Media business model challenges

21/05 - 14:30
Key drivers of EU media businesses; media business model challenges by Pasi Malinen

Pasi takes us along his views: From traditional to new ways of organizing things, from technology development to customer focus, from value chains to value networks, from large corporation ideology to entrepreneurial ideology and networking. The End-user focus in current R&D&T

Latest trend is mainly based on the Long Tail principles: Fragmented audiences, communities are not just developing technologies but doing things for the end-user.

A business model: How to organize the business so that we will make money?
No one size fits all, it all depends on the context. 
Various “new” business models as we can list them today:

  • The subscription business model
  • Razor and blades/bait and hook business model (cheap razor, expensive blades)
  • The pyramid scheme business model
  • The multi-level marketing business model
  • The network effects business model: “everybody has one”
  • The cutting out the middle men business model: DELL was one of the first, sold computers directly to the end customers
  • The auction business model
  • The online auction business model
  • The bricks and clicks business model: you sell something on-line as well as have a shop
  • The loyalty business model
  • The collective business model: collecting different kind of companies under the same roof
  • The industrialisation of services business model 
  • The servitisation of products business model: if you sell products, you try to bundle it with services
  • The low-cost carrier business model: RyanAir: 1 $ per flight, gambling on-board (revenues from gambling)
  • The online content business model
  • The freemium business model
  • The premium business model
  • The direct sales business model
  • The professional open source business model
  • The various distribution channels business model
  • Internet-based business models: Brokerage, advertising, infomediary, merchant, manufacturer (direct), affiliate, community, subscription, utility…

 

Pasi’s conclusions:

  • The one who has the customers/end-users make the money (YouTube)
  • Open innovation ideology: How to get the customers in the development process (it’s hard because they have a completely different mindset)
  • Communities and content are important (peer-to-peer etc.)
  • No “one size fits all”
  • Do not necessarily follow traditional business models, use multiple models
  • Be flexible, seek dynamic business models
  • Don’t stick to the old business model, try to find new ones, use various revenue earning logics

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