An unbiased view on the media sector by Geert Wellens & Geert Noels, Econopolis.

1. The New Paradigm
Threats & Opportunities for media & publishers
in the digital era
Geert Wellens / Econopolis NV
Kick-off event media innovatie centrum (mic)
Monday 19 March 12

2. MEDIA:
SOME FACTS
Monday 19 March 12

3. NEWSPAPERS IN TROUBLE
Insane drop in income Same story for magazines
Some major newspapers are the biggest concern is that A similar story is going on Mayor drops in advertising
near bankrupt, and eager to the quality of the reporting for the mayor magazines. urges them to make smaller
find a new model for their will go down because of Elle, Vogue, Wallpaper, issues, and less in depth
income. In a cry for help, this. NYT reports it is they, all report the same articles are features, due to a
cutting storu
Monday 19 March 12

4. Monday 19 March 12

5. magazines: VOGUE FRANCE
2009 vs 2011
Advertising -48%
Number of pages -25%
Content pages -24%
Photo pages +23%
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6. From print to digital
Digital gains can’t make up for print losses
$
For every $1 gained
lost
in digital
a re t
$7 prin
in en ue
rev
$
$
$ $
$
* PEW Research Center’s Project for Excellence in Journalism
$ $
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7. PAID SUBSCRIPTIONS
Magazine paid subscriptions drops
1.0
2008 2009 2010
0.5
0.0
-0.5
-1.0
-1.5
* 2011 State of the News Media, Audit Bureau of Circulations, FAS-FAX report for consumer magazines
Monday 19 March 12

8. SINGLE COPIES
Single copy magazine sales keeps dropping
2008 2009 2010
0.0
-2.0
-4.0
-6.0
-8.0
-10.0
-12.0
* 2011 State of the News Media, Audit Bureau of Circulations, FAS-FAX report for consumer magazines
Monday 19 March 12

9. TIME SPENT on NEWS IN PRINT
In 2011 the time spent on print is 16%...
16%
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10. TIME SPENT on news ON LINE
...while the time spent online is 84%!
84%
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11. IPHONES
Apple forecast to sell 143M iPhones, 68M iPads in 2013
2010 2011 2013
40 MILL. 72 MILL. 143 MILL.
*Apple Reports
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12. Mobile MARKET
315 MILL.
The total amount of Apple iOs devices sold is 315 million
* Apple
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13. MOBILE MARKET
300 MILL.
The total amount of Android devices sold is 300 million
* Google
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14. MOBILE MARKET
25 MRD.
Download of apps: 35 mill/day. Every day there are 1288 apps extra.
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15. SOCIAL MARKET
172 mill.
172 mill. visits/day on Facebook. 40 mill/day on Twitter, 20 mill/day on LinkedIn
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16. APPS
In nov 2011 Instagram had reached 13mill. users in 13 months
13MILL
* Accenture
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17. APPS
5 months later it reached 27million users
27MILL
* Accenture
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18. GAMing market
67% of the Belgian population that plays games and plays an average of 5.4h/week
67%
* Games Industry.com
Monday 19 March 12

19. media consumption
Media consumption of the Belgian population in hours/week
10,6
Television 11,0
10,9
Internet 10,4
6,6
Radio 6,5
4,0
Games 3,2
1,7
Newspapers 1,2
1,1
Magazines 1,4
0 2,75 5,5 8,25 11
Male Female
* Todays Gamers
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20. 2012: “The
pivotal moment”
(Thomas Baekdal)
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21. THE PIVOTAL MOMENT
2012 everything will flip
traditional / one way / print
social / connected / digital
2011
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22. THE PIVOTAL MOMENT
2012 everything will flip
traditional / one way / print
social / connected / digital
2012
Monday 19 March 12

23. THE PIVOTAL MOMENT
2012 everything will flip
social / connected / digital
traditional / one way / print
2015
Monday 19 March 12

24. THE INTERNET EVOLVED
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25. Media:
weaknesses
&
Threats
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26. 1. we gave away our content
$
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27. 1. for free...
free
And allowed others to take over our money makers
(classifieds, ...)
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28. 2. WE LOOKED AT THE FORM
INSTEAD OF CONTENT & usability
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29. 3. the tv landscape is changing
OD
OTT, VOD, Streaming, Apple TV, Netflix, ...
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30. 4. THE ADS are drying UP
we forgot to invent a new AD model
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31. TIME SPENT VS AD SPENT
Share of Average Time Spent per Day with Select Media
by US Adults vs. US Ad Spending Share, 2011
TV
42.5%
42.2%
Internet*
25.9%
21.9%
Radio
14.6%
10.9%
Mobile
10.1%%
0.9%
Newspapers
4.0%
15.0%
Magazines
2.8%
9.7%
* eMarketer, Dec 2011
Monday 19 March 12

32. 5. we FORGOT TO focus
Gen
Gen
Gen
Z
’70/’80
baby X
boomers Gen
Y
the young people? the babyboomers?
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33. 6. we didn’t see the social coming
We underestimated the rise of social media
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34. 7. new players came along
and we let them take our markets
(News / content + classifieds)
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35. SO...
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36. THE traditional
MEDIA ARE DOOMED?
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37. OR AREN’t They?
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38. The future of publishing
by Dorling Kindersley Books
http://www.youtube.com/watch?v=Weq_sHxghcg
Monday 19 March 12

39. Media:
strenghts
&
OPPORTUNITIES
Monday 19 March 12

40. ON A GOOD NOTE
The Wall Street Journal started charging in online in 2003
Newspaper 2 Wall Street Journal
LA Times
circulation NYT
in millions
1,5
1
0,5
0
1990 1995 2000 2005 2010
Monday 19 March 12

41. FINANCIAL TIMES
50%
50% of Financial Times’s revenue is coming from it’s content & The New York Times is
growing strong in digital content sales
* Financial Times
Monday 19 March 12

42. FINANCIAL TIMES
260K
260.000 paying subscribers, from which 20% come through a mobile device,
NYT 390.000 paying subscribers
* Financial Times
Monday 19 March 12

43. OPPORTUNITY 1:
digital quality
CONTENT IS
key
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44. focus, create, enrich,
don't aggregate
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45. When everyone is being irrelevant
Entertaining Interesting Relevant Valuable
5%3% 3%
10%
26%
45%
82% 26%
YOU need to do the opposite
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46. invest in local content
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47. create a
trusted brand
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48. Connectivity-action of The Economist
Facebook
Debates Google
Tumblr
News
User Ask
Comments us
Readers
Audio Ideas
Flipboard Content Print Online Arena YouTube
Conversation On
Cloud invitation
iTunes Interaction LinkedIn
Twitter
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49. monetize
your story
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50. ADJUST YOUR ADvertising model
embedded & connected
*
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51. ADJUST YOUR ADvertising model
rethink the role of the middle men!
*
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52. DON’T FORGET THE
BABY BOOM GENERATION
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53. OPPORTUNITY 2:
It's all about
connectivity
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54. DON’t underestimate
generations X, Y, M
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55. OPPORTUNITY 3:
embrace new
players
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56. BBC / APPLE /
CONNECTIVITY ROOM
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57. conclusions
Monday 19 March 12

58. 1. Quality digital content is king
(Create, don’t aggregate, create a brand,
monetize your content, and create a new ad model)
2. It’s all about connectivity
3. Embrace the other players
Monday 19 March 12

59. We need to cooperate, put a focus on
innovation, and on local content
& niche activities (depth, opinion,
education)
Monday 19 March 12

60. Design
Architectuur Digitale animatie Kunsten
Beelden Film
Geluid
TV
Telco Electronische games Mode
Hardware
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61. We need to play the cards
of convergence:
involve gaming,
animation & other
creative activities
in media, enrich written
content with audiovisual
content
Monday 19 March 12

62. We need a coherent & supportive
government policy to make our
creative content valuable export
products
Monday 19 March 12

63. leading role for media in
flemish economy by 2020?
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64. ROLE
MIC
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65. 1. New & innovative advertising
models
(research & dev, sec screen)
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66. 2. Unique Paywall Model (shared)
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67. 3. Database Management Ad Model
(know your customer)
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68. 4. Convergence projects
(gaming, animation, tv, movies)
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69. 5. Embrace new players & new
technologies
(the Googles and Facebooks of tomorrow)
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70. 6. Projects working with new
TVmodels
(like AppleTv)
Make them an ally, not an enemy
Monday 19 March 12

71. THANK YOU
Geert Wellens
geert.wellens@econopolis.be
www.econopolis.be
@economedia
Monday 19 March 12

72. Photo & video credits:
video, slide 38
The future of publishing,
Dorling Kindersley Books
http://www.youtube.com/watch?
v=Weq_sHxghcg
slide 52
mamika.fr
slides 43, 53, 55, 57, 63, 64
maximidia
slide 54
istockphoto
Presentation
matuvu.nu
Monday 19 March 12