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The New Tradition in Media

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  1. FIPPB2B CONFERENCE – MUNICH, SEPT 5 & 6, 2002 The New Tradition in Media PAID CONTENT SUCCESSFUL ONLINE BUSINESSES

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  3. WHAT IS PRIMEDIA BUSINESS? • A targeted media company that connects sellers with qualified buyers • 80 b2b publications • 130 websites • 25 trade shows • more than 450 books and directories • more than 60 e-mail newsletters • Total revenues in 2001 of over $300 million • Over 70% of these products are number 1 or 2 in their market • Total estimated 2002 online revenues of $ 8.2 million 3

  4. WHAT IS PRIMEDIA BUSINESS • INDUSTRIES COVERED • Agriculture - Mobile Communications • Construction - Power • Electrical - Printing/converting • Entertainment Technology - Real Estate • Financial Services - Security • Government & Public Service - Telecommunications • Health services - Textiles • Marketing - Transportation • Media - Waste & Environment • Meeting & Event Planning 4

  5. ONLINE PURCHASE DECISIONS SOURCE: SIMBA INFORMATION – E CONTENT PRICING & USAGE REPORT 2002 • Price is main factor that influences buyers of online content. • How do you design online business models to deliver perceived value for money? • What strategies can successfully influence the other three buying criteria? Service & Support 10% Customization Features 18% Price 55% General Features 27% 5

  6. ONLINE STRATEGY • A Spectrum of Values • Media Agnostic • Rational Ubiquity PRIMEDIA’S BASIC PRINCIPLES 6

  7. CREATE A SPECTRUM OF VALUES • Create content for many purposes • Create content that has value. • Raw data and unfiltered news have low value, but refined news and focused analysis have high value, so we focus on creating refined data with many value points. • Work with branded content • Rely on editorial credibility and expertise • Layer context over content • for example, free data on the web may be fee-based when it’s delivered wirelessly - refined and in context - or when it’s in the context of a focused search for immediate use. 7

  8. MEDIA AND PLATFORM AGNOSTIC Our Mandate: • Content must be created to anticipate multiple purposes and media. • Content must be manipulated to fit each unique medium and context. • New content initiatives must be designed with this in mind. 8

  9. RATIONAL UBIQUITY • PRIMEDIA Business content is made available online everywhere there’s a community of users who can use it in the context at hand. • Research databases • Vertical websites and portals • Corporate intranets • Exchanges • Integrated applications • Appropriate value is extracted from each community. 9

  10. FREE VS PAID CONTENT • There will always have to be some free content online • Provide presence • Draw customers • Market and advertise print products • What is free and what is paid? • Know where the perceived value of content lies and the best method to charge your customer • Criteria for determining perceived value: • Type of audience • Time sensitivity • Quality (and Brand) • Update Frequency • Coverage Period 10

  11. PAID CONTENT Source of Revenue: • Subscription Services • Content Licensing • Direct • Indirect • Self Service 3. Micro payments 11

  12. SUBSCRIPTION SERVICES • Derived from editorial created for print and delivered electronically. • Delivered electronically in common formats - xml, html, etc. • New revenue from existing content. • More secure and constant stream of revenue. 12

  13. SUCCESS: WARD’S AUTO 13

  14. SUCCESS: WARD’S AUTO • Ward’s Auto and Wardsauto.com • Reference source on new and archived contact product for auto companies, automotive parts/material suppliers and investment firms, consultants, and governments, who observe the global auto market • collects everything the customer needs to know and makes it available in a user friendly way from spreadsheets to news bulletins • Online Business Model • Free content on samples of data and reference materials and full access to magazine online • Paid subscriptions for value added services • Historical data, global database, advanced search options • provided on annual subscription basis, priced by seat count • estimated revenues in 2002 - $500,000 14

  15. SUCCESS:EQUIPMENT WATCH & IRONMAX.COM 15

  16. SUCCESS:EQUIPMENT WATCH & IRONMAX.COM • Equipment Watch & Ironmax.com • Series of reference books and pricing guidelines for heavy equipment industry • Ironmax.com is online companion site to Equipment Watch directories and books • Online Business Model • Limited free information is available • Subscription service to access equipment management tools online • specificationfinder • ownership and operating costs • used & new equipment listings • rental rates • last auction results • Estimated revenue for 2002 - $1 million 16

  17. CONTENT LICENSING Three types of licensing: • Direct licensing: negotiated deal terms within a defined framework. • Indirect licensing: structured through 3rd party aggregators and syndication companies. • Self-service licensing: user interface from web site facilities 17

  18. 1. DIRECT LICENSING • Negotiated agreements with large research databases and content aggregators: • Factiva • ProQuest • Gale Group • LexisNexis • Wilson • Big Chalk • Extracted data for specific applications: • Tabular data from business magazines for LexisNexis Statistical Universe • Airport data for Universal’s FlightPak. 18

  19. 1. DIRECT LICENSING • Licensing of Editorial Print Content • 80 magazines license to 8 different content aggregators who then sell primarily online. • One agreement across all b2b titles • Licensing of market research, white papers and article packages • Typically covers magazine reader profiles, industry salary surveys, industry outlooks • originally created for print product editorial and marketing purposes • inexpensively repackaged for website sales • 100% flow-through on revenue 19

  20. SUCCESS: PRIMEDIA BOOK GROUP 20

  21. SUCCESS: PRIMEDIA BOOK GROUP • PRIMEDIA Book Group: • produces and sells directories, valuation and pricing guides, and reference materials in CD-Rom, print and databases • Licensing Model: • software and data licensing fees of existing print and electronic material • estimated revenue in 2002 of $3 million • Success: • AC-U-Kwik, the leader in pre-flight planning information for corporate aviation • licensing airport aviation software and data • PRIMEDIA Price Digests, comprehensive valuation guides for automotive dealers and insurance companies • licensing valuation/specification data and software on a wide range of vehicular assets 21

  22. 2. INDIRECT LICENSING • Syndication and distribution agreements: • Screaming Media (intranets, extranets, portals) • FluentMedia (Intranets, extranets, portals) • NewsEdge (corporate intranets) • LexisNexis Web Publisher (extranets) • New York Times Syndicate (newspapers) 22

  23. 3. SELF-SERVICE LICENSING • Enables visitors to “open” PRIMEDIA Web sites to purchase copies of market research studies and individual newsletters. • E-mail articles to a group • Make multiple print-friendly copies • License articles in PDF format for reposting • Order customized paper reprints and e-prints from our exclusive authorized reprint agents 23

  24. SUCCESS: KAGAN AND SIMBA 24

  25. SUCCESS: KAGAN AND SIMBA • Kagan and Simba • Kagan is world’s leading source of media business news and data • Produces US and international databooks, newsletters and conferences • Simba is leader in market research and forecasts in media industry • Produces market research for new and traditional media industries • Online Business Models: • Free information provided on latest news and market information • Free samples of newsletters and analysis • Paid content: • Access to historical databases and full market research reports online. Ability to download research and newsletter articles • Individual items charged as used – charged to credit card on file • $0.95 to $199.95 per item 25

  26. WHAT IS NEXT? • Content must be flexible – adaptable to different platforms that may evolve in the future • Important to have people ready and committed to making content platform agnostic and ubiquitous • Online business models are evolving and being tested all the time • Ultimate goal: 100% paid content online