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„ Who says paper is
  dead? “




 Dr. Patrick Stähler | 1
8 theses
                          on the transformation of the
    MEDIA
    INDUSTRY

Dr. Patrick Stähler | 2
thesis
    1. Tradition is not a
       business model



Dr. Patrick Stähler | 3   Quelle: http://internet-manifest.de/
The deep fall of the music (media)
                          industry
Dr. Patrick Stähler | 4
„ Remember the times! How
                            emotional were the LPs’
                            covers!“
                                   “




Dr. Patrick Stähler | 5
The bigger the capacity became, the less emotion was attached to the
medium itself, ….…


                      Schallplatte   Musik CD          iPod Shuffle




                                                           1000 min




                          45 min         74 min



Dr. Patrick Stähler | 6
…and the worse did the record industry perform.

                                        Sales record industry worldwide
                                                 in bn $ (1999-2007)


                          41     40        40
               40                                   37
                                                            34         35
                                                                            33
                                                                                   32
                                                                                          30
               30



               20



               10



                 0
                          1999   2000     2001     2002    2003    2004     2005   2006   2007



Dr. Patrick Stähler | 7
Always the others, in particular their best customers were guilty for the
drastic decline




Dr. Patrick Stähler | 8
The industry responed with MOTS or More-of-the-Same. More records
and fighting the customers




Dr. Patrick Stähler | 9
Innovativ business model came from the outside




Dr. Patrick Stähler | 10
New customers needs emerge:
That‘s how my harddrive looks
like

  Dr. Patrick Stähler | 11
The case of the daily newspaper




  Dr. Patrick Stähler | 12
A little quiz




                           What is this?


Dr. Patrick Stähler | 13
10.000 mio. USD classified market is evapurated by Craigslist with just
sales of 100 Mio.




                            10.000 Mio. USD                                         100 Mio. USD
                           decline in classifieds                                turnover Craigslist
                                2000-2008


                                  Source: http://mediamemo.allthingsd.com/20090610/another-way-to-describe-the-
Dr. Patrick Stähler | 14          newspaper-crisis-the-craigslist-boom/
„ Tell me the difference.“
                                                    “




Dr. Patrick Stähler | 15
„ The Online version is
  everything what the print
  is plus a lot more
  multimedia content plus
  interactivity plus blogs.“
                           “




 Dr. Patrick Stähler | 16
„ But did the revenue
  sources follow you
  online?“
         “




Dr. Patrick Stähler | 17
„ The subscribers
                            turned their back
                            on you. As did the
                            classifieds :-(“
                                           “




Dr. Patrick Stähler | 18
„ Not really your
 day, dear media
 industry. Both of
 your business
 models are dated.
 Sorry!“
       “

Dr. Patrick Stähler | 19
thesis
    2. There is no such thing as
       a media industry. Every
       industry is special and
       faces different challenges

Dr. Patrick Stähler | 20
*from a business point




                           „ What is a
                             newspaper?* “


Dr. Patrick Stähler | 21
„ I buy a newspaper for news,
                             comments and background
                             stories!“
                                     “




Dr. Patrick Stähler | 22
„ With the WSJ I can reach 30%
                             of the decision makers! “




Dr. Patrick Stähler | 23
„ I buy the paper since I
                             am looking for a job.“
                                                  “




Dr. Patrick Stähler | 24
thesis
    3. Traditional print is not
       one business model but
       three, kept together by
       paper

Dr. Patrick Stähler | 25
Dr. Patrick Stähler | 26
thesis
    4. The 1-to-1 transfer of the
       print business model on
       the web does not work


Dr. Patrick Stähler | 27
„ How can I react to the
                             changes? “




Dr. Patrick Stähler | 28
„ Who says paper is
  dead? “




 Dr. Patrick Stähler | 29
„ Who says print is
  dead? “




 Dr. Patrick Stähler | 30
„ Print is not dead. Important
  is the right innovative
  business model like of The
  Economist!“  “




 Dr. Patrick Stähler | 31
„ Paper is in many aspects a much
                             better carrier medium than online.
                             Why don‘t we design business
                             models that use these advantages!“ “




                                                 Quelle: flickr.com/photos/marcelgermain/2272162061



Dr. Patrick Stähler | 32
thesis
    5. The medium shapes the
       message. Understand the
       ideosyncracies of each
       media

Dr. Patrick Stähler | 33
„ We have all the figures
  about our readers!““




Dr. Patrick Stähler | 34
thesis
    6. Start with customer
       insights. Which job do
       you solve for your
       customer?

Dr. Patrick Stähler | 35
„ Greatest innovation in newspapers
                             in the last 20 years:
                             The „commuters“ free papers!““




Dr. Patrick Stähler | 36
thesis
    7. Every medium needs a
       business models that
       builds on the medium‘s
       strengths and that solves
       a job for the customer

Dr. Patrick Stähler | 37
thesis
    8. Only business model
       innovation in print AND
       online will allow the
       publishers to survive.
       Tradition is NOT a
       business model!
Dr. Patrick Stähler | 38
„ Remember. Business model
  innovation needs courage!“
Be         BRAVE,
               really      YES, you can!
                                           .



Dr. Patrick Stähler | 40
How shall I start?

 UNDERSTAND
 YOUR BUSINESS
                           by using the

BUSINESS MODEL CANVAS

Dr. Patrick Stähler | 41
What business are we in? Our business model
Value architecture                                                                                      Value Proposition/ customer
           offer                                       distribution architecture                                            customers
   What is our offering?                                 How do we reach our                                            Who are our
                                                         customers?                                                     customers?
                                                                                                                        What job do we solve
                                                                                                                        for our customers?

       value chain

   What are our value
   creating steps?                                                                                                       value proposition
                                                                                          customer
                             activity 1   activity 2     activity 3      activity 4
   What is our value                                                                       activity
                                                                                                                        What value do we
   chain?
                                                                                                                        create for our
                                                                                                                        customers?
    core capabilities                                                 partner                                           What value do we
   What are the core                                     Which partners do we                                           create for our
   capabilities we need?                                 need?                                                          partners?




Revenue model                       cost structure                                                          sources of revenue
                              Cost structure is defined by                                                  With what do we earn
                              the value architecture                                                        money?



culture/ values               leadership style                                        relationship style                            values
                           What leadership style                                      How do we interact                     What values do we
                           do we have?                                                with each other and the                pursue?
                                                                                      customer?
More information at
http://blog.business-model-innovation.com
http://blog.business-model-
Dr. oec. Patrick Stähler
fluidminds GmbH
Patrick.Staehler@fluidminds.ch
www.fluidminds.ch

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Who says paper is dead? Business model innovation in the media industry

  • 1. „ Who says paper is dead? “ Dr. Patrick Stähler | 1
  • 2. 8 theses on the transformation of the MEDIA INDUSTRY Dr. Patrick Stähler | 2
  • 3. thesis 1. Tradition is not a business model Dr. Patrick Stähler | 3 Quelle: http://internet-manifest.de/
  • 4. The deep fall of the music (media) industry Dr. Patrick Stähler | 4
  • 5. „ Remember the times! How emotional were the LPs’ covers!“ “ Dr. Patrick Stähler | 5
  • 6. The bigger the capacity became, the less emotion was attached to the medium itself, ….… Schallplatte Musik CD iPod Shuffle 1000 min 45 min 74 min Dr. Patrick Stähler | 6
  • 7. …and the worse did the record industry perform. Sales record industry worldwide in bn $ (1999-2007) 41 40 40 40 37 34 35 33 32 30 30 20 10 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Dr. Patrick Stähler | 7
  • 8. Always the others, in particular their best customers were guilty for the drastic decline Dr. Patrick Stähler | 8
  • 9. The industry responed with MOTS or More-of-the-Same. More records and fighting the customers Dr. Patrick Stähler | 9
  • 10. Innovativ business model came from the outside Dr. Patrick Stähler | 10
  • 11. New customers needs emerge: That‘s how my harddrive looks like Dr. Patrick Stähler | 11
  • 12. The case of the daily newspaper Dr. Patrick Stähler | 12
  • 13. A little quiz What is this? Dr. Patrick Stähler | 13
  • 14. 10.000 mio. USD classified market is evapurated by Craigslist with just sales of 100 Mio. 10.000 Mio. USD 100 Mio. USD decline in classifieds turnover Craigslist 2000-2008 Source: http://mediamemo.allthingsd.com/20090610/another-way-to-describe-the- Dr. Patrick Stähler | 14 newspaper-crisis-the-craigslist-boom/
  • 15. „ Tell me the difference.“ “ Dr. Patrick Stähler | 15
  • 16. „ The Online version is everything what the print is plus a lot more multimedia content plus interactivity plus blogs.“ “ Dr. Patrick Stähler | 16
  • 17. „ But did the revenue sources follow you online?“ “ Dr. Patrick Stähler | 17
  • 18. „ The subscribers turned their back on you. As did the classifieds :-(“ “ Dr. Patrick Stähler | 18
  • 19. „ Not really your day, dear media industry. Both of your business models are dated. Sorry!“ “ Dr. Patrick Stähler | 19
  • 20. thesis 2. There is no such thing as a media industry. Every industry is special and faces different challenges Dr. Patrick Stähler | 20
  • 21. *from a business point „ What is a newspaper?* “ Dr. Patrick Stähler | 21
  • 22. „ I buy a newspaper for news, comments and background stories!“ “ Dr. Patrick Stähler | 22
  • 23. „ With the WSJ I can reach 30% of the decision makers! “ Dr. Patrick Stähler | 23
  • 24. „ I buy the paper since I am looking for a job.“ “ Dr. Patrick Stähler | 24
  • 25. thesis 3. Traditional print is not one business model but three, kept together by paper Dr. Patrick Stähler | 25
  • 27. thesis 4. The 1-to-1 transfer of the print business model on the web does not work Dr. Patrick Stähler | 27
  • 28. „ How can I react to the changes? “ Dr. Patrick Stähler | 28
  • 29. „ Who says paper is dead? “ Dr. Patrick Stähler | 29
  • 30. „ Who says print is dead? “ Dr. Patrick Stähler | 30
  • 31. „ Print is not dead. Important is the right innovative business model like of The Economist!“ “ Dr. Patrick Stähler | 31
  • 32. „ Paper is in many aspects a much better carrier medium than online. Why don‘t we design business models that use these advantages!“ “ Quelle: flickr.com/photos/marcelgermain/2272162061 Dr. Patrick Stähler | 32
  • 33. thesis 5. The medium shapes the message. Understand the ideosyncracies of each media Dr. Patrick Stähler | 33
  • 34. „ We have all the figures about our readers!““ Dr. Patrick Stähler | 34
  • 35. thesis 6. Start with customer insights. Which job do you solve for your customer? Dr. Patrick Stähler | 35
  • 36. „ Greatest innovation in newspapers in the last 20 years: The „commuters“ free papers!““ Dr. Patrick Stähler | 36
  • 37. thesis 7. Every medium needs a business models that builds on the medium‘s strengths and that solves a job for the customer Dr. Patrick Stähler | 37
  • 38. thesis 8. Only business model innovation in print AND online will allow the publishers to survive. Tradition is NOT a business model! Dr. Patrick Stähler | 38
  • 39. „ Remember. Business model innovation needs courage!“
  • 40. Be BRAVE, really YES, you can! . Dr. Patrick Stähler | 40
  • 41. How shall I start? UNDERSTAND YOUR BUSINESS by using the BUSINESS MODEL CANVAS Dr. Patrick Stähler | 41
  • 42. What business are we in? Our business model Value architecture Value Proposition/ customer offer distribution architecture customers What is our offering? How do we reach our Who are our customers? customers? What job do we solve for our customers? value chain What are our value creating steps? value proposition customer activity 1 activity 2 activity 3 activity 4 What is our value activity What value do we chain? create for our customers? core capabilities partner What value do we What are the core Which partners do we create for our capabilities we need? need? partners? Revenue model cost structure sources of revenue Cost structure is defined by With what do we earn the value architecture money? culture/ values leadership style relationship style values What leadership style How do we interact What values do we do we have? with each other and the pursue? customer?
  • 43. More information at http://blog.business-model-innovation.com http://blog.business-model- Dr. oec. Patrick Stähler fluidminds GmbH Patrick.Staehler@fluidminds.ch www.fluidminds.ch