Newspapers are facing a predicament as they transition to digital formats. The print industry’s revenue is on a downward spiral, with advertising dropping 63% in the past decade. The digital realm isn’t providing the expected financial relief either, with online ads contributing only 29% of total ad revenue in 2015. Newspapers are struggling to find a profitable business model amidst the digital revolution.
The ‘digital-first’ strategy adopted by many newspapers, prioritising online content over print, is not proving as successful as hoped. The New York Times, despite having over a million digital subscribers, is still reliant on print for two-thirds of its revenue.
Some experts suggest a shift in perspective is needed, focusing on the audience rather than the platform. This could involve creating a unique user experience, or developing a niche, such as the Financial Times’ focus on financial news.
Another approach is the ‘non-profit’ model, where wealthy benefactors or foundations support the newspaper. The Guardian has adopted this model, creating a membership scheme where readers can donate to support the paper.
The future of newspapers is uncertain, but one thing is clear: the old business model is no longer viable. Newspapers must innovate and adapt to survive in the digital age.
Go to source article: http://www.politico.com/magazine/story/2016/10/newspapers-digital-first-214363