How Luminate is building a global public interest media fund to protect newsrooms
“As democratic media spaces empty, undemocratic media actors occupy them… Funding media has a positive impact on its freedom and reduces misinformation,” according to Nishant Lalwani
Takeaways
London-based philanthropic organization Luminate Group is creating a billion-dollar fund with international donors to support and rebuild journalism around the world.
The fund will be deployed in countries without heavy censorship since governments react badly to foreign philanthropists spending money and small funding cannot change a censorship landscape quickly.
Starting a media startup is not the most expensive process. Scaling it up is.
Media cannot depend merely on investors or philanthropists. These funds can be band-aid solutions allowing the platforms to experiment and find a business model that ensures independence.
Nishant sees green shoots in the form of subscriber-driven media like The Correspondent. Producing content for readers rather than advertisers improves product quality.
Context
Ahead of the coronavirus pandemic, the global news media industry was already facing $23 billion in losses. Post-Covid, losses are estimated to double at $40 billion. The loss of revenue is hurting media resilience and survival, and has consequences for democracy, says Luminate Group’s Managing Director Nishant Lalwani.
Nishant says there’s a direct link between investing/grants affecting media freedom and plurality. He also believes that trusted relationships between consumers and journalism platforms can be built on the basis of credible reporting.
The need
Independent journalism platforms are facing media extinction events in many low-income countries. This has consequences on democracy and development.
Growing dis/misinformation endangers sustainable development goals, electoral politics and intensifies corruption.
As independent media disappear, undemocratic actors take their place.
The goal for the fund is to focus on ethical, non-partisan and credible media that works for the interests of everyone and not just those who have power or money to influence the media.
Problems to solve
Improving legitimacy of journalism platforms in key 20 countries across Asia, Africa, Latin America and Europe
Driving knowledge transfer of what works as business models change
Reduce transaction costs for media platforms
Maximizing impact of journalistic work
Funding targets
Long-term target of $1 billion annually. Minimum target of $100 million
Up-front major endowments from tech and telcos generating annual income
Additional funds from foundations, philanthropists and other private sector sources, especially those who currently support independent media. The fund will be operational mid-2021