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Where Will the Reader Revenue Growth Come from the Coming Years?

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Where Will the Reader Revenue Growth Come from the Coming Years? Schibsted Media Consumer Business Where will the reader revenue growth come from theThe coming Next Wave years? of Subscription Business Tor Jacobsen September 25, 2019 Tor Jacobsen May 2019 Consumer Business in Schibsted Media • More than 20 brands in SWE and NO • 3,9 billion nok in revenue • 725 mnok in purely digital revenue • 1,3 million subscriptions • 770 000 digital subscriptions Consumer Business “We fund free and independent journalism by offering products and services people are willing to pay for” OUR AMBITION 1 billion NOK in purely digital reader revenues in 2020 Norway and Sweden are one of the most attractive markets 34% 27% in terms of share of people that 16% have paid for online news the last year 15% 9% 16% 11% 8% 10% 9% 7% 7% We have more than 700 000 digital-only subscribers for our 7 core brands Number of subscribers for seven core brands in Norway and Sweden 2013-2018 (Aftenposten, Bergens Tidende, Stavanger Aftenblad, Fædrelandsvennen, VG, Svenska Dagbladet and Aftonbladet) We live in a constant changing world ... Our digital transformation journey → 2014 2015-2017 2018-2019 2019 → How to monetize Sales/volume strategy. journalism? Being data driven. Get people to stay. ARPU, user and customer focus. Where will the growth come from? A shift in focus from volume to value We believe in three main drivers for the market going forward STRENGTHEN OUR PRICE AND NEW SUBSCRIPTION EXISTING PRODUCTS PACKAGING REVENUES “In the subscription business, it is all about finding new ways to deliver ongoing value to your customers that will build long-term loyalty” Zuora STRENGTHEN OUR EXISTING PRODUCTS Broader content for our users and subscribers A new destination on the front page for subscribers only A value added user experience for our subscribers We are experimenting with live rights Podcast will give us great opportunities 700 000 podcasts 29 million episodes 80 % listen through 6 ½ hours per week .. and we have started to test user payment Dynamic paywall Identify which articles that are most likely to convert and put them behind the paywall (and open up if they underperform in conversions). 70% of identified articles non premium by design 60% of premium sales came from non premium by design Schibsted for businesses: A new B2B offering Bilder fra Therese Improving user experience: Onboarding buddy Choose your onboarding buddy Customized emails based on your choice of buddy +5% Customized in-product communication Renewal rate based on your choice and product Customized content based on the subscribers digital behavior “Price is what you pay. Value is what you get.” Warren Buffett PRICE AND PACKAGING Market based pricing “Real time” input on individual price sensitivity change how we price our products. +26% ARPU increase Rethinking digital subscription products Digital ✓ To digitale brukere ✓ Alt innhold på bt.no From 2013 - ✓ BT Fordel 29.01.2019 ✓ Eavis hver dag ✓ Alt innhold på Sysla 199 NOK / month From 30.01.2019 229 NOK / month 279 NOK / month 329 NOK / month Repacking from one to four products +46% ARPU increase New digital up sale products Aftenposten Friday feature print magazine to digital subscribers for 99 NOK per month. Possibilities when combining and packaging our existing products and services “If I had asked people what they wanted, they would have said faster horses.” Henry Ford NEW SUBSCRIPTION REVENUES New subscription revenues 10% New business 20% Adjacent business 70% Core business We have some great growth enablers A portfolio of A large multiple, customer base strong brands A common, A Schibsted scalable Ecosystem platform A great A strong business organization model & broad product offering Leveraging our subscriber relationships NEW CORE ADJACENT Customer relationship Product stretch Brand stretch stretch Monetizing the core Monetizing the Monetizing the products brands customer base Free unlimited delivery Before breakfast, also during weekends Exclusive benefits STRENGTHEN OUR PRICE AND NEW SUBSCRIPTION EXISTING PRODUCTS PACKAGING REVENUES Schibsted Media Consumer Business Thank you! The Next Wave of Tor JacobsenSubscription Business [email protected] Tor Jacobsen May 2019.
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