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New business models New business models and value and value propositions propositions

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Page 1: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

New business models New business models and value propositionsand value propositions

Page 2: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Why “newspapers”

New ways of New ways of seeing valueseeing valuePaid to free Paid to free Evening StandardEvening Standard

Young eats old Young eats old The IndependentThe Independent

Impact advertising pricing Impact advertising pricing De PersgroepDe Persgroep

Game market, sports bars Game market, sports bars EB, SPHEB, SPH

Page 3: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Why “newspapers”

PaywallsPaywallsChanged debate: right vs. wrongChanged debate: right vs. wrong

Perceived Perceived scarcityscarcity, building , building cross-media valuecross-media value

Thousands paying Thousands paying vs. millions viewingvs. millions viewing

What fitsWhat fits business model, culture business model, culture GuardianGuardian

Metered model Metered model = wide adoption = wide adoption FT, New York TimesFT, New York Times

Leverage eyeballs to Leverage eyeballs to transactionaltransactional model model Ringier, APNRingier, APN

Page 4: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

English Premier League siteEnglish Premier League site

Doubled Doubled engagement engagement in nichein niche

2,000,0002,000,000 uniques monthlyuniques monthly

RevenueRevenue: memorabilia, t-shirts, : memorabilia, t-shirts, fantasy football, booksfantasy football, books

Football communityFootball communityDAILY MIRROR | U.K.DAILY MIRROR | U.K.

Page 5: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Weight: 200,000+ members @ €10 per month

Results: Profit margins of 50%

Key: No. 1, 1st-to-market, best

AFTONBLADET | SWEDEN

Weight loss club

Page 6: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Paid to freeBeloved, local, London

Long circulation decline

2 free P.M. dailies close

Convert: 200K to 700K

Profitability in 2012

EVENING STANDARD | U.K.

Page 7: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Young eats oldClever, creative, declining

“i” at 20% of cover price

Packaged, miniaturized content

“i” soars: 271,648

Cannibalizes by 3,000-5,000

THE INDEPENDENT | U.K.

Page 8: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Newspaper-branded Newspaper-branded sports barsports barPartnersPartners with bar owner, no-cost with bar owner, no-cost

Football-crazed Football-crazed young readersyoung readers

Bait for Bait for subscription subscription campaignscampaigns

Advertisers Advertisers jump on boardjump on board

THE NEW PAPER | SINGAPORETHE NEW PAPER | SINGAPORE

Page 9: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

News audiences as News audiences as lead generatorslead generators

SCHIBSTED | SWEDENSCHIBSTED | SWEDEN

Owns Owns 16 assets 16 assets nationallynationally

2 newspapers 2 newspapers “good enough”“good enough”

Traffic aggregation, e-commerceTraffic aggregation, e-commerce

Blocket Blocket classifiedsclassifieds, Hitta , Hitta searchsearch

Digital company Digital company owns newspapersowns newspapers

Page 10: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Why “newspapers”

This presentationThis presentation1.1. Breaking through newspaper cultureBreaking through newspaper culture

2.2. Re-thinking what we are marketingRe-thinking what we are marketing

3.3. New business models and valueNew business models and value

4.4. What’s next for news industry?What’s next for news industry?

Page 11: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

What’s next?What’s next?

Page 12: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

What’s next?What’s next?Opportunities in printOpportunities in print

New product development strategyNew product development strategy

Core competenciesCore competencies

Learning rulebook for digital advertisingLearning rulebook for digital advertising

Preparing for smartphone boomPreparing for smartphone boom

Page 13: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Future of printFuture of printWill decline as mass-market vehicleWill decline as mass-market vehicle

Gradual reduction in frequencyGradual reduction in frequency

Gradual reduction in pages + formatGradual reduction in pages + format

How to preserve print for mass market?How to preserve print for mass market?

How much to find new opportunities?How much to find new opportunities?

WHAT’S NEXT?WHAT’S NEXT?

Page 14: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

What’s next?What’s next?Opportunities in printOpportunities in print

New product development strategyNew product development strategy

Core competenciesCore competencies

Learning rulebook for digital advertisingLearning rulebook for digital advertising

Preparing for smartphone boomPreparing for smartphone boom

Page 15: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

New product New product developmentdevelopmentHow many in pipeline at once?How many in pipeline at once?

1 big initiative or many small ones?1 big initiative or many small ones?

Time frame for success (print vs. digital)?Time frame for success (print vs. digital)?

Role of editorial?Role of editorial?

Loud vs. soft launches?Loud vs. soft launches?

WHAT’S NEXT?WHAT’S NEXT?

Page 16: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

What’s next?What’s next?Opportunities in printOpportunities in print

New product development strategyNew product development strategy

Core competenciesCore competencies

Learning rulebook for digital advertisingLearning rulebook for digital advertising

Preparing for smartphone boomPreparing for smartphone boom

Page 17: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Core competenciesCore competenciesCompanies that Companies that invent new marketsinvent new markets, , shift consumer choiceshift consumer choice

Competencies engine for Competencies engine for new business new business developmentdevelopment

Competencies spawn Competencies spawn unanticipated unanticipated productsproducts

WHAT’S NEXT?WHAT’S NEXT?

Page 18: New business models and value propositions. Why “newspapers” New ways of seeing value Paid to free Evening Standard Young eats old The Independent Impact

Competencies Competencies determine productsdetermine productsJournalismJournalism

Story generationStory generation

StorytellingStorytelling

CommunicationCommunication

WHAT’S NEXT?WHAT’S NEXT?