repurposing traditional content for a digital environment

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REPURPOSING TRADITIONAL CONTENT FOR A DIGITAL ENVIRONMENT - A REVIEW OF THE SUCCESS STORIES Sid Wahi, CEO CNBCAfrica.com

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Page 1: Repurposing traditional content for a digital environment

REPURPOSING TRADITIONAL CONTENT FOR A DIGITAL ENVIRONMENT - A REVIEW OF THE SUCCESS STORIES

Sid Wahi, CEO CNBCAfrica.com

Page 2: Repurposing traditional content for a digital environment

Second screen

Over The Top Platforms

Reduced Barriers to entry

Cord cutters and cord Nevers

Broadband and Internet Penetration

Fragmentation of content and channels

Trends

Page 3: Repurposing traditional content for a digital environment

TV consumption in the 1960’s

Page 4: Repurposing traditional content for a digital environment

TV consumption today

Page 5: Repurposing traditional content for a digital environment

The continued attraction of TV content and the demand from new consumers will

ensure that the pay-TV industry continues to grow despite concerns about over-the-top

(OTT) services and piracy.

Insights from PWC’s M&E Outlook 2013-2017

Page 6: Repurposing traditional content for a digital environment

The value of the television sector reached $2.74 billion in 2012.

“We expect television sector spend to reach the $3 billion mark in 2014, before pushing on past

$3.5 billion in 2017, a CAGR increase of 5.5% over the forecast period of 2013 to 2017.”

Insights from PWC’s M&E Outlook 2013-2017

Page 7: Repurposing traditional content for a digital environment

South Africa's status as a fast-growing market means its total TV revenue is

growing in importance in regional terms.

By 2017, it will account for 4.4% of total EMEA television revenues, up from 3.7% in

2012.

Insights from PWC’s M&E Outlook 2013-2017

Page 8: Repurposing traditional content for a digital environment

Satellite operator MultiChoice remains the dominant player in pay-TV.

However, rival TopTV is now backed by the Chinese operation StarTimes, and is aiming

to challenge MultiChoice.

Various new market entrants have recently indicated their intentions to launch satellite

television services.

Insights from PWC’s M&E Outlook 2013-2017

Page 9: Repurposing traditional content for a digital environment

Advertising is expected to experience consistent growth in South Africa between

2013 and 2017, with net television advertising revenues growing at an

estimated CAGR of 5.8% to reach $1.51 billion in 2017.

Insights from PWC’s M&E Outlook 2013-2017

Page 10: Repurposing traditional content for a digital environment

The rollout of digital terrestrial TV (DTT) will increase competition in the broadcast

sector. However indecision over the choice of technology standard and, more recently, a legal challenge by e.tv have delayed the

launch of DTT several times.

Insights from PWC’s M&E Outlook 2013-2017

Page 11: Repurposing traditional content for a digital environment

The Kenyan pay-TV market is still in its infancy, with penetration of 8% in 2012.

However, as competition increases, this will rise to an estimated 15% by 2017.

The total of 232 000 pay-TV households at the end of 2012 is expected to more than

double to reach 531 000 by the end of 2017.

Insights from PWC’s M&E Outlook 2013-2017

Page 12: Repurposing traditional content for a digital environment

Media: the Shifting Landscape

55

+

22%

45-54

54% 49%

33%

35-44

37% 44%

25-34

31%

54%

18-

24

27%

60%

TV

Online

Not only do young people prefer online, but a significant proportion are abandoning TV completely

Social media is increasingly being seen as a source of news

To assess the value of different sources of media, we should look to 3 different dimensions:

1. Speed

2. Accuracy

3. Analysis

Under-35s consider online best on all 3 dimensions

Consumers can no longer be considered ‘the audience’ – they are simultaneously readers, editors, &

marketers, especially the younger demographics

Exhibit 1: Main sources of news by age; source: Digital News Report 2015, Reuters Institute

Page 13: Repurposing traditional content for a digital environment

Challenges Faced by Media Cos. Today

Continuity

Addressability

Measurability

Interactivity

Context

From To

Broad Micro

Nielsen Ratings Impressions

One-way messaging Return Path

Ad message

disjointed from

adjacent context

Message tightly

coupled with

adjacent content

Single platform Multi-platform

Gra

nu

lari

ty

Inte

gra

tio

n

Page 14: Repurposing traditional content for a digital environment
Page 15: Repurposing traditional content for a digital environment

Increased choice has got content producers and platforms alike fighting for consumer interest

Page 16: Repurposing traditional content for a digital environment

Business Model Evolution

RoI-driven advertising

Traditional advertising

Consumer-centric marketing

Cross-platform reach

Insights

Impressions

Single platform Integrated cross-platform

Direct digital messaging to micro

level

Granular audience profiling,

targeting, & measurement

Legacy processes, brand

Transactional structures

Siloed sales & delivery

Traditional measurement

Integrated broad portfolio of mktg.

& advertising assets

Enhanced consumer engagement

Breaks through traditional clutter

Integrated, contextual campaigns

Bridges advertising & mktg. formats

Enables addressability,

measurement, interactivity for

desired consumer

Page 17: Repurposing traditional content for a digital environment

Business Model’s can overlap

Page 18: Repurposing traditional content for a digital environment

From Traditional to Emerging Models

Traditional Media Models Emerging Media Models

Content

Sources

Limited number of sources: commercial &

institutional producers, including professional

producers, journalists, & authors Unlimited: amateurs producing film & audio

using digital equipment; wide range of authors,

citizen journalists, & crowdsourcing voices,

enabled by social media; YouTube celebrities

Storage Analog Digital

Technology Dedicated, purpose-built hardware Cloud computing & generic hardware, with value

moved to the software layer

Production Manual editing & design processes Technology-enabled processes using tools like

Avid

Distribution

Limited number of distribution channels, with

publishers, distributors, TV cable companies, &

other intermediaries Infinite number of global distribution channels

through internet & satellite links

Platforms Few Platforms Many platforms: an evolving array of

increasingly interconnected displays, tablets,

computers, mobile devices, & more

Page 19: Repurposing traditional content for a digital environment

Content Management Systems (CMS)

CMS: software used to create, edit, manage, & publish content in a consistently organized

fashion

Standardized mechanism for handling content from draft to publish

Collaborative editing

Curating media around a piece of content

Flexible Application Programming Interfaces (APIs) to enable innovation

CMS is NOT a single piece of software

Importance of process & workflow

Apply technical resources to string existing tools together to meet the needs of the

newsroom at an organizational level

Custom or generic CMS?

Page 20: Repurposing traditional content for a digital environment

Example of the Digital Publishing Ecosystem

Disqus Tweetreach Hootsuite Storify

Amazon Web Services

Flickr

YouTube

Media & Content Management

Content Delivery Networks (CDN’s)

Social Media & Content Marketing

Monitoring & Analytics

Microsoft Azure

Umbraco WordPress Joomla Drupal

Brightcove

Limelight Akamai Cloudflare

Google Analytics Chartbeat

Page 21: Repurposing traditional content for a digital environment

Reconfiguring the Workplace – Integrated Newsroom

Open office spaces, news hubs & integrated newsrooms for continuous breaking-

news operation: hub-spoke model

Institutional legacy: does symbolic space matter?

Newsrooms must do more with less; multi-skilled content producers (not

journalists)

Reorienting physical space is one way of responding to a more digital

environment

Creating newsrooms that prioritize speed

Importance of right medium for right content

Page 22: Repurposing traditional content for a digital environment

NYTimes.com Case Study

NYTimes.com team repurposed newspaper content for the internet

Altering headlines, adding hyperlinks

Features with real-time news: Cyber Times, Presidential Elections, Bosnia,

Debt Ceiling, etc.

Discussion areas

Registration information allowed the site to serve advertisements to targeted

audiences

Initially not organized as an independent operating unit that reported directly to

corporate executives

Although NYTimes.com’s budget was integrated, it had its own P&L – the company

was taking too timid an approach to capturing a strong position on the internet

Employees referred to their software as ‘shovelware’

By early 1999, internet valuations were rising dramatically & it encouraged the

company to take its internet operations public

New York Times Digital (NYTD) – siloed internet operations

Page 23: Repurposing traditional content for a digital environment

NYTimes.com Case Study (contd.)

NYTD Executives expected that wrapping all the Company’s websites into a

single organization would promote exchange of information & learning

New plan called for extensive hiring from outside the Company

Until NYTD separated from the newspaper, most staffers were internal

transfers

Stock options, pension plan eliminated

Heavy investment in IT infrastructure

Bottom-up approach to budgeting: seeking new content & feature ideas

from across the organization

Review of usage data

Capacity for hiring & training constrained ability to work on ideas in the

pipeline

Continuous News Desk – breaking news on digital first

Audience tracking, integrating partnered content, & much smaller staff

complement

6 10 14

Page 24: Repurposing traditional content for a digital environment

NYTimes.com Case Study (contd.)

Business model: subscriptions or advertising

End of the internet boom & beginning of downsizing, layoffs, & pressure to approach

profitability

NYTD’s distinctiveness creating an ‘us vs. them’ culture

Cannibalizing newspaper circulation

Not enough collaboration between newspaper & NYTD sales employees

Positive Impacts

Expanding geographical reach

Readers could sample content before subscribing to newspaper

“It’s just good business to be friends with your cousins.”

Page 25: Repurposing traditional content for a digital environment

Crowdsourcing & News Blogs

How do we define the media industry today?

With increased freedom (of newsmakers, advertisers, & consumers), the space has

become incoherent

Andy Carvin’s work at NPR during the Arab Spring

Kickstarter

Crowdsourced information platforms

1. Operation Neptune Spear

2. Fukushima

SCOTUSblog vs. CNN

Digital migration thwarted by traditional processes & workflows

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

45K

35K

60

30K

50K

55K

40K 54K

42K 41K 47K

56K 56K 55K 53K

38K 37K 33K

55K

2001

55K 54K

42K

54K 54K

2002 2000 1999

Page 26: Repurposing traditional content for a digital environment

YouTube Celebrities

Survey by Variety magazine showed YouTube stars are

more popular than mainstream celebrities

YouTube stars score significantly higher than traditional

celebrities across a range of characteristics considered to

have the highest correlation to influencing purchases

among teenagers

Become

YouTube

Partner

Drive

Traffic

Revenue

share on

target

ads

Page 27: Repurposing traditional content for a digital environment

BuzzFeed Case Study

BuzzFeed’s staff has figured out how to write headlines & organize stories in ways that

resonate with readers

Content ranges from entertainment style to serious reporting

Relies on native advertising not banner ads

Average ad rates ~2x what most publishers demand

CMS ferrets out posts showing viral potential

Technology ensures that sponsored posts receive a social lift – sharing as endorsement

Future prospects?

$500M offer spurned!

50M

150M

100M

200M

201

5

201

1

201

3

201

4

201

2

2008 2009 201

0

Mobile

Online

0M

Page 28: Repurposing traditional content for a digital environment

Private and Confidential 28