The Design Towards a News Aggregator Subscription Service: Results from An Online Experiment

Erol Kazan*, Tuure Tuunanen, Hadi Ghanbari, Mengcheng Li

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

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Abstract

The newspaper industry is on a quest to discover sustainable business models. Digital subscriptions are stable revenue generators for most publishers. That being said, smaller publishers face challenges. By not having the same resource base to offset costs compared to larger ones, small publishers are in a constant state of financial unpredictability. Another persistent problem among them is the high churn rate of subscriptions (i.e., the cancelation rate), which suggests a value misalignment between readers and service. New services like news aggregators may promise publishers a large pool of paying readers, as readers have access to diverse content by different publishers and are willing to pay for pooled news content. But platform fees and the disintermediation of direct customer relationships enact barriers for many publishers. To address these shortcomings, this study conducts an online experiment based on design science research to test the performance of different payment plans for a collaborative news aggregator service. We identify preliminary design principles for value creation and capture, which can be utilized for designing a commercial and collaborative news aggregator service.
Original languageEnglish
Title of host publicationProceedings of the 54th Hawaii International Conference on System Sciences
Pages5439-5448
ISBN (Electronic)978-0-9981331-4-0
Publication statusPublished - 5 Jan 2021
MoE publication typeA4 Article in a conference publication
EventAnnual Hawaii International Conference on System Sciences - Maui, United States
Duration: 5 Jan 20218 Jan 2021
Conference number: 54

Conference

ConferenceAnnual Hawaii International Conference on System Sciences
Abbreviated titleHICSS
CountryUnited States
CityMaui
Period05/01/202108/01/2021

Keywords

  • Advances in Design Science Research
  • business model
  • design science
  • newspaper industry
  • strategic alliance
  • subscription

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