Business Model Convergence and Divergence in Publishing Industries

Abstract

Digitalization of information has led publishers to contemplate how to innovate new business models for their media services. This article discusses the evolution of media business models by revealing their convergence and divergence. The study proposes and uses a framework for analyzing business model evolution in three publishing industries in Finland; books, newspapers, and magazines. The framework is based on two dimensions: the organizational goal for business model change and the strength of belief systems. It offers a tool that helps managers at publishers and other media companies develop their business models by focusing not only on material aspects of business model, such as the ecosystem and revenue logic, but also on belief systems. Publishers face competition by entrants from other industries and the emergence of practices that are reconfigured and shared across diverse publishing industries. We suggest that managers need to review their belief systems that either enable or prevent the development of novel media business models.