Business Models for Content Delivery: An Empirical Analysis of the Newspaper and Magazine Industry

Abstract

Although there have been efforts to define, describe, and classify business models, current literature does not provide a structured method of comparing business models between companies within or between industries. This article outlines a conceptual business model and proposes 5 components that a business model for content delivery should include: the product, the consumer, the revenue, the price, and the delivery. By using the newspaper and magazine industry as an example, we empirically test the impact of these 5 components on profit. Furthermore, we address 2 key issues content providers are confronted with when selling digital content: First, how much of the digital content is available free or at cost, and second, is the digital product as complementary or a substitute to the physical product. Finally, we assess the risk of cannibalizing the physical product with the digital one by a multiple regression analysis.