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Eivind Thomsen, ( Retired ) Senior Vice President, Schibsted ASA, Norway

ISOJ Austin; April 1 st 2011. Paywalls : Charging for news content. Does it work? . Eivind Thomsen, ( Retired ) Senior Vice President, Schibsted ASA, Norway. 4,9 million people. 94% Internet penetration. Daily Newspaper Readership 1,3. 111% mobile penetration.

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Eivind Thomsen, ( Retired ) Senior Vice President, Schibsted ASA, Norway

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  1. ISOJ Austin; April 1st 2011 Paywalls: Charging for news content. Does it work? Eivind Thomsen, (Retired) Senior Vice President, Schibsted ASA, Norway
  2. 4,9 million people 94% Internet penetration DailyNewspaperReadership 1,3 111% mobile penetration 64% on Facebook
  3. Schibsted 1839 – 1992 Schibsted ForlagenePublishing house 1839 AftenpostenMorning newspaper 1860 Verdens GangEvening newspaper 1966
  4. *1994 From newspapers and books in Norway to an European media group“We shall become the leading media company in Scandinavia” 3 bill NOK 0.3 bill NOK 2 100 1 # employees # countries revenues result
  5. 111 newspapers 1983 – 2017 111 newspapers 1983 – 2009
  6. Increasing reach of our strong media houses Daily readership (‘000) Daily readership (‘000) 2,069 2,442 980 (47%) 1,250 (51%) 506 (24%) 299 (12%) 893(37%) 583(28%) Innovative approach to online news publishing Source: TNS Gallup, Orvesto ¹ From 2007 from Internet survey
  7. Schibsted’s properties The most used online sites in Norway and Sweden Schibsted sites generate close to 28% of top 20 traffic in Norway Schibsted sites generate close to 25% of top 20 traffic in Sweden Schibsted’s superior online traffic positions enable rapid and efficient launch of new concepts (e.g. Nettby, E24) Source: TNS Gallup, Kiaindex Note: Week 50 of 2009
  8. Unique position – strong online footprint today in 2002 Online 30% Online 3% Offline 97% Offline 70% Schibsted’s online activities represents 30% of Group revenues and 53%¹ of Group EBITA Note: percentages based on online and offline businesses’ contribution to revenues in FY2002 and last twelve months as of Q3 2010; online revenues in FY2002 include online newspapers and FINN ¹ Excluding corporate costs and eliminations
  9. Revenuesplit Total revenue Q3 2010 MNOK 3,288
  10. Unique position – strong online footprint Digital/online shareofrevenues 2009 Europe USA
  11. One ofthe global leadersin Online classifieds ”Schibsted is now the global No. 3 in online classifieds, behind eBay and Craigslist” Bloomberg Business Week, October 2010
  12. From desktop to mobile Averageweekly UV VG Nett Averageweekly UV VG Mobil +120 000 +215 000 +420 000 + 340 000 We observe an altered traffic pattern moving from net to mobile – facilitated of iPhone and other smartphones Average 2009 Average 2010 Source: Uke 25 -31, TNS Gallup Metrix/Scores
  13. Whatconsumerswillexpect Source: Morgan Stanley Internet Trends Report
  14. Consumption throughout the day: PC, iPhone and iPadVG Nett Monday - Thursday Evening consumption is so far dominating the iPad usage
  15. Succeeding in creating multiple 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’smultiple revenue streams management key success factors Broad reach Loyal traffic Strong brand Segment leadership Cost control
  16. Combined, we are facing dramatic increase in operations and revenue streams complexity Music industry's learning Online News industry’s lesson Yesterday; Few huge value buckets Tomorrow; Several smaller revenue streams Print Subscriptions & single copy sales User payment Online Advertising 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! Print Advertising Mobile Advertising Web-TV advertising Online Advertising Print Subscriptions & single copy sales Print Advertising Related Services Etc…
  17. 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
  18. Hamburger Abendblatt www.Abendblatt.de iPad 8x3 Access to National and International news is free, access to unique regional and localcontent is behindpaywall.

  19. TV Guide for iPad launched in app store September 1st.

  20. 115,000SUBSCRIBERS5$/MONTH ONLINE SUBSCRIPTION – AFTONBLADET PLUS BEST SELLERS: ARTICLE ABOUT HEALTH AND WELL BEING TRAVEL GUIDES LISTINGS - TAXATION ETC. TESTS: EVERYTHING FROM CARS .. TO SHAVERS ...
  21. MICRO PAYMENTPIECE BY PIECE ANOTHER WAY OF BUYING OUR PREMIUM CONTENT
  22. PAY PER VIEW We also sell TV programs and documentaries Example:Selling National Geographics and Factual TV documentaries. Aftonbladet gets 50% provision.
  23. 380,000 SUBSCRIBERS SINCE 2003 (Pay) Clubs WEIGHT CLUB € 30 –3 MONTHS € 40–6 MONTHS € 50–12 MONTHS
  24. E-commerce
  25. PREMIUM JOURNALISTIC 55% 34% CLUBS 11% E-COMMERCE 20%AFTONBLADETS ONLINE REVENUES ARE USER REVENUES CUSTOMER FIGURES PREMIUM CONTENT
  26. FREE MATERIAL Lifestyle CLUBS SEK XX BASE PLUS SEK XX PREMIUMPLUS SEK XX News PAYMENT MODELS
  27. ”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Charles Darwin ‘Survival of the fittest’
  28. Thanks for yourattention….
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