identifying a realistic taxonomy of content providers in the online news sector
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Identifying a realistic taxonomy of content providers in the online news sector Cornelia C. Krueger Paula M.C. Swatman. WHO ARE THE INTERNET CONTENT PROVIDERS?. The third IFIP I3E Conference September 21-24, 2003. Introduction. Content providers struggle to find adequate revenue - PowerPoint PPT PresentationTRANSCRIPT
The third IFIP I3E ConferenceSeptember 21-24, 2003
WHO ARE THE INTERNET CONTENT PROVIDERS?
Identifying a realistic taxonomy of content providers in the online news sector
Cornelia C. Krueger Paula M.C. Swatman
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Introduction
Content providers struggle to find adequate revenue They are struggling to survive because of
• declining subscriber numbers,• falling advertising revenue• A fickle and highly-critical public
Most newspapers initially went online with a business model very like their real-world model
We suggest a continuum of business model types for content provision ranging from pure content provision to an extension beyond content to the provision of technology
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
The content market value chain
Research into eBusiness models: Timmers (1998), Schuster and Weiss (2001): “Value chain de- and
reconstruction” Rappa (2002): „Company identifies its place in the value chain“ Picard (2000): „Business model includes the concept of the value
chain“ Parolini (1999), Loss and Scheer (2002) „Value networks“ Woessner (2001): „eBusiness value chain“
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Comparison of business models of content providers
Authors Catchword Value Chain Critical Success Factors Sources of Revenue
Bartussek Newsfilter Producer and Intermediary
- Identify and serve customers’ needs;- Traditional strengths;- New income resources
Selling productAdvertising
Farhoomand/Lovelock
Content Provider Intermediary Subscription fees
Niewiarra Content Network Network Networks Revenue sharing
Rayport Content Business Network Revenue sharing between content provider and online service
Revenue sharing
Weill/Vitale Content Provider Producer Branding;Recognised as best in class;Network
Fees from third parties or allies
Wirtz E-Information Intermediary Differentiation Pay per transaction;Subscription
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Research approach
Is there a single definition of the term “content provider”, or can a content provider enlarge its business model according to its needs – especially as the Internet itself evolves?
How do content providers develop their business models? How do content providers position their company in the content
value chain?
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Cases
Interviews with several stakeholders in the online news market:• ddp • RZ-Online• FAZ.net • Publico.pt
Analysis of Web sites of a number of newspapers and magazines: • The Wall Street Journal • the New York Times• Il Corriere della Sera• El Pais
Analysis of Web sites of some of a new type of content provider: • Newsstand • Tecnavia• In a Daily
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Findings from the cases
CONTENT PROVIDER IN THE NARROW SENSE
Creator
Creator Buyer
Creator Buyer Refinement/Value
Creator Buyer Refinement/Value Technology Provider
CONTENT PROVIDER IN THE BROADER SENSE
Taxonomy of Internet Content Providers
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Content creator – Content creator and buyer
Content creator: concentrate on producing content E.g. big news agencies or journalists
Content creator and buyer: create and buy content to sell through their Web presence E.g. smaller news agencies which create, for example, national,
business and cultural news but have to buy sports news
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Content creator, buyer and value adder
creating, buying and adopting content for their customers create some of their content in-house, buy specialist material to
round out their offerings cooperates with companies which supply Internet access or
application services E.g. portals, most newspapers and magazines (Publico.pt or the
Wallstreet Journal).
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Content creator, buyer, value adder and technology provider
purchasing technological infrastructure, finding a technology partner or technology provider themselves
or offer their technology platform to other newspapers and magazines worldwide
The NYT has developed a highly successful new business model out of technology - Newsstand
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Newsstand
Source: http://www.newsstand.com
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Effect of technological extension
Advantages for the content provider Advantages for the customer
Independence of Internet providers Customer can be mobile
Customer Data of high quality Customer doesn’t have to be online
Customised/personalised offers Customer only needs one software for different content providers
Network=> greater potential customer base
Customer chooses his/her own offer
Technological platform can become a portal
WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector
SimWeb www.simproject.de
The third IFIP I3E ConferenceSeptember 21-24, 2003
Conclusions
Two promising types of Internet business models for content providers:
1. creation, acquisition, value-adding and digital distribution of contentsoftware platform => network effect
2. concentration on core competence, and right partners to support this strategy