Identifying a realistic taxonomy of content providers in the online news sector

1. 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

2. 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

3. 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“

4. Comparison of business models of content providers

5. 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?

6. 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

7. CONTENT PROVIDER IN THE NARROW SENSE CONTENT PROVIDER IN THE BROADER SENSE Creator Creator Buyer Creator Buyer Refinement/Value Creator Buyer Refinement/Value Technology Provider Findings from the cases Taxonomy of Internet Content Providers

8. 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

9. 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).

10. 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

11. Newsstand Source: http://www.newsstand.com

12. Effect of technological extension

13. Conclusions Two promising types of Internet business models for content providers: • creation, acquisition, value-adding and digital distribution of content software platform => network effect • concentration on core competence, and right partners to support this strategy