| How does a website like TMZ.com make money off the photos, videos, document, etc. they are first to obtain?

How does a website like TMZ.com make money off the photos, videos, document, etc. they are first to obtain?

Chupacabra asked:


You often hear on the news that TMZ.com was first to obtain documents, photos or video, etc regarding latest headline news stories. This includes the video of “Kramer” ranting racial slurs at a person in the audience of a comedy club and most recently the audio recording of OJ yelling at the sports dealer who had some of his sports memorabilia. My question is how does a website like TMZ or other similar websites profit from this. Do news stations, newspapers, etc have to pay them each time they play these recordings or show the photos? TMZ in particular seem to be first at obtaining such things and I wonder if they are just well connected or are known to offer a large amount of money to individuals that have coveted news worthy photos, documents, video, etc.

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Comments

One Response to “How does a website like TMZ.com make money off the photos, videos, document, etc. they are first to obtain?”

  1. voxatrophia on June 7th, 2009 7:17 pm

    Why is TMZ popular? I’m guessing it pays pretty well. Although, I don’t know if I would assume that just because they are popular, they are making money.

    However, as to you question, tabloids make money like any other newspaper. You buy the actual magazine (or go to the website) and the magazine will have ads in it, which, along with the purchase price, help the magazine make money.

    The tabloids don’t make money on the pictures. They buy the pictures from the paparazzi. But the tabloid with the best stories and best pictures will often sell the best. That’s the same for any newspaper really. Tabloids just happen to focus on celebrities.

    Edit:
    It seems TMZ has become profitable just a few months ago. Here’s a good article about TMZ, somewhat focusing on their financial situation.

    There is a good section on how they acquire their news:
    “TMZ has a shoe-leather staff that circumvents publicists to make friends with valets, bellhops and other witnesses to celebs’ bad behavior. Unlike traditional news outlets, however, TMZ sometimes pays for information. And it lets fans participate and profit, thanks to camera phones, which turn yesterday’s mere voyeurs into today’s compensated paparazzi.”