This document discusses how media consumption and advertising spending have changed, potentially threatening the financial viability of journalism. It notes that historically, advertising and customers supported media through "service bundles" that included entertainment and services in addition to news. As these have separated online, a new funding model is needed. The document proposes "media commerce", which couples media and ecommerce companies to extract multiple revenue streams from audiences, advertising, and transactions, as a potential new "service bundle" model to support quality journalism into the future.

1. DO WE PAY THE BILL
TO JOURNALISM?
(What’s happening between Will McAvoy and my family)

2. MY FAMILY
FILIPPO
GIORGIA
GIULIA
PAOLO
GINEVRA
ALICE
LORENZO
M - 8 Y.o.
F - 12 Y.o.
F - 21 Y.o.
M - 51 Y.o.
My Wife
F - 11 Y.o.
M - 6 Y.o.

3. IS MY FAMILY PAYING THE BILL
FOR WILL?

4. OUR YEARLY MEDIA SPEND
€ 2.500
5 Years Ago
€ 1.875
2100
2000
€ 1.250
€ 625
Today
1260
770
720
525
588
500
0
240
€0
NEWSPAPER
MAGAZINES
SATELLITE Tv
DIGITAL SUBS
ITUNES
& APPSTORE
from 5.000€ to 3.600€ in total
from 4.000€ to 1.300€ in print

5. 26 CONNECTED DEVICES
5
4
7
3
4
SMART
PHONE
PC
IPADS
KINDLE
SKY
DECODER
3
APPLE TV

6. 3 DISCONNECTED DEVICES
7
day
3
week
2
month
NEWSPAPERS
MAGAZINES
COMICS

7. MY FAMILY MEDIA DIET IN A WEEK
1,6
10 hours and 30 minutes
spent on Connected Media
1,3
5,0
8 hours spent
on Disconnected media
5,3
3,3
2,3
TV
Smarthphone
NewsPapers
Tablet
Magazines
PC

8. ADV MONEY IN ITALY
1,6
1,4
1,5B€
5,0
5,3
4,5B€
3,5
2,3
TV
Smarthphone
NewsPapers
Tablet
Magazines
PC

9. THE PICTURE

10. OLD MEDIA ARE LOSING
ADVERTISING MONEY
AND CUSTOMERS MONEY

11. HOW CAN WE PAY FOR THE
LOFTY MEAL OF WILL AND
HIS 40 PEOPLE NEWSROOM?

12. WHAT HAPPENS TO
INFORMATION, A
CRITICAL AND ESSENTIAL
COMPONENT OF OUR
DEMOCRATIC SYSTEM

13. THE REALITY

14. Neither ADVERTISING nor CUSTOMERS have ever paid
for journalism in itself.
They paid for a “SERVICE BUNDLE” made by services,
entertainment, and – of course – journalism.
Now that those services have become separated we should
rethink a NEW “SERVICE BUNDLE” where journalism could
live into.

15. “SERVICE BUNDLE”
EXAMPLE

16. HOW IT WAS
TO CUSTOMERS
ADVERTISING
TO SELL THEM GOODS
THROUGH DISTRIBUTION
COMPANIES
THE GLOBAL
PICTURE
TO SELL THEM
DIRECTLY AND
THROUGH
DISTRIBUTION
COMPANIES
WITH CUSTOMERS
HAVING RELATIONS THROUGH
OWNED AND PAYED MEDIA
HOW IT IS

17. HOW IT COULD BE
BRANDS,
having relation with
MEDIA-COMMERCE ENTITIES
who engage audiences, know them and sell them

18. MEDIA COMMERCE
The “coupling”
of media and
ecommerce allows for
multiple value
extraction that
re-introduces the
multiple revenue
stream model that has
always been paying
the bill for news.
MEDIA AUDIENCE
VALUE FROM
ADVERTISING
ECOMMERCE
AUDIENCE
VALUE FROM
INFOCOMMERCE
BUYERS
VALUE FROM
TRANSACTIONS

19. MEDIA COMMERCE
MEDIA AUDIENCE
Audience
Revenue
Margin (10%)
10 Millions
16,0 M€
1,6M€
INFOCOMMERCE
AUDIENCE
Audience
Revenue
Margin (60%)
1 Million
3,0 M€
1,8 M€
% Buyers
Revenue
Margin (7,5%)
0,5%
26,0 M€
2,0 M€
Total Revenues
Margin (12%)
45,0 M€
5,5 M€
BUYERS

20. THANK YOU