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Respectless. The Harajuku experience.
The adventures of a global publisher in the digital era




V2.1


Trieste, June 2012
Marco Formento, Global Digital Director, De Agostini Publishing
De Agostini Group




     The Group's corporate governance policy confers operational independence to its
    subsidiary companies, which are responsible for the management of their respective
           markets and for the identification of areas for growth and development
De Agostini Publishing 2011




   500                        €Mio Revenues



            122               Mio copies sold


                  60          €Mio spent on media



                   49         Markets


                      8       Offices: Novara, London, Tokyo, Moscow, Warsaw, Kiev, NYC, Athens
De Agostini Publishing
three digital facts



 The tree facts we see globally – And, yes, it really seems a post-pc world:


1.                                               2.                   3.
Facebook globally                                June 2011: tablets   Mobile consumption is
dominates the SNs                                and smarthpones      much more about apps
                                                 sales exceed PCs     then browsing



  SOURCE: L2, Morgan Stanley, Flurry, ComScore
De Agostini Publishing Global Digital Team
De Agostini Publishing Digital Initiative
Mutado acquisition



                                   •Mutado was formed in 2004 by Lorenzo
                                   Manfredi and Mauro Gatti: a technologist and
                                   a creative whose paths crossed more than a
                                   decade ago.

                                   •During the last years, this partnership has
                                   grown into a solid independent digital agency,
                                   headquartered in Milan.

                                   • The company’s name unveils Mutado’s
                                   guiding philosophy of constant mutation,
                                   adaption and transformation.

                                   • What started off as a two-man studio has
                                   grown over the years to become a leading
                                   agency working on web, motion, print and,
                                   most recently, mobile, employing over 20
                                   people with different backgrounds and ideas.
De Agostini Publishing US office opening
De Agostini Publishing app publishing


      MAIN CHALLENGES                           OUR AGENDA

  1. Also in high-volume markets        1. We price ‘realistically’
     (i.e. Apple App Markets) the
     main content is often sold
     through micro transactions

  2. (Gaming) content is king           2. We are proactively evolving the
                                           ‘in-app’ business model

                                        3. We are extending the values
  3. Huge offering by both                 and perception of the brand
     incumbents and newcomers

                                        4. We are investing gruadually on
  4. Android –tablets– is eventually       Android development
     happening (Samsung, Amazon)
     but still uncomparable to iOS
De Agostini Publishing Apps
italian iOS launches Jul 11 – Mar 12


    •Apple ‘new and noteworhty’       •Apple ‘new and noteworhty’            •Apple ‘App of the week’    •Apple App of the week – iPad
  •#1 Top Downloaded app – iPad     •#8 Top Downloaded app – iPad        •#7 Top Downloaded app – iPad        •#1 download iPad
    •#4 Top Grossing app – iPad      •#28 Top Grossing app – iPad          •#4 Top Grossing app – iPad       •#1 top grossing iPad




•7 units; 150+ videos; 130 cards    •10 units; 150+ videos; 130 cards        •60 lessons; 4 levels             •8 units; 4 levels

          •Price strategy                      •Price strategy                  •Price strategy                  •Price strategy
  - Free mini unit (registration)      - Free mini unit (registration)    - Free Lesson (registration)    - Free Lesson (registration)
     - Cut Price Unit 1 €1,59             - Cut Price Unit 1 €1,59           - Single lesson €1,59            - Single lesson €2,99
      - Standard Price €4,99               - Standard Price €3,99         - Single Level Price €19,99        - Bundle Price €14,99
       - Bundle Price €19,99                - Bundle Price €24,99            - Bundle Price €69,99
De Agostini Publishing Apps
japanese ‘digital replica’ launch Jun 12
SOTN12 Special Content
The Harajuku Lesson




                      Kanai: ie (家) “home” and nai (内) “inside”




                                                          12
The Harajuku Lesson/1




                        ALL THE REST




    PRODUCT
          - Brand
       - Editorial
     - Marketing




                                  13
The Harajuku Lesson/2


               GONE                            COMING UP

  1. Sell both products and            1. Audiences are being
     audiences. At a very high price      commoditized: Adv revenues
                                          are good, ‘copies’ are –at some
                                          point- back, but they won’t be
                                          enough. Period.

                                       2. No more such a thing, but now
  1. Stick to the plan                    you can develop new services:
                                          ecommerce, consulting, VC,
                                          Adv…

  2. Market ‘products’                 3. Market brand-centric
                                          experiences




                                                                       14

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Respectless. The Harajuku experience.

  • 1. Respectless. The Harajuku experience. The adventures of a global publisher in the digital era V2.1 Trieste, June 2012 Marco Formento, Global Digital Director, De Agostini Publishing
  • 2. De Agostini Group The Group's corporate governance policy confers operational independence to its subsidiary companies, which are responsible for the management of their respective markets and for the identification of areas for growth and development
  • 3. De Agostini Publishing 2011 500 €Mio Revenues 122 Mio copies sold 60 €Mio spent on media 49 Markets 8 Offices: Novara, London, Tokyo, Moscow, Warsaw, Kiev, NYC, Athens
  • 4. De Agostini Publishing three digital facts The tree facts we see globally – And, yes, it really seems a post-pc world: 1. 2. 3. Facebook globally June 2011: tablets Mobile consumption is dominates the SNs and smarthpones much more about apps sales exceed PCs then browsing SOURCE: L2, Morgan Stanley, Flurry, ComScore
  • 5. De Agostini Publishing Global Digital Team
  • 6. De Agostini Publishing Digital Initiative Mutado acquisition •Mutado was formed in 2004 by Lorenzo Manfredi and Mauro Gatti: a technologist and a creative whose paths crossed more than a decade ago. •During the last years, this partnership has grown into a solid independent digital agency, headquartered in Milan. • The company’s name unveils Mutado’s guiding philosophy of constant mutation, adaption and transformation. • What started off as a two-man studio has grown over the years to become a leading agency working on web, motion, print and, most recently, mobile, employing over 20 people with different backgrounds and ideas.
  • 7. De Agostini Publishing US office opening
  • 8. De Agostini Publishing app publishing MAIN CHALLENGES OUR AGENDA 1. Also in high-volume markets 1. We price ‘realistically’ (i.e. Apple App Markets) the main content is often sold through micro transactions 2. (Gaming) content is king 2. We are proactively evolving the ‘in-app’ business model 3. We are extending the values 3. Huge offering by both and perception of the brand incumbents and newcomers 4. We are investing gruadually on 4. Android –tablets– is eventually Android development happening (Samsung, Amazon) but still uncomparable to iOS
  • 9. De Agostini Publishing Apps italian iOS launches Jul 11 – Mar 12 •Apple ‘new and noteworhty’ •Apple ‘new and noteworhty’ •Apple ‘App of the week’ •Apple App of the week – iPad •#1 Top Downloaded app – iPad •#8 Top Downloaded app – iPad •#7 Top Downloaded app – iPad •#1 download iPad •#4 Top Grossing app – iPad •#28 Top Grossing app – iPad •#4 Top Grossing app – iPad •#1 top grossing iPad •7 units; 150+ videos; 130 cards •10 units; 150+ videos; 130 cards •60 lessons; 4 levels •8 units; 4 levels •Price strategy •Price strategy •Price strategy •Price strategy - Free mini unit (registration) - Free mini unit (registration) - Free Lesson (registration) - Free Lesson (registration) - Cut Price Unit 1 €1,59 - Cut Price Unit 1 €1,59 - Single lesson €1,59 - Single lesson €2,99 - Standard Price €4,99 - Standard Price €3,99 - Single Level Price €19,99 - Bundle Price €14,99 - Bundle Price €19,99 - Bundle Price €24,99 - Bundle Price €69,99
  • 10. De Agostini Publishing Apps japanese ‘digital replica’ launch Jun 12
  • 12. The Harajuku Lesson Kanai: ie (家) “home” and nai (内) “inside” 12
  • 13. The Harajuku Lesson/1 ALL THE REST PRODUCT - Brand - Editorial - Marketing 13
  • 14. The Harajuku Lesson/2 GONE COMING UP 1. Sell both products and 1. Audiences are being audiences. At a very high price commoditized: Adv revenues are good, ‘copies’ are –at some point- back, but they won’t be enough. Period. 2. No more such a thing, but now 1. Stick to the plan you can develop new services: ecommerce, consulting, VC, Adv… 2. Market ‘products’ 3. Market brand-centric experiences 14