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Searching for the Business Model Pepe Cerezo DOSSIER Searching for the business model Pepe Cerezo DOSSIER. Searching for the business model 1 WelcomeBienvenido to aan una interactive publicación publication interactiva PressingPulsando the sobre “i” buttonel botón returns “i” regresa to the al index.índice. Aggregation 4 PressingPulsando the sobre arrows las flechas advances avanza or rewinds o the Agencies page.retrocede página. 6 Brand licensing 8 Barter product 9 Electronic commerce 11 Business consultancy and advice 16 ByPulsando clicking sobre on these estos buttons botones you podrá can acceder access Cross selling 17 thea las social redes networks sociales deprofiles Evoca of Comunicación Evoca Crowdfunding 18 e Imagen. Crowdsourcing 19 Data broker 20 Events 20 Philanthropy 22 Training and education 24 Research and analysis 24 Content marketplace 25 Media for equity 26 Membership 27 Content payment 29 Advertising 32 Tech licensing 36 Jaas (journalism as a services) 38 Verticals 39 EDITA: Evoca Comunicación e Imagen Innovation 41 Marqués de Urquijo, 11. 7º B. 28008 Madrid Conclusions 44 www.evocaimagen.com • [email protected] Directores: Julio Cerezo, Pepe Cerezo Collection: Dossiers EVOCA About the AUTHOR: 4 DOSIER: Searching for the business model Pepe Cerezo Digital strategist. Specialist in digital journalism, online media and new business models. More than 15 years of experience in new technologies and digital transformation of organizations. Since January 2015, director of Evoca Media, a digital strategy-consulting firm focused on digital communication and media transformation DESIGN: iO, idea original with wide experience in the implementation and development of digital projects. Previously he has held various www.ideaoriginal.com • [email protected] executive positions always related with digital business in different companies like Prisa, Orange, etc. Evoca is a COVER: Julio Cerezo company formed by experienced professionals in project management, Communication and Digital Transformation. DOSSIER. Searching for the business model 2 Searching for the business model The impact of digitization in the media responds to this revolution but rather a Education& Press TV Radio sector has been particularly rapid and sort of combination of different sources of Publishing intense compared to others. Digitization income. Precisely, the fall in advertising has transformed the chain value as a revenues has obliged media companies whole, especially with regard to the to look for new business opportunities in distribution model and, therefore, the other areas such as electronic commerce, business model. Surprisingly, in the the sale of content and technology to third information society the media, are parties, events, etc. There is no doubt that suffering the most to find a viable and it is one of the great challenges to the Readers Viewers Listeners sustainable business model over time. sector: the media will survive in the extent to which they are able to look beyond Although the media has advanced in the traditional business models1. So far, the Digital creation and development of information lack of in novation and the aversion to and entertainment products, third parties taking risks have been the major problem. Verticals eCommerce are increasingly controling the distribution. The quest for a universal and stable The media should internalize all the business model remains a priority. Even new business rules that are constantly more so for the traditional ones, which appearing in the digital world so that they Crowdfunding Agregation “As A Services” models “As support all the paper structures and have can rethink their role in the chain of value. User Centric Oreinted no other option but to reinvent themselves. The digital economy is an overabundant economy: infinite advertising inventory, However, almost two decades later, despise immeasurable competition in which it is Suscription Advertising of proofs and errors, there has not been necessary to look for artificial scarcity found a single, universal model that models based on differential value 1 The reinvention of publishing: media firms diversify to survive https://www.theguardian.com/media-network/2017/jan/30/reinvention-publishing-media-firms-diversify-survive DOSSIER. Searching for the business model 3 proposals. In this sense, it is important categories. In addition, it is also important Global newspaper traditional to understand that business is also part to differentiate when the commercial revenue sources. of the message2. In other words, business relationship is carried out between Global data 2012-2017 models have a major impact on what is companies: business-to-business (B2B), produced and how and which end user or between companies with the end user: consumes it. Innovation, diversification business-to- consumer (B2C). However, in and hybridization of models are the three some models both variants are possible. 20,000 60,000 100,000 140,000 180,000 main characteristics that should be present 2013 164,091 in any business strategy. With this in mind, based on the categorization of the different models, we The choice of the business model depends have identified and selected a set of good on the organization of the market, the practices that allow us to have a vision of 2014 160,754 internal capacities and the degree of the state of the art of the sector. Although digitization. Not all formulas are suitable it is true that in Spain there are examples for every headboard. In short, and as Donata of success, we have preferred to focus 3 Hopfen, editor-in-chief of Bild says ” ‘Every on the following areas analysis in the 2015 157,552 brand needs to find its own model’. international market. In this document, we have attempted AGGREGATION (B2C) to identify and categorize the different 2016 154.191 business models and their characteristics. In an increasingly fragmented information A business model may offer different ways ecosystem, healing and/or aggregation has Digital Circulation or modalities of income. For this reason, great potential value. Around these services Digital Advertising it sometimes happens that the business that have found in mobility their most Print Advertising model is confused with the payment propitious habitat, the possibility arises of Print Circulation modality or that in the nomenclature of different types of monetization, whether Source: WAN-IFRA from WPT, Zenith-Optimedia and the new hybrid models may fit several through micro-payments or subscription. PwC. 2017 2 As The Media Industry Evolves, The Business Model Becomes The Message. https://www.forbes.com/sites/ gregsatell/2016/01/31/as-the-media-industry-evolves-the-business-model-becomes-the-message/#52eb92c63ccd 3 Every brand needs to find its own model’ – BILD Group’s Donata Hopfen. https://blog.wan-ifra.org/2017/08/16/every-brand-needs-to-find-its-own-model-bild-groups-donata-hopfen DOSSIER. Searching for the business model 4 This is the case of Discors, an application companies with new technological Global newspaper revenue. that presents a subscribed news aggregation solutions such as the case of German 2012-2016 model that brings together contents from LaterPay, which offers a small variant, Audience The Economist, The Washington Post, allowing first a free access and later the 100,000 revenues $ 86 bn Foreign Policy, The Guardian and Bloomberg, payment. Among its customers in Europe 80,000 among others. With the aim of giving the most outstanding is Axel Springer, who readers access to different news sources the operates5 in the U.S. since 2016. Advertising 60,000 revenues service offers, for a monthly fee, a selection $ 68 bn of articles from each of these publications. However, micropayments have been less 40,000 Discors is presented as a middle way for successful than expected. Winnipeg Free those users who want to access several Press6, for example, has ended up using 20,000 different headers but don’t want to pay for a them not so much as a source of revenue 0 full subscription to each of them4. but as support for their paywall, allowing 2012 2013 2014 2015 2016 them to identify potential subscribers. Till Another example of aggregation model is the date, 10,000 people have used their Source: WAN-IFRA 2017 Blendle. An Dutch news platform –with micro-payments system, of which 15% have more than 250,000 users worldwide last become digital subscribers. year– that allows readers to pay per piece unitary. In addition, at the beginning of In Australia, a series of start-ups such as 2016 it launched Blendle Premium, initially Inkl and Tapview have emerged, offering only for the Netherlands. It is a service another payment option called ‘you-go’7. that offers users to read 20 stories per Which allows readers to either pay for day, which have been selected depending single pieces (usually 10 cents per piece) on their own interests. Regarding or a flat rate for unlimited access to all micropayments, there have also emerged the editors. According to company data, 4 Discors wants people to pay for news via a low-priced subscription that crosses multiple publishers www.niemanlab.org/2017/03/discors-wants-people-to-pay-for-news-via-a-low-priced-subscription-that-crosses- multiple-publishers/ 5 Europe micropayments Laterpay LaterPay brings its media payment technology to the US https://techcrunch.com/2017/08/10/laterpay-us-launch/ 6 In the hunt for reader revenue, publishers give micropayments another look https://digiday.com/media/hunt-reader-revenue-publishers-give-micropayments-another-look/ 7 Cheatsheet: The state of paying for news https://digiday.com/media/cheatsheet-state-paying-news/ DOSSIER. Searching for the business model 5 Inkl presents a conversion rate of 15% German Axel Springer with Upday. Also in of active users who pay monthly for the a format designed for mobile consumption, Usually these consumption of news, with an average its revenue comes from advertising. applications start out as reading rate of 50 pieces per month per initiatives of independent subscriber. For its launch in Europe, the application companies, outside the counted with the collaboration of Aggregation models should not rely Samsung, whose new devices have media world.
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