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Session: 
Digital Innovation

Title:  
The importance of a flexible 
Paywall system in your digital 
product strategy 

Speaker: 
Håvard Angen Rye
CTO
Gyldendal Norsk Forlag AS
THE GYLDENDAL GROUP
Gyldendal ASA, the holding company of the Gyldendal Group. 

•Listed on Oslo Stock Exchange.
•Annual turnover: 210 mill Euro
•Number of employees: 800
Business areas
•Publishing houses
•Book clubs
•Distribution
•Bookstores
•Digital publishing/on‐line information

                    Gyldendal Access and Payment System
Background

    Everything gets digital


                               System 
   Everything gets personal   support?




     More sophisticated 
      business models
The Digital Business Model
The winner 
          New markets                 takes it all
                                           New products and 
   Scalability                                 services
                      New Business 
                        Models                Time‐to‐
   First Mover                                 market

Architecture                                      Flexibility
  Platform                                          Agility
                 PLATFORM AS A BUSINESS ENABLER
ACCESS – COMPLEXITY AND IMPORTANCE
                                                     Credit card
                                                  Mobile payment 




                                                                                    IN
                                                       Invoice
                                    LE




                                                                                      TE
                                SIB
                                                  Telephone billing




                                                                                        GR
                              VI




                                                                                          AT
                        I   N




                                                                                             ED
                                                     PAYMENT


                                                                                                User hierarchies
Hierarchical products
  Product bundling               PRODUCT                                         USER         Buyer is not the user




                                                    ACCESS/USE
             US
               ER




                                                                                                 LE
                    FR




                                                IP‐address, referring url,
                                          user name/password, code‐in‐book, 
                                                                                            X IB
                      IEN




                                                      group access                        EI
                                                                                        FL
                         DL




                                         Subscriptions, freemium, pay‐per‐click, 
                           Y




                                             pay‐per‐view, metered  access


                                           Gyldendal Access and Payment System
More than
    every second
 a 6 to 9 years old
child is using Salaby
       regularly
SALABY
A successful digital product

A leading position in the printed book market
We moved the users to a fully digital platform

We had the content
The user experience was outstanding
We invested in a platform!
What we needed
A plattform for 
•«Frictionless» business development
•Easy set up and configuration of 
products and pricing model 
•Economics of scale
•Integration capabilities (by design)
10 Content Management Systems
                                                       10 Content Management Systems
Development  history
                                                       40 different web sites
                                                       40 different web sites
                                                       450 mill. NOK
                                                       450 mill. NOK
                                                       500 000 users
                                                       500 000 users
           Starting over

     Separate CMS and content
                                                                  Tibet 3.0



                                                    Tibet 2.0


                           Tibet 1.0



                                  Maturation process
                                  Maturation process

      2 years                                          4 years

                           Gyldendal Access and Payment System
FUNCTIONALITY
                 Multi level 
                                                    Multi level user 
                  product 
                                                      database
                 structure


PCI certification
 (highest level)                                                  Easy integration

                                TIBET
 Cross domain               Access 
    posting                                                         Mis‐use control
                          Management
      User dialogue 
          tools                                                 Segementation/
                                                               campaigns support
                                Discounting

                         Gyldendal Access and Payment System
Access
PRODUCTS
                                                        Test access
                                                        Pricing
                                                        Access rules

                          PRODUCT


   Content                                                Content
 (e.g. Sports)                                         (e.g. Culture)
   Article                                                Article

   Article                                                Article

Content object                                            Article



                 Gyldendal Access and Payment System
Lessons learned
Access management is a strategic issue, 
as well as technical
Access management is complex
Access management is also about 
organizational maturation
The significance of access management is 
hard to communicate
Questions?



Thank you for your attention!
Extra...
THE SYSTEM LANDSCAPE
                                                        BI

 USER        PRODUCT

   Tibet                                            Subscr.




                              Interface
                      (API)
                                                    system
    Access
   Payment




               ERP                                   CRM
             (i.e. SAP)                             (i.e. SAP)



              Gyldendal Access and Payment System
The Tibet Pay wall ‐ Webservices in the templates

  Newssites                                      Streamin to 
    Newssites        Mobile sites
    Web               Mobile sites                  Streamin to 
                                                      TV?
      Newssites
      Web                                              Streamin to 
                                                         TV?
                        Mobile sites
         Web
        News web           Mobile sites                     TV?
                                                         Streaming TV




                                                                                BI

                   API                    USER        PRODUCT
       CMS
      any CMS                                 Tibet




                                                               API
                                             Access                       Webshop
                                            Payment




        DB                            Subscription           ERP             CRM
                                        system           (SAP or other)   (SAP or other)




                         Gyldendal Access and Payment System

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Media Port 2012, Session 3: Importance of a flexible Paywall system