Vision of Yle News Atte Jääskeläinen Director of News and Current Affairs Yle 2012

• Budget 440 million euros

• 3100 employees

• 4 + 1 TV channels, 6 radio channels, yle.fi and other Internet services

• 20 regional radio services in Finnish, 5 in Swedish and 1 in Sámi

• 8 regional TV news broadcasts

• 98% of Finns use Yle’s services yearly, more than 70 % daily Yle News and Current affairs

News and Current affairs

Internet

Development

News center Yle Yle Yle Yle Current News Regions Sport Operations affairs

Financial HR Technologies Communications CHANGE IN TWO VAWES Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

• The number of employees went down from 4800 to 3100 • Cost level was kept at same for 11 years -> 30 pc savings in real terms

2007 2008 2009 2010 2011 2012

5 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

2007 2008 2009 2010 2011 2012

6 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

2007 2008 2009 2010 2011 2012

7 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

News: New studios, new schedules

2007 2008 2009 2010 2011 2012

8 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

Multimedia workflow

News: New studios, new schedules

2007 2008 2009 2010 2011 2012

9 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

Multimedia New production workflow system for tv and radio news

News: New studios, new schedules

2007 2008 2009 2010 2011 2012

10 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

Multimedia New production workflow system for tv and radio news

News: New New website, studios, new publishing new system schedules

2007 2008 2009 2010 2011 2012

11 First wave from 2006 to 2010: To become N:o 1 in Finland

• Vison: Yle is number one in journalism - in television, radio and internet • How to measure: Spontaneous answers among general public • Roadmap: • Balance budget: Cost-cutting forced us to find more effective ways to operate. Multimedia and co-operation • Become tri-medial: Television and radio is not enough • Make your organization into a irreplaceable competitive advantage. Acquire all rights: Own what you deliver, don t become dependent on rights-owners. Make, don t buy • Change the culture: They expect you to defend. So let s attack. To make that happen, a major change in culture is needed • Invest in added-value: Exclusivity is essential in over- crowded marketplace Who is number one in News in Finland?

60 Spontaneous 50 answers, % 40 30 20 10 2010 2011 0

YLE Uutisarvostukset 2011 The most trusted

100news organization 90 80 70 60 50 40 30 20 2010 10 2011 0

Organisations named, answers: trust ”very much” or ”rather much”

YLE Uutisarvostukset 2011 Total reach of News & Curent Affairs

Total reach rose 8 pc from 2011 to 2012 100 90 8 80

70 28 60

50 weekly 89 40 daily 30 54 20 10 0 % of Finns under 45 over 45 6.11.2012 Second wave: From 2010 to 2015 To become world-class • Vision: The World-Class producer of public service journalism • More focus on value: The troubles of news industry are at the heart of what we do • Create value! Exclusivity in the core areas of value creation • More elements to create differentiation with our strenghts • Domestic network – live • International network – live • Make social media and UGC tools to create good content • New brave ways to make internet more relevant and interesting • We re big, we re relevant. So let s show it Strategy safari in broadcasting

• First: Understand your business • Where s the value in todays news business? • Second: Create an inspiring vision • But don t think that vision will become a reality without clear strategy – a roadmap of measureable targets • Third: Take care of Management first • Without clear, straightforward management there s no room for leadership in news organizations • Fourth: Think and understand people • Heavy-weight tools for heavyweight problems Tools used

• Strategic management • Bring consultants to the boardroom, not to the newsroom • Don t hesitate to talk about the strategy • Strategy games for all teams and personnel • Clear measureable targets • Balanced scorecard & rewards for the whole personnel • Leadership training & tools • Analyzed leadership styles & competences • Personnel questionaries: Several times/year. • Conclusions drawn • Management changes • Personnel changes • Lead the change • Re-organizing as catalyst for change • New workflows as catalyst for change • Communication: New technologies, possibilities to take part in the conversation Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

Current affairs Multimedia merged with New production workflow news system for tv and radio news

News: New New website, studios, new publishing new system schedules

2007 2008 2009 2010 2011 2012

19 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news

Own news agency started

Current affairs Multimedia merged with New production workflow news system for tv and radio news

News: News Center: New New website, Coordination of studios, new publishing all journalistic new system content schedules

2007 2008 2009 2010 2011 2012

20 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news Studio automation, renewal of control rooms Own news agency started

Current affairs Multimedia merged with New production workflow news system for tv and radio news

News: News Center: New New website, Coordination of studios, new publishing all journalistic new system content schedules

2007 2008 2009 2010 2011 2012

21 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news Studio automation, renewal of control rooms Own news agency started

Current affairs Multimedia merged with New production workflow news system for tv and radio news

News: News Center: New New website, Coordination of studios, new publishing all journalistic New concept: new system content CA @ 21 schedules

2007 2008 2009 2010 2011 2012

22 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news Studio automation, renewal of control rooms Own news agency started

Current affairs Multimedia merged with New production New workflow news system for tv and website, radio news upgrade of publishing platform News: News Center: New New website, Coordination of studios, new publishing all journalistic New concept: new system content CA @ 21 schedules

2007 2008 2009 2010 2011 2012

23 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

Merging of tv and radio news Studio automation, New renewal of control audio- rooms Own news visual agency identity, started corporate wide news brand Current affairs Multimedia merged with New production New workflow news system for tv and website, radio news upgrade of publishing platform News: News Center: New New website, Coordination of studios, new publishing all journalistic New concept: new system content CA @ 21 schedules

2007 2008 2009 2010 2011 2012

24 Two waves of change in Yle News & Current Affairs

Cutting the costs and the number of personnel

2007 2008 2009 2010 2011 2012

25 Radio Current Affairs Business

Foreign Radio specialists Politics Correspondent Radio s

Internet Core: Text-based news Direct specialists agency for specialists Culture information sharing

Internet Television

Television TV Current Domestic specialists Affairs

Regions The fast The fancy

Internet News Sport Internet DEV TEAM NOW NOW PLUS Teletext Uutis- deski

Front page

Vision for Yle News 2015

YLE News is number one in Finland.

It is the most reliable and fastest news provider.

It is the first to comprehend what is essential, and explains it thoroughly.

It is close to people, all over Finland.

It supports democracy by sustaining diverse and critical discussion.

It acts in a brave way and always appreciates the human being. Vision for Yle News Brand 2015

YLE News brand is number one in Finland. Brand is made alive Itandis the distinguishable most reliable and fastestby news service. It is1. theAction first to comprehend what is essential, and explains it thoroughly. It is close(journalismto people, all&over otherFinland.behavior) It supports2. Branddemocracyarchitectureby sustaining diverse and critical (discussionproduct. names) It acts in a brave way and always appreciates the human3. Audiovisualbeing. identity (look & feel) Vision for Yle News Brand 2015

YLE News brand is number one in Finland. BrandAll audiovisualis made aliveelementsand Itdistinguishableofis newsthe most brandreliable areandby fastestdesignednews service. It is1. theAction first to comprehend what is essential, and explainsto supportit thoroughly. Itnewis close journalistic(journalismto people, all&overexpression behaviorFinland.) : ItWsupportsarmer2. Brand,democracy morearchitecturegenuineby sustaining, diverse and critical (discussionproduct. names) Itmoreacts ininteresting a brave way and, more always attractiveappreciates the. humanOn3. allAudiovisualbeingplatforms. : identity tv, radio,(look web & feel, mobile…) VALUE PROBLEM Robert G. Picard: Value creation and news organizations Advertising

Demand Supply

Advertiser Media Consumer

Supply Demand

Attention Advertising

Demand SupplyLabor market Political Economic

Sociopolitical arena Capital market

Media organization Advertiser Media Consumer Media good market

Public / Audience

Citizens Consumers

Ideological arena Audience market Supply DemandCultural

Moralnorms / cultural norms /cultural preferences

Attention Advertising

Demand Supply

Advertiser Media Consumer

Supply Demand

Attention

Supply coordinates demand on both sides of a two-sided market and sets equilibrium prices. Unlike in other markets, in the media marketplace, attention is a critical part of the value chain, because it is demanded by advertisers and supplied by consumers. On the other side of the two-side market, production is demanded by consumers and supplied (funded) by advertisers. (Umair Haque) Labor market Political Economic

Sociopolitical arena Capital market

Media organization

Media good market

Public / Audience Citizens Consumers

Ideological arena Audience market Cultural Moralnorms / cultural norms / cultural preferences

Marko Ala-Fossi: Culture and Quality in Broadcast Media: Market Dynamics and Organizational Dependencies Mainonta

Kysyntä Labor market Political Economic

Sociopolitical arena Capital market

Media organization

Mainostaja Media good market

Public / Audience

Citizens Consumers

Ideological arena Audience market Cultural

Tarjonta Moralnorms / cultural norms /cultural preferences

Huomio Some thoughts about the future

• Journalism will be oversupplied and the marketplace will be ”red ocean”. Public Service has to find its ”blue area” in that ocean • There will be fewer major players, consolidation will continue. Yle will face competition from companies bigger than itself • The crisis on the ability to create value in journalism has to be taken seriously: All efforts have to aim in increasing value • To individual citizens • To the society as a whole • All content or services have to have an exclusive component • Innovative new service models have to be explored Some thoughts about the future

• Trust is the cornerstone of our mandate to make selections on behalf of the individuals. Any effort which endangers our credibility is automatically out of toolbox.

• The major fight will take place in the political arena: If commercially-funded journalism is weakening, what will happen to us? • The others are weaker, Yle has to be weaker as well • The others are not able to bear the responsibility, so let s hope Yle will do CULTURE: OPEN AND EFFECTIVE Effective communication: The New News Center Open communication: The News ”Market Square” ”WINNING IS FUN.

LOSING IS NO FUN.”

Jaakko Rauramo, Chairman of Sanoma Corporation