Steven Gan, editor-in-chief of the news website malaysiakini, is facing a dilemma. How much editorial content should it charge for, and how much should it offer for free? The problem is not unique, but the calculation is difficult, because malaysiakini was set up to deliver independent news to all not just those who can afford to pay.

Malaysiakini was launched three years ago by Gan, co-founder Premesh Chandran and a handful of dedicated journalists. It aims to establish and support freedom of press in Malaysia, where the state media are all-pervasive. The title translates as "Malaysia Now"; the team wanted the site to be relevant to all current issues and not just those the government wanted to publicise.

As well as leaving good jobs and taking a drop in pay, the team dug deep into their own pockets to finance the venture, but it wasn't enough. The original idea was to raise money from non-profit bodies and foundations in the first year so that they could provide news free of charge.

They managed to secure a US$100,000 (RM3,800) grant from Seapa, the Southeast East Asian Press Alliance, set up to help publications facing government regulations and self-censorship. This, and smaller grants, got them up and running but, as they grew, more was needed.

RM1.33 million investment

Then MDLF, the Media Development Loan Fund, set up to help independent media in emerging democracies, made a 29 percent, $US350,000 (RM1.33 million) equity investment in the site. However, malaysiakini decided it needed to make money on its own to avoid the charge of being funded by international non-profit bodies and foundations, and thereby influenced by outside interests.

Since its modest launch, malaysiakini has grown and now claims 100,000 unique users a day. But with that growth has come increased costs. With 30 staff, new office space and technology overheads increasing daily, the total budget for the entire operation is RM1.3 million of which editorial costs alone account for around RM716,000 a year.

Securing advertising is not easy. Some firms are unwilling to have their names associated with a publication criticised by the government as being radical and anti-establishment labels that Gan is eager to shed.

It is now looking to syndicate its content through a deal with Globalvision News Network. It is offering its home-produced content management system through a new company, Kinitech.

Subscription model

And so, in an effort to raise revenue, malaysiakini decided to charge for access to its analysis section earlier this year. This helped, but it didn't plug the gap, so Gan and Chandran decided they had to apply the subscription model to the whole site.

And so that dilemma again: what percentage of each story to charge for, and how much to give for free? How many words are needed to inform those who can't afford to pay without losing those who are willing to subscribe?

Although malaysiakini's new office now has decent toilets and a handful of barely adequate air-conditioning units, Gan is not concerned about the surroundings. This is a man who has spent time in a cell after being arrested for reporting on a conference about the situation in East Timor. He is more interested in what appears on the pages he is producing than the office he sits in.

At the morning news meeting, Gan and his team take extra care to offer both sides of every story and deliver fair, balanced journalism; they have to, because any slip-up could mean a visit from the authorities.

On the newsroom wall hang front covers of the independent newspapers and magazines that have published in Malaysia over the past years. Gan points out those that have closed; there are few left.

Strength in humble beginnings

What would happen if the subscription business model were to fail? Gan is quick to respond. "Malaysiakini, as a voice, will continue. When we started all we had were a few journalists, a phone line, a modem and web space. If we have to, we can do that again. Even one story a day will be better than no independent voice."

In a way, malaysiakini's strength lies is in its humble beginnings, along with the determination of its staff who are prepared to make sacrifices in order to deliver independent news for Malaysia.

Its new subscription model might just make that survival more comfortable; early indications, based on the number of new subscribers signed on since the changes were introduced, are extremely encouraging and suggest it might just work. The Guardian

DAVID BREWER is the former managing editor of BBC News Online and CNN Europe. He now advises on new media editorial strategy through www.mediaideas.co.uk