From Ink to Pixels: Looking for Viable Business Models for Digital Media
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Transcript of From Ink to Pixels: Looking for Viable Business Models for Digital Media
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From Ink to Pixels Looking for viable business models for digital media
Olga Dorovskykh
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Industry in Transition
Newspapers were unprepared for the crisis: they “exhibited profit margins higher than most industrial sectors and the largest share of ad expenditures of all media” (Boczkowski 2005)
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Business Model (BM)
• A business model articulates the logic and provides data and other evidence that demonstrates how a business creates and delivers value to customers. It also outlines the architecture of revenues, costs, and profits associated with the business enterprise delivering that value. (Teece 2010)
Components of a digital newspaper business model: • Ad revenue • Subscriptions • Partnerships and
sponsorships • Events • Diversification with
consumer products • Archive re-use and
repurposing • Crowdfunding and
crowdsourcing • Native Ads
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The need for viable BM
• Decline of free press (Besley and Roberts 2012) • Market is easy to enter for competitors (Compaine and
Hoag 2012) • Need for huge investments to make over the current
business model and to train staff (Cox 2014) • News orgs “opened gambit” in building free websites –
paywalls are not working (Curran 2010) • Advertising a volatile source because of the born-digital
competitors like Google (Schlesinger and Doyle 2014)
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Theoretical Framework
• Diffusion of Innovations (Rogers 1962, 1995) • Disruptive Innovation (Christensen 1995) • Long Tail Economics (Anderson 2006) • The Tipping Point (Gladwell 2000) • The Black Swan (Taleb 2007)
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Diffusion of Innovations
• Diffusion of innovations is a central theory for the research
Early adopters love to experiment with innovations
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Research Questions
• The goal is to see how journalists perceive the business models of their enterprises and to gain insights into how these models will be shaped in the nearest future
• RQ 1: “How journalists view the future of their enterprises?” • RQ 2: “How journalists describe their perceptions of
promising business models for online media?” • RQ 3: “How journalists see themselves as adopters of new
business technologies and trend setters for other media?” • RQ 4: “How journalist view the decision-making process of
their media managers and the consequences of this process? ”
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Sample and Method
• Semi structured technologically mediated 30-50 minute interviews with 10-12 technology writers that work for born-digital publications.
• People who write about startups and economy have more insight into the state of IT industry; at the same time they are not responsible for business decisions and unbiased.
• Born-digital publications that are early adopters of new business models and are successful financially: TechCrunch, All Things D, Huffington Post, Buzzfeed, etc.
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Sample and Method
• Transcribing and coding interviews as soon as the first ones become available (adjusting interview questions if needed)
• Reading and re-reading transcribed interviews to get immersed into data
• Primary-cycle coding with constant comparison • Secondary-cycle coding and categorizing, writing memos,
pinning illustrative examples • Testing the codes/categories looking for negative cases • Theoretical saturation and developing hypothesis from codes
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Linking the theory and the method
• “Making sense of these patterns of innovation furnishes analytical insights about construction, products and use of new media”
• “…Trajectory from exploring to settling to hedging expresses a culture of innovation marked by reactive, defensive, and pragmatic traits. Newspapers usually followed players that moved first in relation to potentially relevant technical and social developments…” (Boczkowski 2005)
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Expectations/Limitations
• Identifying crucial components of business models and looking at they are being adopted within media enterprises
• Assessing the journalists attitudes towards the perspective of becoming entrepreneurs
• Assessing their way of thinking • Study can be limited by the access to these people (but
Mizzou Mafia can help)
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Thank you! Walter Isaacson, Time magazine's former managing editor, author of "How to Save Your Newspaper” believes the key to attracting online revenue is an iTunes-like method of micropayment.