Business Model Transformation of Legacy Newspapers in The Age of The Digital Attention Economy

Abstract

This chapter explores ways in which legacy newspapers may transform their business and operational models to ensure profitability and protect journalistic ideals. This transformation is explored through the lens of Norwegian media company Amedia, an early innovator. Our analysis sheds light on the ways in which the industry has come to understand the digital attention economy as defined through key innovations initiated by Google and Facebook. At Amedia, these innovations paved the way for a major corporate turnaround in which data harvesting and AI play major roles. The turnaround is still ongoing after seven years, but preliminary conclusions can be drawn. Within an ecological view of organizational adaption, this chapter proposes six theses about design requirements and transformation for legacy newspapers and concludes with four key findings: a) survivability will be difficult without the implementation of a new AI-operational model and business model built on software, b) a space is emerging that supports profitable quality journalism with strong commitments to veracity and fairness, c) most outlets still need advertising revenue to achieve profitability, and d) roles and skill-sets of top managers and journalists are undergoing major changes.