SINGLE COPY NEWSPAPERS. Tittel Undertittel. Monetization and innovation across distribution platforms TORRY PEDERSEN CEO VG
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1 SINGLE COPY NEWSPAPERS Tittel Undertittel Monetization and innovation across distribution platforms TORRY PEDERSEN CEO VG
2 Daily users 1,000 From analog to digital /2 03/2 04/2 05/2 06/2 07/2 08/2 09/2 10/2 Only print Only online Duplication reach Only mobile Source: TNS Gallup F&M 02/2-10/2
3 From desktop to mobile Unike brukere VG Nett, snitt pr uke Average weeklysommer UV VG Nett Unike bruker VG Mobil, snitt uke pr Average weekly UV VG Mobil sommer Mobil Nett Average Snitt Average Snitt 2010 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
4 From browser to app
5 Mobile prettier and less free
6 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
7 Read all about it!
8 More scoops than any other news organization
9 Which media house is most quoted? Chart shows which media house that was quoted the in other media in August 2010 regardless of publication platform.
10 Single copy papers with more overlapping attributes to digital media VG main paper VG Nett VG Mobile
11 Longest prime time in the history of media VG VG Mobil Mobile VG VG Nett Nett VG papiravisen VG main paper
12 Consumption throughout the day: PC, iphone and ipad VG Nett Monday - Thursday 12,0 % 10,0 % 8,0 % 6,0 % 4,0 % ipad Nett iphone 2,0 % 0,0 % Evening consumption is so far dominating the ipad usage
13 NOK million Profit and profit margin stable % % % % % H 09 1H 10 0 % EBITA EBITA margin
14 NOK million Print revenues stable H 09 1H 10
15 NOK per copy Price development Snittpris Average hverdag price VG Snittpris Average hverdag price Dagbladet DB
16 Prisindeks Marketshare vs Priceindex % 72 % 71 % 70 % 69 % 68 % 67 % 66 % 65 % 64 % 63 % Prisindeks Price index vs ift Dagbladet DB Markedsandel Market share
17 (Number of employees) From 2005 to 2009 the number of employees was reduced with 128 at VG Print. Including growth at VG Online the total reduction was 79 employees Print and Online 400 Print Online VG Print VG Online VG Print & Online
18 Succeeding in creating dual 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 dual revenue stream management key success factors Strong brand Segment leadership Broad reach Loyal traffic Cost control 20% of revenues from non-advertising
19 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! Yesterday; Few huge value buckets Print Subscriptions & single copy sales Print Advertising Online Advertising Tomorrow; Several smaller revenue streams User payment Online Advertising Mobile Advertising Web-TV advertising Print Subscriptions & single copy sales Print Advertising Related Services Etc
20 When unbundling, we should not fall into the same price-trap as the music industry In music, the unbundled album is worth almost exactly the album there is little incentive to buy albums In print media, the sum of the different sections should be significantly more than the total publication Limited value in buying the full album Good incentive to upgrade and buy the full publication Album Song 1 Song 2 Song 3 Song 4 Song 5 Song 1 Song 2 Song 3 Song 4 Song 5 Full publication Section 1 Section 2 Section 3 Section 4 Section 5 Section 1 Section 2 Section 3 Section 4 Section 5 There are several packaging options, but we should strive for pricing the sum of individual content more than the full publication. Source: Capgemini TME Consulting
21 Source: Betatales by John Einar Sandvand
22 VGID Single Signon on all our services Supports 3-party autentication (Facebook, Google, Twitter and Yahoo) VGID user not required to complete transaction Auto-collecting personal and network information from Facebook, Google and Twitter Easy recurring payment after first VISA transaction (itunes Style) Roll out starting late Q4 2010
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25 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
26 Applications combined with good situational user understanding and packaging gives greater opportunity for user payment Clear concept increases the willingness to pay Thousands of recipes in VG s food database
27 From browser to app For the ipad media apps are the most popular (September 3rd 2010, US app store)
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31 TV Guide for ipad launched in app store September 1st.
32 Shaping the media of tomorrow. Tittel Undertittel Today.
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