Community Business Models

Skoler’s article examines the issue of building new digital business models for the media industries, arguing that whilst we “search for new business models that involve paywalls, more video, the iPad, and wealthy donors…the most powerful emerging business driver in the new economy is community.” The Social Side of the Internet (a study published in 2011) found that 80% of internet users participated in group activity, (Skoler ,2011).This is a telling figure which demonstrates how technology has opened up new avenues of social interactivity and how positively society has responded. Skoler says that, “The companies flourishing in today's digital, social culture provide more than valued content to people. They deliver valued connections.” News organisations are encouraged to work towards offering the same value connections in their industry, not thinking of themselves solely as creators of news content, but as supporters and curators of the gathering and sharing of news through social streams. Such community models can then be monetised through display advertising or even perhaps, subscription fees. In the book industry one such interesting and innovative enterprise is the social networking group entitled Good Reads, which works along the same principles. Launched in 2006 it has become a hive for book discussion and recommendation between users. Readers are back in control and making use of recommendation tools that pick up on reading history, friend recommendations and opinion based reviews rather than sales figures. The site is experiencing continual growth and has 4.4 million registered users as of 2011, and it currently makes money offering targeted advertising opportunities to publishers and authors. With an impressive amount of users heavily invested in the site, Good Reads has a lot to teach the rest of the book industry about developing an enhanced, social reading experience for readers and building brand loyalty.