Making a money through news is not an easy task. The revenue model for a news based business has always been shaky due to the lack of viable subscription-based model. Because of that they have to depend on advertisements. InShorts, a news-based app, is grappling with the same issue.
They are trying to monetize the content through sponsored content from various industry sectors such as e-commerce portals, food delivery platforms and online travel portals.
InShorts, a news aggregator Indian startup, has raised 24 million dollar during three venture-capital round. It has also forged a partnership with e-commerce portal Flipkart.
Image: InShorts Team
“We will be looking at a few tie-ups to close this month. The quality content will be based on data and insights collected across and users can choose to opt out of it. We have already started a dry run of the model,” said Azhar Iqubal, chief executive officer of InShorts.
However, the challenge will be really huge for InShorts management to make it a profitable business considering the fact that the sector has hardly any success story in the world. Though company has so far tried to downplay the question of monetization, but now they have started thinking seriously about it.
Company has recently launched a “Toss” feature, which allows users share interesting stories within app. It does not try to push the ‘viral’ content on them.
News aggregator platform such as Flipboard earns revenue through sale of full-page advertisements. It has been able o charge premium rates because of its magazine like online format.
Sponsored contents are also available in wired.com, Vanity Fair and ESPN. It assumes importance because digital ads has been much lower than that of the print.
The challenge for a mobile news app is even bigger because they can’t bring banner ads as effectively as on the desktop. It annoys users and they can uninstall it. They have to depend hugely upon native advertisements.
Nikesh Arora, SoftBank CEO, has also expressed opinion, “News is a very tough business to make profit and the profitability is always in doubt. So he is not a great fan of such news based apposite will be interesting to watch how InShorts proves the legendary VC wrong.