How to generate revenue from the new website for a newspaper company?

brainstorming business situation Framework revenues
Recent activity on Apr 02, 2018
2 Answers
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Anonymous A asked on Mar 29, 2018

Hello,
Our client is a traditional newspaper company (only hard-copy) that is considering to establish a website to increase revenues. What factors would you consider to help the client?

How would you structure the case? Where would you include subscription, advertising revenue etc?

Customer preferences
*Key segments
*What do they want?
*Their preferred dist channel (hard-copy vs online)

Company specifics
*Content (match or mismatch with the customers)
*Capabilities (IT, design etc)
*Financial resources

Competitor Analysis
*Key players
*Market share
*What are they doing on that angle and prod/ content differentiation if any?

Strategic Issues
*Risk of losing current customer base (maybe they are old and does not prefer online channels)
*Brand confusion

Thank you very much.

(edited)

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Carlos replied on Apr 02, 2018

Hello!

I would suggest the following structure:

1. Newspaper market: hardcopy vs. online: size (readers), growth, customers (segment by age, interests, preferences -price, quick access, quality of contents,...), competition (key players, evolution, product -general, sport, economic news-, response to our move), barriers (they should be lower in online segment).

2. Company: capabilites, recognizition, customers base, current revenues and costs, financial situation.

3. Effect of establishing a website: on revenue (subscription fees, advertisement, synergies with hard-copy (access to more readers, increase visibility) and cannibalization of hard-copy selling), on cost (labour -same content as hard-copy?-, maintenance, marketing), cultural integration).

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Anonymous B replied on Mar 31, 2018

Hi there, the overall structure seems good, I would recommend to add a bucket "profitability" and include there the economics of the website.

You would then consider the revenues from subscription and advertising as some of the new revenue streams and you would also have to think about key cost elements (website development and maintenance; cost for writing the content - if incremental vs paper edition).

I would also add any positive/negative synergies with the paper edition (content creation cost, cannibalization of paper edition readers) directly in this profitability bucket

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