1 A COMPARATIVE STUDY OF THE BUSINESS MODELS OF TRADITIONAL AND INTERNET-BASED NEWSPAPER FIRMS IN NIGERIA AND CANADA A Ph.D THESIS SUBMITTED TO THE DEPARTMENT OF MASS COMMUNICATION, UNIVERSITY OF NIGERIA, NSUKKA OKOROM, EMMANUEL MORGAN PG/Ph.D./11/58531 JULY 2018 i TITLE PAGE A COMPARATIVE STUDY OF THE BUSINESS MODELS OF TRADITIONAL AND INTERNET-BASED NEWSPAPER FIRMS IN NIGERIA AND CANADA OKOROM, EMMANUEL MORGAN PG/Ph.D/11/58531 A THESIS INTERNAL DEFENCE PRESENTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF A DOCTOR OF PHILOSOPHY DEGREE (PhD) IN MASS COMMUNICATION, DEPARTMENT OF MASS COMMUNICATION, UNIVERSITY OF NIGERIA, NSUKKA SUPERVISOR: PROFESSOR NNANYELUGO M. OKORO JULY 2018 ii AUTHOR’S DECLARATION I declare that this work was carried out in accordance with the regulations of the University of Nigeria, Nsukka, and is original except where indicated by the specific references in the text. No part of this thesis has been submitted as part of an academic award. The thesis has not been presented to any other educational institution in Nigeria or overseas. All views expressed in this thesis are those of the author and does not represent those of the University. Signed ………………………… Date …………………… iii CERTIFICATION This thesis: ―A Comparative Study of the Business Models of Traditional and Internet-Based Newspaper Firms in Nigeria and Canada,‖ by Okorom, Emmanuel Morgan (Reg. No: PG/Ph.D/11/58531) meets the regulations governing the award of the degree of Doctor of Philosophy (PhD) (Mass Communication) of the University of Nigeria and it is approved for its contribution to knowledge. It is certified that this work is an original work by the author (Okorom, Emmanuel Morgan) and has not been published elsewhere. _________________________ _______________ Professor Nnanyelugo M. Okoro Date Supervisor _________________________ _______________ Dr. Ifeanyi L. Anorue Date Head of Department _________________________ _______________ Prof. Christian Onyeji Date Dean, Faculty of Arts _________________________ _______________ Prof (Mrs) Osadebe Date Dean, School of Post Graduate Studies _________________________ _______________ Examiner Date iv DEDICATION This work is dedicated to the memory my parents, late Chief Faustine Okorom, (F.O.) who spoke to me from heaven concerning this project and my dearest mother, late Mrs Cyrina Adanma Okorom, who believed in me. v ACKNOWLEDGEMENTS Undertaking a project of this magnitude and steering it to a successful conclusion, despite seemingly insurmountable odds, certainly require divine assistance and direction. Therefore, I thank God Almighty for the strength, love, direction and resources made available to me through his grace. Specifically, I appreciate my God for journey mercies for the countless times I flew from Canada to Nigeria, beginning from my coursework to the end of this programme. I owe a debt of gratitude to my supervisor, Professor Nnanyelugo Okoro, for his dedication, wisdom and direction throughout the duration of this study. I thank all the lecturers at the Department of Mass Communications, University of Nigeria, Nsukka who offered very constructive criticisms to my work. Specifically, I thank the former head of the department of Mass communication, Dr Greg Ezeah and the current head of Department, Dr Anorue, who both contributed immensely to the success of this project. I thank all my field assistants, both in Nigeria and Canada, especially Andrew Ngene, Jeff Halliday and Perfecta Clark, who helped in the distribution and recovery of the survey documents and the coordination of the interviews. I am indebted to my friend and classmate, Dr Christian Odoemelam, who proofread every line of my work and offered invaluable advice and direction throughout the period of my study. I will like to acknowledge the support and assistance offered by my friend and former roommate at Nkrumah Hall, Professor Uchenna Anyanwu, who insisted that I complete this programme. I recognize, with joy and thanksgiving, the love, support and encouragement given by my friends and brothers especially Professor Patrick Egbule, Chief (Barrister) Marcel Onuoha and my erudite friend and poet, Christopher Nwachukwu. This project would not have been consummated without the support of my wife, soulmate, confidante and greatest strength, Ifeoma Anelechi Okorom, who made so much sacrifice to encourage me. I would not have done it without you. I thank God for my children Mela, Obi, Dera and Ada especially Mela (my pumpkin) and Obi (Obidaddy) who would never comprehend why daddy is holed up in the study all day and would not play with them. I sincerely thank God for my immediate and wonderful family: Ralph and family, Chudy and family, Don and family, Robert, Lilian, Faustina, Dora, Caro, Ngo, Mary, Martha and Elizabeth. I say thank you all for the support, love and prayers. OKOROM, EMMANUEL MORGAN Department of Mass Communication University of Nigeria, Nsukka. July 2018 vi TABLE OF CONTENTS Title page i Author‘s declaration ii Certification iii Dedication iv Acknowledgements v Table of Contents vi List of Figures ix List of Tables xi Abstract xii CHAPTER ONE: INTRODUCTION 1.1 Background of the study 1 1.2 Statement of the Problem 5 1.3 Objectives of the Study 6 1.4 Research Questions 6 1.5 Research Hypotheses 7 1.6 Significance of the Study 8 1.7 Scope of the Study 8 1.8 Operational Definition of Terms References CHAPTER TWO: LITERATURE REVIEW 2.0 Focus of the Review 13 2.1.1 Historical overview of technological disruption in the newspaper industry 14 2.1.2. The concept of Disruptive Innovation. 17 2.1.3. Drivers of disruption in the newspaper industry. 19 2.1.4. Disruptive innovation and business matrix. 21 2.1.5. Disruptive technology in the Nigerian newspaper industry. 23 vii 2.1.6. Disruptive technology and Canada‘s media landscape 23 2.1.7. Re-inventing the business models for newspapers in Nigeria and Canada 27 2.1.8. Measures introduced by Nigerian Newspapers to survive the disruption 33 2.9. Comparing Nigeria and Canada‘s newspaper ecosystems 38 2.2 Theoretical Framework 40 References CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Research Design 46 3.2 Population of the Study 47 3.3 Sample size determination 49 3.4.1 Sampling Technique 50 3.4.2 Sampling of Journalist in Canada 51 3.5 Description of Instruments for data collection 52 3.6 Validity of research instruments 57 3.7 Reliability of Research Instruments. 57 3.7.1 Reliability of Instrument (Questionnaire) 54 3.8 Method of data presentation and analysis 55 References CHAPTER FOUR: DATA ANALYSIS AND PRESNTATION 4.0 Analysis of quantitative data from survey (Questionnaire) 57 4.1 Data Analysis 57 4.2 Psychographic characteristics of respondents 61 4.3 Analysis of Qualitative data 90 4.4.1. Research question 1 100 4.4 Discussion of Findings 100 4.4.2. Research question 2 102 4.4.3. Research question 3 104 4.4.4. Research question 4 107 4.5 Summary of Findings 108 References viii CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 Summary 112 5.2 Conclusion 112 5.3 Recommendations 113 Bibliography 115 Appendix 1 122 Appendix 2 125 ix LIST OF FIGURES Figure 1: Sex of respondents 57 Figure 2: Age of respondents 58 Figure 3: Respondents‘ marital status 59 Figure 4: Respondents‘ educational qualifications 60 Figure 5: Respondents‘ knowledge of Business Model 61 Figure 6: Main Source of Revenue of Traditional Newspapers 62 Figure 7: Business Model of Newspaper Industries 63 Figure 8: Reasons why Newspaper Business Model is damaged 64 Figure 9: Whether newspapers Business models differ from others 65 Figure 10: Illustrating Impact of IT Business Model of Newspaper Production 66 Figure 11: Reason for the impact of IT on newspaper organizations 67 Figure 12: Whether media techs have Cannibalized Newspaper Business Model 68 Figure 13: Whether New media technologies have Better Business Formula 69 Figure 14: Whether news online should be Free 70 Figure 15: Factors Leading to Breakdown of Newspaper Business Model 71 Figure 16: Whether Respondents have ever paid For News 72 Figure 17: Whether business models of Internet based newspaper firms affect Traditional newspapers 73 Figure 18: Illustrating Whether Internet based online news and newspaper industry operate different business models 74 Figure 19: Illustrating How Internet based news firms Differ from conventional newspaper industry 75 Figure 20: Illustrating Whether Conventional newspapers can reinvent old business models to survive 76 Figure 21: Whether there are Business Model Options available to traditional newspaper industry 77 Figure 22: Suggested Business Model options available to Traditional Newspaper industry-78 Figure: 23 Illustrating Whether there are Better Revenue generating formula for newspaper industries 79 Figure 24: Illustrating Preferable Formats for Future Newspaper publishing 80 Figure 25: Whether there are possibilities for newspaper industries to overcome current business model crises 81 Figure 26: Illustrating Suggested options for overcoming current business model crises in Newspaper industry 86 Figure 27: Illustrating whether newspaper industries have potentials to respond to Disruptors 27 Figure 28: Illustrating How the Newspaper Industry can respond to Business Disruptors 84 x LIST OF TABLES Table 1: Distribution of Respondents‘ Sex 57 Table 2: Distribution of Respondents‘ Age 58 Table 3: Respondents‘ Marital status 59 Table 4: Respondents‘ Educational Qualifications 60 Table 5: Respondents‘ knowledge of Business Model 61 Table 6: Main Source of Revenue Traditional Newspapers