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Business Model(s) for Online Newspapers Shea Guerrero Slide 2 Newspaper changes over time Circulation is falling; newsprint costs are rising; retail, auto and movie advertising is slumping; classified advertising is available free on craigslist and other online venues. -Rachel Smolkin Due to recent changes within the newspaper business, physical copies of newspapers are losing popularity among people, meaning less people pick up a daily newspaper because there are new and faster ways of obtaining news articles on the go. Slide 3 Some alternatives to physical newspapers Online newspapers!!!!!! Emails of current events Television Radio Slide 4 Online Newspapers online newspapers are responsible for the downfall of physical newspapers IPhones In my opinion, online newspapers are responsible for the downfall of physical newspapers. We live in a world where the internet is available everywhere. Cellphones, such as IPhones, are very responsible for the loss of the physical newspaper because, take for instance, an adult rushing to work who would like to catch up on current events. That person can easily find a news application, or in IPhone terms an app, on any type of news they are interested in, and download it. This app will be permanently installed on their IPhone home screen, and they will no longer need to pick up a physical copy of a newspaper. Slide 5 IPhone apps These IPhone apps also have the ability to share news through email and social networks such as Twitter and Facebook. Sharing news with your friends will influence them to try out online newspapers and do the same for their own friends as well. Slide 6 Declining Newspaper industry New York Times According to advancedtele.com, the New York Times is nervous for the future of the newspaper. 1% digital ad revenue declined by 2.3%. In 2012, digital advertising revenue at newspapers rose only 1% from last year, and its digital ad revenue declined by 2.3%. The New York Times is looking into business models in the online newspaper industry to make more money. Slide 7 Competition There is a lot of competition for ad money because most our news is online now. Slide 8 Competition: World News Alternative Electronic Information Network AEIN- AEIN utilizes shortwave radio, official news agencies, first-hand reporting and other methods to provide a range of news reports and analysis. AlterNet- News magazine and online community that creates original journalism and amplifies dozens of other alternative media sources. Antiwar.com - Antiwar news, viewpoints, and activities. Slide 9 Democracy Now!- Daily news program airing on over 350 stations in North America. Provides audience with access to people and perspectives rarely heard in the US corporate-sponsored media. Dissident Voice- Internet newsletter dedicated to challenging the distortions and lies of the corporate press and the privileged classes it serves. These are just a few internet new sources, there a many more!! These are just a few internet new sources, there a many more!! Slide 10 Journalists arguments how they can still make money off of their writing when physical newspapers arent being sold? Many journalists question how they can still make money off of their writing when physical newspapers arent being sold? the changes in consumption patterns enabled by the web, and the migration of advertising online, represents a massive challenge to existing business models. According to onlinejournalismblog.com,the changes in consumption patterns enabled by the web, and the migration of advertising online, represents a massive challenge to existing business models. Slide 11 Q: How can you justify paying printing and distribution costs when online distribution is not only cheaper, but more effective? A: Get news off the internet. (thats harder than it seems.) Slide 12 Pleasing users Pleasing the user of your online news source is important. These writers must make sure they post things that will please certain age groups and encourage viewers to come back to the website. GoErie.com uses Matchlink.com for example.. http://youtu.be/45gTcvLoNZE http://youtu.be/45gTcvLoNZE Slide 13 Slide 14 Advertising Online advertising is cheaper and readers are worthless in a sense. 36%-55% Last year, online newspaper readers were worth 36%-55% of the value of print readers. is developing a way to attract more readers The key to creating this new business model, is developing a way to attract more readers. A way to attract readers: Reader donations: things that people are interested in paying for. (traveling, cars, technology, dining). Slide 15 Slide 16 Business Models online Partnerships and effective supply chains- Amazon uses this business model in the sales industry which means getting products to sell due user reviews. Slide 17 The big question is, why cant newspapers online do the same to make money? Journalists and illustrators of newspapers could look into merchandising certain quotes from interviews or selling drawn logos. Slide 18 Selling services : a UK newspaper offers many services and partnerships on their online newspaper. Slide 19 Digital News on the Rise According to advancedtele.com, digital Newspaper Web sites drew 113 million visitors per month in the first quarter of 2012, which is about a 4.4% increase from the first quarter of 2011. The total number of minutes spent on newspaper Web sites increased by 6.9%. Over this period, the number of page views increased 1.4%. The average number of visits per user was 9.77 per month. Newspapers are pleased with their users. The number of daily visitors eighteen to twenty- four increased 10% and the number of visitors twenty-one to thirty-four increased by 7% over the same period. Of 18 to 34-year- olds, nearly 50% said they read only digital newspaper content. Slide 20 In Conclusion "The key to the future of newspapers is the effort to build a broad portfolio of products around the core product, the traditional newspaper, and to connect with both general and targeted audiences.- "The Source" "The key to the future of newspapers is the effort to build a broad portfolio of products around the core product, the traditional newspaper, and to connect with both general and targeted audiences.- "The Source" In other words, if newspapers want to remain an industry, people in that industry have to create new business models to make online newspapers more profitable. There has been a rise, and it can continue in time. In other words, if newspapers want to remain an industry, people in that industry have to create new business models to make online newspapers more profitable. There has been a rise, and it can continue in time. Slide 21 References Benz, Bob (2012). Non-Traditional Revenue Can Help Newspapers Regain Lost Revenue. Retrieved on Dec 6 2012 from http://www.advancedtele.com/blog/tag/newspapers/ Benz, Bob (2012). Digital Newspapers Growth Benefits Online Dating Product. Retrieved on Dec 6 2012 from http://www.advancedtele.com/blog/tag/newspapers/ Online Journalism Blog. (2008) Making money from journalism: New media business models. Retrieved on Dec 6 2012 from http://onlinejournalismblog.com/2008/01/28/making-money-from- journalism-new-media-business-models-a-model-for-the-21st- century-newsroom-pt5/ Smolkin, Rachel (2006). Adapt or Die. Retrieved on Dec 6 2012 from http://www.ajr.org/article.asp?id=4111 World-News. (2012). Alternative News. Retrieved on Dec 6 2012 from http://www.world-newspapers.com/alternative-news.html