Three ideas for news businesses which will never work (and why)

Journalism students and even older journalists struggling for work are being encouraged to get entrepreneurial and launch their own startups.

And damn straight too – let’s hope more of them take the leap and start launching products. I’m sure the most popular ideas for news businesses in someway mimic the mainstream media – for example an online magazine, hyperlocal website or production company.

All businesses with potential, but there are traps to fall into too. Here are some ideas (I came up with) which will never even get off the ground…and why.

1. Twat!: The risque new music magazine for young people in London

Twat! Magazine is a montly print magazine and website for young people in London that “really gets under the skin of culture” and “isn’t afraid to offend”. It features interviews “with upcoming artists the other magazines haven’t even heard of” and crazy mental features.

It won’t work. Why?

Referring to my Journalism Startup checklist it fails on the first four questions: it is not a new idea, and most importantly it does not have a defined target audience. Who are “young people in London?”. As it happens they’re incredibly diverse from postcode gang members to city bankers. None of them can identify with the ‘lifestyle’ the magazine is trying to sell and therefore have no reason to pick it up.

It’s not a new idea, because pubs, bars and student unions are flooded with “edgy, cool, underground” magazines all the time, usually made by Magazine Publishing students. Going for print alongside web brings in large overheads – and bootstrapping becomes harder.

2. WorldTV: a video website that showcases the best films about “the issues which matter.”

This website pays to licence video journalism pieces from around the world and put them into one place. They’re after films about “under-reported” issues for example Darfur, Sri Lanka and Bangladesh.  It will also allow users to upload their own video which gets voted on by other users. The site will have an “international feel” and be for people who “really care about politics”.

It won’t work. Why?

It’s a noble idea – but why would you want to visit this site? Again, WorldTV suffers from a poor grasp of a well-defined target audience. It is probably aiming for young people around the world, but again they are incredibly diverse. No-one will feel a need to register and therefore hopes of building an active community will fall through. The films themselves are likely to be long, worthy affairs and bore most people after two minutes.

The site wants to pay for video commissions, and so will need to cough up cash to video journalists. It may get some venture capital at first, but the rates will steadily slip from $800 to $500 to $200, to nothing.  Viewing figures will be low: creating something worthwhile and expecting the masses to come is a poor business model.

3. DoleItOut: a multimedia magazine for unemployed people in Birmingham

DoleItOut is a regularly updated multimedia website for people out of work in the Birmingham area of the UK. As well as feature interviews and interactives about life on the dole, it also has plenty of video advice guides on how to find work, video diaries and an active forum. Plans are underway to develop an iPhone app.

It won’t work. Why?

Hurrah! Finally an idea with a well defined target audience! Problem is they’re a bad target audience for running a business. Why? Because they got no money. If the editors of DoleItOut were hoping their readers would pay a minimal subscription they’d be wrong. Advertising is possible, but you’ll be left selling ads for evil loan sharks and 1000% loans. And what unemployed person can afford an iPhone app?

The idea also struggles with question 13 of the startup checklist – it doesn’t really scale. Although it’s good to be geo-specific, are there really enough unemployed people in Birmingham?

Too many news startup ideas fail because they take an upside down approach. Journalists think of a product and then decide who to make it for.  Instead you need to define your audience first – and then ask “what do they need?”.

Have you checked out the News Startup Checklist yet?

Photo Credit: Curious_Zed on Flickr

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