Digital production in the newspaper industry.

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Digital production in the newspaper industry.
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CELEBRATION!

• 400th anniversary
• of the newspaper

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CONGRATULATIONS?
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Whats going on?

• Renaissance.

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New things
Tabloid
Editions
PDF
Compact
Formats
Context
Versioning
Renaissance.
Products
Sections
KOMPACT
Miniaturisation
Segmentation
Content
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Renaissance Size matters
?
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Renaissance Size matters

• The Independent launched tabloid version
  September 2003
• The Times launched tabloid version in November
  2003
• Both titles now fully tabloid.
• Dual format strategy easier to get into than
  out of.
• Success has inspired over 50 other newspapers to
  become smaller.

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Renaissance Growth in tabloid share of titles
continuing
100
90
80
57.0
70
61.6
64.4
66.1
67.2
66.6
60
50
40
4.4
4.4
2.5
2.5
2.4
2.3
30
20
38.6
33.1
34.0
31.4
30.5
31.0
10
0
1999
2000
2001
2002
2003
2004 est
tabloid
other
Broadsheet
includes Swedish titles scheduled to change in
first half of 2005
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(No Transcript)
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Renaissance The Metro phenomenon

• Over 130 titles worldwide
• 15 million copies
• Encouraging next generation of readership
• Evidence emerging of spin-off benefit for
  paid-for newspapers
• Reader per copy levels of 2.1 (in Europe)

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Renaissance Media Free Time
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Renaissance The Metro phenomenon
16000
14000
Others
12000
Metro
10000
8000
6000
4000
2000
0
lt94
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
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Renaissance Metro International

• Metro International
• 37 Editions are published 16 countries,
• 15 languages in 50 cities worldwide.
• 5.2 million copies
• The worlds third largest newspaper
• Could be the biggest title in USA during 2005.
  
• 1Billion market capitalisation
• Now selling international advertising packages
• Mitsubishi 7 countries
• British Airways - 4 countries

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Renaissance Alternative distribution
Retained revenues after costs to market
100
80
87
60
40
32
20
0
Circulation
Advertising

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Renaissance Alternative distribution

• Many papers fail to retain contribution from
  their cover price
• Costs to market far exceed revenue
• High levels of churn require remarketing
• New newspapers are finding better value audiences
  at lower cost
• Free access in line with other news services.

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Renaissance Alternative formats
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Renaissance New content models emerging
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RenaissanceThe drivers
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Renaissance Internationalisation

• Companies looking overseas for corporate growth
• Local editionising of international brands

• Newspapers seeking expats and travellers
• International partnerships of national titles

• AOL Time Warner
• Bertlesman
• Bauer
• CanWest
• Gannett

• Alma
• Shibsted
• Bonnier
• Burda
• Forbes

• GJ
• Hachette
• MTV
• News Corp
• Vivendi.

• Australian Consolidated
• Independent News and Media
• Modern Times Group
• Mondadori (Fininvest)
• Sanoma

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Renaissance Internationalisation
Source Boeing market outlook 2004
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Renaissance Internationalisation

• Today around 4 of national newspaper sales are
  foreign
• If sales grow in line with internationalisation,
  this will rise to 10

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Renaissance Internationalisation
Source Boeing market outlook 2004
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RenaissanceNewspapers the mass medium

• In 1994 there were 40 tradable TV stations in the
  UK.
• Today there are 250.
• In 2014 this is expected to be in the region of
  400.
• Will newspapers become the new mass medium?

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RenaissanceNewspapers the sustainable medium

• In 1994 the UKs News at 10 enjoyed an audience
  of 6.6m. Today it is 3.3m.
• In 1994 ITV enjoyed a share of TV audience of
  39.5. Today that figure is 23.6.
• All this content is free of charge.

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RenaissancePortfolio management
Boston Consulting Group
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Renaissance Portfolio management
Market Performance
Relative market share
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Optimise your product offer Newspapers at a
crossroads
Direct
Digital
?
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Digital publishingThe publishing model
Gather content
Package
Distribution
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Digital publishing Traditional publishing model
Gather content
Publisher control
Package
Distribution
Advertiser control 0
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Digital publishing Mixed media publishing model
Gather content
Publisher control
Print
Consumer control
Distribute
Package
Advertiser control 30?
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Digital publishing Ubiquitous publishing model
Competition
Aggregate
Publisher control
Consumer control
Distribute
Print
Package
Co-operation
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Digital publishing Ubiquitous publishing model
Aggregate
Print
Package
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Digital publishing Ubiquitous publishing model
News
Third Party
Dynamic archive
Aggregation
Automated serving
Print
Digital
PDF
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Digital publishing Ubiquitous publishing model
News
Third Party
Private content
Aggregation
Automated presentation
Print
Digital
Multiple
PDF
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• Over 2000
• PDF newspapers worldwide

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Contextual publishing

• Media in time
• and place

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Time and placeThe digital arena
WORLD
Traditional print
Digital printing space
Océ
My interests
Home printer
ME
My location
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Time and placeThe value of a reader
Advertising off-take
Circulation off-take
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Time and placeCirculation advertising
contribution
40
Time and placeThe value of a read copy
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Time and placeSectioning

• Supplements we publish
• Motors
• Property
• Jobs
• Business
• Travel

• Supplements we dont publish
• High Fashion
• Kitchen
• Sailing
• Skiing
• Cruise holidays

• Supplements we wont publish
• Motors
• Property
• Jobs
• Business
• Travel

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Time and placeYields diminish as circulations
grow
Relationship between rate, yield and circulation
450
400
350
300
250
200
150
100
50
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1600
1700
2000
2100
2200
1300
1400
1500
1800
1900
Rate / 000
Page yield
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Time and placeYields increase as value grows
Advertising revenue
Price
Volume
Size of audience
Worth of audience
Need to advertise
Worth of audience
Need to advertise
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Time and placeThe value of the non-reader
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Time and placeReaching the non-reader via digital

• Tailored and targeted sections.
• Exploit specific interests
• Exploit low costs of postal distribution
• Identify alternative points of concentration

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Time and placeDeurbanisation project
4
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Time and placeBusiness opportunity

• Distribution time saved
• Copy sales opportunity
• Distribution cost saving
• Local advertising premium
• Local content benefit
• Distribution cost benefit gt 10
• Copy opportunity gt 20
• Revenue benefit ?

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About costs..
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Digital publishingPerspectives
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Digital publishing Say digital can increase
response by 50

• Better targeting of advertisers
• Printing closer to the consumer
• Better context - time and place
• Opportunity to link message to market and medium

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Digital publishingSay digital can increase
response by 50
100
90
80
70
60
50
40
30
20
10
0
Inky
Paper
Ink
Labour etc
Depreciation
52
Digital publishingSay digital can increase
response by 50
100
90
80
70
60
50
40
30
20
10
0
Inky
Oce
Paper
Ink
Labour etc
Depreciation
Digital costs
Ad sales costs
53
Digital publishingSay digital can increase
response by 50
100
90
80
70
60
50
40
30
20
10
0
Inky
Oce
Account
Paper
Ink
Labour etc
Depreciation
Digital costs
Ad sales costs
54
Digital publishingSay digital can increase
response by 50
100
90
80
70
60
50
40
30
20
10
0
Inky
Oce
Account
Ad Man
Paper
Ink
Labour etc
Depreciation
Digital costs
Ad sales costs
Ad revenue
55
Digital publishingSay digital can increase
response by 50
100
90
80
70
60
50
40
30
20
10
0
Inky
Oce
Account
Ad Man
Happy
advertiser
Paper
Ink
Labour etc
Depreciation
Digital costs
Ad sales costs
Ad revenue
Sales
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Digital publishingSay digital can increase
response by 50
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Digital publishing Say digital can increase
response by 50
Incremental customer benefit
Incremental business cost
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Applications of digital printing

• Inserted foreign sections into newspapers with
  immigrant communities
• Incremental content into out-of-market copies
• Industry specific editions
• Event specific products
• Personal sections in partnership with quality
  newspapers
• Airline editions
• By airline
• By route
• By flight

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Strategies for growth

• Digital newspaper readers are a market
• Work with your competitors.
• 100 copies of one newspaper is 100 copies.
• 1000 copies of ten newspapers is a market.
• 6,000 copies a week is an audience.
• The Guardian in Munich is convenient.
• The Guardians guide to Munich is to die for.
• Todays opportunity is tomorrows loyalty

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If I were partnering OcéId be

• Opening across Europe, Asia, South America
• There is an explosion in international travel.
• Hiring an advertising sales house
• Digital print readers are mega value
• Digital print readers have needs
• Identifying local opportunities
• Editions
• Sections
• Locations

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Thank you
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Digital publishing Digital differentation

• Content creation

• Content consumption

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Digital publishingPerspectives
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Digital publishingSay digital can increase
response by 50