Business models in the web 2.0 environment: An investigation of how companies working within online media industries can strengthen their relationship with their stakeholders

Abstract

From the digital age with its constantly changing technology, the Web 2.0 environment has emerged. The Web 2.0 environment is rapidly changing in line with technology, and is altering the way for firms operating in this environment in how to attract and keep consumers. This especially concerns creative industries such as the media industry which includes many firms working within online news and online music services. With four different case companies working within the media section of creative industry, namely; Spotify, WiMP, Tv2Sporten, and DN.no, this paper seek to shed light on the prevalent problem; how to keep and attract consumers for a Web 2.0 based service (in order to create profit?). Theory on; two-sided markets, Web 2.0, business models, the Net Generation, Technology acceptance, content, and value, serve as precursors for going into the research of the identified problem. The research design is explorative applying a sequential mixed methodology through a pragmatic worldview. The sequential mixed method approach is being used to first identify vital factors of how to attract and keep consumers at a Web 2.0 service through interviews, before applying the findings in a survey in order to generalize the results against a population. Furthermore, since using case companies operating in the Norwegian market, Norwegian interviewees categorized as Net Gens will constitute the respondents. The researchers found that Net Gens are both attracted and staying loyal to an online media service because of value adding features as much as ‘must have’ components (music and news). However, the Net Gens willingness to pay for these features is varying. Additional functionality and social features are seen as value adding features worth paying for in an online music service, whereas they are seen as ‘must have’ components integrated in the service for free in their choice of online news services. Nevertheless, for online news services it is essential to attract and keep as much users as possible to again attract advertisers in order to create revenue streams as users are not willing to pay for online news. On the other hand, online music services are dependent on attracting and keeping consumers at a subscription or creating revenue through attracting advertisers. This means that the same fundamentals apply for both online news and online music services in attracting and keeping consumers; understand the targeted audience preferences, understand the environment they operate in, keep up with technological developments, facilitate discovery, sharing and discussion of content, facilitate for open and authentic communication between the service and its consumers, and facilitate functionality features that streamlines and simplifies the use of the service.