Paid Content Media Zuora

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  • Businesses can subscribe to anything these days. Like Servorp for office space, RingCentral for business phone systems, Zendesk for helpdesk, and Concur for expense management
  • When we began Zuora 5 years ago, we never imagined how pervasive subscriptions would be. Besides, subscribing to moves and music and newspapers like the FT or the NYTimes, , today’s consumers can subscribe to just about anything – Car services like zipcar, Home Security with Iris (carried by Lowes), Online games (IGN entertainment), shaving (dollar shave club), and more!
  • I’d like to talk specifically about the Media industry and where we see the opportunity for media companies to thrive…
  • A few years ago, the debate about whether or not to charge for content online raged on. Most media outlets stuck with the theory that consumers would never pay for digital content, and that online content should always be free. But this idea of offering content for free was quickly killing the media industry. Major newspapers and publishing houses folded and went out of business.
  • Advertising revenues fell to an all time low. And digital advertising did not make up for the loss in revenues from the decline of print advertising.
  • Others outlets that are still around have taken to cost cutting as the way to survive. And the hardest hit resources in cost cuts are newsroom staff and journalists. But cost cutting is just an accelerator to the race to the bottom. Consumers have noticed the loss in quality journalism as a result of these measures. PEW research indicates that a third of the users that turned away from news outlets did so because they were dissatisfied with the quality of content they were getting.
  • Today, there are signs of hope. Simple paywalls have stopped the bleeding. And today there are signs of hope that the media industry can turn itself around
  • There’s been a big shift from print to digital, and at many publications, digital subscribers are starting to outnumber print.
  • There’s a silver lining in the shift to digital. Studies show that digital users actually consume more news not less.The shift to digital brings opportunity. Studies show that digital consumers actually consume more news not less once they start using a mobile or tablet device to access news.31% of mobile/tablet users turn to EVEN MORE NEWS SOURCES than they did prior to the device43% % of mobile/tablet users ADD TO THE NEWS they consumeSource: PEW Research CenterState Of The News Media 2013
  • And beyond newspapers, magazines are benefitting from the shift to digital as well. Digital magazine revenues are on the rise, even as print is falling
  • It’s not just big name brand newspapers that are adopting paywalls.A look at the hundreds of newspapers offered by the top 10 publishing houses across small, medium and large markets clearly shows how widely paywalls are taking holdAs of 2012, 46.7% of all newspapers offered by the top 10 publishers in America now have paywalls.
  • Media stocks are starting to turn around based on the success of paywalls. Shares of NYT, Scripps and Gannett are up.
  • A researcher at UT Austin researched a number of paywalls to determine if they could potentially preserve print circulation while attracting digital subscribers.Surprisingly, he found that digital paywalls seem to have a positive impact on print circulation revenue.Prior to paywalls, many newspapers showed a sharp decline in print circulation.After implementing paywalls, newspapers showed a much slower rate of decline in print circulation (NYT and Dallas Morning News). And in some cases like the Boston Globe and the Arkansas Democrat Gazzette, print circulation actually increased.
  • I want to share with you the best practices that we’ve observed in how to shift your business model … how to monetize…
  • The New York Times is extending it’s reach well beyond it’s New York roots. Seeing opportunity in a growing economy, affluent readership and an international business hub, the New York Times announced that there will be an online Portuguese version to serve readers in Brazil in 2013. This DIGITAL ONLY edition will publish 30-40 articles per day from local Brazilian writers and staff. They made a similar announcement this year with a DIGITAL ONLY Chinese language edition.
  • Axel Springer, one of the largest media companies in Europe publishes 230 newspapers, has over 160 digtial offerings and over 120 apps. Axel’s “Welt Group” which is the largest newspaper in Germany is one of the most successful adopters of interactive media experiences. It’s the first newspaper brand in Germany to be represented on all major digital devices.The WELT Group also implemented Touchcode at the end of 2011 for a specific project that aimed to bridge the gap between the offline print publication, ICON, with the online outlet, The Iconist. The printed issue included a removable business card, which when touched to the screen in its Apple iPad app, downloads a free edition of The ICONIST.
  • Pearson is going beyond publishing, and monetizing digital content in creative ways by making their content available to app developers via APIsDK GuidesLightning Thief, Chronicles of Narnai
  • News International is offering creative bundles of the times and the Sunday times with mixed print and digital offerings.
  • The New York Times is now building a steadily growing subscriber revenue base, which is overtaking it’s advertising revenues.
  • But today’s systems don’t enable Paywall 2.0
  • Z-business allows you to implement creative monetization strategies
  • Z-business allows you to combine multiple items (eg print and digital) on a single subscription
  • Z-Business enables commerce on multiple channels: CRM, self service, devices etc
  • Z-Business allows you to automate billing and payment operations at Global scale
  • Z-Business allows you to measure key subscriber metrics
  • Others outlets that are still around have taken to cost cutting as the way to survive. And the hardest hit resources in cost cuts are newsroom staff and journalists. But cost cutting is just an accelerator to the race to the bottom. Consumers have noticed the loss in quality journalism as a result of these measures. PEW research indicates that a third of the users that turned away from news outlets did so because they were dissatisfied with the quality of content they were getting.
  • Paid Content Media Zuora

    1. 1. Slide 1 − Zuora Confidential, not for distribution beyond intended recipientSlide 1 − Zuora Confidential, not for distribution beyond intended recipientPaywall 2.0:TheReinventionofMediawith ZuoraBrianBell,Zuora@brianbell123Enabling PAYWALL 2.0 for the Media Industry
    2. 2. Confidential and Proprietary Information. Do not distribute beyond intended audience.Commerce Billing FinanceSubscription Subscription SubscriptionTheLeaderinCommerce,BillingandFinancesolutionsfortheSubscriptionEconomy500+ customers$82M fundingZuora foundedSeries A; Firstproduct launchedSeries B, Zuorafeatured in WSJSeries C; Zuoraannounces 1B incontracted revenueSeriesD, TrademarksSubscriptionEconomy; EMEAexpansionZuora winsAlwaysOn Companyof the Year Award;expands to AsiaFour+ Years of Incredible GrowthOffices:SiliconValley, London, Sydney,Beijing, Atlanta
    3. 3. Confidential and Proprietary Information. Do not distribute beyond intended audience.What is the3By2015, 35% of Global 2000 companies will generate revenuethroughsubscription-based servicesand revenuemodels.1999 TodaySubscription Economy?BUY NOW SUBSCRIBE
    4. 4. Confidential and Proprietary Information. Do not distribute beyond intended audience.4Businesses Can SubscribeTo Anything
    5. 5. Confidential and Proprietary Information. Do not distribute beyond intended audience.5Consumers Can SubscribeTo Anything
    6. 6. Confidential and Proprietary Information. Do not distribute beyond intended audience.High Tech SaaS Cloud InfrastructureTelecomDevicesMediaZ-Business Works Across All Industries
    7. 7. Confidential and Proprietary Information. Do not distribute beyond intended audience.The Media Industry7
    8. 8. Slide 8 − Zuora Confidential, not for distribution beyond intended recipientSlide 8 − Zuora Confidential, not for distribution beyond intended recipientThe Myth Of Free Was Killing The Industry“By having a paywall you are cutting your journalism off from theworld.” – Alan Rusbridger, Guardian Editor-In-Chief (Jan 2010)
    9. 9. Confidential and Proprietary Information. Do not distribute beyond intended audience.9Advertising Revenue At 1950s LevelsNewspapers lost $10 in print advertising for every $1gained in online advertising
    10. 10. Confidential and Proprietary Information. Do not distribute beyond intended audience.10Consumers Dissatisfied With ContentSource: PEW Research CenterState Of The News Media 2013Of Americans stoppedusing a news outletbecause ofdissatisfactionover content31%
    11. 11. Slide 11 − Zuora Confidential, not for distribution beyond intended recipientSlide 11 − Zuora Confidential, not for distribution beyond intended recipientToday: The Industry Is Beginning To Turn AroundPearson SeesDigital IncomeBeating PrintPublishing…subscription salesare rising fasterthan ad dollars arefalling…. NYTDigitalsubscribers nowoutnumberprint…. FT33% of ourrevenues comingfrom subscriptions… Dallas MorningNews
    12. 12. Confidential and Proprietary Information. Do not distribute beyond intended audience.12There Is A Big Shift From Print To Digital“Our digital subscribers now outnumber print, and digital is half ofFTs revenue”– Financial Times
    13. 13. Confidential and Proprietary Information. Do not distribute beyond intended audience.13Digital Users Consume MORE NEWS Not Less31%Spend more timewith news43%Go to more newssources thanbefore
    14. 14. Slide 14 − Zuora Confidential, not for distribution beyond intended recipientSlide 14 − Zuora Confidential, not for distribution beyond intended recipientDigital Magazine Revenues Predicted To TripleSource: PEW Research Center State Of The News Media 2013
    15. 15. Slide 15 − Zuora Confidential, not for distribution beyond intended recipientSlide 15 − Zuora Confidential, not for distribution beyond intended recipientDigital Paywalls Are On The Rise46.7% of newspapers now behind a paywallNews & Tech Stats Aug 201272.231.657.744.157.91007516.717.227.8Gannet & Co.GateHouse MediaLee EnterprisesMediaNews-Digital FirstBerkshire HathawayDow Jones Local MediaTimes-ShamrockMcClatchy Co.Swift CommunicationsTribune Co. % Papers With Paywalls
    16. 16. Confidential and Proprietary Information. Do not distribute beyond intended audience.16Wall Street Is A Believer TooShares of Gannett, New York Times, and E.W.Scripps are up
    17. 17. Slide 17 − Zuora Confidential, not for distribution beyond intended recipientSlide 17 − Zuora Confidential, not for distribution beyond intended recipientBottom Line: Paywalls Can WorkSource Michael Nevradakis “May The Best Paywall Win” University of Texas AustinPaywalls show signs of positively impacting print circulationPrint Circulation BeforePaywallPrint Circulation After PaywallNew York Times Weekday declined by 7.8%Sunday declined by 5.3%Weekday declined by 5.6%Sunday declined by 0.1%Wall Street Journal Paywall for 15 years Very gradual declineBoston Globe Declined by 5.3% Sunday increased by 0.8%Dallas Morning News Declined by 16.1% Weekday declined by 5.5%Sunday declined by 1%Arkansas Democrat Gazette - Weekday increasedSunday remained steady
    18. 18. Slide 18 − Zuora Confidential, not for distribution beyond intended recipientSlide 18 − Zuora Confidential, not for distribution beyond intended recipient
    19. 19. Confidential and Proprietary Information. Do not distribute beyond intended audience.19The Next Big Challenge: Media CompaniesMust Take Advantage Of 5 Key Opportunities1. Increased geographical reach2. Multi Device Experiences3. Cross Content Bundling4. Predictable Revenue Model5. Innovative Content Monetization
    20. 20. Slide 20 − Zuora Confidential, not for distribution beyond intended recipientSlide 20 − Zuora Confidential, not for distribution beyond intended recipientNYT Announces Online PortugueseEdition, Bringing Times Journalism To Readers inIncreased geographical reach
    21. 21. Slide 21 − Zuora Confidential, not for distribution beyond intended recipientSlide 21 − Zuora Confidential, not for distribution beyond intended recipientWelt Group: Major newspaper brand in Germanyrepresented on all relevant digital platforms ofiOS, Android and KindleMulti-Device Experiences
    22. 22. Confidential and Proprietary Information. Do not distribute beyond intended audience.Pearson Plug-N-Play offers content viaAPIs to third party app developersInnovative Content Monetization
    23. 23. Confidential and Proprietary Information. Do not distribute beyond intended audience.Cross Content BundlingNews International: Bundling print, web and tabletsubscriptions to The Times and the Sunday Times
    24. 24. Slide 24 − Zuora Confidential, not for distribution beyond intended recipientSlide 24 − Zuora Confidential, not for distribution beyond intended recipientNew York Times quarterly revenue rises onsubscriber growthPredictable Revenue Model
    25. 25. Confidential and Proprietary Information. Do not distribute beyond intended audience.25We Call This Paywall 2.0
    26. 26. Confidential and Proprietary Information. Do not distribute beyond intended audience.26Problem: Today’s SystemsCan’t Enable Paywall 2.0ERPPrintCirculationSimpleE-CommerceProduct & Content SilosNot Subscriber-CentricNo Global ReachPrint Only/Single DeviceRigid Packaging Options
    27. 27. Confidential and Proprietary Information. Do not distribute beyond intended audience.2712345Subscriber Centric AnalyticsMulti-Device EngagementCreative Content MonetizationSubscription Order ManagementGlobal Digital CommerceThe Industry Needs New Tools That Are Ready For …
    28. 28. Confidential and Proprietary Information. Do not distribute beyond intended audience.CreativeContentMonetizationGlobalCommerceSubscriptionMgmtMulti DeviceEngagementSubscriberAnalyticsSample CodeExtensive APIsSelf ServiceCommerce PagesPackages & BundlesCharge ModelsRate PlansProduct DefinitionAudit TrailRenewalsAmendmentsSubscription OrdersRatingMulti-CurrencyTaxationSecure PaymentsAd Hoc ReportingBilling & Cash ReportsRevenue ReportsSubscriber Reports28Payment Gateways Accounting/GLCRM Systems AnalyticsE C O S Y S T E MCMS SystemsFor MediaDelivering Paywall 2.0 For The Media Industry
    29. 29. Confidential and Proprietary Information. Do not distribute beyond intended audience.29Implement Creative Content Monetization StrategiesFlexible Pricing Models Create one-time, recurring, usage charges Setup different subscriptionplans, durations, and pricingtiers Manage discounts andpromotions Trackconsumption, overages, andincluded units Use Hundreds of DifferentCurrencies
    30. 30. Confidential and Proprietary Information. Do not distribute beyond intended audience.Subscription Bundling30Deliver Cross Content Bundling WithMulti-Element Subscriptions Bundle multiple items on asingle subscription Consolidate billing forprint, digital and other contentformats Add, remove or change itemswithout disrupting billing
    31. 31. Confidential and Proprietary Information. Do not distribute beyond intended audience.31Multi-Device And Multi-Channel Subscriber EngagementPlatform Extensibility Create commerce pages withpoint and click-tools Use sample code libraries tolaunch faster across multiplechannels and devices Drive subscriber self-care,including account andsubscription management
    32. 32. Confidential and Proprietary Information. Do not distribute beyond intended audience.Billing & Payment Automation32Automate Billing And Payment OperationsOn A Global Scale Multi-Currency billing andpayments Support for over 200currencies, major credit cardsand 9 direct debit methods Payment exception handling Taxation (inclusive andexclusive)
    33. 33. Confidential and Proprietary Information. Do not distribute beyond intended audience.Subscriber Reporting33Measure Key Subscriber Metrics Reporting on key metrics likeMRR, TCV, Churn, Renewals Pre-builtbilling, payments, subscriptionand revenue reports Ad-hoc reporting capabilities
    34. 34. Confidential and Proprietary Information. Do not distribute beyond intended audience.34Z-Business Enables Key Processes Critical To Paywall 2.0Payment Gateways Accounting/GLCRM Systems AnalyticsE C O S Y S T E M
    35. 35. Slide 35 − Zuora Confidential, not for distribution beyond intended recipientSlide 35 − Zuora Confidential, not for distribution beyond intended recipientIt’s Time for Paywall 2.0Paywall 1.0 Paywall 2.0A simple toll-gate Business Model TransformationPaywall-Centric Relationship-CentricSplintered Subscriber View Unified Subscriber ViewSingle Platform Monetization Cross Platform Content BundlingRigid Monetization Strategies Flexible Monetization Strategies
    36. 36. Slide 36 − Zuora Confidential, not for distribution beyond intended recipientSlide 36 − Zuora Confidential, not for distribution beyond intended recipientThank You
    37. 37. Confidential and Proprietary Information. Do not distribute beyond intended audience.Pearson Plug-N-Play goesdigital and monetizes itscontent in less than30 days.Zuora helped us to not only put in a next-generationpaywall, but has empowered us to go beyond publishing. Tom Hall, VP Education Technology PartnershipsCase StudyGROW
    38. 38. Confidential and Proprietary Information. Do not distribute beyond intended audience.Z-Business for Media gives us deeper insight into ourreaders, helps us to forecast future their behavior andultimately helps us to create a better, more relevant customerexperience.Case StudyGROWAndrew Lam-Po-Tang, Chief Information OfficerZ-Business For Media is Fairfax’s mastersubscription system.Multiple titles such as The Age and TheSydney Morning Herald will leverageZuora to increase subscriber revenuesand reduce reliance on advertising
    39. 39. Confidential and Proprietary Information. Do not distribute beyond intended audience.Case StudyGROWZuora manages both print anddigital subscriptions for theTimes and the Sunday Times,representing a combinedsubscriber base of over 300ksubscribers.Katie Vanneck-Smith, Chief Marketing OfficerZuora helped us take control of our customer relationshipsand, unlike other systems Z-Business for Media has beendesigned around the future of subscription models, not thepast

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