MaxxoMedia Digital Media and Entertainment Trends » Business model http://www.maxxomedia.com/blog Tracking the ever changing tides of digital media Sun, 09 Oct 2011 21:51:48 +0000 en hourly 1 http://wordpress.org/?v=3.1.3 Newspapers Are Struggling http://www.maxxomedia.com/blog/newspapers-are-struggling/ http://www.maxxomedia.com/blog/newspapers-are-struggling/#comments Fri, 15 Jan 2010 20:15:46 +0000 Mark Levy http://www.maxxomedia.com/blog/?p=586
SAN FRANCISCO - OCTOBER 30: Newspapers are se...

Image by Getty Images via Daylife

2009 saw a few newspapers change their business model to an online focus or shut down completely. 2010 will most likely see the same struggle and, perhaps, new business models emerge for these media entities. One thing is clear, the era of Americans reading a daily newspaper each and every day is coming to an end. Just two in five U.S. adults (43%) say they read a daily newspaper, either online or in print almost every day. Just over seven in ten Americans (72%) say they read one at least once a week while 81% read a daily newspaper at least once a month. One in ten adults (10%) say they never read a daily newspaper, according to a new Harris Poll survey.

One reason for the dying of the daily newspaper is the graying of the daily readership. Almost two-thirds of those aged 55 and older (64%) say they still read a daily newspaper almost every day. The younger one is, however, the less often they read newspapers. Just over two in five of those aged 45-54 (44%) read a paper almost every day as do 36% of those aged 35-44. But less than one quarter of those aged 18-34 (23%) say they read a newspaper almost every day while 17% in this age group say they never read a daily newspaper.

One potential business model that newspapers are exploring is charging a monthly fee to read a daily newspaper’s content online. This model, however, seems unlikely to work as three-quarters of online adults (77%) say they would not be willing to pay anything to read a newspaper’s content online. While some are willing to pay, one in five online adults (19%) would only pay between $1 and $10 a month for this online content and only 5% would pay more than $10 a month.
There is a slight regional difference in who would pay for online content. Over four in five online adults in the Northeast (81%) say they would not be willing to pay anything to read a daily newspaper’s content online. Those across the country, however, are more willing. While seven in ten Westerners (71%) still say they would not pay, almost one-quarter (24%) of Westerners would pay between $1 and $10 a month to read a paper’s content online.
The struggles of the daily newspaper will continue as Americans have more and more ways to find the news content they need and want. The challenge for newspapers will be discovering a way to get their content to people and make money doing so. One area they were intently exploring was charging for online content, though it appears they need to find another way.

2009 saw a few newspapers change their business model to an online focus or shut down completely. 2010 will most likely see the same struggle and, perhaps, new business models emerge for these media entities. One thing is clear, the era of Americans reading a daily newspaper each and every day is coming to an end. Just two in five U.S. adults (43%) say they read a daily newspaper, either online or in print almost every day. Just over seven in ten Americans (72%) say they read one at least once a week while 81% read a daily newspaper at least once a month. One in ten adults (10%) say they never read a daily newspaper, according to a new Harris Poll survey.

One reason for the dying of the daily newspaper is the graying of the daily readership. Almost two-thirds of those aged 55 and older (64%) say they still read a daily newspaper almost every day. The younger one is, however, the less often they read newspapers. Just over two in five of those aged 45-54 (44%) read a paper almost every day as do 36% of those aged 35-44. But less than one quarter of those aged 18-34 (23%) say they read a newspaper almost every day while 17% in this age group say they never read a daily newspaper.

One potential business model that newspapers are exploring is charging a monthly fee to read a daily newspaper’s content online. This model, however, seems unlikely to work as three-quarters of online adults (77%) say they would not be willing to pay anything to read a newspaper’s content online. While some are willing to pay, one in five online adults (19%) would only pay between $1 and $10 a month for this online content and only 5% would pay more than $10 a month.

There is a slight regional difference in who would pay for online content. Over four in five online adults in the Northeast (81%) say they would not be willing to pay anything to read a daily newspaper’s content online. Those across the country, however, are more willing. While seven in ten Westerners (71%) still say they would not pay, almost one-quarter (24%) of Westerners would pay between $1 and $10 a month to read a paper’s content online.

The struggles of the daily newspaper will continue as Americans have more and more ways to find the news content they need and want. The challenge for newspapers will be discovering a way to get their content to people and make money doing so. One area they were intently exploring was charging for online content, though it appears they need to find another way.

via Kenradio.com

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]]> http://www.maxxomedia.com/blog/newspapers-are-struggling/feed/ 0 How Publishers Are Preparing for the Digital Market http://www.maxxomedia.com/blog/how-publishers-are-preparing-for-the-digital-market/ http://www.maxxomedia.com/blog/how-publishers-are-preparing-for-the-digital-market/#comments Tue, 15 Dec 2009 00:15:11 +0000 Mark Levy http://www.maxxomedia.com/blog/?p=555
SAN FRANCISCO - OCTOBER 26: Newspapers are di...

Image by Getty Images via Daylife

70% of publishers are paying more attention to the mobile market this year than last. And 20% are giving it their same attention. Print publishers are focusing on the market as a prime opportunity to expand their brands, reach new audiences and generate additional revenue while offering advertisers the chance to reach locally targeted, engaged audiences. Publishers recognize the growing importance of mobile devices in consumers' daily lives and are actively embracing mobile, according to a study by Audit Bureau of Circulations.

Some Survey Highlights

* More than 80% of newspaper and magazine respondents believe people will rely more heavily on mobile devices as a primary information source in the next three years

* Nearly 70% of respondents agree that mobile is receiving more attention at their publication this year than last. More than a third believe their publication already has a well-developed plan for attacking and conquering the mobile market

* 44% of respondents who track mobile's impact on their Web site traffic said the devices increased visits by up to 10% today. Half believe mobile traffic to their Web sites will increase by five to 25% in the next two years

Additional findings of the survey:

* 56% of senior said their publication has plans to develop a smartphone application in the next 24 months, in addition to the 17% already have an app in production.

* While 55% believe that digital delivery of their publication is important to their strategic future, 75% believe that their publication will be available in a print form five years from now.

* More than half of the survey respondents believe that the future business model of mobile content will be supported by both advertising and subscriptions.

* Nearly a third believe that mobile will have a significant impact on their publication's revenue in just three years.

With text and multimedia messaging, branded mobile apps, content sponsorships, display advertising, paid search, and location-based targeting, the platform becomes an integral component of the overall marketing strategy.

Survey Conclusions:

* It's early, but there are positive signs, the mobile market is definitely receiving more attention than ever before

* Mobile will drive Web traffic. Most respondents believe that mobile will be responsible for a five to 50% increase in Web site traffic in the next three years.

* Publishers are betting on both smartphones and e-readers and are actively exploring the vitality of both as a new distribution channel.

* Early business models will be based on a combination of advertising and subscriptions. Publishers agree that the mobile market will be both ad- and subscription-supported

Respondents agree that independent third-party auditing would increase mobile's credibility and is likely to be demanded by advertisers as ad spending increases in this area

via KenRadio – World Technology Roundup – Daily Technology News on High Tech Industry – How Publishers Are Preparing for the Digital Market.

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