Transcript Slide 1
The media scenario CHALLENGES AND CHANGES IN THE PRESS ROME 30 MARCH 2007 09h30/ 13h30 PROTOMOTECA - CAMPIDOGLIO NEWSPAPERS | THE MARKET VIEW? NEWSPAPERS | THE MARKET VIEW? NEWSPAPERS | IS THERE A FUTURE? circulations are not growing online is destroying classified pillars broadband is industry’s demise today’s young don’t read AN UNCERTAIN FUTURE? indifference from advertising/ creatives print is dead consumers are ‘time starved’ reluctance to pay for information NEWSPAPERS | THE MARKET VIEW… NEWSPAPERS | OUR JOURNALISTS’ VIEW… NEWSPAPERS | THE MARKET VIEW? “ a sense of impending doom carries most Irishmen through long periods of tranquillity… ” Irish Playwright/ Author, Oscar Wilde (1892) NEWSPAPERS | GLOBAL HEADLINES 1.4 billion people now read a daily newspaper 439M BUYERS & GROWING! Print is NOW the biggest advertising medium in the world with 43% share NEWSPAPERS | GLOBAL FACTS • Advertising revenues up 5.7% in past 12 months; • World's 2nd largest advertising medium (30.2%), exceeding the combined spend of radio, outdoor, cinema, magazines and the internet; • Global circulation sales up 2.36% over 12 months; • Global circulation sales up 9.5% over past 5 years; • Daily titles surpass 10,000 for the first time in history; • More than US$8 billion invested in newspaper technology in the past five years; • Nearly 2 million employees worldwide; Source: W.A.N. World Press Trends © 2006 The media scenario CHALLENGES AND CHANGES IN THE PRESS ROME 30 MARCH 2007 09h30/ 13h30 PROTOMOTECA - CAMPIDOGLIO 2007 | CHANGING INVESTOR PERCEPTIONS? 1. Risk Profile has shifted to the upside 2. Multiples are nearing historic lows 3. “Structural concerns are overdone” 4. “We’re back in bubble territory…” 2007 | WHAT GIVES? • Fragmentation • Media Consumption is NOT mutually exclusive • Online Promise – perhaps not as compelling • Broadband Internet – confounding Audio-Visual • Newspapers Online – Extending Reach • Newspapers: Delivering on what we do best… MARKET DYNAMICS | THE REALITY IS… frag·men·ta·tion [ fràgmən táysh’n ] noun 1. breaking up of something: the process of shattering or breaking up into fragments 2. loss of unity and cohesion: the loss of unity and cohesion and the breakup of something into isolated and often conflicting elements NEWSPAPERS | DOING WHAT WE DO BEST… The Newspaper: The Ultimate Browser • Ultimately portable • Extremely convenient as to time and place • Engender loyalty to title, not medium • Widely accessible worldwide (off/ on-line) • Easily disposable and/ or ‘Cut Out ‘n Keep’ • Very content rich • Non-perishable • Review-able • Cheap to consume NEWSPAPERS | DOING WHAT WE DO BEST… “ It’s amazing that the amount of news that happens every day, always just exactly fits in the newspaper… ” U.S. comedian, Jerry Seinfeld (1992) NEWSPAPERS | REALITY CHECK RE LITY check • NO Paradigm shift… • RISK: Inertia becomes Consumer Apathy • STIMULATE DEMAND = Marketing • Online ( audience aggregation) • Seek EFFICIENCIES for Reinvestment in BRAND MARKETING and INNOVATION • Remember… Local | Local | Local NEWSPAPERS | REALITY CHECK RE LITY check • Attack those “Legacy Costs” • “Free-up” internal inefficiencies and reinvest • Move to a more “flexi” cost base • Invest for the Future | BRAND MARKETING • Vigorous Pricing: Vigorous marketing • Continuous Innovation • Active product development • “meet & then exceed consumer expectations” NEWSPAPERS | REALITY CHECK RE LITY check • Sell the reality that is “Fragmentation” • Newspapers are the mass-market medium of the future, as broadcasts/ online fragments • Newspapers deliver targeted and reliable demographics – not haphazard audiences • Online – don’t be defensive, be aggressive • BUT always insist on an Return on Investment • Build INCREMENTAL audience, revenues & profits • Talk up your business NEWSPAPERS | THE FUTURE… “ I think the papers in this country are better than they’ve ever been. Some of the circulations are declining - but if you look at their full reach, if you add up their printed circulation to the internet circulation, they’re probably extending their reach. ” Rupert Murdoch Chairman and CEO, News Corporation Source: Interview in The Daily Telegraph, 23rd January 2006 NEWSPAPERS | THE FUTURE… the power of the medium… © Ziarul Financiar The media scenario OPPORTUNITIES AND CHANGES IN THE PRESS ROME 30 MARCH 2007 09h30/ 13h30 PROTOMOTECA - CAMPIDOGLIO