Presentation on Sanoma Media and its app development program and results to a group of journalists visiting Amsterdam as part of 'Amsterdam Innovation Motor' initiative

1. Planet of the Apps
Amsterdam, October 12, 2011
Herman Kienhuis (@kienhuis), BusDev Sanoma Media

2. Contents
•Sanoma Media introduction
•Mobile & Tablets
•Planet of the Apps
•Q&A

3. Sanoma Media: leading
multi-media company
in the Netherlands

4. •Mid-sized European media group
• Founded and headquartered in Finland
• Focused on Media and Education
• Present in Finland, Netherlands and Belgium and Russia &
Central Eastern Europe
•Leading media company in the Netherlands
• #1 Dutch magazine publisher (Hoofddorp)
• #1 Dutch online publisher (Amsterdam-West)
• #2 Dutch Commercial TV broadcaster (Amsterdam-East):
SBS6, Net5, Veronica

5. Sanoma Media NL

6. #1 Consumer magazine publisher
115,508,778 copies sold in 2010

7. #1 Online publisher

8. #2 Commercial broadcaster
10%
3.5%
3.1%
2.5 5 7.5 10
2010 viewing shares

9. Smartphone & tablet
adoption is changing the
Dutch media landscape

10. Mobile: Always On

11. 1 in 3 people now have a smartphone;
in 2012: 1 in 2
% Smartphone adoption by market
NL
NL data: telecompaper

12. 0
50,000,000
100,000,000
150,000,000
200,000,000
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
NU.nl mobile pageviews
Apr-11
May-11
Jun-11
Jul-11
Aug-11
driven by proliferation of apps
Mobile internet usage booming,
iPhone
m.nu.nl
Android
Source: Sanoma Media

13. Why Apps?
•Developers community: 350k apps (75k for iPad)
•Easy discovery and installation: App Store
•One click payment: iTunes
•Customizable: Personal, Social
•Esthetic Experience: Apple UI
•Speed and accessibility
•Native use of device capabilities: GPS, compass,
accelerometer, tilt-sensor, microphone, camera

14. what mobile devices can
Sensor of the physical world:
• image
(e.g. barcode) recognition:
ShopSavvy, Google Goggles, Layar
• location:
Nike+, Foursquare, TomTom
• sound/speech:
Shazam, Siri
• movement:
SleepCycle, Pedometer

15. Mobile advertising is growing up
! &
Mobile messaging Mobile search Mobile display ads Mobile video
Time targeting Device targeting Content targeting Location targeting
Click to call Click to App Store Request form Coupon Click to buy

16. http://www.flickr.com/photos/schnaars/4544419991/
Tablets: Touching

17. A new category of comfortable
computing devices
Entertainment/ Information/ Entertainment/ Communication/
Inspiration Productivity Creation Monitoring
XL form Short form Medium form XS form
Push Pull Pull Push
TV/DVD Software/ Websites Apps/Websites Apps/Widgets
Movies/ Search/Social/ Ebooks/Photos/ Music/
VideoGames Video Video CasualGames
Hours Hours Quarters Minutes

18. iPad selling faster than iPhone
15 mln iPads sold in 3 quarters*
50,000,000
37,500,000
25,000,000
12,500,000
Actual sales
Analyst projections
0
Apr-10 Jul-10 Oct-10 Dec-10 Apr-11 Jul-11 Sep-11 Dec-11
* vs. 4 mln iPhones in first 3 quarters

19. Strong uptake of iPad sales
(>500.000) and usage in NL
NU.nl iPad app downloads & pageviews
400,000 30,000,000
300,000
20,000,000
200,000
10,000,000
100,000
0 0
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Downloads Pageviews Source: Sanoma Media

20. Changing news consumption
phone computer tablet
31% 62% 6%
overall overall overall
views views views
In the morning, relative People reading on computers iPad readers read more news
readership across all three consumer their greatest share of on the device at night than
platforms ramps up quickly online news that way during the day during other times of day
10%
8% Computer
7%
5% Smartphone
3%
iPad
2%
0%
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Source: NU.nl (based on sample data)

21. OPEN REALTIME MOBILE PERSONAL
intense household usage of iPad
How often do you use the How much time do you spend At home, what is your primary
iPad? on the iPad (on a day of usage)? computer that you use most
often now?
Once per day or less N/A
4% <30 min 2%
>2 hrs
16% PC/laptop
25%
36%
30-60 min. iPad
29% 62%
Multiple times a day 1-2 hours
96% 30%
Source: Sanoma iPad user survey 2011

22. OPEN REALTIME MOBILE PERSONAL
intense household usage of iPad
Which features on the iPad
How many iPads are there in use in do you use?
your household currently?
99% Reading news
79%
99% Surfing/browsing the web
99% Searching the web
95% E-mail
87% Photos
17% 86%
85%
Watching tv of videos
Playing games
81% Reading magazines
80% Online shopping
4% 78% Comparing prices and products
75% Social networks/blogging
74% Reading books
Source: Sanoma iPad user survey 2011

23. Sanoma Media:
taking the lead in
smartphone & tablet
app development

25. Speed up Create
investment scale
Build-up of
Learning
internal
by doing
expertise

26. Speed up Fund &
investment guide
Create
Share
concepts scale
new & code
skillset
>60 apps
new $
Measure
& Learn Develop
Learning & market Build-up of
by doing internal
expertise

27. Learning by
doing

28. Sanoma & Apps
>60 apps published
Accelerated app
development
program with
Budapest
80 devcentre
started ‘Planet of
the Apps’ program
60 to speed up
learning and
development
40 first
first android
iphone app
20 app
0
2008 2009 2010 2011

29. Sanoma & Apps
3 mln downloads so far (in NL)
3,000,000
app downloads (cum.)
2,250,000
1,500,000
750,000
0
May-09 Sep-09 Dec-09 May-10 Aug-10 Dec-10 May-11 Aug-11 Dec-11

31. €2.39 in-app €2.39 in-app free
€0.79 €2.39 free
free €0.79 free

32. The Dutch Digital magazine store

33. Q&A
@kienhuis
/hermankienhuis
/kienhuis