A business model is a plan elaborated by a company to make a business successful. It includes identifying sources of revenue, an audience analysis, details of finances, etc. There are different models to be applied to different businesses, not one is more successful than another, but rather a choice to fit the publisher’s image with different strengths to reach the desired audience [1].
Following a study conducted by “INNOVATION – Media Consulting Group”, the “Fundamental Premises” to keep in mind is that the focus of all media businesses is a cycle of sustainability, independence, credibility, audience, and revenues. Keeping these in mind, ‘each company must raise strategic questions to ensure that they do have competitive and differentiating advantages in at least one area’.
‘To establish a suitable business model, it is essential to answer the following questions:
- What are the consumer needs that I am satisfying?
- Who are the final consumers of my products/services? Is our client focus, B2B or B2C?
- How relevant and different is the content that we produce?
- How do we receive payment for our products and services? Is it direct or intermediated? How much is the consumer willing to pay for our products?
- How do we produce the content? Directly or through alliances and consolidation?
What other assets – tangible or intangible – can I take advantage of to generate new sources of income?’[2]
In the era of digitalization and the constant connectivity we live in, business models have had to adapt to new technologies and ways of approaching all the aforementioned elements that come into play. That is essentially what the event ‘Connectivity and Collaboration’ is about: finding new ways through which the publishing industry can adapt to the ever-changing world while keeping the essence of the industry.
In the article being cited next, Berman explains the way companies look to establish and adapt their business models integrating both the digital and physical elements that very closely shape the publishing industry [3]. ‘According to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration’ (Berman, S.J: 2012). ‘Companies focused on fully reshaping the operating model optimize all elements of the value chain around points of customer engagement’.
There are many business models we could mention such as subscription plans, crowdfunding, vertical, e-commerce, memberships, ad-focused, and branded events [4]. There are different lists of different models that can be used. But what is essential to understand is that customer interaction in certain areas leads to collaboration that accelerates innovation using online communities.
The concept of business model is still very broad and accepts many different strategies and analyses, which to adopt is crucial for the right display of a business’ best qualities.
By Helena Font Brillas
References:
[1] Veit, D., Clemons, E., Benlian, A. et al. Business Models. Bus Inf Syst Eng 6, 45–53 (2014). https://doi.org/10.1007/s12599-013-0308-y
[2] https://innovation.media/insights/11-business-models-for-publishers
[3] Berman, S.J. (2012), “Digital transformation: opportunities to create new business models”, Strategy & Leadership, Vol. 40 No. 2, pp. 16-24. https://doi.org/10.1108/10878571211209314
[5] https://digiday.com/media/digiday-research-changing-business-model-publishers-five-charts/