35
Tien Tzuo CEO, Zuora Paywall 2.0 The Reinvention Of Media

Paywall 2.0 The Reinvention Of Media

Embed Size (px)

Citation preview

Page 1: Paywall 2.0 The Reinvention Of Media

Tien TzuoCEO, Zuora

Paywall 2.0The Reinvention Of Media

Page 2: Paywall 2.0 The Reinvention Of Media

Commerce Billing FinanceSubscription Subscription Subscription

500+ customers

$82Mfunding

Zuora foundedSeries A; First

product launchedSeries 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

The Leader in Commerce, Billing and Finance solutions for the Subscription Economy

Offices:Silicon Valley, London,

Sydney, Beijing, Chicago, Atlanta

Page 3: Paywall 2.0 The Reinvention Of Media

Media Industry At A Crossroads

Page 4: Paywall 2.0 The Reinvention Of Media

2009: Death Of Journalism Widely Predicted

Page 5: Paywall 2.0 The Reinvention Of Media

Advertising Revenue at 1950s Levels

Newspapers lost $10 in print advertising for every $1 gained in online advertising

Page 6: Paywall 2.0 The Reinvention Of Media

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)

Page 7: Paywall 2.0 The Reinvention Of Media

Cost Cuts: Staff Slashed To 1978 Levels

Page 8: Paywall 2.0 The Reinvention Of Media

Resulting In A Race To The Bottom

Source: PEW Research CenterState Of The News Media 2013

Of Americans stopped using a news outlet

because of

dissatisfaction over content

31%

Page 9: Paywall 2.0 The Reinvention Of Media

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Some Companies Rebelled Against Free

The New York Times paywall is working better than anyone had guessed

Page 10: Paywall 2.0 The Reinvention Of Media

A New Dawn

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

Page 11: Paywall 2.0 The Reinvention Of Media

Digital Magazine Revenues Predicted To Triple

Source: PEW Research Center State Of The News Media 2013

Page 12: Paywall 2.0 The Reinvention Of Media

Digital Paywalls Are On The Rise

46.7% of newspapers now behind a paywallNews & Tech Stats Aug 2012

Gannet & Co.

GateHouse Media

Lee Enterprises

MediaNews-Digital First

Berkshire Hathaway

Dow Jones Local Media

Times-Shamrock

McClatchy Co.

Swift Communications

Tribune Co.

72.2

31.6

57.7

44.1

57.9

100

75

16.7

17.2

27.8 % Papers With Paywalls

Page 13: Paywall 2.0 The Reinvention Of Media

Western Europe: Online Paid Content Revenue Expected To Rise By 65%

Source: Forrester Research

2012 2017

6,2

+65%

€Billion

10,2

Page 14: Paywall 2.0 The Reinvention Of Media

Wall Street Is A Believer Too

Shares of Gannett, New York Times, and E.W. Scripps are up

Page 15: Paywall 2.0 The Reinvention Of Media

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 increasedSunday remained steady

Page 16: Paywall 2.0 The Reinvention Of Media

We Proudly Support Media Industry’s Transformation

So Where Do We Go From Here?

Page 17: Paywall 2.0 The Reinvention Of Media

Is this theNew Normal?

Page 18: Paywall 2.0 The Reinvention Of Media

Or is the Shift to Digital an Opportunity for Reinvention?

Page 19: Paywall 2.0 The Reinvention Of Media

The First Paywalls:The Difference Between Success And Failure?

Page 20: Paywall 2.0 The Reinvention Of Media

We Proudly Support Media Industry’s Transformation

It’s Never Been About the Paywall

Page 21: Paywall 2.0 The Reinvention Of Media

We Proudly Support Media Industry’s Transformation

It’s About the Customer

Page 22: Paywall 2.0 The Reinvention Of Media

Digital Users Consume MORE NEWS Not Less

31%Spend more time

with news

43%Go to more news

sources than before

Page 23: Paywall 2.0 The Reinvention Of Media
Page 24: Paywall 2.0 The Reinvention Of Media

The Future Starts with Deeper Customer Relationships

Page 25: Paywall 2.0 The Reinvention Of Media

Welt Group: Major newspaper brand in Germany represented on all relevant digital platforms of

iOS, Android and Kindle

Multi-Device Experiences

Page 26: Paywall 2.0 The Reinvention Of Media

NYT Announces Online Portuguese Edition, Bringing Times Journalism To Readers in Brazil

Increased Geographical Reach

Page 27: Paywall 2.0 The Reinvention Of Media

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Pearson Plug-N-Play offers content via APIs to third party app developers

Innovative Content Monetization

Page 28: Paywall 2.0 The Reinvention Of Media

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Cross Content Bundling

News International: Bundling print, web and tablet subscriptions to The Times and the Sunday Times

Page 29: Paywall 2.0 The Reinvention Of Media

New York Times quarterly revenue rises on subscriber growth

Predictable Revenue Model

Page 30: Paywall 2.0 The Reinvention Of Media

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Customer

Increased Geographical Reach

1

Cross Title Bundling

2

Richer Multi Device Experiences

3

Extended Product Line via Innovative Content Packaging

4

Predictable Revenue Model

5

Going Beyond The Paywall

Page 31: Paywall 2.0 The Reinvention Of Media

Confidential and Proprietary Information. Do not distribute beyond intended audience.

Page 32: Paywall 2.0 The Reinvention Of Media

It’s Time for Paywall 2.0Paywall 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

Page 33: Paywall 2.0 The Reinvention Of Media

The Technologies Are Here

For Media

Page 34: Paywall 2.0 The Reinvention Of Media

The Success Stories are Here

Page 35: Paywall 2.0 The Reinvention Of Media

“There Are Three Estates in Parliament, But The Fourth Estate Is

More Important Than All “Edmund Burke, British Politician, 1729-1797

As quoted in “Heroes and Hero Worship In History”

We Proudly Support Media Industry’s Transformation

It’s Time to Start the Journey