Question

1)What advantages do traditional print newspapers have for entering the online news business? What disadvantages do they have?

2) What do you think determines whether people will use print, online, or both sources for their news?

3) When a print newspaper initiates an online version of its newspaper, what are the possible outcomes for its current display advertisers? Are they likely to prefer one channel over the other to reach their customers, or are they likely to select both? If both, are they likely to expect a discount for a bundle of print and online advertising? How do these outcomes affect the newspaper’s bargaining power?

4) How do you think the cost structure of online advertising compares to the cost structure of print advertising?

5) Which print newspapers do you think will fare the best as online news continues to expand? Why?

6) Have small town local newspapers been affected similarly to large national newspapers regarding readers’ preference for a print vs. online version?

Answer 1

1. Advantages of traditional print newspapers entering the online news business:

1) Potential to reach a global audience: Instead of newspaper, if you advertise online, then your ad will reach to people living all over the world. In case of newspaper, it will go to only subscribers or those who purchase the newspaper. So online advertising will allow you to reach a global customer and your prospects of getting new customers will improve.

2) Low cost: Online news business is inexpensive compared to traditional print newspaper.

3) Easy to track: One can easily track the results that which online outlets are fulfilling your purpose or not.

Disadvantages:

1) Online advertising can be easily ignored by some people but newspaper can not be ignored by people who give full time to read a hard copy or news paper.

2) Online information are used by those who are acquainted with computer but there are a lot of people who don't know how to operate a computer.

2. Factors that determine whether people will use print, online or both sources are price and content. If people find the price of newspaper is cheap then they can go for newspaper otherwise they will prefer to use online news. Similarly, depending on variety and bulk of content people choose the media of communication. Again technical skills also determine whether to choose online or offline newspaper. If a person do not know how to navigate through an online newspaper he will choose the print newspaper. Another factor that determines whether to choose online or print copy is age of a person, if a person is an old man with a very poor eyesight, he will feel uncomfortable with online newspaper. He may like to spend time with a print copy of newspaper in a suitable place of his choice.