The document discusses the future of newspapers in a multi-media landscape. It notes newspapers are facing declining circulation and advertising revenue as people get news from various platforms. However, newspapers can adapt by pursuing multi-media, multi-channel, and multi-platform strategies to distribute content across different devices and formats. This will allow newspapers to integrate other media and remain relevant in a converging media environment. The key is providing content on all platforms through cooperation, new business models, and integrated newsrooms while maintaining separate online and print operations.

1. The Future of the Newspaper:
multi-media, multi-channel, multi-platform
DDr. Horst Pirker, CEO Styria Medien AG
INMA Europe Conference
Vienna, 03.10.2008
Horst Pirker
A-8010 Graz Schönaugasse 64
Tel. +43 316 8063-1000 E-Mail: horst.pirker@styria.com

2. Overview
1. Review daily Newspapers
2. New Developments
3. Consequences
© Styria Medien AG Page 2

3. Overview
1. Review daily Newspapers
2. New Developments
3. Consequences
© Styria Medien AG Page 3

4. Newspaper
Derived from „zidunge“ (west middle German): „News“
Attributes
Periodicity
Up-to-dateness
Universality (variety in terms of content)
Publicity (accessibility for everyone)
► Term „Newspaper“ does not include payment coercively.
► „Newspaper“ (News) is not bound to paper or printing.
1. Review Daily Newspapers © Styria Medien AG Page 4

5. Sold Copies and Reach Germany
1. Review Daily Newspapers © Styria Medien AG Page 5

6. Circulation and Reach USA
1. Review Daily Newspapers © Styria Medien AG Page 6

7. U.S. Media market
1. Review Daily Newspapers © Styria Medien AG Page 7

8. Reach, Media Usage Time & Circulation
of Dailies in Germany and USA
1. Review Daily Newspapers © Styria Medien AG Page 8

9. Media Spending Germany 1995-2007
(Net income in relative terms)
Loss of market share of
daily newspapers in
developed markets
However, in absolute
figures increase in
advertising earnings
of daily newspaper
Risk of substitution by
internet especially
in the area of car
and real estate-
classifieds
Source: ZAW
1. Review Daily Newspapers © Styria Medien AG Page 9

10. Media Spending Germany 1995 – 2007
(Net income in absolute terms, in Mio. €)
Source: ZAW
1. Review Daily Newspapers © Styria Medien AG Page 10

11. Media Spending USA 1995-2007
(In relative und absolute terms)
Source: Universal McCann. These U.S. advertising reports represent all expenditures by U.S. advertisers - national, local, private individuals, etc. The expenditures, by
medium, include all commissions as well as the art, mechanical and production expenses that are part of the advertising budget for each medium.
1. Review Daily Newspapers © Styria Medien AG Page 11

12. Laws of Communication Sciences ( Riepl‘s Law)
Law of Non-replacement
Media never fall into desuetude, but they at
the most change in their meaning and
function in the society.
Law of Need
Media occur and only occur as a lasting
institution only if a societal need has grown
for them.
Law of Acceleration
New media step on the stage of societal
communication in progressively shorter
intervals.
1. Review Daily Newspapers © Styria Medien AG Page 12

13. Overview
1. Review daily Newspapers
2. New Developments
3. Consequences
© Styria Medien AG Page 13

14. New Developments: Technique
Des- Content Re-
Content Integration* Integration** Content
and
Digitalisation and
intermediate medium
and
original medium (nz≥ 1) final medium
Disintegration
* by media producer, e.g. User
E-Paper ** by media producer or consumer
Broadband
Hypermedium Internet
Weblogs
Games
Artificial Intelligence
Next Generation Media
2. New Developments © Styria Medien AG Page 14

15. New Developments: Economy
Concentration
Markets
Market Participants
Advertiser
Advertising agencies
Concentration of media
Development of Free Newspapers worldwide
New Business Models
Hybrid Models
Reverse Publishing
Free Newspapers
2. New Developments © Styria Medien AG Page 15

16. Stock Price of selected Media Companies
New York Times Company Gannett McClatchy Johnston Press Trinity Mirror
2. New Developments © Styria Medien AG Page 16

17. New Developments: Society
Disintermediation
Shift of Power
Multitasking
Always on
2. New Developments © Styria Medien AG Page 17

18. New Developments: Convergence
Convergence of
Technique
Transmission routes
Tools
Branches
Media (Companies)
Content
Culture
Public and Private
Human and Computer
Producer and Consumer
2. New Developments © Styria Medien AG Page 18

19. Overview
1. Review daily Newspapers
2. New Developments
3. Consequences
© Styria Medien AG Page 19

20. Consequences for Media Companies
1. Cooperations
2. Mergers
3. Harvest
4. The 3 Lives of Newspapers
5. MMM-Strategy
Multimedia
Multichannel
Multiplattform
6. Newsroom: Integration-Model vs. Separation-Model
3. Consequences © Styria Medien AG Page 20

21. 1/6 Cooperations
Source: Vgl. Schildhauer, T. et al. (2005), S. 29
3. Consequences © Styria Medien AG Page 21

22. 2/6 Mergers (Fusions, Joint Ventures und Take Overs)
Horizontal vs. Vertical Mergers
 Economies of scale vs.
homogenous value-added chains
and strengthening of independence
Substitutive vs. complementary
Targets
Companies after Mega-Merger
very often to slow on
dynamic media market
(Vivendi, AOL Time Warner,
etc.)
3. Consequences © Styria Medien AG Page 22

23. 3/6 Harvest
„A stagnant industry‘s market
position is harvested by raising
prices and lowering quality,
trusting that consumers will
continue to be attracted by
the brand name rather than
the substance for which the
brand name once stood.“ (M.
Porter)
3. Consequences © Styria Medien AG Page 23

24. 4/6 Die 3 Lives of Newspapers: Paid
1. Paid-Newspapers
3. Consequences © Styria Medien AG Page 24

25. 4/6 Die 3 Lives of Newspapers: Hybrid
1. Paid-Newspapers 2. Hybrid Model
Manchester Evening News
• Established in 1868
• Price: 40 p
• For free in city centre, on airports
and hospitals since 2006
Le Matin Le Matin bleu
• established 1984 • Established 2005
• Paid-Newspaper • Free-Newspaper for younger target
group
Die Welt Die Welt kompakt
• Established 1946 • Established 2004
• Format: Broadsheet • Format: Tabloid
• Price: € 1,50-1,80 • Price: € 0,70
• Lower-priced compact
newspaper for younger TG
3. Consequences © Styria Medien AG Page 25

26. 4/6 Die 3 Lives of Newspapers: For Free
1. Paid-Newspapers 2. Hybrid Model 3. For free
La Razon (Buenos Aires)
 Established 1905
 For free since 1999
San Francisco Examiner
 Established 1865
 For free since 2003
The Standard (Hongkong)
 Established 1949
 For free since 2007
3. Consequences © Styria Medien AG Page 26

27. 5/6 MMM – Multimedia Multichannel Multiplatform
Text Pictures Tones Graphs
(moved/ unmoved)
3. Consequences © Styria Medien AG Page 27

28. 5/6 MMM – Multimedia Multichannel Multiplatform
Physical Distribution
Household Delivery
Kiosk/ Retail
Colportage/ Distributors
Distribution Bags
Non-Physical Distribution
Cabel
Satellite
UMTS
DVB-H
GPRS
WiFi
WiMAX, etc.
3. Consequences © Styria Medien AG Page 28

29. 5/6 MMM – Multimedia Multichannel Multiplatform
Various platforms
Paper
PC
Mobile Devices
Public Screens, …
3. Consequences © Styria Medien AG Page 29

30. 5/6 MMM - Summary
media
Multi-
3. Consequences © Styria Medien AG Page 30

31. 5/6 MMM - Summary
media
Multi-
channel
Multi-
3. Consequences © Styria Medien AG Page 31

32. 5/6 MMM - Summary
media
Multi-
channel
Multi-
platform
Multi-
3. Consequences © Styria Medien AG Page 32

33. 6/6 Newsroom: Separation-Model vs. Integration-Model
Separation-Model : Integration-Model :
„Schibsted initially separated
its print and online operations
because it had no
confidence in its newspapers’
ability to try simultaneously to
steal competitor’s
audiences while preserving
market share.
Since then, the managers have
been impressed with the way
the spirit of competition from
online has bled into the print
side.“
Source: Schibsted Media: Innovation In Action, p. 9
3. Consequences © Styria Medien AG Page 33

34. 6/6 2 different Model - 2 possible Chances of Success
Separation-Model : Integration-Model :
3. Consequences © Styria Medien AG Page 34

35. 6/6 The Danger of Integration
Digital only Digital only
AUDIENCE
Double AUDIENCE Double
User
User
Print only
Print only
*At Schibsted the subset amounts to 5%!
Probably it is usefull to build a common newsroom where digital and print sit next to each other in order to exchange ideas, etc.
However the print and digital organisations and processes should not be integrated, they should act in an egoistic manner with
clear seperation of responsibilities. In this sense the subset of contents is just a by-product or even a „waste-product“.
3. Consequences © Styria Medien AG Page 35

36. 6/6 Content Engine
2 major components
(among others):
1. UGC (User
generated content)
2. Automatically
generated and
related content
(e.g.
silobreaker.com):
Automated
integration of own,
external and
individual contents
and services for all
media and
formats.
3. Consequences © Styria Medien AG Page 36

37. The crucial Challenge
© Styria Medien AG Page 37

38. Thank you!
Horst Pirker
A-8010 Graz Schönaugasse 64
Tel. +43 316 8063-1000 E-Mail: horst.pirker@styria.com