Advertisement

Business Model Convergence and Divergence in Publishing Industries

  • Seppo LeminenEmail author
  • Juho-Petteri Huhtala
  • Mervi Rajahonka
  • Mika Westerlund
Part of the Media Business and Innovation book series (MEDIA)

Abstract

Digitalization of information has led publishers to contemplate how to innovate new business models for their media services. This article discusses the evolution of media business models by revealing their convergence and divergence. The study proposes and uses a framework for analyzing business model evolution in three publishing industries in Finland; books, newspapers, and magazines. The framework is based on two dimensions: the organizational goal for business model change and the strength of belief systems. It offers a tool that helps managers at publishers and other media companies develop their business models by focusing not only on material aspects of business model, such as the ecosystem and revenue logic, but also on belief systems. Publishers face competition by entrants from other industries and the emergence of practices that are reconfigured and shared across diverse publishing industries. We suggest that managers need to review their belief systems that either enable or prevent the development of novel media business models.

Keywords

Business models Evolution E-reading Digitalization Publishing industry Newspaper Magazines Books 

References

  1. Appelgren, E. (2004). Convergence and divergence in media: Different perspectives. 8th ICCC International Conference on Electronic Publishing, Brasilia, DF, Brazil. http://creativegames.org.uk/modules/Media_and_Cultural_Theory/Appelgren_Convergence%20and%20Divergence%20in%20Media.pdf
  2. Britannica Online Encyclopedia. (2013). Accessed January 12, 2013, from http://www.britannica.com/EBchecked/topic/1425043/media-convergence
  3. Casadesus-Masanell, R., & Ricart, J. E. (2010). From strategy to business model and onto tactics. Long Range Planning, 43, 195–215.CrossRefGoogle Scholar
  4. Cavalcante, S., Kesting, P., & Ulhøi, J. (2011). Business model dynamics and innovation: (Re)establishing the missing linkages. Management Decision, 49(8), 1327–1342.CrossRefGoogle Scholar
  5. Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2/3), 354–363.CrossRefGoogle Scholar
  6. Fetscherin, M., & Knolmayer, G. (2004). Business models for content delivery: An empirical analysis of the newspaper and magazine entrantindustry. The International Journal on Media Management, 6(1–2), 4–11.CrossRefGoogle Scholar
  7. Fine, C. H. (2000). Clockspeed-based strategies for supply chain design. Production and Operations Management, 9(3), 213–221.CrossRefGoogle Scholar
  8. Flavián, C., & Gurrea, R. (2006). The choice of digital newspapers: Influence of reader goals and user experience. Internet Research, 16(3), 231–247.CrossRefGoogle Scholar
  9. Huhtala, J.-P., & Sihvonen, A. (2012). The role of learning in eReading service development. In S. Leminen & J.-P. Huhtala (Eds.), eReading advertising and value creation best practices –Outlook 2010–2011 (Edita Prima Oy Helsinki 2012, pp. 21–26). Vantaa: Laurea Publications 8.Google Scholar
  10. Huhtala, J.-P., Tölö, M., Penttinen, E., Rajahonka, M., & Leminen, S. (2011). Business models in digital landscape. In S. Leminen & J. Salo (Eds.), eReading services business models and concepts in media industry (pp. 40–43). Vantaa: Laurea Publications A73. 49–68.Google Scholar
  11. Jarzabkowski, P. (2005). Strategy as practice: An activity-based approach. London: Sage. 216p.Google Scholar
  12. Leminen, S., Huhtala, J.-P., Rajahonka, M., & Siuruainen, R. (2011). Recommendations and managerial implications for media industry. In S. Leminen & J. Salo (Eds.), eReading services business models and concepts in media industry (pp. 136–149). Vantaa: Laurea Publications A73.Google Scholar
  13. McPhillips, S., & Merlo, O. (2008). Media convergence and the evolving media business model: an overview and strategic opportunities. The Marketing Review, 8(3), 237–253.CrossRefGoogle Scholar
  14. Nousiainen, A., & Leminen, S. (2012). Future digital space. In S. Leminen & J.-P. Huhtala (Eds.), eReading advertising and value creation best practices – Outlook 2010–2011 (Edita Prima Oy, Helsinki 2012, pp. 36–48). Vantaa: Laurea Publications 8.Google Scholar
  15. Osterwalder, A. (2004). The business model ontology, a proposition in a design science approach. These Presente’e a’ l’Ecole des Hautes Etudes Commerciales de l’Universite’ de Lausanne. Accessed December 16, 2011, from www.hec.unil.ch/aosterwa/PhD/Osterwalder_PhD_BM_Ontology.pdf
  16. Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of AIS 15 1. 40 p.Google Scholar
  17. Porac, J., Ventresca, M., & Mishina, Y. (2002). Interorganizational cognition and interpretation. In J. Baum (Ed.), Companion to organizations (pp. 579–598). Oxford: Blackwell.Google Scholar
  18. Saltzis, K., & Dickinson, R. (2008). Inside the changing newsroom: Journalists’ responses to media convergence. Aslib Proceedings, 60(3), 216–228.CrossRefGoogle Scholar
  19. Spender, J. C. (1990). Industry recipes. Oxford: Basil Blackwell.Google Scholar
  20. Stahl, F., Schäfer, M.-F., & Mass, W. (2004). Strategies for selling paid content on newspaper and magazine web sites: An empirical analysis of bundling and splitting of news and magazine articles. The International Journal on Media Management, 6(1–2), 59–66.CrossRefGoogle Scholar
  21. Tian, X., Martin, B., & Deng, H. (2008). The impact of digitization on business models for publishing some indicators from a research project. Journal of Systems and Information Technology, 10(3), 232–250.CrossRefGoogle Scholar
  22. Tikkanen, H., Lamberg, J.-A., Parvinen, P., & Kallunki, J.-P. (2005). Managerial cognition, action and the business model of the firm. Management Decision, 43(6), 789–809.CrossRefGoogle Scholar
  23. Westerlund, M., Rajala, R., & Leminen, S. (2008). SME business models in global competition: A network perspective. International Journal of Globalisation and Small Business, 2(3), 342–358.CrossRefGoogle Scholar
  24. Westerlund, M., Rajala, R., & Leminen, S. (2011). Insights into the dynamics of business models in the media industry. Vantaa: Laurea Publications A74. 42 p.Google Scholar
  25. Zott, C., & Amit, R. (2008). The fit between product market strategy and business model: Implications for firm performance. Strategic Management Journal, 29, 1–26.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2016

Authors and Affiliations

  • Seppo Leminen
    • 1
    • 2
    Email author
  • Juho-Petteri Huhtala
    • 2
  • Mervi Rajahonka
    • 3
  • Mika Westerlund
    • 4
  1. 1.Laurea University of Applied SciencesEspooFinland
  2. 2.Department of MarketingAalto University School of BusinessAaltoFinland
  3. 3.Department of Information and Service EconomyAalto University School of BusinessAaltoFinland
  4. 4.Sprott School of BusinessCarleton UniversityOttawaCanada

Personalised recommendations