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Business Model Transformation of Newspaper Industry in the Context of Digitization
Wen∕Hu Qunhao Yang Baokang

In 1990, with the rapid development of the Internet and information technology, digital technology began to be gradually applied to the field of media, and the media industry ushered in the second great development and prosperity. Internet media companies are rapidly emerging and constantly encroaching on the traditional media's living space.

Due to the Internet's wide audience, simple access channels, easy to disseminate the advantages of information, as well as the diversification of information access channels, so that the survival of the traditional news newspaper industry and the future prospects for development have been repeatedly questioned. This kind of digital technology, which combines all the current ways of information dissemination in the society and takes the interconnection as the basic form, has changed the way of production and life in all fields of the society, and promoted the great changes in the media field from the production of information, the dissemination of information to the reception of the information, completely breaking the traditional pattern of the media industry and gradually expanding the influence of the technology to the political, economic, cultural and educational levels of the society. The media industry has been completely transformed.

In 2006, The Economist, a leading British magazine, published a survey and analysis article, Who Murdered the Newspaper? Once released, it caused people to digitize the background, the development of the traditional newspaper industry in the current situation and the direction of subsequent development of a wide range of concerns and discussions. Under the background of digitization, the transformation of the commercial business model of the newspaper industry has become a key topic and a hot research topic in the current media field.

In order to successfully cope with the huge impact of the Internet media, the news newspaper industry must guide the innovation and transformation of enterprises, transform the traditional business model, to obtain and consolidate the original living space and market position.

The basic scope and theory review

(a) Digital

Digitalization is a term that has been widely used in the field with the continuous deepening of the real concrete practice process and the successive acquisition of theoretical research performance. Its essential meaning and extended meaning, are continuously tending to complexity and scale. The modern terms that are closely related to it are: Internet of Things, information network, new network platform, multimedia, messaging technology, etc.; the new words that are closely related to it, the derived words are: digital technology, network information, message system, network interactive business, etc.

Wikipedia's foreign language version of the publication sees digital as a digital system, and considers it to be a mathematical process that utilizes intermittent, dispersed values. In contrast to non-digital (analog) systems, analog systems enable the presentation of information by means of an uninterrupted sequence of changing values. Although the image curves of the numerical changes are decentralized, the associated messages are allowed to be not only decentralized (e.g., Arabic numerals, English letters, computer program codes, etc.), but also continuous and progressive (e.g., changes in sound, image clarity and coherence, and other forms of continuity). The basic attributes of using digital messages are parallelism, being based on a proprietary "program descriptive language", allowing for inaccuracies and deviations, allowing for mass replication, and having intermittency.

Overall, the core meaning of the concept of digitization encompasses two key elements: a standardized digital model, which reflects the fact that the digital display process in the message generation process is very different from the simulation process, with the same medium of communication, continuous and uniform code code, and the attributes of non-destructive reprinting; and a message dissemination model dominated by networked media, with the attributes of parallel transmission and network communication type architecture. The second is the network media mode of information dissemination, with parallel transmission, network communication type structure of the attributes.

(2) Business model transformation

1. The evaluation of business operation model needs to focus on a certain exclusive condition

The evaluation of business operation model needs to focus on a certain exclusive condition, such as the external condition and competition situation. It is only under a specific external condition that it is considered appropriate to examine a business model. To do this, first, the external conditions of change faced by the business community should be recognized; second, the position and role of the unit in the complex and harsh market competition should be determined.

2. The basic feature of the business model is the realization of the value of the income

The network operating companies face, is a different type of consumer has changed the original product structure or service model, the new development and operation of the commodity structure or service model, should be included in or rich in the value of what should be a commercial operating organization, in its field of operation in the implementation of targeted and targeted, social products and services, should be the business model. Targeted and targeted, social products and services model of the overall comprehensive grasp.

3. The second basic element of the business operation model is the realization of the preservation and appreciation of the operating products

The preservation and appreciation of the operating products, which covers the means of profitability of the commercial enterprises relying on the various channels of income, i.e., the channels of obtaining economic returns, after perfecting the composition of the operating costs.

4. Basic structure management level of business operation mechanism

The "basic structure management level" of business operation mechanism refers to its strategic operation structure. The strategic operating structure covers the components of the internal operating structure that guarantee the acquisition of business value, and is related to the organizational model, management mechanism, and operating personnel of the business operation of the enterprise.

(C) Media integration theory

In the process of digital operation mode conversion in today's newspaper industry, the doctrine of mutual penetration of the media is of great value. The digital operation process allows all types of media models to achieve mutual penetration, so that the computer, information transmission and media industry before the "well water off the river water", isolated from each other's division began to converge.

In 1983, Professor Poole of the Massachusetts Institute of Technology (MIT) was the first to put forward the theory of "media convergence", pointing out that in the media information dissemination industry, due to the rapid increase in the level of related technology, the boundaries between the various types of media functions have been gradually blurred. 1995, Professor Ponti of MIT further put forward the relevant arguments, indicating that the media industry has become more and more complex, and that the media industry is now more and more complex. In 1995, Professor Ponti of MIT further put forward the argument that the media industry has gradually changed and even replaced the traditional form, the mixed application of sound, image, text, for the digital development of the media to create unlimited possibilities, a variety of innovative programs developed rapidly, enriching the content and form of the media field.

The motivation and inevitability of the transformation of the business model of the news newspaper industry

(a) The internal motivation of the transformation of the business model of the news newspaper industry

1. The impetus of technological development

Any round of classic technological change in the media industry can inspire a new media operation model.

For example, the lithography process led to a boom in print media, and the electronic communications industry led to rapid advances in electronic messaging, which led to the widespread use of cable broadcasting and tele-video technology.

After 1990, the rapid advancement of big data collection technology and cloud computing technology led to the emergence of a wide variety of news media in society, and the traditional news-based newspaper industry also moved towards a number of goals: from "unidirectional" messaging to "mass" messaging. From a "unidirectional" message delivery to a "mass" message delivery model. In the past, newspapers and magazines, cable and wireless audio broadcasting, video television and other communication media, are to take a one-dimensional, centralized mode of transmission, but with the majority of listeners do not have a positive and abundant communication and cooperation.

With the advent of digital communication media, especially the strong application of network-based communication media, the message transmission of human society has been transformed into a period of eliminating the centralized transmission mode. Thematic forums, news blogs, community-based network platforms, microblog messaging, so that the transmission of information media tends to be more interactive, audience perception.

2. The need for social interaction in the development of culture

In the trend of digital media development, society's desire for multiple cultural nutrition. Digital media communication, contributing to the emergence of new social and cultural qualities, just as a Western media expert asserted: "the advantages of a new type of media will lead to the generation of a new type of life civilization".

The information dissemination media has a unique value for the enhancement of social and cultural tastes. Flatbed printing information dissemination media, contributed to the newspaper delivery, trading, reading the cultural atmosphere of the newspaper, and with today's digital application of the process of improvement and progress, multiple types of messaging media, as well as the expansion of the message terminal customers, so that the original paper-based newspaper message propaganda began to shift to the "electronic mode of browsing," "view mode," and "the view mode" of the paper. "View mode", people began to implement the network to browse news and information, feel the rich and colorful and high-definition moving images, access to the convenience of mobile visual functions available everywhere.

(B) News newspaper business model transformation of external motivation

1. The pressure of audience demand

The audience's expectations and calls, is an important external motivating factor for the transformation of the news newspaper media. Today, the rapid development of multimedia under the audience, is no longer satisfied with a single type of absorption of the message form, but more important to the classification of information, timeliness, depth and breadth. In short, the audience is no longer the "receiver" of information, but the "consumer" of information. With the disappearance of the information center status of the media, the market-oriented media subjects began to take the position of operators, re-media "consumers" for customized services.

2. The Threat of Substitutes

The threat of substitutes is posed by mobile media, which use digital technology as its endpoint, and the threat of substitutes for paper media. A substitute is a product that partially or completely replaces a media product in terms of function. The introduction of new media such as online media has brought the threat of substitution or partial substitution to the development of newspapers. Network media, cell phone media and other mobile media, with its diversification, mobility, interactivity and other aspects of the advantages, formed a pressure on the paper media posture.

3. The pressure of media competition

At present, the media competition is exceptionally fierce, the newspaper industry is facing the double competitive pressure of marketization and digitalization. At present, the pressure of market competition is mainly manifested in two aspects:

Competition with the paper media, including the cross-regional competition of comprehensive newspapers, regional newspaper market battle. As the market share of the newspaper industry is limited, this determines that the game between the newspaper industry is inevitable. Beijing as China's economic, political and cultural center of the distribution center, but also the media to carry out the competition site, such as "Beijing Times", "New Beijing News", "Beijing Morning Post" and other newspaper media.

Competition with heterogeneous media includes the development of online media, especially independent news portals. As of the end of June 2011, China's network news user scale reached 362 million people, the utilization rate of 74.7%. The Internet, mobile network, has become an important source of information for young people to obtain news information at this stage.

The path of transformation of the business model of the news newspaper industry

(a) Product transformation: the digitalization of newspaper products and innovation strategy

The new media under digital technology has a wealth of information sources and dissemination channels, as far as the news field is concerned, smart phones, tablet computers, smart bracelets, and a variety of technology-based items can be used as a carrier of its performance. News presentation platforms are also constantly innovating, such as Google, Yahoo, Baidu and other major portals, Tencent, Sina, NetEase and other news software, a little bit of information and other types of mobile news client. News newspaper product transformation must be based on a precise analysis and positioning of traditional and digital users, segmentation of the audience's diverse needs, in order to develop innovative digital products. Specifically the following aspects:

1. user-centered

The news newspaper industry is to information as the core product, for specific user groups to provide real-time, authoritative information and related interpretation. In the face of the wave of rapid development of Internet media, newspaper product innovation must be put on the research agenda.

Different news products have different characteristics, and the consumer groups they face are not the same, while the different products will also lead to different communication platforms, methods and frequencies. Therefore, the news newspaper industry should actively examine the old user's mindset and the new user's information needs, to user demand as the fundamental, change the traditional news newspaper form products and extended products.

Formal products, mainly refers to the newspaper itself, including the structure of the newspaper, plate and paper. Formal products are related to the direct feeling and first impression of newspaper consumers on the newspaper.

Extended products, mainly refers to the newspaper can bring profit for the additional services, including newspaper brand, product influence and subscription. High-quality products of news-based newspapers are one of the most direct and effective ways to gain an audience.

2. Inherit and consolidate the advantages of existing newspaper products, with news content as the core product

For the complexity of the Internet information, due to the low cost, easy to replicate and other characteristics of the Internet news access channels, reliability of the information, the way of expression and so on, gradually by the community to question. As a result, the news industry is still in a good position to develop due to its traditional operation, brand effect and professionalism.

Currently, the survival of the newspaper industry is not a question of news, but a crisis of commercial operation and profitability. Since the news information demanded by the audience has never changed, the news newspaper industry should adhere to the original value concept in the digital transformation, adhere to the good news, to ensure the immediacy, authenticity and authority of the news information, and then enhance its competitive advantage. At the same time, the rapid development of society has led to the gradual highlighting of social issues and increasing complexity. The news industry is endowed with specialized policy interpretation, investigative reporting and other in-depth content, still has a broad application market and social significance.

3. Promote the transformation of form products and extended products

The rapid development of digital technology, driven by the traditional news industry's diversified media, constantly innovate form products and extended products, the introduction of digital technology. The development and promotion of digital products, must be based on the news paper and the Internet two different product concepts and marketing methods, accurate positioning, the traditional advantages and the effective integration of modern information technology.

News newspapers should actively break the limitations of the original physical and bearing methods, and develop a variety of media forms, such as text, pictures, audio, video and so on.

The news newspaper industry to build Internet communication channels, the traditional paper receiving end, the development of a variety of digital products, including official websites, applications, apps and so on.

The news industry should define its own attributes and core content, expand investment in news and information, and realize a variety of news and information services with the help of multimedia forms, and wireless docking across platforms.

(2) Profit Transformation: Digitalization of Profit Models and Multiple Realizations

1. Content Payment

Authoritative news organizations still play an important role in contemporary society, and their news content, access to channels, news quality, and the effectiveness and professionalism of the news interpretation are much higher than those of online information delivery platforms, and they still show significant market value. News newspapers can actively conduct in-depth research and development while exploring the advantages of news products, develop boutique products, and launch paid content. There are many similar examples internationally, such as the Wall Street Journal, the Financial Times and other financial business newspapers.

The content realization profit model in China's many securities investment service enterprises have also been reflected, such as through the Internet software tools, mobile terminals and official websites and other products, push news and information, economic market interpretation, investment trend reports, etc., the user can pay to view. However, financial and economic magazines have their own special significance, which is difficult to be copied to the common sense of the news business newspaper. Generally speaking, the information of ordinary newspapers is less specialized and helpful, but more replaceable, so whether users are willing to pay for news information has become a problem that the ordinary newspaper industry must pay great attention to.

It can be seen that the news newspaper industry must continue to provide truly high-quality, true and reliable, fully interpreted information, to form advantageous features, to enhance news professionalism, and then only to the transformation of digital paid products. In the early stages of the transition can be taken open and closed combination of methods, such as for new users, set a certain amount of free reading per month, and for the scheduled users, it is necessary to provide a variety of alternative ways to charge for their browsing.

3. Activity marketing

To promote the development of the industry and build the newspaper brand, news newspapers can regularly organize consumer salons, lectures, or other commercial activities. Event marketing can fully utilize the platform resource advantage of the newspaper industry, and can be widely publicized through the digital communication platform, low cost and significant effect.

(C) Organizational innovation: optimization of management system and structural adjustment

1. Adjustment of organizational structure

Combined with the technical characteristics of the Internet and the characteristics of the industry, we adjusted the organizational structure of the news newspaper industry, established a team of editors and journalists with quick response, strong action and professionalism, and built a simple process and effective implementation of the operating mechanism.

The digital transformation and digital products of the press industry under the guidance of the media convergence theory will involve diversified work contents in different fields, therefore, no strict restrictions should be set up, and different business personnel can be mixed to strengthen the communication and exchange between editors of paper media and editors of Internet platforms. At the same time, the integration of other staff, *** with the same for the news paper, official website, news mobile client and other products. At the same time to ensure authoritative news reports, attached to a wealth of pictures, audio and video materials, to obtain a better user experience and visual effects.

2. Optimize the management system

The digital transformation of the traditional news newspaper industry, that is, it means the transfer and adjustment of the newspaper industry's way of working, workflow, operation mode and the main industry, and the expansion of its business fields and media platforms make the organizational structure of the enterprise more complex, and even need to be combined with the specific transformation goals to carry out the appropriate restructuring and formation. Therefore, in order to strengthen the communication and interaction of staff at different levels, and to enhance the effect of transformation, it is necessary to reform the management style and rules and regulations, to refine the scope of order execution and operation process, to optimize the division of labor of staff production, and thus to ensure and improve the efficiency and full cooperation.

The traditional news class newspaper industry as a product of social development in the industrialization period, creating a century of brilliant history of the media industry. However, the rapid rise of digital technology and the continuous development, changing the society's previous way of obtaining information, the traditional news newspaper industry is also facing an existential crisis.

However, opportunities and challenges always exist side by side. Under the background of digitalization, the news newspaper industry must strive to carry out the transformation of the industry model, in the development of the news industry, to maintain the traditional advantages and authority at the same time, innovative products, reform of the profit model, optimize the organizational structure, to achieve the traditional news newspaper industry in the new industrial and economic environment of the success of the "self-help", to safeguard the social value of the news information, and to promote the innovative development of the news newspaper industry. The news newspaper industry's innovative development.