120 likes | 217 Views
Grant Perry July 16, 2009. Stratfor – Bloomberg Bloomberg –Snapshot Est 2008 revenues: $6.1 billion ( Silicon Alley Insider ) Highly profitable – in 2006, operating margin 30%+ ( Fortune ) July ’08 – Merrill Lynch sold back 20% share, valuing company at $22.5 billion
E N D
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg –Snapshot • Est 2008 revenues: $6.1 billion (Silicon Alley Insider) • Highly profitable – in 2006, operating margin 30%+ (Fortune) • July ’08 – Merrill Lynch sold back 20% share, valuing company at $22.5 billion • Privately held - Mike Bloomberg owns 88% • Bloomberg revenues derived mostly from its terminals – approx 290K terminals at $1500-1800/mo • In 2008, terminal net sales down 1,100; In March ‘09, down 2K • Feb ’09 - first ever layoffs – most in TV/Radio (100)
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Market – Financial Information and Analysis • Bloomberg 24+% market share to Thomson-Reuters 34% (Burton-Taylor) • 3rd, 4th, 5th ranked companies hold <4% market share • 2009 projected negative 1-3% growth for sector (Burton-Taylor) • Bloomberg sells hardware at essentially fixed price to deliver info/data • Thomson Reuters sells info/data with flexible pricing • Asia strongest globally; note: China recently eased controls on foreign financial info companies
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg –Products • Terminal – to access “Bloomberg Professional” service • Bloomberg TV • Bloomberg Radio • Bloomberg Mobile • Bloomberg Markets Magazine • Bloomberg Press
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg TV • 24 hour global network • Reaches 200 million homes worldwide; 47M in US • Recent layoffs in TV and radio reportedly to “clear the decks” for new journalist hires • Feb ’09 – said would cut some foreign language versions, place emphasis on international and regional channels • Presumed low ratings (but doesn’t subscribe to Nielsen) • Elite audience – average HH income $148K, highest of any cable network (Mendelsohn Affluent Survey) • Hired David Rhodes, former Fox VP/News – reports to Andy Lack
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg Radio • US and int’l financial news; interviews with execs, analysts • Syndicates reports to 840 radio stations worldwide • On XM/Sirius satellite radio • On New York market AM station WBBR
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg Markets magazine • 13 issues annually • $29.95 (sign-up online) • Circulation: 324,000 – up 4.6% in ’08 • Hired Michael Dukmejian as publisher – former publisher, Fortune and Money; oversaw CNNMoney.com
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg Mobile • Delivers news, “Market Snapshots,” world indexes, stock quotes, “Your Portfolio” (free) • Delivers live Bloomberg TV ($9.99/mo) • Free iPhone app (no video yet)
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg Structure • President: Dan Doctoroff • Chief Content Officer: Norman Pearlstine – former Editor-in-Chief Time Inc., former Wall St Journal editor/reporter • Editor-in-Chief, Bloomberg News: Matthew Winkler – ex WSJ reporter • CEO, Multimedia: Andrew Lack (hired Oct ’08) – former NBC News president, former Sony/BMG Music head, former CBS News producer (60 Minutes, West 57th); reports to Doctoroff • Hired Ien Cheng, former Google director of product management, former publisher/editor of FT’s Web site
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg News vs Reuters News (Burton Taylor study) • Bloomberg delivers 11,000 items daily; Reuters 7,500 • Reuters “places greater emphasis on context and analysis” • Bloomberg sends higher percentage of its news as headline-only “alerts” • Note: Thomson Reuters hired former CNN International managing director Chris Cramer as head of multimedia
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Bloomberg Imperatives • Expand non-terminal revenue streams • Broaden mission of Bloomberg TV (has been primarily to promote brand, terminals): Make money and produce video for multiple platforms • To compete with CNBC, Fox Business – Lack likely to upgrade early am markets-oriented TV programs • Develop more non-markets programming • Needs more high profile on-air talent – unclear whether will build or buy • Lack says mobile screen is as important as TV, computer screens to Bloomberg • Enhance live streaming video to mobile devices • Develop more valued-added content – analysis and perspective • Bloomberg acknowledges geopolitical content is key
Grant PerryJuly 16, 2009 Stratfor – Bloomberg Stratfor Imperatives • Any deal with Bloomberg should meet Stratfor’s strategic, not just tactical goals, e.g. enhance brand ID as intelligence publisher, help drive paid subscriptions not just traffic • Evaluate impact of a Bloomberg deal on other potential alliances: Is it worth it? • Co-branding is critical – don’t let Bloomberg obscure Stratfor brand (and not just Stratfor brand, but its sub-brands, e.g., Geopolitical Intelligence Report • Strong global trend toward “sliced and diced” content delivery on multiple platforms – people access content through links, RSS, widgets rather than just going to the content producer’s site; so control of brand and packaging of content is key • The same trend argues against deals based on exclusivity – unless huge premium is paid (even then, such a deal may not fit strategic imperatives) • Bloomberg News is a journalistic product; Stratfor is an intelligence product – maintain differentiation, e.g. be careful about how Stratfor content is integrated into Bloomberg’s and how Stratfor sources are tapped for Bloomberg • Make sure Bloomberg shares user data relating to Stratfor products
Grant PerryJuly 16, 2009 Stratfor – Bloomberg A Few Thoughts on How to Proceed • Start “small” to test relationship • Initially deliver content that doesn’t require significant additional expenditures • Any content Stratfor provides for free must enable quick signup for free Stratfor content and/or paid subscriptions • Start by providing Stratfor Insights and Video Insights for Bloomberg Mobile (video sourcing may have to be non-Reuters) – these should be “tagged” to Bloomberg’s news headlines (contextualize) • Also provide Geopolitical Diary • And provide certain longer reports relating to prime Bloomberg markets, e.g., China, oil and gas; these would be presented in high-profile environments on Bloomberg platforms • Business model: provide free with appropriate branding and links (or on licensing fee basis, which is unlikely); share revenues on any ads sold on Stratfor content (Bloomberg will sell, get larger share) • Other possibilities: • Provide discounted Stratfor subscriptions sold through Bloomberg ; incentivize Bloomberg on subscription sales – give % • Co-produce a co-branded television program; use Stratfor people as hosts and experts; production at Bloomberg studios in New York; share ad revenues (ad sales by Bloomberg)