Business model innovation in the online news industry

The Internet disrupted the news industry’s traditional business models. Technology enabled new forms of production, aggregation, distribution and valuation of content. Once costly, limited in terms of amount and timing, the information online has become mostly free of charge, abundant and provided in real-­‐time. The Internet was turned into the main source of information and it is also increasingly being converted into the main source of revenues. But it also lowered the barriers for new entrants, increased competition and augmented the bargaining power of consumers. This fragmented and highly competitive environment urges online news companies to innovate their business models in order to acquire a superior strategic positioning. In order to examine how online news companies can differentiate themselves to gain a competitive advantage, this research conducted eleven best practice case studies on ventures from six different countries. The significant findings indicate that the role of the consumer has become very significant in the news industry. Hence, news organizations should seek for specialization, embrace new forms of relationship with their users and try to implement different revenue sources as a pathway to monetizing their businesses on the medium and long terms.