【2014 Archives】

It's not exactly the best moment for news014 Archives what with a president intent on attacking journalists and the public's abysmal trust in the media. So it's a little surprising to hear how optimistic Jessica Lessin is about the future.

But there are better days ahead for an industry that has been in a multi-decade, internet-enabled tailspin, she believes.

"The reason I'm optimistic is because we have a model that works for quality information in 2017, and it's a subscription business," Lessin said.

When Lessin started The Informationin 2013, the notion of a $400-a-year subscription-based publication was perplexing. Free journalism abounded and the tech scene that her outlet covered was already the subject of intense reporting. Who would pay for this kind of thing?

That was the general reaction when Lessin, a former Wall Street Journalreporter, launched her company. "CYBER WEDNESDAY DEAL: Pay me $199 per year and I will tell you what they're writing about on @theinformation," wrote Business Insider's Nicholas Carlson back in 2013.

Four years in, Lessin is vindicated. The Informationhas more than 10,000 subscribers (though Lessin declined to provide an updated number) and is expanding. The publication is set to double its editorial staff beyond its current 15 and reach into new industries, including energy and banking, where emerging tech is starting to create serious disruption.

Hiring in media is also not the norm. Journalists are still being laid off at a regular clip — just this week Complex and ABC cut staff, and there are rumors Time Inc. is next.

"We think it's a little bit of a contrarian bet right now in this news climate, but we like to zig while others zag," Lessin said.

As such, the company is rolling out an accelerator program for subscription-based media startups and announcing its first participants — including a local journalism operation in Detroit, a Chinese tech and business strategy website, and an Italian mobile news startup — on Friday. They'll receive $25,000 and a spot in the company's accelerator bootcamp, which provides mentorship and help getting subscribers. In return, The Information will get a cut of the revenue.

Lessin's bet on subscriptions has proved prescient. Most major news operations have returned to the once-universal model with success. The New York Timesand Washington Posthave both enjoyed a spike in paying customers. Even Facebook is getting in on the act.

Part of The Information's success is that in a few short years the publication's work has rivaled those bigger, older institutions. Among its most impactful work has been reporting on sexual harassment at tech companies. The Informationfirst published sexual harassment allegations against Amazon Studios head Roy Price, which eventually led to his resignation. It also broke the story about prominent venture capitalist Justin Caldbeck's sexual advances on female founders that led to the disintegration of his firm, Binary Capital.

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There's still some question about whether subscriptions will work beyond major news brands and affluent industries where subscribers are willing to put up big bucks for scoops. Beyond The Information, there aren't many news startups that have been able to garner enough people to pay.

Lessin believes there will be, hence the accelerator.

"I think there is centuries of evidence that readers will pay for information they value across prices and across subject matter," Lessin said. "Now in digital I think the key part of being a subscription business is matching price to value. In the business world, that price and product can get very expensive, but it doesn't have to. The principles of matching your product to price works from five dollars a month to 500 dollars a month."

Value, as she sees it, isn't just in the stories her journalist write, but also in everything else her company is offering to its subscribers. That's meant new offerings like daily email briefings and conference calls to chat with subscribers. On Friday, the website is also launching a video section including interviews with high-level tech personas.

All that additional value is met by a premium price. The company introduced a $10,000 per year tier for "The Information for Investors."

That's a big ask, but Lessin believes they can make it worthwhile.

"We have to earn their continued subscription over time, but I think were doing that," she said. "And the market right now of people willing to pay for news and give us a try is bigger than ever."