1. The third IFIP I3E Conference September 21-24, 2003 WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector Cornelia C. Krueger Paula M.C. Swatman

2. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Introduction  Content providers struggle to find adequate revenue  They are struggling to survive because of declining subscriber numbers, falling advertising revenue A fickle and highly-critical public  Most newspapers initially went online with a business model very like their real-world model  We suggest a continuum of business model types for content provision ranging from pure content provision to an extension beyond content to the provision of technology

3. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 The content market value chain Research into eBusiness models:  Timmers (1998), Schuster and Weiss (2001): “Value chain de- and reconstruction”  Rappa (2002): „Company identifies its place in the value chain“  Picard (2000): „Business model includes the concept of the value chain“  Parolini (1999), Loss and Scheer (2002) „Value networks“  Woessner (2001): „eBusiness value chain“

4. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Comparison of business models of content providers AuthorsCatchwordValue ChainCritical Success FactorsSources of Revenue BartussekNewsfilterProducer and Intermediary - Identify and serve customers’ needs; - Traditional strengths; - New income resources Selling product Advertising Farhoomand/ Lovelock Content ProviderIntermediarySubscription fees NiewiarraContent NetworkNetworkNetworksRevenue sharing RayportContent BusinessNetworkRevenue sharing between content provider and online service Revenue sharing Weill/VitaleContent ProviderProducerBranding; Recognised as best in class; Network Fees from third parties or allies WirtzE-InformationIntermediaryDifferentiationPay per transaction; Subscription

5. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Research approach  Is there a single definition of the term “content provider”, or can a content provider enlarge its business model according to its needs – especially as the Internet itself evolves?  How do content providers develop their business models?  How do content providers position their company in the content value chain?

6. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Cases  Interviews with several stakeholders in the online news market: ddp RZ-Online FAZ.net Publico.pt  Analysis of Web sites of a number of newspapers and magazines: The Wall Street Journal the New York Times Il Corriere della Sera El Pais  Analysis of Web sites of some of a new type of content provider: Newsstand Tecnavia In a Daily

7. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Findings from the cases CONTENT PROVIDER IN THE NARROW SENSE Creator CreatorBuyer CreatorBuyerRefinement/Value CreatorBuyerRefinement/Value Technology Provider CONTENT PROVIDER IN THE BROADER SENSE Taxonomy of Internet Content Providers

8. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Content creator – Content creator and buyer Content creator:  concentrate on producing content  E.g. big news agencies or journalists Content creator and buyer:  create and buy content to sell through their Web presence  E.g. smaller news agencies which create, for example, national, business and cultural news but have to buy sports news

9. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Content creator, buyer and value adder  creating, buying and adopting content for their customers  create some of their content in-house, buy specialist material to round out their offerings  cooperates with companies which supply Internet access or application services  E.g. portals, most newspapers and magazines (Publico.pt or the Wallstreet Journal).

10. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Content creator, buyer, value adder and technology provider  purchasing technological infrastructure, finding a technology partner or technology provider themselves  or offer their technology platform to other newspapers and magazines worldwide  The NYT has developed a highly successful new business model out of technology - Newsstand

11. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Newsstand Source: http://www.newsstand.com

12. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Effect of technological extension Advantages for the content providerAdvantages for the customer Independence of Internet providersCustomer can be mobile Customer Data of high qualityCustomer doesn’t have to be online Customised/personalised offersCustomer only needs one software for different content providers Network => greater potential customer base Customer chooses his/her own offer Technological platform can become a portal

13. WHO ARE THE INTERNET CONTENT PROVIDERS? Identifying a realistic taxonomy of content providers in the online news sector SimWeb www.simproject.de The third IFIP I3E Conference September 21-24, 2003 Conclusions Two promising types of Internet business models for content providers: 1.creation, acquisition, value-adding and digital distribution of content software platform => network effect 2.concentration on core competence, and right partners to support this strategy