Eivind Thomsen presented on paywalls and charging for news content. Some key points: 1) Schibsted has transitioned from newspapers and books in Norway to a leading European media group with strong online traffic and revenues. It has pioneered approaches to online publishing. 2) Schibsted's online activities now represent 30% of revenues and 53% of EBITA, with classifieds being a major revenue driver. It has a unique position with strong online traffic. 3) Successful online news businesses need multiple revenue streams to sustain high-quality journalism, including various forms of payments, subscriptions, advertising and services. Packaging content for mobile is important to drive willingness to pay.

1. Eivind Thomsen, (Retired) Senior Vice President, Schibsted ASA, Norway
ISOJ
Austin; April 1st 2011
Paywalls:
Charging for news content.
Does it work?

2. 4,9 million people
94% Internet penetration
Daily Newspaper Readership 1,3
111% mobile penetration
64% on Facebook

3. Schibsted 1839 – 1992
Schibsted Forlagene
Publishing house
Aftenposten
Morning newspaper
Verdens Gang
Evening newspaper
1839
1860
1966

4. From newspapers and books in Norway to an European media
group
“We shall become the leading media
company in Scandinavia”
*1994
# employees # countries revenues result
2 100
1
3 bill
NOK
0.3 bill
NOK

6. 6
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Only paper version Both Only online version
2,069
Daily readership (‘000) Daily readership (‘000)
980
(47%)
506
(24%)
583
(28%)
Source: TNS Gallup, Orvesto
¹ From 2007 from Internet survey
Innovative approach to online news publishing
Increasing reach of our strong
media houses
1999
2000
2001
2002
2003
2004
2005
2006
2007¹
2008¹
2009
Only paper version Both Only online version
2,442
1,250
(51%)
299
(12%)
893
(37%)

7. 7
Schibsted sites generate close to 28% of
top 20 traffic in Norway
Schibsted sites generate close to 25% of
top 20 traffic in Sweden
Unique weekly visitors (m) Change Y/Y
1. 3.7 19%
2. MSN 2.9 26%
3. Startsiden 2.2 16%
4. Dagbladet.no 2.2 7%
5. NRK 1.9 27%
6. 1.8 20%
9. 1.1 10%
17. 0.6 20%
Unique weekly visitors (m) Change Y/Y
1. MSN network 9.4 32%
2. 4.9 20%
3. 3.3 14%
4. Eniro.se 3.0 7%
5. 2.6 4%
18. E24.se 0.8 -
19. SvD.se 0.8 33%
20. Prisjakt.nu 0.7 17%
Source: TNS Gallup, Kiaindex
Note: Week 50 of 2009
Schibsted’s superior online traffic positions enable rapid and efficient launch of new concepts (e.g. Nettby, E24)
Schibsted’s properties
The most used online sites in Norway and
Sweden

8. Note: percentages based on online and offline businesses’ contribution to revenues in FY2002 and last twelve months as of Q3 2010; online revenues in FY2002 include online
newspapers and FINN ¹ Excluding corporate costs and eliminations
Schibsted’s online activities represents 30% of Group revenues and 53%¹ of Group EBITA
today
Online
30%
Offline
70%
in 2002
Online
3%
Offline
97%
Unique position – strong
online footprint
8

9. 9
Revenue split
Media
Houses
online
6%
Media
Houses
offline
advertising
25%
Media
Houses
circulation
35%
Media
Houses
other
11%
Online
classifieds
23%
Total revenue Q3 2010 MNOK 3,288

10. Unique position
– strong online footprint
0 % 5 % 10 % 15 % 20 % 25 % 30 %
The Washington Post Co.
E.W. Scripps
Gannett
NY Times
INM
DMGT
Johnston Press
Trinity Mirror
Mecom
Axel Springer
Schibsted
Europe
USA
Digital/online share of revenues 2009
10

11. 11
”Schibsted is now the
global No. 3 in online
classifieds, behind
eBay and Craigslist”
Bloomberg Business Week,
October 2010
One of the global leaders
in Online classifieds

12. -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2,008 2,009 2,010
Unike brukere VG Nett, snitt pr uke
sommer
+420 000
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2008 2009 2010
Unike bruker VG Mobil, snitt uke pr
sommer
+215 000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Snitt 09 Snitt 10
Mobil
Nett
+ 340 000
We observe an altered traffic
pattern moving from net to
mobile – facilitated of iPhone
and other smartphones
Source: Uke 25 -31, TNS Gallup Metrix/Scores
From desktop to mobile
Average weekly UV VG Nett Average weekly UV VG Mobil
Average 2009 Average 2010

13. What consumers will expect
Always-On Access with Super-Fast ‘Boot Time’
Near Zero Latency Access to Nearly All
Information
Day-Long-Plus Battery Life in Elegant Portable
Devices
Source: Morgan Stanley Internet Trends Report

14. Consumption throughout the day: PC, iPhone and
iPad
VG Nett Monday - Thursday
Evening consumption is so far dominating the iPad usage
0.0 %
2.0 %
4.0 %
6.0 %
8.0 %
10.0 %
12.0 %
iPad
Nett
iPhone

15. Succeeding in creating multiple revenue streams is key
for the future of our journalistic ambition
Online News product needs
increased journalistic resources
to sustain brand equity
The Online Advertising Boom
scenario might not be enough to
create profit with increased cost
New revenue streams needed to:
- Close the gap and create profitability
- Hedge the volatile advertising market
VG.no and Aftonbladet.se’s multiple revenue
streams management key success factors
Segment leadership
Broad reachStrong brand
Cost control
Loyal traffic

16. Combined, we are facing dramatic increase in
operations and revenue streams complexity
Music industry's learning Online News industry’s lesson
• 115 different products
• 19 million units
• CD sales constitutes
20% of total revenues
• Push a hit in all
channels and formats
• As fast as possible!
Tomorrow; Several
smaller revenue streams
User payment
Online Advertising
Mobile Advertising
Web-TV advertising
Print Subscriptions &
single copy sales
Print Advertising
Related Services
Etc…
Yesterday; Few
huge value buckets
Print Subscriptions &
single copy sales
Print Advertising
Online Advertising

17. Parts of the user payment adoption probably lies
in the packaging of content on mobile devices
Full accessibility, strong brand and offering premium
experiences are all important areas driving willingness to pay

18. Hamburger Abendblatt
• www.Abendblatt.de
- iPad 8x3
Access to National and
International news is
free, access to
unique regional and
local content is
behind paywall.

19. TV Guide for iPad launched in app store September 1st.

21. ONLINE SUBSCRIPTION
– AFTONBLADET PLUS
BEST SELLERS:
•ARTICLE ABOUT HEALTH
AND WELL BEING
•TRAVEL GUIDES
•LISTINGS - TAXATION ETC.
•TESTS: EVERYTHING
FROM CARS .. TO SHAVERS ...

22. MICRO PAYMENT
PIECE BY PIECE
ANOTHER WAY OF
BUYING OUR
PREMIUM CONTENT
QuickTime och en
H.264-dekomprimerare
krävs för att kunna se bilden.

23. PAY PER VIEW
We also sell TV
programs and
documentaries
Example: Selling
National Geographics and Factual
TV documentaries. Aftonbladet
gets 50% provision.
QuickTime och en
H.264-dekomprimerare
krävs för att kunna se bilden.

24. (Pay) Clubs
WEIGHT CLUB
€ 30 –3 MONTHS
€ 40–6 MONTHS
€ 50–12 MONTHS

25. E-commerce

26. CUSTOMER FIGURES
PREMIUM CONTENT
PREMIUM
JOURNALISTIC 55%
11%
E-
COMMERCE
34%
CLUBS
20%
AFTONBLADETS
ONLINE REVENUES
ARE USER REVENUES

27. PAYMENT MODELS
CLUBS
SEK XX
BASE PLUS
SEK XX
FREE
MATERIAL
PREMIUM
PLUS
SEK XX
NewsLifestyle

29. Charles Darwin
”It is not the strongest of the species that
survive, nor the most intelligent,
but the one most responsive to change.”
‘Survival of the fittest’

30. Thanks for your attention….