1. Slide 1 − Zuora Confidential, not for distribution beyond intended recipientSlide 1 − Zuora Confidential, not for distribution beyond intended recipient
Paywall 2.0:
TheReinventionofMediawith Zuora
BrianBell,Zuora
@brianbell123
Enabling PAYWALL 2.0 for the Media Industry
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Commerce Billing Finance
Subscription Subscription Subscription
TheLeaderinCommerce,BillingandFinance
solutionsfortheSubscriptionEconomy
500+ customers
$82M funding
Zuora founded
Series A; First
product launched
Series B, Zuora
featured in WSJ
Series C; Zuora
announces 1B in
contracted revenue
Series
D, Trademarks
Subscription
Economy; EMEA
expansion
Zuora wins
AlwaysOn Company
of the Year Award;
expands to Asia
Four+ Years of Incredible Growth
Offices:
Silicon
Valley, London, Sydney,
Beijing, Atlanta
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What is the
3
By2015, 35% of Global 2000 companies will generate revenuethrough
subscription-based servicesand revenuemodels.
1999 Today
Subscription Economy?
BUY NOW SUBSCRIBE
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4
Businesses Can Subscribe
To Anything
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5
Consumers Can Subscribe
To Anything
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High Tech SaaS Cloud Infrastructure
TelecomDevicesMedia
Z-Business Works Across All Industries
8. Slide 8 − Zuora Confidential, not for distribution beyond intended recipientSlide 8 − Zuora Confidential, not for distribution beyond intended recipient
The Myth Of Free Was Killing The Industry
“By having a paywall you are cutting your journalism off from the
world.” – Alan Rusbridger, Guardian Editor-In-Chief (Jan 2010)
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9
Advertising Revenue At 1950s Levels
Newspapers lost $10 in print advertising for every $1
gained in online advertising
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Consumers Dissatisfied With Content
Source: PEW Research Center
State Of The News Media 2013
Of Americans stopped
using a news outlet
because of
dissatisfaction
over content
31%
11. Slide 11 − Zuora Confidential, not for distribution beyond intended recipientSlide 11 − Zuora Confidential, not for distribution beyond intended recipient
Today: The Industry Is Beginning To Turn Around
Pearson Sees
Digital Income
Beating Print
Publishing
…subscription sales
are rising faster
than ad dollars are
falling…. NYT
Digital
subscribers now
outnumber
print…. FT
33% of our
revenues coming
from subscriptions
… Dallas Morning
News
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12
There Is A Big Shift From Print To Digital
“Our digital subscribers now outnumber print, and digital is half of
FTs revenue”
– Financial Times
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13
Digital Users Consume MORE NEWS Not Less
31%
Spend more time
with news
43%
Go to more news
sources than
before
14. Slide 14 − Zuora Confidential, not for distribution beyond intended recipientSlide 14 − Zuora Confidential, not for distribution beyond intended recipient
Digital Magazine Revenues Predicted To Triple
Source: PEW Research Center State Of The News Media 2013
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Digital Paywalls Are On The Rise
46.7% of newspapers now behind a paywall
News & Tech Stats Aug 2012
72.2
31.6
57.7
44.1
57.9
100
75
16.7
17.2
27.8
Gannet & Co.
GateHouse Media
Lee Enterprises
MediaNews-Digital First
Berkshire Hathaway
Dow Jones Local Media
Times-Shamrock
McClatchy Co.
Swift Communications
Tribune Co. % Papers With Paywalls
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16
Wall Street Is A Believer Too
Shares of Gannett, New York Times, and E.W.
Scripps are up
17. Slide 17 − Zuora Confidential, not for distribution beyond intended recipientSlide 17 − Zuora Confidential, not for distribution beyond intended recipient
Bottom Line: Paywalls Can Work
Source Michael Nevradakis “May The Best Paywall Win” University of Texas Austin
Paywalls show signs of positively impacting print circulation
Print Circulation Before
Paywall
Print Circulation After Paywall
New York Times Weekday declined by 7.8%
Sunday declined by 5.3%
Weekday declined by 5.6%
Sunday declined by 0.1%
Wall Street Journal Paywall for 15 years Very gradual decline
Boston Globe Declined by 5.3% Sunday increased by 0.8%
Dallas Morning News Declined by 16.1% Weekday declined by 5.5%
Sunday declined by 1%
Arkansas Democrat Gazette - Weekday increased
Sunday remained steady
18. Slide 18 − Zuora Confidential, not for distribution beyond intended recipientSlide 18 − Zuora Confidential, not for distribution beyond intended recipient
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The Next Big Challenge: Media Companies
Must Take Advantage Of 5 Key Opportunities
1. Increased geographical reach
2. Multi Device Experiences
3. Cross Content Bundling
4. Predictable Revenue Model
5. Innovative Content Monetization
20. Slide 20 − Zuora Confidential, not for distribution beyond intended recipientSlide 20 − Zuora Confidential, not for distribution beyond intended recipient
NYT Announces Online Portuguese
Edition, Bringing Times Journalism To Readers in
Increased geographical reach
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Welt Group: Major newspaper brand in Germany
represented on all relevant digital platforms of
iOS, Android and Kindle
Multi-Device Experiences
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Pearson Plug-N-Play offers content via
APIs to third party app developers
Innovative Content Monetization
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Cross Content Bundling
News International: Bundling print, web and tablet
subscriptions to The Times and the Sunday Times
24. Slide 24 − Zuora Confidential, not for distribution beyond intended recipientSlide 24 − Zuora Confidential, not for distribution beyond intended recipient
New York Times quarterly revenue rises on
subscriber growth
Predictable Revenue Model
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25
We Call This Paywall 2.0
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26
Problem: Today’s Systems
Can’t Enable Paywall 2.0
ERP
Print
Circulation
Simple
E-Commerce
Product & Content Silos
Not Subscriber-Centric
No Global Reach
Print Only/Single Device
Rigid Packaging Options
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27
1
2
3
4
5
Subscriber Centric Analytics
Multi-Device Engagement
Creative Content Monetization
Subscription Order Management
Global Digital Commerce
The Industry Needs New Tools That Are Ready For …
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Creative
Content
Monetization
Global
Commerce
Subscription
Mgmt
Multi Device
Engagement
Subscriber
Analytics
Sample Code
Extensive APIs
Self Service
Commerce Pages
Packages & Bundles
Charge Models
Rate Plans
Product Definition
Audit Trail
Renewals
Amendments
Subscription Orders
Rating
Multi-Currency
Taxation
Secure Payments
Ad Hoc Reporting
Billing & Cash Reports
Revenue Reports
Subscriber Reports
28
Payment Gateways Accounting/GLCRM Systems Analytics
E C O S Y S T E M
CMS Systems
For Media
Delivering Paywall 2.0 For The Media Industry
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29
Implement Creative Content Monetization Strategies
Flexible Pricing Models
Create one-
time, recurring, usage charges
Setup different subscription
plans, durations, and pricing
tiers
Manage discounts and
promotions
Track
consumption, overages, and
included units
Use Hundreds of Different
Currencies
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Subscription Bundling
30
Deliver Cross Content Bundling With
Multi-Element Subscriptions
Bundle multiple items on a
single subscription
Consolidate billing for
print, digital and other content
formats
Add, remove or change items
without disrupting billing
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31
Multi-Device And Multi-Channel Subscriber Engagement
Platform Extensibility
Create commerce pages with
point and click-tools
Use sample code libraries to
launch faster across multiple
channels and devices
Drive subscriber self-care,
including account and
subscription management
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Billing & Payment Automation
32
Automate Billing And Payment Operations
On A Global Scale
Multi-Currency billing and
payments
Support for over 200
currencies, major credit cards
and 9 direct debit methods
Payment exception handling
Taxation (inclusive and
exclusive)
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Subscriber Reporting
33
Measure Key Subscriber Metrics
Reporting on key metrics like
MRR, TCV, Churn, Renewals
Pre-built
billing, payments, subscription
and revenue reports
Ad-hoc reporting capabilities
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34
Z-Business Enables Key Processes Critical To Paywall 2.0
Payment Gateways Accounting/GLCRM Systems Analytics
E C O S Y S T E M
35. Slide 35 − Zuora Confidential, not for distribution beyond intended recipientSlide 35 − Zuora Confidential, not for distribution beyond intended recipient
It’s Time for Paywall 2.0
Paywall 1.0 Paywall 2.0
A simple toll-gate Business Model Transformation
Paywall-Centric Relationship-Centric
Splintered Subscriber View Unified Subscriber View
Single Platform Monetization Cross Platform Content Bundling
Rigid Monetization Strategies Flexible Monetization Strategies
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Thank You
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Pearson Plug-N-Play goes
digital and monetizes its
content in less than
30 days.
Zuora helped us to not only put in a next-generation
paywall, but has empowered us to go beyond publishing
. Tom Hall, VP Education Technology Partnerships
Case Study
GROW
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Z-Business for Media gives us deeper insight into our
readers, helps us to forecast future their behavior and
ultimately helps us to create a better, more relevant customer
experience.
Case Study
GROW
Andrew Lam-Po-Tang, Chief Information Officer
Z-Business For Media is Fairfax’s master
subscription system.
Multiple titles such as The Age and The
Sydney Morning Herald will leverage
Zuora to increase subscriber revenues
and reduce reliance on advertising
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Case Study
GROW
Zuora manages both print and
digital subscriptions for the
Times and the Sunday Times,
representing a combined
subscriber base of over 300k
subscribers.
Katie Vanneck-Smith, Chief Marketing Officer
Zuora helped us take control of our customer relationships
and, unlike other systems Z-Business for Media has been
designed around the future of subscription models, not the
past
Notes de l'éditeur
Businesses can subscribe to anything these days. Like Servorp for office space, RingCentral for business phone systems, Zendesk for helpdesk, and Concur for expense management
When we began Zuora 5 years ago, we never imagined how pervasive subscriptions would be. Besides, subscribing to moves and music and newspapers like the FT or the NYTimes, , today’s consumers can subscribe to just about anything – Car services like zipcar, Home Security with Iris (carried by Lowes), Online games (IGN entertainment), shaving (dollar shave club), and more!
I’d like to talk specifically about the Media industry and where we see the opportunity for media companies to thrive…
A few years ago, the debate about whether or not to charge for content online raged on. Most media outlets stuck with the theory that consumers would never pay for digital content, and that online content should always be free. But this idea of offering content for free was quickly killing the media industry. Major newspapers and publishing houses folded and went out of business.
Advertising revenues fell to an all time low. And digital advertising did not make up for the loss in revenues from the decline of print advertising.
Others outlets that are still around have taken to cost cutting as the way to survive. And the hardest hit resources in cost cuts are newsroom staff and journalists. But cost cutting is just an accelerator to the race to the bottom. Consumers have noticed the loss in quality journalism as a result of these measures. PEW research indicates that a third of the users that turned away from news outlets did so because they were dissatisfied with the quality of content they were getting.
Today, there are signs of hope. Simple paywalls have stopped the bleeding. And today there are signs of hope that the media industry can turn itself around
There’s been a big shift from print to digital, and at many publications, digital subscribers are starting to outnumber print.
There’s a silver lining in the shift to digital. Studies show that digital users actually consume more news not less.The shift to digital brings opportunity. Studies show that digital consumers actually consume more news not less once they start using a mobile or tablet device to access news.31% of mobile/tablet users turn to EVEN MORE NEWS SOURCES than they did prior to the device43% % of mobile/tablet users ADD TO THE NEWS they consumeSource: PEW Research CenterState Of The News Media 2013
And beyond newspapers, magazines are benefitting from the shift to digital as well. Digital magazine revenues are on the rise, even as print is falling
It’s not just big name brand newspapers that are adopting paywalls.A look at the hundreds of newspapers offered by the top 10 publishing houses across small, medium and large markets clearly shows how widely paywalls are taking holdAs of 2012, 46.7% of all newspapers offered by the top 10 publishers in America now have paywalls.
Media stocks are starting to turn around based on the success of paywalls. Shares of NYT, Scripps and Gannett are up.
A researcher at UT Austin researched a number of paywalls to determine if they could potentially preserve print circulation while attracting digital subscribers.Surprisingly, he found that digital paywalls seem to have a positive impact on print circulation revenue.Prior to paywalls, many newspapers showed a sharp decline in print circulation.After implementing paywalls, newspapers showed a much slower rate of decline in print circulation (NYT and Dallas Morning News). And in some cases like the Boston Globe and the Arkansas Democrat Gazzette, print circulation actually increased.
I want to share with you the best practices that we’ve observed in how to shift your business model … how to monetize…
The New York Times is extending it’s reach well beyond it’s New York roots. Seeing opportunity in a growing economy, affluent readership and an international business hub, the New York Times announced that there will be an online Portuguese version to serve readers in Brazil in 2013. This DIGITAL ONLY edition will publish 30-40 articles per day from local Brazilian writers and staff. They made a similar announcement this year with a DIGITAL ONLY Chinese language edition.
Axel Springer, one of the largest media companies in Europe publishes 230 newspapers, has over 160 digtial offerings and over 120 apps. Axel’s “Welt Group” which is the largest newspaper in Germany is one of the most successful adopters of interactive media experiences. It’s the first newspaper brand in Germany to be represented on all major digital devices.The WELT Group also implemented Touchcode at the end of 2011 for a specific project that aimed to bridge the gap between the offline print publication, ICON, with the online outlet, The Iconist. The printed issue included a removable business card, which when touched to the screen in its Apple iPad app, downloads a free edition of The ICONIST.
Pearson is going beyond publishing, and monetizing digital content in creative ways by making their content available to app developers via APIsDK GuidesLightning Thief, Chronicles of Narnai
News International is offering creative bundles of the times and the Sunday times with mixed print and digital offerings.
The New York Times is now building a steadily growing subscriber revenue base, which is overtaking it’s advertising revenues.
But today’s systems don’t enable Paywall 2.0
Z-business allows you to implement creative monetization strategies
Z-business allows you to combine multiple items (eg print and digital) on a single subscription
Z-Business allows you to automate billing and payment operations at Global scale
Z-Business allows you to measure key subscriber metrics
Others outlets that are still around have taken to cost cutting as the way to survive. And the hardest hit resources in cost cuts are newsroom staff and journalists. But cost cutting is just an accelerator to the race to the bottom. Consumers have noticed the loss in quality journalism as a result of these measures. PEW research indicates that a third of the users that turned away from news outlets did so because they were dissatisfied with the quality of content they were getting.
