ISOJ
Austin; April 1st 2011
Paywalls:
Charging for news content.
Does it work?
Eivind Thomsen,
(Retired) Senior
Vice President, Schibsted ASA, Norway
4,9 million people
94% Internet penetration
Daily Newspaper Readership 1,3
111% mobile penetration
64% on Facebook
Schibsted 1839 – 1992
Schibsted Forlagene
Publishing house
1839
Aftenposten
Morning newspaper
1860
Verdens Gang
Evening newspaper
1966
From newspapers and books in Norway to an European media
group
“We shall become the leading media
company in Scandinavia”
2 100
# employees
3 bill
NOK
0.3 bill
NOK
revenues
result
1
# countries
*1994
Increasing reach of our strong
media houses
Daily readership (‘000)
Only paper version
Both
Daily readership (‘000)
Only paper version
Only online version
Both
Only online version
2,069
2,442
980
(47%)
1,250
(51%)
506
(24%)
299
(12%)
893
(37%)
Innovative approach to online news publishing
Source: TNS Gallup, Orvesto
¹ From 2007 from Internet survey
6
2009
2008¹
2007¹
2006
2005
2004
2003
2002
2001
2000
1999
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
583
(28%)
The most used online sites in Norway and
Sweden
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
3.7
19%
1.
1.
Unique weekly visitors (m) Change Y/Y
MSN network
9.4
32%
2.
MSN
2.9
26%
2.
4.9
20%
3.
Startsiden
2.2
16%
3.
3.3
14%
4.
Dagbladet.no
2.2
7%
4.
3.0
7%
5.
NRK
1.9
27%
5.
2.6
4%
6.
1.8
20%
9.
1.1
17.
0.6
Eniro.se
18.
E24.se
0.8
-
10%
19.
SvD.se
0.8
33%
20%
20.
0.7
17%
Prisjakt.nu
Schibsted’s superior online traffic positions enable rapid and efficient launch of new concepts (e.g. Nettby, E24)
Schibsted’s properties
Source: TNS Gallup, Kiaindex
Note: Week 50 of 2009
7
Unique position – strong
online footprint
today
in 2002
Online
30%
Online
3%
Offline
97%
Offline
70%
Schibsted’s online activities represents 30% of Group revenues and 53%¹ of Group EBITA
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
8
Revenue split
Total revenue Q3 2010 MNOK 3,288
Online
classifieds
23%
Media
Houses
online
6%
Media
Houses
offline
advertising
25%
Media
Houses
other
11%
Media
Houses
circulation
35%
9
Unique position
– strong online footprint
Digital/online share of revenues 2009
Schibsted
Axel Springer
Mecom
Europe
Trinity Mirror
Johnston Press
DMGT
INM
NY Times
Gannett
USA
E.W. Scripps
The Washington Post Co.
0%
5%
10 % 15 % 20 % 25 % 30 %
10
One of the global leaders
in Online classifieds
”Schibsted is now the
global No. 3 in online
classifieds, behind
eBay and Craigslist”
Bloomberg Business Week,
October 2010
11
From desktop to mobile
Unike brukere VG Nett, snitt pr uke
Average weeklysommer
UV VG Nett
+420 000
2,500,000
400,000
Unike bruker VG Mobil, snitt uke pr
Average weekly UV VG Mobil
sommer
+215 000
350,000
300,000
2,000,000
250,000
1,500,000
200,000
150,000
1,000,000
100,000
500,000
50,000
-
2,008
2,009
2008
2,010
2009
2010
+ 340 000
3,000,000
2,500,000
2,000,000
Mobil
1,500,000
Nett
1,000,000
500,000
-
Average 2009 Average 2010
Snitt 09
Snitt 10
Source: Uke 25 -31, TNS Gallup Metrix/Scores
We observe an altered traffic
pattern moving from net to
mobile – facilitated of iPhone
and other smartphones
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
Consumption throughout the day: PC, iPhone and
iPad
VG Nett Monday - Thursday
12.0 %
10.0 %
8.0 %
6.0 %
iPad
Nett
iPhone
4.0 %
2.0 %
0.0 %
Evening consumption is so far dominating the iPad usage
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
Strong brand
Segment leadership
Broad reach
Loyal traffic
Cost control
Combined, we are facing dramatic increase in
operations and revenue streams complexity
Music industry's learning
Online News industry’s lesson
Yesterday; Few
huge value buckets
Print Subscriptions &
single copy sales
• CD sales constitutes
20% of total revenues
• Push a hit in all
channels and formats
• As fast as possible!
User payment
Online Advertising
• 115 different products
• 19 million units
Tomorrow; Several
smaller revenue streams
Print Advertising
Mobile Advertising
Web-TV advertising
Online Advertising
Print Subscriptions &
single copy sales
Print Advertising
Related Services
Etc…
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
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.
TV Guide for iPad launched in app store September 1st.
ONLINE SUBSCRIPTION
– AFTONBLADET PLUS
BEST SELLERS:
•ARTICLE ABOUT HEALTH
AND WELL BEING
•TRAVEL GUIDES
•LISTINGS - TAXATION ETC.
•TESTS: EVERYTHING
FROM CARS .. TO SHAVERS ...
MICRO PAYMENT
PIECE BY PIECE
ANOTHER WAY OF
BUYING OUR
PREMIUM CONTENT
QuickTime och en
H.264-dekomprimerare
krävs för att kunna se bilden.
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.
(Pay) Clubs
WEIGHT CLUB
€ 30 –3 MONTHS
€ 40–6 MONTHS
€ 50–12 MONTHS
E-commerce
CUSTOMER FIGURES
PREMIUM CONTENT
PREMIUM
JOURNALISTIC 55%
20%
AFTONBLADETS
ONLINE REVENUES
ARE USER REVENUES
34%
CLUBS
11%
ECOMMERCE
PAYMENT MODELS
CLUBS
SEK XX
PREMIUM
PLUS
SEK XX
BASE PLUS
SEK XX
FREE
MATERIAL
Lifestyle
News
‘Survival of the fittest’
”It is not the strongest of the species that
survive, nor the most intelligent,
but the one most responsive to change.”
Charles Darwin
Thanks for your attention….