Profiting through the value chain The newspaper process

2. Profiting through the value chain The newspaper process Gather Store Aggregate Package Distribute Market

3. Profiting through the value chain The newspaper process Gather Newsroom Store “system” Aggregate “Production” Package Distribute Channels Market Promotion

4. Profiting through the value chain The newspaper process New Media Gather Newsroom Store “system” Package Aggregate “Production” Package Self edit Distribute Channels Market Promotion Interaction

5. Profiting through the value chain The newspaper process Print A/V Gather Dynamic Static Store “Database” Aggregate “Value multiplier” Commercial partners Content producers Package Format production Distribute Mass print Telephone Micro print On-line Market Branding Relationship Context

6. Profiting through the value chainPoints of difference

7. Profiting through the value chainPoints of differenceIncrease circulation by 10%

8. Profiting through the value chainPoints of differenceIncrease cover price by 10%

9. Profiting through the value chainPoints of differenceIncrease advertising yields by 10%

10. Profiting through the value chainPoints of differenceReduce distribution waste by 50%

11. Profiting through the value chainPoints of differenceReduce production waste by 50%

12. Profiting through the value chainPoints of differenceCut editorial production costs by 50%

13. Profiting through the value chainPartner points of differenceCirculation • CRM processes to maximise prospecting and retention; • Process management systems to enhance distribution; • Integrated internet and mobile strategies to “migrate” younger readers into newspaper “club”; • Headline notifications via mobile to encourage single copy purchase; • Varying newsprints to lift quality and image of supplements; • Improved bandwidth to maximise distribution at macro and micro levels; • Thought leadership in content device development.

14. Profiting through the value chainPartner points of differenceAdvertising • Outsourcing • Top and bottom line opportunities in re-organised sales operations; • Migration of best practice sales; • Co-operation on selling newspaper medium to international accounts; • Better dissemination of “effective advertising” messages; • Advertising CRM – “the biggest short term opportunity in SFN”; • Copy distribution; • Cold-set printing to heat-set quality; • Creative use of newsprints in supplements, and sub sections; • Development of mobile advertising packages; • Reselling of mobile to trader partners; • Tailoring and fine zoning of advertising.

15. Profiting through the value chainPartner points of differenceOther revenues • Emerging newspaper renaissance driven by mobile; • Development of multi media capabilities: • Newsroom • Advertising sales • Channel management • Subscription sales • Strategic support in areas of New Product Development • Transfer of ideas • Culture and process

16. Profiting through the value chainPartner points of differenceNewsprint • Better cyclical planning and stock control; • Improved production waste; • Improved pagination quota management; • Advanced stock management and logistical support; • Realisation of value of quality in supplements, colour.

17. Profiting through the value chainPartner points of differencePrinting and production • Greater efficiency in terms of materials, staffing and energy consumption; • Distribute print models • Outsourcing • Flexibility • Copy transmission • Improved product quality passed on to readers and advertisers • Development of zoning and tailoring; • Mailroom services, such as tailored copy, addressing, domino printing; bagging, inserting, etc….. • Digital printing: • Out-of market distribution • Tailored copy • Fine zoning

18. Profiting through the value chainPartner points of differenceEditorial • Production efficiencies • Simplified workflows • Tracked and reduced errors • Content management tools • Multi-media • Aggregation • Newsroom • Newsuser • New channels • Mobile • Internet • Out of market • New technologies and formats • Benchmarking • Editorial CRM • Successful interaction with advertising

19. Profiting through the value chainPartner points of differenceIT • Outsourcing: • Multi-media development • Networking/intranets/extranets • Next generation systems • Multi-media • Page planning • Aggregation • CRM

20. Profiting through the value chainPartner points of differenceAdministration • Thought leadership at senior level • Access to decision activators.

21. Profiting through the value chainPartner points of differenceFinancial costs • Improved use of capital: • Outsourcing • “Distribute/print” • Digital print • Reduced “cost per desk” • Newsprint payments; • Newsprint price cycles; • Improved debtor days and cash collection;

22. The new model Marketing Technology Content

23. The new model Marketing Technology Content

24. The new model Matter Function Contextual Personal Niche Regional General Technology Text Distribution Transmission Video Form Audio Interaction Interrogation Data Meta-data Aggregation

25. The new modelThe value plane Contextual Personal Niche Matter Regional General Technology Text Distribution Transmission Video Function Form Audio Interaction Interrogation Data Meta-data Aggregation

26. The new modelThe value plane The content / market dimension Contextual Personal Kiosk Niche Audio visual Digital printing Mobile device “Print-distribute PDF distribution Regional General “Distribute-print”

27. The new modelThe value plane The content / market dimension Contextual Personal €650 Kiosk Niche €1,000 Audio visual Digital printing Mobile device “Print-distribute PDF distribution Regional €500 General “Distribute-print”

28. The new modelThe value plane The business model Subscription Contextual Advertising Personal Kiosk Niche Content Audio visual Digital printing Mobile device “Print-distribute PDF distribution Regional General Archive “Distribute-print”

29. The new modelThe value plane Cross-functional CRM Subscription Contextual Advertising Personal Kiosk Niche Content Audio visual Digital printing Mobile device “Print-distribute PDF distribution Regional General Archive “Distribute-print” CRM process

30. The new modelThe value plane Targeting and tailoring The tailored newspaper Advertising • Content management: • Sector knowledge • Tailoring tools • Channel management Content Niche Digital printing Archive

31. The new modelThe value plane Targeting and tailoring Advertiser demand for targeting Materials costs Available reader interest Digital printing costs time

32. The new modelThe value plane Targeting and tailoring Movies Months Books Magazines Weeks Letter Time to market Newsletters Days Time to Market Mobile Digital printing The media gap Newspapers Hours Minutes Television Radio Telephone Seconds 1 1 10 100 1000 10000 100000 1000000 Audience Audience Alma Media

33. The tipping pointsMedia landscape 2007 (Europe) • Newspaper readership • Circulation down 5% • Readership one year older • PC internet usage up 23% • SMS/MMS doubled in volume • Digital TV = terrestrial TV = mega fragmentation • Digital printing/tailored copy - production costs quartered. • XMO regulations relaxed (in many markets) • International industry consolidation – from 12% to 40%? • Newspaper share of ad revenues down from 33% to 29% • Recruitment cycle down by 18% • Motors/property revenues down 6% • Internet revenues up 30% (but a different 30%)