Creating business models for digital news platforms

These are interesting times. Newsweek is turning into an exclusively digital publication, while half of Forbes’s revenue is to come from its online presence. This confirms that “digital first” operations are starting to drive new business models at news organisations.

It is not just limited to the US. Germany’s largest newspaper publisher said it will introduce a paywall for the Die Welt newspaper by the end of the year and could be followed by the competition.

In an interview with Reuters, Axel Springer’s chief executive Mathias Doepfner said: “The golden era for the newspaper business is over, but the silver era could also end up being quite good. Our view is that we’re not defending print journalism, rather we’re defending newspaper-style journalism.

“That will survive, I’m convinced about that. I believe newspapers will live a lot longer than many people believe.”

Competitions between publishers are so serious that even now there is no solidarity between them. Shouldn’t [it] be easier if all publishers start to introduce the paywall together creating the culture of paying for online content?

An instance of this was demonstrated in Brazil last week. The leading Brazilian newspapers abandoned the Google News service after the search engine denied them any financial compensation for the right to use their headlines. The National Association of Newspapers directed its members to leave the service.

The recommendation was followed by 154 newspapers and accounted for over 90 per cent of newspaper circulation in Brazil. Google argues that there is no need for any payment for the use of headlines because this benefits the newspapers to access a larger mass of users.

Somebody once said: “Information wants to be free”. This has been the internet motto.

The introduction of online payment is still new, but it is important to introduce the culture and educate subscribers.

There is a need to simplify the payment process, invest in the security of online transactions and provide for special consumer rights.

BRIEFS

Tech innovators plump for Obama

Which US presidential candidate would be better at promoting technological innovation? Entrepreneurs and innovators in a new ad make a case for Barack Obama. The ad features Craigslist’s Craig Newmark, Dropbox’s Drew Houston and LinkedIn’s Reid Hoffman explaining why they’re supporting Obama.

“I support Obama because I’ve personally seen how much he cares about innovation and how much he cares about constructing the kind of future that we all want to have,” says Hoffman.

(Source: Mashable)

Angry Birds invade China

Angry birds have invaded China by way of McDonald’s. A special location-based campaign created by TBWA Shanghai in collaboration with Rovio allows players who visit McDonald’s to unlock special hidden game modes and get free Power-Ups. Bravo Finland — once you sold tyres all over the world, then cutting edge mobile phones, and now you’re the king of smart-phone games.