The "free" revenue models within the European start-up scene in the media and internet sector
Business and revenue models in the media and internet industry are subject to constant changes in recent years. This is due to the digitalization of the media and the penetration of the internet and online applications almost across all business sectors.
At least since the publication of the book "Free" by Anderson (2009a) it is widely considered that the so-called "free" revenue models are the only viable and successful revenue models - in general and in particular for the media and internet industry (Anderson 2009b, Schmalz 2009, Berger et al., 2015). Already in 2004 Fetscherin and Knolmayer (2004) stated, that most of the companies in the newspaper and magazine industry follow a "free" pricing strategy for their digital content.
This trend is not only driven by the increasing importance of advertising financed business models in the online sector (Halbheer et al., 2014). In addition to the advertising model (three party markets) there is a distinction of three further variants of the so-called "free" revenue models (Pauwels & Weiss, 2008; Anderson 2009a): three party markets, direct cross subsidies, freemium, non-monetary markets.
Free offered services and products increased massively during the last few years. This happened due to new strategies which allow free offers to gain profit by using indirect ways of funding. While a few big companies like Google or Facebook succeeded to establish themselves in this context, only little is known about younger companies trying to settle down in this sector. And while the argumentation behind the concept of "Free" is comprehensible, however, large-scale empirical analysis of the existence of these revenue models in business practice has hardly taken place.
Against this background, the presentation provides a descriptive overview on the occurrence of the "free" revenue models within the European start-up scene in the media and internet sector.
Vortrag auf Veranstaltung: IMMAA 2017 Annual Conference
Veranstaltungsort: Sao Paulo, Brasilien
Datum: 11.09.2017 bis 12.09.2017
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