Confidential and Proprietary Information. Do not distribute beyond intended audience.
to                               #futureofmediaWatch live atw w w. z u o r a . c o m / f u t u r e o f m e d i a / l i v e...
2009: Death Of Journalism Widely Predicted
Advertising Revenue at 1950s LevelsNewspapers lost $10 in print advertising for every $1gained in online advertising
The Myth Of Free Was Killing The Industry“By having a paywall you are cutting your journalism off from theworld.” – Alan R...
The Race To The Bottom           31%         Of Americans stopped          using a news outlet              because of    ...
Some CompaniesRebelled Against FreeThe New York Times paywall is working better than anyone had guessed                Con...
A New Dawn                 …subscription sales                 are rising faster                       33% of our revenues...
Digital Magazine Revenues Predicted To Triple            Source: PEW Research Center State Of The News Media 2013
Digital Paywalls Are On The Rise            Tribune Co.      27.8                               % Papers With Paywalls Swi...
Western Europe: Online Paid Content Revenue          Expected To Rise By 65%                  +65%                  10,2  ...
Wall Street Is A Believer TooShares of Gannett, New York Times, and E.W.              Scripps are up
Bottom Line: Paywalls Can Work                               Print Circulation Before     Print Circulation After Paywall ...
We Proudly Support Media Industry’s Transformation     So Where Do We Go From Here?
Is this theNew normal?
Or is the Shift to Digital      an Opportunity for Reinvention?
The First Paywalls:The Difference Between Success And Failure?
We Proudly Support Media Industry’s Transformation    It’s Never Been About the Paywall
We Proudly Support Media Industry’s Transformation          It’s About the Customer
Digital Users Consume MORE NEWS Not Less       31%     Spend more time        with news       43%      Adding to news     ...
The Path Forward Starts With BuildingA Deeper Relationship with the Customer
Multi-Device ExperiencesWelt Group: Major newspaper brand in Germany represented on all relevant digital platforms of     ...
Increased geographical reach         NYT Announces Online Portuguese  Edition, Bringing Times Journalism To Readers in
Innovative Content Monetization     Pearson Plug-N-Play offers content via       APIs to third party app developers       ...
Cross Content BundlingNews International: Bundling print, web and tablet subscriptions to The Times and the Sunday Times  ...
Predictable Revenue ModelNew York Times quarterly revenue rises on           subscriber growth
Increased                                           Cross title    Geographical                                           ...
Increased                                                                                       Cross Title  Geographical ...
Confidential and Proprietary Information. Do not distribute beyond intended audience.
It’s Time for Paywall 2.0Paywall 1.0                                Paywall 2.0A simple toll-gate                 Business...
The Technologies Are HereFor Media
The Success Stories are Here
We Proudly Support Media Industry’s Transformation       It’s Time to Start the Journey             “There Are Three Estat...
Neil Robinson         Tom HallDigital Director      VP Education Technology PartnershipsIPC Media             PearsonKatie...
The Opportunity Exists. The Tools Exist.               The Media Industry Will Be Reborn“Newspapers cannot be defined by t...
Future of Media
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Future of Media

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  • Today: The media industry seems to be at a crossroads
  • A few years ago the death of journalism was widely predicted. Based on trends in the media industry, namely the proliferation of free content online, and the growing preference for digital vs print, analysts predicted that newspapers in their current form would be extinct in the western world by 2019.
  • During the same period, newspapers saw their advertising revenues dwindle to 1950s levels. Online advertising revenue failed to make up for the loss in print advertising revenue, and newspapers saw a loss of $10 in print adversitning revenue for every $1 gained in online ad revenue
  • And yet, 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.
  • 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.
  • Amidst all this, some publishers took a stand, and decided to put up paywalls and charge for content. And to everyone’s surprise, the sites that had paywalls did not die, or drive away all their readers. The News York Times paywall is doing better than anyone expected, and has reported that their subscriber revenue is rising faster than their ad dollars are falling. In fact, for the first time in history, they made more money for subscription and circulation revenue than from advertising.
  • Simple paywalls have stopped the bleeding. And today there are signs of hope that the media industry can turn itself around
  • 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.
  • In Europe, there is a huge opportunity to capture online paid content revenue. Forrester predicts online paid content revenue will increase by 65% by 2017 due to an increase in customer willingness to pay for digital content like news, video, games and music.
  • A researcher at UT Austin researched a number of paywalls to detemine 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 sicrulation.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.
  • So what lies ahead? What should media company’s do to not just stop the bleeding and simply survive, but beyond survival, get back to their days of glory?
  • Now is the time for media to reinvent itself
  • And success with making the most of any of these opportunities lies in one crucial point: A laser focus on what customers want. It’s not just about paywalls. It’s a complete transformation centered on what customers want.
  • 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 spend MORE time with news than they did prior to the device43% % of mobile/tablet users ADD TO THE NEWS they consume31% of mobile/tablet users turn to EVEN MORE NEWS SOURCES than they did prior to the deviceSource: PEW Research CenterState Of The News Media 2013
  • Now is the time for media to reinvent itself
  • 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.
  • 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.
  • Pearson is going beyond publishing, and monetizing digital content in creative ways by making their content available to app developers via APIs
  • 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.
  • We see 5 opportunities to return to glory
  • We call this paywall 2.0
  • Future of Media

    1. 1. Confidential and Proprietary Information. Do not distribute beyond intended audience.
    2. 2. to #futureofmediaWatch live atw w w. z u o r a . c o m / f u t u r e o f m e d i a / l i v e . h t m l
    3. 3. 2009: Death Of Journalism Widely Predicted
    4. 4. Advertising Revenue at 1950s LevelsNewspapers lost $10 in print advertising for every $1gained in online advertising
    5. 5. The 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)
    6. 6. The Race To The Bottom 31% Of Americans stopped using a news outlet because of dissatisfaction Source: PEW Research Center over content State Of The News Media 2013
    7. 7. Some CompaniesRebelled Against FreeThe New York Times paywall is working better than anyone had guessed Confidential and Proprietary Information. Do not distribute beyond intended audience.
    8. 8. A New Dawn …subscription sales are rising faster 33% of our revenues than ad dollars are Digital coming from falling…. NYT subscribers now subscriptionsPearson Sees outnumber … Dallas MorningDigital Income print…. FT NewsBeating PrintPublishing
    9. 9. Digital Magazine Revenues Predicted To Triple Source: PEW Research Center State Of The News Media 2013
    10. 10. Digital Paywalls Are On The Rise Tribune Co. 27.8 % Papers With Paywalls Swift Communications 17.2 McClatchy Co. 16.7 Times-Shamrock 75Dow Jones Local Media 100 Berkshire Hathaway 57.9MediaNews-Digital First 44.1 Lee Enterprises 57.7 GateHouse Media 31.6 Gannet & Co. 72.2 46.7% of newspapers now behind a paywall News & Tech Stats Aug 2012
    11. 11. Western Europe: Online Paid Content Revenue Expected To Rise By 65% +65% 10,2 6,2€Billion 2012 2017 Source: Forrester Research
    12. 12. Wall Street Is A Believer TooShares of Gannett, New York Times, and E.W. Scripps are up
    13. 13. Bottom Line: Paywalls Can Work Print Circulation Before Print Circulation After Paywall PaywallNew York Times Weekday declined by 7.8% Weekday declined by 5.6% Sunday declined by 5.3% 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 increased Sunday remained steady Source Michael Nevradakis “May The Best Paywall Win” University of Texas Austin Paywalls show signs of positively impacting print circulation
    14. 14. We Proudly Support Media Industry’s Transformation So Where Do We Go From Here?
    15. 15. Is this theNew normal?
    16. 16. Or is the Shift to Digital an Opportunity for Reinvention?
    17. 17. The First Paywalls:The Difference Between Success And Failure?
    18. 18. We Proudly Support Media Industry’s Transformation It’s Never Been About the Paywall
    19. 19. We Proudly Support Media Industry’s Transformation It’s About the Customer
    20. 20. Digital Users Consume MORE NEWS Not Less 31% Spend more time with news 43% Adding to news they consume 31% Turn to new sources for news
    21. 21. The Path Forward Starts With BuildingA Deeper Relationship with the Customer
    22. 22. Multi-Device ExperiencesWelt Group: Major newspaper brand in Germany represented on all relevant digital platforms of iOS, Android and Kindle
    23. 23. Increased geographical reach NYT Announces Online Portuguese Edition, Bringing Times Journalism To Readers in
    24. 24. Innovative Content Monetization Pearson Plug-N-Play offers content via APIs to third party app developers Confidential and Proprietary Information. Do not distribute beyond intended audience.
    25. 25. Cross Content BundlingNews International: Bundling print, web and tablet subscriptions to The Times and the Sunday Times Confidential and Proprietary Information. Do not distribute beyond intended audience.
    26. 26. Predictable Revenue ModelNew York Times quarterly revenue rises on subscriber growth
    27. 27. Increased Cross title Geographical Bundling Reach 1 2PredictableRevenue 5 3Model Richer Multi- Device 4 Experiences Extended Product Line Via Innovative Content Packaging
    28. 28. Increased Cross Title Geographical Bundling Reach 1PredictableRevenue 3Model Richer Multi Device Experiences 4 Extended Product Line via Innovative Content Packaging Confidential and Proprietary Information. Do not distribute beyond intended audience.
    29. 29. Confidential and Proprietary Information. Do not distribute beyond intended audience.
    30. 30. It’s Time for Paywall 2.0Paywall 1.0 Paywall 2.0A simple toll-gate Business Model TransformationRigid Monetization Strategies Flexible Monetization StrategiesPaywall-Centric Relationship-CentricSplintered Subscriber View Unified Subscriber ViewSingle Platform Monetization Cross Platform Content Bundling
    31. 31. The Technologies Are HereFor Media
    32. 32. The Success Stories are Here
    33. 33. We Proudly Support Media Industry’s Transformation It’s Time to Start the Journey “There Are Three Estates in Parliament, But The Fourth Estate Is More Important Than All “ Edmund Burke, British Politician, 1729-1797 As quoted in “Heroes and Hero Worship In History”
    34. 34. Neil Robinson Tom HallDigital Director VP Education Technology PartnershipsIPC Media PearsonKatie Vanneck-Smith Andrew Lam-Po-TangCMO Chief Information & Technology OfficerNews International Fairfax MediaPeter A. Kreisky Christina ScottFounder CIOKreisky Media Financial Times
    35. 35. The Opportunity Exists. The Tools Exist. The Media Industry Will Be Reborn“Newspapers cannot be defined by the second word—paper. They’ve got to be defined by the first word—news.” Arthur Sulzberg, Jr. 3
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