Better Slate than never...

Microsoft-backed Internet magazine Slate recorded a profit in the first quarter of 2003 for the first time in its seven-year history - a positive sign for the future of web publishing.

Web-based magazines have a reputation for unprofitability - as demonstrated by salon.com, which is still struggling to survive despite an investment of $2,100,000 since July 2002. Slate's announcement is significant because it demonstrates a successful business model for online publishing.

The announcement came within days of a speech by computing mogul Bill Gates at the annual Newspaper Association of America convention in New York, where he predicted that print publishers ignore the web at their peril. "We see the online newspaper as one where it takes all the strengths of current newspapers - and then adds in new capabilities."

Mr Gates is co-founder of software giant Microsoft which launched its new Office System 2003 package this summer. The software will make it easier for users to read online and will include special multimedia tools.

Slate magazine provides extensive content including news, travel, sports and the arts, as well as providing regular email alerts and The Fray - Slate's well-established discussion forum. Readership is estimated at around 6 million individual users per month.

In the wake of 2001's terrorist attacks in the US, Slate's readership quadrupled to more than 10 million. Slate has won a host of awards in its seven-year history, including the 2001 Online Journalism Awards for 'General Excellence' and 'Best Online Commentary'.

Slate's success is due largely to the patronage of the Microsoft empire, which initially invested $20 million into the project as well as providing the support of the vast MSN network as a platform for the publication.

Slate supports 30 staff and has annual revenues in the region of $7 million. Income is derived from a combination of banner adverts, sponsorship and reader subscriptions. Unlike most other successful news-based sites, it is significant that Slate has achieved acclaim and liquidity without being a partner to a well-established print publication with a dedicated readership.

Michael Kinsley, founder of Slate and former host of US TV news staple Crossfire, believes the only long-term guarantee of editorial freedom is to be financially self-supporting. "If you are perennially losing money, the only reason someone is going to own you is to be able to get their point of view out there," Mr Kinsley said.

Sources:
http://www.nytimes.com/2003/04/28/business/media/28SLAT.html?fta=y
http://www.brandrepublic.com/mediabulletin/news_story.cfm?articleID=178486&Origin=MB30042003

See also:
http://www.journalism.co.uk/news/story612.html

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