transformation of media - technology and business models
TRANSCRIPT
Transformation of media- Digital technology and new business models
Johan Winbladh March 2016
[email protected]: 21915612www.medieinnovation.dk
Grphic: Erik Johansson – Go Your Own Way
• Movie Production
• Musician
• Marketing Strategist
• Market Researcher
• Digital Commissioning Editor
• Project Manager
• Media Innovation Consultant
• Startup mentor
• Business Change Manager
About me (2)The ’about me’ slide
The money flow changes channels
(mio dkk) Advertising spending/year - Denmark
ADVERTISING – changing channels
Own figure, data provided through Mediawatch/FDIM
The money flow changes channelsTV fragmentation:
Content, services and habits
DR Medieudviklingen 2014
• On average, we watch 2h53m TV daily
• In 2014, 17% of danish TV viewing time is streaming
• New biz model: 25% of us have access to Netflix
• Battles for control in the value chain: Content providers with
distribution. Tv-manufactirers with smarthubsDaily DK consumption (minutes)
on streaming 2014 (age 15-75)
1950 1970 19901980 20001960Phone Donation
for Hungary Crime
Investigation
Ask the doctor
You Decide
(vote)
Golden Arrow
(game)Hugo
(game)Pick a Movie
(vote)
Eurovision
Song Contest
Animals and me
Do it Yourself
assistance
What is it worth?
For TV, participation+interaction+engagement is no newsCreativity quickly adapted new opportunities
Revenue 2011•TV: 1.110 mio.dk (export: 230m)
•Cinema: 885 mio dkk (export: 113m)
•Computer games: 425 mio dkk (export 240m)
•Advertising: 390 mio dkk (export: 42m)
Content Production companies in DenmarkGame growth – goes global
http://www.adexchanger.com/data-driven-thinking/why-media-companies-are-being-eaten-by-tech-companies/
Why Media Companies Are Being
Eaten by Tech Companies
Google isn't moving into media based
on the existing rules that the media
companies play by – it is approaching
media through the lens of technology.
New technologies have been massively disrupting the media space for 10+ years
There is a vast gulf between the
executive leadership of media
companies and the needs to
understand technology.
A super smart engineer who can
wrap his or her head around
platforms and technology issues
can probably learn business
concepts and issues faster than a
super smart business person can
learn technology
Mikkel Rasmussen (ReD Associates)*
* http://cko.dk/gruppeindlaeg/status-mediebranchen-i-danmark
”Media sector has a shared understanding that 80% of revenue must come from radical innovation.
The rest comes from continousimprovements in existing business
Reality is completely the opposite”
New
competitors
Offer better
value
Consumers change
needs and behaviour
Relations: Digital is
new rules of game
(il) loyalty
New technology for
distribution
New initiatives
increase expenses
Revenue stream:
disrupted by free /
freemium etc
Ressources: Global
Corporations are BIG
Competences,
culture, mission
Partners gravitate
to best ROI
It’s all about the business model
All 9 aspects…
• Create new revenue streams (business development)
• Find new + maintain partners (increase brand position,)
• Improve customer service (ARPU, Cable-co open channels etc)
• Establish content paywalls (subscribe, micro, freemium)
• Reduce cost: Downsizing, outsourcing, processing
• Play politics (governmental support/funding)
• Improve products (Behav.target., BigData, 2nd Screen etc)
• Establish culture of innovation (departments, initiatives, Incubation)
• Re organize to meet demands (structure, roles, tasks)
BUILDNING NEW BUSINESS MODELS
• It’s not about product features, but percieved value
• Innovate all parts of the businessmodel to maximise growth opportunities
CREATING CUSTOMER VALUE
IMPLEMENT CONSULTING – VIEWPOINT NR. 4 / 2012 (implement.dk)
•Key ressources
•Key processes
•Partner network
•Value propsition
•Value platform
•Customer segments
•Channel structure
•Customer relations
•Cost structure
•Cash flows
How do we
create….
…valuable
solutions and
experiences…
…for
customers and
partners…
..to provide
profit for the
firm?
Tradeshift was awarded Best Enterprise Startup 2010 at The TechCrunch Europe startup awardTradeshift is currently used by over 150k businesses in 190 countries
•Think like pirates•Act like pirates•Think outside the box – challenge decisions•Agile •Validated Learning (it’s OK to make mistakes)•Team Camps•Transparency•Break up structures
TRADESHIFT’s APPROACH
From Tradeshift presentaion; Symbion Investor Day, dec 2012
Disruption from the inside: Media companies seek hope as incubators
“If you continue to disrupt our industry, we want to work with you.”
MEDIA EVOLUTION CITY, MALMÖ: Academia, commerce and industry and the public sector established Media Evolution City cooperating with and housing 100+ Startups on 7500m2
MEDIA CITY BERGEN, (NORWAY) : 50 small, large, new and old media companies moves in to 45,000 m2 in 2016 and gather 1500 people.
The vision is to become an international hotspot for innovation and knowledge in media where at the same place is TV channels, newspapers, providers of media technology, Startups, education and research.
Connecting startups with established Biz
• Inefficiency because agencies have not implemented the processes
and technologies that could streamline a campaign proces.
• Many agencies sell ‘manual processes’ instead of documented value
optimization
• Lack of software to control the growing data complexity in online
campaigns
• Agencies can reduce worktime on a campaign by 33%
”Agencies is far from utilizing the digital world
to create value for their clients”
Consumers:• More digital
• Service expectations• Content need
Technology:• New routines
• New competences• Increased complexity
Competitors:• Specialized & niches
• Recession > costpressure
Clients:• More digital focus
• Increased quality• Higher requirements
https://www.bcgperspectives.com/content/articles/media_entertainment_marketing_cutting_complexity_adding_value_efficiency_effectiviness_digital_advertising/?chapter=2#chapter2
Advertising Agencies Suffer from More Than 25 Inefficiencies
and Pain Points
http://www.mckinsey.com/Insights/MGI/Research/Technology_and_Innovation/Big_data_The_next_frontier_for_innovation
83% of CIOs consider BIG DATA to be the highest prioritized
way to strengthen competitive power (IBM survey, 2011)
T h e f u t u r e o f O n l i n e m e d i a a g e n c i e s• Mediatrader is “disruptive Technology”• Enable GroupM Product sales, Reverse auction
(mediamarket). • Controlled mediadatabase providing recommendations as
target groups and competitive spends
Kilde: Undersøgelse blandt annoncører samt medlemmer hos Danske Medier og Kreativitet & Kommunikation (maj-juni 2014)
• Have not priorotied mobile
enough
• Have not provided case stories
to show value
• Media focus on traffic, while
advertisers focus on target
groups
• Outsourcing to ad networks
provides no internal knowledge
• Advertisers believe mobile is a
less important add-on
• Lack of result based cases
hamper interest for mobile
channel
• Many have no mobile
landingpages
• ROI is difficult as mobile is not
easy to measure in ‘path to
purchase’
• When buying media,
mobile is part of online >
no specific mobile
investments
• Huge difference on
advisory competences in
different agencies (risc
willingness)
• Critical mass makes
agencies build up
knowledge
http://www.15inno.com/wp-content/uploads/2012/06/Screen-Shot-2012-06-06-at-08.43.21.png
READY FOR OPEN INNOVATION ?
MARKETING
SALEIT
PRODUCTION
R &DCUSTOMER
SERVICELEGALFINANCE
CULTURE AND STRUCTUREKnow how business value is achieved
What is measured, gets paid, What gets rewarded, gets done.
• Culture: The ‘way of life’ and stable beliefs as understood by employees• Burning platforms, new values, reward systems and job designs
• Dismantle silos and build organisational alignment (crossfunctional, selfdirected)• Learn teams to be self-directed and improve methods, communication, cost control etc
• Value ‘idea champions’ as risc-taking creators of competitive advantage• Ensure ‘sponsor’s for resources – a protegé that lends positional power• Add a ‘Godfather’ to clear political obstacles for commercialisation• Concider establishing an organisational greenhouse