Público : fighting for revenue in the digital age

In: http://hdl.handle.net/10400.14/9474

Abstract

This teaching case study highlights the difficulties facing the press in the digital age, focusing on the case of a particular newspaper, the Portuguese daily Público, in 2011. Pressured by fierce competition, amid an unfavorable economic climate and mounting internal conflicts, Público is fighting for survival. With the traditional print business model upended, the case study identifies the monetization of the internet – of information online – as a key objective for Público, as for other newspapers. The objective entails huge dilemmas. Not everyone in the company defends charging for more online content, fearing an erosion of brand equity and a loss of influence. But the top management remains adamant that strengthening online subscriptions is the only way out of Público's deep financial trouble. More than whether to ―close‖ content, the issue is how. Decisions have to be made about pricing two information goods (―HTML‖ and ―E-paper‖) across different consumer segments. Público's case fits well in the undergraduate and MBA marketing classes, and specifically in the modules of internet marketing and pricing. It lays particular emphasis on the marketing topic of bundling, assuming students are acquainted with it beforehand. As it also introduces issues of profound industry transformation and business model innovation, it could appeal to other courses related to strategy. It is ultimately hoped students will get a sense of the dangers and opportunities of an ever-changing context to an industry that has many peculiarities, but is vital in any democracy.