Media and Communication (ISSN: 2183–2439) 2020, Volume 8, Issue 2, Pages 146–158 DOI: 10.17645/mac.v8i2.2712 Article Native Media and Business Models: Comparative Study of 14 Successful Experiences in Latin America Santiago Tejedor 1 , Augusto Ventín 2, *, Laura Cervi 1 , Cristina Pulido 1 and Fernanda Tusa 3 1 Journalism Department, Autonomous University of Barcelona, 08193 Bellaterra, Spain; E-Mails: santiago.tejedor@uab.cat (S.T.), laura.cervi@uab.cat (L.C.), cristina.pulido@uab.cat (C.P.) 2 School of Communication, University of La Sabana, 53753 Bogotá, Colombia; E-Mail: jose.ventin@unisabana.edu.co 3 Social Sciences Faculty, Technical University of Machala, 170524 Machala, Ecuador; E-Mail: ftusa@utmachala.edu.ec * Corresponding author Submitted: 14 December 2019 | Accepted: 1 February 2020 | Published: 16 April 2020 Abstract From its onset on the 1990s, both digital native (with sister headings on the analog platform) as digital native news media have experienced a constant transformation process. The accelerated technological evolution linked to the changing in- formation consumption habits of the users demanded a constant reinvention capability. Furthermore, the need for profit and the drop in advertisement sales have pushed the media to redefine their structure, content and social media pres- ence. The Ibero-American scene has experienced a sprout of a mixture of digital native news media. They are journalistic projects, conceived from and on the Internet, which have reached considerable renown and becoming reference media on the information level. Internet prompted a reduction of the costs related to the creation of media outlets. However, the establishment of a sustainable business model is one of the main challenges. The research presented looks at the busi- ness models of Ibero-American digital native news media based on a comparative analysis of 14 case studies, alongside interviews with their founders. The findings include, among other things, a tendency for business models based on diverse and hyper-specialized content targeted at micro-audiences. This research found an interest in horizontality, participation and user engagement, and noticed the need for these media to diversify their income sources. Keywords business model; digital native; journalism; native digital media; news media Issue This article is part of the issue “Digital Native News Media: Trends and Challenges” edited by Ramón Salaverría (University of Navarra, Spain). © 2020 by the authors; licensee Cogitatio (Lisbon, Portugal). This article is licensed under a Creative Commons Attribu- tion 4.0 International License (CC BY). 1. Introduction has introduced a reduction in the costs related to the de- sign, creation and functioning of media outlets. Bearing The development and establishment of a sustainable in mind that a great amount of research on journalism business model has become one of the main challenges is carried out from an Anglo-Saxon perspective—or in in the journalism industry lately. Free content and a de- an Anglo-Saxon sphere—we chose to focus on the con- pendency on an advertisement model have influenced ceptual region known as Ibero-America, understood, ac- the consumption habits of the audience and they have cording to different authors (see Birle, 2016; Galindo, made it difficult to find effective economic return pro- 2010; Martin Serrano, 2004), as a “space” beyond a mere posals. Among digital editions derived from analog me- geo-linguistic area, tracing cultural, socio-political and dia (especially the case of newspapers) there has been a socio-economic relationships, that shape the journalis- surge of a variety of digital native news media. Internet tic traditions of the countries within it. The arrival of Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 146 native digital media, particularly in the Ibero-American fostered the creation of new digital native journalistic scene, is a consequence of the new communication junc- projects and proposals. In this environment, the need ture, clearly marked by a new user profile and new gad- to make a profit and the transformations in advertise- gets that had an impact of the production and distribu- ment investment have pushed digital media to redefine tion of information content. In this context, digital native their structures, the typology of their contents and the news media face a process of constant transformation routines of journalism production, at a juncture of in- (Neuberger, Nuernbergk, & Langenohl, 2019) that affects terrelations between different economic, political, labor, their production and distribution systems, the audience technological, and cultural subsystems that make up the profiles, the journalistic roles and, specially, the business entire social system (Parra Luna, 2003). Media indus- models (Adira et al., 2018; García & González, 2012). try has experienced in the last three decades a series Deuze (2003), Pavlik (2005), Flores and Aguado of transformations or reconfigurations (Cervi, Paredes, (2005), Salaverría (2005, 2008), Domínguez and Pérez & Pérez Tornero, 2010) that have altered the way of (2012), Jarvis (2015), Chan-Olmsted and Shay (2016) or structuring, operating and define information compa- Schroeder (2018), among others, have highlighted in nies. Multimedia convergence (Castells, 2010; Dailey, the last decade the importance to reformulate business 2005; Jenkins, 2006; Salaverría, 2003; Scolari, 2004), as models for media on the Internet and, among other as- the main element in the shake-up, has led to profound pects, to invest in better quality content (Palacio, 2018; changes that reach technological, entrepreneurial, pro- Rodríguez & Soloaga, 2017). Thus, we can point out duction, distribution, professional, narrative and con- that innovation (Bleyen, Lindmark, Ranaivoson, & Ballon, sumption practices, in a cross-sectional and multimodal 2014), which includes all the steps in the process and in form, that have permeated all dimensions of media the media structures, has become one of the challenges in an environment reacting to the impact of big data for the media (Carlson & Usher, 2016). (Schlesinger & Doyle, 2015). From that starting point, this research analyzes the It is under these circumstance that the target characteristics and specificities of the business model of audience as a final product (Ventín, 2004), through 14 Ibero-American digital native news media, through which added value is generated, is being questioned a case study of each of them, a comparative analysis as the main commercialization model in the informa- between them and a series of interviews with their tion industry, prompting an economic crisis in the founders or directors. Stemming from that main objec- sector (Cabezuelo-Lorenzo, 2013) and underlying a re- tive, the specific goals are to 1) analyze and compare the structuration of the media ecosystem in Ibero-America value offer for each of the selected digital native news through the concentration of media companies (Becerra media; 2) classify the typology of distribution and sales & Mastrini, 2017; Gutiérrez Rentería & López Hernández, channels, as well as content and topics offered in each on 2014). This concentration has defined the role of the them; 3) study the typology of the income sources and communication professionals (Cottle, 2007; Salaverría & other types of resources that each Project addresses in Negredo, 2008; Scolari, Navarro, Pardo Kuklinski, Micó, their business model; 4) point out the common threads & Coll, 2006; Tejedor, 2011), defining new tasks based and divergences between the various proposals studied on the dynamics brought about by the digitization of here; and 5) identify the main trends in the sector in the production and content distribution paradigms that have definition and execution of a business model. modified narrative structures (Gosciola, 2012) and have To achieve those goals, the study expected to answer allowed for new consumption forms in audiences that three main research questions, namely: have transformed into “users…or production, oversee- ing and distribution agents” (Ventín, 2018, p. 70) of the RQ1: How is the business model of digital native news contents often viralized through digital social media net- media designed in terms of horizontality, participa- works (Chaykowski, 2018). tion and audience engagement? These changes have altered the requirements and professional competences demanded of future gradu- RQ2: How does the content offer by digital native ates and offered in schools and universities teaching news media responds to increasing diversity and communication or journalism (Tejedor & Cervi, 2017). hyper-specialization? However, between 30% and 40% of all new media compa- nies created in Latin-American are unable to survive after RQ3: What is the trend on digital native news media the fourth year of having been created (Sembramedia, regarding income stream diversification beyond ad- 2018) or, when they survive, they do so with consider- vertisement sales? able adjustments (Rubio Hancock, 2019). The culture of free contents is another aspect that has made it diffi- 2. Theoretical Framework cult to find a successful business model. According to the Newman, Fletcher, Kalogeropoulos, and Nielsen (2019, Internet has changed the way current media orga- p. 13), there is a growing “subscription fatigue” and users, nize themselves and the way we consume information especially the youngest ones, opt to pay for Netflix and (Martín Serrano, 2004), at the same time as it has Spotify for content, rather than for news media and plat- Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 147 Table 1. Elements of the Osterwalder’s Business Model Canvas. Clients (3 blocks): Market segments, channels and relations Offer (1 block): Value offer Infrastructure (3 blocks): Key activities, key resources and key partnerships Economic viability (2 blocks): Cost structures and revenue flows Source: Osterwalder (2010). forms. The development and application of a success- that supports the business model; whereas headings 6–9 ful business model becomes, thus, one of the main chal- indicate the way in which the offer or value proposal will lenges of the media industry, particularly in the case of be made. The numbers help in establishing the execution journalism. Harlow and Salaverría (2016) developed a sequence, with value offer or market segment selection mapping of the emergent overview of digital media news the starting points, depending on the relevance one or websites in Latin America. They conclude that there is a the other has for the entrepreneur. tendency for renovation in the traditional modes of jour- The need to be profitable and the transformations nalism, among other aspects, and they highlighted the of advertisement investment have pushed digital media importance of reconsidering or renovating the relation- to redefine their structures, content typology and jour- ship between journalism, alternate media and activism. nalistic routines. The content on offer performs a ma- The business model can be defined as the way in jor role in digital native news media business models. In which an organization dynamically articulates three main this sense, in Spain, for instance, only 44% of the citizens components to generate revenue and benefits (Demil & trust the media, while 34% provides value to news avail- Lecocq, 2009) in a sustainable manner. It is, in the end, able through search engines on cyberspace. In the case a matter of strategic planning undertaken to serve the of digital social media networks, only 23% of Internet project’s dynamic by fostering comprehension, creativ- users grants credibility to the news they read on these ity and reflexivity (Osterwalder & Pigneur, 2016). The platforms (Newman, Fletcher, Kalogeropoulos, Levy, & Osterwalder’s Business Model Canvas structures a ba- Nielsen, 2018; Newman et al., 2019). sic scheme of the idea of the business in four areas These dynamics and trends, that shape up the (clients, offer, infrastructure and finance) and nine inter- Spanish media landscape, are replicated in the global in- related elements that follow a logical sequence divided dustry of digital media and invite a holistic reflection on in the following elements: value offer, key partnerships, digital native news media and their ability to become key activities, client relations, market segment, key re- profitable. A study by García-Avilés, Carvajal-Prieto, De sources, channels, cost structure and revenue sources Lara-González, and Arias-Robles (2018), that analyzes 25 (see Table 1). out of the most innovative cases on the field in Spain The model establishes a series of interrelations be- (between 2013 and 2014), highlighted that journalistic tween its elements (see Table 2). On the one hand, head- innovation is produced on the sidelines of the traditional ings 1–5 deal with the elements that generate income news industries and, for the most part, innovation is ex- Table 2. Osterwalder’s Business Model Canvas: Elements and sequence. Partners Activities Value Proposal Clients relations Market Segment 8 7 1–2 4 1–2 Help support Required to generate Unique per segment Clients and the business income; those with (price, novelty, organizations for model good performance quality, convenience, whom value is Resources status, performance, Channels created 6 personalization) 3 Assets requires for Contact routes the business; with the client to infrastructure to deliver value offer create, deliver and provide value Cost structure: Based on the business model Revenue sources infrastructure 5 9 Balance with the revenue sources (not initially) Ways that generate value for the business model Source: Osterwalder (2010). Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 148 panding through native digital media, niche initiatives ist system, its media system has been rapidly growing and new companies. The works of Bouwman, Nikou, and many media companies have been created recently. Molina-Castillo, and de Reuver (2018) see the impor- These media companies must be sustainable in order tance of digital social media networks and big data of the to survive. In this specific case, Periodismo de Barrio is innovation and re-definition processes of the business not only renowned and sustainable outlet, it has been models. On the other hand, Vukanovic (2018) presents recognized and has earned awards on journalism qual- that the detection of sustainable and hyper-competitive ity by Fundación Gabriel García Márquez para el Nuevo business models constitutes critical milestones. To reach Periodismo Iberoamericano. Identifing reference media them, Vukanovic underscores the relevance of multi- in terms of innovation and sustainability. platform aggregated distribution, personalization and an Native digital media experience a breaking point at improvement in user interface—viewed as navigation the 5th year of existence, because almost 40% of them experience—in the development of new and more ade- do not survive beyond that (Consejo de Redacción, 2018). quate business models. Thus, the first criterion defined is for all digital native news media to have existed for at least five years. A sec- 3. Methodology and Instruments ond criterion that could be linked to a successful busi- ness model would be web traffic and network follow- The methodological proposal, of documentary and ex- ers. Sembramedia, a not-for-profit NGO focused on ad- ploratory nature (Vilches, 2011), uses two work tech- vising and monitoring media entrepreneurship in Ibero- niques: case studies and in-depth interviews. For once, America, has a listing of native digital media categorized, the case study is a qualitative research method charac- among other criteria, by web traffic (measured as web- terized by a first phase of information gathering in the pages views per month) per media outlet. It displays dif- topic and a second phase of analysis (Yin, 1989). Thus, ferent categories (4,999 visits or less; between 24,999 facts and circumstances based on one or more hypothe- to 49,999 visits; between 100,000 and 499,999; and be- ses (presented in the introduction to this article) are de- tween 500,000 and 999,999, among others). This re- scribed and there is a comparison or testing of these phe- search has taken into account those digital native news nomena. It is, in essence, a structured inquiry around media with more than 24,999 visits. In each case, the an example or best practice (Stake, 2005). The theoret- analysis was done in a first phase, through a form (see ical framework is based on the Osterwalder’s Business Table 4) which included digital native news media ty- Model Canvas (Osterwalder, 2010) which determines the pology, their thematic characteristics and, specially, the reach and methodology applied in the study. For this specifics of their business model. work, the case studies allowed for an examination of ex- In the second stage of the study, founders or direc- istent native digital platforms, make a selection (as a sim- tors of the main selected digital native news media were ple) and, finally, analyze them from two perspectives (on interviewed. Out of the 14 selected media outlets, ten di- the one hand, their contents, and, on the other, their rectors responded (see Table 5). In-depth interviews, de- business model proposal). fined as an encounter with a structured technique, held The sample was defined as the set of elements from between researcher and informant, and aimed at the un- the population that were selected to be part of the re- derstanding of the perspective held by the latter on di- search (Del Rincón, Arnal, Latorre, & Sans, 1995). In to- verse topics, experiences or situations (Del Rincón et al., tal, 14 media outlets of the Ibero-American digital native 1995; Taylor & Bodgan, 2000), has allowed for access to news media ecosystem were analyzed (see Table 3). The the testimony of founders of eight of the selected dig- sample has been selected based on expert recommen- ital native news media (Rodríguez, Gil Flores, & García dations: 12 experts from Spain and Latin America (aca- Jiménez, 1996). demics and journalists) were interviewed through a digi- The interview, of a semi-structured nature, has been tal survey asking them to name the most relevant Ibero- designed following an open-ended questionnaire, to American digital native news media, in terms of innova- elicit reflection of a qualitative kind. The questionnaire tion and recognition. was validated by a panel of 10 experts in journalism. Moreover, five aspects have been considered as re- The participants were informed about the study and quirements: 1) they had to be native digital media; their consent was requested to take place in the study. 2) their operational sustainability; 3) all digital native The development and processing of the interview was news media selected had to be created within the last undertaken between January and December 2019. The decade (between 2009 and 2019); and 4) the number of main thematic variables in the interview questionnaires visits and followers in social media. have been structured upon the formulated hypotheses: Cuba, despite its different political and economic sys- 1) main traits in the applied business model; 2) justifica- tem structure to the rest of the sample, has been in- tion in the election; 3) main revenue streams; 4) main cluded for many reasons. First, as mentioned, following challenges and difficulties; 5) future perspective and an Martin Serrano (2004), Galindo (2010) and Birle (2016), analysis of possible trends in the sector; and 6) digital na- the country belongs to Ibero-America. Secondly, even tive news media of world reference. if the country does not display a functioning capital- Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 149 Table 3. Table of selected digital native news media. Digital native news media Kien y Ke Minuto 30 5W Year of establishment 2010 2013 2015 Country Colombia Colombia Spain Type of organization For profit For profit For profit Traffic (number of visits) — 1,000,000 — Social Media Facebook 198,503 1,432,059 15,242 Twitter 225,200 598,500 42,600 Instagram 19,900 254,000 13,100 YouTube 66,000 — — Digital native news media Info Libre Uno Cero Animal Político Year of establishment 2013 2012 2010 Country Spain Mexico México Type of organization For Profit For Profit For Profit Traffic (number of visits) — — — Social Media Facebook 352,105 422,632 1,355,908 Twitter 270,400 224,400 2,100,000 Instagram 25,800 67,400 61,900 YouTube — — — Digital native news media GK Plan V Chequeado Year of establishment 2011 2013 2010 Country Ecuador Ecuador Argentina Type of organization For profit For profit Not for profit Traffic (number of visits) 499,999 99,999 999,999 Social Media Facebook 55,954 40,914 79,759 Twitter 23,100 52,200 257,000 Instagram 17,700 — 14,300 YouTube — — — Digital native news media El Definido Armando Radio Ambulante Year of establishment 2013 2010 2012 Country Chile Venezuela Covers Latin America from the US Type of organization For profit For profit Not for profit Traffic (number of visits) — 49.999 99.999 Social Media Facebook 199,328 42,083 40,217 Twitter 24,000 90,200 307,600 Instagram 13,900 8,008 17,400 YouTube 161 1,420 3,702 Digital native news media Nómada Periodismo de barrio Year of establishment 2014 2015 Country Guatemala Cuba Type of organization For profit Not for profit Traffic (number of visits) 999,999 24,999 Social Media Facebook 172,137 8,503 Twitter 115,500 3,461 Instagram 26,400 1,917 YouTube 4,810 — Source: Own data (2019). Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 150 Table 4. Digital native news media analysis. Digital native news media profile Year of establishment Founders Director Themes Sections Type of content Format Value offer Target public Production and distribution system Business model Type of association Type of business model Revenue source Source: Own development. Table 5. List of interviewed directors. Interviewee name Position Name of the media outlet Elaine Díaz Director Periodismo de Barrio Tania Montalvo Main editor Animal Político Marta Arias Director of Communication and Marketing 5W Jorge Pareja Director General Minuto30.com Martín Rodríguez Pellecer Director and CEO Nómada Elizabeth Correa Londoño Content Director Kienyke Carolina Guerrero, Director and CEO Radio Ambulante Jorge Caraballo Growth Editor Laura Zommer Executive and Journalistic director Chequeado José Vicente González Business develoment officer Infolibre Source: Own development. 4. Results and Discussion panies as clients. The remaining 12 cases, think about au- dience in terms of the content consumer. The findings that we present here start from a docu- These 12 media outlets maintain a stable and open mental analysis carried out about each of the media, as relation through dialogue between the audience and the well as the responses given by the directors of the inter- editorial teams, to whom the audience is able to submit viewed media. proposals about topic selection, as well as about the fi- nancial situation of the outlet. This relationship is devel- 4.1. Business Models Are Centered in Horizontality, oped through events, social media, Internet forums and Participation and Compromise fan clubs (see Figure 1). The second area of the Osterwalder’s Business One of the four areas that make up Osterwalder’s Model Canvas is the offer. The offer refers to the value Business Model Canvas is the client’s section, made up of proposal. For these 12 media outlets there are also hori- the market, channel and relations segment. In this area, zontal, participation and user engagement mechanisms, we found two types of media: 1) those that keep a clas- since media reinforce a sense of belonging and commu- sic conception of the client, as a company or institution nity representation through the triangulation of three who offer a given audience type for advertisement pur- actions: users propose topics, offer support in kind or poses, and 2) those who think of the content consumer money for their development and, afterwards, the media as a media user. Although this is not a quantitative study, outlet provides a public budget review on the resources to answer our RQ1, only two out of 14 cases studied expended as an accountability measure (see Figure 2). (KienyKe.com and Minuto30.com), have advertising com- Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 151 Soc ts eve , ial n ok ebo and c r Fa ie ram Topic w g Foru T sta selecon m In s Community media l Wh ai Em ats ap Input Accountability p Figure 1. User contact channels. Source: Own elabora- Figure 2. Community value matrix. Source: Own elabora- tion. tion. The set of these actions allows for the creation of of investigative journalism, we find fact-checking in the a participative community, engaged with the value of- case of Chequeado, narrative podcasts related to Latin fer of the medium and their financial sustainability. For America (Radio Ambulante), minute-by-minute updates instance, Marta Arias, Director of Communication and (Minuto30.com), technological dissemination (Unocero) Marketing of 5W, states that “what makes the project and local journalism. Corruption and climate change possible is not a banking institution but more than seem to be the main focus of investigative journalism 3,000 [members] that pay an annual [subscription] fee that brings proximity to its users. to sponsor the creation of a different journalism” (Marta The thematic agenda shows a prominence of topics Arias, personal communication, November 12th, 2019). related to inequality (mainly with minorities such as in- In the case of Chequeado, in contrast, participants not digenous, women, children, etc.), politics (especially at only contribute through fees, they also participate ac- the national level), corruption and international affairs tively in the process of fact-checking themselves, assess- (such as climate change or migration). Regarding the ing doubtful statements or providing extra information journalistic approach, we can observe a clear commit- about news items. ment to the use of narrative journalism and investigative journalism, with an effort to contextualize information 4.2. Contents Offered Are Diverse and Hyperspecialized (see Figure 3). in Digital Native News Media In the third area, Infrastructure, made of the re- sources, activities and key partners, we found a recurrent As for the content offer to address RQ2, the studied cases action thought in sequential organization from the pro- present specialization as recurrent. Besides examples duction and distribution of content, through which the Corrupon Economy Security Inequality Polics Internaonal Society Technology Figure 3. Main themes. Source: Own elaboration. Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 152 medium seeks to be positioned as a journalistic refer- able are those that combine diverse financing ways ence. To do so they define a productive structure from (i.e., three or more revenue streams): Animal Político, narrative multimedia logics, in that the journalistic team, Radio Ambulante, Nómada and GK. Nonetheless, scal- with audiovisual producers and designers, create content able media are those which support their income in pro- that is exhibited in national and international contests grammed advertisement, as in the case of Minuto30.com and award ceremonies. In those spaces they create al- or KienyKe. Subscription, donations and professional ser- liances with other media and organizations that diver- vices are growing sources of income, whereas crowd- sify their spread of content. Nómada, for instance, in- funding and advertisement are in decline (see Figure 5). cludes among its key interest, that their content produc- The main advertising formats are banner type, high tion satisfies quality requirements for awards and prizes impact format, rich media, video, fixed presence and (i.e., Premio Nacional de Periodismo de Guatemala-ISPS, sponsorship, content marketing and social media con- UN Human Rights Award); as a communication strat- tent. For programmatic advertising on display and mo- egy to achieve international recognition; Kienyke.com, bile, they use external agencies such as Google, Rubicon, meanwhile, organizes since 2013 a Festival called Festival Adsmovil, Headway, Adsamp, Smartad. For video they de los Sentidos (Festival of the Senses), in partnership use Teads, Adman, Sunmedia, Latinon and Google and with academic institutions, to assess the journalistic envi- for social networks FBIA stands out. While for personal- ronment and innovation. Similarly, Chequeado organizes ized content they make direct sales through their own an annual event called La Noche Del Chequeado (The commercial departments. Chequeado Night) (see Figure 4). As for donations, we find two broad categories: fi- nancial donations and donations in kind. The financial ones come from international institutions that special- ize in the development of emerging economies and me- dia industries, such as the Ford Foundation, Hivos, Open Society Foundations, Free Press Unlimited and Planned Efficiency Parenthood, or through micro-donations of the readers. and Content Such is the case of Chequeado, which, according to Laura producve muster Zommer, receives different kinds of donation “that can relevance vary from $2 to a $10,000 per year” (Laura Zommer, personal communication, November 5th, 2019). In kind donations are contributions in content made by inde- pendent experts and journalists, promoting a productive New producve structure based on networks and communities. alliances The main results in this study are: • Professional services include training and work- shops, consultancy, design and content produc- Figure 4. Sequence of activities with key partners. Source: tion for specific companies, or other short-term Own elaboration. specific engagements. • Memberships and subscriptions have an equal 4.3. Digital Native News Media Tend to Diversify Their weight among the entire universe of sources of Financing Sources income. The subscription model is based on pay- ment for content access, which is otherwise un- As answer to RQ3, there is a trend toward diversifica- available, while in the membership model, mem- tion of financial resources beyond advertisement. In fact, bers pay fees even though content is always openly only two out of the 14 cases depend solely or mainly available (Rose, 2019). Being a member provides on advertisement revenue (Minuto30.com and Kyenyke). extra benefits such as a participation in the news- Most of the interviewees’ reflections, in fact, agree with room decisions, content proposal, etc. Carolina Guerrero, CEO of Radio Ambulante, who argues • Quoting Martín Rodríguez Pallecer, Director and that “in a moment of uncertainty and precariousness in CEO Guatemalteca outlet Nómada, “Membership journalism, looking for different sources of financing is has a complete different philosophy compared fundamental” (Carolina Guerrero, personal communica- to subscription: with membership you look for a tion, November 26th, 2019). permanent relationship with the reader” (Martín The other 12 media openly discourage advertise- Rodríguez Pallecer, personal communication, ment income (e.g., Armando.info, Periodismo de Barrio, November 21st, 2019). El Definido, Nomada). One of the ways they hope to • The membership model, in fact, prevails in me- do this is by combining revenue streams, for instance, dia with a distinct civic aim, while subscription is advertisement and crowdfunding, or even merchandis- present in media that have very specialized con- ing. However, the models found as the most sustain- tent, such as economics or politics. Laura Zommer, Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 153 Internaonal Subscripon cooperaon Social events Professional services Crowdfunding Investors Bank loans Adversing Donaons Memberships Merchandising Grants Figure 5. Financial resources most employed. Source: Own elaboration. for example, states that Chequado “does not example, launched a crowdfunding campaign that have clients, since it is a civic and community raised 3%–5% of the income, whereas member- project” (Laura Zommer, personal communication, ship fees raise 10% to 15%. November 5th, 2019). • Bank loans are used at two key moments: to es- • International cooperation, although not a regular tablish start-up capital and to invest, once the source of income, does contribute to financing medium is recognized among its community, in journalistic projects towards which content is gen- technological development. erated and through which the temporary coverage • Subsidies are an economic aid that is also usually of the production costs of the medium is guaran- given in the first years of life of the environment. teed. These journalistic projects financed with in- These come from national public institutions or in- ternational cooperation focus on the themes de- ternational journalistic organizations. fined by the Millennium Development Goals. • Media with a diversity of revenue sources try to • Fund-raising events, as well as professional ser- make sure none of them represent more than 30% vices, are also wide and diverse: from social and of the total income generated. While those that cultural meetings, to the hosting of conferences in base their revenue in advertisement, even though public and academic institutions, alliances through they are a minority, hope to diversify their flow of which they analyze short-term problems of the traffic: direct 50%, SEO 30% and social media 20%, country and the region. although, the last two work from programmed • Merchandising, still in development, is presented advertisement. as a booming financing mechanism. The sense of • Regarding the cost structure, the media analyzed relevance and the brand as a differential value put around 55% of revenue into supporting their is exploited to generate economic resources and productive structure. In this aspect, we find four to build a community of users committed to the categories based on personnel numbers. 33% has environment. less than 10 full-time employees, 27% have be- • Investors are other resources used by digital na- tween 11 and 20 professionals, 27% between 21 tive media. These are usually the founders them- and 30 and the remainder 13% have more than selves, or the readers who participate as minority 30 employees. shareholder’s associations. The case of InfoLibre is specifically interesting: the majority of its stock- 5. Conclusions holders is made of journalists themselves, to- gether with the “Sociedad de Amigos de InfoLibre” To answer our research questions, the results allow to (Society of Friends of InfoLibre) who participate point out that digital native news media in Ibero-America buying stock options for €400 to €12,000. seem to share a horizontal, participatory organization • Crowfounding, while still being used as a financ- geared towards engaging the public to build a cohe- ing mechanism, is detrimental to the member- sive community. For many of them, in fact, the creation ship boom. The media consider that conducting of a community represents the core of their business a Crowfounding campaign is a high effort for the model. According to Laura Zommer, for example, “hav- resources that are collected. Animal Politico, for ing subscribers would be against Chequeado’s DNA, since Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 154 members form a community that provides, above all, Becerra, M., & Mastrini, G. (2017). Concentración y con- advice and sources, not only money” (Laura Zommer, vergencia de medios en América Latina [Media con- personal communication, November 5th, 2019). Jorge centration and convergence in Latin America]. Com- Pareja, Director of Minuto30.com goes further by defin- muniquer, 20, 104–120. ing the medium as “community with a communica- Birle, P. (2016). Thinking Latin America: Theoretical ap- tion medium” (Jorge Pareja, personal communication, proaches and spaces of reflection. Iberoamericana, November 22nd, 2019). 63(16), 7–13. In addition, the study concludes that there is a clear Bleyen, V., Lindmark, S., Ranaivoson, H., & Ballon, P. trend towards hyper thematization or the development (2014). A typology of media innovations: Insights of very specific content (such as, for example, fact- from an exploratory study. The Journal of Media In- checking), or content for very specific niche audiences novations, 1(1), 28–51. (hyper-local journalism). In terms of thematic areas, an Bouwman, H., Nikou, S., Molina-Castillo, F., & de Reuver, abundance of content related to inequality, corruption, M. (2018). The impact of digitalization on business politics and social issues has been found. Finally, the models. Digital Policy, Regulation and Governance, trend towards the diversification of financial revenue be- 20(2), 105–124. yond advertising sales is characterized. Cabezuelo-Lorenzo, F. (2013). Cinco años de crisis en el To conclude, on the one hand the importance given mercado de la comunicación (2008–2013) [Five years to horizontality and user-engagement is core to these of crisis in the communication market (2008–2013)]. media, creating a more collaborative form of journalism, Historia y Comunicación Social, 18, 703–715. able to benefit from User-Generated Content and the ac- Carlson, M., & Usher, N. (2016). News startups as agents tive participation of the audience. In addition, the trend of innovation. Digital Journalism, 4(5), 563–581. of creating a community of people sharing the same in- Castells, M. (2010). The rise of the network society. terests, implies that media working on specific thematic Malden: Blackwell. area are particularly welcomed. Accordingly, it seems Cervi, L., Paredes, O., & Pérez Tornero, J. (2010). 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Conocimiento [Information and social communica- Vukanovic, Z. (2018). The influence of digital conver- tion technologies: Towards the Knowledge Society]. gence/divergence on digital media business models. Monterrey: Universidad Autónoma de Nuevo León. Berlin: Springer. Tejedor, S., & Cervi, L. (2017). Análisis de los estudios de Yin, R. (1989). Case study research: Design and methods, Periodismo y Comunicación en las principales univer- applied social research methods series. London: Sage sidades del mundo: Competencias, objetivos y asig- Publications. naturas [Analysis of journalism and communication About the Authors Santiago Tejedor is Director and Associate Professor at the Department of Journalism and Commu- nication Sciences of the Autonomous University of Barcelona. He holds a PhD in Journalism and Communication Sciences from the Autonomous University of Barcelona and PhD in Project Engineer- ing from the Polytechnic University of Catalonia (UPC). He is a member of the Communication and Education Office research group, and researches in the areas of digital journalism, media conver- gence and new transmedia narratives. He is also a member of the Chair UNESCO UAB on MIL for Quality Journalism. Augusto Ventín is Professor at the Journalism School at La Sabana University, Colombia. He holds a PhD in Communication from Complutense University of Madrid (with honors, 2014) and a Masters in Journalism from the same University. His professional and academic activity focuses on understanding digital native media entrepreneurship, as well as production design and management of crossmedia and transmedia contents. Laura Cervi is a Researcher at the Department of Journalism and Communication Sciences of the Autonomous University of Barcelona. She holds a PhD in Political Science from the Universty of Pavia (Italy, 2006). Her main research interst are journalism and technology. Cristina Pulido is Serra Húnter Professor at the Department of Journalism and Communication Sciences of the Autónoma University of Barcelona. She is a Researcher in the Scientific Research Group-Communication and Education Gabinet and member of the Chair UNESCO UAB on MIL for Quality Journalism. She is currently participating in the R&D INFO/EDU: Collaborative Ecosystem of news audiovisual resources for education, and the network of excellence INNONEWS, innovation in audiovisual news. Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 157 Fernanda Tusa holds a PhD in Social Communication. She is Professor at the Technical University of Machala in Ecuador and Research Assistant at the Center of Investigation in the same institution. Her line research is in content analysis and new languages mediated by technology. Media and Communication, 2020, Volume 8, Issue 2, Pages 146–158 158