LATAM digital media start-ups are growing
45% have suffered violence or threats by their coverage and 20% admit to self-censorship as a result.
SembraMedia, a non-profit company that supports entrepreneurial journalism, in partnership with Omidyar Network, today released Punto de inflexión, the largest study to date on growth, impact and threats for independent digital media in Latin America.
The research report, which studied 100 media outlets in Argentina, Brazil, Colombia and Mexico, reveals that these organizations are increasingly influential in covering issues related to public governance and the fight against corruption, but they face pressures and increasingly serious threats that in some cases lead them to self-censor or close their operations.
Many of the media — which are operated by independent journalists seeking to cover the critical issues facing the various countries in the region — are reaching a larger audience and are developing profitable and sustainable impact businesses. More than 70% of the companies included in this study started operations with less than $10,000, and 12% are already generating at least half a million dollars a year in revenues. The international press has already collected stories of 66% of these media and 55% have won awards for journalism or humanitarian awards that are among the major awards given in the sector.
However, in many cases, these media and journalists are paying a high price for their independence and success. Economic and physical attacks are damaging the ability of these platforms to operate and are pushing them toward self-censorship. 45% of the organizations surveyed have been subjected to violent attacks or threats as a result of their reports, while 20% have changed the subjects of their reports due to this situation.
“After years of working with enterprising journalists in Latin America, I know their work has become increasingly important, but until we complete this study I did not realize how much impact they are having or how vulnerable they are yet,” says Janine Warner , Co-founder of SembraMedia and Fellow of ICFJ Knight. “Digital media entrepreneurs are profoundly transforming the way journalism is done in Latin America. They are generators of change by promoting better laws, defending human rights, exposing corruption and combating abuse of power. They are inspired by a fervent desire to produce independent news in countries where there is a high degree of political polarization, and some of them are paying a price for it.”
The report identifies three key requirements to enable the growth of these organizations and increase their impact:
1. Protection: These organizations need to be protected from physical and economic attacks so that they can continue to grow and have the freedom they need to comprehensively cover sensitive issues. Funders and investors could provide more financial and legal support to protect and respond to attacks.
2. Professionalism: Sustainability is a critical element. Having stronger business models will not only allow these organizations to expand their work, but will help them maintain their independence and shield themselves from economic sanctions such as the loss of advertising, a tactic commonly employed when governments and other entities do not favor their coverage.
3. Partnerships: These organizations can have even further reach and impact. There is an opportunity to explore alliances that allow syndication and promotion of broader content in order to increase the international knowledge of the issues that these platforms are reporting, and to develop other ways to generate income.
“The breadth, depth and scale of the challenges for democracy, transparency, and citizen participation that are at stake throughout the region are extremely worrying. That makes the role of independent media in Latin America more important than ever,” said Felipe Estefan, Chief Investment Officer at Omidyar Network. “Funders, investors and civil society need to support these organizations to ensure they continue to have the ability to impact, develop sustainable organizations and act as role models for others in Latin America and around the world.”
The full report can be downloaded in Spanish, Portuguese and English at data.sembramedia.org.
The Tipping Point study was conducted through interviews with the founders or directors of 100 digital news startups — which ranged from small volunteer-operated projects that serve niche audiences to major news agencies reaching tens of millions of people Through Internet news portals, podcasts and social networks. These 100 organizations were divided to include 25 from Argentina, 25 from Brazil, 25 from Colombia, and 25 from Mexico.
The relevant information obtained from the study includes:
● The number of independent digital media portals has experienced steady growth.
○ At least 441 organizations have been founded since 2006 — an average of 44 per year.
● More than half of the news agencies interviewed have more than four years of operation, and 12% have more than a decade of existence.
○ Established agencies include Animal Politico in Mexico, Checked in Argentina and La Silla Vacía in Colombia.
○ The most recent platforms include Economía Femini(s)ta in Argentina, Meio in Brazil and So-and-so in Mexico.
● More than 70% of the companies included in this study started operations with less than $10,000, and 12% generate up to half a million dollars a year in revenue.
● Almost 40% of the founders of the digital platforms interviewed are women, including:
○ Economía Femini(s)ta, Argentina
○ Escritura Crónica, Argentina
○ Genero e Número, Brazil
○ Agência Pública, Brazil
○ La Silla Vacía, Colombia
○ Mprende, Colombia
○ Aristegui Noticias, Mexico
○ Lado B, Mexico
● In the case of 72%, their reports have been syndicated by the national press, and in the case of 66% by the international press.
○ The Animal Politico report on Veracruz ghost companies (The Phony Businesses of Veracruz) was collected by the Associated Press and by The Guardian and resulted in an investigation by the Mexican government, which revealed millions of dollars and hundreds of accounts Banks linked to former governor Javier Duarte, who was later arrested.
● 55% have won journalism awards or humanitarian awards for their work.
○ The Argentine data verification portal Checked received the Gabo Innovation Award in 2015 and was a finalist in 2013.
○ The La Silla Project Rosa report was honored by the German Ministry of Cooperation and Development, while its series of stories about the voting practices of a politician won the National Journalism Award.
○ Connectas (Colombia) and Aristegui Noticias (Mexico) were part of the team of the International Consortium of Investigative Journalists who received the Pulitzer Prize for their research on Panama Papers.
● More than 45% of organizations surveyed reported being threatened with violence because of their reporting.
○ Congresso em Foco in Brazil faced 50 lawsuits over its report on illegal “super salaries” of government officials.
○ 50% of organizations have suffered cyber attacks because of their news coverage, including Involverde, which once replaced all images with pornography.
○ 25% of organizations surveyed reported losing advertising support because of the issues being reported.
● More than 20% of the organizations interviewed acknowledged that they were avoiding coverage of certain issues as a result of intimidation and threats.
○ 24% reported being self-censored in Colombia.
○ 12% in Brazil.
○ 32% in Mexico.
○ 16% in Argentina.
Source: Radio Macondo
Billy D. Aldea-Martinez, heads up Latin America and Brazil for Piano, the world’s leader SaaS Platform that allows media companies to launch Direct Monetization models, such as metering and paywall solutions for digital content and user data analysis.
Billy is also a Digital Monetization Strategy consultant and exclusively works with Latin America’s largest media groups, such as Editora Abril (Brazil), Grupo Globo (Brazil) as well as Grupo Copesa (Chile).
He also serves as Board Advisor & Angel Investor for adtech & martech startups such as Start-up Chile, Start-up Peru, Parallel18 (PR) Admetricks and Starter Daily.
For more Latin American Technology articles, click here.
Follow Billy D. Aldea-Martinez on Twitter @aldeamartinez
