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Prof Mpiya

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How can newspapers survive the web

More people are getting their news off the Internet, not newspapers. Will traditional newspaper survive the web. Profit margins and monetisation is very difficult on the web. what business models can newspapers use to survive the web. is the answer in paywalls, of open access and advertising. will the revenue be enough to sustain the print media as we know it.

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  • Sep 15 2013: So easy – newspapers have been “deconstructed” where web startups have taken the major revenue source, their advertising. This deconstruction left newspapers with the high cost of news while stripping them of their main income.

    However newspapers can have the last laugh because they still have very large audiences who trust them. The strategy they need to following is to use their audiences to back website startups. Startup websites often have great business models but lack critical mass to propel themselves to number one in their segment. Newspapers and their websites have unutilized advertising space that could be used to get a startup website to a critical mass position.

    The newspaper demands an equity stake and option to acquire for allowing the startup website to access its audience at no cash cost. The startup website has no choice because it cannot afford to buy the advertising and if it raised capital it would have to sell equity anyway.

    Newspapers can transform themselves into web empires with their only risk being use of unutilized advertising space to their large trusting audience.

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