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Business Models For News

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  • 1. Business Models: Frederic Le Jeune z3339875 Who is going to pay for the news?
  • 2. News in the past
    • News was a highly profitable business
    • Companies cultivated monopolies
    • They communicated directly to their audience
    • Annual profit margins of more than 20%
  • 3. Today
    • Companies are facing major downfall
    •  Development of Internet
    •  New technologies
  • 4. Facts about the US newspapers industry:
    • Since 2007:
    • -There have been 35, 000 newspaper job losses or buyouts.
    • -166 newspapers have either shut down or stopped putting out a print edition.
  • 5. Facts about the US newspapers industry:
    • So far this year:
    • -105 newspapers have been shuttered
    • -10, 000 newspapers job have been lost
  • 6.  
  • 7.  
  • 8. Why is Internet Responsible?
    • Advertising is one of their main income
    • If Newspapers sales & subscriptions are falling:
    •  The Audience is falling
    •  Advertising Budget is falling too
  • 9. Katharine Weymouth, publisher of the Washington Post:
    • “ It was a brilliant model. If you were an advertiser and you wanted to reach the local audience, you had to advertise in the newspaper. So our classified section – for those of us local newspapers – were terrific and brought us in hundreds of millions of dollars.”
  • 10. Consequences:
    • Print news executives transform their print news into online news.
    • Advertising revenues doubled from $1.5 billion to $3.2 billion between 2004 and 2007.
    • Since 2008, it began to fall.
  • 11. Facts:
  • 12. How news is used today
    • The modern news consumer doesn’t read news from a single source but from wide variety of sources.
    •  Advertising moved to search engines.
    • Young people are the majority to read news.  Only few pay…
  • 13. Robert Thomson, editor-in-chief of the Wall Street Journal:
    • “ Online news has become an all-you-can-eat buffet for which you pay a cable company the only charge.”
  • 14. Solutions:
    • Financial Times requires payments for anyone whishing to read more than ten articles per months.
    • The Wall Street Journal charges for certain types of news
    •  Better known as “Paywall”.
  • 15. Financial Times Paywall
  • 16. The TIMES Paywall
  • 17. Will it Work?
    • If online readers have what they want:
    •  Quality
    •  Relevance
    •  Credibility
    •  Good price.
    • = iTunes?
  • 18. Thank you for your attention!

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