Business Models For News

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Business Models For News

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

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