The mobile digital newspaper: Lessons learned from the epaper project Periódicos electrónicos en pruebas Bram Lievens Prof. Dr. Caroline Pauwels Prof. Dr. Leo Van Audenhove Studies in Media, Information & Telecommunication (SMIT) Institute for Broadband Technology (IBBT) presentation @ AEDE Conference - November 16, 2006 CONTENT The mobile digital newspaper 1. 2. 3. 4. 5. 6. General context E-paper project User experience Business models Conclusions Lessons learned for the newspaper industry 2 Preliminary - SMIT The mobile digital newspaper user analysis business modelling policy analysis & foresight 3 Preliminary - SMIT The mobile digital newspaper Other e-publishing projects A4MC3: Architectures for Mobile Community Content Creation mobile communities and community journalism http://a4mc3.ibbt.be Fleet: Flemish e-publishing Trends Interdisciplinary fundamental research Journalist, Editor & User http://www.fleetproject.be 4 1 - CONTEXT The mobile digital newspaper Bit & byte - Hip & Hype of today Journalist Role challenged by community and user contributions Evolving from ‘lecture’ mode to conversation mode New media ecology: no one has control Journalist as authenticator Editor Rise of Web 2.0 Information worthless because of abundance Attention becomes a scarce commodity Value shift: Media 2.0 dominant strategies are based on economies of scale and scope in production, distribution and search User From consumer to prosumer Rising consumption of micro-chunks of information In the new media world, the love triangle between editor, journalist and reader is set to change based on equal power and mutual and complementary needs 5 1 - CONTEXT The mobile digital newspaper Project Where, when? Who? Results? Les Echos France, Started recently Newspaper Les Echos Consulting company Tebaldo After presenting the prototype, Le Monde, La Parisienne & l’Equipe expressed their interest in trials too en got involved in the research aspects of the project The New York Times USA, To start in a couple of months NYT & Microsoft Not yet Internati onal Herald Tribune Internatio nal, 2006 IHT (NYT Co) Not yet eNews Internatio nal, 06-08 Ifra, 20 major publishing houses, 4 technology developers Not yet Asahi Shimbun Japan, Since 2000 Newspaper Asahi Shimbun, Sportcontent provider Nikkan, 4 telecom operators 1 million users 20.000 subscriptions for print via mobile new competitors have arisen MINDS platform Germany Since 2005 Partnership between 40 German newspapers and dpa (German press agency) Introduction cost are low -> easier for papers to start offering online services From 300 to 10.000 users per activity -> little but direct revenues -> mobile brand awareness 6 2 - E-paper project The mobile digital newspaper IBBT research project Interdisciplinary institute on Broadband Technology Technological, user oriented, social & legal research Demand driven Public private partnership 7 2 - E-paper project The mobile digital newspaper CONTENT ADVERTISEMENT RESEARCH TECHNOLOGY device network 8 2 - E-paper project The mobile digital newspaper Project goals Generate generic knowledge about the potentials of news content on a dedicated electronic reading device (Iliad eReader) Test some common hypotheses concerning success factors in practice 9 3 - User experience The mobile digital newspaper Living lab setting Dedicated testpanel 200 test users, within subscribers “Tijd Purposeful sampling Maximum variation Sex, age, social class, comparable professions Phenomenal variation Off- and online use of newspapers Mobility Use of interactive services (vb: download ‘de Tijd’) Ownership of devices (PDA, laptop, smartphone,...) Specific reading behaviour Functional, mostly more then 1, once in a day 10 Video demo The mobile digital newspaper 11 3 - User experience The mobile digital newspaper Prototype - bias Device Screen quality biggest asset Size, weight & battery Operational Not intuitive enough Feedback of the device Slowness Different logics: ICT vs book Content Link with printed newspaper Navigation and structure needs improvement 12 3 - User experience The mobile digital newspaper Issues for improvement Connectivity Speed Usability of buttons Lay-out & navigation structure Zoom function needed Other uses Specific context Mobility More content Old habits die hard 13 4 - Business models e-paper The mobile digital newspaper Research Question What are possible business models for ePaper devices in the newspaper industry? BUT technology broadens scope Publishing industry - Print Media Information industry 4 main levels of analysis Functional level: Dealing with the architecture of a product or service Strategic/organisational level: Dealing with the roles and relations between actors Financial level: Dealing with sources of revenue and financial flows Value proposition: The way value is created in the market 14 4-1 - Scenario development The mobile digital newspaper 15 4-2 - Kiosk-Model: Value Network The mobile digital newspaper Intermediary plays important role Integrates two markets 1) readers; 2) information providers Causes network externalities, especially online Advertising possible at two levels Can cause friction 16 4-2 - Kiosk-Model: SWOT The mobile digital newspaper Strengths Larger selection of content One platform for all content Newspaper retain editorial function Weaknesses New initiative so: Higher start-up costs Need for individual marketing and branding Newspaper looses customer relation Opportunities New platform for digital news One open standard Threats Conflict over revenue sharing Conflict over advertising Intermediary risks to become dominant Intermediary shifts towards role of content provision 17 4-3 - iTunes-Model: Value Network The mobile digital newspaper Intermediary plays central role Integrates two markets 1) readers, 2) content providers BUT ALSO device suppliance and service provision Content on single platform and on only one type of device Disaggregation of content 18 The mobile digital newspaper 19 4-3 - iTunes-Model: SWOT The mobile digital newspaper Strengths Higher selection of content Single platform for all content Strong personalisation possible Strong compatibility between service and device possible Might be in line with changing user experience Opportunities New platform for digital news Possible high market penetration of single device Weaknesses New initiative, so: Higher start-up costs Need for individual marketing and branding Newspaper looses customer relation Newspaper looses part editorial function Threats Conflict over standards possible Conflict over revenue sharing possible Conflict over advertising Intermediary might become dominant Intermediary might shift towards content provisioning 20 4-4 - Business models The mobile digital newspaper Newspapers Remain in a rather unique position as mass medium, brand and trustworthy Have strong customer relations Have shrinking market but willingness to pay ePaper allows for more constant monitoring of newsreaders (follow the reader technology) Believe in value of editorial function Path dependency of the eReader might be possible pitfall in the future Scenarios might co-exist Kiosk model more for newspaper publishers iTunes model might seem possible scenario for print in general & ebooks in particular BUT most online examples rely on long tail Newspapers have short tails 21 5 - Lessons learned The mobile digital newspaper 1. 2. 3. High potential of the device vs. Importance of look ‘n feel Positive on screen quality and size But look ‘ feel of newspaper 48,9% of test panel would consider buying an eReader (if fully operational Reading device (vs. AIO) Old habits die hard No change in reading pattern Strong link with printed newspaper Navigation Content (trust, aggregator,...) Representation Substitution or complementarity? In this stage, the device is not ready but it provides users with some additional options (time, place) 22 Strong competitor for printed paper in the long term 6 - Lessons learned The mobile digital newspaper 4. Control of the user: choice/complementary: AND & AND story Personalised & full News of today (breaking news) &. News of yesterday Payments: fee & free 5. Newspapers as aggregators Brand as trustmodel Offer Certified, trusted & authentication 6. Business model • Kiosk model (in co-existence) is surely looks interesting for the newspaper industry in the future. Yantai Daily Media Group (China) offers since Oct 2006 all its newspaper titles on the Iliad eReader 7. Interesting issues identified, but further research needed 23 The mobile digital newspaper Thank you for your attention Q&A Further information Bram Lievens - bram.lievens@vub.ac.be prof. Dr. Caroline Pauwels - caroline.pauwels@vub.ac.be http://smit.vub.ac.be https://epaper.ibbt.be 24