The New Media Economy and thestar.com J.Sims June 2009
Media 1.0 Media 2.0
Scarcity Abundance
Online Newspaper Visit: 10 Mins Print Newspaper: 40 Mins TV Show: 30 – 60 Mins Avg Youtube video: 3.5 Mins Twitter Post : ...
Scarce Media Abundant Attention
Abundant Media Scarce Attention
Basic Supply and Demand Price Quantity Supply Demand
Media 1.0 Supply and Demand Price 2 Quantity Supply Demand Demand 2 Price
Umair Haque Media 1.0 = The Age of the Blockbuster
Media 2.0 Supply and Demand Price Quantity Supply Demand Media 2.0 Supply Media 2.0 Demand Media 2.0 Price HYPERDEFLATION
Media 2.0 = the End of the Blockbuster Age.
And the beginning of the Age of Snowballs.
Snowballs = Micro Content
Aggregators Micro-platforms Re-constructors
Blog Post YouTube Video Star Article Influential Blogger Aggregator High Traffic Site
Blockbuster Growth Value Output Cinema DVD TV Consumer Goods
Blockbuster Growth Value Output The Star Metro Thestar.com Email marketing, etc.
Snowball Growth Value Output Micro Content Blogger Aggregator High Traffic  Site
Micro Content coolhunting Nypost.com Nytimes.com Bloggers
Micro Content Influential Blogger Digg Today Show Amazon
The growth of snowballs requires user engagement and community.
Clay Shirky <ul><li>Digital Natives Expect to: </li></ul><ul><li>Interact with </li></ul><ul><li>Contribute to </li></ul><...
 
 
The Snowball Economy Snowball Price Quantity A growing number of snowballs pushes the demand curve up Media 2.0 Supply Med...
This seems like chaos.
Steven Johnson: News Ecosystem
 
 
Smart Aggregator Reconstructor Entry Entry Entry Microplatform Blog Blog Blog Comment Personal Cast Personal Cast Personal...
Media 1.0 <ul><li>Closed </li></ul><ul><li>Dominant </li></ul><ul><li>Portal </li></ul>Media 2.0 <ul><li>Open </li></ul><u...
Sources of Competitive Advantages in Media 2.0 Quantity:  Aggregate more than competitors. Quality:  Micro-differentiate m...
2 Roles for News Organizations in the Media 2.0 Economy Curate the News Ecosystem  Create vertical content sites
Revelation – what’s good?
Aggregation – elegant organization
Plasticity – let me make it my own RSS Feeds
For the Star to thrive in the Media 2.0 world, we will need to make some key strategic changes.
Inside Out Outside In <ul><li>Star staff are the only voices on the site </li></ul><ul><li>One-way conversations </li></ul...
 
 
 
 
 
 
 
 
 
Ownership Curation <ul><li>All content on the site is produced by Star editors and freelancers </li></ul><ul><li>Bring ele...
Closed Ecosystem <ul><li>Us against them mentality with other sites </li></ul><ul><li>Linking to competitors, community bl...
 
Product Service <ul><li>Stories and articles professionally produced and packaged for delivery to an audience </li></ul><u...
Mass Niche/ Vertical
Why Verticals? <ul><li>Smart aggregators will consolidate horizontally and fragment vertically. </li></ul><ul><li>-  Umair...
Separate brands enable us to attract new audiences and to expand the verticals nationally.
The verticals are designed to be the ultimate resources for homes, health and parenting information in the GTA. <ul><li>Ne...
 
Advertisers prefer contextual environments because they provide a higher return on investment.
Featured Advertiser Text Link Home Page of the Star: 0.02% CTR Parentcentral:  0.17% CTR
Display Ad thestar: 0.08% CTR Parentcentral:  0.16% CTR
Catfish Ad Toronto.com: 0.5% CTR Yourhome:  4.3% CTR
On average, revenue from the verticals is  115% higher  than revenue attributed to the living section of thestar.com On av...
In short:
The economics of media have shifted.
Scarcity and abundance have flipped.
Where mass was once king, now we see a mass of niches on the web.
This has caused hyperdeflation in media value and the end of the blockbuster age.
Hyperdeflation is countered by the snowball effect.
Snowballs are pieces of micro-content.
The old media blockbuster economy was built on exclusion.
The new snowball economy is built on being open to aggregators, micro-platforms and re-constructors.
And by capitalizing on economies of distribution, coordination and production.
As curators of the news ecosystem, we can provide three kinds of value.
Revelation – What’s good? Aggregation – Elegant organization Plasticity – Let me customize your content to meet my needs
This new economy requires radically different product strategies.
Letting the outside in. Curation rather than ownership. Becoming part of the ecosystem. Viewing the site as a service rath...
www.simsblog.typepad.com
Want More? <ul><li>Here Comes Everybody – Clay Shirky </li></ul><ul><li>What Would Google Do – Jeff Jarvis </li></ul><ul><...
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The New Media Economy And Thestar V3

  1. 1. The New Media Economy and thestar.com J.Sims June 2009
  2. 2. Media 1.0 Media 2.0
  3. 3. Scarcity Abundance
  4. 4. Online Newspaper Visit: 10 Mins Print Newspaper: 40 Mins TV Show: 30 – 60 Mins Avg Youtube video: 3.5 Mins Twitter Post : 140 characters Blog Post: 3-10 Paragraphs
  5. 5. Scarce Media Abundant Attention
  6. 6. Abundant Media Scarce Attention
  7. 7. Basic Supply and Demand Price Quantity Supply Demand
  8. 8. Media 1.0 Supply and Demand Price 2 Quantity Supply Demand Demand 2 Price
  9. 9. Umair Haque Media 1.0 = The Age of the Blockbuster
  10. 10. Media 2.0 Supply and Demand Price Quantity Supply Demand Media 2.0 Supply Media 2.0 Demand Media 2.0 Price HYPERDEFLATION
  11. 11. Media 2.0 = the End of the Blockbuster Age.
  12. 12. And the beginning of the Age of Snowballs.
  13. 13. Snowballs = Micro Content
  14. 14. Aggregators Micro-platforms Re-constructors
  15. 15. Blog Post YouTube Video Star Article Influential Blogger Aggregator High Traffic Site
  16. 16. Blockbuster Growth Value Output Cinema DVD TV Consumer Goods
  17. 17. Blockbuster Growth Value Output The Star Metro Thestar.com Email marketing, etc.
  18. 18. Snowball Growth Value Output Micro Content Blogger Aggregator High Traffic Site
  19. 19. Micro Content coolhunting Nypost.com Nytimes.com Bloggers
  20. 20. Micro Content Influential Blogger Digg Today Show Amazon
  21. 21. The growth of snowballs requires user engagement and community.
  22. 22. Clay Shirky <ul><li>Digital Natives Expect to: </li></ul><ul><li>Interact with </li></ul><ul><li>Contribute to </li></ul><ul><li>Organize </li></ul><ul><li>and Share </li></ul><ul><li>the media they interact with . </li></ul>
  23. 25. The Snowball Economy Snowball Price Quantity A growing number of snowballs pushes the demand curve up Media 2.0 Supply Media 2.0Demand Media 2.0 Price Lower Demand for Blockbusters
  24. 26. This seems like chaos.
  25. 27. Steven Johnson: News Ecosystem
  26. 30. Smart Aggregator Reconstructor Entry Entry Entry Microplatform Blog Blog Blog Comment Personal Cast Personal Cast Personal Cast Entry Entry Entry Entry Entry Entry Selected Micromedia Selected Micromedia Selected Micromedia Entry Entry Entry Blog Blog Personal Cast Entry Blog Comment
  27. 31. Media 1.0 <ul><li>Closed </li></ul><ul><li>Dominant </li></ul><ul><li>Portal </li></ul>Media 2.0 <ul><li>Open </li></ul><ul><li>Economies: </li></ul><ul><li>distribution </li></ul><ul><li>coordination </li></ul><ul><li>production </li></ul>
  28. 32. Sources of Competitive Advantages in Media 2.0 Quantity: Aggregate more than competitors. Quality: Micro-differentiate more narrowly than competitors.
  29. 33. 2 Roles for News Organizations in the Media 2.0 Economy Curate the News Ecosystem Create vertical content sites
  30. 34. Revelation – what’s good?
  31. 35. Aggregation – elegant organization
  32. 36. Plasticity – let me make it my own RSS Feeds
  33. 37. For the Star to thrive in the Media 2.0 world, we will need to make some key strategic changes.
  34. 38. Inside Out Outside In <ul><li>Star staff are the only voices on the site </li></ul><ul><li>One-way conversations </li></ul><ul><li>“ Authority” </li></ul><ul><li>The site as a community </li></ul><ul><li>Listen well to our users </li></ul><ul><li>Users and editors collaborate to create the site experience </li></ul><ul><li>Commenting, discussion, polling, user suggestions on story ideas, questions for interviewees, etc. </li></ul>
  35. 48. Ownership Curation <ul><li>All content on the site is produced by Star editors and freelancers </li></ul><ul><li>Bring elegant organization to info on the web </li></ul><ul><li>Finding what’s good requires excellent knowledge of our users, what they want and what works online </li></ul><ul><li>Stop paying for content that the web is already generating for us </li></ul><ul><li>Do what we do best and link to the rest </li></ul>
  36. 49. Closed Ecosystem <ul><li>Us against them mentality with other sites </li></ul><ul><li>Linking to competitors, community bloggers, government sites, data and map sites </li></ul><ul><li>Working with smaller local sites and blogs to form advertising networks </li></ul>
  37. 51. Product Service <ul><li>Stories and articles professionally produced and packaged for delivery to an audience </li></ul><ul><li>Data, tools, links and content serve as a platform for discussion and interaction </li></ul><ul><li>Applications are created to allow for the syndication and distribution of the content across the web </li></ul>
  38. 52. Mass Niche/ Vertical
  39. 53. Why Verticals? <ul><li>Smart aggregators will consolidate horizontally and fragment vertically. </li></ul><ul><li>- Umair Haque </li></ul>
  40. 54. Separate brands enable us to attract new audiences and to expand the verticals nationally.
  41. 55. The verticals are designed to be the ultimate resources for homes, health and parenting information in the GTA. <ul><li>News and information </li></ul><ul><li>Blogs </li></ul><ul><li>Data </li></ul><ul><li>Listings </li></ul><ul><li>Local, national and classified advertising </li></ul>
  42. 57. Advertisers prefer contextual environments because they provide a higher return on investment.
  43. 58. Featured Advertiser Text Link Home Page of the Star: 0.02% CTR Parentcentral: 0.17% CTR
  44. 59. Display Ad thestar: 0.08% CTR Parentcentral: 0.16% CTR
  45. 60. Catfish Ad Toronto.com: 0.5% CTR Yourhome: 4.3% CTR
  46. 61. On average, revenue from the verticals is 115% higher than revenue attributed to the living section of thestar.com On average, TDC national revenue is 367% higher than revenue attributed to the entertainment section of thestar.com
  47. 62. In short:
  48. 63. The economics of media have shifted.
  49. 64. Scarcity and abundance have flipped.
  50. 65. Where mass was once king, now we see a mass of niches on the web.
  51. 66. This has caused hyperdeflation in media value and the end of the blockbuster age.
  52. 67. Hyperdeflation is countered by the snowball effect.
  53. 68. Snowballs are pieces of micro-content.
  54. 69. The old media blockbuster economy was built on exclusion.
  55. 70. The new snowball economy is built on being open to aggregators, micro-platforms and re-constructors.
  56. 71. And by capitalizing on economies of distribution, coordination and production.
  57. 72. As curators of the news ecosystem, we can provide three kinds of value.
  58. 73. Revelation – What’s good? Aggregation – Elegant organization Plasticity – Let me customize your content to meet my needs
  59. 74. This new economy requires radically different product strategies.
  60. 75. Letting the outside in. Curation rather than ownership. Becoming part of the ecosystem. Viewing the site as a service rather than a product. Moving from mass to vertical.
  61. 76. www.simsblog.typepad.com
  62. 77. Want More? <ul><li>Here Comes Everybody – Clay Shirky </li></ul><ul><li>What Would Google Do – Jeff Jarvis </li></ul><ul><li>Grown Up Digital – Don Tapscott </li></ul><ul><li>Crowdsourcing – Jeff Howe </li></ul>

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