Media companies are increasingly exploring innovative revenue models as a strategic element of ongoing efforts to reduce their reliance on advertising and subscriptions. This is significant because, although the global advertising market continues to grow, the proportion of these revenues coming to publishers has long been in decline. Similarly, despite the fact that the media industry has seen numerous subscription success stories, research suggests that the opportunity may be leveling off. 

Given these financial realities, revenue diversification is essential. Fortunately, there are many ideas out there to learn from. Here are five alternative – and well-established – revenue sources that are poised to become more prominent, and important, for publishers in the year ahead. 

1.  Artificial Intelligence (AI) licensing opportunities

As Generative AI continues to gain traction, many media companies are signing licensing agreements with the companies behind these technologies. 

There are pros and cons to this, with several publishers currently litigating against their content being used by these platforms. However, for some media companies, AI licensing agreements offer an alluring mix of copyright protection and monetization opportunities.

Examples that we have seen in the past year include: 

• Hearst’s partnership with ChatGPT which promises “appropriate citations and direct links.” 

• UK-based publishers including the Financial Times, Guardian Media Group and Sky News, signing a strategic partnership ProRata.ai. DMG Media, home of The Daily Mail, has also taken an equity stake in the company.

• Reuters, Axel Springer and the USA TODAY Network are featured content partners for a voice delivered summary of the news and weather that is built into Microsoft’s Co-Pilot product.

• Reuters also agreed a multi-year deal with Meta, supplying content for queries asked about the news in Meta’s AI chatbot. 

However, not all publishers are ceding the AI opportunity to tech companies, which could offer licensing revenue closer to home. One major publisher, Dow Jones, recently signed up nearly 4,000 news publishers for Factiva Smart Summary, a new Generative AI feature in its business intelligence platform. These licensing agreements span more than 160 countries and 29 different languages. Partners include The Associated Press, Swiss News Agency AWP Finanznachrichten AG, News Corp Australia, and The Washington Post. 

As Generative AI continues to expand, expect more of these partnerships and products in 2025. 

2. Live events and experiences 

Pre-pandemic, live events offered a major source of revenue optimism for publishers. Post-COVID, this has morphed into a mix of in-person, online, and hybrid models. To draw sponsors and sell tickets, events work best when aligned with your brand and the content you are known for, an approach that a growing number of media outlets are leaning into.

Forbes has capitalized on its 30 Under 30 list by wrapping a live multi-day event around it. Their 2025 program includes a private concert, networking opportunities, industry-focused excursions, as well as sessions with speakers. 

Condé Nast leveraged one of its best known brands to launch Vogue World in 2022, which are going strong. Hosted in global fashion capitals like New York and Paris, these annual one-day events are also live streamed. Hollywood is the location for their 2025 event. The company is also hosting an immersive exhibition in London, narrated by Cate Blanchett, which explores the history of the modern runway show.  

The Innovation Consulting Group notes that some publishers derive up to 20% of their income from events. Events, they observe, can “help hike circulation, attract advertisers who might not advertise in the magazine’s media,” as well as “give magazines “face time” with their subscribers and potential subscribers.” 

Given these strategic and financial benefits, we can expect more publishers to explore the burgeoning events market in the year ahead.

3. Podcasting revenue innovation

Podcasts have been a bright spot for many publishers for a while, with many doubling down on the medium despite wider financial challenges. For the biggest shows and brands this can be a particularly profitable space. 

Continued optimism for this medium means that some publishers are looking to expand their podcasting portfolio and innovate on the ways they monetize. 

The New York Times, which recently paywalled their podcasting archive, launched a podcast for Wirecutter, its product recommendation vertical. The move, eight years after they acquired Wirecutter, demonstrates how they are still seeking to expand and monetize this brand, and that the see audio as a key means to do achieve that goal. This follows The Economist’s premium podcast push, in which it leverages podcasts as a critical component of its successful subscription-based revenue model. 

Meanwhile, the merging of events and podcasts is growing in prominence and revenue potential. Fans can connect with hosts and each other, deepening loyalty to brands and shows. All the while, podcasts offer media companies multiple monetization opportunities that go beyond advertising and subscriptions. 

This summer, The Ringer hosted a residency for six of their podcasts at the El Rey Theatre in Los Angeles. “As an audience engagement tool it takes fandom to a different level,” says Geoff Chow, Head of Podcast Studios & Managing Director for The Ringer.

The Wall Street Journal’s recent dive into “The Rest Is History” podcast revealed that its hosts were netting nearly $100,000 a month, through a combination of their podcast, monetizing clips on YouTube and live events. “History professors struggle to get students excited about the past,” the Journal wrote. “Yet at a recent live show in London, Holland and Sandbrook drew a raucous Gen Z audience with a rock-concert vibe.” 

Wondery  is similarly looking to create live tours for some of the most popular podcasts. With more than 200 active shows, over a quarter of which hit No. 1 on Apple Podcasts, they have a potentially large paying audience to tap into. Participants in their membership plan, Wondery+, get early access to these live events, a membership benefit deployed by Slate and others. 

As podcasts continue to evolve, these types of live events and tie-ins with wider memberships programs, will only become increasingly intertwined.

4. E-commerce and affiliate partnerships

With e-commerce now worth nearly $1.2 trillion in the USA alone this year, this is too big a market for media companies to ignore. In response, media entities are progressively integrating e-commerce into their platforms, selling merchandise and other products directly to consumers. 

The Daily Wire generated over $22 million from commerce in 2023. nearly 10% of its revenues. Axios reports that much of this derived from its Jeremy’s Razors products, which produced $19 million in sales. Their merchandise store made up most of The Daily Wire’s remaining commerce income.

Recommendation sites are another area of e-commerce that media players continue to explore. The Associated Press partnered with Taboola in March to launch AP Buyline, offering how-to guides and reviews in areas such as fashion, beauty and wellness, tech, pets and Black Friday deals. 

This launch came against a backdrop whereby some of AP’s core business is being squeezed. Local publishers Gannett and McClatchy ended their long-standing partnerships with AP,  due to a desire to cut costs and invest elsewhere. As the AP themselves note, fees from U.S. newspapers were at one point responsible for “virtually all of its revenue.” However,  diversification means “U.S. newspaper fees now constitute just over 10% of its annual income.”

Across the pond, The Independent, a UK newspaper, reported a 26% increase in revenue from e-commerce in the past year. Although review sections have potentially been impacted by recent changes to Google’s site reputation abuse policies, some publishers are growing their e-commerce revenues, despite inflationary pressures and a cost-of-living crisis. 

Such initiatives highlight how publishers can leverage their editorial authority to benefit from reader’s purchasing decisions. Effectively creating affiliate partnerships can assist audiences and a publishers’ bottom line.

5. The games people play

The last piece of our revenue puzzle for 2025 sees publishers continuing to invest in games. 

As twipe explains, games “engage readers differently than traditional news content.” “They provide a mental break, foster daily engagement, and satisfy psychological cravings… forming daily habits crucial for subscriber retention.” 

Subsequently, games can be a valuable plank in helping to drive loyalty. Jonathan Knight, head of games at The New York Times, says that “when we see subscribers engage with both games and news in any given week, we’re seeing some of the best long-term subscriber retention from that pattern.” Subsequently, the Gray Lady has expanded their portfolio of games. They’ve also made games more prominent on their app, encouraging audiences to “come for the games, stay for the news.” 

In that vein, French outlet Ouest-France publishes a game called “mystery photo of the day”. Readers must match the photo with the article in which it featured.  “It’s a way to get them to discover our articles,” says Emmanuel Chevalier, head of Ouest-France’s  digital acquisition department. Meanwhile, Hearst’s acquisition last year of Puzzmo is another example of a publisher flexing their financial muscles to expand their games offering. 

Games can offer an escape from an often bleak news agenda, providing a means for audiences to come back every day, and thereby create a deeper connection between readers and publishers. Because of this, games are poised to play an even more critical role in engagement in revenue strategies in 2025 and beyond.

Looking ahead at the importance of revenue diversification

From AI licensing to live events, e-commerce, podcasts, and games, publishers are actively diversifying their income strategies in response to shifts in markets and consumer needs. While advertising and subscriptions remain critical components of the media revenue landscape, media companies continue to experiment and innovate to leverage their brand strengths to create other revenue streams. 

Through these efforts, publishers are finding new ways to connect with audiences and drive revenues. In doing this, they are also trying to lay long-term foundations, with several of these strands focused on fostering loyalty, deepening engagement, and connecting with audiences in innovative ways.

As we head into 2025, the challenge will be scaling these initiatives in an increasingly competitive landscape. When many publisher peers are doing similar things, distinctiveness, brand value and relationships, as well as pricing points, will be paramount. 

At the same time, given the need to reduce reliance on traditional revenue models, diversification remains more important than ever. Doing this successfully requires flexibility, creativity, and a willingness to experiment. 

If this is executed well, like some of the examples that we have seen here, then innovative strategies to create income offer more than just means for survival. After all, revenue diversification offers perhaps the only pathway to long-term growth and resilience in an ever-evolving media ecosystem. As such, the need to explore some of the types of ideas outlined in this article, and to actively move away from a reliance on advertising and subscriptions, is non-negotiable.