1. Successful ‘New Media’ Business Models
Case studies of independent commercial print media in SA
By Kevin Bloom & Johanna Mavhungu
Adiel Ismail, PDMM 2011

2. The Study
The aim of this research is to identify a successful ‘new media’ business model in SA.
The crux of this study is about understanding how three independent commercial newspapers are responding to the online revolution
The newspapers studied are: The Times The Daily Dispatch & The Mail & Guardian

3. The Times The Times was launched in 2007
Is the sister publication to the Sunday Times
Its approach is to blur the line between print & electronic media
Carries news on politics, business & sport - 20 minutes
Times website - blogs, podcasts & videos

4. Daily Dispatch
Daily Dispatch was founded in 1872 as East London Dispatch
Biggest selling daily newspaper in Eastern Cape
Publishes a supplement in Xhosa
Focus on local news, sports & business
Daily Dispatch Online and an e-Edition (mobile)

5. Mail & Guardian Formerly the Weekly Mail was established in 1985
Focus on politics, government & business
Investigative news
1st newspaper to launch a website in SA & Africa in 1994
M&G Online publishes local, international and African hard news

6. The Online Super Highway
Countless global studies have documented that as a result of new technologies, several hundreds of thousands of readers are opting to consume news on the WWW.
The implication of digital migration of traditional mass media has placed the business of print media in a precarious situation because of a decline in advertising revenue.
As a result, Ad-spend has moved online because it is cheaper, jobs have been cut and newspapers have closed shop.

7. The Online Super Highway
The Times - Avusa recorded a 6%+ in revenue - ABC figures showed a 3.3%+ in circulation
Daily Dispatch - Reported a 5.5%- in circulation - Annual revenue remained steady at around R110 million
Mail & Guardian - Online budget for capital, training & staff increased - ABC figures showed the biggest growth in the weekly newspaper category

8. The Walled Garden
In August 2009, media mogul Rupert Murdock announced that his news empire intended to place its online entities behind payment gateways.
South African news websites also decided to follow this trend.

9. Emergent Business Model at The Times
TT has no plans to set up an online payment gateway
Advertising would remain its primary source of income
Ray Hartley - hypothetically, they would charge for content that is aggregated

10. Emergent Business Model at M&G
Nic Dawes - 'New models around old advertising' 1. Enabling advertisers to brand whole sections 2. 'Clever' rich media advertising
Charging users for content
Increase multi-media content
It must increase original content on a daily basis
Platform for interaction
Charges should be shifted from the user to the service provider

11. Emergent Business Model at Daily Dispatch
Charge for content as a revenue stream
Andrew Trench - monthly fee direct to the users
90% of its content is local and not available elsewhere
70% of its readers indicated that they are willing to pay between R38-40 monthly

12. The Times
Daily Dispatch
Mail & Guardian
Frequency
Daily
Weekly
Format
Tabloid
Broadsheet
Ownership
Avusa
M&G Media
Type
National
Regional
Website x
Revenue Model
Advertising
Walled Garden
- end users
- service providers
e-Edition
Mobi-site
Kindle
Newsroom Convergence
Integrated
Independent

13. What Can We Learn?
SA newsrooms are under the same pressure as their international counterparts
It is vital to distribute content on various platforms
New business models need to be formulated
Walled garden - 'paid-for' content is popular
Original vs commoditised content
Reporters need to be platform-agnostic

14. Thank You
Adiel Ismail PDMM 2011