The increasing demand for technological innovation in the media industry is driving paradigmatic changes to digital media business models. Thus, the identification of sustainable media business models is an urgent priority, as the continuing decline in audiences and the collapse of media organisations pose a major threat to journalism and society, with scholars agreeing that any further erosion of quality journalism threatens democracy.
This chapter analyses the paradigm shift from a static to a dynamic/transformational digital media business model. The author argues that the dynamic media business model will help target benefits in three key areas: greater profitability, better scalability and more effective and continual innovation.
In summary, the author concludes that digital business models influenced by digital convergence/divergence will focus on aggregate multi-platform distribution, digital platforms, complementarities, vendor lock-in, an interoperable and networked media and ICT ecosystem, massive personalisation/customisation and the user interface.