Paid for dailies VS Free dailies

Author

Andrew Li

Description

After 400 years of cover-price revenue model, free titles are surging into the paid-for market. Influenced by the pervasive expectation of the free news on the internet, newspaper readers have high expectation of free newspapers. But some enterprises argue that cover prices must be maximized, increase in prices will not always result in a parallel drop in sales, and therefore the overall revenue will increase. And some also argue that high cover price stand for high value. It is worth for customers to pay the price. Which business model will be the next standard for the newspaper industry?

Paradigms

“Technical innovations will change the future of newspapers. Computers and mobile handsets double their capacity every nine months. This allows media companies to continuously introduce new and improved services. New technical innovations and improvements also drive change in human behaviour. Today, teens must be connected to their friends at all times. Their technical devices become part of their personal identity. As a result, teens carry a potential distribution channel for news and entertainment with them at all times.” Stig Eide Sivertsen

Web Resource

http://www.wan-press.org/IMG/pdf/Pages_de_SFN5.6Pricing_light.pdf
http://www.wan-press.org/IMG/pdf/executiveSFN_6.1.pdf

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