Bart Lombaerts THE MEDIAPARTNERS

Transcription

1 Bart Lombaerts THE MEDIAPARTNERS

2 2 The mediapartners... in brands

3 3 The mediapartners... in brands De Persgroep:

4 4 The mediapartners... in brands Corelio:

5 5 The mediapartners... in brands Concentra Media Group: 12 mei 2010 Bart Lombaerts

6 6 The mediapartners... in brands Rossel:

7 7 The mediapartners... in brands IPM:

8 8 The mediapartners... in brands VRT: 12 mei 2010 Bart Lombaerts

9 9 The mediapartners... in brands RTBF:

10 10 The mediapartners... in brands RTL:

11 11 The mediapartners... in brands Roularta Media Group:

12 12 The mediapartners... in brands Sanoma Magazines Belgium:

13 13 Reach

14 14 Reach newspapers North source: CIM 09/10

15 15 Reach newspapers South source: CIM 09/10

16 16 Reach (weekly) magazines North source: CIM 09/10

17 17 Reach (weekly) magazines South source: CIM 09/10

18 18 Reach (monthly) magazines North source: CIM 09/10

19 19 Reach (monthly) magazines South source: CIM 09/10

20 20 Share tv channels North source: CIM audimetrie 2009

21 21 Share tv channels South source: CIM audimetrie 2010

22 22 Share radio channels North source: CIM wave 21

23 23 Share radio channels South source: CIM wave 21

24 24 Media companies are in a dual product market

25 25 Media companies are in a dual product market Business to Consumer revenues from Sold copies Pay TV Line extensions, extended products Business to Business revenues from Advertiser sales Rights on sold formats Printing from third parties Media companies are in the business of selling content to consumers* and selling consumers to advertisers * Consumers paying with attention and (frequently but not always) money Source: The Economist; Media in beweging

26 26 The traditional business model is under pressure Costs of media companies largely fixed Broadening (media) opportunities leads to fragmentation audiences Traditional business model under pressure Advertisers look for alternatives (internet,direct, ) Model of paying for content is questioned by internet and free newspapers Source: Media in beweging

27 27 The broadening of media opportunities leads to fragmentation Developments in last twenty years Introduction and proliferation commercial tv Dvd Introduction pay tv Personal video recorder Rapid penetration digital tv Internet New devices (smartphone, i-pod, e-readers eg Kindle, ipad, ) New platforms (Facebook, Twitter, ) l Choices continue to expand but available time remains limited l Important impact for advertisers: in 1988 P&G reckoned it could reach 90% of consumers in the UK with just 3 television advertisements. Today, it would take more than 1000 to have the same impact Source: Financial Times; Jim Stengel; Media in beweging

28 28 Paying for content is being questioned The evolution of newspapers sold in Europe, EXAMPLE Percent UK -3,4 Denmark -3,1 Greece -2,7 Germany -2,5 The Netherlands -2,4 France -2,0 Italy -1,8 Norway -1,6 Belgium Sweden Spain Austria -1,0-0,3-0,2 1,8 Weighted average -2.1 Source: Zenithoptimedia; Navius

29 Advertisers look for alternatives Evolution recruitment ads in US newspapers, EXAMPLE USD Billions Volume decrease* 1.8 Price increase 0.4 Revenues internet only companies Revenue 0.3 decrease due to lower 4.5 online tariffs 1.9 billion USD revenue decrease newspaper Online Print Revenues HR ads 1996 Normal HR ads revenues in 2005 if no internet Real HR ad revenues for newspapers in 2005 * Due to less favorable economic situation in 2005 compared to 1996 Source: McKinsey; Navius

30 Costs of Media companies are largely fixed Repartition costs newspaper company, EXAMPLE Variable as function of # copies Partially variable as function of # copies Fixed Percent More than 80% of the costs of a newspaper company are fixed Source: Navius

31 The Traditional Business Model of Media companies is under pressure 31 Consumer revenues Number of copies/viewers Price per copy Comments Under pressure due to expansion choices l Pressure of free content Revenue Gross margin Advertising revenues Number of ads Price per advertisement l Under pressure due to fragmentation / internet EBITDA* Direct costs Number of copies Reproduction cost per copy l Decrease due to technological evolution Operational costs HR External services Other l Largely fixed and increases due to inflation * Earnings before interest, taxes, depreciation and amortization Source: Navius; Media in beweging

32 32 Potential strategic actions to strengthen business model

33 33 Potential strategic actions to strengthen business model Potential action Increase scale Enhance value proposition towards consumer Create new revenue streams Enhance value proposition towards advertisers Use potential of convergence Cut costs Source: Media in beweging

34 34 Increase scale Potential action Increase scale Source: Media in beweging Rationale l Spread fixed costs over large volume l Create complementary revenues Examples l Geographic expansion de Persgroep: acquisition PCM (and sells NRC and book division) l Geographic expansion Studio 100: acquisition EM Entertainment (database Maya De Bij, Vicky De Viking, Pipi Langkous, ), exploitation of Pipo de Clown, theme parks abroad l In depth expansion home market: 1st digital channel Studio 100 tv (reclycling content), now 2nd channel NJAM! l ProSiebenSat.1 acquires SBS Broadcasting l Back to back production ProSiebenSat.1 l Roularta Media Group acquires Groupe Express-Expansion l VMMA acquires Joe fm l VMMA acquires Vitaya l Woestijnvis participates in De Mensen and in VT4 and Vijftv

35 35 Enhance value proposition towards consumers Potential action Enhance value proposition towards consumers Rationale l Defend market share l Stop/reduce decrease audience Examples l Launch of digital channel Acht by Concentra l Studio 100 s database of programs broadens a lot by purchase of EM Entertainment l Launch of 18 special editions of Knack on cultural and historical topics l Launch of Dutch edition of Côté Sud International by Roularta l Contact enlarges brand with digital television channel Radio Contact Vision l Pink sheet De Tijd to reinforce business newspaper proposition l Introduction tv-studios at De Standaard Source: Media in beweging

36 36 Create new revenue streams Potential action Rationale Examples Create new revenue streams l Enlarge revenues l Pay per view: Net Gemist, Ooit gemist, i-watch l New digital strategies newspapersites (eg Boutique du Soir, De Tijd launches payment for website) l ipad apps to be payed De Standaard, De Morgen, l Strategy of extended products, such as product development (Libelle fashion with E5-Mode, Nina-dress with Veritas), licensing (eg Lotus & Studio 100), events (eg Flair Shopping Day), workshops (eg Weekend Knack Cooking Club) l e-commerce, eg Libelle-shop: BeCommerce Award 2010 Source: Media in beweging

37 37 Enhance value proposition towards advertisers Potential action Enhance value proposition towards advertisers Rationale l Increase revenues Examples l Goedele release special edition Tom (january 2011) l VMMa launches analog channel vtmkzoom, launch Disney Channel Vlaanderen l TMF and MTV Loaded, mobile marketing platforms l Several attempts, product placement, inscript sponsoring, program participation, embedded content, l Difficult Source: Media in beweging, Media Marketing

38 38 Use potential of convergence Potential action Use potential of convergence Rationale l Strenghten loyalty and income l Reduce costs Examples l app De Standaard on ipad l Humo joint venture Sanoma & Woestijnvis l SBS l Flair Mobile l VRT 360 Newsroom l 4040 VTM Source: Media in beweging

39 39 Cut costs Potential action Cut costs Rationale l Adapt cost to reduced income Examples l Reduce number of pages (several media) l Exit Het Volk l Lay-offs at de Persgroep & Corelio and almost everywhere in the international media l Broadcasters and production houses l Reduce size (paper costs): Knack, as previously almost all newspapers l Kanaal Z uses facilities VMMA l Videojournalists at regional tv Concentra Source: Media in beweging

40 40 Potential strategic actions to strengthen business model Potential action Increase scale Enhance value proposition towards consumer Rationale l Spread fixed costs over large volume l Create complementary revenues l Defend market share l Stop / reduce decrease audience Examples l De Persgroep acquires PCM and sells NRC and book division l Pink sheet De Tijd to reinforce business newspaper proposition Create new revenue streams Enhance value proposition towards advertisers l Enlarge revenues l Increase revenues l Libelle fashion with E5-Mode, Flair Shopping Day, Weekend Knack Cooking Club l TMF and MTV Loaded, mobile marketing platforms Use potential of convergence l Strengthen loyalty and income l E-paper De Standaard on e-reader Cut costs l Adapt cost to reduced income l Kanaal Z uses facilities VMMa Source: Media in beweging

41 41 Further reading? 12 mei 2010 Bart Lombaerts