paywall 2.0 the reinvention of media

Tien TzuoCEO, Zuora

Paywall 2.0The Reinvention Of Media

Commerce Billing FinanceSubscription Subscription Subscription

500+ customers

$82Mfunding

Zuora foundedSeries A; First

product launchedSeries B, Zuora featured in WSJ

Series C; Zuora announces 1B in

contracted revenue

Series D, Trademarks Subscription

Economy; EMEA expansion

Zuora wins AlwaysOn Company of the Year Award; expands to Asia

Four+ Years of Incredible Growth

The Leader in Commerce, Billing and Finance solutions for the Subscription Economy

Offices:Silicon Valley, London,

Sydney, Beijing, Chicago, Atlanta

Media Industry At A Crossroads

2009: Death Of Journalism Widely Predicted

Advertising Revenue at 1950s Levels

Newspapers lost $10 in print advertising for every $1 gained in online advertising

The Myth Of Free Was Killing The Industry

“By having a paywall you are cutting your journalism off from the world.” – Alan Rusbridger, Guardian Editor-In-Chief (Jan 2010)

Cost Cuts: Staff Slashed To 1978 Levels

Resulting In A Race To The Bottom

Source: PEW Research CenterState Of The News Media 2013

Of Americans stopped using a news outlet

because of

dissatisfaction over content

31%

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Some Companies Rebelled Against Free

The New York Times paywall is working better than anyone had guessed

A New Dawn

Pearson Sees Digital Income Beating Print Publishing

…subscription sales are rising faster than ad dollars are falling…. NYT

Digital subscribers now outnumber print…. FT

33% of our revenues coming from subscriptions … Dallas Morning News

Digital Magazine Revenues Predicted To Triple

Source: PEW Research Center State Of The News Media 2013

Digital Paywalls Are On The Rise

46.7% of newspapers now behind a paywallNews & Tech Stats Aug 2012

Gannet & Co.

GateHouse Media

Lee Enterprises

MediaNews-Digital First

Berkshire Hathaway

Dow Jones Local Media

Times-Shamrock

McClatchy Co.

Swift Communications

Tribune Co.

72.2

31.6

57.7

44.1

57.9

100

75

16.7

17.2

27.8 % Papers With Paywalls

Western Europe: Online Paid Content Revenue Expected To Rise By 65%

Source: Forrester Research

2012 2017

6,2

+65%

€Billion

10,2

Wall Street Is A Believer Too

Shares of Gannett, New York Times, and E.W. Scripps are up

Bottom Line: Paywalls Can Work

Source Michael Nevradakis “May The Best Paywall Win” University of Texas Austin

Paywalls show signs of positively impacting print circulation

Print Circulation Before Paywall

Print Circulation After Paywall

New York Times Weekday declined by 7.8%Sunday declined by 5.3%

Weekday declined by 5.6%Sunday declined by 0.1%

Wall Street Journal Paywall for 15 years Very gradual decline

Boston Globe Declined by 5.3% Sunday increased by 0.8%

Dallas Morning News Declined by 16.1% Weekday declined by 5.5%Sunday declined by 1%

Arkansas Democrat Gazette - Weekday increasedSunday remained steady

We Proudly Support Media Industry’s Transformation

So Where Do We Go From Here?

Is this theNew Normal?

Or is the Shift to Digital an Opportunity for Reinvention?

The First Paywalls:The Difference Between Success And Failure?

We Proudly Support Media Industry’s Transformation

It’s Never Been About the Paywall

We Proudly Support Media Industry’s Transformation

It’s About the Customer

Digital Users Consume MORE NEWS Not Less

31%Spend more time

with news

43%Go to more news

sources than before

The Future Starts with Deeper Customer Relationships

Welt Group: Major newspaper brand in Germany represented on all relevant digital platforms of

iOS, Android and Kindle

Multi-Device Experiences

NYT Announces Online Portuguese Edition, Bringing Times Journalism To Readers in Brazil

Increased Geographical Reach

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Pearson Plug-N-Play offers content via APIs to third party app developers

Innovative Content Monetization

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Cross Content Bundling

News International: Bundling print, web and tablet subscriptions to The Times and the Sunday Times

New York Times quarterly revenue rises on subscriber growth

Predictable Revenue Model

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Customer

Increased Geographical Reach

1

Cross Title Bundling

2

Richer Multi Device Experiences

3

Extended Product Line via Innovative Content Packaging

4

Predictable Revenue Model

5

Going Beyond The Paywall

Confidential and Proprietary Information. Do not distribute beyond intended audience.

It’s Time for Paywall 2.0Paywall 1.0 Paywall 2.0

A simple toll-gate Business Model Transformation

Paywall-Centric Relationship-Centric

Splintered Subscriber View Unified Subscriber View

Single Platform Monetization Cross Platform Content Bundling

Rigid Monetization Strategies Flexible Monetization Strategies

The Technologies Are Here

For Media

The Success Stories are Here

“There Are Three Estates in Parliament, But The Fourth Estate Is

More Important Than All “Edmund Burke, British Politician, 1729-1797

As quoted in “Heroes and Hero Worship In History”

We Proudly Support Media Industry’s Transformation

It’s Time to Start the Journey