4 innovative content models and their lessons for publishers

Pandora's popularity is based on pairing musical selections with the user's taste. In return, listeners are willing to accept advertisements between songs ― which can also be tailored to the listener. Extreme users can pay for a premium service. 

 

Why it could work for news: Building a personalized news experience is something the industry has been talking about for a while, but it's still only in its infancy. Consumers increasingly expect to get news tailored to them amid the din of information. Personalization also allows advertisements to be more relevant, becoming a win-win situation for publishers and consumers.

 

Why it could fail: Elements of personalization seem like a good route, but too much personalization and automation could be over-the-top. Readers still rely on news organizations to tell them what's important and like the ability “flip through” content on their own. Privacy concerns also continue to hinder personalization of content and ads. 

 

Where we're seeing elements of it already: Personalized and recommendation-driven news is gradually becoming more prevalent, particularly on the iPad with apps like Flipboard and Apollo News. Publishers have explored personalization of news through portals and are showing interest in teaming up with and acquiring personalized aggregators.  

 

Though an on-demand alternative to the TV, Hulu borrows from the cable model by bundling of content from various sources, offering both a free and premium version.

 

Why it could work for news: In keeping with the theme of personalization, consumers increasingly want to pick and choose the content they want, when they want it. Bundling of some sort seems inevitable for the content industry.

 

Why it could fail: Not everyone will want to pay for the premium options. And, of course, it would require publishers to work together.

 

Where we're seeing elements of it already: Particularly since the onslaught of tablets, the phrase “content-bundling” has been tossed around a lot. Of course, the print world sells subscription bundles, so it's not a foreign concept. 

 

Emerging digital storefronts might deploy Hulu-like elements. The media consortium Next Issue Media, set to launch a digital newsstand this year, plans to offer bundling of print and digital sales. CEO Morgan Guenther, a former TiVo executive, has also mentioned opportunities to bundle content from various publishers, similar to the TV model.  

 

Netflix has found a sweet spot with the all-you-can-eat model for consuming content. For a few different pricepoints, Netflix subscribers receive a large on-demand collection of videos and TV in addition to an unlimited amount of DVDs in the mail. Like Hulu, Netflix displays a buffet of content in one place for one price. Like Pandora, it can recommend selections for users based on their interests and choices. 

 

Why it could work for news: Imagine paying about $10 per month for all the news you want from a variety of places. Consumers could receive an unlimited selection of on-demand content and a limited selection of premium content. It could be better than the metered model, which allows free access up to a certain point and then cuts users off. With this model, consumers pay upfront for to consume what they want. 

 

Why it could fail: Netflix exploded for TV and movies, but, sadly, would people pay as much for news? And would it be enough to fund media companies? The model would also require content providers of various mediums to work together, though it could also be deployed among various properties of a single publisher.

 

Where we're seeing elements of it already: The Netflix model seems like a natural evolution of the nuanced paywalls publishers are experimenting with. Hypothetically speaking, The New York Times (which is unveiling a metered paywall soon), could offer a huge selection of content for free, while also allowing a certain amount of premium content each month. Digital newsstands coming soon will likely be more like iTunes for news, but maybe some Netflix attributes will catch on. 

 

Who would've thought you could build a business off of games? Yet Foursquare grew at rapid speed this year as a platform for people to share their locations and win rewards. While consumer interest is strong, Foursquare is still implementing its business model, starting with partnerships with local businesses.

 

Why it could work for news: We know that people like social and location-based games. News companies could copy Foursquare by rewarding users for consuming content. They could also team up with advertisers to push location-based deals. 

 

Why it could fail: Well, as aforementioned, we don't really know how much money will be made through Foursquare. 

 

Where we're seeing elements of it already: Bits and pieces of the Foursquare mentality have been popping up all year. Many publishers are already teaming up with Foursquare. At an industry panel this year, Foursquare and The New York Times discussed the potential of pairing archival content with location ― so that, for instance, someone at a restaurant could have a New York Times review of the restaurant pop up on his smartphone. Innovative experiments with location and games are already sprouting up among a few publishers. Gourmet Live is using a Foursquare-like mentality to reward users for reading content. 

 

What do you think: Should the news business take any tips from the models above? What other digital business models could do the media industry good?