The Politico Model

The Politico offers a unique model for newspapers to follow:

• It is essentially a national web brand, although a significant portion of its revenue is derived from a printed newspaper delivered to power brokers in Washington, DC.
• Insiders and outsiders alike consume its niche political coverage.
• Since its launch in 2007, it has largely escaped any accusations of bias.
• Despite its youthful snappiness, Politico is staffed mostly by veteran reporters.
• It is expected to reach profitability this year, well ahead of schedule.
• It quickly gained brand recognition after its launch by breaking stories, and by its reporters' frequent appearances on cable news programs.
  

Newspapers looking to reinvent themselves as web-only entities should take a hard look at the roots of Politico's success as a brand. Those papers should also consider that Politico is still making money off print.

Politico co-founder Jim VandeHei does not like the prospects for the survival of local newspapers, however. In a discussion at the National Press Club this week, VandeHei said he expects that 18 months from now most papers will have closed or shrank beyond recognition. Larger papers like the New York Times, Wall Street Journal and Washington Post have a much greater chance of surviving, VandeHei said.

Newspapers will eventually have to charge for content, VandeHei added, because internet ads are ineffective and will never provide the kind of revenue that print ads provided. Politico earns approximately 40 percent of its revenue from internet ads, according to VandeHei.