The new business model

Tom Ratkovich

The newspaper industry’s predominant economic model has remained fundamentally unaltered for more than 100 years.

The New Business Model

Tom Ratkovich ASTECH InterMedia

The business model governing most paid daily newspapers, simply stated, implies that newspapers generate revenue by delivering 'eyeballs' to a range of national advertisers and local merchants. The industry cost structure including the gathering, production, and distribution of news, information, and opinion is substantial, but the immense profit associated with run-of-press and preprint advertising has fostered margins viewed by outsiders as bordering on the obscene....

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