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François Nel
what’s on

 the menu
            today?
the alchemy of media business model innovation
Reciprocity   Claude Lévi-Strauss took the idea that
              collective consciousness is best
              achieved through structures of
              reciprocity and related systems of
              exchange and proposed three
              fundamental properties of the human
              mind:
              1) people follow rules;
              2) reciprocity is the simplest way to
              create social relationships;
              3) a gift binds both giver and recipient
              in continuing social relationship.


                             Source: Layton, 1997:76
Innovation Study 2012
  World News media




                        * Formerly the World News Future & Change Study conducted as a
                        collaboration amongst WAN-IFRA, University of Central Lancashire,
                        Norwegian Business School
Price
paywalls
              time      time, attention, information, activity…         money
Customers




              free to                       pay per use         fee for all
                        metered by
                all     time or quantity
                                             (upfront) e.g.      content &
Reciprocity




                                           iTunes, Oystercard     activity



                                                                  free to
              free to    “freemium”, i.e. fee for certain          some
               some       content, services & activities
 Company




                free                   loss leaders                     fee

                                           price                        © François Nel
•   Demand
    •   Cost
    •   Competition
Price
    •   Mark-up chain in channels
    •   Price of other products in the line
    •   Pricing objectives
    •   Price flexibility
    •   Discounts and allowances
    •   Geographic pricing items
    •   Legal environment
- 4.63



                        +58.89%




1,876,618         4,838,140   (84,172,568)            16,871 like this
                                                      1,911 talking about this
Annual Report 2011: DMGT annual report shows national media profit of £75.8
before interest, taxes and amortization in the 2nd week of October 2011
                              Source: http://www.guardian.co.uk/media/2012/jan/26/newspaper-websites-abce
                                                                             *Facebook visits on 01/02/2012
- 14.10% year on year
                               + 31.45%



                                                         4 million +




      230108            2,937,070                        *278,580 like this
                                                         16,574 talking about this
Annual Report 2011: The continuing GMG businesses made an operating loss before
exceptional items of £54.5million in the year (2010 loss £53.9 million). The increase
in loss of £0.6million year-on-year largely reflects a reduction in overall revenues of
£24.9 million offset by cost savings amounting to £24.3million.
                                    Source: http://www.guardian.co.uk/media/2012/jan/26/newspaper-websites-abce
                                                                                   *Facebook visits on 01/02/2012
Digital channels are           Digital channels
substitutes for the            supplement the papers
papers




                       It’s the App you’ve all been waiting for… FREE for 60
                                                                       days
                           Now you need NEVER be without your
                                        favourite website again
                          You can get the MailOnline app on your iPhone or
                                iPod Touch and put it in your pocket to take
                            wherever you go. Our brilliant app is everything
                             you’d expect from Britain’s biggest newspaper
                                                                    website.

Cannibalisation                      Complementary
4 million +




*278,580 like this
                            16,871 like this
16,574 talking about this
                            1,911 talking about this
4 million + w/ 1m hits per day




278,580 like this                16,871 like this
16,574 talking about this        1,911 talking about this
INFRASTRUCTURE                               OFFER                                   CUSTOMER
                   PARTNER                                        CUSTOMER
                   NETWORK                                       RELATIONSHIP
    CORE                                    VALUE                                     TARGET
 CAPABILITIES                            PROPOSITION                                 CUSTOMER
                     VALUE                                       DISTRIBUTION
                 CONFIGURATION                                     CHANNEL




                     COST                   FINANCE                REVENUE
                  STRUCTURE                                        STREAMS




                  a business model describes the value an organization offers to
                   various customers and portrays the capabilities and partners
                  required for creating, marketing, and delivering this value and
                   relationship capital with the goal of generating profitable and
                                   sustainable revenue streams
Thank you
         François Nel
           @francoisnel
  www.ukjournalism.org/jleader
      www.uclan.ac.uk/made
Digitaleditorsnetwork.blogspot.cm

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Francois Nel at news:rewired

  • 2. what’s on the menu today?
  • 3. the alchemy of media business model innovation
  • 4. Reciprocity Claude Lévi-Strauss took the idea that collective consciousness is best achieved through structures of reciprocity and related systems of exchange and proposed three fundamental properties of the human mind: 1) people follow rules; 2) reciprocity is the simplest way to create social relationships; 3) a gift binds both giver and recipient in continuing social relationship. Source: Layton, 1997:76
  • 5. Innovation Study 2012 World News media * Formerly the World News Future & Change Study conducted as a collaboration amongst WAN-IFRA, University of Central Lancashire, Norwegian Business School
  • 6.
  • 7.
  • 8.
  • 10. paywalls time time, attention, information, activity… money Customers free to pay per use fee for all metered by all time or quantity (upfront) e.g. content & Reciprocity iTunes, Oystercard activity free to free to “freemium”, i.e. fee for certain some some content, services & activities Company free loss leaders fee price © François Nel
  • 11. Demand • Cost • Competition Price • Mark-up chain in channels • Price of other products in the line • Pricing objectives • Price flexibility • Discounts and allowances • Geographic pricing items • Legal environment
  • 12.
  • 13.
  • 14. - 4.63 +58.89% 1,876,618 4,838,140 (84,172,568) 16,871 like this 1,911 talking about this Annual Report 2011: DMGT annual report shows national media profit of £75.8 before interest, taxes and amortization in the 2nd week of October 2011 Source: http://www.guardian.co.uk/media/2012/jan/26/newspaper-websites-abce *Facebook visits on 01/02/2012
  • 15. - 14.10% year on year + 31.45% 4 million + 230108 2,937,070 *278,580 like this 16,574 talking about this Annual Report 2011: The continuing GMG businesses made an operating loss before exceptional items of £54.5million in the year (2010 loss £53.9 million). The increase in loss of £0.6million year-on-year largely reflects a reduction in overall revenues of £24.9 million offset by cost savings amounting to £24.3million. Source: http://www.guardian.co.uk/media/2012/jan/26/newspaper-websites-abce *Facebook visits on 01/02/2012
  • 16. Digital channels are Digital channels substitutes for the supplement the papers papers It’s the App you’ve all been waiting for… FREE for 60 days Now you need NEVER be without your favourite website again You can get the MailOnline app on your iPhone or iPod Touch and put it in your pocket to take wherever you go. Our brilliant app is everything you’d expect from Britain’s biggest newspaper website. Cannibalisation Complementary
  • 17. 4 million + *278,580 like this 16,871 like this 16,574 talking about this 1,911 talking about this
  • 18.
  • 19.
  • 20. 4 million + w/ 1m hits per day 278,580 like this 16,871 like this 16,574 talking about this 1,911 talking about this
  • 21. INFRASTRUCTURE OFFER CUSTOMER PARTNER CUSTOMER NETWORK RELATIONSHIP CORE VALUE TARGET CAPABILITIES PROPOSITION CUSTOMER VALUE DISTRIBUTION CONFIGURATION CHANNEL COST FINANCE REVENUE STRUCTURE STREAMS a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams
  • 22. Thank you François Nel @francoisnel www.ukjournalism.org/jleader www.uclan.ac.uk/made Digitaleditorsnetwork.blogspot.cm