Business models for newspapers in a digital world

Abstract

The Western newspaper industry is going through a severe crisis caused by three factors: the rise of the Internet as a digital distribution channel and sinking circulation numbers; the rise of social media; the economic crisis and diminishing advertising spending. After providing their content for free online, newspaper publishers are looking at modes of online monetisation. The newspaper industry and its value chain are described, as well as economic properties of networks and information goods. This thesis presents a review of the literature on business models and introduces a framework to study newspaper business models. Specifically, the framework comprises the customer interface, the financial model, value creation processes and the value proposition. Applying the framework to eight major European newspapers (20 Minuten, Aftenposten, Die Zeit, Le Temps, Mediapart, Süddeutsche Zeitung, The Guardian, and Verdens Gang), this report produces findings on the choices publishers have made in all four dimensions, as researched during in-depth interviews. This report presents key choices publishers must make, such as integrating or separating editorial teams of print and online content, or introducing a paywall online. Each decision impacts the value proposition of the newspaper.