The Impact of the Internet on Business Models in the Media Industries – A Sector-by-Sector Analysis

Ala-Fossi, Marko; Bakker, Piet; Ellonen, Hanna Kaisa; Kung, LeeAnn; Lax, Stephen; Sádaba, Charo; Wurff, Richard van der

doi:10.4135/9781446216316.n8

Cited by 12 publications

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“…Managers may consider restricting some parts of the Web sites to subscribers, for example, which would nurture the existing brand relationship for current subscribers in between the issues of the print magazines (cf. Ala-Fossi et al, 2008). A stronger customer relationship could be considered of strategic importance, given the general fragmentation trends in media industries (Napoli, 2004) and the increasing competition on the Internet.…”

Section: Discussionmentioning

confidence: 99%

The Effect of Magazine Web Site Usage on Print Magazine Loyalty

Ellonen

Tarkiainen

Kuivalainen

2010

International Journal on Media Management

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The purpose of this study is to explore the impact of magazine Web site usage on print magazine loyalty and word-of-mouth intentions. Thus, the key question is whether active Web site visitors are more likely to buy the magazine in the future. The research framework builds on the literature on relationship marketing and brand relationships, and is tested on a sample of the online users (n = 2,351) of 24 Finnish consumer magazines. This study uses structural equation modeling (LISREL 8.50) and simultaneously tests the hypotheses on 2 sub-samples: current subscribers of the magazine (n = 1,068) and non-subscribers (n = 1,283). Significant differences were found between the 2 samples. Most important, the impact of Web site usage on print magazine loyalty was found to differ. There was a negative effect in the non-subscriber sample, whereas there was no evidence of such an effect in the subscriber sample. Thus, it seems that magazine Web site usage may substitute the print magazine for non-subscribers.

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Section: Discussionmentioning

confidence: 99%

The Effect of Magazine Web Site Usage on Print Magazine Loyalty

Ellonen

Tarkiainen

Kuivalainen

2010

International Journal on Media Management

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“…Since the dotcom bubble burst in early 2000, the Internet has continued to become increasingly prominent in society, impacting all media (Küng et al, 2008a). The consensus in the first phase of the Internet revolution was that the newspaper business model was under serious threat (Ala-Fossi et al, 2008). Kaye and Quinn (2010) are more direct, declaring the traditional newspaper business model has been rendered "virtually obsolete" (p. 18).…”

Section: 4a Business Modelmentioning

confidence: 99%

Free Newspapers in the United States: Alive and Kicking

Tennant

2014

International Journal on Media Management

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Free newspapers are a substantial segment of the newspaper industry, as well as an under-studied topic within media research. This dissertation considers the economic health of free newspapers and whether they face a dire future given their heavy reliance on advertising, a source of revenue that has been in decline for newspapers. Some industry observers suggest it is supreme folly for newspapers to give away their content for free, and that advertising is no longer a reliable revenue source for print media in the Internet era. One question guiding this research is whether free newspapers face two options: continue producing free content by relying on advertising (in addition to other revenue sources), or abandon the advertising-based business model. Seven research questions address a number of issues, such as whether free newspapers are profitable, if decision-makers are considering changing their business model, whether they are seeking alternative sources of revenue, whether reader engagement is connected to the price, or a lack of one, of a newspaper, and whether decision-makers are optimistic or pessimistic about the future of their industry. A Web-based survey asked decision-makers at free newspapers in the United States to respond to questions related to the health and future of vi their newspaper or newspapers. Four in-depth interviews with publishers of four different types of free newspapers in Texas were also conducted to complement results generated by the Web-based survey. Results show decision-makers at free newspapers are confident about the future of their particular kind of media. The dissertation concludes by suggesting free newspapers are not only viable but in many markets they are thriving.Sweeping generalizations (often seen in industry discourse) about the future of print newspapers can be misleading. The key for success is engaging readers with content and that means a focus on local issues and events. This study contributes a reality check and calls for further research on the economics of print media in the digital era.vii Imagine you own, manage or simply work for a business that gives away its main product. This product is a free newspaper and for decades the operation has been profitable. There have been lean years, but the newspaper never wavered from its publication schedule, whether daily, semi-weekly, weekly or monthly. Sparked by the rise of the Internet in the mid-1990s, criticism arose from industry observers, publishers and owners that newspapers should never give away their content (Buffett, 2012;Ladurantaye, 2012aLadurantaye, , 2012b. Nevertheless, free newspapers have existed for two centuries in North America, suggesting the decision to give away content has been somewhat successful.Free newspapers attract readers with various degrees of high-and low-brow journalism. This audience is then sold to businesses, organizations and individuals seeking to sell their wares or services, or create recognition for a cause, event or a candidate. This, of course, is the classic adve...

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“…While journalists and publishers agree on the inevitability of change, there is still no consensus on the actions to be taken or even on the nature of the change. Indeed, the Internet also challenges the traditional gatekeeper role of the journalists (Ala-Fossi et al, 2008), in line with the rise of new types of media and citizen journalism. It is not clear what the role of the newspaper industry will be in producing the actual product in the future.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Ala-Fossi et al, 2008), in Ivory-towerizing it goes the other way round. As the need for change seems to be out of agenda, the resulting mode of operation functionally represents the logic of print publishing, as the following quotations from the website development staff indicate: '... …”

Section: "The Focal Issue Is How We Get Younger People To Subscribe Pmentioning

confidence: 99%

From ivory towers to online bazaars? The internet, social media and competing discourses in the newspaper industry

Kosonen

Ellonen

2010

Knowledge Management Research & Practice

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In line with the development of new media, newspaper companies are facing drastic changes in their competitive environment. Managing change requires both new capabilities and frames of thinking. Organizational learning can be understood as the increase of shared organizational knowledge through changing the social practices, which, in turn, consist of discourses. In this paper we investigate the Internet and social media related discourses among newspaper journalists, in order to better understand how social reality is constituted and made sense of in terms of new media. As a result, we identify four types of discourses: Ivory-towerizing and Shielding, which seem to impede learning, and Accelerating and Connecting, which encourage adapting to learning and change within newspaper companies.

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The Impact of the Internet on Business Models in the Media Industries – A Sector-by-Sector Analysis

Cited by 12 publications

References 0 publications

The Effect of Magazine Web Site Usage on Print Magazine Loyalty

The Effect of Magazine Web Site Usage on Print Magazine Loyalty

Free Newspapers in the United States: Alive and Kicking

From ivory towers to online bazaars? The internet, social media and competing discourses in the newspaper industry

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