The quality of news articles is assessed not only by their content but also by the media brand which publishes them. In today’s information-saturated environment, brands serve as cognitive shortcuts for readers, helping them navigate vast amounts of information. Consumer-based brand equity (CBBE), defined as the value a brand holds based on consumers’ awareness and associations, plays a critical role in this process. It is crucial for those providing financial support to journalism to understand this dynamic, as it emphasises the significance of brand reputation and the potential influence of brand equity on public trust and the perception of journalistic quality.
The role of journalism in supporting democratic societies is widely acknowledged. The quality of journalism is often gauged by its impartiality, reliability, and factual accuracy. However, there is no universally agreed-upon definition of news quality. There is a discrepancy between how journalists and consumers evaluate quality. However, studies indicate that the majority of news recipients can distinguish high-quality articles. This research extends this understanding by examining how media brands affect recipients’ assessments of news articles, particularly through CBBE.
Media brands act as reliable indicators of news quality, particularly in an environment where readers cannot personally verify the events covered in news stories. Brands convey emotional and cognitive associations that shape perceptions of content even before it is consumed. For example, articles from well-known, quality brands are typically rated more favourably than those from tabloid brands, even when the content is identical. This makes the media brand a critical factor in shaping audience evaluations, particularly in the online news environment, where strong brands often exert a greater influence on news selection than the content itself. The increasing prevalence of sensationalism has further obscured the distinction between quality and tabloid media, resulting in a convergence where both seek to deliver factual yet appealing content.
The study reveals that consumers rely on heuristic cues, such as media brands, to assess news quality when direct content evaluation is not possible. In this context, CBBE emerges as a critical factor. A positive CBBE results in stronger brand loyalty, higher perceived quality, and more favourable brand associations, all of which influence how consumers assess news quality. The familiarity of a media brand can prompt the formation of cognitive associations, which in turn influence the perceived credibility and accuracy of the news articles it publishes. The research demonstrates that articles from reputable brands like Süddeutsche Zeitung are generally evaluated more favourably than those from sensationalist brands like Bild. This effect is mediated by CBBE.
For journalism funders and donors, the implications are clear. CBBE, driven by brand awareness and consumer associations, directly impacts the perceived quality of news, particularly in areas such as factual accuracy, impartiality, and relevance. News outlets with a strong, positive brand identity can effectively signal high-quality journalism to their audiences, even in cases where the actual content may not be significantly different from that of their competitors. This indicates that maintaining a robust and reliable media brand is vital for maintaining audience trust and ensuring that quality journalism is recognised and valued by the public.
The research also examined how the impact of CBBE differs across various quality subdimensions. It revealed that brand influence was particularly strong in assessments of factual accuracy and impartiality, while its impact was less pronounced for dimensions like comprehensibility. This suggests that readers may rely more heavily on brand equity when evaluating elements of news that are more challenging to assess based on the content alone. For journalism funders and donors, this emphasises the value of investing not only in the production of quality journalism but also in the development and maintenance of strong media brands. A positive brand image is an effective tool for ensuring that quality journalism is perceived as such by its audience.
The convergence of quality and tabloid journalism also presents another challenge. The role of media brands in signalling news quality becomes even more critical. Funders and donors need to consider how this convergence affects public perception of journalistic quality and what it means for their support of independent, high-quality journalism. In a media landscape where strong brands can enhance the perceived quality of journalism, supporting media outlets in building their brand equity may be as important as funding content creation.
Nevertheless, while CBBE plays a significant role, other factors like brand knowledge and the physical presence of media outlets (e.g., their visibility in public spaces) also contribute to how news quality is perceived. For funders and donors, understanding the full range of factors that influence audience perception of quality is essential for making informed decisions about where to direct their support. By helping media outlets build positive brand equity and maintain a strong public presence, funders can enhance the impact of their contributions, ensuring that quality journalism is recognised and trusted by the public.
Leuppert, R., Bruns, S., Rahe, V., & Scherer, H. (2024). What’s a news media brand worth? Investigating the effect of cognitive brand representations on recipients’ quality assessment of news articles. Journalism, 0(0). https://doi.org/10.1177/14648849241285497
In March 2024, a consortium of seven media organisations and a media-focused technology provider launched the Taktak project, with the objective of developing an innovative donation solution, supported by the European Commission. The initiative addresses a fundamental challenge facing modern journalism: the need to identify sustainable revenue sources in the context of evolving consumption patterns and the adverse circumstances faced by freelance journalists. It introduces an innovative approach to donations, whereby readers can decide which organisations to support.
The concept for Taktak was developed by Worldcrunch, a Paris-based digital magazine known for its work with international partners. Lucie Holeček, a design-thinking expert and consultant on the project at Transitions Online, outlines that Worldcrunch’s distinctive collaborative model presented challenges that existing payment platforms were unable to accommodate. As Worldcrunch frequently translates and shares articles with various international media partners, a key challenge emerged in relation to the allocation of donation revenue across contributors. “None of the existing payment solutions worked,” Holeček states, adding that a new approach was needed to ensure funds were distributed fairly among all parties involved.
The Taktak project represents a convergence of three key developments in the journalism sector. Firstly, the initial research phases revealed significant problems faced by journalists, particularly freelancers, in terms of job stability, financial security and stress levels. “We were aware of the difficulties, but not to this extent,” Holeček recalls. Secondly, there is significant untapped potential for joint reporting efforts across languages and borders, which could enhance the scope and reach of journalism. Finally, there is an increasing need to generate direct revenue from the audience.
The Taktak consortium, formed by Worldcrunch, comprises an impressive array of local, national, and international media outlets, which are coming together to explore these opportunities. The consortium includes Mensagem, which provides local news in Lisbon; Pod Tepeto, a media outlet based in Plovdiv, Bulgaria; La Marea, a Spanish publication; and Livy Bereg, a Ukrainian news source. The platform’s geographic diversity and the difference in scale between its members enables it to address the needs of journalists and readers at multiple levels, from the hyper-local to the transnational. The involvement of these media groups also benefits younger journalists, who are facing an increasingly unstable job market and income situation. The consortium’s reach is extended further through the inclusion of WAN-IFRA, the World Association of News Publishers, and Transitions Online, both of which have extensive networks within the journalism community.
Taktak is currently a closed consortium, funded by an investment of €1,376,040 over two years. Eighty percent of this funding, totalling €1,100,832, is provided by the European Commission under the Journalism Partnerships Collaboration call. The remaining 20% is provided by the Taktak partners themselves. “The funding goes toward creating the tool,” said Holeček. She adds that the tool is currently in development and will support various types of content, including articles and podcasts, with options for transparent payment distribution. The tool enables readers to make donations and to see precisely where their contributions are being allocated. This transparency is a key element of the project’s value proposition for donors, as it builds trust.
One of the distinctive features of Taktak is its flexibility. Readers are able to select the total donation amount, while collaborating journalists can choose the ratio of how it is shared. Holeček states that Taktak’s donation model provides an alternative to the fatigue that many readers feel with multiple subscriptions. This new solution offers flexibility, allowing readers to give money without any obligation. They can simply indicate their appreciation for an article and choose to support the publication directly. This approach is particularly beneficial for freelancers, who might otherwise be excluded from revenue-sharing models even when their work is particularly successful.
Taktak’s primary objectives extend beyond the mere creation of a new revenue stream. They also encompass the fostering of collaboration across media, the promotion of diverse voices, the growth of reader engagement, and the encouragement of a more resilient journalism sector. Taktak’s donation-based model encourages journalists and media organisations to commit to quality, in-depth coverage that resonates with readers, with the aim of creating a mutually beneficial relationship. The platform’s secondary objectives include facilitating the sharing of best practices and insights among media outlets, which can ultimately benefit the wider sector.
The tool is currently in the development stage and has been designed with the objective of collecting payments efficiently while distributing them fairly. The tool is essentially a flexible ‘donate’ button that allows readers to decide how much to give to each party involved in the content’s creation. This flexibility addresses a market gap for direct support of journalists, particularly in cases where readers wish to contribute without committing to a full subscription. As Holeček explains, the objective is to make the process “as flexible as possible”, offering financial support to journalists facing financial difficulties who might otherwise go unrewarded.
The first prototype of the Taktak tool is scheduled for release in 2025, following which it will undergo further refinement based on feedback. Holeček emphasises that, while the eventual aim is to roll out Taktak across Europe, the team is mindful of the regional nuances involved. “Every country is specific,” she states, citing differences in consumer attitudes towards paying for news content and in regulatory frameworks. The consortium’s approach to scaling will be strategic and tailored to the specific needs and context of each market.
Tetiana Gordiienko of the Media Development Foundation offers insights into the challenging task facing Ukrainian media as they navigate donor dependence, operational challenges, and the urgent need for more sustainable funding models amid the ongoing impact of war.
“I have almost stopped writing stories… We spend up to 30% of our time on [operational workload related to] grant projects. This seems to me like a lot and we can turn into a media outlet for donors and not for our audiences. This scares me a lot. I see such examples […] and I am very, very, very afraid to become the same“
“The emphasis I want to make is that donors need to sit down, look around, find ways for themselves to choose projects they trust and give them a chance to relieve a little administrative burden and give them the opportunity to secure long-term funding. […] To live and work here, you need a little more trust, because if we lose it now, we lose it gradually, then there will simply be no one to make good journalism.”
The preceding quotations are not intended as a frightening narrative for journalists as part of a Halloween prank. They are drawn from a recent research study, “The Donor Dilemma: Rethinking Support Models for Ukrainian Media’s Future” conducted by the Media Development Foundation (MDF), a Kyiv-based non-governmental organisation (NGO).
Following two years of full-scale war with Russia, Ukrainian media outlets are facing significant challenges. On the one hand, they have established close cooperation with numerous international donor organisations, which have become the main source of funding for most Ukrainian newsrooms, especially at the local level. On the other hand, such close and prolonged interaction could not fail to have had an impact.
The respondents who took part in the MDF study concluded that their media organisations develop their financial plans while taking into account the financial year of donors, or postpone major strategic decisions until they receive funding or confirmation of project agreements. They also pointed to the additional operational burden associated with project-based financing and the necessity to align their goals with the strategic goals of the projects funded by donor organisations.
This research is based on in-depth interviews with representatives of nine media outlets and consists of a thematic analysis of the collected data. Furthermore, it forms part of a number of other MDF research projects. To illustrate, MDF ran a study of the state of local media in Ukraine that comprised a survey of 37 media outlets, 12 in-depth interviews, and three expert interviews. The study revealed challenges related to funding, strategic planning, and human resources in media organisations. “The Donor Dilemma…” employs a nuanced qualitative approach to investigate these issues in a smaller sample of respondents.
As the donor and media systems become increasingly complex and intertwined, the situation is further complicated by the reduction of funding for quality journalism. The respondents observed a notable decline in the number of grant opportunities for media. Concurrently, the advertising market in Ukraine, which has been affected by the ongoing war, is only showing minimal signs of recovery. As a result of the widening funding gap, there is a risk that media organisations may be forced to downsize their teams and reduce their capacity. The least resilient players may ultimately be forced out of the media market.
“It seems to me that core support is the best model in general that can be now [for media]. I know that many Russian media outlets in exile receive core support with not so much effort, while Ukrainian editors, unfortunately, have to constantly invent some projects. Plus, these permanent projects, it seems to me, still slightly distort the reality of the needs that exist within our audience” – An editor-in-chief of a local media outlet in Ukraine.
This excerpt from the MDF report focuses on the challenge of donor relations, but there are other needs as well, including psychological support for teams under immense pressure, a crisis of human resources, and the development of a strategic planning culture.
The Ukrainian media market is approaching a point where it must undergo another round of transformation. Media organisations have already demonstrated remarkable resilience in maintaining their teams and operating effectively, despite the challenges and risks posed by the ongoing conflict.
Particularly in the Ukrainian context, the media plays a significant role at both national and local levels in supporting democratic processes, post-war recovery, and community development. While some needs, such as funding or retaining qualified personnel, are relatively visible, the research conducted by the MDF also revealed a need for solutions to maintain the progress that the media have made with an incredible effort over the last two years. One of the most urgent requests from the independent Ukrainian media is to renegotiate the funding models with the donors to allow them to work in a more sustainable and predictable way.
We encourage European partners to consider new, sustainable approaches to donor funding that will help build a resilient, independent media landscape in Ukraine, and also to join MDF in the effort to develop the Core Media Fund, an initiative designed to raise funds for sustainable ways of financing independent journalism and media advocacy in the country.
Lot Carlier, Executive Director at V-Ventures, the investment arm of the Netherlands-based Veronica Foundation, emphasises the critical importance of fostering financial independence for media outlets to maintain editorial freedom. V-Ventures supports investigative journalism, engages younger audiences, and backs regional media. Their strategy is twofold: providing funding and practical consultancy to help media companies strengthen their business model and establish sustainable revenue streams, and invest in companies that create technology, tools and channels for these media companies.
Why is it important for the Veronica Foundation to fund journalism, and what led to the establishment of V-Ventures?
Carlier: We created V-Ventures as our investment arm to focus on strategic investments, while keeping donations under the Foundation’s purview. Although part of the same organisation, V-Ventures specialises in the investment side of supporting journalism. Our roots lie in media—we were once a rebellious media company broadcasting from a ship in extraterritorial waters when we weren’t allowed to broadcast in the Netherlands. This unconventional start has defined our innovative approach and commitment to independent journalism.
Over recent years, we’ve witnessed a decline in media independence across Europe, marked by increased concentration and political influence over media outlets. Supporting innovative, independent voices, especially in regions where media freedom is under pressure, is more important than ever. We have been dedicated to supporting independent media since selling off our own media assets, and we have recently broadened our focus to also include smaller and mid-sized independent media companies that ensure pluriformity of the press and innovation in the sector.
What is V-Ventures’ approach to supporting media companies?
We have a dual approach. First, we support media companies on the business side to help them become less reliant on grants and donations and develop new revenue streams tailored to their specific markets. This support is essential because donor dependency can lead to a shift in focus away from building a strong audience and sustainable revenue generation. We support these companies to establish revenue models that fit their context, whether through syndication, subscriptions, or other methods.
Second, we also invest in media tech companies that support content creators, such as those developing innovative tools to enhance efficiency. Additionally, we have initiatives like SV-Docs, a documentary fund to support journalistic storytelling. This holistic approach allows us to create a blended return on our investments while fostering growth across the media ecosystem.
In which regions does V-Ventures focus its investments?
Our focus is on Europe, and we target three main topics. First, we support news and investigative journalism in countries where media freedom is at risk or where there’s a significant concentration of media ownership, which reduces pluralism. Second, we focus on media companies that are engaging younger generations (Gen XYZ) who are not as connected to traditional media; reaching them with independent news is crucial. Third, we prioritise regional and local journalism as trust in national media declines. We are exploring sustainable business models for all media to replicate. Additionally, as already mentioned, we invest in tools that make the sector more efficient and effective and in channels, like podcast companies. Lastly, we invest in funds to broaden our reach, such as Mercuri and NBM.
Do you provide only capital, or do you also offer guidance or training?
For media companies, we offer more than just capital. We often provide a three-day consultancy programme where we work closely with the entire team to identify the best ways to generate revenue. We may fund specific business roles, like a publisher, for one or two years to help build the business side until it becomes self-sustaining. This approach is different for media tech companies, which operate with their own market strategies.
What is the most important lesson you’ve learned through investing in media companies?
The most critical lesson is that financial independence is key to maintaining editorial independence in the longer term. Media companies must generate revenue beyond donor support to remain free from external influences. In the early start-up phase, donor funding may be necessary to build an audience and establish a critical mass of content. However, as the organisation matures, it must develop diversified revenue streams to become truly financially independent.
What challenges have you faced in funding journalism in Europe?
One major challenge is that many smaller independent media organisations haven’t developed a business strategy yet. Journalists often focus on creating impactful content driven by their convictions, and shifting attention to revenue generation can be challenging. This is where editors sometimes step in to handle subscriptions or other business tasks, but it’s tough to balance this with their focus on high-quality journalism. Dedicated staff to take care of the business side allows journalists to focus on what they do best—creating valuable content.
What has been your biggest success story so far?
While we’ve completed successful exits on the business side, our blended investment approach combining business and content-focused support is still relatively new. We have seen promising indications of a solid blended return over the past five years, although it’s too early to present final financial results. We aim to demonstrate this model’s viability to other impact investors in the coming years by showing that media investment yields reasonable returns while having a huge impact on democracies.
Do you have advice for organisations considering funding journalism for the first time?
It’s crucial to raise more awareness about the need for support in this sector. The current state of media in Europe, and globally, is challenging, and more help is needed to preserve independent voices. Impact investors can create immense change. The message should be clear: funding journalism isn’t just valuable—it’s essential for sustaining democracy and informed societies.
While the new moderate government in Poland has taken steps to restore media pluralism and increase media freedom, experts stress that true reform requires more than policy shifts. Restoring trust and fostering genuine media diversity will be a prolonged effort, offering critical lessons for countries struggling with illiberal governments and their legacies.
In October 2023, after eight years under the governance of the right-wing populist Law and Justice (PiS) party, Poland witnessed a significant shift in the political landscape as voters turned out in record numbers to elect a new moderate government led by Donald Tusk. The election followed a period during which there was a notable decline in media freedom and independence. Upon assuming power in 2015, PiS promptly sought to consolidate control over state-owned media, transforming them into instruments of government propaganda. The party introduced legislation that gave it the authority to appoint management for state-controlled broadcasters and agencies, effectively transforming TVP, Polish Radio, and the PAP news agency into mouthpieces. The impact on media pluralism was significant, with consequences extending beyond the state sector.
The government’s influence extended to private media outlets, as evidenced by the 2021 acquisition of Polska Press by state-owned oil company PKN Orlen. Following the acquisition, numerous editors were dismissed, resulting in a shift in the publication’s editorial stance to align with the government’s perspective.
The government installed following the 2023 elections has committed to implementing measures to restore media pluralism. However, Michał Głowacki, an associate professor at the University of Warsaw, highlights that Poland’s media landscape remains polarised, split into “two competing media tribes.” This polarisation is further compounded by opacity in media ownership, which complicates assessments of genuine pluralism. Despite the new government’s pledge to increase pluralism, tangible results remain elusive, according to Głowacki, who adds, “I would like to see much more discussion about restoring media pluralism.”
One of the most significant actions was directed at the public service broadcaster, TVP. During the PiS administration, TVP became associated with far-right propaganda, prompting criticism from the European Union and numerous international organisations promoting media freedom. In December 2023, shortly after the Tusk government assumed power, Poland’s culture minister took prompt action to replace the leadership of TVP with a new management team. While this decision has been welcomed as a catalyst for change, it has also attracted criticism. Those in support of the former administration and a number of human rights organisations have expressed concerns about the precedent this sets. Głowacki highlights that public media has historically been susceptible to political influence, irrespective of the governing party, making it a contentious issue that dates back to the 1990s.
Marcin Gadziński, Program Director for Europe at the Media Development Investment Fund (MDIF), believes that while TVP no longer operates as a blatant propaganda machine, there is still room for improvement in terms of achieving a more balanced content output. “There are better journalists now, and the decision-making positions are filled by people with good reputations,” he states. However, he also notes that certain topics remain off-limits, and the TV station rarely criticises the government. Głowacki agrees that TVP’s current state is far from optimal, particularly with regard to the need for more adaptive strategies in light of the evolving media landscape and the emergence of multigenerational public service media.
The challenges associated with this transformation extend beyond editorial policy. As Gadziński notes, the dismissal of hundreds of employees from TVP has created a significant shortage of qualified journalists and editors, often drawing talent away from independent outlets and making it more challenging for those outlets to retain skilled professionals.
The issues do not solely affect the public service broadcaster. The two largest private broadcasters in Poland, TVN and Polsat, are also facing their own set of challenges. Warner Bros. Discovery’s plan to sell TVN Group has prompted speculation about potential buyers, including the Czech PPF group and an American broadcaster, as well as a Hungarian billionaire with close ties to Fidesz, the party of Hungary’s Prime Minister Viktor Orbán, a close ally of PiS. Gadziński questions the likelihood of such a sale to Orban-linked interests, noting that “Orban-related business groups are already active in the area, looking for opportunities, but would an American mega-corporation sell something to them? I doubt so.” Nevertheless, he also states that nothing is impossible.
Other significant stakeholders in this challenging situation are Orlen Press, which oversees the largest group of regional newspapers in Poland, and Ruch, the second-largest newspaper distributor, both of which are owned by PKN Orlen, the state oil company. Despite reports that Orlen is considering divesting its media holdings, there have been few public developments. Gadziński suggests that even if Polska Press were sold, its reputation, tarnished by political appointments and disregard for market trends, would be difficult to rebuild. Głowacki believes that selling these assets would not significantly change the landscape, as “people don’t really buy their newspapers anymore.”
State-controlled advertising funds represent another key factor influencing the Polish media landscape. Tadeusz Kowalski’s analysis of Kantar Media data demonstrated that state-owned enterprises allocated a considerable portion of their advertising budgets to media outlets that reflected the government’s narrative. This practice, which aimed to maintain favourable coverage while limiting the financial viability of critical outlets, attracted significant criticism from international media freedom advocates. Głowacki states that, as yet, there is no updated data available on whether these practices have undergone a change under the new administration.
In the coming period, the challenges to restoring media pluralism are significant. Gadziński states that PiS embedded “landmines” throughout the system before leaving office, presenting the current administration with a dilemma: whether to move ahead and “lose some limbs”, or to navigate cautiously and make compromises. The issue of reclaiming public media without controversy is a significant one. “How else could public media have been taken back? No idea,” Gadziński said, emphasising the importance of leadership by individuals of integrity for the implementation of long-term solutions. “My advice for other countries in similar situations is to put such people in [those] positions.”
The Polish media landscape remains highly fragmented, reflecting a broader cultural and trust deficit. Głowacki highlights that the absence of a “common space for deliberation” intensifies polarisation, which legislation is unable to resolve on its own. The path to media reform needs more than just new regulations; it requires a significant cultural transformation to rebuild trust and foster an environment conducive to pluralism.
Nevertheless, these developments offer international journalism funders valuable insights. As Gadziński points out, providing support to independent media may be proving to be a sound investment. “Poland survived eight years because of the power of independent media,” which was the most robust in the region, as some international media groups are still active in the country. He adds that “a strong independent media is a battle worth fighting.”
Autocrats in Central and Eastern Europe are obsessed with independent journalism. They badmouth the press and label them as ‘opposition’ every chance they get. They create Foreign Agent Laws to starve independent outlets of their funding. They resort to legal intimidation, physical threats and murder to silence the truth. They understand and fear the power of information and will spare no expense to control it. On the flipside, our Philea membership survey points to journalism as the least chosen topic of interest two years in a row. Are philanthropists missing a trick? Are we not valuing journalism as much as the likes of Orban? Or are we unconvinced that our support could make a difference?
Last week at KoneKtor, I brought together a panel of journalists and journalism funders in the CEE region to help foundations understand why supporting journalism has become more indispensable and meaningful than ever before.
A politicised market model
In 2011, Tamas Bodoky founded atlatszo.hu – “atlatszo” means transparent in Hungarian – as the first Hungarian investigative journalism non-profit. While Tamas left his former publisher and established Atlatszo to be free from political influence, the challenge to retain editorial independence remains. In Hungary, where mainstream media is captured by the state and critical voices are labelled as opposition, advertising revenue doesn’t follow the market model, but political logic. With businesses afraid of being associated with critical reporting, sustaining an investigative outlet solely on ad revenue is simply infeasible.
To finance their work, some outlets experiment with forms of paywalls. For journalism non-profits established to promote transparency, accountability, and freedom of information, using paywalls feels contradictory to their goal. It would also mean losing even more readers to propaganda news, which is freely available. Instead, many critical outlets turn to crowdfunding. Yet the pressure to choose a side remains. Whilst the situation in the Czech Republic is not as alarming as that in Hungary, polarisation creates a highly volatile readership… to quote Pavla Holcová, “We are not publishing stories about local kittens”.
The kind of stories published at Investigace.cz are bound to create strong opinions and spark emotions. As investigative outlets naturally report more often on those in power, especially the ones spending taxpayer money, they attract more readers and donors that align with the opposition or are unwillingly identified or branded as against the reigning party. When they inevitably produce an article that criticises someone in the opposition, the result can be a devastating loss of donors and readership, and accusations of having been bought up by ‘the other side’.
Polarisation doesn’t only endanger the editorial independence of investigative journalism. Politicised and contentious reporting gets more traction and is actively promoted by Big Tech platforms. In contrast, general interest media focused on keeping the public informed and engaged in their local and national environments have a hard time ‘selling’ their non-politicised content to the public, and also attract less funders. David Klimeš understands foundations favouring specific outlets, especially when they align with their personal or organisational values. With the Endowment Fund for Independent Journalism however, David is on a mission to help local donors (e.g. business owners) understand that a model of concentrated ownership where public opinion is swayed by the highest bidder can easily backfire when in the ‘wrong’ hands. In other words, a stable and independent media is good for business. While project funding or targeted funding for a specific outlet can serve as a great entry point for funders new to journalism, the NFNZ brings local funding together and invests in media pluralism, balancing support for a specific issue or outlet versus support for the sector as a whole. Additionally, it is now also looking to redirect more support to local media outside major cities where the only access to information is through outlets owned by local majors.
Scare tactics
My main takeaway from the conversation at KoneKtor is that in times of state sponsored polarisation, philanthropic support is a more crucial source of income than it ever was. It alleviates the pressure on independent media outlets to conform to a polarised readership or a market logic that serves the political agenda. It promotes nuanced reporting, critical yet party-neutral investigations and it safeguards the access to general interest information.
This last lifeline is exactly what Orban and other autocratic regimes in the CEE are now trying to cut. With a recent surge in ‘Foreign Agent’-style laws, European autocrats have added a dangerous instrument to their playbook. Despite the official communication that Hungary’s new Sovereignty Protection Office was established to stop domestic political actors from accepting foreign funds, one of the first targets they cracked down on was the independent media outlet Atlatszo. Not only do these laws impose crippling monitoring and reporting requirements, they are an obvious attempt at delegitimising their target’s work in the eyes of the public and scare off funders.
We at Philea will continue to voice our concerns over the rise of Foreign Agent Laws; their detrimental effects on targeted grantees should be taken seriously. Fortunately, the message from journalism funders at KoneKtor was resoundingly clear: these laws will not stop international funding from reaching independent media in Central and Eastern Europe. They will not deter foundations already active in the region and some have even ramped up their support. Yet much more funding is needed if we want independent journalism in Europe to endure. If you are not supporting journalism yet, let Orban’s obsession be all the proof you need of the power and value of a free press.
By offering financial aid, mentoring, and training, journalism-funding programmes can significantly enhance media sustainability, despite ongoing challenges such as government pressure and revenue limitations. Lessons learned from a four-year programme highlight the need for long-term support for independent journalism in authoritarian environments.
In 2021, the Media and Journalism Research Center (MJRC) launched a four-year programme designed to support independent news media in heavily controlled environments, where market conditions are so distorted that independent journalism struggles to survive. For safety reasons, MJRC does not disclose the names and locations of the media outlets in the programme.
MJRC worked closely with local experts to combat this phenomenon, also known as media capture, by financially supporting independent online media organisations in rural areas. The programme aimed to enhance their sustainability, focusing on three critical areas: financial stability, organisational resilience, and audience growth.
The programme was funded with nearly US$1 million. In addition to financial support, it incorporated a mentoring component. At the outset, each participating media outlet set specific goals aimed at achieving sustainability. It quickly became apparent that outlets with solid business management were more successful in reaching these objectives, while those led purely by journalists faced more significant challenges, particularly in the programme’s early years.
Key Successes
One of the most apparent successes of the programme was the significant improvement in the operations of participating media outlets. As one editor remarked, the programme was instrumental in maintaining and enhancing their business. A distinguishing feature of the MJRC programme when compared to similar initiatives was the provision of core funding (defined as financial resources to cover all operational costs). Many other support programmes focus exclusively on training journalists in specific skills or reporting on particular topics, which, while beneficial, do not address the critical need for stable core funding. Such financial support is essential for small media outlets, especially those striving for sustainability.
The MJRC programme integrated training and counselling as a complementary element. The training was designed to be non-intrusive, allowing participants to balance these activities with their daily responsibilities. Webinars on topics like fundraising and managing internship programmes were particularly valuable, with one editor describing the experience as “eye-opening.”
The programme also significantly boosted the reach of participating media outlets. Almost all participants reported increases in social media followers and readership. The financial stability provided by the programme allowed these outlets to publish impactful stories on topics often neglected by mainstream media. In regions where local media is controlled mainly by government-aligned owners, these outlets usually serve as the sole sources of critical local news coverage.
Challenges
Nevertheless, the programme also highlighted significant challenges. The media landscape in captured environments, where the media are controlled by the government, owners with vested interests rather than the public good, or a combination of both, remains a formidable barrier to supporting independent journalism. Independent outlets often struggle to gain access to government officials, are labelled as opposition media, and are subjected to continuous smear campaigns. These difficulties are compounded locally, where news organisations frequently encounter resistance from municipalities.
Securing advertising revenue is another major challenge. In markets dominated by the government, advertising funds are typically directed only to aligned outlets. Even in towns governed by opposition parties, municipal funds are rarely allocated to independent media. Additionally, many private companies are reluctant to advertise in independent media, due to fear of government retaliation. Editors in the programme shared instances where potential advertisers were explicitly warned against buying ads with them.
Challenges related to human resources are also significant, with many outlets struggling to attract and retain staff for essential roles like sales managers or community coordinators. This is often due to salary constraints and the stigma attached to working for independent media in authoritarian environments, where such affiliations could have negative repercussions for employees and their families.
Moreover, the heavy reliance on Facebook as a primary platform for reaching audiences poses a significant risk. Changes in Facebook’s algorithm in 2023, which reduced the reach of news media, led to a noticeable drop in daily traffic for many outlets. In response, some began exploring alternative outreach methods, such as launching newsletters or expanding to other social media platforms like Instagram or YouTube. However, these efforts require additional funding to hire skilled social media managers.
The Path Forward
One of the most important lessons learned from the programme is that long-term sustainability for media outlets in captured environments hinges on diversifying revenue streams. However, this is particularly challenging for outlets in rural areas, where access to ad revenue is severely limited. As a result, these outlets often rely on philanthropic funding or direct audience support. While philanthropic funding is vital, it is not a long-term solution in authoritarian environments. Therefore, the most viable path forward is to focus on building a strong, engaged audience base.
Still, due to the limited purchasing power of potential audiences in many of these rural areas, it is unrealistic to expect audience revenues to sustain these organisations in the short or mid-term. Media outlets should, however, be encouraged to continuously seek feedback from their audience, refine their content strategies to align with audience interests, and explore ways to generate financial support directly from their readers.
For journalism funders, this also calls for a change in strategy. Rather than continuing to fund outlets hoping they will quickly become self-sustaining, funders should consider long-term commitments of at least five to eight years. This would provide outlets the stability needed to build strong relationships with local audiences and develop sustainable business models.
Ultimately, the MJRC programme, which concludes soon, has demonstrated that while supporting independent media in captured environments is fraught with challenges, it can result in significant strides. As one editor in the programme noted, the funding provided a lifeline that helped their outlet survive and transformed it into a legitimate news organisation. Without such support, the very existence of these independent outlets would be at risk, underscoring the critical importance of long-term investment in the future of independent journalism.
For more information, please contact the Center at mjrc@journalismresearch.org.
Defector, a for-profit, employee-owned news organisation, has successfully balanced its economic viability with its journalistic values—an achievement many news outlets struggle to attain. Founded in 2020 by former journalists from the sports blog Deadspin, Defector has distinguished itself with its employee-owned cooperative model and its rare economic success.
Traditionally, US journalism’s financial model has been anchored in the “dual-product model,” where news organisations generated revenue by selling content to the public and selling the public’s attention to advertisers. However, with the rise of the internet, this model has faced significant disruptions, prompting a search for new revenue streams.
One proposed solution has been audience engagement, which involves news organisations interacting with their audiences, mainly focusing on diverse and marginalised communities. This idea has been championed by some as a moral obligation and a potential source of revenue. For instance, studies have suggested that engaging with marginalised communities can lead to new financial support for news organisations. The Columbia Journalism Review has also noted that more engaged audiences tend to contribute more financially. This optimism is based on the belief that, as journalism shifts towards direct audience support, engagement activities will become essential in building and sustaining these audiences, thereby increasing revenue potential.
However, there is scepticism regarding the effectiveness of engagement activities as a revenue strategy. Critics argue that, while engagement might foster a sense of community, there is little empirical evidence to support the notion that it leads to economic success. Moreover, some contend that the focus on engagement, especially through web metrics, can harm journalism’s financial health by encouraging the pursuit of viral content at the expense of long-term loyalty and viability.
Defector serves as a compelling case study in this debate. Its success is closely linked to its emphasis on audience engagement, particularly through its comments section, which plays a central role in both community building and economic gain.
Defector’s business model features a tiered subscription system, with a notable portion of subscribers opting for the more expensive tier that grants access to engagement activities like commenting. This indicates that a significant number of subscribers are willing to pay a premium for the ability to engage with the community, suggesting that Defector’s economic success is indeed tied to its engagement practices.
Defector’s engagement activities, including an active comments section, Q&A sessions, and interactive events, contribute to its community-building efforts and financial stability. The comments section, in particular, is highlighted as a key engagement tool. It encourages subscribers to interact not only with the content, but also with each other, fostering a sense of ownership and accountability among users. This self-moderation helps maintain a civil and constructive discourse, contrasting with the often-toxic environments found in free-to-access comments sections on other sites.
In addition to the comments section, Defector regularly hosts Q&A sessions and events on platforms like Twitch, where journalists engage with subscribers in a more informal, personal manner. This helps journalists better understand their audience and solidifies the bond between the staff and the community, creating a sense of belonging that goes beyond the typical journalist-reader relationship.
Three key factors contributing to Defector’s success can be identified: positive engagement, a strong sense of community, and delivering clear value to subscribers. The positive environment fostered by the site’s paywall ensures that those who participate are genuinely interested in the content, benefitting both subscribers and journalists. This sense of community, carried over from Deadspin, is intentionally cultivated and has led to a loyal subscriber base willing to pay for premium engagement opportunities. Finally, Defector’s success is also attributed to the high quality of its content, which subscribers view as worth paying for, ensuring that engagement efforts are not just superficial, but are tied to delivering real value.
While Defector’s model is not universally applicable, especially given its niche focus on sports and culture and its roots in Deadspin, it offers valuable insights for other news organisations. By centring their business models around their audience, news organisations can potentially achieve a better balance between economic stability and journalistic ideals. However, there is still a need for further research to explore how Defector’s model can be adapted or replicated in different contexts, particularly in understanding the perception of its audience and how this contributes to its success.
Ferrucci, P. (2024). Engagement as Revenue in Journalism: Turning Community, Comments, and Access into Economic Viability. Journalism Studies, 1–19. https://doi.org/10.1080/1461670X.2024.2380713
With local journalism in crisis, more and more cities are beginning to recognise the vital role of local news in building informed communities. An increasing number of initiatives launched by city councils reflect a growing commitment to sustaining local journalism.
Local journalism is facing a significant crisis, with newsrooms closing down at an alarming rate and leaving communities in news deserts, areas where there is little to no local news coverage. The repercussions of this decline extend far beyond the news industry, impacting local democracy, civic engagement, and even public finance.
Local journalism serves several critical functions within a community. It acts as a watchdog not only for government accountability, but also for the private sector, encouraging adherence to laws and regulations. It is also an effective tool for city governments to disseminate public notices and information on various topics.
Furthermore, as Tarsi Dunlop, Senior Program Officer, the German Marshall Fund’s Cities programme argues, local journalism helps people engage in their communities and bolster trust in local institutions. As cities consider their public reputation, supporting strong local news and prioritising active engagement suggests a willingness to be scrutinised and held accountable. An informed community is vital, as it helps local officials be more effective in their work. In addition, local news benefits cities more broadly by covering arts, culture, or local businesses, and providing reliable information during crises related to public health or safety, such as the Covid-19 pandemic or natural disasters. Ideally, local journalism also helps ensure that different communities and their lived experiences are represented, giving a voice to those less likely to be heard.
At the same time, a lack of local journalism is associated with less informed voters, lower voter turnout, and has even been linked to increased borrowing costs for local governments, as the lack of media scrutiny leads to reduced trust and higher perceived risks among investors.
Recognising these challenges, some cities have begun to take proactive steps to support local news media. Across Europe and the United States, supported is offered through various approaches, including direct financial aid, service contracts, and public policy measures. These efforts are diverse, but they all share a common goal: to sustain local journalism.
One form of support is direct funding to media outlets. Lisbon, for example, has revised its municipal statutes this year to allow city agencies to fund local journalism projects directly. This initiative aims to bolster the local news ecosystem by providing financial support to media outlets that serve the community.
Similarly, the Vienna Media Initiative, a funding programme launched by the City of Vienna in 2020, provides substantial funding to support quality journalism and innovation within the media landscape. With a budget of 16 million euros until 2025, the programme supports self-employed journalists and small media companies through two funding schemes, offering grants of up to 10,000 euros or 100,000 euros respectively. An international jury evaluates applications based on criteria such as journalistic quality, innovation, and sustainability. Funded teams receive additional support through workshops.
In the United States, direct funding takes various forms. For example, New York City recently issued an executive order requiring city agencies to allocate half of their advertising budgets to local press, Dunlop explains. Washington, DC has introduced the Local News Funding Act, which would dedicate 0.1 percent of the city council’s annual budget to supporting local news coverage. This funding would be distributed as coupons given to registered voters, allowing them to choose a local news outlet from which to receive free content, whether it’s a newspaper, podcast, blog, or newsletter.
Another method of support comes through service contracts. Some cities, such as Chicago and Seattle, provide financial support to local media through service contracts, Dunlop says. For instance, the City Bureau of Chicago, a nonprofit civic media organisation, was contracted for note-taking services, while in Seattle, if the city needs content production, they may submit a proposal to Converge Media, a local news organisation. These contracts offer a way to financially support independent media without raising suspicion of influencing the news coverage.
In addition to these financial strategies, public policy measures have also been introduced at the state level. States like New Mexico, New Jersey, and California, have implemented public policies such as journalism fellowships and tax credits for newspaper subscriptions, to bolster local reporting and address the decline in local news outlets. Wisconsin and Illinois are also considering similar legislation.
George Leech, Director of Outreach and Communications at the Prague Civil Society Centre, emphasises the importance of providing institutional funding for independent journalism. By offering flexible support, the Centre helps media outlets continue their vital work, even in exile or under authoritarian pressure across Central Europe and the former Soviet Union.
Why is it important for PCSC to support journalism? How did you come to the decision to include media in your programme?
Leech: We’re approaching our 10 year anniversary next year, and we’ve been supporting the media since 2016-2017. So really, as soon as we started, we kind of realised that the media had to be part of the strategy and can’t really be taken apart from civil society. It’s so important for amplifying the voice of civil society, exposing the failures of authoritarianism, promoting reform, accountability, it’s a key component. If you don’t have robust, strong, independent media, then all these groups doing all this amazing work, in a way, are losing a point of access to the population.
We also recognised the gap in donor funding, that a lot of media support was technical support, or it was very project-driven, whereas our approach since the very start has been to try and provide institutional support for media, funding to pay journalists’ salaries, pay for rent, and cover the costs of doing journalism. We don’t have a kind of editorial approach or thematic priority approach. We are not a donor that is interested in X, Y, Z and would like to see articles on those topics. We really want to fund the media to achieve what they want to do, reach their audiences, and be journalists. Our approach has been to decouple it from thematic priorities and really have it as a core media support programme.
It has also taken a lot of convincing at certain points within the donor sector, and convincing large institutional government donors that actually providing this institutional support is necessary and valid, because it also takes a lot of trust from people giving the money, right? It’s very easy to form a project where you say, at the end of this, we’re going to have had 30 articles on this topic, and we’ll have had five training sessions on these various topics. Whereas if you’re just giving institutional support, you’re saying that the media is going to continue to work, it might grow its audience. It’s very hard to package that into a very nice, clean project. But working with the big donors and convincing them of our approach has been part of our work and has been successful. We have grown our media support programme substantially over the years and really had a lot of buy-in from large donors, such as the European Union, on the necessity and validity of this kind of support.
In addition to providing grants for institutional funding, is anything else included in your support programme?
Leech: It’s a combination. Most of our support goes through grants, as we are a re-granting organisation. The Prague Centre exists to take large, predominantly government, donor money, and repackage that into smaller grants and try to remove a lot of the burden that comes with, say, being a USAID grantee, or a Foreign Office grantee, or a European Commission grantee. We’re like the middle man in making that money accessible.
But we do also have a full capacity building programme, and that ranges from many different kinds of support. In general, we don’t have media technical expertise in house. Rather, we have a wide network of trusted providers, and we talk with the media. When we’re in the process of making a grant, or we’re discussing their projects with them, then they self-identify that it would be really good to have training on security, or some kind of audience research. And we know people, we can put them in touch.
So we really try to empower the media we support to get the best support that’s tailored to their exact needs, rather than saying, here’s the Prague Centre’s media capacity building, this is our prescription. We listen to the needs and suggestions of our media partners and have a network of proven and trusted providers that we can recommend to circulate, and if someone is necessary and relevant, that’s perfect.
What kind of media are eligible for your support?
Leech: A huge range of media. From traditional newsroom media focused on Eastern Europe and Central Asia, to investigative media, various niche media, all the way down to various social media channels. We also include in our media support programme NGOs that have kind of advanced media arms. We also support them in similar ways, to do campaigning and communication. So our grantees range from traditional large newsroom-style media to people with a YouTube channel across the whole region where we work.
Which region do you work in?
Leech: We have a mandate to work in all the countries of the former Soviet Union, apart from the Baltic States. Two years ago, we started a media support programme for Central Europe. So Poland, Hungary, Bulgaria, Romania, and Slovenia were added onto that.
What is the most important lesson you have learned from the programme?
Leech: I will reiterate the necessity that we must provide institutional support. There’s not enough of it in the sector. There is a cost of being the kind of flexible donor that we are. We pride ourselves in making this funding as adaptable, as flexible, as useful as possible for the grantees that we work with. But that requires, of course, a lot of talking with them, adaptation of proposals, changing proposals mid-project, which really puts a lot of extra work on our grants team, and I really wouldn’t underestimate the work it takes to stay true to the commitment to be flexible, adaptive, and responsive.
For example, when the full-scale invasion happened in Ukraine, we were making grants immediately as part of our emergency response to civil society and the media. There was one media [outlet] to whom we gave a grant to relocate from Kyiv, as the Russian army was advancing. When it became clear that Kyiv wasn’t going to be overrun and actually they’d be able to remain in Kyiv, we were then able to basically change the grant and say, OK, hang on, you don’t need to relocate, but you still have all this money, let’s see what we can do, and use the money in the way that you need it most. That’s a sensible and obvious thing to do, but you still have to change the project and work out how to manage it, what the new objective is. This is constant change, especially when you’re working in an area as volatile as those we work in. This just requires constant communication, adaptation, and tailoring.
In addition to the war in Ukraine, what are the biggest challenges you have had to face?
Leech: I think the war has dominated this region since 2022. Pre-2022, we were working with some exiled media, but now that has increased substantially. There’s a lot of media now located in the EU that present opportunities, but also challenges […]. Also, as a donor, you have media in exile that are still targeting audiences inside the country where they’ve come from, facing attempts to block them. So from investing in technology to circumvent censorship, there are different kinds of needs for the media to be able to continue doing the work. There’s obviously also the increased costs of being located in the EU rather than in your country of origin.
We’re leading a project called Free Media Hub East, which is a consortium of media support organisations funded by the European Union. We provide the re-granting component, but there are also organisations like People in Need (Czechia), Warsaw Helsinki Committee (Poland), Media in Cooperation and Transition (Germany), Sustainability Foundation in Latvia, and Baltic Centre for Media Excellence, also in Latvia, and together we’ve created a body of established practitioners that are providing the full scope of support for media in exile. So from the Prague Centre there’s funding available; from other organisations, there’s visa support, relocation support, psychological support, registration support, language classes, people that will help navigate the bureaucracies of Berlin, Warsaw, Latvia, wherever it may be, help advocate the case for exile media. So the move to exile and the needs that have come with that have also required slightly different solutions that we’ve also had to adapt to as an organisation.
What was the biggest success story?
Leech: The fact that a lot of the media that we support are still running, still managing to engage their audiences, and in some cases, managing to increase their audiences, despite efforts to liquidate the space for freedom of expression, to shut down any kind of independent voices. I think the continuation and ability to still reach audiences is, if not a glamorous success story, a really important one.
But also the ability to respond so quickly. I gave that example of finding the media to relocate during the full-scale invasion. We’ve been able to mobilise a substantial amount of support for Ukrainian media, large, small, regional. Exactly with this institutional support logic that I was talking about before, which has been kind of outsized in its help for the sector, because there has been so much donor funding that’s gone to Ukraine, which is fantastic, but also so much of it is tied up in certain requirements, certain topics, certain training, you know, it comes with a lot of strings attached. The fact we’ve been able to mobilise millions in unrestricted institutional support is something that I’m really proud of.
Do you have any special advice for organisations that have not funded journalism yet, but are thinking about doing so?
Leech: First of all, it is great to do it, 100%. If you’re thinking about doing it, keep thinking along those directions, but also question yourself about why you want to do it, and what the results are that you want to achieve through your media support programme.
There are lots of different entry points to supporting media, or lots of different reasons to support media. Know yourself what you’re trying to achieve. If that is to shed more light on the area that you’re focused on, that’s great, but know that this is what you want to do it for. If you believe that independent media is vitally important, it’s underfunded, and needs more support, then do that, and really I’d encourage anyone to go down the core support and institutional funding route.
And partner up! There are a lot of established media support organisations in Europe that have been doing it for a long time. I don’t think people need to always think they need to go alone, or try to do everything themselves. Share, talk to people about their experiences, and identify your niche. There’s always power in the aggregate, right? So maybe, if you can join something that’s existing or amplify something that’s already going on, maybe that’s the way to go about it.
Also, if you’re getting involved in the geographies that we are involved in, then security risk is a really important thing to consider. Understand the operating context of the media, where you’ll be working. You know, we work in Central Europe, in Eastern Europe, in Central Asia, all of those carry very different risk profiles, very different processes, very different approaches to grant-making and supporting media. It’s not a one-size hat that fits all.