Mediapresentatie econopolis

The New ParadigmThreats & Opportunities for media & publishers

in the digital era

Geert Wellens / Econopolis NV

Kick-off event media innovatie centrum (mic)

Monday 19 March 12

MEDIA:SOME FACTS

Monday 19 March 12

NEWSPAPERS IN TROUBLE

Insane drop in incomeSome major newspapers are near bankrupt, and eager to find a new model for their income. In a cry for help,

the biggest concern is that the quality of the reporting will go down because of this. NYT reports it is cutting

Same story for magazinesA similar story is going on for the mayor magazines. Elle, Vogue, Wallpaper, they, all report the same storu

Mayor drops in advertising urges them to make smaller issues, and less in depth articles are features, due to a

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Advertising

Number of pages

Content pages

Photo pages

-48%

-25%

-24%

+23%

magazines: VOGUE FRANCE2009 vs 2011

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* PEW Research Center’s Project for Excellence in Journalism

For every $1 gained in digital

$7 are lost

in print

revenue

From print to digitalDigital gains can’t make up for print losses

$

$ $$

$$

$$

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PAID SUBSCRIPTIONSMagazine paid subscriptions drops

2008 2009 2010

1.0

0.5

0.0

-0.5

-1.0

-1.5

* 2011 State of the News Media, Audit Bureau of Circulations, FAS-FAX report for consumer magazines

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SINGLE COPIESSingle copy magazine sales keeps dropping

2008 2009 20100.0

-2.0

-4.0

-6.0

-8.0

-10.0

-12.0

* 2011 State of the News Media, Audit Bureau of Circulations, FAS-FAX report for consumer magazines

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16%

TIME SPENT on NEWS IN PRINTIn 2011 the time spent on print is 16%...

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84%

TIME SPENT on news ON LINE...while the time spent online is 84%!

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IPHONES

*Apple Reports

40 MILL.

Apple forecast to sell 143M iPhones, 68M iPads in 2013

72 MILL. 143 MILL.

2010 2011 2013

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Mobile MARKET

315 MILL.* Apple

The total amount of Apple iOs devices sold is 315 million

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300 MILL.

MOBILE MARKET

* Google

The total amount of Android devices sold is 300 million

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25 MRD.

MOBILE MARKET

Download of apps: 35 mill/day. Every day there are 1288 apps extra.

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172 mill.

SOCIAL MARKET

172 mill. visits/day on Facebook. 40 mill/day on Twitter, 20 mill/day on LinkedIn

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13MILL

APPS

* Accenture

In nov 2011 Instagram had reached 13mill. users in 13 months

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APPS

* Accenture

5 months later it reached 27million users

27MILL

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GAMing market

* Games Industry.com

67% of the Belgian population that plays games and plays an average of 5.4h/week

67%

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media consumptionMedia consumption of the Belgian population in hours/week

* Todays Gamers

Television

Internet

Radio

Games

Newspapers

Magazines

0 2,75 5,5 8,25 11

1,4

1,2

3,2

6,5

10,4

11,0

1,1

1,7

4,0

6,6

10,9

10,6

Male Female

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2012: “The pivotal moment”

(Thomas Baekdal)

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THE PIVOTAL MOMENT2012 everything will flip

2011

traditional / one way / print

social / connected / digital

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2012

traditional / one way / printsocial / connected / digital

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2015

traditional / one way / print

social / connected / digital

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THE INTERNET EVOLVED

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Media:weaknesses

&Threats

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we gave away our content1.$

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for free...1.free

And allowed others to take over our money makers (classifieds, ...)

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2.WE LOOKED AT THE FORM

INSTEAD OF CONTENT & usabilityMonday 19 March 12

3.the tv landscape is changing

OTT, VOD, Streaming, Apple TV, Netflix, ...

OD

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4.THE ADS are drying UP

we forgot to invent a new AD modelMonday 19 March 12

TIME SPENT VS AD SPENTShare of Average Time Spent per Day with Select Media

by US Adults vs. US Ad Spending Share, 2011

TV

* eMarketer, Dec 2011

42.5%

42.2%

Internet*25.9%

21.9%

Radio14.6%

10.9%

Mobile10.1%%

0.9%

Newspapers4.0%

15.0%

Magazines2.8%

9.7%

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5.we FORGOT TO focus

the young people? the babyboomers?

Gen’70/’80

GenY

GenZGen

Xbabyboomers

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6.we didn’t see the social coming

We underestimated the rise of social media

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7.new players came along

and we let them take our markets (News / content + classifieds)

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SO...

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THE traditional MEDIA ARE DOOMED?

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OR AREN’t They?

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The future of publishingby Dorling Kindersley Books

http://www.youtube.com/watch?v=Weq_sHxghcg

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Media:strenghts

& OPPORTUNITIES

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ON A GOOD NOTEThe Wall Street Journal started charging in online in 2003

0

0,5

1

1,5

2

1990 1995 2000 2005 2010

Wall Street JournalLA TimesNYT

Newspaper circulation in millions

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FINANCIAL TIMES

50%* Financial Times

50% of Financial Times’s revenue is coming from it’s content & The New York Times is growing strong in digital content sales

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FINANCIAL TIMES

260K* Financial Times

260.000 paying subscribers, from which 20% come through a mobile device, NYT 390.000 paying subscribers

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OPPORTUNITY 1:

digital quality CONTENT IS

key

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focus, create, enrich, don't aggregate

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When everyone is being irrelevant

YOU need to do the opposite

3%5%10%

82%

Entertaining Interesting Relevant Valuable

45%

26%

26%

3%

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invest in local content

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create a trusted brand

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Facebook

Google News

YouTube

LinkedIn

Twitter

iTunes

Flipboard

Tumblr

User Comments

Debates

Interaction

ConversationCloud

Oninvitation

IdeasArena

AudioContent

Ask us

Print Online

Readers

Connectivity-action of The Economist

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monetizeyour story

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*

ADJUST YOUR ADvertising modelembedded & connected

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*

ADJUST YOUR ADvertising modelrethink the role of the middle men!

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DON’T FORGET THEBABY BOOM GENERATION

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OPPORTUNITY 2:It's all about connectivity

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DON’t underestimate generations X, Y, M

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OPPORTUNITY 3:

embrace new players

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BBC / APPLE / CONNECTIVITY ROOM

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conclusions

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1. Quality digital content is king(Create, don’t aggregate, create a brand,

monetize your content, and create a new ad model)

2. It’s all about connectivity

3. Embrace the other players

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We need to cooperate, put a focus on innovation, and on local content

& niche activities (depth, opinion, education)

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Design

Kunsten

Mode

Hardware

Telco

Architectuur Digitale animatie

Beelden Film

TV

Electronische games

Geluid

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We need to play the cards

of convergence:

involve gaming,

animation & other creative activities

in media, enrich written content with audiovisual

content

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We need a coherent & supportive government policy to make our

creative content valuable export products

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leading role for media in flemish economy by 2020?

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ROLEMIC

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1. New & innovative advertising models

(research & dev, sec screen)

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2. Unique Paywall Model (shared)

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3. Database Management Ad Model (know your customer)

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4. Convergence projects(gaming, animation, tv, movies)

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5. Embrace new players & new technologies

(the Googles and Facebooks of tomorrow)

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6. Projects working with new TVmodels (like AppleTv)

Make them an ally, not an enemy

Monday 19 March 12

Geert [email protected]

www.econopolis.be@economedia

THANK YOU

Monday 19 March 12

http://www.emoy.be

http://www.emoy.be

http://www.newbraveworld.nu

http://www.newbraveworld.nu

Photo & video credits:video, slide 38

The future of publishing,Dorling Kindersley Books


slide 52mamika.fr

slides 43, 53, 55, 57, 63, 64maximidia

slide 54istockphoto

Presentationmatuvu.nu

Monday 19 March 12

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