Zap2it/ Case Study

Date Class December 9, 2001 Design Planning Workshop

Team Colleen Murray Dionne Smith Ha Jeong Noh Karen Scanlan April Starr Zhukai Zhang Contents

Overview 03

Background 04 History Zap2it Today

Design at Zap2it 08 Design Scenario Conclusions

Insights & Recommendations Logo Deconstruction 10 Web Site Deconstruction Future of Listings, Content & Advertising User Centered Design

December 9, 2001 page 2 Overview

Traditionally, the case study method is applied much like a microscope to an organization’s activities. Each element in the structure is examined with a keen eye set on discovering patterns--patterns magnified by the power of the lens. This case study attempts to perform just such an exacting search. However, the research team was equipped with a lens directed 2200 miles away from the subject. And the reader should allow the contents of this document to unfold bearing that minor constraint in mind.

Despite such challenging circumstances, we were privileged to have worked with a truly gra- cious group of “subjects,” without whom this case study would not have been possible. We would like to thank the following individuals for taking time out of their very busy schedules to participate in our surveys and interviews. Andre Alforque Greg Baerg Clark Bender Brill Bundy Mike Fischer Andrew Rodgers Jeff Rowe Vanessa Sibbal Mike Sikes Mike Szymanski Mary Ver Plank Mark Yamada

Your enthusiasm, responses and insights proved extremely valuable. We hope that you find your time was well spent.

We would like to send a special thank you to Barbara Needlemen for granting us access to her organization and providing the link between our team and the Zap2It crew in Santa Monica, California.

December 9, 2001 page 3 Background/History

Zap2it is a part of the Tribune Media Services (TMS), an organization within the Publishing group of the Tribune Company. TMS has two groups: News/Features and Entertainment Products. Zap2it is a company within the Entertainment Products group. The Entertainment Products sector is concerned with syndicating entertainment content and data (movie and television listings).

The Tribune Company

Broadcasting Publishing Interactive

Tribune Media Services

News & features Entertainment products

Zap2it

Up until the 1970s, newspapers did not provide television listings. In the 1970s Torrington TV Data (Torrington) was formed to provide standard TV listings data for newspapers. TMS had relationships with newspapers, and Torrington had the data. So in 1982, TMS partnered with Torrington, Torrington collected the raw listings data and customized it for newspapers while TMS provided sales and marketing support.

The introduction of cable television changed the needs for TV listings data due to increased channels and programming. In 1985 TMS bought Torrington and a company called TV Log. TV Log was the first company to sell embedded advertising in rolling logs, which were television listings in a newspaper column format. The advertising in rolling logs was a three to four line program listing in bold type. This type of advertising proved extremely successful. Armed with this successful product and a new sales staff, TMS eventually cornered the leading newspaper market.

Around the same time USA Today launched their newspaper and TMS helped develop the listings grid (which has since become a standard). This grid was on the backside of the newspaper. This increased the visibility of the listings, and readers found this new visual format easier to read. Furthermore, newspapers liked this format because it maximized space.

In 1989 Rupert Murdoch purchased TV Guide in order to promote the newly broadcast Fox channel. Soon, other networks were frustrated with the slanted editorials of TV Guide. Newspapers recognized these frustrations and created television books as a supplement to the Sunday editions of their papers. These television books gave the networks another channel to reach viewers.

By 1990 TMS’ TV Week Network (which provided advertising, data, and production of television books for newspapers) was generating ten million dollars in revenue.

December 9, 2001 page 4

Background/History

In 1992 TMS created the Premium Grid Network as more newspapers were adopting the grid format over the rolling logs. These grids included a large ad space at the bottom of the grid as well as bolded listings similar to the rolling logs. The allowance for additional ad space in the grid allowed for increased advertising sales for TMS.

delivery channel: newspapers cable books/newspaper inserts television, internet, interactive broadcast guides

?

rolling logs rolling logs with grid listings grid listings with ads web listings with ads the future of listings embedded ads

In 1999 TMS bought JDTV, a company which provided print cable guides and PDI which provided movie data listings. This extended TMS’s offering beyond television listings and into movie listings, beyond newspaper television print guides and into cable print guides. At this time TMS bought TVQuest, Ultimate TV and MovieQuest. This allowed TMS to provide products and services directly to consumers.

In 2000 TMS bought ISI/Canada which created interactive software mainly for broadcast program guides. At this time, TMS integrated TVQuest, Ultimate TV and MovieQuest into Zap2it, a unified brand and consumer offering. For TMS, the strategy was to create a sales and marketing platform to drive advertising sales. This created dual revenue streams, through syndication of listings to the B2B market and advertising via the B2C market.

B2B TMS C B2

December 9, 2001 page 5

Background/Zap2it Today

Zap2it Brand TMS created the Zap2it brand as a vehicle to reach entertainment consumers. Its development better positioned TMS to target the following objectives: to increase TMS leverage in the entertainment industry, to augment advertising revenue and marketing effectiveness, and finally, to differentiate the product as a premium, recognizable brand. provides consumer awareness of Zap2it brand The Zap2it branding strategy was threefold. Increasing consumer awareness would spur to build advertising & data demand for the Zap2it product; this, in turn, would lead to greater industry awareness and sales for TMS increased B2B sales. The brand, as a cohesive whole, would create a more compelling environment for advertisers to efficiently deliver their message. The now focused resources of the Zap2it brand would create farther reach, greater frequency of use and more potent brand recall, which would feed back into greater consumer awareness.

TMS Zap2it TMS chose the Zap2it name to convey key characteristics. Convenience and ease of use were identified to be crucial benefits to consumers of entertainment information. TheZap2it name, with its “call to action,” represented these benefits. In addition, the name allowed for creative advertising and promotion opportunities that could enhance brand recognition, and, unlike provides sales, support, its competitor TV Guide, Zap2it would be well positioned to become an entertainment portal beyond TV, to include print and interactive channels as well. data (listings,) Tribune circulation & customers, Zap2it Mission Tribune brand awareness The TMS core competency for producing and distributing information was leveraged to establish the Zap2it mission: to produce and deliver the most comprehensive multi-media information to industry leaders and consumers, through multiple channels of distribution, to include online, print, and onscreen. Zap2it aimed to become synonymous with a broader definition of entertainment information, and be a credible alternative to other national entertainment brands, such as TV Guide and E! Online.

Zap2it Products and Distribution Zap2it Entertainment products consist of TV & Movie information, editorials written by staff Advertising 30% writers, listings data, entertainment news and advertising sales. Syndication of editorial and listing products represent the largest source of revenue. The goal, however, is to have 70% Syndication advertising be the primary source of revenue.

The Zap2it TV & Movie information products feed directly to the Zap2it.com Web site, a consumer destination site that serves as a one-stop guide to listings, events, headlines, and feature stories segmented into TV, Movies and Internet. Affiliate Web sites have the option to purchase Zap2it listings; they may either be co-branded or customized. Branding initiatives represents the third Zap2it product category. These initiatives consist of Zap2it branded data sales, entertainment guides, and on-screen & electronic program guides.

Zap2it content is distributed across multiple media platforms to maximize revenue. The online distribution channel, via Zap2it.com, provides TV & Movie listings to over 380 affiliate partners, including LA Times, NY Times, and Yahoo!. Zap2it distributes print information through KnightRidder/Tribune Services to newspapers that include San Francisco Chronicle, Boston Globe and The Washington Post.

Zap2it Challenges and Goals Zap2it has plans to unify its database to create a data engine that integrates editorial, raw data, multimedia and e-commerce elements. This will create unique and efficient access features for Zap2it and also distinct output data and information content.

December 9, 2001 page 6

Background/Zap2it Today

Challenges and long term goals for Zap2it have been clearly identified: to become profitable through increased advertising revenues, syndication revenues, and stronger affiliate ties; and to compete successfully against established entertainment brands. This Zap2it reports as a particularly difficult challenge, but one that they are actively pursing. According to Barbara Needleman, Vice President of Entertainment Products at TMS, the ability to cross-link informa- tion resources, to take a more “newsy content approach” and to overall place a “listing mentality” over the competitors will allow Zap2it to meet this challenge. Lastly, by Q4 2003, Zap2it wants to be the #1 entertainment service by beating out each of their top competitors: TV Guide, E! Online, MovieFone, Entertainment Weekly, and Hollywood.com

Zap2it Organization structure The Zap2it structure is one that gathers data and feeds it through various channels directly to the customer. TMS offices in Glens Falls, NY, Golden, CO, and Chicago each supply Zap2it data, information and business support. This infrastructure and the strong history of The Tribune is an asset that sets Zap2it apart from its competitors.

television movie data data

Sales/Marketing Business Development TMS Zap2it Finance Technology newspaper cable onscreen online guides guides

customer

December 9, 2001 page 7 Design at Zap2it/Design Scenario

Mike Fischer, Ad Sales Manager for TMS Entertainment Products, had just finished running through his sales pitch with John Piper, Marketing Director for ESPN2. It seemed that John was hesitant about buying ad space with Zap2it. ESPN2 was launching a new extreme sports/adventure show, and wanted to create some hype around the premiere episode. “I’m thinking that I should go with TV Guide. The Zap2it TV books just seem a bit too old and stodgy for the young, hip crowd I’m trying to attract with this show,” John explained. “I’m also concerned about partnering with an online entertainment source that has only been around for one year. I’d really have more confidence in someone with a more established name.” John went on to explain that ideally, he would also like to work with someone who could develop a special mini Web site to link to ESPN2 and promote his new show. He had a number of ideas for innovative interactive games and events to keep his audience interested in the show and coming back to the site. It seemed that John was hesitant about buying ad space with Zap2it.

Mike knew exactly how to respond to John’s hesitation. “Zap2it’s parent company, Tribune Media Services, is a well established brand that provides TV and movie listings for industry leaders such as the New York Times, LA Times and USA Today. In addition, our circulation is much larger in the Nielsen markets than TV Guide.” Once John knew this, he changed his mind about buying ad space in the Sunday TV listings books. He still, however, was not convinced about Zap2it’s online presence. “I’ll have to think about the Web site a bit more before I make a decision,” John said as the meeting ended. Mike departed, happy that he had made a sale, but remained concerned over the issues John raised brought up concerning the Web site. He had heard similar sentiments from other clients. On the drive home, he decided he would call Jeff Rowe, Zap2it’s General Manager, to discuss some of these issues.

The following week, Mike sat in a meeting with Mary Ver Plank, Director & Executive Producer /Internet, Greg Baerg, Executive Producer/TV, Clark Bender, Executive Producer/Movies, and Jeff Rowe to brainstorm how they would handle some of the large problems their company was facing. Within a few hours, it was obvious that it was time for a Web site refresh. The goal of the new site would be to incorporate larger ad sizes, freshen up look and feel, allow for flexibility in design for special features and articles, as well as organize the TV and movie listings in a more user-friendly way.

At the heart of their dilemma was the need to strike a balance between advertisers’ increasing demand for larger banner ads and the nesting instincts of consumers: “How can we meet the goals we have in terms of advertising and simplicity without making the site a completely foreign environment for our users?” asked Clark. That question opened the door to a two-hour discussion of how a solution for each might be achieved without fundamentally altering the experience of their offerings: listings and editorial. Finally, they all agreed; the Web site should be redesigned.

Two months later, the new and improved Zap2it site was set to go live! Mary and her design team, with direction from the other division heads, had leveraged their collective experience of designing communications for the Internet, in general, and at Zap2it, in particular, to deliver a much better product. In short, they were able to restructure the site to accommodate the larger ads, freshen up its look and feel and build in flexibility to incorporate ad hoc special features and articles - all while improving performance and organizing the TV and moving listings into a more user-friendly format!

As they were leaving the launch party, Mary turned to Greg and asked, “So, what’s on the horizon for us next?”. “Well,” he answered cryptically, “there’s plenty of cleaning up left to do our in own house. I’m just not sure which room to start with.”

December 9, 2001 page 8

Design at Zap2it/Conclusions

design at Zap2it Design at Zap2it is focused mainly on their Web site. Employees in design roles typically have a web design background. Projects, most of which are initiated by one of the producers, focus mainly on evolving the Zap2it Web site or creating affiliate Web site. The designers are brought into the development process early and ideas are generated visually useful & collaboratively, it is then the designers’ role to create mock-ups to visualize and evolve the compelling usable ideas. It should be noted that the media kit and other marketing projects are done outside of Zap2it by TMS though Zap2it is involved in their creations.

Our sources at Zap2it define design as a balance between making the Web site visually attractive and alluring while making it usable. There is a perception at Zap2it that these are opposing objectives, that to make the Web site look good, there must be high resolution graphics and animations that are heavy to download. The evolution of their Web site shows us Zap2it’s increasing emphasis on chunking content into manageable bits for their users and a de-emphasis on visual design. See the following three versions:

The beta version launched in May 2000 and unified the three companies’ offerings (Ultimate TV, Movie Quest, TV Quest.) The home page was a blend of content from all three groups: movies, television and internet.

Version 1.0 launched in November 2001. This version was an attempt to reorganize the content based on what users were looking for. Movies, television and internet were not given separate promotional areas on the home page.

Version 2.0, or the current Zap2it Web site, was developed to accommodate larger advertising banners. Movies, television and internet were given equal emphasis on the home page. Content was chunked into more manageable bits and the visual design added more white space so type was easier to read and sections were easier to distinguish.

With the goal at Zap2it to build a strong consumer brand, we found that design’s main role is to drive people to the Web site. They are accomplishing this by this aforementioned balance of engaging visuals and usability of the Web site.

At the Institute of Design, we believe that the best way to develop a product, service, brochure, Web site or strategy is to learn as much about to whom it is targeted. At Zap2it we found an emphasis on understanding the audience/end user, but mostly through Web site metrics. Changes for the Web site were initiated based on this knowledge and sales strategies were also developed based on understanding the potential customer.

December 9, 2001 page 9

Insights & Recommendations/Logo Deconstruction

Context A successful mark differentiates a company from its competitors and distinguishes the company’s brand attributes through form and quality. Building brand equity occurs over time, as it should. Consumers’ ability to recognize a brand, and to see it as credible and trustworthy would be undermined if a logo transformed too quickly. But brands do transition over time, and Zap2it may as well. Future refinements of the Zap2it logo would benefit from considering the following observations:

Graphic Element A rounded square is a common graphic element used in many marks, particularly by companies that are associated with television or the internet. Using a ubiquitous graphic device of the moment serves to identify the mark within a specific time frame. Additionally, the impact of the graphic element is diluted when it serves to represent a multitude of attributes for everyone.

Typography The selection of an appropriate typeface is integral to the overall success of a mark. All typefaces have specific qualities which can be used to express brand attributes.

Typography alone can convey the entire branding message. Many brands with high recognition and brand equity use marks which have a concise graphic style and convey personality.

.com The name used in a mark is the name that customers, partners, investors and press will always associate with the brand. It is important to recognize the constraint a brand image can place on the growth of a company. The .com connects a company with a sector of commerce that is experiencing a significant economic downturn, and also associates a company only with the Internet.

Logos that trend towards neutrality Many brands with high recognition and brand equity use logos that are fairly neutral in their use of graphic style. The success of these brands lies in the perceived value of the content of their products and services. The neutral expressions allow the leverage of acquired brand equity into new markets and categories.

December 9, 2001 page 10 Insights & Recommendations/Web Site Deconstruction

Structure The structure of a Web site - the organization and architecture of the content - directly impacts users’ ability to find what they need. The structure of zap2it.com is successful in that it clearly represents its three main sections. However, incorporating a separate listings area would support the variety of searching strategies people use to achieve their objective.

Navigation Effective Web site navigation is important. From the Zap2it home page, users can access www.iplanet.com organizes their the three main sections in two ways: by clicking on the left-hand navigation bar, or by offerings according to maps. A user can find product information in a clicking on the content in the middle of the page. However, there is no clear indication of variety of methods. the specific content that is found in each of these sections, and the navigation tools mix multiple types of design conventions.

Text Text that is easy to scan and read is necessary for users to find the information that they are looking for. Creating hierarchies through variations in text color, size and line lengths would add clarity to the Zap2it layout.

Visual Layout & Elements Zap2it attempts to meet the users’ entertainment and information needs through the visual layout and elements on the page. Although this creates some degree of tension, establishing a clear visual hierarchy will help to achieve a desired balance.

Art & Culture demonstrate the use of dynamic navigation elements, for example, by offering user the option of expanding or collapsing the navi- gation by in orienting its visitors.

The Wall Street Journal (www.wsj.com) is an example of an ) especially simple and clear text-heavy sites.

The Target (www.target.com) Web site succeeds at visually ordering information in a compelling and interesting way.

December 9, 2001 page 11 Insights & Recommendations/Web Site Deconstruction

Media Zap2it.com has a fairly extensive collection of streaming video, movie and TV clips, as well as interactive games. However, this content seems to be buried deep within the site, and is not promoted to the fullest extent. New and/or special trailers could occasionally be brought to the home page or feature level. For users who do not have sufficient bandwidth, still images would offer alternative methods for viewing the same content.

TV/Movie Listings TV and movie listings are Zap2it’s principle offerings. Therefore, access should be espe- The NBC.com Web site establishes cially clear, simple and understandable. The process of getting TV listings on Zap2it.com visual hierarchy on its site through the relative positioning and contrast and TVGuide.com is somewhat similar, yet the visual design of each site leads to an in color and size. entirely different user experience.

Zap2it users are able to access their local listings directly from the home page; TV Guide visitors must accomplish the same task in two clicks. However, the TV Guide setup page communicates a sense of openness, releasing its content from the confines of the box. In addition, the site provides its visitor with clearly delineated set of options.

Both grids provide its users with detailed and comprehensive information. The Zap2It grid has more expansive rows designed to include both the title and a brief description, thereby increasing scan-ability and enhancing the user’s experience. However, the practice of incorporating graphics tends to negatively impact the user’s experience with longer screen load times. TV Guide avoids the problem altogether with its simpler, text-only grid. MTV.com centralizes all of its video downloads. Here feature videos are promoted, and access is provided to older downloads.

The Zap2it online listings have a lot of detailed information and graphics. However, they take a very long time to load the screen.

TVGuide’s listings grid, in comparison, is simpler, which makes for faster load times. The user may click on a specific listing for more detailed info. TVGuide also uses color effectively to differentiate types of programming.

December 9, 2001 page 12

Insights & Recommendations/Future of Listings, Content & Advertising

The answer to the question ‘what’s on?’ launches one on a quest for the grid - the ubiquitous list of programming that TV and cable operators are scheduled to broadcast. The consumer’s entertainment preferences are confined to broadcasters’ programming: regularly scheduled features, archived content, and rotating pay-per-view events. But what about access to the world of entertainment not featured on any of the 82 channels provided by your local cable operator?

New players are venturing into the media/entertainment industry. The promise of direct access into the consumer’s homes have led firms to position themselves beyond the boundaries of their traditional industries. Their initiatives are focused primarily on the development of devices and services to facilitate the customization of content. Either through the provision of some necessary piece of the communications infrastructure or the development of tools to facilitate the customization of content, these firms are positioning themselves for growth beyond the boundaries of their traditional industries. Convergence Diagram:

Entering the race to become the first mover in the creation of platforms to offer custom TV products and services :

CONTENT DELIVERY ACCESS

books newspaper postal service CD-roms magazines photographic electronic programming guides film MEDIA PHYSICAL DISTRIBUTION cameras catalogs disks, tapes,, CDs, DVDs DVD player radio Web sites digital video recorders TV programming FedEx, UPS CONSUMER televisions home video home shopping ELECTRONICS

CD player ENTERTAINMENT videogames telephones web conferencing movies DSL, cable modems satellite internet PDAs notebook computers multimedia interactive TV TELECOMMUNICATIONS information monitors/screens services online services cellular voice-over internet COMPUTING desktop PCs

PROFESSIONAL SERVICES online searches voicemail web browsers & databases operating systems video on demand advertising application software

Source: Doblin Group

Despite the grand vision, the reality is each of the initiatives fall short in their plan to radically alter our TV viewing experience. As the expansion of entertainment options rely on the delivery of content, these players have found themselves thwarted by the failure of content providers to fully embrace their vision. Media companies, pointing to the impact of Napster on the recording industry, have expressed concerns about the possibility of copyright infringement and lack of rights managements protocols built in the software.

December 9, 2001 page 13

Insights & Recommendations/Future of Listings, Content & Advertising

Nevertheless, the desire to be a significant player in this space has infected the content providers as well. AOL Time Warner, News Corporation, and Sony are underwriting initia- tives to retain as much control over content and simultaneously satisfy the consumers demand for customized TV. Most of these initiatives involve developing partnerships with new entrants and industry partners to deliver content directly to the PC. The impetus for this is the growing number of consumers accessing the internet over broadband, DSL and cable-modem lines. For example, Moviefly, a new service offered by a consortia of media producers led by Sony, is scheduled to launch its Web site by year-end. Subscribers will be able to download premium video on demand.

While each of the models described do not represent a significant departure from the closed cable-satellite network that exists today, they nonetheless represent a step in the disintermediation, or reduced role, of broadcasters from the movie industry’s value chain. Should any of these visions really pan out, how might programming guides evolve? How will the programming guides accommodate the diversity of consumer schedules and programming choices? What process and product innovations are needed to develop a loyal following among these newly empowered users who may no longer ask the question, “what’s on?” but rather “where can find and I download x?”:

First begin by understanding the role entertainment plays in users lives. Develop feedback systems that will enable Zap2it to learn more about customer preferences, which will assist in the development of more targeted, context-based marketing messages. Lastly, explore how new searching capabilities might be developed to assist the Zap2it user in finding content they deem meaningful.

December 9, 2001 page 14 Insights & Recommendations/User Centered Design

So who are Zap2it’s users? Zap2it has identified its user group in a traditional market research sense, through demographic and psychographic profiling: • 18-49 year old • heavy media consumers • tech savvy • time conscious • an overall fascination with the media industry

Although this user profile is likely accurate, it is too broad to fully understand the needs and values of more distinct users that can be differentiated within this core group. Gaining this understanding holds many opportunities for the Zap2it brand and products.

User groups frequently consist of the following types: influencers, people that sway the pur- chase decision; purchasers, people who buy the actual product or service; users, who of course, use the actual product or service. In the case of Zap2it, the influencers may be, for instance, media-industry executives, purchases are typically broadcasters and cable /satellite operators, and the users are the consumers who access the Zap2it information, regardless of the channel. To understand each of these groups further is crucial. In doing so, their distinct needs can be identified and Zap2it can differentiate its brand to serve these unique user groups.

In looking closely at the Zap2it organization, opportunities currently exist to understand who the Zap2it users truly are. Through interviews with several Zap2it professionals, we have identified several levels within the organization that rely on user feedback. The general manager, executive producer and managing editor for TV, executive producer for Movies, and the ad sales manager each stated that they regularly refer to user feedback to execute their job responsibilities. However, waiting for user feedback is operating in reactive mode. The proactive mode leads to anticipating users needs through first understanding their values and priorities, and the context in which these occur. And yet, Zap2it’s sources for user insights rely only on web metrics, email and chat room messages, and market research studies.

User insights that go beyond these elements are crucial for Zap2it to successfully differentiate itself from its competitors. Users are not commodities. On the contrary, users are key to Zap2it’s growth. Zap2it must approach their users in the manner they have approached their content over the years: strategically, comprehensively, and reflectively. Zap2it users must be understood not just by how they interact with the Web site, but rather, how media and entertain- ment overall enhances people’s lives. For example, how does entertainment and media: • shape and influence a culture? • help to create, contribute to, and sustain relationships? • connect to seminal events in peoples’ lives? • shape a person’s identity?

Answering each of these questions will provide a clear road map that will Zap2it to develop a truly compelling user experience. develop a really rich strategy by lookiing at your users in a new light.

December 9, 2001 page 15