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DEVELOPING AN ONLINE NEWSPAPER BUSINESS MODEL

DEVELOPING AN ONLINE NEWSPAPER BUSINESS MODEL. LONG DISTANCE MEETS THE LONG TAIL. Online Newspaper Backgrounder. Revenues up, market share down Online ad gets 20-30 % of print ad’s worth Online profit margins half of other media. Current Models. Pay-by-view Free

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DEVELOPING AN ONLINE NEWSPAPER BUSINESS MODEL

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  1. DEVELOPING AN ONLINE NEWSPAPER BUSINESS MODEL LONG DISTANCE MEETS THE LONG TAIL

  2. Online Newspaper Backgrounder • Revenues up, market share down • Online ad gets 20-30 % of print ad’s worth • Online profit margins half of other media

  3. Current Models • Pay-by-view • Free • Free w/some pay-by-view • Result: Publishers say, “Online is key, but I won’t be experimenting or doing anything positive about it as part of my investment strategy” (WAN 2006 survey)

  4. The Search for Competitive Advantage • Implies: Resource-based view theory • Suggests: A firm’s strengths lies in its resources • The place to start: A firm’s value chain • Process: Dis-assemble, then re-assemble the parts or elements to meet the new market’s needs

  5. Then what? • Core competencies • Mistake: Match products w/demographics • Better: Deliver convenience, comprehensiveness, timeliness; not a niche • Examine assets for value, from customer’s viewpoint, but also for “inimitability”

  6. Distance in Online Context • Online = global reach • Online value in eyes of customer • “Proximity” takes on new meaning in online • Two online audiences: local and long-distance (Chyi & Sylvie, 1998 & 2007) • Distance audience basically ignored

  7. Along Comes the Long Tail • LT: In distributing a commodity, info tech – specifically the Internet – increases the share of niches (Anderson, 2006). • Online Benefit: Internet markets arm audience members with search capabilities. • A Big “But”: The consumer – not the newspaper – determines the product (GLT)

  8. Key: Partnering & Distribution • Why?: Media have intended & unintended uses, rendering the newspaper ill-equipped in marketing, audience knowledge, delivery systems and context of use. • So: Make news for non-newspaper delivery vehicles • Such as?

  9. Possible Partners • Mobile media; it…  moves  has willing-to-pay users  headed to broadband sophistication  allows time shifting  is growing in use

  10. Possible Partners (cont.) • Local, retail businesses; they… $ aren’t classified ads $ attract people and invite socializing $ have bonded with their customer bases $ are venues that make papers unobtrusive $ invite informational searching $ spend $ online

  11. GLT Pluses • Content-as-search eliminates much guessing about what attracts consumers. • Searchable content resolves usability design issues and provides “original” content and eliminates need to ally with a popular browser to drive traffic. • Offers a sense of community without imposing the journalist’s or editor’s view of that sense.

  12. Challenges • What’s Not to Like?

  13. Challenges (seriously) • Training – creating value for some, learning value for others • Organization – serious local R&D • Organization – outsourcing • Organization – tech infrastructure (search interface) • Organization – planning (continuously)

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