Transcript Slide 1

The media scenario
CHALLENGES AND
CHANGES IN THE PRESS
ROME 30 MARCH 2007 09h30/ 13h30
PROTOMOTECA - CAMPIDOGLIO
NEWSPAPERS | THE MARKET VIEW?
NEWSPAPERS | THE MARKET VIEW?
NEWSPAPERS | IS THERE A FUTURE?
circulations
are not
growing
online is
destroying
classified
pillars
broadband
is industry’s
demise
today’s
young
don’t read
AN UNCERTAIN
FUTURE?
indifference
from
advertising/
creatives
print is dead
consumers
are ‘time
starved’
reluctance to
pay for
information
NEWSPAPERS | THE MARKET VIEW…
NEWSPAPERS | OUR JOURNALISTS’ VIEW…
NEWSPAPERS | THE MARKET VIEW?
“ a sense of
impending doom carries
most Irishmen
through long periods of
tranquillity…
”
Irish Playwright/ Author, Oscar Wilde (1892)
NEWSPAPERS | GLOBAL HEADLINES
1.4 billion people now
read a daily newspaper
439M BUYERS & GROWING!
Print is
NOW the
biggest
advertising
medium in
the world
with 43%
share
NEWSPAPERS | GLOBAL FACTS
• Advertising revenues up 5.7% in past 12 months;
• World's 2nd largest advertising medium (30.2%),
exceeding the combined spend of radio, outdoor,
cinema, magazines and the internet;
• Global circulation sales up 2.36% over 12 months;
• Global circulation sales up 9.5% over past 5 years;
• Daily titles surpass 10,000 for the first time in history;
• More than US$8 billion invested in newspaper
technology in the past five years;
• Nearly 2 million employees worldwide;
Source: W.A.N. World Press Trends © 2006
The media scenario
CHALLENGES AND
CHANGES IN THE PRESS
ROME 30 MARCH 2007 09h30/ 13h30
PROTOMOTECA - CAMPIDOGLIO
2007 | CHANGING INVESTOR PERCEPTIONS?
1. Risk Profile has shifted to the upside
2. Multiples are nearing historic lows
3. “Structural concerns are overdone”
4. “We’re back in bubble territory…”
2007 | WHAT GIVES?
•
Fragmentation
•
Media Consumption is NOT mutually exclusive
•
Online Promise – perhaps not as compelling
•
Broadband Internet – confounding Audio-Visual
•
Newspapers Online – Extending Reach
•
Newspapers: Delivering on what we do best…
MARKET DYNAMICS | THE REALITY IS…
frag·men·ta·tion [ fràgmən táysh’n ]
noun
1.
breaking up of something: the process of
shattering or breaking up into fragments
2.
loss of unity and cohesion: the loss of unity
and cohesion and the breakup of something
into isolated and often conflicting elements
NEWSPAPERS | DOING WHAT WE DO BEST…
The Newspaper: The Ultimate Browser
•
Ultimately portable
•
Extremely convenient as to time and place
•
Engender loyalty to title, not medium
•
Widely accessible worldwide (off/ on-line)
•
Easily disposable and/ or ‘Cut Out ‘n Keep’
•
Very content rich
•
Non-perishable
•
Review-able
•
Cheap to consume
NEWSPAPERS | DOING WHAT WE DO BEST…
“ It’s amazing that the amount of
news that happens every day,
always just exactly fits in the
newspaper…
”
U.S. comedian, Jerry Seinfeld (1992)
NEWSPAPERS | REALITY CHECK
RE LITY check
•
NO Paradigm shift…
•
RISK: Inertia becomes Consumer Apathy
•
STIMULATE DEMAND = Marketing
•
Online ( audience aggregation)
•
Seek EFFICIENCIES for Reinvestment in
BRAND MARKETING and INNOVATION
•
Remember… Local | Local | Local
NEWSPAPERS | REALITY CHECK
RE LITY check
•
Attack those “Legacy Costs”
• “Free-up” internal inefficiencies and reinvest
• Move to a more “flexi” cost base
•
Invest for the Future | BRAND MARKETING
• Vigorous Pricing: Vigorous marketing
• Continuous Innovation
• Active product development
• “meet & then exceed consumer expectations”
NEWSPAPERS | REALITY CHECK
RE LITY check
• Sell the reality that is “Fragmentation”
• Newspapers are the mass-market medium of
the future, as broadcasts/ online fragments
• Newspapers deliver targeted and reliable
demographics – not haphazard audiences
• Online – don’t be defensive, be aggressive
• BUT always insist on an Return on Investment
• Build INCREMENTAL audience, revenues &
profits
• Talk up your business
NEWSPAPERS | THE FUTURE…
“ I think the papers in this country are
better than they’ve ever been. Some of
the circulations are declining - but if you
look at their full reach, if you add up
their printed circulation to the internet
circulation, they’re probably extending
their reach.
”
Rupert Murdoch
Chairman and CEO, News Corporation
Source: Interview in The Daily Telegraph,
23rd January 2006
NEWSPAPERS | THE FUTURE…
the power of the medium…
© Ziarul Financiar
The media scenario
OPPORTUNITIES AND
CHANGES IN THE PRESS
ROME 30 MARCH 2007 09h30/ 13h30
PROTOMOTECA - CAMPIDOGLIO