Reshaping the Business Model
Tuesday, October 27, 2009
By Ryan Franker
The San Fransisco Chronicle has figured out a way in making a profit with the newspaper. The Chronicle believes that changing their business model is what helped their change. They had such a horrible decline in daily subscription last year, but with the changes that were made they were able to make up for it.
The changes the Chronicle did, were offering fewer discounts on subscriptions, and stopped delivering the newspapers to homes that made no economic sense in delivering it to that house. Their subscription rate jumped from $4.75 to $7.75 within 18 months. The Chronicle has the largest circulation in the Bay Area.
With the Chronicle's subscription rate up, the newspaper was able to make changes that would benefit them in the long run. The Chronicle is planning on switching the normal newspaper paper to the glossy magazine type paper, it will be the first newspaper to switch to that kind of paper in the country. The paper is also making a new section in the paper called Ovations, it will be for arts and culture.
It is hard to tell which path to take, because each city is different and will take a different approach to it. The Chronicle was lucky that the approach they took, the people liked and were able to give them money back to enhance the readers papers.
(Photo Credited: flickr)
