The Economist - Lean Back Media

8/3/2019 The Economist - Lean Back Media

1/74


2/74

i have gradually become used to dividing

my reading into the work,

laptop, info zone; and the chill, relaxing,

leisurely read of the tablet.

the laptop replicates the old newspaper

experience; the tablet replicates the book.

everything new is old again.

[ a n d r e w s u l l i v a n , t h e s u n d a y t i m e s ]


3/74

t h e r e b i r t h o f l e a n - b a c k m e d i a

i s s e e m i n g l y a g e n t l e , r e a s s u r i n g c h a n g e

f o r m e d i a b u s i n e s s e s .

it is actually a tsunami that demands

urgent re-examination of everything

that constitutes a media business.


4/74

lean back

r i t u a l p l e a s u r e

o f r e a d i n g

s n a c k i n g a n d r e s e a r c h ,

c o m m u n i t y , s h a r i n g

l e a n - b a c k ,

o n l y b e t t e r

the first age:lean-back print

the second age:lean-forward web

the third age:lean-back digital


5/74

news is becoming ashared social experience,

with people swapping

links in emails, postingon social networks,retweeting news stories

and haggling over themeaning of events in

discussion threads.

[ p e w i n t e r n e t & a m e r i c a n l i f e p r o j e c t , 2 0 1 0 ]


6/74

7 millionunique users

onlinecontent

ideasarena

twitter

debates

face-book

ask theeconomist

googlenews

linkedin

byinvitation

usercomments

tumblr

itunes

audioedition

conversationcloud

youtubeprintcontent

theeconomist

asks

flipboard

the web demanded a

the economist approachto lean-forward web...

[ s o u r c e : o m n i t u r e ]


7/74

educatedu s e r s h a v e t a k e n a n a v e r a g eo f 4 e d u c a t i o n c o u r s e s .

internationalthey took an average of 14 businesstrips and 7 leisure trips last year.

influentialalmost 1 in 5 hold a boarddirectorship. 3% hold over fo ur.

successfula v e ra ge p e rs ona l i ncom e o f us e rso f t h e e c o n o m i s t o n l i n e : $ 1 1 5 , 1 9 8 .

[ s o u r c e : t h e e c o n o m i s t on l i n e r e a d e r s u r v e y, 2 0 1 0 . b a s e : a l l r e s p o n d e n t s wo r l d w i d e i n e m p l o y me n t ]


8/74

[ e z r a k l e i n , t h e w a s h i n g t o n p o s t ]


9/74

[ g q , v a n i t y f a i r , w i r e d a n d g l am o u r a p p r e a d e r s u r v e y, c o n d e n a s t 2 0 1 0 ]

[ m o d e r a t e r e s e a r c h t e c h n o l o g i e s , d i g i t a l w o r l d b o o k c o n f e r e n c e 2 0 11 ]

print readers spend about45 minutes with an issue each month.readers using their phone and pad

spend an average of 160 minutes.

65% of people have increased the amountthey read due to e-books, with 80% attributing

this to the ofreading a book digitally.

reading during dead time was a key trendwith travelling (72%) and waiting for anappointment (72%) proving most popular.


10/74

[ j o n a t h a n s e f f , m a c w o r l d ]

i neverreally found

it very enJoyableto read a magazine on my

computer or phone.but with the pad its a

whole different story.

i can pinch out to zoom intoa section; hyperlinks take me

directly to an article without makingme flip through the pages

... and i can read in bed without a lightafter my wife goes to sleep.


11/74

implicity &finishability.

n o o n e e v e r a s k e d f o rT h e e c o n o m i s T t o b e l o n g e r .

o u r l e a n - b a c k d i g i t a l s t r a t e g y i sR A D i c A L s i m P L i c i T Y. i t w a s a c o n s c i o u s

e d i t o r i a l d e c i s i o n t o s t r i p o u t o u rw e b i n n o v a t i o n s i n m a n y w a y s t h i s

w a s h a r d e r t h a n k e e p i n g t h e m .

s o W h y d i d W e d o t h i s ?


12/74

lean back

0 2 0 4 0 6 0 8 0

o t h e r

c o m m u t i n g

r u n n i n g e r r a n d s

i n a m e e t i n g / c l a s s

i n t h e b a t h r o o m

w a i t i n g f o r s o m e o n e

w i t h f r i e n d s / f a m i ly

l y i n g i n b e d

w a t c h i n g t v

% of respondents using tablets while...

[ p e w r e s e a r c h ( u s ) i n a s s o c i at i o n w i t h t h e ec o n o m i s t g r o u p, o c t o b e r 2 01 1 ]


13/74

lean backq. how much time in total do you think you will spend

reading the economist ipad app this week?

5 %5 %

1 0 %1 0 %

1 5 %1 5 %

2 0 %2 0 %

2 5 %2 5 %

n o n e l e s s t h a n1 5 m i n s

1 5 - 3 0m i n s

3 0 m i n s 1 hr

1 1 . 5h r s

1 . 5 2h r s

2 2 . 5h r s

2 . 5 3h r s

3 4h r s

4 h r s and up

[ s o u r c e : t h e e c o n o m i s t u k i p a d s u r v e y , j u l y 2 0 1 1 ]


14/74


4 2 % o f t a b l e t n e W s r e a d e r s r e g u l a r l y r e a d i n - d e p t h

n e W s a r t i c l e s . a n o t h e r 4 0 % s o m e t i m e s d o t h i s .

t h e y a r e three times as li kely t o r e g u l a r l y

r e a d i n - d e p t h a r t i c l e s a s t o w a t c h n e w s v i d e o s .


15/74

o f t a b l e tn e W s u s e r s

r e a di n - d e p t ha r t i c l e s

o f t a b l e tn e W s u s e r ss h a r e n e W s

o n s o c i a ln e t W o r k s

42%

16%

tablet news users read in-depth articles but share news

less. participatory news is a part of the mix but even

among the young (19-25) less than 1 in 5 share news

on the tablet regularly.

[ p e w r e s e a r c h ( u s ) i n a s s o c i at i o n w i t h t h e e c o n o m i s t g r o u p, o c t o b e r 2 0 1 1.t a b l e t n e w s u s e r s a r e d e f i n e d h e r e a s t h o s e w h o c o n s u m e n e w s o n t h e i r t a b l e t s at l e a s t w e e k l y ]


16/74

its hard to browse the web with an pad.

[ m i r a t e c h w h i t e p a p e r , j u l y 2 0 1 1 ]

e y e a c t i v i t yo n a w e b s i t e

[ s o u r c e : w w w . mi r a t e c h . c o m /b l o g / u s e r - t e s t i n g - i pa d - v s - c o m p u t e r ]

a n d i t sc o r r e s p o n d i n g a p p


17/74

people who mainly use apps for news aremore active tablet users in general.

they are more in-depth readers and were more

satisfied with their tablet news experience.

some even stated that the content they get hereis worth more than content on other platforms.

those who mainly use apps are also twice as likelyas browser users to read magazines daily on their

tablet (13% 6% browser, 9% both).


its hard to browse the web with an ipad.

[ m i r a t e c h w h i t e p a p e r , j u l y 2 0 1 1 ]


18/74

[ p e w r e s e a r c h ( u s ) i n a s s o c i at i o nw i t h t h e e c o n o m i s t g r o u p , o c t o b e r 2 0 1 1 ]

5 3 %4 6 %

2 2 %

t h e n e w s i sw o r t h m o r e

e n j o y t h en e w s m o r e

e a s i e r t o l e a r nn e w t h i n g s

2 6 %2 1 %

1 1 %

m a i n l y a p p s

m a i n l y b r o w s e r


19/74

the fastest speed of change ourndustry has ever experienced.

the kindle launchedon november 19th 2007.

the pad launched onJanuary 27th 2010.

tablets and e readersare rapidly eclipsing

paper and rival screens.

we had centuries toadapt to print.

decades to adaptto the web.

we haveto adapt to

lean-back 2.0.


20/74

the fastest speed of change ourndustry has ever experienced.

0 2 0 4 0 6 0

5 9 %

5 2 %

4 3 %

4 1 %

3 4 %

11 %

u s e m yd e s k t o p / l a p t o p

none of the above

w a t c h t v

u s e m ys m a r t p h o n e

l i s t e n t o t h e r a d i o

r e a d a p a p e r b o o k

i spend more time each

day on my tablet than i...

[ s o u r c e : a d m o b , u s s u r v e y j u ly 2 0 1 1 ]

newsconsumptionischanging


21/74

newsconsumptionischanging:

people are alreadyusing the tablet toget news they used

to find elsewhereprimarily their

desktop or laptop.

79%used to get their

news from a desktopor laptop

59%used to gettheir news

from a printnewspaperor magazine

57%used to get

their news fromtelevision

s o u r c e : p e w r e s e a r c h( u s ) i n a s s o c i a t i o n w i t h

t h e e c o n o m i s t g r o u p ,o c t o b e r 2 0 1 1

thedifference


22/74

the difference2 years will make:

current preference expected preference in 2 years

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %

p r i n t w e b s i t ep a i d

w e b s i t ef r e e

s m a r t -p h o n e a p p

t a b l e tapp

e - r e a d e r a u d i oe d i t i o n

s o c i a lm e d i a

[ r e s p o n d e n t s : s u b s c r i b e r s a g e d 4 0 + . s ou r c e : b r a n d a s s e t v a l u a t o r u s a , 2 0 1 1 t h e e c o n o m i s t c u s t o m s t u d y ]

c u r r e n t

i n 2 y e a r s


23/74

ales of tablets, smartphonesand e-readers are set to growfast:

tablet sales forecast, 2010 2015

[ s o u r c e : g a r t n e r , m a r k e t e r ]

b y 2 0 1 5 , t h e s m a r t p h o n e m a r k e t w i l l h a v e g r o w n f r o ma r o u n d 4 5 0 d e v i c e s t o d a y t o 1 . 1 ( a n d r o i d , w i n d o w s , o s , r i m ) .

by next year, 12% of us adults(28.9 people) will own an e-reader.

2 0 1 0 2 0 11 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5

326252

178104

6418


24/74

conomist readers in particularre buying these devices:

[ m e n d e l s o h n a f f l u e n t s u r v e y 2 0 1 1 ( u s ) ]

over 50% o f o u r u s

r e a d e r s o w n a t a b l e t o r

e - r e a d e r o R p l a n t o b u y

o n e i n t h e n e x t 1 2 m o n t h s

28% o f e c o n o m i s t r e a d e r s

o w n a t a b l e t / e - r e a d e r

20% o w n a n e - r e a d e r

11% o w n a t a b l e t

23% p l a n t o p u r c h a s e

a n e - r e a d e r / t a b l e t

w i t h i n t h e n e x t 1 2 m o n t h s

17% p l a n t o p u r c h a s e a t a b l e t

w i t h i n t h e n e x t 1 2 m o n t h s


25/74

the proportion of us adults using e-readersnearly doubled from 2010-2011 and is now 15%.

[ m e n d e l s o h n a f f l u e n t s u r v e y 2 0 1 1 ( u s ) ]

8%

15%

2010 2011

agreei use an electronic reader, such as

a kindle, an pad or a nook, to read books:


26/74

the tablet effect:

because of the growth [of tablets and e-readers],

paper use for print media including magazines,newspapers, and books will have declined by as much

as 21%, compared to their 2010 production rates.

additionally, over the next 15 years,

production could fall by 4050%.

[ r i s i g l o b a l s t u d y ( 2 0 1 1 ) ]


27/74

l e a n - b a c k r e a d e r s a r e t h e m a s s i n t e l l i g e n t .

a g l o b a l p s y c h o g r a p h i c , n o t a d e m o g r a p h i c .

i n t e r e s t e d i n i d e a s . r e c e p t i v e t o n e w c o n c e p t s .

c a ta l y s t s f o r c h a n g e . w e l i v e i n t h e i r w o r l d .


28/74

the economic product of the united stateshas become predominantly conceptual.

[ a l a n g r e e n s p a n ]

audience:


29/74

audience:

elite media

massmedia

m a r k e t s i z es m a l l b i g

d

em

o

g

ra

ph

ic

s

massintelligence

audience:


30/74

2 6 . 8 p e o p l en o w l i s t e n

t o n p r

8 . 5 v i s i t o r st o t h e l o u v r e

W e a r e o f t e n t o l d t h a t t h e o n l y W a y f o r m e d i a c o m p a n i e s t o s u r v i v ei s t o d u m b d o W n ; t h a t y o u n g p e o p l e h a v e n a r r o W a t t e n t i o n s p a n s s o

e v e r y t h i n g n e e d s t o b e d e l i v e r e d i n s o u n d b i t e s .

t h a t i s n o t t r u e .

8 c o p i e s o fc i v i l i s a t i o nv i d e o g a m e

s e r i e s s o l d

2 8 . 2 s u b s c r i b e r s

t o h b o

audience:


31/74

n o l a n c a s h e d i n h i s h a r d - e a r n e da r t i s t i c a n d f i n a n c i a l f r e e d o m w i t h

i n c e p t i o n , t h e $ 1 6 0 a u t e u r v e h i c l e

t h a t p r o v e s r e a l l y e x p e n s i v e m o v i e s

d o n t h a v e t o b e s t u p i d t o b e s u c c e s s f u l .

i t s a f i l m t h a t i m a g i n e s t h a t t h e m u l t i -

p l e x m a s s e s a r e n t s o d u m b a f t e r a l l .

m a r k k e r m o d e , f i l m c r i t i c

s k y a t l a n t i c h d i s u n a s h a m e d l yd e d i c a t e d t o q u a l i t y .

s k y a t l a n t i c h d i s a k e y p a r t o f

o u r s t r a t e g y t o h e l p f u r t h e r g r o w

t h e c o n t e n t g a p b e t w e e n w h a t y o u

c a n g e t w i t h s k y a n d w h a t y o u c a n

g e t e l s e w h e r e .

s t u a r t m u r p h y , d i r e c t o r o f

p r o g r a m m e s ( s k y 1 a n d s k y a t l a n t i c )

w b, 2011 s hbo, 2011

p a y t v h a s s h o W n t h a t v a l u e i s c r e a t e d a n d e X t r a c t e d t h r o u g hi n v e s t m e n t i n Q u a l i t y c o n t e n t . d a t a s h o W s t h a t m o r e p e o p l e W a n t t o b e

c h a l l e n g e d b y W h a t t h e y r e a d , W a t c h a n d l i s t e n t o t h a n e v e r b e f o r e .

i t i s a m a s s p h e n o m e n o n t h a t W e c a l l m a s s i n t e l l i g e n c e .

audience:


32/74

mix and

family guy

the simpsons

saturdaynight live

americanidol

sportsillustrated

espn

peoplemagazine

us weekly

the oprahmagazine

the economist

the newyorker

the atlantic

hbo

art galleries

live theatre

classicalconcert

people who read/watch/attend at

least two of...

33%

32%

39%

[ s o u r c e : m r i , f a l l 2 0 0 7 ]


33/74

a truly mass phenomenon: W e l l d o n , m y s u n : a n i g h t a t t h e o p e r a f o r 2 , 2 0 0s u n r e a d e r s m a d e w a v e s a r o u n d t h e w o r l d i n a n

a m a z i n g m o m e n t i n b r i t i s h c u l t u r e .

t h e o p e n i n g n i g h t o f m o z a r t s d o n g i o v a n n i a t l o n d o n s r o y a l o p e r a h o u s e w a s p a c k e dt o t h e r a f t e r s e x c l u s i v e l y b y s u n r e a d e r s .

[ s o u r c e : t h e s u n . c o . u k , s e p t e m b e r 2 0 0 8 ]

audience:


34/74

and their ranks are growing...

[ s o u r c e : u n e s c o , 2 0 0 9 ]

international student numbers

1 m i l l i o n

5 0 0 , 0 0 0

1 9 7 5 1 9 8 0 1 9 8 5 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 5 2 0 0 9

1 . 5 m i l l i o n

2 m i l l i o n

2 . 5 m i l l i o n

3 m i l l i o n

3 . 5 m i l l i o n


35/74


36/74

the way forward


37/74


38/74

what does thismean for media

businesses?

e d i t o r i a l

p r o d u c t

m a r k e t i n g

b u s i n e s s

m o d e l s

p r o d u c t i o n

a d v e r t i s i n g


39/74


40/74

product:


41/74

71%

ofta

bletu

sers

prefer

readi

ngor

hearingf

actsr

ather

thanp

icturesor

video

(26%p

referpictu

res).

thisc

ompar

esto

anev

enspl

itint

he

genera

lpopu

lation

.

newsu

sersa

reabo

ut

three

times

aslik

ely

toregu

larly

read

in-depth

articl

esas

towa

tchnew

svide

os.

[ s o u r c e : p ew r e s ea r c h ( u s )i n a s s o c i a t i o n w i t h t h e e c o n o m i s t g r o u p , o c t o b e r 2 0 1 1 ]

product:


42/74

i n v e s t m e n t i n h i g h - q u a l i t y , l o n g - f o r m j o u r n a l i s mi s n o t c o m p l a c e n c y , i t i s b a s e d o n a u d i e n c e i n s i g h t .

i t i s n o t o n l y T h e e c o n o m i s T t h a t c a n p u l l o f f t h i s t r i c k .t h e m a s s i n t e l l i g e n t a r e a b i g m a r k e t .

the rebirth of readingmeans the rebirth of writing.


43/74

product:


44/74

how a news organisationworks is changing.

a p r o l i f e r a t i o n o f d e v i c e s , f o r m a t s

a n d w a y s t o e n g a g e t h e r e a d e r

d e m a n d s n e w s k i l l s , n e w c a p a c i t ya n d n e w s t r u c t u r e s .

a s W e l l a s m a k i n g t W i t t e r f a c e b o o k

product:


45/74

a s W e l l a s m a k i n g t W i t t e r , f a c e - b o o ka n d g o o g l e p a r t o f t h e n e W s e c o s y s t e m ,t h e i n t e r n e t h a s a l s o m a d e p o s s i b l e

e n t i r e l y n e W k i n d s o f s p e c i a l i s t n e W so r g a n i s a t i o n s i n c l u d i n g a h o s t o fn o t - f o r - p r o f i t n e W s o r g a n i s a t i o n st h a t r e l y o n p h i l a n t h r o p i c f u n d i n g

a n d s p e c i a l i s e i n p a r t i c u l a r k i n d so f J o u r n a l i s m .

m a n y o f t h e s e n e W o u t f i t s c o l l a b o r a t eW i t h t r a d i t i o n a l n e W s o r g a n i s a t i o n s ,

t a k i n g a d v a n ta g e o f t h e i r b r o a d r e a c h

a n d t r u s t e d , e s t a b l i s h e d b r a n d s .

t o m s t a n d a g e ,

d i g i t a l e d i t o r , t h e e c o n o m i s t

product:


46/74

developnew reading

opportunities...


47/74

relaxing at home

on the plane

out and about

on the move

waiting for

the train

relaxing at home

on the plane

out and about

on the run

waiting for

the train

with the family

product:

dont turn your back


48/74

t h a n k s f o r c o m i n g !

n y p o s t . c o m e d i t o r i a l c o n t e n t i sn o W o n l y a c c e s s i b l e o n t h e p a dt h r o u g h t h e n e W y o r k p o s t a p p .

[ s o u r c e : n y p o s t . c o m / p a d r e d i r e c t / ]

l e a n - b a c k d i g i t a l s r e l a t i o n s h i p w i t h t h e w e b w i l l n e e d s o r t i n g .

t h e n e w y o r k p o s t d o e s n o t s e e m t h e w a y t o g o :

don t turn your backon your readers.

product:

dont turn your back


49/74

l e a n - b a c k d i g i t a l s r e l a t i o n s h i p w i t h t h e w e b w i l l n e e d s o r t i n g .

t h e n e w y o r k p o s t d o e s n o t s e e m t h e w a y t o g o :

don t turn your backon your readers.


50/74

a d v e r t i s i n g r e v e n u e w i l l n e v e r s u p p o r t

t h e c o m m i s s i o n i n g m o d e l f o r h i g h - e n d j o u r n a l i s m .

a d r e v e n u e f r o m b u i l d i n g s c a l e w i l l n o t

k e e p p a c e w i t h t h e c o s t o f c r e a t i n gd i s t i n c t i v e c o n t e n t t o b u i l d a u d i e n c e .

T h e G U A R D i A n m a y n e v e r s u s t a i n h i g h - q u a l i t yj o u r n a l i s m d e l i v e r e d f o r f r e e w i t h o u t c r o s s - s u b s i d y .

we need to move beyondthe paybarrier debate.

business model:


51/74

r e a d e r s w i l l n o t p a y f o r c o m m o d i t i s e d

p r o d u c t s i n s u f f i c i e n t n u m b e r s .

g e n e r i c c o n t e n t d o e s n o t p r o v i d e e n o u g hv a l u e t o c o m p e t e w i t h f r e e .

T h e T i m e s m a y n e v e r b u i l d a s u s t a i n a b l e s u b s c r i b e r b a s e

i n i t s c u r r e n t f o r m w i t h o u t c r o s s - s u b s i d y .

the brokenpaywall model:

business model:


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business model:

there are lots of functional media models.

a l l s u c c e s s f u l m o d e l s a r e u n d e r p i n n e d b y r e a d e r i n s i g h t

a n d a b l e t o c r e a t e a n d e x t r a c t v a l u e a t l e s s t h a n

t h e c o s t o f c r e a t i o n .

gawkerthe

youngturks

theeconomist

reutersbreaking

views

fox newschannel

mumsnetmashable financialtimes


53/74

business model:

u n d e r s t a n d r e a d e r s . w o r k o u t h o w t o c r e a t e

v a l u e f o r t h e m a n d e x t r a c t v a l u e f r o m t h e m .

what were prepared to pay for things

is extraordinarily subJective andincredibly contextually determined.

[ r o r y s u t h e r l a n d , c h a i r , t h e i p a , u k ]


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a m a z o n c u s t o m e r s b u y 3 . 3 t i m e s a s m a n y b o o k s

a f t e r b u y i n g a k i n d l e a f i g u r e t h a t h a s a c c e l e r a t e di n t h e p a s t y e a r a s p r i c e s f o r t h e d e v i c e f e l l .

m o r e t h a n a q u a r t e r o f a p p u s e r s h a v ep a i d f o r n e w s o n t h e i r t a b l e t , c o m p a r e d

w i t h j u s t 5 % o f b r o w s e r u s e r s .

o f t h o s e w h o p ay t h e v a s t m a j o r i t y ( 8 6 % )g e t n e w s o n t h e i r t a b l e t d a i l y a n d 5 3 %

s p e n d m o r e t i m e w i t h n e w s n o w t h a n t h e yd i d b e f o r e t h e y h a d t h e i r t a b l e t( v e r s u s 3 0 % o f a l l n e w s u s e r s ) .

business model:

[ w a l l s t r e e t j o u r n a l , a u g u s t 2 0 1 0 ]

[ s o u r c e : p e w r e s ea r c h ( u s ) i n a s s o c i a t i o n w i t h t h e e c o n om i s t g r o u p, o c t o b e r 2 0 11 ]

the rebirth of paid content

not a zero-sum game:


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[ s o u r c e : f o x i n s i g h t j u l y / a u g u s t 2 0 1 1 . b a s e : 1 , 2 0 4 ]

2 5 %

0 %

2 5 %

5 0 %

7 5 %

with the launchof the app iconsider my

subscriptiongreater value

for money

the economistis interestedin the needs

of itsreaders

other peoplein my household

read theeconomist

on mypad/phone



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153%

comp

ound

annu

algrowt

hrate

global mobile app + advertising revenue =$12 billion in 2011e revenue, up 17 in 3 years

$ 5 b i l l i o nmobilea

d

+

apps

spending

$ 1 0 b i l l i o n

$ 1 5 b i l l i o n

2 0 0 8 2 0 0 9 2 0 1 0 2 0 11 e

[ s o u r c e : g a r t n e r , 2 0 11 . n o t e : a p p l e h a s pa i d > $ 3 b n t o d e v e l o p e r s a s o f s e pt e m b e r 2 0 1 1,i m p l yi n g g r o s s a p p m a r k e t r e v e n u e o f $ 4 b n i n 3 y e a r s ; g o o g l e i n d i c a t e d d u r i n g

c q 3 e a r n i n g s c a l l t h at i t e x p e c t s $ 2 . 5 b n m o b i l e a d r e v e n u e i n 2 0 1 1 e ]

m o b i l e a d v e r t i s i n g

$0.7bn

$12bn

m o b i l e a p p s

not a zero-sum game:reaching new audiences


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77% of digital subscribers arenew to us and 12% are lapsed.

reaching new audiences

p r i n t

s u b s c r i b e r sa t p u r c h a s e

c a n c e l l e d /

s u s p e n d e d /n o t r e n e w e d

6% 4%

l a p s e d p r i n ts u b s c r i b e r s

12%

n e v e r h a d

a p r i n ts u b s c r i p t i o n

77%

[ s o u r c e : e c o n o m i s t g r o u p c u s t o m e r d a t a b a s e , a u g u s t 2 0 1 1 ]

previous experience ofthe economist by digital subscribers:

not a zero-sum game:time spent with news now compared


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time spent with news now comparedwith before owning a tablet

3 0 %s p e n d

m o r e

t i m e

6 5 %

s p e n d

s a m e a m o u n t

o f t i m e

4%

spend

less

tim

e

[ s o u r c e : p e w r e s ea r c h ( u s ) i n as s o c i a t i o n w i t h t h e e c o n o mi s t g r o u p, o c t o b e r 2 01 1 ]


circulation growth


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2 0 0

4 0 0

6 0 0

8 0 0

1 , 0 0 0

1 , 2 0 0

1 , 4 0 0

1 , 6 0 0

1 , 8 0 0

2 0 0 72 0 0 2 2 0 0 82 0 0 3 2 0 0 92 0 0 4 2 0 1 02 0 0 5 2 0 112 0 0 6

circulation growtheconomist circulation volumes september

digital:27% increase

volume

s(000)

p r i n t d i g i t a l

the right app has unlocked digital revenues for the economist.

not a zero-sum game:develop mobile commerce


60/74

2 %

4 %

6 %

8 %

1 0 %

1 2 %

1 4 %

1 6 %

1 8 %

a u c t i o ns i t e s

b a n k a c c o u n t s

c r e d i tc a r d s

e l e c t r o n i cp a y m e n t s

f i n a n c i a ln e w s / s t o c k

q u o t e s

o n l i n er e t a i l

s t o c kt r a d i n g

develop mobile commerce

market

%

u k u s j p

[ s o u r c e : c o m s c o r e m o b i l e n s j a n 2 0 1 1 , m p a ]

% used mobile device to purchase the following:


61/74


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i n p r i n t w e s t r u g g l e t o d e l i v e r f o rt h e w e e k e n d i n m a n y p a r t s o f t h e w o r l d .

p o s t a l d e l i v e r y i s e x p e n s i v e a n d

i n c r e a s i n g l y u n r e l i a b l e .

changing the economicsof distribution

business model:


63/74

m a r k e t i n g

marketing:

the five ps reimagined:


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the five p s reimagined:

product:

price:

place:

promotion:

people:

t h e d e m a n d f o r i n t e l l i g e n t , i m m e r s i v e l e a n b a c k i s

a b s o l u t e b u t t h e p o t e n t i a l f o r l e a n - b a c k d i g i t a l t o

d e l i v e r a n e n h a n c e d e x p e r i e n c e i s s t i l l t o b e e x p l o r e d .

r e a d e r r e l a t i o n s h i p w i t h c o n t e n t b e i n g r e d e f i n e d

a n d t h e r e a r e f e w p r i c e - p o i n t b e n c h m a r k s .

w e c a n b e e v e r y w h e r e , b u t h o w m u c h p o w e r s h o u l d w e a l l o w

d i g i t a l s a l e s c h a n n e l s , s u c h a s i t u n e s a n d a m a z o n , t o e x e r t ?

t h e p a r a d o x o f i n f i n i t e c h o i c e m e a n s s o c i a l i s a k e y d r i v e r

a n d i n a n a g e o f m e d i a c o n s u m p t i o n a s a f o r m o f s o c i a l

e x p r e s s i o n , h o w d o w e s t ay r e l e v a n t a n d a s p i r a t i o n a l ?

m a s s i n t e l l i g e n c e i s a g l o b a l m a r k e t ,

b u t h o w d o w e s e r v e t h e m ?


65/74


66/74

advertising:

opportunity or


67/74

43%43%

1 0 %

2 0 %

3 0 %

4 0 %

5 0 %

p r i n t r a d i o t v i n t e r n e t m o b i l e

time spent consuming media vs % of advertising spending, usa 2010

%oftotalmediaconsumptiontime

oradver

tisingspending

t i m e s p e n t

a d v e r t i s i n g s p e n d

[ s o u r c e : k p c b / m a r k e t e r , m a r c h 2 0 1 1 ]

a $20 billion

opportunityin the us

8%

27%

16%

25%

8%

11%

19%

.5%

tablet users tend to be more highly educated,employed full-time and have a higher household

income than the us population overall.

[ p e w r e s e a r c h ( u s ) i n a s s o c i a t i o n w i t h t h e e c o n o m i s t g r o u p , o c t o b e r 2 0 1 1 ]

advertising:


68/74

W i l l n e e d :

n e w c r e a t i v e

s t a n d a r d s

n e w m e a s u r e s

n e w s k i l l s

n e w m a r k e t


69/74

conclusion


70/74

conclusion

lean-back 2.0is not the end.

i t i s t h e l a t e s tW a v e o f d i s r u p t i o n .

e v e r y t h i n g o l d i s n e W a g a i n .b u t d i f f e r e n t .

a n d i t i s d i f f e r e n t a g a i nf r o m t h e W e b , W h i c h m e a n s

i t s h o u l d b e J u s t a s s c a r y f o rn e W m e d i a b r a n d s , W i t h n oe X p e r i e n c e o f d e l i v e r i n g

l e a n - b a c k c o n t e n t.

b u t i t i s n o t a Z e r o - s u m g a m e .

s u r v i va l a n d p r o s p e r i t y m e a nr e i m a g i n i n g o u r b u s i n e s s . . .

. . . a l l o v e r a g a i n .

conclusion


71/74

conclusion

W i l l t h e m e d i u m c h a n g e m e d i a ?

W i l l t h e r e l a t i o n s h i p W i t h

c u s t o m e r s / r e a d e r s c h a n g eb e c a u s e o f n e W i n t e r m e d i a r i e s ?

W h a t W i l l a d v e r t i s i n g b e l i k e ?

W h o c o u l d s t e a l o u r l u n c h ?

c a n W e c h a n g e f a r a n d f a s t

e n o u g h a n d W h a t i s s t o p p i n g u s ?

the big questionswe ask ourselves( a n d y o u m i g h t t o o )


72/74

conclusion

t h e i n t e r n e t w a s n o t t h e f i r s t r a d i c a l c h a n g et o h i t t h e m e d i a i n d u s t r y .

s i n c e t h e 1 9 8 0 t h e r e h a s b e e n w a v e a f t e r w a v eo f t e c h n o l o g i c a l c h a n g e .

m o s t h a v e a d a p t e d . s o m e h a v e d i e d . m a n y m o r e h a v et a k e n t h e i r p l a c e . m e d i a h a s p r o l i f e r a t e d .

T h e e c o n o m i s T h a s b e n e f i t e d f r o m a n d c a p i t a l i s e do n f a v o u r a b l e w i n d s o f c h a n g e :

globalisationspread of the english language

the era of mass intelligence

a n d W i t h l u c k t h i s i s t h e l a t e s t

disruption is an occupational hazard:


73/74

the (deas) pad:

d e s i g n e d f o r t h e a g eo f m a s s i n t e l l i g e n c e .


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a n d r e w r a s h b a s s , c h i e f e x e c u t i v e

t h e e c o n o m i s t g r o u p

n o v e m b e r 2 0 1 1

2.0

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