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Successful ‘New Media’ Business Models

Successful ‘New Media’ Business Models. Case studies of independent commercial print media in SA By Kevin Bloom & Johanna Mavhungu. The Study. The aim of this research is to identify a successful ‘new media’ business model in SA.

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Successful ‘New Media’ Business Models

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  1. Successful ‘New Media’ Business Models Case studies of independent commercial print media in SA By Kevin Bloom & Johanna Mavhungu Adiel Ismail, PDMM 2011

  2. The Study • The aim of this research is to identify a successful ‘new media’ business model in SA. • The crux of this study is about understanding how three independent commercial newspapers are responding to the online revolution • The newspapers studied are: The TimesThe Daily Dispatch &The Mail & Guardian

  3. The Times • The Times was launched in 2007 • Is the sister publication to the Sunday Times • Its approach is to blur the line between print & electronic media • Carries news on politics, business & sport - 20 minutes • Times website - blogs, podcasts & videos

  4. Daily Dispatch • Daily Dispatch was founded in 1872 as East London Dispatch • Biggest selling daily newspaper in Eastern Cape • Publishes a supplement in Xhosa • Focus on local news, sports & business • Daily Dispatch Online and an e-Edition (mobile)

  5. Mail & Guardian • Formerly the Weekly Mail was established in 1985 • Focus on politics, government & business • Investigative news • 1st newspaper to launch a website in SA & Africa in 1994 • M&G Online publishes local, international and African hard news

  6. The Online Super Highway • Countless global studies have documented that as a result of new technologies, several hundreds of thousands of readers are opting to consume news on the WWW. • The implication of digital migration of traditional mass media has placed the business of print media in a precarious situation because of a decline in advertising revenue. • As a result, Ad-spend has moved online because it is cheaper, jobs have been cut and newspapers have closed shop.

  7. The Online Super Highway • The Times- Avusa recorded a 6%+ in revenue- ABC figures showed a 3.3%+ in circulation • Daily Dispatch- Reported a 5.5%- in circulation- Annual revenue remained steady at around R110 million • Mail & Guardian- Online budget for capital, training & staff increased- ABC figures showed the biggest growth in the weekly newspaper category

  8. The Walled Garden • In August 2009, media mogul Rupert Murdock announced that his news empire intended to place its online entities behind payment gateways. • South African news websites also decided to follow this trend.

  9. Emergent Business Model at The Times • TT has no plans to set up an online payment gateway • Advertising would remain its primary source of income • Ray Hartley - hypothetically, they would charge for content that is aggregated

  10. Emergent Business Model at M&G • Nic Dawes - 'New models around old advertising'1. Enabling advertisers to brand whole sections2. 'Clever' rich media advertising • Charging users for content • Increase multi-media content • It must increase original content on a daily basis • Platform for interaction • Charges should be shifted from the user to the service provider

  11. Emergent Business Model at Daily Dispatch • Charge for content as a revenue stream • Andrew Trench - monthly fee direct to the users • 90% of its content is local and not available elsewhere • 70% of its readers indicated that they are willing to pay between R38-40 monthly

  12. What Can We Learn? • SA newsrooms are under the same pressure as their international counterparts • It is vital to distribute content on various platforms • New business models need to be formulated • Walled garden - 'paid-for' content is popular • Original vs commoditised content • Reporters need to be platform-agnostic

  13. Thank You Adiel Ismail PDMM 2011

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