Key  Case  Studies,  Ideas  &  Implica4ons

Effec4ve  Strategies  for  Media  Companies

Summarized  notes  compiled  by  Billy  D.  Aldea-‐Mar4nezHead  of  Digital  Mone4za4onGrupoCopesa

Sunday, 30 June 13

2

Value add

Media Revenue Models

Sense of community CustomizationTangibility Filtering

Reputation ValidationTimeliness

FormatAnalysisVisualization

Ease of useDesign SynthesisRelevance

www.futureexploration.netCreated by Ross Dawson

www.rossdawsonblog.com

AdvertisingBrand creative

Pay per clickPay per action / sale

List rentalProduct placement

ContentSubscriptionPay per view

Pay for formatCustomised content

DistributionSyndication

LicensingCustom feeds

API fees

CommunityMembership

Pay for votingPay for messaging / SMS

Sales of communityresearch

AffiliatePay per sale

Pay per registrationPay per download

ClassifiedsListing fees

Transaction feesContextual advertising

LeadsLead generation

Registration for contentO!ers

Enquiry matching

EventsConferencesRoundtablesShowcases

Access to buyers

MerchandisingBooks / research

Music / videoClothing

Other

PartnershipsRevenue share

Pro"t shareShare of revenue

increase

PlatformSell distribution platform

License platformDistribution feesServe advertising

BrandBrand licensing

Sponsor feesBranded productsBranded content

Sunday, 30 June 13

Three  Tech  Giants

3

Shares:  US$34.61Market  Cap:  US$289.37B

Shares:  US$397.19Market  Cap:  US$372.82B

Shares:  US$880.55Market  Cap:  US$292.29B

Sunday, 30 June 13

Three  Tech  Giants

4

Shares:  US$34.61Market  Cap:  US$289.37B

Shares:  US$397.19Market  Cap:  US$372.82B

Shares:  US$880.55Market  Cap:  US$292.29B

Sunday, 30 June 13

5

Law  of  Nemesis:• All  purchase  decisions  are  based  on  value.  Commodity  markets  

emerge  when  purchasers  view  suppliers  as  iden4cal  on  all  factors  but  price.

• There  is  only  one  winner  in  a  commodity  market—the  lowest  cost  supplier—except  in  periods  of  high  demand  when  supply  falls  short  of  demand.    In  periods  of  high  demand,  companies  may  be  fooled  into  thinking,  “We  are  differen4ated.”    Downturns  reestablish  commodity  buying.

• To  stave  off  the  Nemesis,  you  must  find  sustainable  advantages.  The  strategist  must  slow  the  erosion  of  advantages,  and  con4nually  seek  new  high  ground  represen4ng  future  compe44ve  advantage.  Moreover,  the  strategist  must  erect  “barriers  to  entry”  to  protect  

Law  of  Nemesis:• All  purchase  decisions  are  based  on  value.  Commodity  markets  

emerge  when  purchasers  view  suppliers  as  iden4cal  on  all  factors  but  price.

• There  is  only  one  winner  in  a  commodity  market—the  lowest  cost  supplier—except  in  periods  of  high  demand  when  supply  falls  short  of  demand.    In  periods  of  high  demand,  companies  may  be  fooled  into  thinking,  “We  are  differen4ated.”    Downturns  reestablish  commodity  buying.

• To  stave  off  the  Nemesis,  you  must  find  sustainable  advantages.  The  strategist  must  slow  the  erosion  of  advantages,  and  con4nually  seek  new  high  ground  represen4ng  future  compe44ve  advantage.  Moreover,  the  strategist  must  erect  “barriers  to  entry”  to  protect  

Sunday, 30 June 13

Disrup4ve  Clayton Christensen

Sunday, 30 June 13

Metcalfe  Law

• In  1993,  Robert  Metcalfe  no4ced  that  the  value  of  a  telecommunica4ons  network  is  propor4onal  to  the  square  of  the  number  of  users  of  the  system.  For  example,  two  people  with  telephones  can  only  make  one  connec4on.  Five  telephones  can  make  10  connec4ons,  and  twelve  telephones  can  make  66  connec4ons.  This  is  now  famously  known  as  "Metcalfe's  Law"  or  network  effect:  The  value  of  a  network  is  propor4onal  to  n2,  where  

Sunday, 30 June 13

Network  EffectA  network  effect  (also  called  network  externality  or  demand-‐side  economies  of  scale)  is  the  effect  that  one  user  of  a  good  or  service  has  on  the  value  of  that  product  to  other  people.    

Network  Compliments– iTunes  and  Macs/iPods

– “Piracy”  and  Silicon  Valley

Two  Sided  Markets– Economic  plajorms  having  two  dis4nct  user  groups  that  provide  each  other  with  

network  benefits

Sunday, 30 June 13

Network  Externali4es  &  Complements

OS  +  Office  Suite

MSDOS  Architecture

Applica4on  Developers

CROSS  SIDE  NETWORK  EFFECTSAME  SIDE  NETWORK  EFFECT

SAME  SIDE  NETWORK  EFFECT

MONETIZATION

SUBSIDY

DIRECT  FEED  BACK  LOOP INDIRECT  FEED  BACK  LOOP

Sunday, 30 June 13

Strategic  Network  Considera4on  

Sunday, 30 June 13

How  to  Disrupt

USERS USERS

ALL  MEDIA  ARE  SOCIALOWN  THE  STANDARD

CREATE  A  NEW  ISLAND  OF    A  UNDER  SERVED  NEED

USERS USERS

Sunday, 30 June 13

iPOD

iPod iTunes Music

10  billion  Songs  Available321,168,000  iPods  Sold45  Paid  songs  Avg  ipod

CROSS  SIDE  NETWORK  EFFECTSAME  SIDE  NETWORK  EFFECT

SAME  SIDE  NETWORK  EFFECT

Supply  SideMone4za4on  Side

MONETIZATION

SUBSIDY

Sunday, 30 June 13

Two  Sided  Markets  have  a  Subsidy  &  a  Mone4za4on  side

Mul4-‐sided  plajorm Subsidy  Side Mone4za4on  Side

Bars/Discos Women Men

Da4ng Women Men

Magazines Readers Adver4sers

Visa/Master  Card Consumers Merchants

Video  game  consoles Consumers Game  Developers

Personal  computers Applica4on  Developers  Hardware  Makers

Consumers

Mobile  Internet  Portals Content  Providers,  Handset  makers

Content  providers  Consumers

Sunday, 30 June 13

Music  Industry  in  Crisis?

Sunday, 30 June 13

Newspapers  Readership

Sunday, 30 June 13

Newspapers  Readership

Sunday, 30 June 13

Newspapers  Ad  Revenue

Classifieds:40%  Revenue50%  Profit

Sunday, 30 June 13

18

Funded  in  1950  witht  he  first  print  run  of  our  newspaper:  “La  Hora”

2000  

Grupo  Saieh  becomes  the  mayor  shareholder,gaining  board  control

2007  Laborum.com  is  100%  acquired

In  1990,  Copesa  is  acquired  by  a  private  equity  group,  inncluding  Grupo  Saieh

2008  

Divestment  of  prin4ng  press  business,  PROSA

2003  Buys  50%  of  Paula  Ediciones

2006    Grupo  Dial  is  officialy  launched

2002  Transformación  Proyecto  La  Tercera

2005  Launches  Diario  7

2003  Relaunches  Newspaper  La  Hora  into  a  free  daily  paper

2005  Inaugura4on  of  the  Planta  Prosa

2007  Papelera  FPC  is  divested

2005                Grupo  Dial  is  created  with  the  aquis4on  of  the  first  radio  sta4on,  Radio  Duna

2006  radio  Sta4ons,  Carolina  y    radio  Beethoven  are  aquired  

2007  Purchase  of  radio  Disney  y  Radio  Paula

2008

Aquis4on  of  Zoom  Inmobiliario

2010  Aquisi4on  of  Canal  22

2010  

First  Equity  Sale  of  Seminarium

2011  Investment  in  Betazeta

2011  

Que  Pasa  Mineria  is  launched

2011  Business  Newspaper    Pulso  is  launched

Our  History

2012  Launch  of  HOLA  Chile

2012    Luanch  of  QP  Energía

2007  Radio  Nina  &  Radio  Sintonía  are  aquired

2008  

Investment  in  events    business,  Seminarium

2009

Launch  of  Zoom  Automotriz

2011  Daily  Coupons  Agrupemonos  is  launched

2012  Launch  of  Now  Producciones

2012  New    Digitales  brand

2011  Final  equity  divestment  of  Seminarium

2012  Interna4onal

Development

Created  a  Regional  Permium  Ad  Network  

Sunday, 30 June 13

Show  me  the  money

Revenue  2012US$2.44B27 countriesNorway Sweeden Switzerland Ireland Europe Latin America South East AsiaPropertiesnewspapers televisionfilmpublishing multimedia and mobile services. Formatspaper, the Internet, television, cinema, video, DVD and wireless terminals (mobile telephones, PDAs

Sunday, 30 June 13

Where  is  the  money?

20

Sunday, 30 June 13

Schibsted  Case  Study

00 Trajectory MarketValue

2040The  last  Newspaper

V

T

Don’t  Look  at  the  P&L    =>  Look  at  the  strategic  implica4ons  and  react  before  it’s  reflected  on  the  P&L

Sunday, 30 June 13

Schibsted  Org  Chart  Evolu4on

Corporate  

Print   Online  

News Classifieds Online

Best  People  of  Print  Reproduce

The  big  change  was  culture

1 2

3

Threat  of  Cannibaliza4on

Sunday, 30 June 13

Digital  vs  Tradi4onal  Publishing

Publish Publish Publish Edit    

Gather Gather Edit Publish    

Digital  Publishing

Tradi4onal  Publishing

Rapid  and  frequent  news  updates  as  the  story  develops

Delayed  yet  well  researched  analysis,  slow  yet  highly  reliable

Sunday, 30 June 13

Demand  Media

One•Search  Data  Query  from  

Two•Cross  reference  with  CPC  Data

Three•Outsource  to  Freelancers

Four•MoneFze  with  Google

One•Editorial  Guidline

Two•Current  Events  

Three•Produce  News

Four•MoneFze  with  Brands

Sunday, 30 June 13

Platform Mix (Scalability)

Market Growth

Relative Market Share

Stars Question Marks

DogsCash Cows

ClassifiedsStrong Network effects

Events/Webinars/BooksWeak Networks Effects

Publishing/DisplayStrong Network effects

Professional ServicesWeak Network effects

Sunday, 30 June 13

USA  (English)  +  Spanish  +  Chile• When  looking  at  paid  downloads  a  totally  different  global  distribu4on  can  be  observed.  The  US  is  the  largest  market  and  covers  roughly  40%  

of  the  daily  paid  downloads  worldwide  in  June.      The  UK  and  Germany  rank  second  and  third  respec4vely  and  are  followed  by  Japan.

Sunday, 30 June 13

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Media  Consump4on  (Newspaper  Associa4on  of  America)

Sunday, 30 June 13

Adver4sing??

Sunday, 30 June 13

The  10  Power  Laws  of  Innova4on

Power  Law  1:  Don't  think  "new  product"  -‐  think  social  value.

Power  Law  2:  Think  social  value  before  "tech".Power  Law  3:  Enable  human  agency.  Design  people  into  

situa4ons,  not  out  of  them.Power  Law  4:  Use,  not  own.  Possession  is  old  paradigm.Power  Law  5:  Think  P2P,  not  point-‐to-‐mass.Power  Law  6:  Don't  think  faster,  think  closer.Power  Law  7:  Don't  start  from  zero.  Re-‐mix  what's  

already  out  there.Power  Law  8:  Connect  the  big  and  the  small.Power  Law  9:  Think  whole  systems  (and  new  business  

models,  too).Power  Law  10:  Think  open  systems,  not  closed  ones.

John  Thackara

Sunday, 30 June 13

Tech  Media  vs  Content  MediaPremiumAdver4sers

Performance  Adver4sers

Tech Content

UGC Tabloid EditorialCollatedSocialAlgorithmLow

High

Low

High

Sunday, 30 June 13

Mone4zing  App  ModelsProduc4vity

Entertainment Evergreen  Content

Current  Affairs  Content

Tech Content

Recurring  

Spot  Buy

Sunday, 30 June 13

Current  Brand  Device  Mone4za4on  Framework  

KniPng/Cooking/Deco/Beauty/Others

Content  Aggregator

Magazine  M

ast  HeadsAds PFD

IAP

Sunday, 30 June 13

Content/Func4onality  Mone4za4on  Framework

Content

FuncFonalityLow

High

High

Free

Free/Paid

Paid

Free/Paid Paid

Free/Paid

Paid

Paid

IAP

Sunday, 30 June 13

Resources  &  Corporate  Culture

Value  Created Value  CapturedValue  CapturedValue  Created

Yes No

Yes DisneyGE

Apple

Xerox  PARCNew  Media

Apple

No Microso|Oil  &  Gas  Mergers

American  AirlinesIBM  (Circa  1990)Intel  (DRAMS)

Sunday, 30 June 13

The Brandsphere

Sunday, 30 June 13

36

Sunday, 30 June 13

37

1. To increase the number of people potentially exposed to your ideas, you must increase your reach. Get more followers, email subscribers or Facebook likes.

2. You have to learn to be heard over the noise of social media. By being more attention grabbing or using contra-competitive timing.

3. Your content must include m o t i v a t i o n - r a i s i n g f e a t u r e s . Combined relevance, calls-to-action and us vs them are examples of contagious “hooks.”

Sunday, 30 June 13

Quotes

• Best  Performing  companies  have  very  different  answers.

• Opportunity  should  match  company  resources.

• Synergy  is  another  word  for  Conflict  of  Interests,  the  sum  is  greater  than  the  parts.

• Aim  to  Create  value  and  Capture  or  the  very  least  Captures  someone  else’s  value  crea4on.

Sunday, 30 June 13

Ques4ons  and  Answers

Thank you

Billy D. Aldea-MartinezHead of Digital Monetization

GrupoCopesabilly.aldea@grupocopesa.clwww.aldea-martinez.com

@aldeamartinez

Sunday, 30 June 13