HOME
          
LATEST STORY
Newsonomics: Tribune Publishing is busy playing catch-up
ABOUT                    SUBSCRIBE
Feb. 2, 2010, 10 a.m.

Media’s next top business model: survey suggests hybrids

It’s not just newspapers struggling to find their way in the digital era. Many content companies — broadcasting, film, music, publishing, and gaming — are grappling with the same business model uncertainty.

In a recent survey (pdf), the consulting firm Accenture asked 102 content-industry leaders to pick the biggest hurdle they face. Overwhelmingly, executives pointed to the hunt for a viable business model. And since they’ve asked the same question (sort of — see below) for three years, we can look at how execs’ thoughts have shifted over time.

First, the data shows a clear decline in what Accenture calls the “pay-for-play” concept — something like what we in the news context would term micropayments or “the iTunes model.” In 2007, 23 percent of respondents were banking on micropayments as the next top business model. In 2008, that number dropped to 11 percent. In 2009, it fell to just 8 percent.

But beyond that, the changing nature of the options Accenture gave respondents muddies the waters a bit. In 2009, the survey included two new options: “freemium” (some content remains free, users can pay for extra content) and “hybrid” (a combination of different models, like ads plus a subscription). One could easily argue that freemium is a type of hybrid, and for the chart above, Accenture chose to combine the hybrid responses with advertising ones. (The 60 percent you see above is actually 39 percent advertising, 21 percent hybrid.)

I spoke with David Wolf from Accenture’s media division about what we should take away from the findings. He said that the clear takeaway here is that “hybrid” models are the next big thing. “The only thing we can discern as we get through our research and look at it is there is no business model clearly emerging as ‘the one,'” Wolf explained.

Going hand-in-hand with a hybrid business model is an aggressive transition to a multi-platform delivery strategy. “What we conclude [from the survey] is that the platforms and the growth need to be viewed as integrated,” Wolf explained. “How do we create offerings that span the screens?” About 65 percent of respondents said new platforms or method of delivery is where they’ll find business growth next year, compared to 25 percent by creating new content, and 10 percent by expanding to new geographic areas. Those are all roughly similar to previous years.

Another trend to watch is the media industry moving toward a more personalized use of data. Rather than thinking about audience in broad terms, Wolf predicts media companies will get better at tailoring to individuals the way a hotel chain attracts customers with loyalty programs. Where companies once went after a demographic group like tweens, Wolf mentioned, “we’re changing that mindset” to something much more individualized.

POSTED     Feb. 2, 2010, 10 a.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
Newsonomics: Tribune Publishing is busy playing catch-up
The owner of the Los Angeles Times, Chicago Tribune, and other out-of-fashion metro dailies has plenty of good ideas — but they’re still playing from behind.
Take two steps back from journalism: What are the editorial products we’re not building?
“Imagine all the wildly different services you could deliver with a building full of writers and developers.”
Newsonomics: The Financial Times triples its profits and swaps champagne flutes for martini glasses
The FT is a leader in crossing over from print — digital subscribers now make up 70 percent of its paying audience, a number that keeps growing.
What to read next
907
tweets
Snapchat stories: Here’s how 6 news orgs are thinking about the chat app
From live events to behind-the-scenes tours, The Huffington Post, Fusion, Mashable, NPR, Philly.com, and The Verge tell us how they’re approaching Snapchat.
611New rules governing drone journalism are on the way — and there’s reason to be optimistic
They’re more permissive than some had expected: “Under this regulatory framework, every newsroom will have drones and people certified to fly them. They’ll just be part of the equipment.”
542Internet birthed the radio star: Local newspapers are hoping online radio can be a growth area
Despite slow audience and revenue growth, a handful of newspapers are optimistic about the future of Internet radio.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
PBS NewsHour
PubliCola
BuzzFeed
PBS
Arizona Guardian
New Jersey Newsroom
Seattle Post-Intelligencer
Sacramento Press
Conde Nast
The Daily
Quartz
Ars Technica