From Core Business to By-product Why German Media Companies Still Invest in Journalism

The emergence of digital technologies over the past two decades has brought about changes that threaten the very existence of german media companies. The journalistic business model is losing sales, and the decline in print circulations is making it successively difficult to earn money with journalistic products. Therefore, german media companies have been investing in business models that have no relation to journalism to generate growth for years – with success. Considering this development, it is astonishing from a purely economic perspective that media groups, which are increasingly developing into technology companies, are still clinging to the ailing journalistic business model at all. To examine their motives to do so, this study poses the following research question: "Why do media companies still invest in journalistic products today?" To answer it, the researcher conducted interviews with highlevel employees from media companies as part of a qualitative study. Analysis of the data revealed that media companies continue to invest in journalism mainly because they benefit economically from the brands their journalistic products represent. Other reasons like serving as a pillar of the democratic constitution or to help shape public discourse seem to be less important.