Revenue logic means the media corporation’s way to create profits and thus to fund its functions.
The revenue logic of media corporations has traditionally been based on dual markets: a newspaper or another journalistic product is sold to the consumers and the subscribing/paying audience is sold to the advertisers. This means convincing the advertisers of all the potential people who could see or hear the advert.
The digital revolution has had an impact on the revenue logic of media. Some advertising has moved to the websites of newspaper corporations. Online advertising has been more affordable than traditional newspaper advertising, which means that the total profits of the newspaper corporations have gone down. Some corporations advertise their products directly to their customers on their own websites and channels of social media.
The digital revolution has had an impact on the revenue logic of media.
The self-evident downside of the digital revolution for media houses is that people are less willing to pay for journalism, as it can be found online for free.
The media companies are now trying to find ways to build new, digital revenue models through which to maintain their trade. For example, paywalls have become more common during the last years. Paywalls restrict the access of users who are not logged in as subscribers to some or all of the content on a website.
Reflection: What do you think about the future of printed press in light of the spread of electronic media? How do you think the revenue logic is going to be like in ten years?