Axios CEO Jim VandeHei argues that while costs for top reporting talent will rise, specialized media will become more profitable. This is because AI will drastically reduce all other operational costs—like distribution, marketing, and back-end technology—freeing up capital for core talent.

In the social media era, long-form investigative journalism is a fundamentally unprofitable business. Legacy institutions like The Washington Post can only survive if a deep-pocketed benefactor views subsidizing its annual losses as a civic duty, similar to funding any other non-profit.

Successful journalists combine platforms. They use legacy media for brand credibility, editing, and infrastructure, while direct-to-consumer platforms like Substack allow for faster publishing and capturing a much larger share (70-90%) of the economic value they create.

Roka News chose profitability over further VC funding, recognizing a fundamental misalignment. Even successful news media exits, like Morning Brew's $75M sale, are considered small outcomes for VCs. This pressure for unicorn-scale returns can corrupt a news organization's mission and independence.

Contrary to the belief that costly journalism is subsidized by lifestyle products, the NYT CEO asserts that hardcore news is the most economically value-creating part of the business because it generates a massive audience and brand authority.

Revenue from engaging lifestyle products like games and recipes directly enables the NYT to invest in high-cost, low-click investigative journalism, such as covering the war in Sudan, fulfilling its public service mission without direct commercial pressure.

The media landscape has fundamentally changed. Value is no longer concentrated in institutional brands like the New York Times. Instead, it has shifted to individual, 'non-fungible' writers who can now build their own brands and businesses on platforms like Substack.

Despite declining viewership, legacy media institutions like The New York Times and Washington Post remain critical because they produce the raw content and shape the narratives that fuel the entire digital ecosystem. They provide the 'coal' that other platforms burn for engagement, giving them unrecognized leverage.

The NYT CEO sees the widespread belief in the need for shared facts, even among political opponents, as a powerful market driver. This demand for independent reporting creates a durable business model, despite low overall trust in institutions.