Chatalas Shrugged

We often discuss the subject of revenue models in the online world. While there are a multitude of Internet businessess and offerings, the earnings that will support many of them are elusive. This is particularly so in the area of social media, where companies have innovative services being used by many, but the sources of revenue are a work in progress. Our recent guest from Nokia acknowledged that financial expectations are uncertain for its new online services; it was more important to provide these services and gradually see what practical models emerge.

As we’re also aware, the future of print publications is perpetually debated. So it is great to learn about a business that is successfully combining traditional publishing with user generated content. 8020 Publishing is running its travel and photography magazines in a cost-efficient manner by using online editorial and photo submissions. The San Francisco-based company produces its magazines based on the best material, and suggestions, of its online community.

8020 is creating these magazines and managing its websites with a staff of less than 20, a miniscule workforce compared to many other national print publications. Even better, the company is forecasting profits by next year.

This model has proven to be so effective, 8020 has plans for similar magazines dedicated to food and cars. With one small hitch, though… it will only proceed if its dedicated online community members say the new titles are worthwhile and that they will support it.

The netroots often receive credit for energizing and organizing the progressive movement. Using social media tools, these activists have had a profound effect on national and local elections. Indeed, Barack Obama has largely built his campaign and its coffers by embracing the netroots.

Alas, these online activists aren’t always accorded respect by political insiders. At times there’s been tension between the DC hacks and the netroots about tactics and effectiveness. And I’ve heard a local democratic leader refer to the movement as “the nut-roots”.

The netroots, though, perseveres with its brand of activism that is shaping the future of politics and the party. Its third annual conference, Netroots Nation, is in mid-July in Austin. And Lawrence Lessig will be a keynote speaker.

Lessig, of course, is a tech intellect and superstar who has advanced efforts toward ensuring the Internet remains democratic and open to all. In late 2007 Lessig announced that he would dedicate significant time to the issue of corruption.

In the meantime, the members of the netroots are ecstatic that Lessig will speak at the coming conference. This tech giant’s presence gives the movement more legitimacy, connecting the netroots’ political emphasis with the technological and cultural elements of the Internet. One netroots leader, Chris Bowers at OpenLeft.com, described the importance of Lessig’s participation:

It is an expansive moment where the netroots demonstrates a wider focus on more than just elections and party politics, but also on the broader social trends that make the netroots possible.

- Jody Chatalas

We already know there are publications available on the web, and many have made online publishing the thrust of their business. Included among these are Salon, Slate, Grist and Crosscut, just to name a few. Clearly this model is well in place, and online publications will continue to emerge.

Newspapers, however, continue to straddle the line between print and pixels. They have an online presence, but still hold on dearly to their sacred cash-cows. Although the Internet makes trees and trucks expendable, newspaper executives just can’t bring themselves to fully part with those two rather expensive items.

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