Who says paper is dead? Business model innovation in the media industry

Dr. Patrick Stähler | 1

„ „ „ „ Who says paper is dead? ““““


8 theseson the transformation of the

MEDIA INDUSTRY


thesis1. Tradition is not a

business model

Quelle: http://internet-manifest.de/


The deep fall of the music (media) industry


„ „ „ „ Remember the times! How emotional were the LPs’ covers!““““

The bigger the capacity became, the less emotion was attached to the medium itself, ….…


45 min 74 min

1000 min

Schallplatte Musik CD iPod Shuffle

…and the worse did the record industry perform.

41 40 4037

34 35 3332

30

0

10

20

30

40

1999 2000 2001 2002 2003 2004 2005 2006 2007

Sales record industry worldwidein bn $ (1999-2007)


Always the others, in particular their best customers were guilty for the drastic decline


The industry responed with MOTS or More-of-the-Same. More records and fighting the customers


Innovativ business model came from the outside



New customers needs emerge: That‘s how my harddrive looks like


The case of the daily newspaper


A little quizA little quizA little quizA little quiz

What is this?What is this?What is this?What is this?

10.000 mio. USD classified market is evapurated by Craigslist with just sales of 100 Mio.

100 Mio. USDturnover Craigslist

10.000 Mio. USDdecline in classifieds

2000-2008

Dr. Patrick Stähler | 14Source: http://mediamemo.allthingsd.com/20090610/another-way-to-describe-the-newspaper-crisis-the-craigslist-boom/


„ „ „ „ Tell me the difference.““““


„ „ „ „ The Online version is everything what the print is plus a lot more multimedia content plus interactivity plus blogs.““““


„ „ „ „ But did the revenuesources follow youonline?““““


„ „ „ „ The subscribers turned their back on you. As did the classifieds :-(““““


„ „ „ „ Not really your day, dear media industry. Both of your business models are dated. Sorry!““““


thesis2. There is no such thing as

a media industry. Every industry is special and faces different challenges


„ „ „ „ What is a newspaper?* ““““

*from a business point


„ „ „ „ I buy a newspaper for news, comments and background stories!““““


„ „ „ „ With the WSJ I can reach 30% of the decision makers! ““““


„ „ „ „ I buy the paper since I am looking for a job.““““


thesis3. Traditional print is not

one business model but three, kept together by paper


thesis4. The 1-to-1 transfer of the

print business model on the web does not work


„ „ „ „ How can I react to the changes? ““““


„ „ „ „ Who says paper is dead? ““““


„ „ „ „ Who says print is dead? ““““


„ „ „ „ Print is not dead. Important is the right innovative business model like of The Economist!““““


Quelle: flickr.com/photos/marcelgermain/2272162061

„ „ „ „ Paper is in many aspects a much better carrier medium than online. Why don‘t we design business models that use these advantages!““““


thesis5. The medium shapes the

message. Understand the ideosyncracies of each media


„ „ „ „ We have all the figures about our readers!““““


thesis6. Start with customer

insights. Which job do you solve for your customer?


„ „ „ „ Greatest innovation in newspapers in the last 20 years: The „commuters“ free papers!““““


thesis7. Every medium needs a

business models that builds on the medium‘s strengths and that solves a job for the customer


thesis8. Only business model

innovation in print ANDonline will allow the publishers to survive. Tradition is NOT a business model!

„ Remember. Business model innovation needs courage!“


Be BRAVE,really.

YES, you can!


How shall I start?

UNDERSTAND YOUR BUSINESS

BUSINESS MODEL CANVASby using the

Value architecture Value Proposition/ customer

Revenue model

distribution architecture

core capabilities partner

value chain

offer

value proposition

customers

sources of revenuecost structure

What business are we in? Our business model

� What is our offering? � How do we reach our customers?

� What are our value creating steps?

� What is our value chain?

� What are the core capabilities we need?

� Which partners do we need?

activity 1 activity 2 activity 3 activity 4 customer activity

� What value do we create for our customers?

� What value do we create for our partners?

� Who are our customers?

� What job do we solve for our customers?

� Cost structure is defined by the value architecture

� With what do we earn money?

culture/ values relationship styleleadership style values

� What leadership style do we have?

� How do we interact with each other and the customer?

� What values do we pursue?

More information atMore information atMore information atMore information athttp://blog.businesshttp://blog.businesshttp://blog.businesshttp://blog.business----modelmodelmodelmodel----innovation.cominnovation.cominnovation.cominnovation.com

Dr. oec. Patrick Stählerfluidminds [email protected]

Who says paper is dead? Business model innovation in the media industry

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