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Date: 7 months ago   Category: Society

Financial crisis in Republic. How do editions with paid content survive in Russia?


According to the investor of Republic, subscription model — only correct for media, excluding influence of the advertiser. But whether internet mass-media which live at the expense of subscribers have a future? Photo: The website Republik.ru screenshot Financial crisis in Republic — one of the few Russian online editions with paid content optimizes expenses. The investor of Republic Alexander Vinokurov in the letter has reported to the management of edition of July 27 about problems. He, in particular, writes that the edition has debts on the fees of authors and on insurance premiums in funds. Also I have offered that the editor-in-chief, two of his deputies and the chief accountant since August 1 have agreed to reduction of salaries to 60 thousand rubles a month. Vinokurov has told Business FM that the main problems are already solved. And the reason, according to him, that a part of new employees who were hired at the end of 2017 "haven't met expectations". But it is temporary difficulties. Vinokurov considers the model "content on a subscription" only correct. Alexander Vinokurov the investor of Republic "If to consider media industry, very important reservation, then exists only two models: advertizing model and model when the user, the subscriber, the listener, the viewer pays for content. It seems to me that the model advertizing comprises deep and very serious conflict of interests. Unfortunately, the advertiser influences content. It seems to me that the subscription model is the only model from the point of view of business for media in general. She is the most honest. She the most correct". Republic is included into one holding with "Rain". The TV channel sells the most part of the content on a subscription too. To the third Russian internet mass-media where there is paid content, Vedomosti is. Abroad it is much more such editions. For example, The Financial Times, The Washington Post, London The Times and many others. Why in the West this model works, and at us not really? Nikolay Uskov the former editor-in-chief of the Russian Forbes "Those media which are monetized on a paid subscription is, as a rule, very large buildings in which hundreds and thousands of employees which make a huge number of the qualified information work, process, filter, investigate and so on. It is not a case of "Rain", Republic at all my respect for them at all. These are editions good very much, but, of course, they just financially aren't able to afford materials of The New York Times level". According to Republic, it managed to come to the level of 20 thousand at the same time acting subscriptions at the beginning of 2016, and since then special changes weren't. Subscriptions generate revenue in 4,5 million rubles monthly, "Jellyfish" reports. For advertizing of traffic Republic haven't enough, and interferes with an exit in a mass segment paid content. Possibly, such business model will get accustomed only in highly specialized editions, the managing director of OMD MD Andrey Brayovich considers. Andrey Brayovich the managing director of OMD MD "Is, for example, professional magazines which, suppose, are focused

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