Market Challenges for Scandinavian Media

1. Market Challenges for Scandinavian Media 11.2.2013 Jens Barland @jbarland + jens.barland@media.uio.no + jens.barland@hig.no

2. Background and Research Jens Barland: • PhD-project: «Journalism for the Market», IMK – University of Oslo (LINK to e-book) • Associate Professor in Media Management and Innovation – Gjøvik University College • 20 years background in the media as editor, director and journalist • Aftenposten, Stavanger Aftenblad, Dagbladet • MA in IR: «Press Freedom and Globalisation»(LINK to e-book)

3. Program • Changes in the market • Intro • Useful sources • Trends • Responses to the market • How does it affect journalism? From the case studies in my research

4. Intro • The simple story: What happened? • Digitalization: • Newspapers + Online news + Television + Radio + Books + Advertisements + Information overload + How we live and use media…

5. Transformation to digital distribution From 1995 Online edition: Growth in use, content, roles… Distribution on mobile, smartphones and iPad represent the growth and diversification in digital distribution 1995 Newspaper

6. Useful Sources on Scandinavian Media Scandinavia: Norway: Medienorge (Universityof Bergen) Sweden: Nordicom Denmark: http://www.statistikbanken.dk/18 • Nordicom (University ofGothenburg) Industry: • MBL (mediebedriftene.no) • Tidningsutgivarna (tu.se) • Mediearbejdsgiverne.dk

7. Scandinavia: Trends and Statistics • http://www.nordicom.gu.se/eng.php?portal=&main=

8. Scandinavia: Trends and Statistics • Example: Number of newspapers 2010 1 Iceland: Paid-for newspapers in 2010, free papers in 2008. 2 Published 4-7 days/week. 3 Published 1-3 days/week. 4 A wide variety of papers that fill two minimum criteria: they contain editorial material and appear at least once a week. 5 Including MetroXpress, Urban and 24timer. 6 Including members of "Ugeaviserne", a branch organisation for local free weeklies, plus Denmark's largest free paper Søndagsavisen. Different editions for weekdays and weekends are counted as separate titles. The regional editions of Søndagsavisen are counted as one single title. 7 Including members of Finnish Newspapers Association only. 8 Metro, City, 18 Minuter and Extra Östergötland. Two (Metro and City) have several geographical editions, but are counted here as single titles. 9 Papers with audited circulation only.

9. Media: Use and TrendsSource: The report ”Medieåret 2010-2011” - Medienorge, UiB http://medienorge.uib.no/files/publikasjoner/Medie%C3%A5ret%202010-2011-WEB.pdf

10. Media: Use and TrendsSource: The report ”Medieåret 2010-2011” - Medienorge, UiB From Table of Contents:

11. Media Consumption: Stability and changes

12. Newspapers Decline – Especially sale of single copies Niche Newspapers are growing + number of titles

13. Newspaper circulation - daily 1000 ex. Total Made by Jens Barland, datasources: Norway: http://medienorge.uib.no/?cat=statistikk&medium=avis&queryID=337 Sweden: http://www.nordicom.gu.se/?portal=mt&main=showSveStats.php&menu=menu_sve&me=7&media=Dagspress&type=media Single sold copies – ”tabloids”

14. Newspapers US: Falling circulation, eroding business models Source: Robert Picard, in Dagens Næringsliv 10 Feb 2010, page 52

15. My two cases, VG & Aftonbladet: Falling circulation, eroding business models • The big picture: • 50 years • 100 years

16. Theoreticalconcept: Product Life Cycles Source: Philip Kotler, 2009, p. 278 Introduction Growth Maturity Decline • Therefore: Product development, to • increase the growth phase, • extend the maturity phase, or • esthablish a new product • See also: Product strategies + Prices strategies

17. Useof digital media: Internet access at home Data sources: Norway: http://medienorge.uib.no/?cat=statistikk&medium=it&aspekt=tilgang og bruk&queryID=72 Sweden: http://www.nordicom.gu.se/?portal=mt&main=showSveStats.php&menu=menu_sve&me=7&media=PC och internet&type=media

18. The Newspapers are Online Winners

19. Online Mobile is Growing Fast

20. Tablets: Rapid Market Penetration

21. Example: iPod/iPhone/iPad Source: Meeker 2012: Mary Meeker; 2012 Internet Trends; D10 Conference 2012; http://www.scribd.com/document_downloads/95259089?extension=pdf&from=embed

22. http://e24.no/it/nordmenn-kjoepte-en-halv-million-nettbrett-i-fjor/20331343http://e24.no/it/nordmenn-kjoepte-en-halv-million-nettbrett-i-fjor/20331343 Example: iPod/iPhone/iPad Source: Meeker 2012: Mary Meeker; 2012 Internet Trends; D10 Conference 2012; http://www.scribd.com/document_downloads/95259089?extension=pdf&from=embed

23. Example: Online from PC to mobile (India) Source: Meeker 2012: Mary Meeker; 2012 Internet Trends; D10 Conference 2012; http://www.scribd.com/document_downloads/95259089?extension=pdf&from=embed

24. Today's innovation challenge: the mobile

25. Christmas eve single day year-on-year comparison – VG Mobile 2009 2010 2011 Rituals the same, and breaking news seldom distrupt these

26. Mobile Online in Norway 2012Weekly Unique Users: Online trafic statistics for Norway, TNS Gallup: http://rapp.tns-gallup.no/?aid=9072261

27. Facebook – Dominant Social Media

28. TV: The Niches Win

29. Radio: Stability, NRK P1 is Looser

30. Weekly Magazines in Squeeze – launching of many new titles

31. How We Spend Money on Media

32. Differentincomestructure: Traditional newspaper business model + Circulation + Advertising = Income - Costs = Profit Different business logic for different newspapers = Income from circulation = Income from advertising Newspapers operate in two markets

33. http://www.poynter.org/latest-news/mediawire/203357/nytco-reports-668000-digital-subscribers-in-fourth-quarter/http://www.poynter.org/latest-news/mediawire/203357/nytco-reports-668000-digital-subscribers-in-fourth-quarter/ Norway, 2011: A+BT+SA+Fvn: 61 % paperads 39 % papercirc.

34. Eroding Business Models for Newspapers Paper Online Response for manyyears, transformation to online business. However, thelargestshareofincome is still from paper (2011): Online Paper Other 29 % 71 % 0 % Aftonbladet + SvD 19 % 77 % 3 % VG 5 % 76 % 19 % Regional Norwegian newspapers, Source: Schibsted Annual Report 2011Schibsted-owned Still, 80 % ofincome from paper

35. ”The gravity of digitalization” The total effects of many changes: • Broadband: Broader, everywhere, wireless • Many units: From one PC in the house to several units for each family member • User friendly / handy: cellphone  smartphone • Apps: general  specialized (personalized) • Smart-TV … and “smart” everything • Social media: Our dicitalized lifestyle, …more?

36. Program • Changes in the market • Intro • Useful sources • Trends • Responses to the market • How does it affect journalism?

37. «Journalism for the Market» • Purpose: Identify how the market’s impact on media companies influences changes in journalism. Market Journalism is changed over time Technology

38. Theoretical framework Market-driven journalism Media as Institutions Owner Ads. Sources Denis McQuail, 2010, McQuail's mass communication theory. Consumer John H. McManus, 1994, Market-Driven Journalism: Let the Citizen Beware? Media management: Picard, Doyle…

39. Narrowing of the study 1995 2010 ”The gravity of digitalization” ”Paper””Paper and Online””Digital publishing and paper” The newspaper circulation increases, turns, declines Schibsted on stock excange. New strategy: Digital & international Concentration of ownership Market and competition

40. One ofthestrategicalresponses: Develop paper products where the business model still works 4 P’s (Kotler): Product Price Promotion Place

41. Four stories to illustrate practices of segmentationin journalism • Use of segmentation tools • Hunting female readers • Individualization = new income • Specialization in a multi platform strategy

42. Story 1: Aftonbladet’s use of segmentation tools in the newsroom”Who are Aftonbladet’s readers and buyers?” Editor-In-Chief since 2008

43. Four selected progressive target groups

44. InAftonbladet’snewsroom

45. Product Development According to the Selected Target Groups

46. Aftonbladet’s new Sunday newspaper Re-launched January 2010 The conceptual model describes even articles and genres for specific target groups on specific pages Examples: 11 April 2010 

47. ”Dokument”(Tiger Woods) made for Discussing Dahlgrens. ”Mitten”(graphic illustrated news) made for Active Dan. ”Intervju” (celebrity) made for Entertainment Nathalie. ”Läsning”(Wikileak) for Discussing Dahlgrens. Front pageand news has to attract these selected target groups.

48. Story 2: Aftonbladet Hunting for Female Readers • Products specific for targeting female readers 1995 2010 • Several reasons to go for female readers A detail from the Annual Report 2006 

49. Aftonbladet’s Hunting for Female Readers • 1995: Aftonbladet’s extra products specifically targeting female readers: Female content on the new online edition Glossy magazine Sundays Supplement Wednesdays

50. Aftonbladet’s Hunting for Female Readers • 2010 (May) – about 30 female products, represented here by 19 examples: