Fake news and cries of “lying press,” dwindling advertising revenues and digital transformation: the media industry is in upheaval. Media Lab Bayern supports startups developing new solutions for the media industry. We spoke with two startups at the Munich Media Accelerator.
The founders of TheBuzzard.org, Felix Friedrich and Dario Nassal, almost became classic journalists. They studied politics and also worked for radio and daily newspapers. However, the path to journalism was not enough for them, Dario Nassal:
"We're interested in different, authentic perspectives on politics and wanted to know what people outside of the major media outlets are writing. I still think it's extremely important to perceive these different perspectives on world events: What do bloggers, activists, academics—from all corners of the political spectrum—say? This reflects reality better than reading only the perspective of a single journalist, as is the case in a traditional daily newspaper."
The decision against a traditional journalism career came from a certain idealism, says Nassal:
“With a single story, I change less than if I build an entire platform.”
Together with their co-founder, software developer Alexander Diete, Friedrich and Nassal developed a platform that collects diverse opinions, views, and perspectives on a topic. The goal of TheBuzzard is to show media consumers different perspectives, even those that differ from their own. Because news consumers have access to so much information online, personalization of content has become prevalent in many cases, Nassal explains:
"Increasingly, we only see what we or our friends like. Snapchat and WhatsApp are particularly closed, of course, but newspapers are also becoming increasingly personalized."
TheBuzzard aims to expand public discourse, bring more perspectives into play, and burst filter bubbles. The founders didn't initially envision a company that generates revenue and pursues a strategy. For media startups, TheBuzzard is a fairly typical case: the solution is created first, then the company.
The startup will be based in Media Lab Bayern until the end of the year. The accelerator of the Bavarian State Office for New Media offers office space, financial support, and coaching.
From problem solving to startup
Also working until the end of the year Picter in the Media Lab. The company develops a platform for image data logistics. Co-founder Simon Karlstetter explains the principle:
"Working with image data has so far been very cumbersome and inefficient. A producer, such as a photographer, has high-resolution photos, but can't send them to anyone because the files are far too large."
Every recipient has different needs and requirements. The photographer therefore has to re-save the data in different sizes and resolutions to send it to the user. This not only results in incredible amounts of unnecessary file duplicates, but, according to Karlstetter:
"That also costs time and money. And that's exactly where Picter comes in. Thanks to Picter, sending image data becomes unnecessary. The photographer uploads their images to Picter once, and from there, they can assign any management permissions for the high-resolution data, which is securely stored online in the cloud. Picter delivers the right resolution to the recipient for each intended use."
The founders came up with the idea for the platform because they themselves needed a solution: The founders of Picter are also behind the non-profit photo magazine The Griffin, which celebrates its tenth anniversary this year. As editors, the founders have experienced firsthand how difficult it is to work with image data on a larger scale:
"We receive images from all over the world. We have to make sure we receive the files in the right size and within the right timeframe. We also have to ensure that we can use the images legally. We then built a system to address this issue efficiently. Only later did we realize that with our system, we had solved a problem that other organizations much larger than us also have."
“You learn most things by doing.”
An obvious weakness for young founders in the media industry lies in their entrepreneurial approach. The Media Lab Bayern therefore supports its fellowship participants with coaching and workshops. Dario Nassal of TheBuzzard explains:
"When we came to the Media Lab, we were still complete beginners. At university, we hadn't studied math or business administration. When we had the idea to build the platform, we didn't even think about whether or how we could make money from it. We owe a lot to the Media Lab."
Step by step, the founders learned how to create a business plan and a pitch deck and plan their finances.
“Here too, we have only just understood what it means lean to work. We've further developed the current platform based on user feedback. Once you're inside the entrepreneurial world, it's like a pair of glasses. I now understand how companies work much better."
Picter had it easier. His work on the magazine Der Greif laid the foundation for the startup, says Simon Karlstetter:
"Even though Der Greif isn't commercial, up to ten people were involved in the magazine's production. This requires internal structures. Much of this experience benefited us at Picter. We had already worked extensively with clients before, and negotiations and pricing were part of our daily business. The network and reputation we built with Der Greif is also a huge advantage for Picter. We've been active in the photography scene for ten years and have been able to establish very good international contacts. However, the topic of investors, for example, was new to us."
Picter also benefited from the workshops and exchanges in the Media Lab:
"It also helped quite a bit to move outside our bubble, for example, in developing sales strategies. But you learn most by doing."
Karlstetter says that the protected space the Media Lab offers to try things out was important for Picter. But once they leave the lab environment, the startups have to make money.
Multiple sources of income should secure financing
Despite all the crises in the media industry, it's still possible to make money with innovative solutions. Monetizing its own service has never been a problem for Picter. The company's strong network in the international photography community has certainly helped it gain momentum. From the very beginning, organizations have been acquired as paying customers. The founders are currently exploring additional revenue streams.
TheBuzzard still relies on a mix of different revenue sources: The Media Lab provided seed funding as part of the fellowship. The Vocer Innovation Medialab, a scholarship program for innovations in the media sector, also supports the startup. Funding of 50,000 euros through the Google Digital News Initiative TheBuzzard is further developing its algorithm, which evaluates and assesses journalistic texts. The young company is also focusing on various revenue streams: A professional edition of the debate mirror is expected to generate monthly revenue. In addition, according to Dario Nassal, they are in discussions with Bundestag offices, political foundations, and media outlets that are requesting a systematic digital press review on various topics.
