Eivind Thomsen, (Retired) Senior Vice President, Schibsted ASA,
Norway ISOJ Austin; April 1 st 2011 Paywalls: Charging for news
content. Does it work?
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4,9 million people 94% Internet penetration Daily Newspaper
Readership 1,3 111% mobile penetration 64% on Facebook
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Schibsted 1839 1992 Schibsted Forlagene Publishing house
Aftenposten Morning newspaper Verdens Gang Evening newspaper 1839
1860 1966
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From newspapers and books in Norway to an European media group
We shall become the leading media company in Scandinavia *1994 #
employees # countriesrevenuesresult 2 100 1 3 bill NOK 0.3 bill
NOK
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6 2,069 Daily readership (000) 980 (47%) 506 (24%) 583 (28%)
Source: TNS Gallup, Orvesto From 2007 from Internet survey
Innovative approach to online news publishing Increasing reach of
our strong media houses 2,442 1,250 (51%) 299 (12%) 893 (37%)
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7 Schibsted sites generate close to 28% of top 20 traffic in
Norway Schibsted sites generate close to 25% of top 20 traffic in
Sweden Source: TNS Gallup, Kiaindex Note: Week 50 of 2009
Schibsteds superior online traffic positions enable rapid and
efficient launch of new concepts (e.g. Nettby, E24) Schibsteds
properties The most used online sites in Norway and Sweden
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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
Excluding corporate costs and eliminations Schibsteds online
activities represents 30% of Group revenues and 53% of Group EBITA
today Online 30% Offline 70% in 2002 Online 3% Offline 97% Unique
position strong online footprint 8
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9 Revenue split Total revenue Q3 2010 MNOK 3,288
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Unique position strong online footprint Europe USA
Digital/online share of revenues 2009 10
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11 Schibsted is now the global No. 3 in online classifieds,
behind eBay and Craigslist Bloomberg Business Week, October 2010
One of the global leaders in Online classifieds
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+420 000 +120 000 +215 000 + 340 000 We observe an altered
traffic pattern moving from net to mobile facilitated of iPhone and
other smartphones Source: Uke 25 -31, TNS Gallup Metrix/Scores From
desktop to mobile Average weekly UV VG NettAverage weekly UV VG
Mobil Average 2009Average 2010
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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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Consumption throughout the day: PC, iPhone and iPad VG Nett
Monday - Thursday Evening consumption is so far dominating the iPad
usage
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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.ses multiple revenue streams management key success
factors Segment leadership Broad reach Strong brand Cost control
Loyal traffic
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Combined, we are facing dramatic increase in operations and
revenue streams complexity Music industry's learningOnline News
industrys 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! Tomorrow; Several smaller revenue
streams User payment Online Advertising Mobile Advertising Web-TV
advertising Print Subscriptions & single copy sales Print
Advertising Related Services Etc Yesterday; Few huge value buckets
Print Subscriptions & single copy sales Print Advertising
Online Advertising
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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
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Hamburger Abendblatt www.Abendblatt.de - iPad 8x3 Access to
National and International news is free, access to unique regional
and local content is behind paywall.
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TV Guide for iPad launched in app store September 1st.
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ONLINE SUBSCRIPTION AFTONBLADET PLUS BEST SELLERS: ARTICLE
ABOUT HEALTH AND WELL BEING TRAVEL GUIDES LISTINGS - TAXATION ETC.
TESTS: EVERYTHING FROM CARS.. TO SHAVERS... 115,000 SUBSCRIBERS
5$/MONTH
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MICRO PAYMENT PIECE BY PIECE ANOTHER WAY OF BUYING OUR PREMIUM
CONTENT
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PAY PER VIEW We also sell TV programs and documentaries
Example: Selling National Geographics and Factual TV documentaries.
Aftonbladet gets 50% provision.
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(Pay) Clubs WEIGHT CLUB 30 3 MONTHS 406 MONTHS 5012 MONTHS
380,000 SUBSCRIBERS SINCE 2003
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E-commerce
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CUSTOMER FIGURES PREMIUM CONTENT PREMIUM JOURNALISTIC 55% 11%
E- COMMERCE 34% CLUBS 20% AFTONBLADETS ONLINE REVENUES ARE USER
REVENUES
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PAYMENT MODELS CLUBS SEK XX BASE PLUS SEK XX FREE MATERIAL
PREMIUM PLUS SEK XX News Lifestyle
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Charles Darwin It is not the strongest of the species that
survive, nor the most intelligent, but the one most responsive to
change. Survival of the fittest