In the Digital Age of publishing business models have to be looked at again and changed to fit an ever changing market.
There are a few different Digital Business Models that can be used like: Pay Per Chapter, subscription, crowd funded, Open access, Pay wall, Freemium etc. Some of these models can be beneficial to the customer but others can be terrible for your average consumer. For example Pay Wall which allows people to look at some content on the website until they hit a wall, ‘the pay wall’, and then they have to pay. This can be seen as bad as if you are a casual consumer it can hinder you and make you leave the website, for example if a university student is looking up papers and sources and finds a journal that might be useful they can’t read enough of it to see if it will be worth their time to pay past the ‘paywall’. This kind of system can just make people leave the website and avoid it in the future. This is the opposite with the Advertising business model which lets you see the whole site for free but has adverts on the side of the site which generates the sites money/revenue (KPMG, 2009).
A popular opinion is that the ‘Subscription’ model is one of, if not the best business model for publishers to use (Webb, 2012).One of main reasons for this is the fact that it is good for both the publishers and consumers if done properly. People in the Digital Age are used to services which use the subscription model with services like Netflix and Cruncyroll which stream TV and Movies, this means consumers are satisfied and used to a monthly subscription as long as they believe the price is worth the content, which means that these kind of sites need a large back catalogue to make it worth it. And it’s good for publishers as it provides them a monthly sum for the content they are providing, meaning they are assured money for their products (Publishing Technology 2013).
Another common business model is ‘Donations’, this model is mostly used by self-publishers or cult followed books as it uses the fan base of the series or the author to pay for the book to be made. For example the site ‘Pateron’ which uses the donation method to pay its creators once a month to produce the content they are offering. Another is the site ‘Kickstarter’ that has a one off payment not monthly. These sites have one main problem, which is that if the creator does not produce the content they promised the money donated is not refundable.
To conclude some of the new business models are great and others can be useful but can have problems for both the consumer and the publisher.
Publishing Technology. (2013). Why business models matter for ebook subscription services
Available at: http://www.publishingtechnology.com/2013/09/netflix-for-books/ Accessed on: 23/11/14
Webb, J. (2012). Business Models to Monetize Publishing in the Digital era.
Available at: http://toc.oreilly.com/2012/02/monetization-in-publishing-toc-2012.html Accessed on: 23/11/14
KPMG, (2009). Emerging Business Models to Help Serve Tomorrow’s Digital Tribes.