The Next Wave of Subscription Business
INMA Media Innovation Week Tor Jacobsen – SVP Consumer, Schibsted Media September 26th 2018 Consumer Business in Schibsted ● More than 20 brands In NO and SWE ● 3,5 billion nok in revenue Intro● 700 om mnok Consumerin purely digital Business revenue Consumer ● 1,2 million subscriptions Business ● 700 000 digital subscriptions
2 It was obvious that digital advertising alone would not provide a sustainable business model We see a significant grow in our digital subscription revenue. Today we have 700 000 + digital-only subscribers
*
Number of subscribers for seven core brands in Norway and Sweden 2013-2018* (Aftenposten, Bergens Tidende, Stavanger Aftenblad, Fædrelandsvennen, VG, Svenska Dagbladet og Aftonbladet) We have seen a tremendous shift in our revenue streams the last couple of years Norway and Sweden are attractive markets 30% 26% in terms of number people that 18% have paid for online news the last year 15%
7% 16% 14% 8%
11% 12%
11% 6% OUR AMBITION We are on our way towards 1 billion NOK in purely digital revenues in 2020 Where we are today..
→ 2014 2015-2017 2018-2019 2020-2025 How to monetize Sales/volume strategy. Get people to stay. Where do we go journalism? Being data driven. from here? Engagement. 2018: Main objectives for continuous growth
GROWTH VALUE PROPOSITION ENGAGEMENT COLLABORATION Grow number of Strengthen the customer Increase engagement, Create a collaborative, paying users value proposition through strengthen user habits and customer- and data driven editorial, business and stickiness team, scaling successes product development GROWTH
10 Campaigns: Boosting our sub base, but create churn
VALUE PROPOSITION VALUE 13 The customers has limited knowledge about our paid product
17%
Documentaries Exclusive content In-depth articles I don’t know
Brand tracker Goal VG+ is more of what you love with VG
DOCUMENTARIES
CONSUMER + + SPORT
+ + ENTERTAINMENT + +
NEWS LIFESTYLE Tagging of articles ...
... with a goal to present the wide range of content more clearly Before After
ENGAGEMENT
19 From sales to lasting relationships We have spent 3-4 years on learning how to sell and “harvest” sleeping potential for growth. Going forward we need to change our mindset. It used to be simple ...
Day 1 Day 30 … it has become more complicated Focus: Increase engagement and reduce churn
Welcome conversation Personalized newsletters Onboarding based on article Order of newsletter on receipt page Personalized onboarding Sharing of locked articles Onboarding buddy Debate B2B onboarding Smart retention Service calls to new customers Get to know the journalists Welcome event for new subscribers Touchpoints Physical meetings with customers Touchpoints on articles VIP events for subscribers Touchpoint via Eloqua Friend sharing Widget on front Differentiated pricing Gamification Family sharing on receipt page Daily editorial service Cooperation with “Morgenlevering” Show benefits of the loyalty program Onboarding based on article Family sharing on receipt page Touchpoints: Show the right message to the right user to the right time
Antistop Winback Vacation COLLABORATION
27 Data & analytics Finance
Single copy sales
Operations
Support Knowledge sharing Innovation Print & distribution Predictive analytics Identify who are likely to buy and who are likely to churn, and use this to optimize the business. Individual fingerprints Fingerprint Aggregated reading history in VG generates unique “fingerprints” for each user. These are used to predict user-traits and give personalized content. Articles
Before: 0,53
After: 0,86 Market based pricing “Real time” input on individual price sensitivity change how we price our products. Looking towards 2025..
→ 2014 2015-2017 2018-2019 2020-2025 How to monetize Sales/volume strategy. Get people to stay. Where do we go journalism? Being data driven. Engagement. from here? The long term online growth challenge The importance of strong brands A value added user experience you are willing to pay for The evolution of the editorial product
• Services as journalism • Video and audio • Information overload • New technologies The end user doesn’t have to be the one who pays Increase average revenue per user (ARPU)
ADD-ON SERVICES Offer other services to our customers, including e-commerce, travel and learning.
REWARD PROGRAMS Use our existing reward programs to offer other products and services directly to our customers.
VALUE ADDED USER EXPERIENCE Offer a clearly defined paid experience.
BUNDLING Develop different bundles and pricing strategies for different audiences.
AD-FREE Offer add-free as default for paying subscribers, for some of our products.
Thank you! Tor Jacobsen [email protected]