1. Online media in Germany
Cat food, iPads and a prayer to Steve Jobs
Konrad Lischka, www.konradlischka.info

2. 1998-2011: The Web in Germany

3. Web usage became mainstream – internet
penetration is at 73 %
Average usage
80 5,6 days/week
138 min/day
Internet users per 100 inhabitants (usage in
the last four weeks) 72,6
70 68,1
64,3 64,7
60,7
60
56,7 57,6
52,6
51,5
50
44,1
40 38,8
30 28,6
20 17,7
10,4
10
6,5
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Base: German population 14 years and older
Source: ARR/ZDF-Onlinestudie (http://klischka.de/s/onliner)

4. steady increase in online usage in age groups 50
years and older in the past two years
Internet users per 100 inhabitants in age group
(usage in last three months) 100 100
100 97,3 97,2 97,5
94,7 95,7 95,8 94,4
92,1 90,7
14–19 89,4 89,9
90 87,9
20–29
30–39 80,6 81,9 81,9
79,9 80,2
80 40–49 76,9 77,3
75,9
50–59 73,1 73,8
60+ 71 72
69,9 68,9 69,1
70 67,4 67,4 67,4
65,6 64,2 65,7
60
60 56,5
52,7
50,3
49,3 48,8
48,5 47,8
50
%
41,1
40
35,4 34,5
32,2 32,2
30
27,1 28,2
30
25,1 26,4
24,5
22,1
18,9 19,6 20,3
20
18,4
15,6 15,1 14,5
12,4 13,3
11,1
7,7 8,1 7,8
106,3
3 4,4 4,4
0,8 1,9
0,2
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
year
Base: German population 14 years and older
Source: ARR/ZDF-Onlinestudie (http://klischka.de/s/onliner)

5. In absolute numbers: the majority of German
web users is older that 40
online users, extrapolation (millions)
7
(online usage in the last three months)
50 5,7
60+
50–59 7,7
40–49 5,3 7,5
5,1
30–39 5,1
40 20–29 4,1
14–19 3,7 6,2 6,6
12,3
2,8 6,1 11
2,5 5,6
5,5 5,3
4,7 9,4 9,9
30 8,4 8,7
1,4 7,8 8,1
3,5 7,6
million users
1,5 9,6 9,7
3,2 5,2
8,9 8,6
8,9 8,5
5,2 8,5 8,9 9,1
20
0,8 7,9
2,2
3,3 6,1 9,6 9,6
7,5 7,9 8,1
0,3
5
6,2 6,4 6,5 6,8
1,6 6,5
10 2 5,5
0,1
0,5 2,9 4,6
1,1 5,5 5,3
2,2 5 4,7 4,8 5 4,9 5,1 5
0,3
0
0,7 2,9 3,8
1,4 1,9 3,3
2,4
1,3 1,4
0,3 0,7
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
year Base: German population 14 years and older
Source: ARR/ZDF-Onlinestudie (http://klischka.de/s/onliner)

6. 1998-2011: Winners & Loosers

7. Some attention shifts to the web, overall media
usage increases
Average daily media usage 2011
Average daily media usage 2000
(in minutes per day, Germans aged 14+)
(in minutes per day, Germans aged 14+)
10 18 6 28,5
36 35
23
30
TV TV
185 Radio Radio
220
13 Internet Internet
Newspaper Newspaper
Music-CD
83 Music-CD
Books Books
Magazines Magazines
206
187
Source: ARD/ZDF-Langzeitstudie Massenkommunikation
(http://klischka.de/s/mk00 / http://klischka.de/s/mk10)

8. Some attention shifts to the web, overall media
usage increases – TV/Radio/Newpapers loose
younger users
Average daily media usage 2011
(in minutes per day, Germans aged 14-29)
3 28,5
130
75
TV
Radio
Internet
8,5 Newspaper
Music-CD
Books
Magazines
136
127
Source: ARD/ZDF-Langzeitstudie Massenkommunikation
(http://klischka.de/s/mk00 / http://klischka.de/s/mk10)

9. Newspapers are loosing readers: overall
circulation 21,3% down since 2000
But national Broadsheet are doing better, weekly Die Zeit gained 15%, now at 500.000+ sold copies, decline of Sunday
Papers a bit misleading Bild am Sonntag lost 38%, but broadsheet Frankfurter Allgemeine Sonntagszeitung started in 2001
and sells 338.000 copies in 2011
average circulation per issue in 2nd quarter of given year
35 (millions)
sunday papers
weekly
tabloid daily
4,5 4,5
30 4,5 regional daily
4,3 national broadsheet daily
4,16
-28,6% 3,72
3,83 3,71
2 1,9 3,55
1,8 3,43 3,38
25 1,9
5,7 5,7 1,9 3,21
5,4 2
5,1 1,9 2 2
5 2 1,94
-33,3% 4,7
3,8 4,6 4,5 1,85
4,3 4,4
20
3,8
16,6 16,4 16,1 15,8 15,4 15,1 14,8 14,5 14,3 14 13,74 13,5
15
-18,6%
10
5
1,6 1,7 1,7 1,6 1,6 1,6 1,6 1,6 1,6 1,6 1,6 1,56
0
2000 2001 2002 2003 2004 2005 2006 2007 Source: IVW (http://www.ivw.de)
2008 2009 2010 2011

10. Advertising revenue shifts to the web
Overall Revenue: Share of advertising spending 2005-2010: TV and web up, newspapers down Overall Revenue:
20,1 billion Euros 29,1 billion Euros
(share of overall advertising gross revenue, %)
100
19,4% 18,9% 17,5% 16,1% 13,9% 12,9%
90
80 39,1%
37,7%
36,9%
37,7% 36,8%
40,2%
70
posters
60 trade magazine
radio
general interest magazines
50 TV
Newspapers
Online
40 21,4% 19,0%
22,0%
23,0%
24,1%
25,0%
30
20
19,2%
16,5%
14,8%
12,1%
10 08,7%
04,4%
0
2005 2006 2007 2008 Source: OVK / Nielsen Media Research (http://klischka.de/s/ovk 2010
2009

11. Newspapers are loosing advertising revenue – overall
revenue fell 18,3 % from 1999 to 2010
Newspaper revenue breakdown by segments
12
(net revenue in billion Euros) advertising revenue (bn Euros)
circulation revenue (bn Euro)
6,55
10
6,06
5,99
4,37
4,93
4,4 4,5 4,5
4,45 4,5
3,69 3,63
8
- 40,09 %
6
4,72
4,13 4,27 4,28
3,95 3,97 4,09 4,09
4 3,9
3,68
3,51 3,4
2
+21,93%
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: BVDZ (http://klischka.de/s/bdzv

12. On the web newcomers take the majority of
advertising revenue
 Google took - estimated - 50 percent of German online advertising revenue in 2010
 Google dominates the German search and search advertising market with a share of
93 % (3/2011, Webtrekk)
German online advertising revenue by segment
(2010, million Euros)
373
Affiliate
Search Keywords (approx 93% Google)
Banner/Layer/Video
approx. net revenue
2.076
approx. net revenue
3.781
Source: OVK (http://klischka.de/s/ovk)

13. German top sites in July 2011 – only two news sites in
the top 50, five in the top 100
Rank Domain Unique Visitors (millions) Share of German web users (%)
1 google.de 38,6* 74,7 %
2 facebook.com 35 67,7 %
3 youtube.com 31 60,0 %
4 ebay.de 23 44,5 %
5 wikipedia.org 19 36,8 %
6 t-online.de 18 34,8 %
7 amazon.de 17 32,9 %
8 web.de 14 27,1 %
….
13 bild.de 10 19,3 %
…
19 Partypoker 6,9 13,3 %
…
21 wer-kennt-wen.de 6,2 12,0 %
21 Spiegel.de 6,2 12,0 %
…
23 immobilienscout24.de 6,1 11,8 %
23 Mobile.de 6,1 11,8 %
24 otto.de 5,6 10,8 %
Source: Google Ad Planner (http://www.google.com/adplanner/) / *Nielsen (http://klischka.de/s/topjul1)

14. 1998-2011: How media giants adapt

15. German publisher Hubert Burda in 2009:
„You get lousy pennies on the web.“
(for journalism)
Source: Heise (http://klischka.de/s/hbpennies)

16. Hubert Burda Media earns a lot of pennies on the web
– 586 million Euros in 2010
Private company, revenue 1,7 billion Euros 2010, 7.737 employees.
Hubert Burda Media revenue breakdown by segments 2010 / % / change to 2009
(million Euros)
6€ 128 € +3,7%
587 €
-3,3%
7,4% publishing Germany
publishing international
digital
34,1%
35,1% 604 € printing plants
other
+19%
23,1%
397 €
+15,6% Source: Hubert Burda Media (http://klischka.de/s/burda)

17. … but not so much with journalism, rather with cat
food, gadgets and games
digital acquisitions (minority/majority) over
the years since 1999:
 E-Commerce: Zooplus (stuff for pets),
Lumas (photo art), Cyberport (Tech)
 Social Networks: Xing
 Special Interest Portals: Edellight,
Suite101, Etsy (handcrafted stuff),
Holidaycheck (hotel reviews), Jameda
(doctor reviews), Elitepartner (online dating),
Glam (Blogs)
 Games: GameDuell
 Online Media: Focus Online, Chip Online
Source: Hubert Burda Media (http://klischka.de/s/burdadig)

18. Xing – some people pay for using a social network
For a premium account you pay 71,40 Euros / year. That's what you get:
 Sending messages to everybody
 Seeing who visited your profile
 Some discounts and special deals
It works for Xing:
 10,45 million members in 2010 – 745.000 premium members (7,1 %)
 54,3 million € revenue 2010, EBITDA 16,7 million € - 31% margin
Source: Xing (http://klischka.de/s/xing)

19. Axel Springer AG CEO Mathias Döpfner
about the iPad (2010):
(Publishers should) „Sit down once
a day and pray to thank Steve Jobs
that he is saving the publishing
industry.“
Source: PBS (http://klischka.de/s/mdipad)

20. Springer: paid content on mobile devices for
journalism brings 189.066 digital customers (1H/2011)
 Bild and Welt available since 12/2009 as iPhone Apps (79 Cent / issue)
 Bild HD for iPad since 12/2010, Welt HD since 6/2010
 Price: 0,79 € / issue; 9,99 € / month; 89,99 € / year
Source: Axel Springer Analystencall H1 2011 (http://klischka.de/s/asv

21. Springer: Buying digital competitors - digital media
share of total revenues 29% in 2011
Company:
 40,8 % of shares free floated, majority of shares owned by Friede Springer
 2,89 billion Euros revenue / 11.563 employees in 2010
Problems:
 Bild lost 34 % of its circulation in ten years: 4,4 m. (2/2001) > 2,9 m (2/2011)
 Wanted to take over TV-conglomerate ProsiebenSat1 in 2005 – anti-trust-authority
stopped the deal
Many digital acquisitions over the years:
 Advertising: online brochures (KaufDA), career portals (Stepstone), price
comparison service (Idealo), property portals (Immonet, Seloger), affiliate advertising
(Zanox)
 Special interest Communities / Portals (Transfermarkt, aufeminin.com,
netmums.com, finanzen.net)
 Online games (Gamigo)

22. Springer: digital advertising revenues in 2011 higher
than print advertising
Source: Axel Springer Analystencall H1 2011 (http://klischka.de/s/asv)

23. Springer: national newspapers (=Bild) are still a great
business, but margins and revenues are shrinking
 Tight cooperation between Bild & Bild.de
 One newsroom for Welt-Gruppe: 400 journalists create content for three national
and one regional Berlin) newspaper
National newspapers Digital media
Source: Axel Springer Analystencall H1 2011 (http://klischka.de/s/asv)