This is my presentation at the World Media Economics and Management Conference in NY, 4-6 May, 2016, at Fordham University

1. Business Models (BM) for Journalism in
the Age of Content Discovery Platforms
Miguel Carvajal
mcarvajal@umh.es
@mcarvajal_
Universidad Miguel Hernández (Alicante, Spain)
Special thanks to the research project team:
CSO2012-38467-C03-02
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2. Aims of the paper
• Rethink the concept of business model (BM) for
journalism from the value creation perspective
• Understand how the new ‘platform paradigm’ impact
core principles of media economics
• Identify new types of business models for journalism
emerging in this new paradigm
• Conceptualize these BM with an holistic approach
and find examples that fit into each type
M. Carvajal - May 5th, 2016 - NY
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3. M. Carvajal - May 5th, 2016 - NY
Zott, Amit
and Massa
(et al., 2011)
1,777
3
Published in
Academic and
Non Academic
Journals
BM articles in the business/management field:

4. Main works on BM in media economics field:
• Picard (2000)
• Vaccaro and Cohn (2004)
• Bakker (2002)
• Cham Olmsted and Ha (2003)
• Wirtz (2011)
• Gabszewicz et al. (2015)
• von Rimscha (2015)
• Goyanes and Peinado (2014)
• Vara and Díaz Espina (2015)
M. Carvajal - May 5th, 2016 - NY
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5. Theoretical background
• Confusion with terminology between business model,
strategy and revenue streams (Morris and
Schindehutteb, 2005; Vara et al. 2015)
• We need to understand how value is created and
distributed, not only captured in the media industry
• The new digital paradigm changes the value chain
for media (Cardoso and Moreno, 2015; Wirth, 2011)
• Post-industrial journalism (Anderson et al, 2010) and
the emergence of a new ecosystem (Bruno, N., &
Nielsen, R. K, 2012, Cook and Sirkunnen 2013)
M. Carvajal - May 5th, 2016 - NY
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6. M. Carvajal - May 5th, 2016 - NY
Method – for conceptualize the BM typology
Components of the BM (Morris, 2008)
1. How do they create value?
2. For whom do they create value?
3. What is their internal source of competence?
4. How do they position in the marketplace?
5. How do they make money?
6. What are their time, scope, and size ambitions?
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7. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment Scalable & Massive
Human Creativity Technology
Enterntainment & DistractionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
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GrowthSustainable Speculative
SIZE, SCOPE & AMBITIONS

8. M. Carvajal - May 5th, 2016 - NY
#1 Digital Platform BM
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• Blendle
• FB Instant Articles
• Twitter Moments
• Snapchat
• Apple News

9. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment
Human Creativity
Enterntainment & DistractionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
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Technology & Big data
Scalable & Massive

10. M. Carvajal - May 5th, 2016 - NY
#2 Viral BM
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11. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment
Human Creativity Technology & Big data
Enterntainment & DistactionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
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Scalable & Massive

12. M. Carvajal - May 5th, 2016 - NY
#3 Aggregator & Curator BM
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13. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment
Human Creativity
Enterntainment & DistractionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
13
Technology & Big data
Scalable & Massive

14. M. Carvajal - May 5th, 2016 - NY
#4 Focused BM
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15. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment
Human Creativity
Enterntainment & DistractionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
15
Technology & Big data
Scalable & Massive

16. M. Carvajal - May 5th, 2016 - NY
#5 Distributed Content BM
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17. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment
Human Creativity
Enterntainment & DistractionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
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Technology & Big data
Scalable & Massive

18. M. Carvajal - May 5th, 2016 - NY
#6 Global Media BM
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19. HOW DO THEY CREATE VALUE
M. Carvajal - May 5th, 2016 - NY
Production Curation Discovery
Segment
Human Creativity Technology & Big data
Enterntainment & DistactionRelevance & brand loyalty
Brands & AdvertiersFriends, Subscribers
Long tail
iRobot
Engagement
Mix model
MARKET
SOURCE OF COMPETENCE
DIFFERENTIATION
REVENUE MODEL
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Scalable & Massive

20. Conclusions
• BM is generally confused with revenue streams or
other parts of the concept
• Instead on focusing on revenue generation,
media outlets need to consider value creation first
• Tech Platforms hold a dominant position, control the
data flow and weaken legacy media BM
• We should emancipate from legacy media
perspective in the field of media economics
M. Carvajal - May 5th, 2016 - NY
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21. What’s the best scenario for journalism?
Special thanks to the research project team:
CSO2012-38467-C03-02
21
Public subsidies
and philanthropy?
Swallowed by the
“new Murdochs”?
Find a sustainable
and modest BM?
+
M. Carvajal - May 5th, 2016 - NY

22. Thanks for your attention
Miguel Carvajal
mcarvajal@umh.es
@mcarvajal_
Universidad Miguel Hernández (Alicante, Spain)
Special thanks to the research project team:
CSO2012-38467-C03-02
22