How to build your own media company - without VCs or billionaires
Channels with Peter Kafka
Deep Dive
How much did Jason Koebler and his colleagues invest to start 404 Media?
They each invested $1,000, totaling $4,000.
How many paid subscribers does 404 Media have as of the podcast recording?
They have 7,120 paid subscribers.
What is the annual revenue from the super fan tier at 404 Media?
The super fan tier costs $1,000 per year, and they have 40 subscribers in this tier.
What is the primary business model of 404 Media?
The primary business model is subscription-based, with additional revenue from ads for free subscribers.
How much does 404 Media spend monthly on overhead costs?
They spend approximately $10,000 per month on overhead costs, including litigation insurance and web hosting.
What was the initial plan for 404 Media in terms of sustainability?
The initial plan was to operate for four months, from August to January, regardless of revenue, with the founders prepared to pay themselves nothing if necessary.
What was the initial subscriber count for 404 Media after launch?
They gained around 600 subscribers in the first few days after launching.
What is the ownership structure of 404 Media?
The ownership is egalitarian, with all four founders being equal 25% owners and paying themselves the same salaries.
How does 404 Media describe its journalism?
They describe their journalism as ground-up reporting from the internet, focusing on communities and how technology impacts humans.
What is the Shrimp Jesus story about?
The Shrimp Jesus story is about a bizarre AI-generated image of Jesus with shrimp arms that went viral on Facebook, revealing a scam industry of AI spam on social media platforms.
Why did Jason Koebler shift focus from Mastodon to Blue Sky?
He shifted focus to Blue Sky because it has a larger user base and offers a more decentralized platform without being too technically complex, unlike Mastodon.
What does Jason Koebler argue in his essay 'The Billionaire is the Threat, Not the Solution'?
He argues that relying on billionaires to fund media is not sustainable and that media should be independent and not reliant on wealthy individuals.
What kind of journalism does 404 Media avoid due to its current model?
They avoid long-term investigative projects that require significant time and resources, focusing instead on breaking stories and adversarial reporting.
- 404 Media launched in August 2023 with $4000.
- They currently have 7,120 paid subscribers and 77,000 newsletter subscribers.
- Their revenue model includes subscriptions and ads (only on free accounts).
- They prioritize journalism over business planning and have seen organic growth through word-of-mouth and high-quality reporting.
Shownotes Transcript