SINGLE COPY NEWSPAPERS Tittel Undertittel Monetization and innovation across distribution platforms TORRY PEDERSEN CEO VG
Daily users 1,000 From analog to digital 2500 2000 1844 1910 1984 8 2052 2079 2070 9 10 20 1571 1656 1692 378 446 473 505 506 450 1500 214 259 306 222 279 358 488 616 748 875 980 1098 1000 500 1135 1118 1028 978 848 755 663 583 502 0 02/2 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
From desktop to mobile 2 500 000 2 000 000 1 500 000 1 000 000 500 000 - Unike brukere VG Nett, snitt pr uke Average weeklysommer UV VG Nett +420 000 400000 350000 300000 250000 200000 150000 100000 50000 0 2 008 2 009 2 010 Unike bruker VG Mobil, snitt uke pr Average weekly UV VG Mobil sommer +215 000 2008 2009 2010 3 000 000 + 340 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 - Mobil Nett Average Snitt 092009 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
From browser to app
Mobile prettier and less free
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
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More scoops than any other news organization
Which media house is most quoted? 7000 6000 5000 4000 3000 6218 6074 2000 4600 1000 2646 2395 2063 1822 1668 1582 1098 0 Chart shows which media house that was quoted the in other media in August 2010 regardless of publication platform.
Single copy papers with more overlapping attributes to digital media VG main paper VG Nett VG Mobile
Longest prime time in the history of media 11 600000 500000 400000 300000 200000 VG VG Mobil Mobile VG VG Nett Nett VG papiravisen VG main paper 100000 0 010002000300040005000600070008000900100011001200130014001500160017001800190020002100220023002400
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
NOK million Profit and profit margin stable 2002-2010 400 25 % 350 300 20 % 250 15 % 200 150 10 % 100 5 % 50 0 2002 2003 2004 2005 2006 2007 2008 2009 1H 09 1H 10 0 % EBITA EBITA margin
NOK million Print revenues stable 2002-2010 1800 1600 1400 1200 1000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 1H 09 1H 10
NOK per copy Price development 2002-2010 16 14 12 10 8 6 Snittpris Average hverdag price VG Snittpris Average hverdag price Dagbladet DB 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010
Prisindeks Marketshare vs Priceindex 120 115 110 105 100 95 90 85 80 2002 2003 2004 2005 2006 2007 2008 2009 2010 73 % 72 % 71 % 70 % 69 % 68 % 67 % 66 % 65 % 64 % 63 % Prisindeks Price index vs ift Dagbladet DB Markedsandel Market share
(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 600 500 Print and Online 400 Print 300 200 Online 100 0 2005 2006 2007 2008 2009 VG Print 465 408 349 360 337 VG Online 51 65 82 97 100 VG Print & Online 516 473 431 457 437
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
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
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
Source: Betatales by John Einar Sandvand
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
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
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
From browser to app For the ipad media apps are the most popular (September 3rd 2010, US app store)
TV Guide for ipad launched in app store September 1st.
Shaping the media of tomorrow. Tittel Undertittel Today.