Your SlideShare is downloading. ×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Paywall 2.0 The Reinvention Of Media

682
views

Published on


0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
682
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
16
Comments
0
Likes
5
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • 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.
  • 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
  • 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 call this paywall 2.0
  • Transcript

    • 1. Paywall 2.0The Reinvention Of Media Tien Tzuo CEO, Zuora
    • 2. The Leader in Commerce, Billing and Finance solutions for the Subscription Economy Subscription Subscription Subscription Commerce Billing Finance Four+ Years of Incredible Growth 500+ customers $82M funding Series A; First Series B, Zuora Series C; Zuora Series D, Zuora winsZuora founded Trademarks product launched featured in WSJ announces 1B in Subscription contracted revenue Economy; EMEA AlwaysOn Company of the Year Award; Offices: expansion expands to Asia Silicon Valley, London, Sydney, Beijing, Chicago, Atlanta
    • 3. Media Industry At A Crossroads
    • 4. 2009: Death Of Journalism Widely Predicted
    • 5. Advertising Revenue at 1950s LevelsNewspapers lost $10 in print advertising for every $1gained in online advertising
    • 6. 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)
    • 7. Cost Cuts: Staff Slashed To 1978 Levels
    • 8. Resulting In A Race To The Bottom 31% Of Americans stopped using a news outlet because of dissatisfaction over content Source: PEW Research Center State Of The News Media 2013
    • 9. 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.
    • 10. A New Dawn Digital Pearson Sees…subscription sales 33% of our subscribers now Digital Incomeare rising faster revenues coming outnumber Beating Printthan ad dollars are from subscriptions print…. FT Publishingfalling…. NYT … Dallas Morning News
    • 11. Digital Magazine Revenues Predicted To Triple Source: PEW Research Center State Of The News Media 2013
    • 12. 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
    • 13. Western Europe: Online Paid Content Revenue Expected To Rise By 65% +65% 10,2 6,2€Billion 2012 2017 Source: Forrester Research
    • 14. Wall Street Is A Believer TooShares of Gannett, New York Times, and E.W. Scripps are up
    • 15. 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
    • 16. We Proudly Support Media Industry’s Transformation So Where Do We Go From Here?
    • 17. Is this theNew Normal?
    • 18. Or is the Shift to Digital an Opportunity for Reinvention?
    • 19. The First Paywalls:The Difference Between Success And Failure?
    • 20. We Proudly Support Media Industry’s Transformation It’s Never Been About the Paywall
    • 21. We Proudly Support Media Industry’s Transformation It’s About the Customer
    • 22. Digital Users Consume MORE NEWS Not Less 31% Spend more time with news 43% Go to more news sources than before
    • 23. The Future Starts withDeeper Customer Relationships
    • 24. Multi-Device ExperiencesWelt Group: Major newspaper brand in Germany represented on all relevant digital platforms of iOS, Android and Kindle
    • 25. Increased Geographical Reach NYT Announces Online Portuguese Edition, Bringing Times Journalism To Readers in
    • 26. 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.
    • 27. 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.
    • 28. Predictable Revenue ModelNew York Times quarterly revenue rises on subscriber growth
    • 29. Going Beyond The Paywall 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.
    • 30. Confidential and Proprietary Information. Do not distribute beyond intended audience.
    • 31. 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
    • 32. The Technologies Are HereFor Media
    • 33. The Success Stories are Here
    • 34. 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”