Presentatie van Erik Brouwer tijdens het Cross Media Cafe Nieuwe Uitgeefconcepten (27 maart).

1. www.pwc.nl
Schuivende
businessmodellen
Erik Brouwer
Cross Media Café, Hilversum
27 March 2012
Erik.brouwer@nl.pwc.com
0031 651317003

2. This is the time for new publishing strategies.
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3. Interesting digital propositions
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4
2
5
3
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4. The consumer wants to go digital but finds the content insufficiently
differentiated Recommendation 1: Make use of the possibilities to differentiate with
content between print and digital and make them complementary
Finding
Consumer still sees print and digital Do you intend to switch from a printed newspaper to an e-paper in
products as substitutes the future?
More than a third of the interviewed
Already Yes
consumers (38%) does not expect to shift to an
switched 8%
e-paper. The remainder of the consumers 15%
(62%) does consider a move from print to
digital.
Will continue
Only a minority of the consumers (12%) wishes
to read both
to continue both the printed version and the 12%
e-paper. This proves that a majority does not no
consider printed and digital content as 38%
complementary and does not see added value
in continuing to subscribe to both print and
digital products.
maybe
27%
Survey FD, selection respondents. Total # respondents = 2.255
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5. The consumer is often insufficiently aware of the differentiating capacity
Recommendation 4: Improve promotion of uniqueness of digital propositions to consumers
Finding
The consumer expects the price of digital How much do the following features contribute to the appeal of a
content to be lower than print digital tablet magazine?
Consumers indicate that they expect digital Lower price than paper version
content to be cheaper than print. A lower price Definitely not
raises the appeal of the digital proposition. Not appealing appealing
2% 2%
The consumer is therefore not (yet) aware of Very
the fact that digital content can have added appealing
value as opposed to printed content. Neutral 31%
18%
The added value of digital content needs to be
promoted to the consumer by clear and
transparent communication about the digital
proposition
Appealing
47%
Survey Sanoma, selection respondents. Total # respondents = 6.664
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6. The consumer values the newspaper brand
Recommendation 5: Introduce product bundles in line with the differentiating capacity of
the content or the (manner of) news consumption
Finding
Brand can be utilized to offer bundled If you would receive a free tablet with a digital newspaper
subscriptions subscription, would you be interested?
A group of consumers is interested in bundled
subscriptions of newspaper and tablet. The
consumer considers the tablet a medium of
interest for news consumption. Yes
34%
Of the potentially interested more than half
(55%) indicates that the publisher is the logical Maybe
supplier of bundled subscriptions of 46%
newspapers and tablets.
No
20%
Survey TMG, selection respondents. Total # respondents = 1.001
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7. Insight into migration of subscribers between print and digital is crucial
Recommendation 8: Strike a balance between pricing of paid print and digital propositions
Finding
Specific target audiences show clear Migration behavior Total, Digital and website proposition
preferences for print, digital and
Composition subscriber base at change of pricing
bundled propositions (print and digital)
Total subscription (print + digital)
The research shows that pricing of the various Core customer base digital Large part of Total Part will migrate to
subscriptions will not migrate subscribers will cancel digital or website
propositions (print, digital and bundled) can to to Total despite price reduction subscription at price subscription at price
a certain extent influence migration of increase increase of total
Current demand
subscription
customers between these propositions.
100
Q FD.nl subscribers
# Website
At the same time we can distinguish distinct
Q FD Digitaal
# Digital subscribers
client segments within the wider target
Q FD Totaal
# Total subscribers
audience with a clear preference for
print, digital or a combination of both. These
consumers will not easily switch from print to
digital and vice versa.
100
Current price
Survey FD, selection respondents. Total # respondents = 2.255
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8. Consumer still hesitant about long-term payment relationship for digital
propositions Recommendation 9: Research opportunities for differentiation in
subscription forms and payment relationships (print and digital)
Finding
Large part of consumers prefers single
purchases and single payment Suppose the app would be provided as ‘paid only’, which
distribution format would you then prefer for your ideal financial
The research shows that a large part of news application?
consumers for the present does not wish to enter
into long term payment relationships
(subscriptions) for apps.
Single-stage
There is still a clear preference for single amount
payment for the app, or single payments for 39%
individual issues (magazines on app). Not willing
to pay
54%
Monthly
subscription
Possibility 3%
to pay per
day
4%
Survey TMG, selection respondents. Total # respondents = 453
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9. Recap. The 10 commandments for the newspaper
and magazine industry
I. Further enhance differentiating capacity
1. Make use of the possibilities to differentiate with content between print and digital and make them complementary.
2. Focus on the content that differentiates you from competitors and utilize brand value to build a payment relationship
with consumers
II. Make optimum use of the possibilites of digital distribution channels
3. Disclose (unique) content through smart phones and tablets, and exploit technological possibilities even more
4. Improve promotion of uniqueness of digital propositions to consumers
III. Design new product combinations
5. Introduce product bundles in line with the differentiating capacity of the content or the (manner of) news
consumption
6. Form alliances with providers of products and services, and make ‘pay-per-transaction’ agreements
IV. Redefine products and services and set the right prices
7. Strike a balance between free general content and paid unique content
8. Strike a balance between pricing of paid print and digital propositions
9. Research opportunities for differentiation in subscription forms and payment relationships
10. Obtain better insight into actual costs and profits (per customer)
Stimuleringsfonds voor de Pers
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10. Our commitment to Digital: capturing the key
dynamics of the global digital economy by our annual
Global Entertainment and Media Outlook
PwC’s annual Global and Entertainment Outlook
PwC's annual Global Entertainment and Media Outlook is a
consistent, comprehensive online source of global analysis for
consumer/end-user and advertising spending. With like-for-like, five-
year historical and forecast data across 13 industry segments in 48
countries, the Outlook makes it easy to compare and contrast regional
growth rates and consumer and advertising spend.
Internet access spending Consumer magazine publishing
Internet advertising Newspaper publishing
TV subscriptions and license fees Radio
Television advertising Out-of-home advertising
Recorded music Consumer and educational book
publishing
Filmed entertainment
Business-to-business
Video games
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11. Thank you for your attention
Prof. dr. Erik Brouwer
Director
erik.brouwer@nl.pwc.com
+31 88 792 76 80
+316 513 17 003
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