ePaper Business scenarios for digital newspapers on ePaper
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Transcript ePaper Business scenarios for digital newspapers on ePaper
The mobile digital newspaper
Business scenarios for ePaper devices
Leo Van Audenhove
Simon Delaere
Pieter Ballon
Michaël Van Bossuyt
Studies on Media, Information and Telecommunication (SMIT)
Institute for Broadband Technology (IBBT)
CONTENT
ePaper : Business Modeling
1.
E-paper project
2.
Business models
3.
Conclusions
4.
Lessons learned for the newspaper industry
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2 - E-paper project
ePaper : Business Modeling
Project goals
Generate generic knowledge about the potentials of
news content on a dedicated electronic reading
device
Iliad eReader based on eInk
Test some common hypotheses concerning success
factors in practice
eInk Technology
Ink carrying a charge which can be updated by
electronics
Paper-like high readable screen
Look of real paper
Ultra low power consumption
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2 - E-paper project - Partners involved
ePaper : Business Modeling
De Tijd
High brow newspaper focusing on business sector
Philips & iRex Technologies
Development of ePaper devices
iRex Technologies is a spin of company of Philips
Belgacom
Belgians incumbent telecom operator
Hypervision / Agency.com & iMerge
Two advertising agencies specialized in electronic
advertising
Flemish University Institutes
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4 - Business modeling
ePaper : Business Modeling
Research Question
What are possible business models for ePaper
devices in the newspaper industry?
BUT: technology broadens scope
Publishing industry - Print Media
Information industry
Starting point
Innovation in technology offers new business
opportunities
BUT: technology does not operate in vacuum
Technology and business models are shaped by the
business environment and actors involved
Complexity of innovation/product development is growing
Created in value networks
Often involving multiple actors
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4 - Business modeling framework
ePaper : Business Modeling
Strategic alignment
between all four dimensions required
in order to create
viable and sustainable
business models
Four main business modelling dimensions:
• Value network
• Financial model
• Functional arch.
• Value proposition
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4 - Business modeling - Roles
ePaper : Business Modeling
Roles in value network
Advertising & device suppliance
Place depends on business model
Service provision
Place depends on actor taking up this role
Related to who has contact with customer
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4 - Business modeling - Scenario development
ePaper : Business Modeling
Scenario method
Why: largely prospective research
Based on 2 basic uncertainties
Identified on the basis of:
Desk research
Interviews with actors involved
Interviews with actors in the Flemish Contexts
Basic Uncertainties
1. Aggregation versus disaggregation
Extent to which newspaper content is offered as an
editorial product
2. Open versus closed
Extent to which the device is open to content from
multiple players
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4 - Business modeling - Scenario development
ePaper : Business Modeling
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Newspaper-Model: Scenario Outline
ePaper : Business Modeling
One content aggregator offers service
Based on its own content e.g. Newspaper
Making use of new capabilities of technology
Regularly updating content
Offering information aimed at specific segments
Personalizing content
Integrating personalized advertising
Close to current ePaper project
De Tijd as leading newspaper
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Newspaper-Model: Value Network
ePaper : Business Modeling
Newspaper
Integrates content production, aggregation and platform
content aggregation
Device manufacturer
Keeps certain control through configuration device/software
components
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Newspaper-Model: Value Network
ePaper : Business Modeling
Service provision
Logical that newspaper will put service in market
Has a good customer relationship
Has content for which customers want to pay
Have certain market intelligence
Third party content
Content from the mother publishing house
Content from outside
Expected to be complementary
Direct competitors unlikely to support platform
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Newspaper-Model: SWOT
ePaper : Business Modeling
Strengths
Newspaper have good customer relationship
Newspapers have strong brands
Strong potential for market development
Easy monitoring of readers
Opportunities
Limited amount of players in value network
Rapid deployment possible
Weaknesses
Difficult to attract content from third parties
Under usage of technical potential
Might be far from user expectations
Threats
Boycott by other content providers
Smaller market for advertisers
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Newspaper model - Examples
ePaper : Business Modeling
Yantai Daily Media Group (China)
Offers since Oct 2006 all its newspaper
titles on the Iliad eReader
PCM Uitgevers (The Netherlands)
De Volkskrant, NRC Handelsblad, ...
End of May 2007
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Kiosk-Model: Scenario Outline
ePaper : Business Modeling
Intermediary offers integrated service
Access to aggregated content
National and international newspapers
Magazines, Comics
Books, etc.
From different content providers/aggregators
Analogy with newspaper stand
Newsstand, Zinio
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Kiosk-Model: Value Network
ePaper : Business Modeling
Intermediary plays important role
Integrates two markets 1) readers; 2) information providers
Causes network externalities, especially online
Advertising possible at two levels
Can cause friction
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Kiosk-Model: Value Network
ePaper : Business Modeling
Service Provision: two options
Through intermediary
Newspaper looses costumer relationship
In analogy with purchasing paper in newsstand
Intermediary (different from device supplier)
Will favor open standards
Will try to publish on different devices
Will be forced by content producers to protect content with DRM
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Kiosk-Model: SWOT
ePaper : Business Modeling
Strengths
Larger selection of content
One platform for all content
Newspaper retain editorial function
Weaknesses
New initiative so:
Higher start-up costs
Need for individual marketing and branding
Newspaper might loose costumer relation
Opportunities
New platform for digital news
One open standard
Threats
Conflict over revenue sharing
Conflict over advertising
Intermediary risks to become dominant
Intermediary shifts towards role of content
provision
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iTunes-Model: Scenario Outline
ePaper : Business Modeling
Intermediary offers integrated service
Access to disaggregated content
Single articles from national and international
newspapers, Magazines, etc.
Comics, Books, etc.
From different content providers/aggregators
Service only available on specific device
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iTunes-Model: Value Network
ePaper : Business Modeling
Intermediary plays central role
Integrates two markets 1) readers, 2) content providers
BUT ALSO device suppliance and service provision
Content on single platform and on only one type of device
Disaggregation of content
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iTunes-Model: Value Network
ePaper : Business Modeling
Service Provision (disaggregated content)
Through intermediary
Newspaper looses costumer relationship
Newspaper looses part of editorial function
Intermediary and device supplier same actor
Might favor proprietary standards
Will favor compatibility with own devices
Will be forced by content producers to protect content
with DRM
Intermediary might shift to content provisioning
E.g. audible
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iTunes-Model: SWOT
ePaper : Business Modeling
Strengths
Higher selection of content
Single platform for all content
Strong personalisation possible
Strong compatibility between service and
device possible
Might be in line with changing user
experience
Opportunities
New platform for digital news
Possible high market penetration of single
device
Weaknesses
New initiative, so:
Higher start-up costs
Need for individual marketing and branding
Newspaper looses costumer relation
Newspaper looses part editorial function
Threats
Conflict over standards possible
Conflict over revenue sharing possible
Conflict over advertising
Intermediary might become dominant
Intermediary might shift towards content
provisioning
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iTunes model - Example Sony Connect
ePaper : Business Modeling
Sony - e-Reader and website (http://ebooks.connect.com)
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Web-Model: Scenario Outline
ePaper : Business Modeling
Device as gateway to the web
User can access all content
Web, blogs, newssites, egov applications, etc.
Might be supported by push elements, e.g. RSS
User can upload own content
PDF, Word, etc.
Still possible to procure paid content
Using different open and proprietary standards
Costumer becomes aggregator in terms of own
selection
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Web-Model: Value Network
ePaper : Business Modeling
No integrated service concept
Device supplier central in scenario
But integrates no other central roles
Might control platform provision through software
Newspaper role more marginal
In competition with online content/information
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5 - Conclusions
ePaper : Business Modeling
Newspapers
Remain in a rather unique position as mass medium
Have strong costumer relations
Have shrinking market but willingness to pay
ePaper allows for more constant monitoring of
newsreaders
Believe in value of editorial function
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5 - Conclusions
ePaper : Business Modeling
For newspapers kiosk possible scenario
Most Flemish actors seem to prefer this scenario or
variant on it
BUT strong competition between large groups
iTunes model possible scenario for print & ebooks
BUT most online examples rely on long tail
Newspapers have short tails
Time and Uniqueness
Scenarios might co-exist
Could gradually shift from I to IV over time
Path dependency might be possible pitfall
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6 - Lessons learned
ePaper : Business Modeling
1.
2.
3.
High potential of the device vs. Importance of look ‘n feel
Positive on screen quality and size
But look ‘ feel of newspaper
48,9% of test panel would consider buying an eReader
(if fully operational)
Reading device (vs. All in One)
Old habits die hard
No change in reading pattern
Strong link with printed newspaper
Navigation
Content (trust, aggregator,...)
Representation
Substitution or complementarity?
In this stage, the device is not ready but it provides users
with some additional options (time, place)
Strong competitor for printed paper in the long term
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6 - Lessons learned
ePaper : Business Modeling
4. Control of the user: choice/complementary: AND &
AND story
Personalised & full
News of today (breaking news) &. News of yesterday
Payments: fee & free
5. Newspapers as aggregators
Brand as trustmodel
Offer
Certified, trusted & authentication
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Contact
ePaper : Business Modeling
Leo Van Audenhove
[email protected]
Simon Delaere
[email protected]
Pieter Ballon
[email protected]
Michaël Van Bossuyt
[email protected]
Websites
http://smit.vub.ac.be/
https://epaper.ibbt.be/
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