OLD Media Moves

Why The Information will be a nice business

December 5, 2013

Posted by Chris Roush

Nicholas Carlson of Business Insider writes about The Information, the new tech news site launched by former Wall Street Journal reporter Jessica Lessin that is charging $39 per month for access.

Carlson writes, “While all of us are laughing about how information wants to be free, Lessin and her colleagues are probably going to build a nice business for themselves.

“The company has five full-time staffers and two more contractors.

“If you figure the cost of each employee is about $100,000, then The Information only needs to find about 1,800 annual subscribers to break even. Fewer if people go for the monthly option.

“At that point, Lessin will have created a media company that pays five journalists solid full-time wages. And she’ll be doing it her way – with serious headlines for serious stories written for serious people, etc.

“At that point, the company will be a success by any sane measure of success.

“(Are your investors happy? Check. Employing people sustainably? Check. Living a fulfilled life doing it? Check.)

“If Lessin somehow finds 5,000 subscribers, her company will have a profit of $1 million. Ten thousand, and Lessin will be $2 million into the black.”

Read more here.

Subscribe to TBN

Receive updates about new stories in the industry daily or weekly.

Subscribe to TBN

Receive updates about new stories in the industry.