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Eivind2011

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Eivind2011

  1. 1. Eivind Thomsen, (Retired) Senior Vice President, Schibsted ASA, Norway ISOJ Austin; April 1st 2011 Paywalls: Charging for news content. Does it work?
  2. 2. 4,9 million people 94% Internet penetration Daily Newspaper Readership 1,3 111% mobile penetration 64% on Facebook
  3. 3. Schibsted 1839 – 1992 Schibsted Forlagene Publishing house Aftenposten Morning newspaper Verdens Gang Evening newspaper 1839 1860 1966
  4. 4. From newspapers and books in Norway to an European media group “We shall become the leading media company in Scandinavia” *1994 # employees # countries revenues result 2 100 1 3 bill NOK 0.3 bill NOK
  5. 5. 6 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Only paper version Both Only online version 2,069 Daily readership (‘000) Daily readership (‘000) 980 (47%) 506 (24%) 583 (28%) Source: TNS Gallup, Orvesto ¹ From 2007 from Internet survey Innovative approach to online news publishing Increasing reach of our strong media houses 1999 2000 2001 2002 2003 2004 2005 2006 2007¹ 2008¹ 2009 Only paper version Both Only online version 2,442 1,250 (51%) 299 (12%) 893 (37%)
  6. 6. 7 Schibsted sites generate close to 28% of top 20 traffic in Norway Schibsted sites generate close to 25% of top 20 traffic in Sweden Unique weekly visitors (m) Change Y/Y 1. 3.7 19% 2. MSN 2.9 26% 3. Startsiden 2.2 16% 4. Dagbladet.no 2.2 7% 5. NRK 1.9 27% 6. 1.8 20% 9. 1.1 10% 17. 0.6 20% Unique weekly visitors (m) Change Y/Y 1. MSN network 9.4 32% 2. 4.9 20% 3. 3.3 14% 4. Eniro.se 3.0 7% 5. 2.6 4% 18. E24.se 0.8 - 19. SvD.se 0.8 33% 20. Prisjakt.nu 0.7 17% Source: TNS Gallup, Kiaindex Note: Week 50 of 2009 Schibsted’s superior online traffic positions enable rapid and efficient launch of new concepts (e.g. Nettby, E24) Schibsted’s properties The most used online sites in Norway and Sweden
  7. 7. Note: percentages based on online and offline businesses’ contribution to revenues in FY2002 and last twelve months as of Q3 2010; online revenues in FY2002 include online newspapers and FINN ¹ Excluding corporate costs and eliminations Schibsted’s online activities represents 30% of Group revenues and 53%¹ of Group EBITA today Online 30% Offline 70% in 2002 Online 3% Offline 97% Unique position – strong online footprint 8
  8. 8. 9 Revenue split Media Houses online 6% Media Houses offline advertising 25% Media Houses circulation 35% Media Houses other 11% Online classifieds 23% Total revenue Q3 2010 MNOK 3,288
  9. 9. Unique position – strong online footprint 0 % 5 % 10 % 15 % 20 % 25 % 30 % The Washington Post Co. E.W. Scripps Gannett NY Times INM DMGT Johnston Press Trinity Mirror Mecom Axel Springer Schibsted Europe USA Digital/online share of revenues 2009 10
  10. 10. 11 ”Schibsted is now the global No. 3 in online classifieds, behind eBay and Craigslist” Bloomberg Business Week, October 2010 One of the global leaders in Online classifieds
  11. 11. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2,008 2,009 2,010 Unike brukere VG Nett, snitt pr uke sommer +420 000 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2008 2009 2010 Unike bruker VG Mobil, snitt uke pr sommer +215 000 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Snitt 09 Snitt 10 Mobil Nett + 340 000 We observe an altered traffic pattern moving from net to mobile – facilitated of iPhone and other smartphones Source: Uke 25 -31, TNS Gallup Metrix/Scores From desktop to mobile Average weekly UV VG Nett Average weekly UV VG Mobil Average 2009 Average 2010
  12. 12. What consumers will expect Always-On Access with Super-Fast ‘Boot Time’ Near Zero Latency Access to Nearly All Information Day-Long-Plus Battery Life in Elegant Portable Devices Source: Morgan Stanley Internet Trends Report
  13. 13. Consumption throughout the day: PC, iPhone and iPad VG Nett Monday - Thursday Evening consumption is so far dominating the iPad usage 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % iPad Nett iPhone
  14. 14. Succeeding in creating multiple revenue streams is key for the future of our journalistic ambition Online News product needs increased journalistic resources to sustain brand equity The Online Advertising Boom scenario might not be enough to create profit with increased cost New revenue streams needed to: - Close the gap and create profitability - Hedge the volatile advertising market VG.no and Aftonbladet.se’s multiple revenue streams management key success factors Segment leadership Broad reachStrong brand Cost control Loyal traffic
  15. 15. Combined, we are facing dramatic increase in operations and revenue streams complexity Music industry's learning Online News industry’s lesson • 115 different products • 19 million units • CD sales constitutes 20% of total revenues • Push a hit in all channels and formats • As fast as possible! Tomorrow; Several smaller revenue streams User payment Online Advertising Mobile Advertising Web-TV advertising Print Subscriptions & single copy sales Print Advertising Related Services Etc… Yesterday; Few huge value buckets Print Subscriptions & single copy sales Print Advertising Online Advertising
  16. 16. Parts of the user payment adoption probably lies in the packaging of content on mobile devices Full accessibility, strong brand and offering premium experiences are all important areas driving willingness to pay
  17. 17. Hamburger Abendblatt • www.Abendblatt.de - iPad 8x3 Access to National and International news is free, access to unique regional and local content is behind paywall.
  18. 18. TV Guide for iPad launched in app store September 1st.
  19. 19. ONLINE SUBSCRIPTION – AFTONBLADET PLUS BEST SELLERS: •ARTICLE ABOUT HEALTH AND WELL BEING •TRAVEL GUIDES •LISTINGS - TAXATION ETC. •TESTS: EVERYTHING FROM CARS .. TO SHAVERS ...
  20. 20. MICRO PAYMENT PIECE BY PIECE ANOTHER WAY OF BUYING OUR PREMIUM CONTENT QuickTime och en H.264-dekomprimerare krävs för att kunna se bilden.
  21. 21. PAY PER VIEW We also sell TV programs and documentaries Example: Selling National Geographics and Factual TV documentaries. Aftonbladet gets 50% provision. QuickTime och en H.264-dekomprimerare krävs för att kunna se bilden.
  22. 22. (Pay) Clubs WEIGHT CLUB € 30 –3 MONTHS € 40–6 MONTHS € 50–12 MONTHS
  23. 23. E-commerce
  24. 24. CUSTOMER FIGURES PREMIUM CONTENT PREMIUM JOURNALISTIC 55% 11% E- COMMERCE 34% CLUBS 20% AFTONBLADETS ONLINE REVENUES ARE USER REVENUES
  25. 25. PAYMENT MODELS CLUBS SEK XX BASE PLUS SEK XX FREE MATERIAL PREMIUM PLUS SEK XX NewsLifestyle
  26. 26. Charles Darwin ”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” ‘Survival of the fittest’
  27. 27. Thanks for your attention….

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