to get out of the red: Achieve higher scale to make its “open” model more successful, double down on its membership program, create higher quality branded content, and use data to drive subscriptions (Digiday)

The post The Guardian’s financial losses show that digital ‘success’ is measured by growth, and there’s no way to cover the costs of its growth appeared first on American Press Institute.

from American Press Institute http://ift.tt/23GJ6XV