The short answer is yes. The entire business is in a process of change.
New technologies, including artificial intelligence (AI), are having an increasing impact on media business models. AI technology is changing the way content is created, distributed, and monetized. The dynamic development of artificial intelligence (AI) is causing datafication and platformization processes to become increasingly intense (Śledziewska, Włoch 2020). The key phenomena and mechanisms that drive these changes include demographic shifts and changing consumer preferences, and the adaptation of subscription models.
Adaptation of subscription models
Traditional media such as newspapers, magazines and television have long based their business models on advertising sales and subscriptions. One of the most visible trends has been the move to a subscription model. In Poland and Europe, many traditional media have started offering digital content for a fee. Subscription models, such as “paywalls”, allow access to full content only after paying a fee. An example is “Gazeta Wyborcza”, which has been using a subscription model for its online content for years. In Europe, such solutions are used by many large publishers, such as “The Times” and “Le Monde”.
Traditional media, such as press and television, are increasingly integrating datafication, or the potential of using data to optimize and better understand the needs of recipients. An example is the implementation of analytical systems that monitor the behavior of readers, viewers and listeners. Using data on user preferences, traditional media can adapt content to individual needs and interests of the audience. For example, newspapers can offer personalized articles based on reading history. Collecting data on user behavior allows better ad matching to their interests and demographics, which increases the effectiveness of advertising campaigns. Engagement monitoring, i.e. analyzing data on how long users stay on the site or how often they click on individual articles, helps to optimize content and publishing strategies.
At the same time platformization transforms traditional media into digital ecosystems that connect different forms of content and enable new interactions with audiences. Traditional media they develop their own platforms Internet and mobile platforms that enable access to content in digital form. An example would be a press publisher's mobile application that enables online content subscription and interaction with users. Digital platforms enable the integration of text, video, audio and interactive content (multimodality), which enriches the user experience and increases engagement. To generate revenue, many traditional media use subscription models, where users pay for access to premium content. The freemium model, offering basic content for free but additional features for a fee, is also becoming common.
Research suggests that subscription models are effective when they are tailored to different content formats and user needs (Bolton & Mattila, 2017). Media outlets are optimizing their subscription plans by offering different levels of access and payment options to appeal to a wide range of audiences. This means moving from homogenous subscription offerings to more diverse plans that better meet market needs and the content lifecycle.
In parallel, new payment models are developing, as exemplified by "pay-per-click" or "pay-per-impression" (Bikard & Müller, 2020). This development is particularly visible in the context of streaming platforms. The larger ones still offer only premium subscriptions for a wide audience, while smaller platforms use more diverse subscription plans.
Freemium models, where basic content is free but premium content requires payment, are also gaining popularity. An example is The Guardian, which offers free access to articles but encourages readers to support the service financially. The effectiveness of these models varies – while digital subscriptions can bring stable revenues, freemium models may have a limited impact on revenues compared to full subscriptions. Increasing efficiency in using data (datafication) and building added value on it will support the survival of these models. Research shows that changing business models, such as moving from a subscription model to an ad-based model, can be beneficial when content becomes less modern and attractive (Kumar & Soni, 2021). In the face of declining novelty of content, media outlets need to flexibly adapt their strategies to optimally transition between different business models in response to changing market conditions and consumer needs.
Bunnies Running Away... Example of Television
Video on Demand (VOD) is becoming increasingly popular in traditional media. Traditional stations are of course eager to use this. An example is TVN, which is developing its VOD offer to attract viewers to use online video content. In Europe, many traditional media, such as "ZDF" in Germany or "Channel 4" in the UK, are developing their VOD platforms to compete with streaming services.
This change is much deeper and covers more and more areas where traditional media are losing their dominance. An example is sports broadcasting, the importance of which for traditional media was particularly felt during the last Olympic Games. More and more areas, previously dominated by traditional media, are coming under the control of streaming platforms. The transformation from traditional TV and cable channels to global streaming platforms is particularly visible in the way sports are reported.
The historical context shows how televised sports have evolved from humble beginnings in 1936 to the modern, multi-channel global broadcast. Previously domestically focused sports are now reaching new, international audiences through platforms like Netflix and Apple TV+ (The Economist, 2024). Netflix is introducing American viewers to Formula One racing through documentary series like Drive to Survive, and Apple TV+ is bringing Major League Soccer (MLS) to over 1 countries. Today, sports broadcasts attract billions of viewers and generate huge revenues from media rights (The Economist, 100a). The streaming distribution model is changing the way sports are consumed, gaining ground among younger viewers who are increasingly turning to cable TV (The Economist, 2024b). The platformization of the way sports events are presented enables a far-reaching personalization of the experience: fans can freely choose the disciplines and programs that interest them, and are no longer dependent on the choices made by television producers.
New media is changing not only the way we watch sports, but also the content we choose. In the past, most people focused on local teams and events. Thanks to social media and the increasing globalization of personal followings of athletes, fans are becoming interested in individual players, not just teams (The Economist, 2024). Stars like Lionel Messi are drawing fans from all over the world to MLS, while Caitlin Clark is increasing the popularity of women’s basketball with her record-breaking performances. Social media is enabling athletes to build global fan networks, changing the way sports are consumed and promoted.
Summary
The changes in traditional media business models are being driven by dynamic demographic changes, the need to adapt to different content formats, the impact of new technologies, and the content life cycle. To meet these challenges, media outlets are flexibly adapting their monetization strategies and experimenting with different payment models. The future of traditional media will depend on their ability to adapt and innovate in the face of growing competition and changing consumer expectations.
Bibliography
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