dual transformation: two routes to resilience clark … transformation a 1. step-change reduction in...
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Dual Transformation:Two Routes to Resilience
iClark G. GilbertPresident and CEO
@ClarkGilbert
Page 2 Trusted voices of light and truth reaching hundreds of millions of people worldwide
Our Mission
The Trusted Digital Voice
Note Presentation: Rebuild Your Core While You Reinvent Your Business Model
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Net NewGrowth
Displacement
"Overall, the newspaper industry's involvement with the Internet has been one where it had a lot to lose and it's been trying not to lose it, as opposed to starting from scratch and having a lot to win."
--President of Online Newspaper Division
Finding New Market Growth
EstablishedBusiness
DisruptiveBusiness
Growth
Starts Outside Established Business
Dual Transformation
Legacy Separate Disruptive
Transformation A Transformation B
Organization Disruptive Organization
Reposition the core around a Post-disruption “Job to be done”
Create a Separate Organization with Separate Financial Structure to Target
Create a Modular “Exchange Teams” between Legacy Core and
The Trusted Digital Voice
Job-to-be-done Structure to Target Disruptive Growth
Legacy Core and Disruptive New
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Transformation A1. Step-change reduction in content costs
Dual Transformation in Content
p g2. Differentiated Content: Invest where you can be
“the best in the world”Tranformation B1. Digital only, not digital first
The Trusted Digital Voice
2. Hire digital DNA
Step-change Cost Reductions:The Huffington Post vs. NYT
Unique Users Head Count
05
101520253035
0200400600800
100012001400
New York Huffington
The Trusted Digital Voice
0New York Times Huffington Post
New York Times
Huffington Post
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Significantly lowering cost per story in traditional news gathering, but . . .
$250 $227
$550
$0
$50
$100
$150
$200
$ $227
$143$119
$75
$20
The Trusted Digital Voice
“The web favors things that are narrowly
comprehensive. That is everything about something.
Differentiation: Where can you be the 'Best in the World'
p y g g
Newspapers, by contrast, are variety shows;
something about everything.”
– Lisa Williams, founder, PlaceBlogger
The Trusted Digital Voice
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• Strengthening the Family
• Faith in the Community
Differentiation: Deseret News Six Areas of Emphasis
• Faith in the Community
• Care for the Poor
• Values in the Media
• Excellence in Education
The Trusted Digital Voice
• Financial Responsibility
Faith-based Segmentation of U.S. PublicSix Defining Factors Used in Segmentation
Segment 1
Tolerant
Believers
27%
Segment 2
Devoted
Denomin‐
ationalists
16%
Segment 3
Secularists
12%
Segment 4
Fence
sitters
14%
Segment 5
Humanists
18%
Segment 6
Strugglers
13%
National
Total
LDS
Sample
Factor 1: ReligiousFactor 1: Religious
Devotion5.80 5.82 2.37 4.37 3.74 4.95 4.72 6.08
Factor 2: Helping
Others5.56 5.15 3.82 3.79 5.02 4.80 4.84 5.36
Factor 3:
Commitment to
Marriage
4.79 4.42 3.47 4.22 4.82 2.95 4.26 4.79
Factor 4: Teaching
Children5.27 4.86 3.78 3.23 5.34 4.44 4.64 5.43
The Trusted Digital Voice
Factor 5: Decline in
Moral Values6.03 6.08 2.93 4.00 3.98 5.14 4.91 6.45
Factor 6: Many
Religions Lead to
Heaven
6.21 2.92 3.46 5.72 5.57 5.63 5.10 3.70
Source: DMC Research Panel, Cathy Chamberlain
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St l
56% “Niche” = Like-Minded Believers
Like-minded Tolerant Believers
27%
Devoted Denominationalists
Humanists18%
Strugglers13%
Like minded Believers
The Trusted Digital Voice
16%
Secularists12%
Fence Sitters14%
Source: DMC Research Panel, Cathy Chamberlain
Family and Faith, reported with rigor
The Trusted Digital Voice
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Deseret News Sunday National Print Edition
2012 Growth: Fastest Growing U.S. NPFastest Growing U.S. NP
80,000
100,000
120,000
140,000
160,000
180,000
The Trusted Digital Voice
‐
20,000
40,000
60,000
Transformation A1. Step-change reduction in content costs
Dual Transformation in Content
p g2. Differentiated Content: Invest where you can be
“the best in the world”Tranformation B1. Digital only, not digital first
The Trusted Digital Voice
2. Hire digital DNA
Note Presentation: Rebuild Your Core While You Reinvent Your Business Model
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Digital Only (Not Digital First)
120
Audience Penetration*
40
60
80
100
The Trusted Digital Voice
Source: Harvard Business School Newspaper Study*Unique Page Impressions/Circulation
0
20
0 10 20 30 40 50 60 70 80 90
Percentage of Content NOT in Newspaper
1. Digital Only, Not Digital First
The Trusted Digital Voice
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Digital Only, Not Digital First: The Rule of Thirds
The Trusted Digital Voice
•Remote Contributors - Deseret Connect
Web-Only Strategies
•User-Generated Content – KSL Classifieds, OK.com
•Web Aggregation – Linkoffs, Roundups, Web Briefs
•Photo Galleries Lists Databases Contests Quizes
The Trusted Digital Voice
Photo Galleries, Lists, Databases, Contests, Quizes
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Hire Digital DNA: DDM Team did not Come to Work for a Newspaper
The Trusted Digital Voice
Transformation A1. Step-change reduction in costs and operations2 E l d d f
Dual Transformation in Business Models
2. Explore reduced frequency3. Subscription Optimization—Print and DigitalTransformation B
1. A Digital Buyer Needs a Digital Seller
The Trusted Digital Voice
2. New Channels are the Difference between A & B
3. Digital Marketplaces (Not Digital Publishing) will win
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The Good News: Newspaper Made $ in 1950
The Trusted Digital Voice
Transformation A1. Step-change reduction in costs and operations2 E l d d f
Dual Transformation in Business Models
2. Explore reduced frequency3. Subscription optimizationTransformation B
1. New Channels are the Difference between A & B
The Trusted Digital Voice
2. A Digital Buyer Needs a Digital Seller
3. Digital Marketplaces (Not Digital Publishing) will win
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New Channels are the Difference between Transformation A and Transformation B
Legacy Media Sales Channel Revenue Has More Than Doubled Since 2009
Meanwhile, Dependence On Legacy Channels Has Been Cut By Half
100%
30%
40%
50%
60%
70%
80%
90%
$ UP% DOWN
Total $*
90%
55%
45%
The Trusted Digital Voice
2009 2010 20110%
10%
20%
2009 2010 2011*Actual Revenue Numbers Not Disclosed
A Digital Buyer Needs a Digital Seller
The Parable of
the11th Floor
The Trusted Digital Voice
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A Digital Buyer Gets a Digital Seller
The Trusted Digital Voice
Digital Services: Marketplace Companies, not Publishers are Winning
The Trusted Digital Voice
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Digital is now a foundational core businessTotal DDM Revenue
Re
ven
ue
2009 Revenue
2010 Revenue
2011 Revenue
2012 Budget
The Trusted Digital Voice
Transformation AWho We Admire
Transformation B Benchmarks
Transformation A & B
The Trusted Digital Voice
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1 2 3
Key Overall Content Takeaways
1 2 3
Dual Transformation• There are 2
Transformations, not one
Transformation A Content
1. Step-change reduction in
costs2
Transformation B Content
•New Channels Key to
Transformation Bi i
The Trusted Digital Voice
•Modular Rules around Exchange
Teams
2. Explore reduced
frequency3. Subscription
optimization
•Digital Buyer Gets a Digital Seller
•Marketplace is key to new
revenue growth
1 2 3
Key Overall Business Model Takeaways
1 2 3
Dual Transformation• There are 2
Transformations, not one
Transformation A Content
• Step-change cost reductions
• Invest where you
Transformation B Content
•Digital Only, Not Digital First
•Build Digital DNA
The Trusted Digital Voice
•Modular Rules around Exchange
Teams
can be the “best in the world”
Note Presentation: Rebuild Your Core While You Reinvent Your Business Model