The document introduces Zuora and its Z-Business solution for enabling Paywall 2.0 for the media industry. It discusses how the media industry is shifting from print to digital, the rise of digital paywalls, and opportunities for media companies to expand geographically, offer multi-device experiences, bundle content, and implement predictable revenue models. It then outlines how Zuora's solution provides tools for creative content monetization, multi-element subscriptions, global billing and payments, and subscriber analytics to help media companies implement these opportunities and enable the next generation of digital paywalls.
1. Introduction to Zuora &
Z-Business For Media
E n a b l i n g PAY WA L L 2 . 0 fo r t h e M e d i a I n d u st r y
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2. The Leader in Commerce, Billing and Finance
solutions for the Subscription Economy
Subscription Subscription Subscription
Commerce Billing Finance
Four+ Years of Incredible Growth
500+ customers
$82M funding
Series A; First Series B, Zuora Series C; Zuora Series Zuora wins
Zuora founded D, Trademarks
product launched featured in WSJ announces 1B in AlwaysOn Company
Subscription
contracted revenue Economy; EMEA of the Year Award; Offices:
expansion expands to Asia
Silicon
Valley, London, Sydney,
Confidential and Proprietary Information. Do not distribute beyond intended audience. Beijing, Atlanta
3. What is the
Subscription Economy?
BUY NOW SUBSCRIBE
1999 Today
By 2015, 35% of Global 2000 companies will generate revenue through
subscription-based services and revenue models.
3
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4. Businesses Can Consumers Can
Subscribe To Anything Subscribe To Anything
ServCorp Google Apps Salesforce Test Tube Wonder Sitter Spotify
Virtual Office Apps CRM Beauty Samples Baby Sitting Music
Zendesk Amazon RingCentral Rent the Babbaco Mystery Tackle
Runway Box
Helpdesk Infrastructure Phone System Women’s Kids Fishing
Dresses Toys/Activities
Dollar Shave Bespoke Spice
Workday Intacct Concur Post
Club Guides
HR GL Travel/Expense Razors Luxury Items Date Idea
4
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5. Zoura’s Customers Have Broad Industry Coverage
High Tech SaaS Cloud Infrastructure
Media Devices Telecom
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6. The Media Industry
6
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7. The Media Industry Is In Trouble
Newspapers lost $10 in print advertising for every $1
gained in online advertising
7
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8. Cost Cuts: Staff Slashed To 1978 Levels
Slide 8 − Zuora Confidential, not for distribution beyond intended recipient
9. There Is A Big Shift From Print To Digital
“Our digital subscribers now outnumber print, and digital is half of
FTs revenue”
– Financial Times 9
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10. Today: The Industry Beginning To Turn Around
…subscription …Shares of …Pearson sees
sales are Gannett, New Digital
rising faster York Income
than ad Times, McClat Beating Print
dollars are chy and E.W. Publishing…
falling…. Scripps are up
….
10
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11. Digital Magazine Revenues Predicted To Triple
Source: PEW Research Center State Of The News Media 2013
Slide 11 − Zuora Confidential, not for distribution beyond intended recipient
12. Digital Paywalls Are On The Rise
Tribune Co. 27.8 % Papers With Paywalls
Swift Communications 17.2
McClatchy Co. 16.7
Times-Shamrock 75
Dow Jones Local Media 100
Berkshire Hathaway 57.9
MediaNews-Digital First 44.1
Lee Enterprises 57.7
GateHouse Media 31.6
Gannet & Co. 72.2
46.7% of newspapers now behind a paywall
News & Tech Stats Aug 2012
Slide 12 − Zuora Confidential, not for distribution beyond intended recipient
13. Western Europe: Online Paid Content Revenue
Expected To Rise By 65%
+65% 10,2
6,2
€Billion
2012 2017
Source: Forrester Research
Slide 13 − Zuora Confidential, not for distribution beyond intended recipient
14. Bottom Line: Paywalls Can Work
Print Circulation Before Print Circulation After Paywall
Paywall
New York Times Weekday declined by 7.8% Weekday declined by 5.6%
Sunday declined by 5.3% Sunday declined by 0.1%
Wall Street Journal Paywall for 15 years Very gradual decline
Boston Globe Declined by 5.3% Sunday increased by 0.8%
Dallas Morning News Declined by 16.1% Weekday declined by 5.5%
Sunday declined by 1%
Arkansas Democrat Gazette - Weekday increased
Sunday remained steady
Source Michael Nevradakis “May The Best Paywall Win” University of Texas Austin
Paywalls show signs of positively impacting print circulation
Slide 14 − Zuora Confidential, not for distribution beyond intended recipient
15. Slide 15 − Zuora Confidential, not for distribution beyond intended recipient
16. The Next Big Challenge: Media Companies
Must Take Advantage Of 5 Key Opportunities
1. Increased geographical reach
2. Multi Device Experiences
3. Cross Content Bundling
4. Predictable Revenue Model
5. Innovative Content Monetization
16
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17. Multi-Device Experiences
Welt Group: Major newspaper brand in Germany
represented on all relevant digital platforms of
iOS, Android and Kindle
Slide 17 − Zuora Confidential, not for distribution beyond intended recipient
18. Increased geographical reach
NYT Announces Online Portuguese
Edition, Bringing Times Journalism To Readers in
Slide 18 − Zuora Confidential, not for distribution beyond intended recipient
19. Innovative Content Monetization
Pearson Plug-N-Play offers content via
APIs to third party app developers
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20. Cross Content Bundling
News International: Bundling print, web and tablet
subscriptions to The Times and the Sunday Times
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21. Predictable Revenue Model
New York Times quarterly revenue rises on
subscriber growth
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22. We Call This Paywall 2.0
22
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23. Problem: Today’s Systems
Can’t Enable Paywall 2.0
No Global Reach Product & Content Silos
Print Only/Single Device
Not Subscriber-Centric
Rigid Packaging Options
Print Simple
Circulation ERP E-Commerce
23
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24. The Industry Needs New Tools That Are Ready For …
Global Digital Commerce
Creative Content Monetization
1 Subscriber Centric Analytics
2
3
4
5
Subscription Order Management
Multi-Device Engagement
24
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25. For Media
Delivering Paywall 2.0 For The Media Industry
Creative
Global Subscription Multi Device Subscriber
Content
Commerce Mgmt Engagement Analytics
Monetization
Secure Payments Subscription Orders Product Definition Commerce Pages Subscriber Reports
Taxation Amendments Rate Plans Self Service Revenue Reports
Multi-Currency Renewals Charge Models Extensive APIs Billing & Cash Reports
Rating Audit Trail Packages & Bundles Sample Code Ad Hoc Reporting
ECOSYSTEM
CMS Systems CRM Systems Payment Gateways Accounting/GL Analytics
25
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26. Implement Creative Content Monetization Strategies
Flexible Pricing Models
Create one-
time, recurring, usage charges
Setup different subscription
plans, durations, and pricing
tiers
Manage discounts and
promotions
Track
consumption, overages, and
included units
Use Hundreds of Different
Currencies
26
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27. Deliver Cross Content Bundling With
Multi-Element Subscriptions
Subscription Bundling
Bundle multiple items on a
single subscription
Consolidate billing for
print, digital and other content
formats
Add, remove or change items
without disrupting billing
27
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28. Multi-Device And Multi-Channel Subscriber Engagement
Platform Extensibility
Create commerce pages with
point and click-tools
Use sample code libraries to
launch faster across multiple
channels and devices
Drive subscriber self-
care, including account and
subscription management
28
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29. Automate Billing And Payment Operations
On A Global Scale
Billing & Payment Automation
Multi-Currency billing and
payments
Support for over 200
currencies, major credit cards
and 9 direct debit methods
Payment exception handling
Taxation (inclusive and
exclusive)
29
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30. Measure Key Subscriber Metrics
Subscriber Reporting
Reporting on key metrics like
MRR, TCV, Churn, Renewals
Pre-built
billing, payments, subscription
and revenue reports
Ad-hoc reporting capabilities
30
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31. Z-Business Enables Key Processes Critical To Paywall 2.0
ECOSYSTEM
CRM Systems Payment Gateways Accounting/GL
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Analytics 31
32. Case Study
GROW
Pearson Plug-N-Play goes
digital and monetizes its
content in less than
30 days.
Zuora helped us to not only put in a next-generation
paywall, but has empowered us to go beyond publishing
. Tom Hall, VP Education Technology Partnerships
Confidential and Proprietary Information. Do not distribute beyond intended audience.
33. Case Study
GROW
Z-Business For Media is Fairfax’s master
subscription system.
Multiple titles such as The Age and The
Sydney Morning Herald will leverage
Zuora to increase subscriber revenues
and reduce reliance on advertising
Z-Business for Media gives us deeper insight into our
readers, helps us to forecast future their behavior and
ultimately helps us to create a better, more relevant customer
experience. Andrew Lam-Po-Tang, Chief Information Officer
Confidential and Proprietary Information. Do not distribute beyond intended audience.
34. Case Study
GROW
Zuora manages both print and
digital subscriptions for the
Times and the Sunday Times,
representing a combined
subscriber base of over 300k
subscribers.
Zuora helped us take control of our customer relationships
and, unlike other systems Z-Business for Media has been
designed around the future of subscription models, not the
past
Katie Vanneck-Smith, Chief Marketing Officer
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35. Thank You
Slide 35 − Zuora Confidential, not for distribution beyond intended recipient
Notas do Editor
Replace title with Z-Business works across all industries
Others outlets that are still around have taken to cost cutting as the way to survive. And the hardest hit resources in cost cuts are newsroom staff and journalists. But cost cutting is just an accelerator to the race to the bottom. Consumers have noticed the loss in quality journalism as a result of these measures. PEW research indicates that a third of the users that turned away from news outlets did so because they were dissatisfied with the quality of content they were getting.
And beyond newspapers, magazines are benefitting from the shift to digital as well. Digital magazine revenues are on the rise, even as print is falling
It’s not just big name brand newspapers that are adopting paywalls.A look at the hundreds of newspapers offered by the top 10 publishing houses across small, medium and large markets clearly shows how widely paywalls are taking holdAs of 2012, 46.7% of all newspapers offered by the top 10 publishers in America now have paywalls.
In Europe, there is a huge opportunity to capture online paid content revenue. Forrester predicts online paid content revenue will increase by 65% by 2017 due to an increase in customer willingness to pay for digital content like news, video, games and music.
A researcher at UT Austin researched a number of paywalls to detemine if they could potentially preserve print circulation while attracting digital subscribers.Surprisingly, he found that digital paywalls seem to have a positive impact on print circulation revenue.Prior to paywalls, many newspapers showed a sharp decline in print sicrulation.After implementing paywalls, newspapers showed a much slower rate of decline in print circulation (NYT and Dallas Morning News). And in some cases like the Boston Globe and the Arkansas Democrat Gazzette, print circulation actually increased.
The shift to digital brings opportunity. Studies show that digital consumers actually consume more news not less once they start using a mobile or tablet device to access news.31% of mobile/tablet users spend MORE time with news than they did prior to the device43% % of mobile/tablet users ADD TO THE NEWS they consume31% of mobile/tablet users turn to EVEN MORE NEWS SOURCES than they did prior to the deviceSource: PEW Research CenterState Of The News Media 2013
Axel Springer, one of the largest media companies in Europe publishes 230 newspapers, has over 160 digtial offerings and over 120 apps. Axel’s “Welt Group” which is the largest newspaper in Germany is one of the most successful adopters of interactive media experiences. It’s the first newspaper brand in Germany to be represented on all major digital devices.The WELT Group also implemented Touchcode at the end of 2011 for a specific project that aimed to bridge the gap between the offline print publication, ICON, with the online outlet, The Iconist. The printed issue included a removable business card, which when touched to the screen in its Apple iPad app, downloads a free edition of The ICONIST.
The New York Times is extending it’s reach well beyond it’s New York roots. Seeing opportunity in a growing economy, affluent readership and an international business hub, the New York Times announced that there will be an online Portuguese version to serve readers in Brazil in 2013. This DIGITAL ONLY edition will publish 30-40 articles per day from local Brazilian writers and staff. They made a similar announcement this year with a DIGITAL ONLY Chinese language edition.
Pearson is going beyond publishing, and monetizing digital content in creative ways by making their content available to app developers via APIs
News International is offering creative bundles of the times and the Sunday times with mixed print and digital offerings.
The New York Times is now building a steadily growing subscriber revenue base, which is overtaking it’s advertising revenues.