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Eivind Thomsen, (Retired) Senior Vice President, Schibsted ASA, Norway ISOJ Austin; April 1 st 2011 Paywalls: Charging for news content. Does it work?

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4,9 million people 94% Internet penetration Daily Newspaper Readership 1,3 111% mobile penetration 64% on Facebook

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Schibsted 1839 1992 Schibsted Forlagene Publishing house Aftenposten Morning newspaper Verdens Gang Evening newspaper 1839 1860 1966

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From newspapers and books in Norway to an European media group We shall become the leading media company in Scandinavia *1994 # employees # countriesrevenuesresult 2 100 1 3 bill NOK 0.3 bill NOK

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6 2,069 Daily readership (000) 980 (47%) 506 (24%) 583 (28%) Source: TNS Gallup, Orvesto From 2007 from Internet survey Innovative approach to online news publishing Increasing reach of our strong media houses 2,442 1,250 (51%) 299 (12%) 893 (37%)

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7 Schibsted sites generate close to 28% of top 20 traffic in Norway Schibsted sites generate close to 25% of top 20 traffic in Sweden Source: TNS Gallup, Kiaindex Note: Week 50 of 2009 Schibsteds superior online traffic positions enable rapid and efficient launch of new concepts (e.g. Nettby, E24) Schibsteds properties The most used online sites in Norway and Sweden

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Note: percentages based on online and offline businesses contribution to revenues in FY2002 and last twelve months as of Q3 2010; online revenues in FY2002 include online newspapers and FINN Excluding corporate costs and eliminations Schibsteds online activities represents 30% of Group revenues and 53% of Group EBITA today Online 30% Offline 70% in 2002 Online 3% Offline 97% Unique position strong online footprint 8

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9 Revenue split Total revenue Q3 2010 MNOK 3,288

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Unique position strong online footprint Europe USA Digital/online share of revenues 2009 10

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11 Schibsted is now the global No. 3 in online classifieds, behind eBay and Craigslist Bloomberg Business Week, October 2010 One of the global leaders in Online classifieds

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+420 000 +120 000 +215 000 + 340 000 We observe an altered traffic pattern moving from net to mobile facilitated of iPhone and other smartphones Source: Uke 25 -31, TNS Gallup Metrix/Scores From desktop to mobile Average weekly UV VG NettAverage weekly UV VG Mobil Average 2009Average 2010

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What consumers will expect Always-On Access with Super-Fast Boot Time Near Zero Latency Access to Nearly All Information Day-Long-Plus Battery Life in Elegant Portable Devices Source: Morgan Stanley Internet Trends Report

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Consumption throughout the day: PC, iPhone and iPad VG Nett Monday - Thursday Evening consumption is so far dominating the iPad usage

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Succeeding in creating multiple revenue streams is key for the future of our journalistic ambition Online News product needs increased journalistic resources to sustain brand equity The Online Advertising Boom scenario might not be enough to create profit with increased cost New revenue streams needed to: - Close the gap and create profitability - Hedge the volatile advertising market VG.no and Aftonbladet.ses multiple revenue streams management key success factors Segment leadership Broad reach Strong brand Cost control Loyal traffic

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Combined, we are facing dramatic increase in operations and revenue streams complexity Music industry's learningOnline News industrys lesson 115 different products 19 million units CD sales constitutes 20% of total revenues Push a hit in all channels and formats As fast as possible! Tomorrow; Several smaller revenue streams User payment Online Advertising Mobile Advertising Web-TV advertising Print Subscriptions & single copy sales Print Advertising Related Services Etc Yesterday; Few huge value buckets Print Subscriptions & single copy sales Print Advertising Online Advertising

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Parts of the user payment adoption probably lies in the packaging of content on mobile devices Full accessibility, strong brand and offering premium experiences are all important areas driving willingness to pay

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Hamburger Abendblatt www.Abendblatt.de - iPad 8x3 Access to National and International news is free, access to unique regional and local content is behind paywall.

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TV Guide for iPad launched in app store September 1st.

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ONLINE SUBSCRIPTION AFTONBLADET PLUS BEST SELLERS: ARTICLE ABOUT HEALTH AND WELL BEING TRAVEL GUIDES LISTINGS - TAXATION ETC. TESTS: EVERYTHING FROM CARS.. TO SHAVERS... 115,000 SUBSCRIBERS 5$/MONTH

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MICRO PAYMENT PIECE BY PIECE ANOTHER WAY OF BUYING OUR PREMIUM CONTENT

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PAY PER VIEW We also sell TV programs and documentaries Example: Selling National Geographics and Factual TV documentaries. Aftonbladet gets 50% provision.

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(Pay) Clubs WEIGHT CLUB 30 3 MONTHS 406 MONTHS 5012 MONTHS 380,000 SUBSCRIBERS SINCE 2003

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E-commerce

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CUSTOMER FIGURES PREMIUM CONTENT PREMIUM JOURNALISTIC 55% 11% E- COMMERCE 34% CLUBS 20% AFTONBLADETS ONLINE REVENUES ARE USER REVENUES

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PAYMENT MODELS CLUBS SEK XX BASE PLUS SEK XX FREE MATERIAL PREMIUM PLUS SEK XX News Lifestyle

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Charles Darwin It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Survival of the fittest

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Thanks for your attention.