Presentatie Timo Zuidgeest- NUD 2012

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  • The economics of the media industry have changed from the fixed costs of the print cycle to the varied cost of multiple media. Customers are used to consuming media across multiple channels , even for the same information. Being able to bundle and sell content across various channels opens up new possibilities on bundling and segmenting.

Transcript

  • 1. Nationaal Uitgeefdag 2012 Justin List - Media Specialist - Zuora Timo Zuidgeest - Media Specialist - PossibilIT BV1
  • 2. The subscription economy. Something New? Yes and No eCommerce has revolutionised purchasing habits and transformed the way that services are consumed. The proliferation of web channels and development of converged devices means that today’s purchases are more likely to be transacted online and provided as a subscription service. “ For the first time ever, The Financial Times is reporting that the number of digital subscribers has eclipsed the number of print subscribers and half of sales from the Financial Times’ group is generated from digital revenues ”2
  • 3. The subscription economy. It’s all about. Starting ARR – Churn + ACV = Ending ARR Starting Annual Recurring Revenue Customers that leave you New customers & subscription upgrades3
  • 4. The subscription economy. The new things Subscriptions4
  • 5. The subscription economy and Media Today publishers must deliver: • Choices. • Flexibility. • Value. • Responsiveness to differentiate. • A customer experience that open doors to future opportunitites.5
  • 6. This is the value of media Subscriptions Shares of Gannett, New York Times, McClatchy and E.W. Scripps are up between 36% and 63% over the last 12 months, compared to 13% for the S&P 5006
  • 7. What’s Next – Subscriptions 2.0 • No longer a transactional or pay upfront model. • Definition of subscription has changed, it’s not just a print subscription in a digital world. • Subscriptions are now dynamic and customers demand flexibility - Not about simple annual plans and pre-pay. • Needs to think about new business models; new ways to monetize those relationships. • Goes beyond just paywall, requires holistic understanding of the customer relationships, and manage it from commerce, billing, and finance. • Need to move faster, deliver different revenue strategies.7
  • 8. Subscription Journeys Renew Bundles Add-on Upgrade Subscription8
  • 9. What are Subscriptions 2.0? Cross content bundling (news, video, data, apps) • The economics of the media industry have changed from the fixed costs of the print cycle to the varied cost of multiple media. • Customers are used to consuming media across multiple channels , even for the same information. • Being able to segment and cross-sell content across various channels opens up new possibilities on bundling and segmenting.9
  • 10. Subscription Business Maturity Curve GROW Revenue Product Pricing International Launch Enhancement Expansion Optimization Growth Single Product Product Upgrades Add-On Products Pricing Tiers Multiple Currencies Usage & Overage Simple Monthly Different Billing Product Bundles Recurring Frequencies Regional Pricing A/B Testing LAUNCH PIVOT SCALE10
  • 11. Digital Content enables Subscription Strategies for growth in the Subscription Economy Strategies 1. Freemium Revenue 2. Multiple Editions Growth 3. Promotional Churn Lower Customer Defense 4. Pay-as-you-Go Acquisition Costs 5. Overage Competitive Advantage 6. Volume/Tiered 7. Bundling Market Share Capture 8. Segmentation11
  • 12. Example #1 Freemium Upsell Strategy12
  • 13. Example #2 Multiple Edition Strategy13
  • 14. Example #3: Promotional Strategies Start with a free trial. Annual Subscription14 1
  • 15. Example #4 #5 On Demand, User and Usage based pricing , Pay as you go, Overage15
  • 16. Example #6: Tiered / Volume Pricing Strategy Differential pricing based on tiers/ volume.16 1
  • 17. Example #7: Bundling Strategy Create flexible pricing & packaging bundles.17 1
  • 18. Example #8 Segmentation (content, location, customer…)18
  • 19. A/B Test Everything19
  • 20. In Summary 1. Your customers are changing , your subscriptions need to adapt to them. 2. With digital there is huge opportunity for new predictable revenue streams. 3. Agility and speed to market are key. 4. Revenue Diversity, multiple income streams. 5. Upsell, cross-sell- add-ons, bundles, premium subscriptions. 6. Optimize. Digital content can be segmented (content, location, audience, subjective theory of value). 7. A/B Test price!! 8. Price agility.20