2.Multi-Platform and Paid Content

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A Taxonomy of Newspapers based

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Strategies: Evidences from Spain
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Manuel Goyanes & Catherina Dürrenberg
a
Carlos III University, Spain
b
Hanover University of Music, Drama, and Media, Germany
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DOI: 10.1080/14241277.2014.900498
A Taxonomy of Newspapers based on

Multi-Platform and Paid Content Strategies:
Evidences from Spain
MANUEL GOYANES
Carlos III University, Spain
CATHERINA DÜRRENBERG
Downloaded by [Korea University] at 05:26 26 December 2014
Hanover University of Music, Drama, and Media, Germany
This article examines Spanish newspapers’ means of digital distri-

bution and their adoption of paid content strategies. To that end,
the article employs a quantitative, explorative approach with data
collected from 88 Spanish newspapers in November 2012. Using a
hierarchical cluster analysis four types of newspapers can be differ-
entiated by their utilization of specific means of digital distribution
of content. The four distinct clusters differ in their organizational
background and their average net circulation. The results of the
article highlight the increasing role of digital kiosks for digital dis-
tribution in Spain and indicate a high influence of publishing
groups on paid content strategies.
INTRODUCTION
The changing strategic environment is a continuing challenge for media firms

all over the world (Küng, 2008, p. 89; Picard, 2011, p. 3ff.). Like incum-
bents in many other developed media markets, the newspaper industry
in Spain faces a slow but progressive decline in circulation and revenues
(Federación de Asociaciones de Periodistas de España [FAPE], 2011).1 For
this reason, many organizations have started to develop a diversified multi-
platform approach for the production and distribution of content (Doyle,
2010). Generally, it has been argued that generating multiple revenue sources
is more appropriate than depending to a large extent on only one (Moroney,
Address correspondence to Manuel Goyanes, Department of Journalism and Mass

Communication, Carlos III University, C/Madrid 133, Getafe 28903, Madrid, Spain. E-mail:
Mgoyanes@hum.uc3m.es
27
28 M. Goyanes and C. Dürrenberg
2010; Paton, 2010). Empirical evidence clearly shows that advertising alone
cannot provide sustainable profits for journalistic online content (Perez-Latre,
2007; Clemons, 2009) and charging for content will probably be an essential
part of an effective business model (Graybeal & Hayes, 2011). As a conse-
quence, newspapers are combining and experimenting with different paid
content approaches (Chyi & Sylvie, 2001; Stahl, Schäfer, & Maass, 2004; Chyi,
2012) across different channels (Küng, 2008) with the aim to achieve a better
firm performance (Doyle, 2010).
Correspondent to the importance of the issue, extensive research has
been conducted on the economics of newspapers in the digital environment.
Mainly, two aspects are focused: (1) business and revenue models of online
newspapers (e.g., Nel, 2010; Picard, 2000; Steinbock, 2000; Bleyen & Van
Hove, 2007, 2010; Thurman & Herbert, 2007; Chyi & Sylvie, 2009; Goyanes,
2013a, 2013b) and (2) factors that influence the willingness to pay for online
news content (e.g., Chyi, 2005, 2012; Chyi & Lee, 2013; Goyanes, 2014). Yet,
there appears to be a lack of empirical studies on traditional newspapers’
strategies involving paid content across multiple platforms as most of these
prior studies either concentrate on one particular distribution platform (e.g.,
newspaper websites) in order to analyze different revenue models (e.g.,
Bleyen & Van Hove, 2007, 2010) and thus do not take into account all digital
distribution channels and target devices (such as mobile phones, tablets, etc.)
or they do not include traditional newspapers in their analysis. Furthermore,
new aggregators and intermediaries have emerged that need to be taken into
consideration.
This article addresses this gap by analyzing the different distribution
channels and revenue models employed by Spanish traditional2 newspa-
pers. The aim is to give an overview on the adoption of different strategic
options, to explore whether distinct strategies3 can be distinguished and
whether clear influence factors on the employment of these strategies are
identifiable. In the global context, Spain is quite an interesting market not
only because the newspaper industry there faces an extremely challenging
general economic climate but because it represents a newspaper market that
mainly relies on newsstand purchase (as is the case in the United Kingdom,
France, and Italy) rather than on subscription as is the case in the U.S.
market.
In this sense, the Spanish newspapers are an excellent example of
national industry players forming an alliance to successfully create joint
content platforms, so-called digital or virtual kiosks, as an alternative to
international platform operators from outside the industry, such as Apple,
Amazon, or Google. The aim of the strategic alliances is to commercial-
ize newspaper/magazine content on the Internet (Goyanes, 2012). Digital
kiosks could be seen as a replicate of the traditional kiosk, a catalogue
of publications where each organization competes under the same condi-
tions (i.e., all publications are accessible either free of charge or subject to
Multi-Platform and Paid Content Strategies 29
payment). Across Europe, digital kiosks are growing to be a viable option for
newspaper and magazine distribution across various channels and (increas-
ingly mobile) devices, for example, GoPress in Belgium and France, Relay in
France, Piano Media in Slovenia, and Orbyt and Kiosko y Más in Spain.
In order to address the posed questions regarding multi-platform and
paid content strategies of Spanish newspapers with an emphasis on the role
of digital kiosks, this article employs a quantitative, explorative approach.
Data regarding the means of digital distribution from 88 Spanish newspa-
pers4 was collected in November 2012 via desktop research. The means of
distribution as distinct strategic options are split into three dimensions: The
packaging of content (e.g., individual articles and flow as pull-models versus
packaged units, such as e-papers based on pdf or apps), the distribution
channel where platforms (mainly newspaper websites, digital kiosks), and
the targeted device (computer, smartphone, tablets) are differentiated, and

the access/revenue model (free, freemium, paywall, metered model). The
study is based on theoretical approaches and empirical findings regarding
business models for online newspaper distribution in general as well as paid
content and multiple platform strategies in particular which will be discussed
in the following sections.
LITERATURE REVIEW
Business Models for Online Newspaper Distribution
In recent years, business models have been the focus of attention for both
academics and practitioners. In the management academia there is a lack
of consensus on what a business model is (Magretta, 2002; Casadesus &
Ricart, 2009; Zott, Amitt, & Massa, 2011), which can be extended to media
economics or media management studies. Generally speaking, a business
model is a conceptual tool that clarifies the business logic of a particu-
lar entity (Osterwalder, Pigneur, & Tucci, 2005). Thereby, a business model
defines the way a company generates value (value creation) and how it cap-
tures some of this value as profit (value capture; Teece, 2010). For Timmers
(2006), a business model refers to an integrated system consisting of prod-
ucts, services, and information flows, including all participants, their roles,
their potential benefits, and the corresponding revenue sources.
From a theoretical point of view, the first step in differentiating between
business models for online newspapers is the revenue model, a key factor in
all the varying concepts of business models. The main distinction is based on
whether the customer is involved in an economic transaction or not leading
to the dichotomy of free versus paid content.
The free business model is based on advertising support, which allows
for free access and consumption. Most of the online newspapers hold on
to a free business model when it comes to digital distribution (Chyi, 2005;
Picard & Zotto, 2006), although the online advertising revenues generated
by the news organizations have been insufficient to supplement the loss of
print advertising revenue in the wake of the World Wide Web (Chyi & Sylvie,
2001; Chyi, 2005, 2012; Nielsen, 2010; Newspaper Association of America
[NNA], 2010). As a consequence, various models for paid content have been
developed to refinance content production and distribution:
Paywalls are presumably the riskiest model as none of the content is
free of charge (Filloux, 2011). It admits different revenue models such as
subscription (weekly, monthly, or annually) or pay-per-view, which includes
pay per day/week or per article via micropayment. The Times of London, the
first newspaper to implement a paywall, experienced an almost immediate
decline in online traffic by 90% (Goyanes, 2012).5 Therefore, hybrid solutions
as a compromise between the free and the paid model have reached some
popularity:
Freemium means newspapers give away certain content for free, and
put other behind a paywall. A prominent example is The Wall Street Journal,
where value derives from top financial news that cannot be found elsewhere,
while general news on the website is free.
The metered model allows free access to a certain number of articles in
a given period of time. Once this amount is exceeded the newspaper invites
the reader to subscribe to one of the multiples packages. One of the most
prominent examples is the Financial Times that launched the metered model
in October 2007.6
Choosing between these different options is one of the crucial steps in
the strategic decisions that emerge when newspapers offer online content
(Bleyen & Van Hove, 2007). However, reaching the largest potential audi-
ence and thereby benefiting from economies of scale and scope requires the
distribution across various channels.
Paid Content Strategies across Channels

News distribution and consumption across multiple media platforms refer to
the concept of media convergence, which emphasizes the diminishing tech-
nological boundaries of media that enable content to be presented on various
media platforms. Technological change is a constant feature in media indus-
tries and a number of studies have been conducted on how organizations
have adapted to deal with convergence and growth of the Internet (Küng,
2008; Aris & Bughin, 2009). Across media, many organizations are employ-
ing a diversified multi-platform approach to the production and distribution
of content (Singer, 2004; Doyle, 2010). This corresponds to findings that
some core segments of the population rely on multiple news media (Diddi
& LaRose, 2006, Pew Research Center, 2010) which leads to an increasing
polarization of news consumption (Webster, 2005; Sunstein, 2007).
The underlying rationale of multi-platform strategies is to continuously
reach out to the audiences to prevent losing them (Chyi & Chadha, 2011).
As audiences themselves are fragmented by technologies (such as tablet,

smartphone, e-reader, etc.) news organizations must utilize different tech-
nologies for the distribution of their news products. In fact, 92% of the
American adults get news content from multiple platforms on a typical day,
half of those using four to six platforms daily.7 Whereas, news viewership
and readership in traditional media are declining, when online and mobile
consumption are included, consumers actually spend more time with news
products (Pew Research Center, 2010).Consumers may prefer to read the
news online but it is most important that they do continue to read the news
(Chyi & Chadha, 2011).
In consequence, strategic decisions are not only required regarding the
revenue model but also need to address the choice of distribution platforms
and focussed device(s) (personal computer, tablet, smartphone, e-reader,
etc.) and content packaging with respect to preferences of the targeted audi-
ence(s). Platform choices include a variety of app stores, such as Apple’s
Newsstand, Amazon, or Google Play Magazines, which are basically digital
kiosks that handle the technical distribution and clearance, usually in return
for a fixed share of the revenues as well as aggregators that offer content
from various news sources in a single application. Cooperation on these
platforms creates interdependencies that often restrain strategic choices.
As noted in the introduction the Spanish newspaper industry developed its
own digital kiosks which play a vital role in the paid content strategies
of newspapers in Spain. Orbyt was launched in 2010 by Unidad Editorial,
publisher of El Mundo, Spain’s second largest newspaper. In response, El
Mundo’s main competitors, El País (group Prisa) and ABC (group Vocento),
>Endnote 9 then formed an editorial alliance with other publishing groups
(e.g., Zeta, Axel Springer, RBA) to develop Kiosko y Más in 2011.8
However, to our knowledge, there are no studies that stress empirically
and systematically how traditional newspapers are adapting their product-
portfolio to the new options in the digital environment in terms of paid
content strategies across different channels. Most studies on business models
of online newspapers have focused on the willingness to pay for informa-
tion, new economic approaches to monetize the audience, different revenue
systems or multi-platform news consumption. Still, there is a lack of studies
that analyze multi-platform strategies in depth taking into account not only
business models, but also distribution channels as well as packaging of con-
tent. This article addresses this gap by analyzing the different distribution
channels and strategies of Spanish newspapers.
METHOD
Data was collected from websites of all newspapers in the sample as well
as from the two digital kiosks (Orbyt and Kiosko y Más) developed in
Spain. All 88 Spanish newspapers with a print version audited by OJD9 were
included in the sample. Information regarding all means of digital distribution

and descriptive variables concerning the newspaper (e.g., ownership) was
searched and retrieved for each newspaper individually by the principal
researcher in November 2012. Circulation numbers of the print edition for
2012 were retrieved from the OJD website.10
Study Dimensions and Variables

DESCRIPTIVE VARIABLES
The name of the newspaper was specified as well as the names of the cor-
porations owning them (according to each newspaper’s information). The
latter allowed for conclusions on how many newspapers are owned by
each corporation. Based on those numbers,11 the newspapers were cate-
gorized by their organizational background as being either part of a large

(newspaper) corporation (owning five newspapers or more), part of a small
corporation (owning two to four newspapers), or not being part of a cor-
poration that owns several newspapers (for brevity, these will be referred
to as newspapers that are not part of a [newspaper = NP] corporation).
It seems plausible to assume that this specific organizational background has
an influence on digital distribution strategies. Corporations that own sev-
eral newspapers might pursue consistent strategies in all their newspapers
but also hold more resources for implementing means of distribution, for
example, apps, and negotiation with third parties, such as digital kiosks.
Furthermore, national newspapers were distinguished from regional news-
papers. The net circulation average for each newspaper in 2012 was retrieved
from the OJD website.12
STRATEGY DIMENSION 1: CONTENT AND PACKAGING
The content that is distributed online by Spanish newspapers consists of

articles written for the print version of that paper (“traditional news”) and
specific online articles. They are distributed as packaged units in pdf-based
or app-based e-papers (exclusively containing traditional news) or as a non-
packaged compilation of articles on a website or within an app, mostly
represented by a headline and first sentences with the option of viewing
the full article on user command, in this article referred to as “flow.” A
third option are individual articles which are part of the “flow” but may also
be represented as links from external websites or such platforms as digital
kiosks.
STRATEGY DIMENSION 2: DISTRIBUTION CHANNELS
The distribution of online news requires an online platform or server that

provides the content as well as an electronic device for the reception of
the content. Content is mostly customized to meet the specifications of

the targeted device (stationary computers or laptops, smartphones, tablets).
The online platform can either be the newspapers website, a digital kiosk
(Orbyt, Kiosko y Más) or an app store as an intermediary. Other platforms,
for instance, external websites with links to articles or aggregators, such as
Google News, are also to be considered as means of distribution. However,
since a contract-based relationship with the newspapers cannot be presup-
posed for those third parties, we exclude these means of distribution from
the analysis.
STRATEGY DIMENSION 3: ACCESS/REVENUE MODEL
The possible revenue models for the online distribution of journalistic con-
tent has already been elaborated upon (free versus freemium, paywall,
metered model). For this analysis the focus of interest lies on the level of
individual means of distribution and types of content which are offered as
either free or paid content.
STRATEGY VARIABLES
During the data collection information regarding the distribution channels

and access/revenue information was gathered for all of the described types
of online content and forms of packaging. Not all of the possible combi-
nations deriving from the strategy dimensions were found, such as, free
e-papers on every channel. Those were excluded from the analysis as well
as combinations that were present in all newspapers because there is no
variance in those variables, for example, browser-based free “flow” for com-
puters and laptops. All newspapers in the sample have a freely accessible
website in the style of an online newspaper. The following combinations
were empirically evident and varied within the sample (Table 1).
All information was coded in dichotomous and categorical variables
to allow for the maximum range of analytic possibilities. In addition, new
variables could easily be generated, for example, “presence in a digital kiosk”
(independent from the type of content).
Data Analysis
Beyond descriptive statistics for analyzing distributions, frequencies, and co-
variations of attributes in the sample a hierarchical cluster analysis (Ward
method) were conducted to identify different types of newspapers based on
the options for distribution of online content that they employ. Hierarchical
cluster analysis allows segmentation of various types of variables. Due to
TABLE 1 Strategy Elements in the Online Distribution of Newspaper Content
Content/Packaging Distribution Channels Access/Revenue
E-papers (pdf-based electronic • Orbyt (virtual kiosk) Paid (subscription or per

versions of the print versions • Kiosko y Más (virtual issue)∗
with traditional news content) kiosk)
• Newspaper website
Individual articles (represented by • Orbyt Paid (one-off payment)
links on distribution platforms) • Kiosko y Más
App (packaged traditional news for • Orbyt Paid (subscription or per
smartphones and tablets only) • Kiosko y Más issue)∗
• Newspaper website
“Flow” (compilation of individual • Newspaper website Free
articles represented by • App
headline/preview)
∗
Apart from monthly subscription available in both kiosks (4.99 C–24.99C), Orbyt offers a one-day-
subscription (0,89C) while Kiosko y Más sells individual issues of digital newspapers (0.79 C–1.79C).
In part, there are discounts for the subscription of multiple newspapers and longer subscription periods
(e.g., 6 or 12 months).
the sample size not all variables could be included in the cluster anal-
ysis. This analysis is based exclusively on dichotomous variables which
were again chosen based on their theoretical relevance for paid content
strategies.
Frequencies were run within the cluster analysis of organizational back-
ground, circulation and the application of means of distribution that were
not included in the cluster analysis. Between-cluster comparisons applied
chi-square analysis for categorical variables and an analysis of variance for
the continuous variable (circulation) in order to ascertain differences among
the clusters.
RESULTS
Newspaper Profile
Among the 88 Spanish newspapers in the sample there are four national
newspapers and 84 regional newspapers. Almost half of the newspapers
(48.9%, n = 43) belong to large corporations that own at least five news-
papers,13 13 newspapers (14.8%) are part of five smaller corporations
(owning each 2–4 newspapers) and 32 newspapers (36.4%) are not part
of a newspaper corporation (i.e., they are the only newspaper owned by
their corporation).
Net circulation averages range from 1,183 to 324,814 copies (M =
24,498.45, SD = 47,184.05). More than half of the newspapers (53.4%, n =
47) distribute less than 10,000 copies per day, one-third less than 5,000 copies
(33.0%, n = 29).
Employed Means and Channels of Distribution and Organizational

Influences
As mentioned in the previous section, all newspapers provide free access to
online news on their website as a “flow” for browsers, mainly on stationary
computers and laptops. Most newspapers offer a pdf-based e-paper as a
digital version of their traditional print newspaper (84.1%, n = 74) via the
digital kiosk Kiosko y Más (n = 48), their own website (n = 44), and/or
the virtual kiosk Orbyt (n = 20). Obviously, 23 newspapers distribute their
e-papers on more than 1 platform.
Next in line in terms of popularity among Spanish newspapers are paid
apps for smartphones and tablets for the distribution of traditional news
articles. Sixty-five newspapers (73.9%) offer such a paid app, most of them
via Kiosko y Más (n = 49), 19 via Orbyt, and only 8 newspapers provide the
app directly on their own website.

More than half of the newspapers offer a free app for smartphones
and tablets (54.5%, n = 48). The contents derive from the free flow that
is also distributed on the newspapers’ websites. A cross-tabulation shows
that there are 18 newspapers offering neither a free nor a paid app. On the
other hand, 22 newspapers offer only a paid app, all of them via Kiosko y
Más.
The option to post links to individual articles in the digital kiosks
appears to be least important. Only one-third of the newspapers (36.4%,
n = 32) makes use of it. Kiosko y Más is slightly more popu-
lar, with 18 newspapers posting there compared to 14 newspapers on
Orbyt.
As to the general importance of digital kiosks, 71.6% of the newspapers
(n = 63) employ them for the distribution of online content. As the numbers
above reflect, Kiosko y Más is the more popular platform with 43 news-
papers on some kind of shelf (54.6% of all newspapers present in digital
kiosks), 20 newspapers (22.7%) are on Orbyt, 5 newspapers are present in
both kiosks. Tendentially, digital kiosks as a means of distribution are more
likely to be employed by newspapers that are part of a large corporation
(79.1%) than newspapers that are not (59.4%), although the difference is not
significant (chi-square). Equally, the net circulation average is much higher
in newspapers present on digital kiosks (m = 29,972) than in those who are
not (m = 8,821.91; T = -3,058; df = 67,367; p < .005).
Cluster Model (Ward Method)

The cluster analysis is based on five dichotomous variables that repre-
sent the presumably most important strategic elements concerning content,
means and channels of distribution of online content: Paid e-paper via the
newpaper’s own website, paid e-paper via kiosk (regardless which kiosk is
TABLE 2 Employed Strategic Elements in each Cluster (Means∗ )
Free Paid Paid

No. of E-paper Smartphone/ SP/Tablet SP/Tablet
Newspapers via E-paper Tablet App App via App via
in Sample Website via Kiosk and Flow Website Kiosk
1: Digital avant-garde 24 (27.3%) .00 1.00 1.00 .00 1.00

2: Allrounders 23 (26.1%) 1.00 1.00 .74 .26 1.00
3: Kiosk-convenients 16 (18.2%) .00 1.00 .00 .00 1.00
4: Independents 25 (28.4%) .44 .00 .28 .08 .00
Note. ∗ In dichotomous variables means can be read as the fraction of cases within the clusters employing
this element.
employed), free app and flow for smartphones and tablets, paid app with
print-content for smartphones and tablets via the newspaper’s own website,
and paid app with print-content for smartphones and tablets via digital kiosk.
Each cluster differs regarding the employment of the following strategic
elements (Table 2).
CLUSTER 1: DIGITAL AVANT - GARDE
These 24 newspapers use the latest and most advanced distribution options,
especially digital kiosks where they offer their traditional newspaper/news
as e-papers and apps for smartphones and tablets. A free app with flow
content is also offered by all of them. None of these newspapers uses their
website for the distribution of traditional news (e.g., El Pais, ABC, El Correo).
CLUSTER 2: ALLROUNDERS
These 23 newspapers appear to explore all available channels for the distri-
bution of news—digital kiosks as well as their own websites or app stores.
No group is more involved in the distribution of traditional news via their
websites than that of the allrounders (e.g., El Mundo, La Razon, Ara.cat).
CLUSTER 3: KIOSK-CONVENIENTS
These 16 newspapers appear to prefer ready-to-use-solutions by digital
kiosks. They do not engage in independent distribution activities on their
own website or with their own free app and flow (e.g., Ultima Hora, El
Progresso, La Gaceta Regional de Salamanca).
CLUSTER 4: INDEPENDENTS
These 25 newspapers stand out by their complete abstinence from digi-
tal kiosks. Some of them create distribution systems based on their own
websites to offer e-papers or apps for smartphones and tablets.
Within-cluster analysis indicates that the digital avant-garde (C1) is pri-

marily constituted by large-corporation newspapers (87.5%, n = 21) as are
the kiosk-convenients (C3; 50.0%, n = 8). A deeper look into those large
corporations reveals that all newspapers of the corporation “Vocento” (n =
12) and more than half of the “Prensa Iberica” newspapers (61.5%, n =
8) are digital avant-garde. The remaining five “Prensa Iberica” newspapers
are allrounders. However, allrounders and independents are mostly news-
papers whose corporation does not own any other newspapers. National
newspapers are to be found in equal numbers (two each) among the digital
avant-garde (C1) and the allrounders (C2).
The net circulation average varies most within the digital avant-garde,
followed by the allrounders. With lower maximum net circulation aver-
ages there is far less variation within the kiosk-convenients (C3) and the
independents (C4). As Table 3 shows, the core of these clusters (C3 and
C4) are newspapers with a net circulation average below 10,000 copies,
while most of the digital avant-garde are newspapers with a circulation
between 10,000 and 40,000 copies (50.0%). allrounders cover all types of
newspapers regarding circulation, with a tendency towards newspapers with
a higher circulation.
Almost all of the kiosk-convenients prefer Kiosko y Más (93.8%, n =
15), as two-thirds of the digital avant-gardes and half of the allrounders do.
One-third of the digital avant-garde and a quarter of the allrounders can be
found on Orbyt. Only among the allrounders there are newspapers using
both kiosks.
TABLE 3 Organizational Profile within Clusters
C1: Digital C2: C3: Kiosk- C4:

Avant-Garde Allrounders Convenients Independents
Organizational background
Part of large NP corporation 21 (87.5%) 5 (21.7%) 8 (50.0%) 9 (36.0%)
Part of small NP corporation 0 6 (26.1%) 4 (25.0%) 3 (12.0%)
Not part of NP corporation 3 (12.5%) 12 (52.2%) 4 (25.0%) 13 (52.0%)
Net circulation average (M) 40,324 34,633 7,745 8,821
Net circulation 2,813 2,898 1,183 1,876
average (Min/Max) 324,814 206,007 31,138 28,454
Net circulation average (SD) 70,854.73 48,359.40 7,566.39 6,773.98
Net circ. average <5,000 4 (16.7%) 6 (26.1%) 9 (56.3%) 10 (40.0%)
Net circ. average 4 (16.7%) 4 (17.4%) 1 (6.3%) 9 (36.0%)
5,000–10,000
Net circ. average 12 (50.%) 6 (26.1%) 6 (37.5%) 6 (24.0%)
10,001–40,000
Net circ. average >40,000 4 (16.7%) 7 (30.4%) 0 0
Virtual kiosk presence
Kiosko y Más 16 (66.7%) 12 (52.2%) 15 (93.8%) 0
Orbyt 8 (33.3%) 6 (26.1%) 1 (6.2%) 0
Kiosko y Más and Orbyt 0 5 (21.7%) 0 0
Note. Numbers and percentages run vertically to equal 100%.
Between-cluster analysis shows a significant relationship between the

organizational background and the type of digital strategy represented by
the clusters (χ 2 [6] = 26,036; p < .001). The digital avant-garde contains
the highest percentage of newspapers that are part of a newspaper cor-
poration (48.8%), while only few of these newspapers can be found among
the allrounders. Newspapers that are part of a small corporation are mostly
allrounders; none of them belongs to the digital avant-garde. Non-corporate
newspapers are most likely independents or allrounders in terms of digital
distribution.
Circulation varies between clusters. The digital avant-garde and the
allrounders report significantly higher net circulation averages than the kiosk-
convenients and the independents in the analysis of variance (F(3) = 2, 923,
p < .05). Newspapers with a net circulation average above 40,000 copies are
only to be found among the digital avant-garde (36.4%) and the allrounders
(63.6%; see Table 4). The smallest newspapers in terms of circulation tend
to be rather independents (34.5%) or kiosk-convenients (31.0%), although
some of them are also allrounders (20.7%) and part of the digital avant-
garde (13.8%). There is no significant pattern regarding the organizational
background of the small newspapers “swimming with the big fish” in cluster
1 and cluster 2. Three of the four small newspapers (<5,000 average net
circulation) in the digital avant-garde are part of a large corporation, one is
the only newspaper owned by its corporation. The small allrounders are half
small-corporation newspapers and half not part of a newspaper corporation.
TABLE 4 Organizational Profile between Clusters
C1: Digital C2: C3: Kiosk- C4:

Avant-Garde Allrounders Convenients Independents
Organizational background
χ 2 (6) = 26,036; p < .001
Part of large NP corporation 21 (48.8%) 5 (11.6%) 8 (18.6%) 9 (20.9%)
Part of small NP corporation 0 6 (46.2%) 4 (30.8%) 3 (23.1%)
Not part of NP corporation 3 (9.4%) 12 (37.5%) 4 (12.5%) 13 (40.6%)
Net circulation average (M) 40,324 34,633 7,745 8,821
F(3) = 2,923; p < .05
Net circulation average (SD) 70,854.73 48,359.40 7,566.39 6,773.98
Net circ. average <5,000 4 (13.8%) 6 (20.7%) 9 (31.0%) 10 (34.5%)
Net circ. average 4 (22.2%) 4 (22.2%) 1 (5.6%) 9 (50.0%)
5,000–10,000
Net circ. average 12 (40.%) 6 (20.0%) 6 (20.0%) 6 (20.0%)
10,001–40,000
Net circ. average >40,000 4 (36.4%) 7 (63.6%) 0 0
Virtual kiosk presence
χ 2 (4) = 14,136; p < .008
Kiosko y Más 16 (37.2%) 12 (27.9%) 15 (34.9%) 0
Orbyt 8 (53.3%) 6 (40.0%) 1 (6.7%) 0
Kiosko y Más and Orbyt 0 5 (100%) 0 0
Note. Numbers and percentages run horizontally to equal 100%.
Preferences for a specific type of kiosk vary significantly between clus-

ters (χ 2 [4] = 14.136, p < .008). Kiosko y Más is quite evenly utilized by all
clusters present in kiosks and definitely the more popular platform among
newspapers. Orbyt, on the other hand, appears to rather draw the digital
avant-garde (53.3%) and the allrounders (40.0%). Reflecting their general
strategic choices, only allrounders are present on both Kiosko y Más and
Orbyt (n = 5).
Corporate Influences on Paid Content Strategies

The cross tabulation of corporations and clusters reveals that all newspa-
pers belonging to one corporation are part of the same cluster. The only
exception is “Prensa Iberica” that owns eight digital avant-garde newspapers
and five allrounders, differing only with regard to e-paper availability on the
newspaper website. Furthermore, newspapers within one corporation all use
the same digital kiosk. The four “Grupo Zeta” newspapers are all present on
Kiosko y Más as well as on Orbyt. With very few exceptions the surveyed
means of distribution are all adopted uniformly within each corporation.
DISCUSSION
Developing consistent paid content strategies is essential for newspapers not

only in Spain but in all industrialized countries under the current business
conditions. Numerous studies on business models and paid content strate-
gies of online newspapers have demonstrated that free business models and
advertising support cannot monetize the audience sustainably. Furthermore,
most news organizations were and are unable to operate their digital means
of distribution without cross-subsidization, for instance, from the print news-
paper. Hence, newspapers have been experimenting with business models
as well as distribution channels and different ways of packaging content.
This article analyzed multi-platform paid content approaches of Spanish
newspapers in depth in order to shed light on the adoption of different
strategic options, on emerging strategies that indicate the industry is out-
growing the experimental stage and on organisational factors that influence
the employment of strategies.
The means of distribution this study is based on were deducted
from prior studies and business model theories and afterwards inductively
extended and differentiated. All deriving variables that created no variance
were excluded from further analysis. Paid content strategies include the dis-
tribution of pdf-based digital versions of traditional print newspapers as
single issues, subscriptions and paid app for smartphones and tablets, both
of which are offered by most Spanish newspapers. More than half of the
newspapers provide a free app with supposedly less exclusive content that
is also distributed for free on the newspapers’ websites. Digital kiosks play a
viable role in the distribution of digital content, 71.6% of the newspapers are
present there with e-papers and/or an app. In general, Spanish newspaper
organizations appear to embrace new options for the digital distribution of
content and thus make use of new chances to reach their readers. Notable
is the complete absence of the freemium and metered model (for within
one platform as the newspapers website) which might be in need of fur-
ther research as these options gain significance in other online newspaper
markets.
Cluster analysis then revealed four distinct clusters of newspapers in
terms of online distribution activities, which can be interpreted as dis-
tinct strategy types. The “digital avant-garde” is universally present with the
latest and most advanced distribution options with an emphasis on digi-
tal kiosks for paid content and additionally a free app. “Allrounders” use
all options, including distribution of paid content on their own websites.
“Kiosk-convenients” appear to focus on digital kiosks for the distribution of
paid content, but employ no further means of distribution. The most dis-
tinct characteristic of “independents” is that they are not present in kiosks.
To some extent, they employ other means of distribution instead. These
results underline the importance of digital kiosks for empirically differenti-
ating paid content strategies. It is to be expected that the role of third-party
platforms and aggregators will increase in the future. Above all, evidence of
coherent patterns in distribution activities indicates a certain degree of mat-
uration in terms of newspaper organisations’ strategies and the market for
online news content.
In terms of the adoption of different forms of content packaging, dis-
tribution channels, aggregators, and intermediaries, however, great variance
was found between different newspaper organizations. There are significant
differences as to which types of newspapers employ which strategy, such
as, belong to which cluster. The organizational background in terms of the
number of newspapers a corporation owns, for example, appears to have a
strong influence on the paid content strategy. Large corporation newspapers
are much more likely to employ a consistent strategy constituted by the dis-
tribution via at least one digital kiosk and applications for mobile devices
while newspapers that are not part of a larger corporation rather experiment
with browser-based means of distribution via their own websites. Moreover,
results show that the strategies employed are highly consistent throughout
the newspapers owned by one corporation. Regarding the choice of the
digital kiosk for distribution, consistencies within corporations may in part
be explained by strategic alliances. In fact, the large corporations that were
part of the development of Kiosko y Más are all present in that virtual kiosk
only. This, of course, is a relevant strategic advantage for the platform which
is subject to network and scale effects.
A plausible conclusion is that publishing corporations influence individ-

ual papers owned by them in their choice of means of distribution. This is not
necessarily a result of corporate directives but may also be due to available
resources, for example, resources for the development of apps or scale-
effects in production and distribution systems as well as in deals with third
parties, such as digital kiosks. Economies of scale appear to be relevant not
only in the production of content but to a large extend also in the develop-
ment of and access to new distribution technologies. Large organizations (in
terms of resources) therefore profit from a market development towards digi-
tal distribution. At the same time these developments form new entry barriers
for smaller newspapers due to the high investments necessary to compete in
the digital market. Especially those smaller newspapers that are not part of a
larger corporation therefore tend to pursue cheaper options which provide
less visibility and attention. The development of multi-platform distribution

for paid content may in consequence contribute to a higher concentration in
the newspaper market.
Limitations
With the type of data collection employed in this article some researcher
bias can be assumed. We systematically searched the newspapers’ websites
and the two digital kiosks that are most important in terms of market share.
However, alternative distribution platforms were excluded unless a clear link,
for example to a third-party app store, was given. Hence, emerging platforms
and latent means of distribution could have only been discovered if they
were prominently promoted on websites or platforms. However, considering
the explorative nature of this study a focus on dominant strategic options
seems appropriate.
The quality of the data on circulation and ownership could not be defi-
nitely verified. Audit periods varied between newspapers and more complex
ownership structures are possible when convergence and globalization of
media markets is taken into account. Thus, conclusions about relationships
between organizational background, resources, and paid content strategies
are to be considered as preliminary hypotheses.
Suggestions for Future Research

The next step in our research will be a an analysis of paid content strategies
across channels in other European countries to widen the focus of research
and gain more robust results and permit comparative research.
While this study set circulation as a descriptive variable to differentiate
clusters, future studies might examine the strategies’ outcomes in terms of
circulation and sales as well as impacts of the adoption of new means of
distribution in a longitudinal analysis or a quasi-experimental design.
Currently, most of the paid news content in Spain is based on one-off

payments (Reuters Institute, 2013) in accordance to the general dominance
of newsstand purchases. Still, newspapers and aggregators offer and aggres-
sively promote subscription options, which provides an opportunity to
observe if and how preferences regarding purchase options for news content
change.
Finally, including quantitative and qualitative surveys of decision makers
in those newspaper corporations and digital kiosks may lead to a more
thorough understanding of strategic choices and decision-making.
NOTES
1. Between 2007 and 2011, newspaper circulation in Spain dropped by 19% and newsstand sales
went down by 23%, which translates to a 2011 market volume of less than 1 billion copies per year and
total revenues of 2.02 million Euros (approximately 2.7 million US$; FAPE, 2011).
2. That is, with an audited print edition.
3. In the sense of “emergent” strategies as a consistent pattern of decisions and actions rather than
rational planning (Mintzberg, Ahlstrand, & Lampel 1998).
4. These include all Spanish online newspapers with a print version audited by OJD (Oficina de
Justificación de la Difusión, the Spanish industry body that audits print publications and verifies their
circulation).
5. The last data published by News International (February 2012) suggested more than
120,000 digital subscribers.
6. The limit is set to eight articles for registered readers. So far, FT.com has more than 4 million
registered users, and 313,000 of them pay for content (for Q3 2012). This translates to C30m to C35m
extra revenue. Digital content sales now make up 47% of revenue for the group (for Q3 2012).
7. In Spain, various online media are used for news consumption as well: 56% of Spanish adults
access news via computer, 35% via smartphone, and 13% via tablets (Reuters Institute 2013; n = 979).
Multiplatform use might not yet be as prevalent in Spain as in the United States, but it can reasonably be
expected to grow.
8. Unfortunately, very little information on the usage and users of the platforms was available by
December 2013. The Unidad Editorial-titles (El Mundo, Marca, Expansión) had about 100,000 subscribers
on Orbyt, three quarters of which have a digital-only subscription (www.orbyt.es).
9. Oficina de Justificación de la Difusión (the Spanish Audit Bureau of Circulation).
10. http://www.introl.es/medios-controlados/; circulation numbers for digital publications are
unfortunately available only for two daily general interest newspapers (Ara.cat and El Mundo).
11. Estimations, as corporations might own newspapers that are not audited by OJD.
12. The audit period differed: 51 newpapers were audited from January to December 2012, 34 news-
papers from July 2011 to June 2012, one newspaper from August 2011 to June 2012, and one newspaper
from April 2011 to June 2012. OJD indicated a net circulation average of zero for one newspaper for
November 2011. For this last case a “missing” was coded.
13. There are four major newspaper corporations in Spain: Prensa Iberica owns 13 different
newspapers, Vocento (12), Grupo Joly (9), Grupo Promercal (8).
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On: 26 December 2014, At: 05:26

International Journal on Media

A Taxonomy of Newspapers based

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To link to this article: http://dx.doi.org/10.1080/14241277.2014.900498

PLEASE SCROLL DOWN FOR ARTICLE

A Taxonomy of Newspapers based on

Hanover University of Music, Drama, and Media, Germany

This article examines Spanish newspapers’ means of digital distri-

The changing strategic environment is a continuing challenge for media firms

Address correspondence to Manuel Goyanes, Department of Journalism and Mass

the targeted device (computer, smartphone, tablets) are differentiated, and

Paid Content Strategies across Channels

As audiences themselves are fragmented by technologies (such as tablet,

included in the sample. Information regarding all means of digital distribution

Study Dimensions and Variables

gorized by their organizational background as being either part of a large

STRATEGY DIMENSION 1: CONTENT AND PACKAGING

The content that is distributed online by Spanish newspapers consists of

STRATEGY DIMENSION 2: DISTRIBUTION CHANNELS

The distribution of online news requires an online platform or server that

the content. Content is mostly customized to meet the specifications of

STRATEGY DIMENSION 3: ACCESS/REVENUE MODEL

During the data collection information regarding the distribution channels

TABLE 1 Strategy Elements in the Online Distribution of Newspaper Content

Content/Packaging Distribution Channels Access/Revenue

E-papers (pdf-based electronic • Orbyt (virtual kiosk) Paid (subscription or per

Employed Means and Channels of Distribution and Organizational

app directly on their own website.

Cluster Model (Ward Method)

TABLE 2 Employed Strategic Elements in each Cluster (Means∗ )

Free Paid Paid

1: Digital avant-garde 24 (27.3%) .00 1.00 1.00 .00 1.00

CLUSTER 1: DIGITAL AVANT - GARDE

Within-cluster analysis indicates that the digital avant-garde (C1) is pri-

TABLE 3 Organizational Profile within Clusters

C1: Digital C2: C3: Kiosk- C4:

Between-cluster analysis shows a significant relationship between the

TABLE 4 Organizational Profile between Clusters

C1: Digital C2: C3: Kiosk- C4:

Preferences for a specific type of kiosk vary significantly between clus-

Corporate Influences on Paid Content Strategies

Developing consistent paid content strategies is essential for newspapers not

A plausible conclusion is that publishing corporations influence individ-

less visibility and attention. The development of multi-platform distribution

Suggestions for Future Research

Currently, most of the paid news content in Spain is based on one-off

paying intent for multiplatform newspapers. International Journal of Media

Singer, J. (2004). Strange bedfellows? The diffusion of convergence in four news

Practice, 1(2), 208–226.

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