Digital payments for a digital generation

Disruptive technology in book and local newspaper industries

Open access

Abstract

Digitalization is both a major cause of the challenges now faced by several media industries and a source of their potential solutions. Within the book and newspaper industries, the value of the physical product is about to be surpassed by that of digitally delivered content, disrupting the distribution system that these industries have relied on for many decades. In particular, digital distribution has radically changed the way in which consumers engage in unpaid and paid media consumption.

Anchored in the notion of disruptive innovation, and more specifically related to the idea of distribution as disruptive technology, our study investigates Generation Z’s unpaid and paid consumption of digital books and online local newspapers. Drawing on two Norwegian audience surveys, we find that both industries involve at least one disruptive actor. Generation Z relies heavily on Facebook as a distribution channel for news. Pay-walls have a negative effect on the usage of paid online local news, despite the belief that paywalled news is better than free news. In the Norwegian book industry, paper books still have a very strong position among Generation Z. Audiobooks have greater usage than e-books, and we conclude that the real disruptive actor in the Norwegian book industry is the streaming of audiobooks by actors such as Storytel.

Andersson, Y., Dalquist, U. & Ohlsson, J. (2018). Youth and news in a digital media environment – Nordic–Baltic perspectives. Gothenburg: Nordicom.

Arrese, Á. (2016). From gratis to paywalls. Journalism Studies, 17(8): 1051-1067. doi: https://doi.org/10.1080/1461670X.2015.1027788

Bell, E., Owen, T., Brown, P., Hauka, C. & Rashidian, N. (2017). The platform press: How Silicon Valley reengineered journalism. Columbia Journalism School. doi: https://doi.org/10.7916/D8R216ZZ.

Benhamou, F. (2015). Fair use and fair competition for digitized cultural goods: The case of eBooks. Journal of Cultural Economics, 39(2): 123-131. https://doi.org/10.1007/s10824-015-9241-x

Bergström, A. & Höglund, L. (2018). E-books: In the shadow of print. Convergence: The International Journal of Research into New Media Technologies, doi: https://doi.org/10.1177/1354856518808936

Christensen, C. M. (1997). The innovator’s dilemma: When new technologies cause great firms to fail. Boston, MA: Harvard Business Review Press.

Bower, J. L. & Christensen, C. M. (1995). Disruptive technologies: Catching the wave. Long Range Planning, 28(2): 155. doi: https://doi.org/10.1016/0024-6301(95)91075-1.

Brandstetter, B. & Schmalhofer, J. (2014). Paid content. Journalism Practice, 8(5): 499-507. doi: https://doi.org/10.1080/17512786.2014.895519.

Braun, J. (2015). Social media and distribution studies. Social Media and Society, 1(1). doi: https://doi.org/10.1177/2056305115580483.

Christensen, C. M., Raynor, M. & McDonal, R. (2015). What is disruptive innovation? Harvard Business Review, 93(12): 44-53. doi: https://doi.org/10.1353/abr.2012.0147.

Chyi, H. I. (2005). Willingness to pay for online news: An empirical study on the viability of the subscription model. Journal of Media Economics, 18(2): 131-142. doi: https://doi.org/10.1207/s15327736me1802_4.

Chyi, H. I. & Tenenboim, O. (2017). Reality check. Journalism Practice, 11(7): 798-819. doi: https://doi.org/10.1080/17512786.2016.1208056.

Colbjørnsen, T. (2014). Digital divergence: Analysing strategy, interpretation and controversy in the case of the introduction of an ebook reader technology. Information, Communication & Society, 18(1): 32-47. doi: https://doi.org/10.1080/1369118X.2014.924982.

Colbjørnsen, T. (2015). The accidental avant-garde: Audiobook technologies and publishing strategies from cassette tapes to online streaming services. Northern Lights: Film & Media Studies Yearbook, 13(1): 83-103. https://doi.org/10.1386/nl.13.1.83_1.

Cunningham, S., Silver, J. & McDonnell, J. (2010). Rates of change: Online distribution as disruptive technology in the film industry. Queensland University of Technology. Online, 136(1): 1-13. https://doi.org/10.1177/1329878X1013600114.

Drefvelin, C. & Lindblad, K.-E. (2018, February 1). Bokhylla.no – Nå kan du lese 270 000 bøker gratis på nett. Men noen bestselgere mangler [Bokhylla.no – Now you can read 270,000 books for free online. But some bestsellers are missing]. Dagbladet [online]. Retrieved from https://www.dagbladet.no/kultur/na-kan-du-lese-270-000-boker-gratis-pa-nett-men-noen-bestselgere-mangler/69396347 [Accessed 2018, August 21].

Finkelstein, D. & McCleery, A. (2013). An introduction to book history (2nd ed.). New York: Routledge.

Fletcher, R. & Nielsen, R. K. (2017). Paying for online news. Digital Journalism, 5(9): 1173-1191. doi: https://doi.org/10.1080/21670811.2016.1246373.

Gaigher, S., le Roux, E. & Bothma, T. (2014). The predictive value of disruptive technology theory for digital publishing in the traditional publishing environment: A South African case study. Journal of Scholarly Publishing, 45(3): 261-288. doi: https://doi.org/10.3138/jsp.45.3.003

Geck, C. (2007). The Generation Z connection: Teaching information literacy to the newest net generation. In E. Rosenfeld & D. V. Loertscher (Eds.), Toward a 21st-century school library media program (pp. 235–241). Lanham, MD: Scarecrow Press.

Gershon, R. A. (2013). Digital media innovation and the Apple iPad: Three perspectives on the future of computer tablets and news delivery. Journal of Media Business Studies, 10(1): 41-61. doi: https://doi.org/10.1080/16522354.2013.11073559

Goyanes, M. (2014). An empirical study of factors that influence the willingness to pay for online news. Journalism Practice, 8(6): 742-757. doi: https://doi.org/10.1080/17512786.2014.882056

Graham, G., Greenhill, A., Shaw, D. & Vargo, C. J. (2015). Content is king: News media management in the digital age (1st ed.). New York: Bloomsbury.

Gregory, C. L. (2008). “But I want a real book”: An investigation of undergraduates’ usage and attitudes toward electronic books. Reference & User Services Quarterly, 47(3): 266-273. doi: https://doi.org/10.2307/20864892

Hess, K. & Waller, L. 2017. Local journalism in a digital world. London: Palgrave.

Ju, A., Jeong, S. H. & Chyi, H. I. (2014). Will social media save newspapers? Journalism Practice, 8(1): 1-17. doi: https://doi.org/10.1080/17512786.2013.794022

Kammer, A., Boeck, M., Hansen, J. V. & Hauschildt, L. J. H. (2015). The free-to-fee transition: Audiences’ attitudes toward paying for online news. Journal of Media Business Studies, 12(2): 107-120. doi: https://doi.org/10.1080/16522354.2015.1053345.

Kostoff, R. N., Boylan, R., & Simons, G. R. (2004). Disruptive technology roadmaps. Technological Forecasting and Social Change. doi: https://doi.org/10.1016/S0040-1625(03)00048-9.

Lai, J. Y. & Chang, C. Y. (2011). User attitudes toward dedicated e-book readers for reading: The effects of convenience, compatibility and media richness. Online Information Review, 35(4): 558-580. doi: https://doi.org/10.1108/14684521111161936.

Loebbecke, C. (2010). The emergence of ebooks: Just another media industry joining the converging digital world? An explorative study on user preferences and industry structure changes. TPRC 2010. Retrieved from https://ssrn.com/abstract=1986386 [accessed 2018, June 21].

Myllylahti, M. (2017). What content is worth locking behind a paywall? Digital Journalism, 5(4): 460-471. doi: https://doi.org/10.1080/21670811.2016.1178074.

Nechushtai, E. (2018). Could digital platforms capture the media through infrastructure? Journalism, 19(8): 1043-1058. doi: https://doi.org/10.1177/1464884917725163.

Olsen, R. K. & Solvoll, M. K. (2018). Bouncing off the paywall – Understanding misalignments between local newspaper value propositions and audience responses. International Journal on Media Management, 20(3): 174-192. doi: https://doi.org/10.1080/14241277.2018.1529672.

Olson, K. E., O’Brien, M. A., Rogers, W. A. & Charness, N. (2011). Diffusion of technology: Frequency of use for younger and older adults. Ageing International, 36(1): 123-145. doi: https://doi.org/10.1007/s12126-010-9077-9.

Perren, A. (2013). Rethinking distribution for the future of media industry studies. Cinema Journal, 52(3): 165-171. doi: https://doi.org/10.1353/cj.2013.0017

Quan-Haase, A., Martin, K. & Schreurs, K. (2014). Not all on the same page: E-book adoption and technology exploration by seniors. Information Research, 19(2). Retrieved from http://www.informationr.net/ir/19-2/paper622.html [7/10 /

Seemiller, C. & Grace, M. (2016). Generation Z goes to college. John Wiley & Sons .

Shapiro, C. & Varian, H. R. (1999). The art of standards wars. California Management Review, 41(2): 8-32. doi: https://doi.org/10.2307/41165984

Vaage, O. F. (2018). Norsk Mediebarometer 2017 [Norwegian Media Barometer 2017]. Oslo/Kongsvinger: Statistics Norway.

Waldfogel, J. (2012). Copyright research in the digital age: Moving from piracy to the supply of new products. American Economic Review, 102(3): 337-342. doi: https://doi.org/10.1257/aer.102.3.337.

Warner, M. (2002). Publics and counterpublics. Public Culture, 14(1): 49-90.

Wilson, T. D. (2013). The e-book phenomenon: A disruptive technology. In Proceeding of the international conference publishing – Trends and contents (Vol. 2, pp. 3-12). Pula, Croatia: Libellarium.

Nordic Journal of Media Studies

Journal from the Nordic Information Centre for Media and Communication Research (Nordicom)

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 296 296 130
PDF Downloads 157 157 34