According to Igor Ansoff - one of the fathers of strategic management - “few companies that have stuck to their traditional products and methods have grown in stature”. Almost 70 years have passed since he made this statement, and this principle still holds – with the news media industry being no exception. Historically a bastion of tradition with its reliance on print, TV, and radio, the sector now faces rapid change demanding strategic adaptation – notably through diversification. The industry's once lucrative margins, sustained by traditional revenue streams, are increasingly at risk with the rise of digitalisation. In this article, we will outline FT Strategies’ upcoming report ‘Building Resilience: Diversification Strategies for the News Media Industry’ which explores revenue diversification and the various approaches to it.
Effectively diversifying your revenue beyond your core is undoubtedly challenging. Not every organisation can seamlessly set up a new digital platform (as Jagran New Media did), venture into digital marketplaces (as was the strategy of Schibsted), or launch a physical market out of a digital magazine (like Time Out). However, the key lies in a strategic, balanced expansion into new business models that leverages your core strengths and meets the emerging needs of your consumers.
The FT has come a long way from its roots as a legacy news publisher into a multifaceted media organisation. By launching new products such as FT Edit (a lightly adapted product that offers eight FT articles per day in an app-only experience) and FT Live (a global events business that organises professional conferences, awards, and other events), the organisation has effectively catered to specific niche audiences within the professional communities it serves, providing different sources of value to customers, and driving both engagement and additional revenue.
Whereas the FT’s ventures cater to existing audiences that it historically has served, our report also discusses examples of media organisations thinking more outside of the box (beyond the diversification ‘frontier’, as we characterise it) and finding innovative ways to diversify their revenue. For example, Time Out has evolved from a traditional print magazine to a diverse company that generates revenue from its global chain of physical markets, through eCommerce, and from hosted events - all the while leveraging its strong digital presence. This pivot towards both physical and digital experiences demonstrates how the brand has taken a non-traditional approach by leveraging its reputation, its capabilities and customer base to launch new business models that will help ensure sustainable revenue into the future.
For media executives, the path forward involves gaining a deep understanding of their current market positions, the unmet needs of their audiences, and the potential for new propositions to deliver substantive value. It requires making strategic choices that are not merely additive but transformative, aligning new initiatives with the organisation’s distinctive edge and market realities.
For an in-depth exploration of how news and media organisations can successfully navigate these waters, download our report Building Resilience: Diversification Strategies for the News Media Industry where we provide insights from successful (and not so successful) case studies and outline a set of ground rules on how news media organisations can have a winning diversification strategy.
About the authors
Tim is an Associate Consultant with over 2 years of experience in data-driven consultancy. He previously worked for the United Nations and as a data analyst for Constella Intelligence before joining FT Strategies. He holds an MSc in Global Governance from University College London.
Brundan is a Senior Manager with 10+ years' experience as a strategy consultant working with leading companies across technology, media and retail. He previously worked at PwC Strategy& advising on corporate growth strategy, M&A due diligence, new business models, operating model design and digital transformation.
