1. Market Challenges for Scandinavian Media 11.2.2013 Jens Barland @jbarland + jens.barland@media.uio.no + jens.barland@hig.nojens.barland@media.uio.nojens.barland@hig.no

2. Background and Research Jens Barland: PhD-project: «Journalism for the Market», IMK – University of Oslo (LINK to e-book) (LINK to e-book) Associate Professor in Media Management and Innovation – Gjøvik University College 20 years background in the media as editor, director and journalist – Aftenposten, Stavanger Aftenblad, Dagbladet MA in IR: «Press Freedom and Globalisation» (LINK to e-book) (LINK to e-book)

3. Program Changes in the market – Intro – Useful sources – Trends Responses to the market How does it affect journalism? From the case studies in my research

4. Intro The simple story: What happened? Digitalization: – Newspapers + Online news + Television + Radio + Books + Advertisements + Information overload + How we live and use media…

5. Transformation to digital distribution 1995 Newspaper From 1995 Online edition: Growth in use, content, roles… Distribution on mobile, smartphones and iPad represent the growth and diversification in digital distribution

6. Useful Sources on Scandinavian Media Scandinavia: Nordicom (University of Gothenburg) Industry: MBL (mediebedriftene.no) Tidningsutgivarna (tu.se) Mediearbejdsgiverne.dk Norway: Medienorge (University of Bergen) Sweden: Nordicom Denmark: http://www.statistikbanken.dk/18

7. Scandinavia: Trends and Statistics http://www.nordicom.gu.se/eng.php?portal=&main= http://www.nordicom.gu.se/eng.php?portal=&main

8. Scandinavia: Trends and Statistics Example: Number of newspapers 2010 1 Iceland: Paid-for newspapers in 2010, free papers in 2008. 2 Published 4-7 days/week. 3 Published 1-3 days/week. 4 A wide variety of papers that fill two minimum criteria: they contain editorial material and appear at least once a week. 5 Including MetroXpress, Urban and 24timer. 6 Including members of "Ugeaviserne", a branch organisation for local free weeklies, plus Denmark's largest free paper Søndagsavisen. Different editions for weekdays and weekends are counted as separate titles. The regional editions of Søndagsavisen are counted as one single title. 7 Including members of Finnish Newspapers Association only. 8 Metro, City, 18 Minuter and Extra Östergötland. Two (Metro and City) have several geographical editions, but are counted here as single titles. 9 Papers with audited circulation only.

9. Media: Use and Trends Source: The report ”Medieåret 2010-2011” - Medienorge, UiB http://medienorge.ui b.no/files/publikasjo ner/Medie%C3%A5 ret%202010-2011- WEB.pdf

10. Media: Use and Trends Source: The report ”Medieåret 2010-2011” - Medienorge, UiB From Table of Contents:

11. Media Consumption: Stability and changes

12. Newspapers Decline – Especially sale of single copies Niche Newspapers are growing + number of titles

13. Newspaper circulation - daily 1000 ex. Made by Jens Barland, datasources: Norway: http://medienorge.uib.no/?cat=statistikk&medium=avis&queryID=337http://medienorge.uib.no/?cat=statistikk&medium=avis&queryID=337 Sweden: http://www.nordicom.gu.se/?portal=mt&main=showSveStats.php&menu=menu_sve&me=7&media=Dagspress&type=mediahttp://www.nordicom.gu.se/?portal=mt&main=showSveStats.php&menu=menu_sve&me=7&media=Dagspress&type=media Total Single sold copies – ”tabloids”

14. Falling circulation, eroding business models Source: Robert Picard, in Dagens Næringsliv 10 Feb 2010, page 52 Newspapers US:

15. Falling circulation, eroding business models My two cases, VG & Aftonbladet: The big picture: 50 years 100 years

16. Product Life Cycles Theoretical concept: Source: Philip Kotler, 2009, p. 278 Introduction Growth Maturity Decline Therefore: Product development, to - increase the growth phase, - extend the maturity phase, or - esthablish a new product See also: Product strategies + Prices strategies

17. Internet access at home Use of digital media: Data sources: Norway: http://medienorge.uib.no/?cat=statistikk&medium=it&aspekt=tilgang og bruk&queryID=72 Sweden: http://www.nordicom.gu.se/?portal=mt&main=showSveStats.php&menu=menu_sve&me=7&media=PC och internet&type=media

18. The Newspapers are Online Winners

19. Online Mobile is Growing Fast

20. Tablets: Rapid Market Penetration

21. Example: iPod/iPhone/iPad Source: Meeker 2012: Mary Meeker; 2012 Internet Trends; D10 Conference 2012; http://www.scribd.com/document_downloads/95259089?extension=pdf&from=embed

22. Example: iPod/iPhone/iPad Source: Meeker 2012: Mary Meeker; 2012 Internet Trends; D10 Conference 2012; http://www.scribd.com/document_downloads/95259089?extension=pdf&from=embed http://e24.no/it/nordmenn-kjoepte-en-halv-million-nettbrett-i-fjor/20331343

23. Example: Online from PC to mobile (India) Source: Meeker 2012: Mary Meeker; 2012 Internet Trends; D10 Conference 2012; http://www.scribd.com/document_downloads/95259089?extension=pdf&from=embed

24. Bullet-textslide Header, max two lines Text: Click on ’Increase Indent’ for changing Bullet-level To get back, click on ’Decrease Indent’ Turn off ’CLASSIFICED’ via 1. ’Insert’ / ’Header & Footer’ 2. Deactivate by clicking off the Footer Checkbox 3. Check ’Apply to All’ 24 Today's innovation challenge: the mobile

25. 200920102011 Rituals the same, and breaking news seldom distrupt these Christmas eve single day year-on- year comparison – VG Mobile 25

26. Mobile Online in Norway 2012 Weekly Unique Users: Online trafic statistics for Norway, TNS Gallup: http://rapp.tns-gallup.no/?aid=9072261http://rapp.tns-gallup.no/?aid=9072261

27. Facebook – Dominant Social Media

28. TV: The Niches Win

29. Radio: Stability, NRK P1 is Looser

30. Weekly Magazines in Squeeze – launching of many new titles

31. How We Spend Money on Media

32. Traditional newspaper business model + Circulation + Advertising = Income - Costs = Profit = Income from circulation = Income from advertising Different business logic for different newspapers Different income structure: Newspapers operate in two markets

33. http://www.poynter.org/latest- news/mediawire/203357/nytc o-reports-668000-digital- subscribers-in-fourth-quarter/ Norway, 2011: A+BT+SA+Fvn: 61 % paper ads 39 % paper circ. Norway, 2011: A+BT+SA+Fvn: 61 % paper ads 39 % paper circ.

34. Eroding Business Models for Newspapers PaperOnline Response for many years, transformation to online business. However, the largest share of income is still from paper (2011): OnlinePaperOther 29 %71 % 0 %Aftonbladet + SvD 19 %77 % 3 %VG 5 %76 %19 %Regional Norwegian newspapers, Source: Schibsted Annual Report 2011 Schibsted-owned Response for many years, transformation to online business. However, the largest share of income is still from paper (2011): OnlinePaperOther 29 %71 % 0 %Aftonbladet + SvD 19 %77 % 3 %VG 5 %76 %19 %Regional Norwegian newspapers, Source: Schibsted Annual Report 2011 Schibsted-owned Still, 80 % of income from paper Still, 80 % of income from paper

35. ”The gravity of digitalization” The total effects of many changes: Broadband: Broader, everywhere, wireless Many units: From one PC in the house to several units for each family member User friendly / handy: cellphone  smartphone Apps: general  specialized (personalized) Smart-TV … and “smart” everything Social media: Our dicitalized lifestyle, …more?

36. Program Changes in the market – Intro – Useful sources – Trends Responses to the market How does it affect journalism?

37. «Journalism for the Market» Purpose: Identify how the market’s impact on media companies influences changes in journalism. Journalism is changed over time Market Technology

38. Theoretical framework Market-driven journalismMedia as Institutions John H. McManus, 1994, Market-Driven Journalism: Let the Citizen Beware? Denis McQuail, 2010, McQuail's mass communication theory. Media management: Picard, Doyle… Consumer Ads. Sources Owner

39. Narrowing of the study 39 1995 2010 ”Paper””Paper and Online””Digital publishing and paper” Concentration of ownership Market and competition The newspaper circulation increases, turns, declines Schibsted on stock excange. New strategy: Digital & international

40. Develop paper products where the business model still works One of the strategical responses: 4 P’s (Kotler): Product Price Promotion Place 4 P’s (Kotler): Product Price Promotion Place

41. Four stories to illustrate practices of segmentation in journalism 1.Use of segmentation tools 2.Hunting female readers 3.Individualization = new income 4.Specialization in a multi platform strategy 41

42. Story 1: Aftonbladet’s use of segmentation tools in the newsroom ”Who are Aftonbladet’s readers and buyers?” Editor-In-Chief since 2008 42

43. Four selected progressive target groups 43

44. In Aftonbladet’s newsroom 44

45. Product Development According to the Selected Target Groups 45

46. Aftonbladet’s new Sunday newspaper Re-launched January 2010 The conceptual model describes even articles and genres for specific target groups on specific pages Examples: 11 April 2010  46

47. ”Dokument” (Tiger Woods) made for Discussing Dahlgrens. ”Mitten” (graphic illustrated news) made for Active Dan. ”Intervju” (celebrity) made for Entertainment Nathalie. ”Läsning” (Wikileak) for Discussing Dahlgrens. Front page and news has to attract these selected target groups. 47

48. Story 2: Aftonbladet Hunting for Female Readers Products specific for targeting female readers 19952010 Several reasons to go for female readers A detail from the Annual Report 2006  48

49. Aftonbladet’s Hunting for Female Readers 1995: Aftonbladet’s extra products specifically targeting female readers: Supplement Wednesdays Glossy magazine Sundays 49 Female content on the new online edition

50. Aftonbladet’s Hunting for Female Readers 2010 (May) – about 30 female products, represented here by 19 examples: 50

51. May 2010: Aftonbladet targets female readers by these specific editorial products, special pages or web sites 1.Bonus – two daily labelled pages in the main newspaper. 2.Female news: Female journalists are dedicated to cover some selected news and write them for a primarily female readership. 3.Kolumnister – a majority of Aftonbladet’s promoted columnists are women. 4.Viktklubb – viktklubb.aftonbladet.seviktklubb.aftonbladet.se 5.Wendela is used as title for female content in the online newspaper (www.aftonbladet.se/wendela).www.aftonbladet.se/wendela 6.+7.Sofis mode – a weekly magazine about fashion, and a website (www.aftonbladet.se/sofismode).www.aftonbladet.se/sofismode 8.+9.Klick! – a weekly magazine filled up with celebrities and pictures, similar to gossip magazines. And a website: www.aftonbladet.se/nojesbladet/klick. www.aftonbladet.se/nojesbladet/klick 10.+11. Kropp & hälsa – a monthly magazine with health, lifestyle, slimming, diet, inspiration and relaxing. And a website: www.aftonbladet.se/kropphalsa. www.aftonbladet.se/kropphalsa 12.Söndag – a weekly glossy magazine (lifestyle, relations...) 13.Härligt hemma – a weekly glossy family magazine. 14.TV – a weekly magazine with TV tableau and related content. 15.Kryss & Quiz – a weekly magazine on crosswords/quiz. 16.Resa – a glossy magazine issued ten times a year. 17.Tasteline – a website for cooking, in cooperation with Svenska Dagbladet (www.tasteline.com).www.tasteline.com 18.Mat & Vin – a magazine issued four times a year. 19.Allergi – a Wendela sub-site in the main menu: www.aftonbladet.se/kropphalsa/allergi www.aftonbladet.se/kropphalsa/allergi 20.Barn – a Wendela sub-site in the main menu: (www.aftonbladet.se/wendela/barn).www.aftonbladet.se/wendela/barn 21.Bostad & inredning – a sub-site in the main menu: (www.aftonbladet.se/bostadinredning).www.aftonbladet.se/bostadinredning 22.Inredningsbloggen – a sub-site in the main menu: (blogg.aftonbladet.se/inredning).blogg.aftonbladet.se/inredning 23.Bröllopet – a website for content on Crown Princess Victoria’s wedding 19 June 2010 (www.aftonbladet.se/brollopet).www.aftonbladet.se/brollopet 24.Royal – four magazines on the royal wedding were issued between March and June 2010. 25.Brud & bröllop – a one shot 140 pages magazine. 26.Horoskop – a Wendela sub-site in the main menu: (www.aftonbladet.se/wendela/horoskop).www.aftonbladet.se/wendela/horoskop 27.Jobbet – a Wendela sub-site in the main menu: (www.aftonbladet.se/wendela/jobbet).www.aftonbladet.se/wendela/jobbet 28.Relationer – a Wendela sub-site in the main menu: (www.aftonbladet.se/wendela/relationer).www.aftonbladet.se/wendela/relationer 29.153 kvinnor – a website for this series, still updated with related news: www.aftonbladet.se/nyheter/153kvinnordodade www.aftonbladet.se/nyheter/153kvinnordodade 51

52. Story 3: Weight Club’s individual content creates new income Background: Growth in consumer and lifestyle journalism Internet changed media markets, a challenge for newspapers Dot-com-crash challenged online outlets to find new income models for internet publishing 52

53. Reconceptualization of known content Individual content for sale to members 53

54. VG’s Weight Club is profitable 1.VG’s branding 2.Loyalty: ”Club” invites to an intimate relation 3.Buying frequency 4.User frequency online 5.Membership fee 6.Ad’s placement paper 7.Ad’s placement online 8.Social media 9.WebShop 10.”Weight Club” brand on other products 11.Difficult to copy 12.Simple to copy New income opportunities and market effects: Five years: x 195.000 memberships = 100 mill NOK [74~117] 330 tons slimming = 299,- NOK per kg [224~354] 54

55. Story 4: VG bought “Dine Penger” – a specialized magazine Staff with specific competence Fitted for use in a multi platform strategy 55

56. Dine Penger Magazine competitors 56

57. VG’s ”Dine Penger” is about specialization and multi platform publishing VG 19.4.2010 VG.no 3.11.2010 VG.no/dinepenger 3.11.2010 VG.no/dinepenger 24.4.2010 Dine penger - nr. 2/2010 Dine Penger - special ed. 2009 57

58. The four stories illustrates… 1.Aftonbladet’s news: Segmentation tools are used as operational tools for developing new products + to manage newsrooms = framework for everyday practice of journalism 2.Female readers: Segmentation is a response to market diversification, how journalism works within a market logic + internet supports segmentation + ongoing process 3.Weight club: Individual content is more useful and creates new income opportunities 4.Specialization in a multi platform strategy: Segmentation used as a tool to go deeper in a more complex society + specialized content can be used “omnibus” in a multi platform strategy 58

59. The strategies behind segmentation Editors: Cacophony: our way to reach readers Complexity: a need for expertise and specialization Consumers: a need for help in a deregulated society Directors: Compensation: new income to replace erosion of traditional income Attention: vital to survive Diversification: reduce risk and dependency 59

60. Program Changes in the market – Intro – Useful sources – Trends Responses to the market How does it affect journalism?

61. “Segmentation” has significant effects on journalism Around the journalism: Framework defined by the market constitutes the space for everyday practice Media’s role: Less omnibus, more segmented Reader’s role: Less citizen, more target group defined by the logic of the market Journalist’s role: Less power, more producer Media houses: New income The practice of journalism: More specialized, specific competence in a more complex society More relevant and useful, more selective for readers overloaded of information More narrow, supports smaller communities More sensitive to readers, or market-oriented More polarized news values 61

62. Pro & con market oriented journalism Supportive arguments (from my informants): “It is a journalistic goal to be widespread = similar to market goals” “Good quality = a competition advantage” “Qualitative journalism is expansive” “Good income = independence” “Profit necessary for further development” “Competition improves the journalism” Scepticism (from John McManus): Commercial logic and Public service logic differ “Economic” selection: – Not harm advertisers – The cost of uncovering – The cost of reporting – Proportions: the advertisers audience Ties to economic logic: hindrance for the journalism to play its democratic role Debates:

63. Market Challenges for Scandinavian Media Newspapers: Falling circulation, eroding business models + different income structures Internet: Growth in use and digital publishing How media respond to digitalization How media respond to market challenges, one example: segmentation (four illustrative stories) Segmentation effects on journalism Debates on market oriented journalism Summary:

64. Program Changes in the market – Intro – Useful sources – Trends Responses to the market How does it affect journalism?