3.2. Revenue model
The Guardian Newspaper is part of the Guardian Media Group, owned by the Scott
Trust, which publishes 52 local and national newspapers and 10 magazines, runs a
digital division and also has interests in radio and television. In 2001, GMG made a
net profit of 67.3 million Sterling (112 million Euros). The newspaper has the UK s
third largest circulation in the broadsheet market with 410,000. The Website has
quickly established itself with more than 4 million users a month, 100% more than
in January of 2001. In October, the month following the terrorist attacks in the
United States, the Website had 52 million page views and was visited by 5 million
people, while only one million people buy The Guardian newspaper per month.
Despite this big audience, Guardian Unlimited lost 10 million pounds (16.6 million
Euros) last year. But as they are part of a trust which protects the paper and also
the Web, closing or reducing it is not in their plans.
Since the Scott Trust owns Guardian and the Guardian Unlimited they do not have
to show profits. "The philosophy is that, because it is trust based company and we
have no shareholders, we are not vulnerable to takeovers. On the other hand, even
trust funded media have to be commercially viable and at the same time they have
to compete with other media for the audience s attention," said Emily Bell, the editor
of GU. Bell used to be a media business journalist and made use of her background
to create a complete "business to business" section for Guardian Unlimited.
More exclusive content is being developed and for the next year they are planning
to charge for access.
For the moment GU does not generate any subscription revenue. Instead most of
our income comes from classified advertising, and job advertising and sponsoring
(For more information on the revenue streams see at Annex 1)
3.3. Content production processes
One can find most daily and weekly sections of the Guardian Newspaper on the
Guardian Unlimited website. Few articles from the newspaper are omitted from the
site, usually for copyright reasons. But Emily Bell says that the main aim of the GU
is to extend the work of the Guardian Newspaper to an international audience.
On the other hand, they called it Guardian Unlimited because it was not meant to
be just the paper on line. The idea was that a newspaper could produce a website
which was much more than in print. A service that will have more immediacy, by
adding a breaking news service, that will be more interactive by adding talk events,
invite journalists/columnists, politicians, arts people, administrators etc, to discuss
issues on line, in order to build a community around the Guardian.
As it is mentioned in the Mudia Study "European Multimedia Landscape" the GU
website and the newspaper are produced by two different staffs, which don t share
the same physical space. However, many other issues in The Guardian s
management though have an integration model. "We can solve the distance
problems by trying to integrate the Web as much as possible to our editorial
discussions", says Paul Johnson, Deputy Editor, in the above mentioned study.
"Although we are located in two different buildings, the essential thing is to have
only one direction coming from the top", says Emily Bell, Guardian Unlimited s
Editor in Chief. "In many newspapers, the editors are newspapermen and see
Internet as a threat instead of as an opportunity. And those are the papers whose
Websites are not good".