In: Economics
. Do you think the business models of daily newspapers are viable in the long run? What are the most significant threats to this currently successful business model? Considering the environmental trends, If you were the owner of a daily newspaper in a major Indian, what would your strategy for future be? Elaborate in detail
business model of daily newspapers relies on advertisements that are published in the newspapers . But, these advertisements are increasingly opting for the digital marketing channels. It can strongly negatively impact the revenues of these daily newspapers in the long run. Hence, I do not think that these business model of these newspapers in its present form, are viable in the long run.
The first most significant threat is the advertisements moving to opt for the digital and internet based platforms. It has shrinked the revenues, being collected by these newspapers. The second threat is the shrinking target audience base as new generation people are more inclined towards online news portals. So, these news portals are going to be a threat for existing successful model. The third threat is the digital marketing helping people reach out to different parts of the world, but reach of the daily newspaper is very limited.
My strategy for the future will be to start online news portals, offering free subscription to the digital version of the news papers. It will create new audiences who wants to read newspaper on mobile, laptop or other mobile devices. At the same time, advertisements will also stay with the newspaper as their ads are now shown in digital versions also. Besides, existing customers will also be retained as they are getting value added services in the form of digitized news without paying extra.
The second strategy will be to increase traffic and collaborate with Google to get Google AdSense program so that Google Ads are published on my website. It will create the new revenue stream for the news paper company, using online platform. The third strategy will be to come up my own ad space for those who want to show ads on my website, rather than on newspapers. It will create a third stream of revenue that will protect the losses if any to the revenue from daily newspaper.
So, above set of strategies, will work well to increase the revenue level and transform the business.