Ownership and business models of European news media

This study explores how the identity of shareholders affects the business model design of European news media start-ups. A comparative case study method was used to compare the business models of five entrant firms with diverging types of ownership. News media start-ups in five European countries De Correspondent, Meclor, El Espanol, Watson and The Conversation were selected as cases of nonprofit, investor, employee and customer ownership. An association was found between these owner identities and particular business models designs. Different owners have diverging missions and profit destinations. This has consequences for which customer segment and value proposition is deemed most suitable. This paper puts forward a categorisation of three ideal types of start-ups with a particular ownership, customer segment and value proposition.