Revenue Models

Frank Frohmann

Chapter 4 in Digital Pricing, 2023, pp 83-101 from Springer

Abstract: Abstract Digital business models are leading to a major change in the revenue models of companies. In most sectors, revenue shares are shifting from products (hardware) to services, software, and digital content. Online advertising and data have also gained importance as revenue sources. The choice of a company’s revenue model depends to a large extent on which stages of the value chain it takes on. The position of power of a company within the value chain is of outstanding importance. The position within the value chain is ultimately decisive for who captures revenue potentials and to what extent. In digitized industries, direct contact with the end customer is critical to success. The consequence of the significant expansion of revenue models is that there are many more challenges for pricing than 10 years ago. In more and more cases, the first question is which offerings should be priced at all. This challenge must be optimized before the details of the pricing process can be addressed.

Date: 2023
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DOI: 10.1007/978-3-031-24591-6_4

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