ConsenSys, a blockchain software technology company based in Brooklyn, New York, as per a press release report by WordPress, on Monday, Jan. 14th 2019, will be contributing a $350,000 investment to WordPress.com to develop a new revenue-generating news platform –Newspack, an open-source publishing platform for news companies.
The company is joined by others in the shared cause, with Google, through the Google News Initiative, contributing $1.2 million; The Lenfest Institute for Journalism, contributing $400,000; and The John S. and James L. Knight Foundation, contributing $250,000. Furthermore, an additional $200,000 contribution, from an unnamed fifth source is expected later this month.
Thus, in total, Automattic, the parent company of WordPress.com, and its partners Spirited Media and News Revenue Hub have secured a $2.4 million funding for the first year of the project.
The “Newspack” initiative idea was based on the struggle & hardship new news startups face, such as the complexities of technology selection, development, maintenance, hosting, and security, which obstructs revenue generation. With currently no cost-effective solution that comes with best-in-class tools in the market, that different news concerns can easily share, WordPress came up with this innovative idea.
The platform, which is on the way to development, will address all those issues, startups face. The platform’s prime focus will be to help small digital publishing houses flourish, by joining the platform that incorporates the industry leading editorial and business practices, at reasonable rates.