Partnering could be key for future business models April 5, 2008Posted by Robert Rich in symposium.
Tags: business models, george sylvie, UT
George Sylvie, professor at UT Austin presented his paper “Developing An Online Newspaper Business Model: Long Distance Meets The Long Tail”.
Sylvie said that the key for new online business models hinge on partnering and distribution.
“Media have intended and unintended uses, rendering the newspaper ill-equipped in marketing,” Sylvie said.
He said that it is a mistake to match products with demographics, and that instead companies should deliver convenience, comprehensiveness, timeliness, not a niche.
“Deliver news through non-media delivery vehicles, like via mobile media,” Sylvie said. “It moves, has willing-to-pay users, attracts people and invites socializing, and encourages a natural bonding with customer bases.”
There are challenges inherent in this process, Sylvie said.
“You have to go out and learn to create value for people,” Sylvie said. “You have to train your staff about what is the value of a newspaper for other people.”
At an organizational level, Sylvie said serious local Research & Development is a necessity. He also mentioned the possibility of outsourcing as a viable option, as well as a technological infrastructure.
“You need to develop a better search feature,” Sylvie said. “I’m not saying be Google, because much of Google is crap. Of course, it’s going to take continuous planning.”