Wmemc carvajal 16

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Business Models (BM) for Journalism in the Age of Content Discovery Platforms

Miguel [email protected]@mcarvajal_Universidad Miguel Hernández (Alicante, Spain)

Special thanks to the research project team: CSO2012-38467-C03-02

mailto:[email protected]

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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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Zott, Amit and Massa (et al., 2011)

1,777

Published in Academic and Non Academic Journals

BM articles in the business/management field:

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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 Diaz Espina (2015)


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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)


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Method – for conceptualize the BM typologyComponents 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?

HOW DO THEY CREATE VALUE


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

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#1 Digital Platform BM

• Blendle• FB Instant Articles • Twitter Moments• Snapchat• Apple News

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Segment

Human Creativity



Long tail

iRobot

Engagement

Mix model

MARKET


DIFFERENTIATION

REVENUE MODEL

Technology & Big data

Scalable & Massive

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#2 Viral BM

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Segment

Human Creativity Technology & Big data

Enterntainment & DistactionRelevance & brand loyalty


Long tail

iRobot

Engagement

Mix model

MARKET


DIFFERENTIATION

REVENUE MODEL

Scalable & Massive

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#3 Aggregator & Curator BM

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Segment

Human Creativity



Long tail

iRobot

Engagement

Mix model

MARKET


DIFFERENTIATION

REVENUE MODEL


Scalable & Massive

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#4 Focused BM

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Segment

Human Creativity



Long tail

iRobot

Engagement

Mix model

MARKET


DIFFERENTIATION

REVENUE MODEL


Scalable & Massive

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#5 Distributed Content BM

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Segment

Human Creativity



Long tail

iRobot

Engagement

Mix model

MARKET


DIFFERENTIATION

REVENUE MODEL


Scalable & Massive

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#6 Global Media BM

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Segment

Human Creativity Technology & Big data

Enterntainment & DistactionRelevance & brand loyalty


Long tail

iRobot

Engagement

Mix model

MARKET


DIFFERENTIATION

REVENUE MODEL

Scalable & Massive

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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


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What’s the best scenario for journalism?


Public subsidies and philanthropy?

Swallowed by the “new Murdochs”?

Find a sustainable and modest BM?

+


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Thanks for your attention

Miguel [email protected]@mcarvajal_Universidad Miguel Hernández (Alicante, Spain)


mailto:[email protected]

Wmemc carvajal 16

Education

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