This document summarizes key strategies, ideas, and implications for media companies from effective case studies. It discusses various revenue models for media such as advertising, subscriptions, pay-per-view, licensing content, and selling classified listings. It also covers concepts like network effects, two-sided markets, barriers to entry, and strategies for disruption. The document uses examples like Google, Apple, Facebook, newspapers, music industry, and the Schibsted media group to illustrate challenges facing media and new approaches to remaining competitive.

1. Key Case Studies, Ideas & Implica4ons
Effec4ve Strategies for Media Companies
Summarized notes compiled by
Billy D. Aldea-­‐Mar4nez
Head of Digital Mone4za4on
GrupoCopesa
Sunday, 30 June 13

2. 2
Value add
Media Revenue Models
Sense of community Customization
Tangibility Filtering
Reputation ValidationTimeliness
Format
AnalysisVisualization
Ease of use
Design SynthesisRelevance
www.futureexploration.net
Created by Ross Dawson
www.rossdawsonblog.com
Advertising
Brand creative
Pay per click
Pay per action / sale
List rental
Product placement
Content
Subscription
Pay per view
Pay for format
Customised content
Distribution
Syndication
Licensing
Custom feeds
API fees
Community
Membership
Pay for voting
Pay for messaging / SMS
Sales of community
research
Affiliate
Pay per sale
Pay per registration
Pay per download
Classifieds
Listing fees
Transaction fees
Contextual advertising
Leads
Lead generation
Registration for content
Offers
Enquiry matching
Events
Conferences
Roundtables
Showcases
Access to buyers
Merchandising
Books / research
Music / video
Clothing
Other
Partnerships
Revenue share
Profit share
Share of revenue
increase
Platform
Sell distribution platform
License platform
Distribution fees
Serve advertising
Brand
Brand licensing
Sponsor fees
Branded products
Branded content
Sunday, 30 June 13

3. Three Tech Giants
3
Shares: US$34.61
Market Cap: US$289.37B
Shares: US$397.19
Market Cap: US$372.82B
Shares: US$880.55
Market Cap: US$292.29B
Sunday, 30 June 13

4. Three Tech Giants
4
Shares: US$34.61
Market Cap: US$289.37B
Shares: US$397.19
Market Cap: US$372.82B
Shares: US$880.55
Market Cap: US$292.29B
Sunday, 30 June 13

5. 5
Law of Nemesis:
• All purchase decisions are based on value. Commodity markets
emerge when purchasers view suppliers as iden4cal on all factors but
price.
• There is only one winner in a commodity market—the lowest cost
supplier—except in periods of high demand when supply falls short of
demand. In periods of high demand, companies may be fooled into
thinking, “We are differen4ated.” Downturns reestablish commodity
buying.
• To stave off the Nemesis, you must find sustainable advantages. The
strategist must slow the erosion of advantages, and con4nually seek
new high ground represen4ng future compe44ve advantage.
Moreover, the strategist must erect “barriers to entry” to protect
Law of Nemesis:
• All purchase decisions are based on value. Commodity markets
emerge when purchasers view suppliers as iden4cal on all factors but
price.
• There is only one winner in a commodity market—the lowest cost
supplier—except in periods of high demand when supply falls short of
demand. In periods of high demand, companies may be fooled into
thinking, “We are differen4ated.” Downturns reestablish commodity
buying.
• To stave off the Nemesis, you must find sustainable advantages. The
strategist must slow the erosion of advantages, and con4nually seek
new high ground represen4ng future compe44ve advantage.
Moreover, the strategist must erect “barriers to entry” to protect
Sunday, 30 June 13

6. Disrup4ve
Clayton Christensen
Sunday, 30 June 13

7. Metcalfe Law
• In 1993, Robert Metcalfe no4ced that the value of a
telecommunica4ons network is propor4onal to the square of the
number of users of the system. For example, two people with
telephones can only make one connec4on. Five telephones can
make 10 connec4ons, and twelve telephones can make 66
connec4ons. This is now famously known as "Metcalfe's Law" or
network effect: The value of a network is propor4onal to n2, where
Sunday, 30 June 13

8. Network Effect
A network effect (also called network externality
or demand-­‐side economies of scale) is the effect
that one user of a good or service has on the
value of that product to other people.
Network Compliments
– iTunes and Macs/iPods
– “Piracy” and Silicon Valley
Two Sided Markets
– Economic plajorms having two dis4nct user groups that provide each other with
network benefits
Sunday, 30 June 13

9. Network Externali4es & Complements
OS + Office
Suite
MSDOS
Architecture
Applica4on
Developers
CROSS SIDE NETWORK EFFECTSAME SIDE NETWORK
EFFECT
SAME SIDE NETWORK
EFFECT
MONETIZATION
SUBSIDY
DIRECT FEED BACK LOOP INDIRECT FEED BACK LOOP
Sunday, 30 June 13

10. Strategic Network Considera4on
Sunday, 30 June 13

11. How to Disrupt
USERS USERS
ALL MEDIA ARE SOCIAL
OWN THE STANDARD
CREATE A NEW ISLAND OF A UNDER SERVED
NEED
USERS USERS
Sunday, 30 June 13

12. iPOD
iPod iTunes Music
10 billion Songs Available
321,168,000 iPods Sold
45 Paid songs Avg ipod
CROSS SIDE NETWORK EFFECTSAME SIDE NETWORK
EFFECT
SAME SIDE NETWORK
EFFECT
Supply SideMone4za4on Side
MONETIZATION
SUBSIDY
Sunday, 30 June 13

13. Two Sided Markets have a Subsidy & a
Mone4za4on side
Mul4-­‐sided plajorm Subsidy Side Mone4za4on Side
Bars/Discos Women Men
Da4ng Women Men
Magazines Readers Adver4sers
Visa/Master Card Consumers Merchants
Video game consoles Consumers Game Developers
Personal computers Applica4on Developers
Hardware Makers
Consumers
Mobile Internet Portals Content Providers,
Handset makers
Content providers Consumers
Sunday, 30 June 13

14. Music Industry in Crisis?
Sunday, 30 June 13

15. Newspapers Readership
Sunday, 30 June 13

16. Newspapers Readership
Sunday, 30 June 13

17. Newspapers Ad Revenue
Classifieds:
40% Revenue
50% Profit
Sunday, 30 June 13

18. 18
Funded in 1950 witht he first print run
of our newspaper: “La Hora”
2000
Grupo Saieh
becomes the
mayor
shareholder,gai
ning board
control
2007
Laborum.com
is 100%
acquired
In 1990,
Copesa is
acquired by a
private equity
group,
inncluding
Grupo Saieh
2008
Divestment of
prin4ng press
business,
PROSA
2003 Buys 50%
of Paula
Ediciones
2006 Grupo
Dial is officialy
launched
2002
Transformación
Proyecto La
Tercera
2005 Launches
Diario 7
2003 Relaunches
Newspaper La
Hora into a free
daily paper
2005
Inaugura4on of
the Planta
Prosa
2007 Papelera
FPC is divested
2005
Grupo Dial is
created with
the aquis4on
of the first
radio sta4on,
Radio Duna
2006 radio
Sta4ons,
Carolina y
radio
Beethoven are
aquired
2007
Purchase of
radio Disney y
Radio Paula
2008
Aquis4on of
Zoom
Inmobiliario
2010
Aquisi4on of
Canal 22
2010
First Equity
Sale of
Seminarium
2011
Investment in
Betazeta
2011
Que Pasa
Mineria is
launched
2011 Business
Newspaper
Pulso is
launched
Our History
2012 Launch of
HOLA Chile
2012 Luanch of
QP Energía
2007 Radio
Nina & Radio
Sintonía are
aquired
2008
Investment in
events
business,
Seminarium
2009
Launch of
Zoom
Automotriz
2011 Daily
Coupons
Agrupemonos is
launched
2012 Launch of
Now
Producciones
2012 New
Digitales brand
2011 Final equity
divestment of
Seminarium
2012
Interna4onal
Development
Created a
Regional
Permium Ad
Network
Sunday, 30 June 13

19. Show me the money
Revenue 2012US$2.44B
27 countries
Norway
Sweeden
Switzerland
Ireland
Europe
Latin America
South East Asia
Properties
newspapers
television
film
publishing
multimedia and mobile services.
Formats
paper, the Internet, television,
cinema, video, DVD and wireless
terminals (mobile telephones,
PDAs
Sunday, 30 June 13

20. Where is the money?
20
Sunday, 30 June 13

21. Schibsted Case Study
00 Trajectory Market
Value
2040
The last Newspaper
V
T
Don’t Look at the P&L => Look at the strategic implica4ons and react before it’s
reflected on the P&L
Sunday, 30 June 13

22. Schibsted Org Chart Evolu4on
Corporate
Print Online
News Classifieds Online
Best People of Print
Reproduce
The big change was culture
1 2
3
Threat of
Cannibaliza4on
Sunday, 30 June 13

23. Digital vs Tradi4onal Publishing
Publish Publish Publish Edit
Gather Gather Edit Publish
Digital
Publishing
Tradi4onal
Publishing
Rapid and frequent news updates as the story develops
Delayed yet well researched analysis, slow yet highly reliable
Sunday, 30 June 13

24. Demand Media
One
•Search Data Query from
Two
•Cross reference with CPC Data
Three
•Outsource to Freelancers
Four
•MoneFze with Google
One
•Editorial Guidline
Two
•Current Events
Three
•Produce News
Four
•MoneFze with Brands
Sunday, 30 June 13

25. Platform Mix
(Scalability)
Market Growth
Relative Market Share
Stars Question
Marks
Dogs
Cash
Cows
Classifieds
Strong Network effects
Events/Webinars/Books
Weak Networks Effects
Publishing/Display
Strong Network effects
Professional Services
Weak Network effects
Sunday, 30 June 13

26. USA (English) + Spanish + Chile
• When looking at paid downloads a totally different global distribu4on can be observed. The US is the largest market and covers roughly 40%
of the daily paid downloads worldwide in June. The UK and Germany rank second and third respec4vely and are followed by Japan.
Sunday, 30 June 13

27. 27
Media Consump4on
(Newspaper Associa4on of America)
Sunday, 30 June 13

28. Adver4sing??
Sunday, 30 June 13

29. The 10 Power Laws of Innova4on
Power Law 1: Don't think "new product" -­‐ think social
value.
Power Law 2: Think social value before "tech".
Power Law 3: Enable human agency. Design people into
situa4ons, not out of them.
Power Law 4: Use, not own. Possession is old paradigm.
Power Law 5: Think P2P, not point-­‐to-­‐mass.
Power Law 6: Don't think faster, think closer.
Power Law 7: Don't start from zero. Re-­‐mix what's
already out there.
Power Law 8: Connect the big and the small.
Power Law 9: Think whole systems (and new business
models, too).
Power Law 10: Think open systems, not closed ones.
John Thackara
Sunday, 30 June 13

30. Tech Media vs Content Media
Premium
Adver4sers
Performance Adver4sers
Tech Content
UGC Tabloid EditorialCollatedSocialAlgorithm
Low
High
Low
High
Sunday, 30 June 13

31. Mone4zing App Models
Produc4vity
Entertainment Evergreen Content
Current Affairs Content
Tech Content
Recurring
Spot Buy
Sunday, 30 June 13

32. Current Brand
Device Mone4za4on Framework
KniPng/Cooking/Deco/Beauty/Others
Content Aggregator
Magazine Mast Heads
Ads PFD
IAP
Sunday, 30 June 13

33. Content/Func4onality Mone4za4on
Framework
Content
FuncFonalityLow
High
High
Free
Free/Paid
Paid
Free/Paid Paid
Free/Paid
Paid
Paid
IAP
Sunday, 30 June 13

34. Resources & Corporate Culture
Value Created Value CapturedValue CapturedValue Created
Yes No
Yes Disney
GE
Apple
Xerox PARC
New Media
Apple
No Microso|
Oil & Gas Mergers
American Airlines
IBM (Circa 1990)
Intel (DRAMS)
Sunday, 30 June 13

35. The Brandsphere
Sunday, 30 June 13

36. 36
Sunday, 30 June 13

37. 37
1. To increase the number of people
potentially exposed to your ideas,
you must increase your reach. Get
more followers, email subscribers or
Facebook likes.
2. You have to learn to be heard
over the noise of social media. By
being more attention grabbing or
using contra-competitive timing.
3. Your content must include
motivation-raising features.
Combined relevance, calls-to-action
and us vs them are examples of
contagious “hooks.”
Sunday, 30 June 13

38. Quotes
• Best Performing companies have very different
answers.
• Opportunity should match company resources.
• Synergy is another word for Conflict of
Interests, the sum is greater than the parts.
• Aim to Create value and Capture or the very
least Captures someone else’s value crea4on.
Sunday, 30 June 13

39. Ques4ons and Answers
Thank you
Billy D. Aldea-Martinez
Head of Digital Monetization
GrupoCopesa
billy.aldea@grupocopesa.cl
www.aldea-martinez.com
@aldeamartinez
Sunday, 30 June 13