Are we trying hard enough? 10th International Symposium on Online Journalism By Premesh Chandran CEO malaysiakini.com April 2009

Malaysiakini – how we started Duality in media legislation Duality in media legislation Print & broadcast media tightly controlled through licensing, owned by government political parties Print & broadcast media tightly controlled through licensing, owned by government political parties Internet free of censorship due to government’s pledge to foreign IT investors – “Multimedia Supercorridor” initiative Internet free of censorship due to government’s pledge to foreign IT investors – “Multimedia Supercorridor” initiative 1998: Arrest of deputy PM Anwar Ibrahim, huge demand for independent news, 1998: Arrest of deputy PM Anwar Ibrahim, huge demand for independent news, Raised US$ 10,000 from friends and then in $100,000 grants. Malaysiakini launched on Nov 20 th, 1999 Raised US$ 10,000 from friends and then in $100,000 grants. Malaysiakini launched on Nov 20 th, 1999 Internet penetration about 20% but hit 100,000 unique readers a day within 10 months Internet penetration about 20% but hit 100,000 unique readers a day within 10 months

Mission “To use the Internet to provide independent and balanced news to the Malaysian public and to set new standards in journalism as well as to support the development of freedom of speech, social justice and democracy in Malaysia” Value Proposition Independent news with accuracy, credibility, balance Independent news with accuracy, credibility, balance To be the first in news To be the first in news Plural and incisive Views Plural and incisive Views

Readership 35 editorial staff produce 50 stories per day in English, Malay, Chinese and Tamil & 3 videos per day 35 editorial staff produce 50 stories per day in English, Malay, Chinese and Tamil & 3 videos per day 1.8 million absolute unique visitors per month, 250,000 unique readers per day, 1.8 million absolute unique visitors per month, 250,000 unique readers per day, Ranked 13 by Alexa and Google, No 1 Malaysian site, top 12 being global sites. Ranked 13 by Alexa and Google, No 1 Malaysian site, top 12 being global sites. Charge $40 for reading English news Charge $40 for reading English news

Impact Broke through state control of media Broke through state control of media March 8 th Key role in democratic breakthrough, ruling party lost in 5 states, winning federal government only by slim majority March 8 th Key role in democratic breakthrough, ruling party lost in 5 states, winning federal government only by slim majority “Underestimating the Internet was our biggest mistake” – PM Abdullah Badawi “Underestimating the Internet was our biggest mistake” – PM Abdullah Badawi Major swing among young and urban voters Major swing among young and urban voters

The business of Malaysiakini (2008) Income Subscriptions: $600,000 Subscriptions: $600,000 Advertising - $200,000 Advertising - $200,000 Grants - $200,000 Grants - $200,000 Total - $1,000,000 Expenditure Editorial – $420,000 Editorial – $420,000 Admin– $150,000 Admin– $150,000 Marketing - $80,000 Marketing - $80,000 Technology - $50,000 Technology - $50,000 Total – $800,000

Subscription business Challenges: Challenges: Convincing our staff Convincing our staff Creating an online payment system which worked Creating an online payment system which worked Fighting the notion that Internet is all for free Fighting the notion that Internet is all for free ,000 unique readers, conversion 1% ,000 unique readers, conversion 1% 2009 – 250,000 unique readers, conversion 5% 2009 – 250,000 unique readers, conversion 5% (Malay, Chinese, Tamil and part of English still free) (Malay, Chinese, Tamil and part of English still free) Generates 60% of income Generates 60% of income Other independent websites drawing audience but little revenue Other independent websites drawing audience but little revenue

Key success factors Unique in its independence and speed Unique in its independence and speed Very limited free content (high wall) Very limited free content (high wall) Political developments in Malaysia generating interest Political developments in Malaysia generating interest We drive the message subscription = support for independent media = democracy & justice We drive the message subscription = support for independent media = democracy & justice We thank our subscribers for their support We thank our subscribers for their support Tried to model around pay TV – single subscription multiple websites, not enough paid content Tried to model around pay TV – single subscription multiple websites, not enough paid content

Does Media Industry = Journalism? Fragmentisation of media & advertising Fragmentisation of media & advertising Loss of advertising to search and non-media websites Loss of advertising to search and non-media websites Media Industry = Profitability = Entertainment Media Industry = Profitability = Entertainment Driven by ownership, advertising, state priorities Driven by ownership, advertising, state priorities Divergence between journalism and media industry (Do journalists belong in the media?) Divergence between journalism and media industry (Do journalists belong in the media?)

Strategies & Future Plans 1. Increase content but not costs Crowd sourcing, citizen journalism, “top of the blogs” “malaysiakini 2.0” Crowd sourcing, citizen journalism, “top of the blogs” “malaysiakini 2.0” 2. Push content to new platforms Home TV, Mobile, Web Home TV, Mobile, Web 3. Leverage on existing audience: Voize.my, Earth247.tv, Find it All, others Voize.my, Earth247.tv, Find it All, others 4. Home market media Innovations Digital Ink devices, retail screens, innovate print Digital Ink devices, retail screens, innovate print

Future of Journalism? Some journalism has to be funded by public funds (individuals, foundations, taxes), distributed by the media industry Some journalism has to be funded by public funds (individuals, foundations, taxes), distributed by the media industry Some non-advertising revenue (subscribers, foundations etc) keeps media honest Some non-advertising revenue (subscribers, foundations etc) keeps media honest

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