It’s a familiar tale; new technologies take root, and existing trades must adapt or die.  

News media transformed several times over the centuries to keep up with newfangled inventions, from the printing press to the internet. 

But the tech giants who enjoyed meteoric growth over recent years have left less room for the news industry, pushing outlets big and small to the brink – and too many over the edge. 

In 2015 even the future of the Guardian, one of the world’s most-read English-language publications, looked shaky. One Crikey piece even projected it would go bust within a decade.  

A key change in approach to funding ensured the publication still survives more than two centuries after first going to print. 

A novel approach 

The Guardian already had a rare structure being owned solely by the Scott Trust, tasked with safeguarding the publication’s editorial and financial independence since 1936. 

The Trust allows the Guardian to operate without commercial or political interference and reinvest profits in its free-to-access journalism – a rare privilege in today’s billionaire and shareholder-driven environment, Guardian Australia managing director Rebecca Costello tells PIJI. 

But in 2015, the publication was not immune to the effects of the rapid decline of print advertising and the hoarding of digital advertising growth benefits by companies like Google and Facebook. 

Accumulating millions in losses and seeing fellows fall, merge, or erect paywalls to survive, the Guardian turned to its large global readership for financial help.  

Costello describes the move as both practical and visionary. 

“What made our approach distinctive was that we asked readers to contribute voluntarily, even though we don’t have a paywall,” she says. 

“They didn’t have to, but many did. And crucially, they continue to do so.” 

Worldwide, the organisation quickly garnered hundreds of thousands of subscription and one-off donations every year. 

Locally, Guardian Australia has been turning a profit. As of June 2025, about 64 per cent of the outlet’s revenue is generated directly from readers.

Guardian Media Group’s most recently published financial results for 2023/24 show the organisation at large is still dealing with cash losses; it also recently offloaded the world’s oldest Sunday newspaper, the Observer, in an unpopular deal Costello says delivered a sustainable digital position for continued success in a challenging media environment. 

But the Guardian’s outlook now seems hopeful rather than dire, thanks largely to readers. 

Costello says although Google and Meta still account for about 70 per cent of ad spend in Australia, the Guardian can “somewhat” offset the structural imbalance through direct audience support.  

“We’ve built a powerful asset in the trusted relationship we have with our audience. 

“Their support has enabled us to grow and remain resilient in a digital ecosystem dominated by the tech giants.  

“Having a strong reader revenue also ensures we do not rely on the Scott Trust to provide short term surety. The Trust was established to ensure financial independence in perpetuity and our revenue diversification strategy works to serve that goal.”   

Investing in the future 

Even as the Guardian’s funding model proves resilient in the face of the immense disruption confronting news publishers globally, Costello tells PIJI the organisation is not complacent. Instead, it continues to work hard to grow revenue, manage costs, and identify new ways to build editorial strengths. 

To better understand and develop audiences, Guardian is investing in more digitisation and globalisation, along with the development of “mission-aligned and audience-centric” revenue streams. 

Part of that involves publishing journalism across a wide range of formats and platforms, from in-depth reporting and podcasts to newsletters, video, and increasingly-personalised Guardian apps.  

Some of these lifestyle and culture-focused platforms, such as podcasts and the Feast app, are intended to expand audience engagement and build more diverse supporter pathways beyond news. 

Another part of developing revenue streams means maintaining “a brand-safe environment that advertisers trust”. 

AI balancing-act 

Like many media organisations, the Guardian is trying to work alongside – rather than against – new technology seen by some as a threat to the news industry. 

In February, Guardian Media Group followed the likes of The Associated Press and News Corp in announcing a strategic partnership with OpenAI. Guardian reporting and archive journalism will be available as a news source within ChatGPT, and ChatGPT Enterprise will be rolled out by Guardian to develop new products, features, and tools. 

The news came months after Guardian Australia committed to consult with staff on the use of AI in the workplace in an enterprise agreement, and Costello emphasises the publication remains a “journalist-led organisation that places trust, transparency, and truth at the heart of our approach to AI.” 

She also acknowledges the advent of AI overviews and AI mode in search presents a serious challenge to media businesses by stymieing the user journey back to original sources of journalism. 

There is a solid basis for concern. Prominent publishers like the New York Times, Mail Online and Business Insider have all reportedly seen significant drops in traffic to their respective websites this year. But they have little power to fight back; for example, publishers cannot withdraw their content from Google’s AI Overviews without disappearing from Google search results altogether. 

“If readers are gathering their news and information from unattributed summaries they will miss the depth of analysis, investigation and context that our journalists and editors provide,” Costello says. 

“What’s more, our journalism is at risk of being synthesised often without remuneration – this presents a deficit for audiences and news businesses alike.” 

Free independent journalism is a public good

Costello says preserving the Guardian’s independence and accessibility is important because when access to credible information is kept behind paywalls, it risks deepening inequality and limiting informed participation in democracy. 

She describes the Guardian’s approach as offering a necessary alternative, built on the belief that independent journalism is a public good, not a luxury. 

“In today’s fragmented media landscape, where disinformation is widespread and news fatigue are pushing people to disengage, it’s more important than ever that trusted, high-quality journalism remains freely available to everyone,” Costello says. 

“Our role is not only to provide accurate, high-quality journalism, but to reconnect people with the humanity behind the headlines, through storytelling that informs, engages, and also offers hope.” 

As for how the government can support a sustainable journalism ecosystem, Costello points to using regulatory and fiscal tools, including the News Media Bargaining Code and the upcoming News Bargaining Incentive, to ensure tech and AI companies provide fair compensation when benefitting from journalistic content. 

“Publishers like the Guardian are investing in that future, innovating to meet audience needs, building trust, and adapting to fast-changing digital realities,” she says. 

“Governments must match that commitment, ensuring that journalism isn’t exploited by systems designed to profit from it, but supported by policies that value and protect it.” 

Written by Sezen Bakan