Strategies in a digital world

Transcription

Strategies in a
digital world
deel 1 trends en ontwikkelingen /// mediaconsumptie
Contents
Foreword 3
Trends 5
Threats 15
Opportunities
Digital distribution and production 24
Cross-media convergence 27
Experience economy 28
Communities and new media networks 29
Strategies
Music – Competing with free 35
Film – Lessons from the music industry 39
Newspapers – Dailies are already communities 41
Television – The battle for rights 45
Summary 49
Conclusion 50
List of interviewees 52
Glossary 53
Bibliography 54
Acknowledgements
55
1
3
Foreword
We are delighted to present you with the third ABN AMRO report on media sector developments.
This report is meant for everyone who is involved in or interested in the media sector. This report,
which follows Media in view 2006 (on the most important trends) and Media in view 2007 (on
four future scenarios), describes strategies in the media sector, in a logical follow-up on our
previous studies. The future scenarios in our previous report (digital disillusionment, complete
fragmentation, chronic chaos and cross-media consolidation) were stimulating points of departure
for discussion, discussion that brought up other interesting questions:
Do companies have to take multiple scenarios into account? How can companies anticipate
developments in a media landscape that is in a state of flux, both in terms of technology and in
terms of evolving consumer and advertiser behaviour? What opportunities and threats await both
traditional and new media companies? And what is the optimal strategy in the context of farreaching digitalisation? This report takes an in-depth look at these questions, based on interviews
with twelve prominent players from the different media sectors. One of these sectors is the
music sector. This sector is particularly interesting because it was the first to feel the impact of
digitalisation and the first to attempt to absorb the impact by introducing new earnings models.
The case of the music sector is typical of the type of discussion that we wish to have with
our media sector clients. We understand the complexity of your sector and are eager to assist
in the search for new and innovative opportunities. Whether it involves the introduction of a
mobile application or an investment in a new printing press, we are here to help you explore the
available strategies, to help you develop the right earnings model and to help you make decisions
regarding financial viability. In that context, this report presents ideas that can serve as points of
departure to stimulate and grow your business.
I would like to take this opportunity to thank everyone who contributed so generously to this
report, particularly the interviewees and Hans Arendshorst of ABN AMRO Sector Research,
the author of the report. We hope you enjoy reading the report as much as we enjoyed doing
the research that went into it and we look forward to lending you our assistance in meeting the
challenges your business faces in the digital world.
Menno van Leeuwen
MEDIA AND TECHNOLOGY SECTOR
ABN AMRO SECTOR ADVISORY
The media sector is in a state of flux. What is changing and what impact will the
changes have on media consumption and the market for advertisers?
5
Trends
6
media in view /// trends
Retaining control The media sector is in a transition phase. With technology as the driving
force, developments are occurring at a steadily increasing pace. Digitalisation, microelectronics
and Internet offer a plethora of new possibilities and have triggered a change in media usage. This
has loosened the grip of the media on its audience and target groups and, even more importantly,
on its content. Changes in media consumption are also causing a change in the distribution of
advertising expenditures.
Media initiatives New initiatives and experimentation are the order of the day in the media
sector. Concepts that do not work are often abandoned shortly after they are introduced. The
death of Skoeps.nl, a website for news stories written by the common man, for instance, is just
one example of the fate of such initiatives. Sony and Virgin pulled the plug on their online music
shops, the Dutch Public Broadcasting Association is decreasing the number of theme channels it
broadcasts and Blu-ray won the war against HD DVD. Interesting new initiatives include the sale
of music without DRM protection, BBC’s iPlayer for Internet television, FD Media Group’s new
business website Z24 and distribution of content by NRC Handelsblad via the iLiad e-reader. If
successful, such experiments can result in viable new media forms and earnings models.
Figure 1: Interaction between technology, media and the consumer
Adoption / Interaction
Media offerings
Consumer
Digital TV
User Generated Content
Video-On-Demand
Web 2.0
Mobile Internet/TV
Joost
Web 2.0
Sellaband
Hyves
Last.fm
Uitzending
gemist.nl
En
s/
av
io
ler
ur
ab
Wimax
eh
n
tio
e
Ad
nc
op
ge
er
iPhone
Technology
Digitalisation
Internet Devices
Source: ABN AMRO
/B
nv
Co
Apple TV
Gadgets
7
Figure 1 shows the continuous interaction between technology, media and consumers.
Technology creates new possibilities in the media sector and eliminates barriers between
different types of media, which in turn results in a wave of new media products. The consumer
is able to choose which products he wants and how he wants them. Technology changes media
behaviour, but is also dependent on adoption by consumers: unused technology disappears
quickly.
Three mega trends The change in technology and consumer behaviour is evident in a number
of important trends. Two years on, the trends that we described as mega-trends in our report
Media in view 2006 still have an enormous impact:
Mega-trend 1
Anytime, anyplace, anywhere What they want, where they want it and when they want
it, consumers are in full control of the decisions regarding audio and video content in the
digital world, completely independent of the media. Time shifting was already possible with
a digital video recorder and a steadily increasing number of electronic devices offer place
shifting functionality. At present, less than ten percent of Dutch consumers have access to
mobile Internet, but the increased prevalence of smartphones with larger displays and flat fee
subscriptions costing just 10 euros per month are expected to result in a breakthrough for mobile
Internet and mobile television.
Mega-trend 2
Increasing interactivity New media now offer far more interactive options than in the past.
Internet is an interactive medium per definition. The Internet user determines when and how he
surfs websites and Web 2.0 has elevated interaction to a higher plane with a new generation of
websites that revolve around participation by site visitors. Consumers are producing their own
content and that is a fundamental change. The enormous popularity of sites such as YouTube
and social networks such as MySpace and Hyves prove that today’s consumers are eager to
exert greater control over the media. User Generated Content (UGC) and blogs are already being
integrated into traditional media. The latest branch of the interactive media tree is Twitter.com,
a site that allows users to tell the world where they are, what they are doing or how they feel
about a particular issue in 140 characters of or less via their PC or mobile phone. Microblogging
via Twitter.com has become an incredibly popular pastime.
8
Mega-trend 3
Convergence, blurring boundaries between media Digitalisation and Internet have blurred
the boundaries between devices, media platforms and media sectors. With multifunctional
devices such as smartphones, consumers are able to make telephone calls, listen to music, take
photographs, watch TV, play games, manage schedules, etc. The boundaries between different
media companies that operate on their own dedicated platforms remained in place for decades,
but have now been breached by the Internet. Television can now be watched via the Internet,
newspapers can be read on the Internet and anyone can establish a radio or television station on
the Internet.
Media consumption is changing The mega-trends reveal that fundamental changes are
occurring in media consumption. The Internet is still in its infancy and the Internet as a new
platform has yet to reach its full potential. The Social and Cultural Planning Office (SCPA)
performs a study into the amount of time devoted to the different types of media every five
years. Although total media consumption has remained constant, consumption of television
decreased for the first time in 2005, as Internet consumption increased. Print media consumption
amongst Dutch consumers continues its steady decline.
18
,8
TV
Audio
Source: www.tijdsbesteding.nl / SCP, 2005
1975
1985
1995
2005
0,9
3,8
4,6
3,8
0,1
0,8
0,5
2,2
1,4
6,1
5,3
10
,1
12
,4
,2
12
10
20
18
16
14
12
10
8
6
4
2
0
,5
19
18
,8
18
,9
Figure 2: Time spent on media by the average Dutch consumer (hours per week) TV
Print
Internet/Games
Media Total
9
Discussion on this break in the trend is still possible, however. Stichting Kijkonderzoek (SKO)
measured an increase in television viewing from 19 to 22.8 hours per week in the same period,
but even SKO has measured a slight decrease in television viewing since 2007. Note that SKO
measures the number of hours that televisions are on. Many consumers use television as
background noise and multitasking (simultaneously sending sms messages, making telephone
calls, etc.) occurs frequently, particularly amongst the young. To conclude that the number of
hours actually spent watching television decreases as the amount of time spent on Internet and
games increases is only logical. According to SCPA, the decrease in television consumption is
highest amongst the young.
Digital natives There is a clear difference between the media consumption of digital natives
and digital immigrants. Digital natives are young people, with a maximum age of approximately
27, who see the options presented by the Internet as a given because they grew up with the
Internet. Digital immigrants are older media users who see the Internet as less self-apparent and
are more focused on traditional media in terms of media consumption. Digital natives and digital
immigrants show distinct differences in media usage. The trend toward decreased print media
consumption is stronger in the digital native group because their primary sources of news are the
Internet and television. Because they spend a large amount of time on games and the Internet,
these young people are used to handling media in an interactive and individual manner.
“Young kids find it
completely normal not to
pay for music. For them,
it’s as self-apparent as the
presence of a sugar bowl on
the table.”
Because they grew up with the Internet and are accustomed to receiving free
Erik de Zwart – 21st Century Music
American magazine Wired, chief editor Chris Anderson states that ‘freenomics’
software via the Internet, digital natives tend to have an ‘everything is free’
attitude toward Internet products and services. Digital natives no longer buy
CDs and DVDs, but download music and films without paying for them via
peer-to-peer networks such as Mininova and The Pirate Bay. This attitude has
formed a dangerous threat for record companies for years: income from CD
sales has fallen dramatically. In the March 2008 edition of the well-known
is the future of the Internet. According to Anderson, offering no-charge
products and services is the future for companies on the Internet. Companies
will generate income via sponsoring, advertising and cross-subsidies with
other products.
10
Consumer behaviour The shift in media consumption and the megatrends described above fit into a transition phase in which media are
evolving from mass media into more individual media. In a highly individual
and digital society, fragmentation of the media offering is a given. Personal
preferences are showing an ever-increasing divergence and are resulting in
the birth of niche media. The Internet gives hundreds, perhaps thousands,
“The future of media and
advertising is not in mass
media, but in one-to-one
communication.”
Marceline Beijer - Kobalt
of digital television and radio stations, blogs and musicians opportunities to
Mark van der Kallen – Thieme
address small, but specific and viable target groups.
GrafiMedia Group
Discussions regarding the future of the media often contain references
to the model that magazines to justify their existence: specialisation in a limited, but clear target
group with rapid development from concepts to new titles. However, this more personal media
consumption complements the existing traditional media, which does not necessarily have to
disappear. In the future, we will still gather in front of the television to watch the Idols finale
and live sports events, but their will be fewer moments at masses of viewers watch television,
particularly films and television series, as we gain greater control over where and when we
absorb content.
Advertisers follow the audience Irrespective of the medium, advertisers follow their target
group and will adjust in response to changes in the media landscape, however dramatic those
changes are. The increasing interaction and fragmentation of media consumption result in
new ways to communicate with target groups. Advertising today is primarily based on media
reach. The price of a television commercial depends on the number of people who watch the
programme before, after or during which the advertising block appears. Pricing for newspaper
advertisements is based on the circulation figures for the newspaper in question. When selecting
media, advertisers focus on specific target groups. They also attempt to register information
on individual consumers using database marketing techniques. Still, advertising in mass media
is not the most effective way to reach the target group. It is a shot in the dark, one taken in
the hope that enough potential customers are present in the viewing audience. Much of the
audience is completely uninterested, however, and displays advertising avoidance behaviour
(zapping, using a DVR to avoid the advertisements). It is also difficult for advertisers to accurately
measure the impact of their advertisements. When the advertiser uses multiple media, it is
difficult to determine whether the new customer saw the television commercial or newspaper
advertisement or heard the radio advertisement.
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“Advertisers are gradually
realising that the existing
methods do not always work.
What we need now is some
good cases with sufficient
detail and depth.”
Internet, however, does offer clearly measurable results. In principle,
Raymond Spanjar - Hyves
quite high because Internet is a ‘lean forward’ medium that requires
Internet browsing behaviour can be closely monitored. Visitors who
click an advertising banner on a website are routed through a site
that measures the click-through rate (CTR) for the banner in question.
Advertisers are able to see exactly where visitors to their site come from
and what the CTR is for the banners they place on different websites.
The attention-getting value of advertisements on the Internet is generally
a high degree of concentration from the user. Television, on the other
hand, is a ‘lean back’ medium, one that requires little concentration.
Television advertising impact can be measured based on the electronic
programme guide (EPG). EPG-based measurement pairs information on
viewing habits with viewer profiles, giving advertisers more refined target
group marketing opportunities. There are also benefits for the viewers in
this method: advertising that responds to the needs and interests of
the individual consumer is less irritating. EPG-based measurement and
placement is an example of effective advertising.
Measuring is not necessarily knowing Internet advertisers do not always know whom they
have in front of them. They know how often a given banner is clicked and they know the site
or IP address from which the click originated, but they do not know what consumer clicked the
banner. Internet advertising becomes truly interesting for advertisers when they are able to pair
the information they already possess with profiles of the prospective customer and when they
are able to follow the prospective customer across the different media platforms and speak to
the prospective customer on those platforms. Database marketing will focus more sharply on the
registration of information from multiple platforms in a single database in the future, so that At
“Advertising on the Internet is typically an evolution with
quakes and periods of quiet. It’s silent at the moment, but I
think this is the silence before the storm. Once the advertisers
wake up, it’ll speed up and they’ll be trying to bump each other
out of the market.”
12
present, the Internet’s share of the total advertising market in the Netherlands is approximately
7%, half of which is going to search machines such as Google. Clearly, this share will increase
in the coming years. The Internet generates a limited share of advertising revenues, particularly
when viewed in the context of its high consumption figures. The opposite is true of newspapers
and magazines: the consumer spends less than 10% of his time reading newspapers and
magazines, but these media account for approximately one third of advertising revenues. This
distribution is not viable for the long term. It is a question of time before marketers (usually still
digital immigrants) shake off their fear of Internet marketing. In the UK and the US, the Internet’s
share of the advertising market is higher than in the Netherlands (see the table below).
Table 1: Share of Internet in the advertising market
2003
2004
2005
2006
2007
United States
4,6
5,7
7,1
9,1
11,2
United Kingdom
2,6
3,9
7,8
11,4
15,3
Source: IAB, PricewaterhouseCoopers
Target group-oriented advertising Advertising will focus less on the masses and more on
specific target groups in the future. Naturally, there will still be a generic portion of the advertising
market (for general information such as name changes and holidays) that fulfils the need for
mass reach. But the moment they need a more product-specific approach, advertisers will turn
to the options offered by the Internet and this will create opportunities for media companies.
A campaign for a small but interesting target group that delivers demonstrably better results is
worth much more money to an advertiser. To make this possible, the media must be able to build
a strong relationship with the (niche) target group. Reach in itself will become less important
in the future. Advertisers will begin to demand result-based deals. They will use econometric
models to accurately assess the return on investment for their campaigns and will reward the
media they use for their campaigns based on hard sales figures. Internet will be given a central
role in operations in media companies to support the transition from mass to target grouporiented advertising and to prevent the loss of advertising revenue.
“If we are ever able to truly demonstrate the link between
sales and media usage, budget will be shifted from sales to
marketing and more money will be spent on media.”
13
14
Current trends in the media sector result in certain threats for traditional media
companies. Convergence is stiffening competition in the media world: turf wars are
erupting between companies that used to work in completely separate markets.
15
Threats
16
Change is needed In the digital world, media companies need to adjust to the (new) playing
rules of the Internet. Newspapers see players on the Internet such as Nu.nl distributing ‘free’
news and are responding by moving into the terrain of television and placing news videos
on their own websites. Web 2.0 has given the general public the means to produce its own
content and has loosened the control of the media over target groups and content. With mobile
Internet, the mobile telephone is developing into a fourth platform for media consumption, next
to the print media, (digital) television and radio and the Internet. This is further fragmenting the
media offering, thus decreasing reach per medium. These changes are dramatic and will have
a significant impact on the entire media chain and the advertising market. Another important
change is digital media price forming. New earnings models apply to the Internet and traditional
media are faced with the question of how to generate earnings with digitalised products on the
Internet.
Core threats for traditional media
• Cross-media convergence is increasing competition
• Consumption of media is shifting to the Internet and mobile telephone
• Consumer preferences are shifting away from print media to video
• Shift in the advertising market to niche target groups
• Media are losing control over content
• Decreasing reach caused by media and target group fragmentation
• ’Everything is free’ trend is making it difficult to offer paid content on the Internet
• Discrepancy between digital media pricing and analogue media pricing
This section describes the most important threats to the three major media sectors: music & film,
newspapers and the television.
“Downloading is time-consuming and generates less money than
working for minimum pay. You’re better off just buying a CD.”
Pim Betist - Sellaband
Music and film industry: no control over content Remember the 1994 television
advertisement run by the Dutch telephone company PTT Nederland? No? Well you can
still watch it on YouTube: after a bad audition, a girl sings into a record company exec’s
answering machine from a PTT telephone cell and gets the role or record contract she
missed out on at the audition. Today, the girl would probably send the exec a message via
e-mail with a link to videos of her songs on her MySpace page. In fact, she might not even
bother trying to contact the record company exec. With a good voice and the worldwide
web, who needs a record company these days?
media in view /// threats
17
“The music industry is one big,
slowly settling cloud of dust.
Online, structure is gradually
rising from the debris.”
Barend van Doorn - Accenture
CD sales Visitors to Sellaband.com can listen to demos made by bands
that are just starting out and decide to invest in promising bands via the
site. Bands that garner enough ‘believers’, i.e. that raise 50 thousand
dollars or more, can find a producer and start recording their first CD.
The site completely eliminates the record company as an intermediary,
putting the power in the hands of the consumer. Other parties are also
starting to work in this area, one that was previously the exclusive
reserve of record companies. In early 2008, Madonna closed an
innovative new type of deal with concert organiser Live Nation, the best
example of a ‘360-degree contract’ to date. For $120 million, Live Nation
obtained a share of Madonna’s CD and DVD sales, merchandising and
concert ticket revenues for the next ten years. Madonna’s deal with Live
Nation is evidence of a shift in the music industry, away from the sale of
CDs. Some bands have decided to offer their music directly to their fans
via the Internet, without charging them in some cases. Radiohead started
this trend, which was quickly followed by bands such as Nine Inch Nails
and Coldplay, which released the first single from their new album ‘Viva
La Vida’ free online.
The price of digital The telephone company advertisement mentioned earlier in this document
is a nice illustration of the phase in which the music industry finds itself. Illegal downloads and a
preference amongst digital natives for digital music has resulted in a continuous decrease in CD
sales. Although the sale of digital music on the Internet is increasing dramatically, the increase is
not compensating for the decrease in CD sales revenues. Paid music downloads are not taking
off because of DRM protection, a limited number of online music shops and prices that are too
high. The price of digital music is still derived from the price of physical CDs and volumes are too
low at most online music shops. It is difficult to explain to consumers why a digital album costs
10 euros, while a physical CD costs just a few euros more, particularly when use of the digital
version is limited by DRM protection. The digital music offering is not yet optimally aligned to
consumer desires and preferences. The trend toward free give-aways also plays an important
role here. Musicians are still able to fall back on live concerts for revenue. The prices charged for
tickets have therefore risen to compensate for the decrease in CD sales. Unfortunately for the
record companies, they usually do not share in concert revenues.
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Box office revenues are increasing The film industry’s position is better than that of the
music industry. Producers and distributors receive a portion of box office revenues for their films,
roughly half in fact. Worldwide box office revenues are still increasing and sales of DVDs, another
important revenue source for the industry, have not decreased, despite illegal downloads. This
is quite striking because most films are already available on the Internet hours after the premier.
However, the film industry does face the same fate of the music industry. As higher speed
Internet connections make it easier for consumers to download films, box office and DVD sales
revenues will decrease. Although DVD sales in the Netherlands increased by 5% last year, they
showed a first-time decrease of 4% in the US.
Table 2: Box office revenues and DVD sales
Box office ($ bil.)
DVD sales
US
Worldwide
US ($ bil.)
Netherlands (mil.)
2003
9,17
20,1
11,6
323
2004
9,22
24,9
15,5
352
2005
8,83
23,1
16,3
329
2006
9,14
25,5
16,6
334
2007
9,63
26,7
16,0
350
Source: MPAA/NVPI
Film production and marketing expenses increase each year. Because the number of films that
are released is increasing (from 459 (2003) to 590 (2007) in the US), there is a higher risk of film
revenues not covering the high costs incurred to make the films. Also, as in any industry, the lack
of growth has a negative impact on employee motivation and on the future expectations for the
sector. This is particular true of the film world, where the financing risks have traditionally been
higher than average: only one out of every ten films released is a financial success.
Core threats for the music and film industry
• Loss of control over content due to illegal downloads
• ‘Everything is free’ trend on the Internet is a threat for earnings models
• Decreasing sales of physical media carriers such as CDs and DVDs
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“What you do see is that
advertising is becoming more
dominant, at the cost of
subscriptions.”
Newspapers: who reads them these days? Newspapers are
suffering from our culture’s hunger for images and video and years of
declining circulation. The four free newspapers and NRC Next have
won new target groups and have increased circulation, but the paid
newspapers again saw their total circulation decrease in 2007. The
fact that visits to newspaper websites increased as physical circulation
decreased says a great deal. The willingness to pay for general news on
the Internet is extremely low to nonexistent, which means that there is
no easy way for newspapers to convert to the new Internet medium.
The number of new entrants in the Internet-based general news market,
including Google News, Nu.nl, Spitsnieuws, the NOS and foreign
newspapers is increasing the competition in the market. Internet also
offers plenty of space for User Generated Content. These days, everyone
has a mobile phone or digital camera, ready to take photographs of
disasters and breaking news events long before a professional news
photographer arrives at the scene.
“There are no really profitable free knowledge and information
sites. Zero.”
Gert Jan Oelderik - NRC Handelsblad
Newspapers on the Internet In an age of cross-media convergence, newspapers are
inadequately prepared to respond to changing media consumption. PCM and Telegraaf Media
Group have digital versions of their newspapers online, but they have done little to adjust the
presentation of content to its new digital environment. Subscribers can page through the entire
newspaper online in a fairly small format and can click articles to open a new screen containing
the content. In terms of appeal and convenience for the reader, digital newspapers do not achieve
optimal scores. In an age in which readers demand cross-media products, Dutch newspapers still
have a long way to go when it comes to digital content presentation. Some newspapers are
introducing innovative digital initiatives. NRC Handelsblad is making their news content available
in the iLiad e-reader, for instance, and the Volkskrant and NRC Handelsblad have integrated video
into their websites. FD Media Group, which publishes Het Financiële Dagblad, is making greater
advances in the area of convergence, working to add radio into its integrated print, video and
Internet offering.
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De Pers publishes an easy-to-read e-paper on its website, making it stand out in the Dutch
freesheet world. There are also examples of international publishing companies that have
tweaked their news content for online use, with varying degrees of success. The Times Online
(the online version of The Times, a British) and the New York Times, for instance, publish their
newspapers online each day in html format. When the New York Times removed the last
remaining limitations on the site in late 2007, the number of visitors to the site increased from
7.5 million to 19.4 million per month. The idea behind this strategy is that newspapers must
make the transition to the Internet, not just to follow their advertisers and thus secure their share
of advertising revenues, but also to meet the demands posed by their (paying) readers.
Core threats for newspapers
• Declining circulation and shift away from print media, particularly amongst the youth
• Increasing number of free news outlets on the Internet
• Aantasting advertentie-inkomsten door internet
Television: the ultimate fragmentation of audiovisual content Television is under
pressure as a mass medium in an age in which personal media consumption is becoming more
important. Television has also lost - and will never regain - its monopoly position as a broadcaster
of audiovisual content. The Internet and mobile telephone have arisen as new platforms for
audiovisual content. Internet video broke through in 2007 and mobile telephones may break
through in 2008. Mobile television offerings are expanding: Dutch telecom giant KPN offers
television on mobile telephones using DVB-H technology and the Dutch public broadcasting
network NOS recently launched its own mobile platform. YouTube paved the way for a wide
range of different types of video websites and Internet TV stations and the end is still not in sight.
Video consumption on the Internet differs from consumption of traditional television because it
has a high ‘snack content’: the length of videos on the Internet is the same as that of a music
video clip or sports or news item on traditional television. Television remains the medium of
choice for longer broadcasts and films. Still, its is clear that the playing field for television has
changed dramatically and permanently. The Nederlandse Publieke Omroep (NPO) responded
early to the changes with its catch-up television site Uitzendinggemist.nl. The NPO also started
broadcasting its digital theme channels early, back in 2006. Today, Nederland4.nl and the digital
television menus of the cable companies offer seventeen theme channels, with themes that
range from religion to humour. In July 2008, the NPO announced that it was scrapping five
digital channels because of a lack of consumer interest. Commercial networks RTL and SBS
also recently began broadcasting programmes on their own catch-up television sites. The entry
of industry outsiders is causing further fragmentation in the world of television. Hans Teeuwen,
for instance, broadcasts short videos and sketches on HansTeeuwen.tv. Advertisers are also
showing an interest in establishing online television networks as a means to establish direct
contact with their target groups. ABN AMRO, for instance, launched its own digital television
channel, ABNAMRO.tv, this summer.
21
“In principle, Endemol is not
a distributor or television
network, unless being one
helps us fulfil our role of
content producer, maker and
marketer.”
Advertising revenues Far-reaching fragmentation in the television
Rocco van den Berg - Endemol
reach, television networks must either broadcast on multiple platforms or
market decreases the reach and ratings of individual television networks.
Fragmentation is a threat to the television business model, which
depends on advertising revenues to survive. Television commercials
are an effective way to reach large numbers of people and they bring
in large amounts of cash, but this earnings model is under enormous
pressure as a result of current trends in media consumption. To maintain
produce programmes for smaller and more specific target groups. Many
networks and broadcasters and networks will need to position their
profile, programming and brand more sharply in the market. They will also
need to acquire longer-term broadcasting rights for multiple platforms,
not just for the traditional television platform, but also for the Internet
and mobile telephone platforms. The battle for broadcasting rights will
be a bloody battle because independent producers will also want to
retain the rights to the television programmes that they produce. After
all, in a digital world these producers no longer need to rely on television
networks alone to reach their audience, but can broadcast directly to
their audience and generate advertising revenues via the Internet. In July
2008, for instance, Dutch television producer Endemol established its
own television network Misdaad Net with Ziggo to broadcast domestic
and foreign crime and detective series via the Internet. In September,
Endemol and MTV jointly introduced Comedy Central Family.
Core threats for television
• Fragmentation of the offering due to digital television and Internet
• Advertising revenues for television commercials under pressure
• Producers are able to cut out the middleman and broadcast directly to their audience
ABN AMRO TV:
ABN AMRO introduced its own television channel in June 2008 and broadcasts via Abnamro.
tv and via digital television provider Tele2. The channel is the bank’s response to the increasing
importance of multi-channel audiovisual communication. ABN AMRO TV allows the bank to share
information with clients and prospects in a clear and appealing manner, but also helps the bank
distinguish itself from the competition. ABN AMRO TV offers a weekly financial update in news
broadcast format and programmes with business, lifestyle and sport themes. The network is not
a traditional network, but is completely on demand. Every video item includes interaction options
that can be accessed via the red button on the user’s remote control or via the user’s mouse.
Viewers can request brochures, make appointments and order tickets for events via ABN AMRO
TV. ABN AMRO expects the channel to contribute significant added value and to complement its
other, more traditional channels. The bank also expects ABNAMRO.tv to play a role in future brand
activation and sales activities. See also http://www.abnamro.tv.
22
media in beeld /// scenario 2: chronische chaos
The digital world offers enormous opportunities, also for traditional media companies,
provided they are willing to change course and broaden their horizons.
23
Opportunities
24
media in view /// opportunities
New rules, new opportunities Digitalisation and the Internet confront traditional media
companies with numerous threats. Consumers are changing their usage of media and the ‘real’
Internet players are far better at exploiting the new opportunities and at offering new media than
traditional media companies. Business models that proved their worth for decades are suddenly
outdated and unusable. Luckily, however, every technological innovation also offers opportunities,
for everyone in the market. To take advantage of these opportunities, however, traditional media
companies will have to learn to play by the new rules and this will require a turnaround in the way
these companies think and operate. The methods used to generate revenues in the digital world
may also be completely different from the methods they are accustomed to using. Most of the
up and coming new business and earnings models for the digital world are based on a number
of simple underlying principles. These principles are handled in this section, with the following
opportunities:
• Digital distribution and production
• Cross-media convergence
• Experience economy
• Communities and new media networks
Digital distribution and production
he cost of making and distributing digital media is (far) lower than the cost of making and
distributing traditional analogue media. Digital media are far cheaper to produce and can also be
produced and distributed more rapidly, provided operations are structured to efficiently exploit
new media. In some cases, content is free for publication, as is the case with User Generated
Content. The greatest benefit of digitalisation, however, is the far lower cost of content
distribution.
near future, film distributors will abandon the physical distribution process and
“What I notice is that
innovations in the industry
are not being created by
existing parties. All of the
truly great initiatives are
coming from new entrants.”
distribute their products digitally via the Internet or satellite. Digital distribution
In the film world, it is still important to estimate how many copies are required
for distribution to cinemas. The production and distribution of physical copies
of films on tape costs an average of 1,500 euros per copy, which makes
production and distribution an expensive process. Each cinema receives one or
more copies of a film on lengths of celluloid tape that the operator has to paste
together and role onto a spool before the film can actually be shown. In the
also creates new opportunities. Cinemas will be able to programme more
flexibly and expand their service offering. Showing live performances
and events in cinemas via satellite is the latest trend. Pathé Tuschinski in
Amsterdam regularly shows operas that are being performed elsewhere in the
world. The initiative is a success and most of the performances are sold out.
25
The same concept can be applied to pop concerts, sports events and theatre performances. Sony
Films recently established a new division, Hot Ticket, to focus on showing live events in digital
cinemas.
Distribution directly to the consumer In the consumer market, digital distribution directly to
the consumer generates huge cost benefits. Obviously, designing and maintaining large websites
such as iTunes costs money and requires large investments in server and Internet capacity, but
these costs are negligible in comparison with the cost of physical distribution, also on a per unit
basis. The consumer also benefits from immediate availability, in his own home, of his music,
film or newspaper, at a lower cost (no travel or delivery cost) and usually at a lower price. A digital
future is on the horizon for newspapers, a future without the heavy burdens of printing, paper
and delivery boys.
Digital content distribution also works well with another Internet development, this time in the
financial world. Banks are using the Internet to cut costs, to offer services such as Internet
banking and to offer new paid services to new types of clients. Internet banking is already well
established in the Netherlands and other western countries. New payment methods with lower
transaction costs such as Paypal, iDeal and mobile telephone payments make micro-payments
more profitable and easier to execute.
“We’ve clung to long to the
idea that as long as it’s
easy for everyone to access
content via legal channels,
we can ignore the fact that a
few individuals are copying
it illegally.”
Michel Mol –
Nederlandse Publieke Omroep
The Long Tail principle Another evolutionary change is the delivery via
the Internet of new products and services based on the Long Tail principle.
In 2006, Chris Anderson, chief editor of Wired magazine, mentioned earlier
in this document in conjunction with ‘freenomics’, wrote about the Long
Tail principle in his now famous book ‘The Long Tail – Why the Future of
Business is Selling Less of More’. The book explains the principle using
what is known in the business world as the Long Tail earnings model,
which is a niche market-oriented sales strategy made possible by the rise
of the Internet.
26
The Long Tail earnings model is based on the assumption that low production and stock costs on
the Internet ensure continuous availability and sale of an unlimited number of products. Although
these niche products are not in high demand, they are an important source of revenue when
the revenues generated by a large number of these products are totalled. In fact, total revenue
from the niche products may be higher than revenues from the big hits and fast movers. Where
20% of the products generated 80% of the turnover in the past, the less popular products now
account for 80% of the turnover. This model is the model generally applied by online retail shops,
but Long Tail is ideally suited to media as well because maintaining a digital warehouse stocked
with digital media costs next to nothing, no logistics co-ordination is required and products are
immediately available. In fact, digital distribution and Long Tail effects are causing a complete
turnaround in the manner in which media companies operate and are even resulting in the
development of completely new media products. For traditional media, this is an opportunity to
escape the corset of old formats that limit broadcasting hours and reach. Television programmes
no longer have to be immediate hits, but now have the opportunity to build a target group and
recoup costs over a longer period of time. Broadcasting networks have greater freedom of choice
in terms of content when broadcasting via digital theme channels and the Internet. The number
of viewers required to make broadcasts profitable is far lower than it is in the world of traditional
television, which also means that more programmes can be broadcast. Television formats that
focus on smaller target groups that would be financially uninteresting for normal television
networks now have a greater chance of being produced.
Figure 3: The Long Tail model
Turnover
er
20 %
Long Tail earnings model
Old earnings model
40 %
60 %
80 % 100
100 %
Product
P
Pr
rod
oduc
ductt
Source: ABN AMRO
The combination of no-cost digital distribution and continuous availability of content makes new
products and services possible. The music world has already introduced subscription services on
the Internet that offer unlimited music streaming and downloading for a fixed monthly fee. Social
networks are also beginning to offer music streaming to their members. MySpace is the first to
offer the new service and is also opening its own online music shop. Airlines are also entering
the fray, with convenient services that allow passengers to listen to the latest albums via their inflight entertainment menus. The renewal process has just begun, however, and services that are
truly interesting to consumers must still be developed.
27
Cross-media convergence
Cross-media convergence is the integration of media based on digitalisation and the Internet.
It can be based on consolidation, in which a media company takes over another type of media,
but it can also be based on forays by one type of media into another type of media’s terrain. The
FD Media Group is a good example of both types of consolidation. It is the result of a takeover
of BNR Newsradio by Het Financiële Dagblad. The FD Media Group has opted for a cross-media
strategy so that it can serve its target group of business people and consumers with an interest in
financial affairs on multiple platforms. The crux of the latter type of consolidation is realisation of
synergy between the different types of media. In the case of the FD Media Group, the different
types are audio (BNR), video (FD.tv), print and Internet, all wrapped into a single media company.
The FD Media Group tries to use its journalists in all areas to realise the necessary synergy.
Practical considerations are also behind this approach: at FD Media Group, a journalist may write
a newspaper article, produce a radio show and an Internet broadcast, all based on attendance at a
single press conference. The FD Media Group avoids double work and decreases costs by having
its editing staff deliver multiple products based on the work of a single group of journalists.
NOS and RTL News have begun to make more frequent use of camera journalists. Camera
journalists make their own reports without the need for an extra cameraman. In these initiatives,
digitalisation is changing the journalism profession and increasing efficiency at the same time.
“You have to offer journalists
optimal support so that
their output can be used
for different media types.”
Jacques Kuyf – FD Media Group
Cross-media convergence can be a threat, as we saw earlier, but it can
also create new opportunities. Media companies can evolve into complete
digital media product providers. They can achieve synergies, cut costs
and, most importantly, serve new target groups. Newspapers are reaching
the youth, a group that normally does not read newspapers, with video
on their websites. The Internet allows them to expand their offering of
products and services. Given the choice of topics in the video reports on
VK.tv, it is evident that the Volkskrant sees the youth as the primary target
group for the site. NRC Handelsblad shows how the food and cooking
journalist Janneke Vreugdenhil prepares dishes on NRC.tv, adding a new
dimension to the columns and articles by this journalist that are published
in its newspaper.
One of the best examples of a multimedia product does not come from a media company at all,
surprisingly enough, but from a retailer. The online outlet Bol.com started publishing Bomvol, a
two-monthly digital magazine, in early 2007. The online magazine combines text, video and audio
in an attractive and highly interactive manner. The consumer reads, sees and hears the latest
news on media releases, artists, electronics, festivals and travel offers as he browses and clicks
through the magazine. The maker of the magazine, Readershouse Brand Media, received the
2007 Spin Award for best interactive content. Bomvol is an example of what the newspaper of
the future might look like: a flowing interaction of text, audio and visual.
28
Experience economy
The popularity of cinema attendance, dance parties, live pop concerts and
festivals has not decreased. Despite high ticket prices, many events continue
to sell out. Consumers are still interested in live events and willing to pay high
prices to attend them. Concert tour revenues have increased dramatically
as a result of increasing ticket prices. Average concert ticket prices more
than doubled between 1995 and 2005. We will not know until late 2008
“Scarcity is very important.
The live segment is so strong
because scarcity is everpresent in that segment.”
whether Madonna’s ‘Sticky & Sweet’ tour will break the record she made
in 2006 with her ‘Confessions Tour’, the most successful tour ever for a
female artist. Illegally recorded concert fragments appear constantly on
YouTube. Although the quality of these fragments is painfully poor, they do
demonstrate that interest in live events is huge. In a digital world, where the
Internet is the ‘promised land’ for anyone in search of a freebee, the unique
experience that events such as live pop concerts offer is worth a great deal.
Table 3: Concert tour revenues for popular pop artists
Revenue ($ mil.)
1. Rolling Stones, A Bigger Bang Tour (2005-2007)
558
2. U2, Vertigo Tour (2005-2006)
389
3. Rolling Stones, Voodoo Lounge Tour (1994-1995)
320
4. Madonna, The Confessions Tour (2006)
195
5. Madonna, Re-Invention World Tour (2004)
125
Source: Wikipedia
The experience economy is interesting for other industries as well, not just the music industry.
Voting for Idols, interactive advertising in games, De Volkskrant’s singles parties: these are all
experience concepts that fit well in our new digital world. Sellaband is an excellent example
of the new Web 2.0 media, but SellaBration party in the pop temple Paradiso in Amsterdam
for site members, the Sellaband ‘believers’, are also a resounding success. Offline experience
concepts are being integrated into online strategy and are showing considerable overlaps. Fans
place self-made concert videos on MySpace and Facebook, sharing them with the fan base of
the band or artist in question within the site. Hyves is planning to integrate the mobile telephone
into its concept, so that friends on Hyves can also find each other offline. Networks of users and
members are an important component of the digital media phenomenon. In addition to generating
extra revenues, experience can also be effectively used to strengthen the relationship with the
target group, thus strengthening the network of users and members.
“We believe that a social network cannot really shine until it is
possible to use it on your mobile telephone.”
29
Communities and new media networks
Social networks were the first examples of communities on the Internet. They were the first
commercially viable interactive networks, but definitely not the last. In principle, any media can
build its own community and create a strong network of community members. MySpace, Hyves
and Facebook are closely knit networks and well known brands with members from all age
groups and social layers. Media companies, on the other hand, will have to work in a far more
focused manner to create their own target groups, based on factors such as educational level and
specific interests. These media networks will have the Internet as their core. Internet allows far
greater interaction with the target group than traditional media. Closely-knit networks are valuable
to advertisers. Money spent on advertising for small target groups is money well spent because
it generates a higher conversion rate.
“The members of social
networks are more
involved, which is why
social networks offer the
best opportunities for
advertising.”
The Metcalfe Law, conceived by Robert Metcalfe in 1980, still comes
up on discussions on the value of networks today. Originally focused on
telecommunication networks, the Metcalfe Law states that the value of a
network is equal to the number of members in the network squared. The
value of a network increases exponentially as the number of members
communicating via that network increases. This concept is still applicable,
to a greater or lesser extent, to the rising Internet networks. Whether the
network is a social community such as MySpace and Hyves or the network
is a media network, the more members a network has and the more
intensively that network’s members communicate with each other, the
more valuable the network is to advertisers. Information on the network
members makes the network even more valuable. The rise of networks
and communities in the media is based on this precept. Information on
the community members, paired with a strong brand, delivers more for
advertisers than the existing vehicles for advertising do.
30
baptised ‘Buy Another Day’ by consumers because of the excessive number
“We are a multimedia
company, with a large
amount of information on
the characteristics of the
group that we reach each
day. We are sitting on
top of a treasure trove of
information.”
of product placements it contained. Facebook recently unleashed a flood
Jacques Kuyf – FD Media Group
Traditional media companies need to learn to exploit online networks and the
value that their brands represent optimally on the Internet. They are heavily
reliant on the information gathered in central databases in this context, but
also on their ability to follow consumers over all of the platforms that they
use, without losing sight of the interests of the different networks and without
losing sight of the advertising preferences of the consumer. Consumers are
critical of target group marketing and sponsoring efforts. When Sony released
the new Bond film ‘Die Another Day’ in late 2002, the film was quickly
of member protests and disapproval when it announced plans to introduce
Beacon, a new advertising system. Beacon was meant to increase advertising
income generated via the Facebook site. When Facebook members bought
something via another website, Amazon for instance, the logo of that sight
was automatically placed in messages to friends regarding the purchase. After
a flood of protests regarding invasion of privacy, Facebook made the new
system optional.
Use your network In addition to database marketing for advertisers, media
networks themselves can also benefit from the information on consumer preferences. They
can use the information to organise focused marketing campaigns and refine their selection
of products, thus generating extra revenue. Sellaband does this. It uses the preferences of
‘believers’ from more than 100 countries worldwide to find musical talent. Models similar to the
Sellaband model are more efficient than the model traditionally used by record companies. Record
companies launched ten new artists in the hope that one of them would be a hit. The single hit
artist had to generate enough revenue to cover the cost of launching all ten artists, whether the
other launches were successful or not. By first asking consumers what their preferences are and
only launching artists who have proven their value on Selleband.com, Selleband significantly cuts
the cost of marketing and production.
31
Newspapers are another example. They have been marketing special offers for readers for years
to (partially) compensate for falling advertising revenues and declining circulation figures. In
addition to boxed sets of art house films, De Volkskrant also sells documentaries, Sigmund comic
books, novels, non-fiction books, wine and even travel packages. The annual figures for 2007
reveal that PCM generated 2% of its turnover from sales of these items. PCM plans to market
such items more aggressively to increase turnover even further. The extra turnover is based
on knowledge of consumer preferences and consumer purchasing behaviour. Although this is
obviously not the case at De Volkskrant, the information in many newspaper owned databases
consists of little more than subscriber names and addresses.
“Internet has become
our most important news
medium.”
Another strategy that can be used to strengthen networks is to build a
group of websites around the media company’s familiar primary brand. The
websites focus on a specific sub-group within the existing target group.
NRC Handelsblad, for instance, established NRC Next for younger target
group members with a higher education and NRC Boeken for literature
lovers. De Volkskrant set up separate websites for its Saturday features
Hart en Ziel and Reizen. It also established a job site, Volkskrant Banen,
to compensate for the loss of job advertisement revenues in the paper
version of the newspaper. NRC Next even has its own split-off: Next Lover,
a dating site for the NRC Next target group. What could be trustworthier
than Internet dating offered by a trusted and familiar brand? In the
examples above, newspapers have succeeded in creating a collection
of services and websites around their original brands, sites that can be
interesting to advertisers and users as a package or individually.
The opportunities presented by the Internet and media digitalisation are slowly but surely
being incorporated into new strategies. The strategies that a media company selects and the
opportunities that it focuses on depend on the medium. New strategies usually combine a range
of different opportunities
“FD bases its strategy on target groups and potential reach,
which is why we have positioned Internet at the heart of our
organisation.”
Jacques Kuyf - FD Media Group
How are media companies reacting to the (digital) changes and what strategies are
they using to stay alive? Are viable answers already visible in the market?
Old earnings models sometimes need to be thrown overboard to make space for new
business models. That hurts in a sector that is operating in great uncertainty because
of its sensitivity to economic developments, a sensitivity exacerbated by heavy
dependence on advertising revenues.
33
Strategies
34
media in view /// strategies
New business models The simplest adjustment to existing working methods can bring about
revolutionary change. Many successful Internet companies have done nothing but dust off an old
concept and adjust it for use on the Internet. eBay is little more than a local advertising paper,
but on the Internet, in the form of an auction, with some extra options. When traditional media
companies design digital strategy, they have to keep two important trends that can hamper their
activities in mind:
 Asynchronous development of the different target groups: digital natives behave differently
from digital immigrants. The two groups need to be approached differently: a single strategy
will not work.
 Incompleteness of the digital transition: many potential digital media products cannot be
offered optimally yet because the technology is immature (e-readers) or because companies
(internal organisation, ICT structure) and consumers (low mobile Internet and mobile
television penetration levels) are not yet ready.
These barriers slow the transition to a full-fledged digital world, but do give traditional media
companies the time to develop and optimise new business models. The accent in the new
earnings models will be placed on access to digital content and user-friendly services related to
that content rather than on the sale of individual (digital) media products. This radical change in
thinking will take time. Digital media and services on the Internet require a more complex and
more flexible internal IT system, which in turn requires extra investment. Many media companies
are not yet finished updating their IT systems and operations. They have the opportunity to learn
from digital cases involving competitors and other media sectors at this point. Developments in
the music sector are occurring faster than in other sectors, which makes the music sector a good
learning example for media companies operating in other sectors.
“Digital music prices are far too high. It’s ridiculous and there’s
absolutely no reason for it.”
35
Music: competing with free
“When they see that a
service on the Internet is
useful, they are willing to
pay for it. Content is more
difficult. It has to be unique.”
The term ‘record company’ is becoming an outdate term as the viability of
a core business based on CD sales decreases. The term ‘music company’
may be a better term for the future. Music will always be around and music
consumption has never been higher than it is today. But manner in which
music is consumed and in which money is made on music is changing
dramatically. Record companies need to develop new ways to recoup their
investment on music.
The sale of digital music per song or per album is
not an attractive proposition for consumers. Even
the market leader, iTunes, with a good website
and sufficient critical mass, is having problems
generating a profit on digital music sales. The
“Music is a hot marketing
instrument today.”
Joost Geerts - EMI
question is whether digital music is really worth
selling as a separate product and whether it will
Music Rights reveals that young people are willing
“The advantage of music is
that many companies want
to associate themselves
with it.”
to pay for access to music, provide the service offers
ultimately replace the CD. Probably not, which is
why record companies are looking at alternative
earnings models for the future. Research by British
convenience and opportunities to discover new
music and exchange experiences. 38% of the people
who downloaded the free new album Radiohead
released on the Internet paid a voluntary contribution.
Digital immigrants tend to be more willing to pay for
music because they are used to paying for it. Digital
natives are less interested in actually possessing
music and are more interested in anywhere, anytime
access to it.
36
Subscriptions and sponsoring Digital natives and immigrants have different preferences, but
DRM protection is a barrier for paid music for both groups. Both groups could be served using a
subscription model that allows unlimited streaming and downloading without DRM limitations
and with reasonable prices. A legal music site that offers a complete, high quality, virus free
catalogue, a range of services and convenience, linked to a social network, could be a good
alternative for illegal downloading. Before such a site can really take off, it must be available
anywhere and anytime, via any device (including smartphones). Marketing also plays an important
role in the success of subscription models. iTunes is popular
Is the subscription model for music viable?
In 1995, 36.4 million CDs were sold in the Netherlands, with a total retail volume of € 520 million.
The average Dutchman bought an average of two CDs per year, with a total value of approximately
€ 30. The average retail price for a CD was € 14 and the price that record companies charged
retailers was just over € 7. Based on these figures, the total income earned by record companies
in the Netherlands was € 255 million. Approximately 20% of that amount was spent on
making and distributing the CDs. This means that a subscription model would have to generate
approximately € 204 million in the Dutch market. If music companies demanded 50% of
subscription revenue at a subscription price of € 10 per month, the music companies would earn
€ 60 per subscriber per year. For the subscription model to be viable, there must be 3.4 million
subscribers, which is approximately 21% of the population. Fewer subscribers are needed if other
revenue sources, such as CD sales, advertising on websites and sponsoring by companies, are
taken into account.
despite DRM protection and relative high prices. Legal subscription sites still confront users with
too many limitations (DRM) and often limit their offering to music streaming. In the Netherlands,
Planet Music offers a streaming subscription for PCs and laptops at 6.99 to 9.99 per month.
Music can be downloaded for a fee. In the US, Rhapsody goes a step further. Rhapsody charges
$ 12.99 for its streaming subscription service, but also allows subscribers to download DRMprotected tracks to an Mp3 player for two dollars more. The downloaded tracks no longer play
once the subscription lapses.
37
Other revenue sources for the music industry include sponsoring by businesses and advertising
revenues from sites that offer music streaming to their visitors or members. In late 2007, Nokia
closed an innovative deal with Universal, the world’s largest record company. With the ‘Nokia
comes with music’ concept, consumers who purchase a Nokia telephone are able to download
music free of charge for a year from Nokia’s online music shop. Nokia pays Universal a fee of
approximately 51 per telephone sold. This initiative makes it extremely easy for consumers to
download music legally. Apple is considering a similar model for iPods and iPhones. In principle,
any company can offer free music to consumers with its products, as one-time downloads
(e.g. in the case of new releases) or in the form of limited-time access to a subscription site.
Social networks such as MySpace, music websites such as Last.fm and Songza.com and other
sites that offer (streaming) music are required to pay fees for the music rights to the music
industry. Indirectly, music companies will generate a steadily increasing flow of revenue from the
advertising on (music) websites.
partially true. The core expertise of record companies
“As long as we maintain a
bond with the artist and
help make the artist better,
we represent added value
for the artist, we have the
content and we can justify
our existence.”
is developing and marketing new talent and uniting
Arjen Witte – EMI
A&R Like their earnings models, the functions of
traditional record companies will also change. In
terms of their traditional role, they are rapidly losing
ground to websites such as MySpace and Sellaband.
The rise of Live Nation, which has closed 360-degree
contracts with big name artists such as Madonna,
Jay-Z and U2, appears to be a threat, but that is only
artists with song writers and composers, referred
to in the industry as the Artist & Repertoire function
(A&R). New artists who rise out of MySpace and
YouTube often quickly return to obscurity without the
proper guidance and support. In fact, Sellaband sees
itself as a jumping board for new artists, who then
move on into the normal music circuit to grow into
maturity.
“Record companies are
turning into advertising
agencies for artists.”
38
Music rights management for performing artists is a discipline in itself. U2 has a contract with
Live Nation, but has left responsibility for music rights management and music recording in the
hands of Universal. Live Nation does not possess the necessary expertise in these areas, but
primarily focuses on organising concerts. Concerts and A&R are completely different areas, areas
that are also difficult to combine. Without performing concert-related services for an artist, record
companies cannot expect to generate revenues from concerts. However, record companies can
perform other services for artists in the context of an all-round management approach. In such
cases, the suitability of a 360-degree contract is more self-evident. In the area of A&R, the unit
that works to find new talent will become smaller and more efficient based on a more consumeroriented strategy that uses the Internet. Possible strategies for the music industry are placed in
a framework consisting of the four opportunities in figure 4. The darker the quadrant, the more
important the strategy.
Figure 4: Strategies for the music industry per opportunity
Experience economy
• 360-degree model
• premium products by
artists
Communities
• music communities in
social networks
• subscription websites
Convergence
• music on the Internet
• Internet as a marketing
tool
Digital distribution
• music subscriptions
• sponsoring
39
Film: lessons from the music industry
Up to now, the film industry has been lucky. Unlike the music industry, the film industry has
not seen major decreases in DVD sales due to illegal downloads. Even in countries with a high
penetration of high-speed broadband Internet (Netherlands, UK), DVD sales and box office figures
have remained intact. Almost all of the industry’s top ten box office hits were released in the
Internet era. The fact that consumers are not mass downloading films may have to do with the
size of the content. Downloading films takes a great deal of time, even in compressed DivX
format. However, the Internet has also loosened the film industry’s grip on content and the
industry can expect more serious problems in the future, when glass fibre networks and higher
Internet speeds become more prevalent. Film producers have learned from the music industry’s
plight and are already experimenting pro-actively with new earnings models and new methods to
fight piracy.
Table 4: Top ten box office films worldwide
Film
Year
Box office ($ mil.)
1. Titanic
1997
1.835
2. The Lord of the Rings: The Return of the King
2003
1.129
3. Pirates of the Caribbean: Dead Man’s Chest
2006
1.060
4. Harry Potter and the Sorcerer’s Stone
2001
969
5. Pirates of the Caribbean: At World’s End
2007
958
6. Harry Potter and the Order of the Phoenix
2007
937
7. Star Wars: Episode I – The Phantom Menace
1999
922
8. The Lord of the Rings: The Two Towers
2002
922
9. Jurassic Park
1993
920
10. Harry Potter and the Goblet of Fire
2005
892
Source: www.imdb.com
40
Window model The window model used by the film industry is eroding. The industry releases
films in exclusive windows that incorporate different distribution channels and different
geographic regions to maximise profits. Illegal recording in cinemas and illegal downloads are
making the windows smaller or causing them to disappear altogether. This trend is clearly evident
in the geographic window for cinema releases. Titanic, with worldwide box office receipts of
1.8 billion dollars is still the top box office hit of all time. The film was released worldwide in the
period mid-December through early April, first in America and Asia and then in Europe. The last
Indiana Jones film, Kingdom of the Crystal Skull, premiered on 18 May 2008 in Cannes and was
then released worldwide on 21 and 22 May. In the ten-year period between the release of Titanic
and the release of Kingdom of the Crystal Skull, the geographic window decreased from four
months to just two days.
The release sequence in the distribution window is cinema first, then video shops, then DVD and
finally television. An increasing number of studios are experimenting with simultaneous cinema,
video on demand and DVD releases. Cinemas oppose this new development because they are
afraid it will result in box office declines. The advantage for consumers is that they are able to
decide how they want to see a new film. The advantage for the distributor is that marketing costs
decrease because advertisements only have to be placed for a single release. In addition, the
distributor benefits from extra word of mouth advertising and hype on the Internet.
For the future, the major American film studios are investing large amounts of money in the US
in digital screens that are capable of showing films in 3-D. An increasing number of new films are
being released in 2-D and 3-D in the hope that the 3-D versions will give the cinema segment an
extra impulse and will help in retaining the box office as a stable source of revenue.
Video on demand Video on demand streamed via Internet and digital television will probably
lead to the demise of the traditional video rental shop. The film industry has taken greater steps
forward in the area of streaming than the music industry to avoid the music industry’s mistakes.
Online video shops and cable companies offer a limited assortment of films at this point, but they
will be able to offer enormous film libraries in the future. This will make it possible for them to
exploit Long Tail effects, which will in turn help them generate extra advertising revenues. Film
rental prices can decrease when films are in circulation for a longer period of time and that is
interesting for consumers. One example of an online video shop is the Cinemalink.nl. The site,
which was established by the Dutch art house distributor Cinemien, allows users to watch and
download DRM-protected art house films.
41
It is highly probable that a subscription model will become the standard in the film world in the
longer-term future. A subscription model for films does not yet exist for the Internet, but there
is one for the physical world and it is a success. The Pathé cinema chain launched its Pathé
Unlimited concept several years ago. For 18 euros per month, subscribers have unlimited access
all Pathé cinemas in the Netherlands. An online subscription model for films would be a logical
replacement for the physical DVD and Blu-ray. Unlike music, which many consumers still want to
possess, consumers do not need to own a film that they only want to watch once. What role Bluray, the successor to DVD, will play is unclear and depends on the degree to which consumers
want to possess a physical copy of popular films. One option would be for the film industry to
market Blu-ray disks as premium products, with striking designs and loads of extras.
Figure 5: Strategies for the film industry
Experience economy
• cinema experience
enriched with 3-D
• Blu-ray as premium
product
Communities
• subscription sites with
network functions
Convergence
• Internet as marketing
tool
• video on demand
• subscription model
• decrease window size
Newspapers: already communities
“There is no fundamental
difference between ink
on paper and pixels on a
display. The core need for
knowledge is still present. It’s
just being met in a different
way.”
Newspapers have been competing with free radio and television news
Gert Jan Oelderik – NRC Handelsblad
Today, newspapers earn their money with a much larger range of different
for years, but they now have a new competitor, the Internet. No reason to
panic, but it is a reason to sharpen the focus on the traditional strengths of
newspapers: brand and professionalism. What is true for all other media in our
digital age is also true for newspapers: the product must be adjusted to the
options offered by new platforms and to the new desires of the consumer.
The old earnings model, which was limited to the sale of space in a physical
newspaper for advertising revenues, also needs to be expanded accordingly.
products and services.
42
Today, the physical newspaper still plays a central role in the operations of
newspaper publishers, but NRC Handelsblad and FD Media Group see the
delivery of high quality knowledge and information as their core competency,
independent of how their subscribers opt to consume their products. Their
point of departure is and always will be that the target group is willing to pay
for knowledge and information. Both NRC and FD do already operate in two
niche markets: the market for people with a higher education and the market
for people with a strong interest in financial affairs. For newspapers with a
“I believe print will continue
to exist, but it will definitely
also transform. The question
is: what does the consumer
want?”
Mark van der Kallen –
Thieme GrafiMedia Group
clear target group, a digital newspaper on the Internet is not a necessity, but
is primarily demand driven. Newspaper readers are gradually shifting from
physical newspapers to digital newspapers on the Internet. All of the large
paid newspapers in the Netherlands offer their subscribers the option of a
subscription for the digital version of their paper on the Internet alone. The
margins on this product are similar to those earned on the physical newspaper,
but the subscription fees are far lower. The transition to completely digital
is interesting in the longer term, and also highly probable, because lower
subscription fees attract more subscribers and eliminate the problem of
steadily increasing paper and distribution costs. The crux for newspapers is to
make the move to the Internet as central medium at the right moment in the
future. At some point, newspaper circulation will hit a critical low. Revenues
are decreasing and cost per unit is becoming relatively high. The physical
newspaper will evolve into a premium product and fervent readers will be
forced to purchase at a premium price.
Table 5: Annual subscription fees for Dutch newspapers in euros*
Physical newspaper
Digital newspaper
NRC Handelsblad
305
75
Het Financieele Dagblad
371
189,50
De Volkskrant
261
69,90
De Telegraaf
238
108
*Price with automatic payment/direct debit authorisation. The only e-paper subscription (NRC) costs 189. Source: ABN AMRO
“Theoretically, it would
be possible to publish
NRC Handelsblad without
advertisements.”
Gert Jan Oelderik - NRC Handelsblad
43
Profiling Relevance is a crucial issue for all newspapers with the rise of the
Internet as a competing news medium. ‘General’ newspapers, freesheets
and newspapers without a clear profile will run into problems if they are
unable to sharply position themselves. Without a clear profile, recognisable
target group and need-to-have content, consumers will no longer be willing
to pay for content. Without subscribers, newspapers are wholly reliant on
advertising revenues and that is not a very comfortable position to be in given
“Advertising revenues
are sensitive to economic
developments. As a media
company, you absolutely
have to push subscriptions,
using any means available.”
Barend of Doorn – Accenture
the difficulties freesheets have making a profit. Another strategy is complete
conversion to digital, with all distribution of the newspaper via the Internet
and as an e-paper. Metro is the world’s largest freesheet publisher. 54% of its
turnover in 2007, which
453 million, went toward printing and distributing the physical newspaper.
Complete conversion into an e-paper, with sufficient e-reader penetration
levels, would result in a significant decrease in costs. The conversion to
digital is not an easy job, however, because freesheets have to compete
with Internet, television and other digital newspapers in a completely digital
world. Conversion of paid general newspapers to digital based on advertising
revenues is also a difficult task. According to The Economist, a website or
e-paper must have at least twenty visitors or twenty readers to generate
advertising revenue equivalent to the value that a single paid subscriber
represents for a physical newspaper.
Focus In the longer term, digitalisation will change newspapers. Digital newspapers are more
flexible and they offer more opportunities to communicate with readers and to offer new
services. Newspapers will combine text, audio and video into a complete multimedia product. In
terms of content, the focus will shift to background and information. In that sense, newspapers
will begin to take over the function that magazines currently fulfil. This trend is already visible in
the growing number of special features in newspapers and the extra magazines that newspapers
publish on lifestyle, finance, culture and entertainment. In the future, subscribers will pick and
choose the items and topics they want to form their own ideal newspaper. They will also begin
to take part in dialogues with newspaper journalists. User Generated Content is not really a new
phenomenon. Newspapers have been publishing letters sent in by their readers for decades, but
the extent to which the public participates in media has never been as high as it is today. Still, the
influence that amateurs exert over the media must not be exaggerated. The demise of Skoeps.
nl is evidence of the fact that professionals will always produce the majority of content. Their
objectivity and expertise will always be needed in news and background articles.
44
Revenues Newspapers are diversifying their sources of revenue. Higher margins on more
specific advertisements are compensating for decreases in generic advertising volume. New
archive services are being introduced to exploit the treasure trove of content that newspapers
possess. Subscribers and site visitors are able to put together their own dossiers with articles
and graphics from newspaper archives and download them as PDF files. Some newspapers
charge for this service. Others do not. Another revenue source that is increasing in importance is
direct sales of products and services for specific target groups. Newspapers are well advised to
prepare for a future in which consumption of most their services occurs via the Internet, because
that opens the door to an exciting range of new opportunities.
Figure 6: Strategies for newspapers
Experience economy
• physical newspaper as
premium service
• experience concepts
(debates, etc.)
Communities
• interactive newspaper
sites
• sale of special offers to
readers
Convergence
• multimedia newspaper
• video on website
• Internet as new central
platform
• multimedia e-paper and
newspaper on the
Internet
• Long Tail services (archive)
45
Television: the battle for rights
Television’s old business model is familiar and simple: the television broadcasting networks
pay television producers to make programmes and the broadcasting networks broadcast the
programmes (often just once) and earn money by selling advertising slots to advertisers. In this
quasi-tripartite relationship, the networks are at the centre of the value chain.
Figure 7: Traditional business model for television
content
TV producer
reach
TV network
money
Advertiser
money
Source: ABN AMRO
But this old model is being rapidly abandoned in favour of a far more complex model in which
the networks, producers and advertisers have a real tripartite relationship. The initiative in
making a new television format can come from any one of these parties. These parties will also
share more equally in decisions regarding financing, content and broadcasting rights. Although
public broadcasting networks do have to comply with more stringent regulations in the area of
advertiser sponsoring for programmes, advertiser sponsoring will become more frequent in the
television world. One of the consequences of the shift from advertising spot generated revenue
to sponsoring generated revenue is that advertisers will have greater control over television
format content. Obviously, advertiser control will be subject to media legislation. The Dutch
government recently ratified the new Media Act, for instance, which goes into effect at the end
of 2008.
“You have to make sure you’re a brand, not just a network, but
most networks are currently rather vague when it comes to
what their brands stands for.”
46
Television broadcasting networks face three important challenges in the new digital age:
Retaining reach for their content on the digital television, Internet and mobile telephone
platforms;
Obtaining all of the rights required to retain reach;
Conveying a clear profile for their brand and their network.
capacity it requires. Glass fibre other technological advances may change
“Television is the first
window and the origin for
everything else, for the entire
product life cycle: from DVDs
to events, communication,
online, games and
merchandising.”
that in the future, however, making far-reaching integration of television and
Michel Mol -
the Internet possible. Co-operation with Internet service providers, similar to
The BBC is an example of a strong brand with a clear Internet strategy. The
BBC launched its iPlayer website, the British version of the Dutch catchup television website Uitzendinggemist.nl, in 2007. The BBC’s iPlayer site
generates so much Internet traffic that conflicts regarding the costs of the
extra traffic arose between the BBC and Internet service providers. These
conflicts reveal one of the inherent weaknesses of the Internet, i.e. it is not as
suitable as television as a mass medium because of the bandwidth and server
the co-operation established by Internet service providers and Nederlandse
Publieke Omroep, is the best bet for television broadcasting networks at this
point. The broadcasting networks have already established successful Internetbased initiatives to strengthen their relationships with viewers. One example
is the Internet forum for the Dutch soap series Goede Tijden, Slechte Tijden
on the RTL 4 television network’s website. Viewers hold lively discussions of
the story lines and characters in the soap series on this forum before and after
every episode.
Figure 8: New business model for television
Reach / Result deals
TV network
de
a
ls
Advertiser
t/
en
fo
rm
at
s/
nt
Co
Re
s
ul
t
Cash
Ca
ash
h flow
flows
ws
M
ul
tim
ed
ia
co
nc
ts
ep
ts
/
TV
gh
Ri
Source: ABN AMRO
TV p
producer
cer
47
Television producers must create more all-round media concepts for advertisers. The television
format remains the most important component, but becomes the driver of a cross-media concept
that integrates the Internet, radio, print media and the mobile telephone. Rights have become
more important to producers. They generate more revenues from international sales of television
formats, Long Tail video on demand and merchandising. Paid and advertiser-sponsored video on
demand growth is expected to be enormous. The focus will be placed on possession of longterm broadcast rights for all platforms.
“Everything is possible:
any mixture between the
extremes of broadcasting
without any rights
whatsoever to production
with all rights. All
negotiations cover price,
rights and international
potential.”
Co-operation The television networks have entered the domain of
television producers with their in-house television productions. At the same
time, producers are experimenting with independent content broadcasting.
The chance of networks and producers becoming full-fledged competitors
is low however. Establishing a television network with a new brand name
is a difficult task, as the failure of the Talpa network demonstrates. Theme
channels are an option for independent producers, but their core business
will remain the development of formats because that is what they are good
at. Television networks, producers and advertisers will continue to play the
game delineated by the fight for financing and content rights together because
co-operation delivers more benefits than competition does. The networks can
spread the financial risks based on clear agreements and result deals with
television producers and advertisers. Via sponsoring, new types of advertising
on the Internet and Long Tail video on demand, they will be able to generate
alternative revenues to compensate for the decrease in television commercial
revenues. Independent television producers also benefit from a clear
distribution of rights and the ability to take strong formats to the international
market, while leaving the Dutch market to the television networks.
Figure 9: Strategies for television per opportunity
Experience economy
• merchandising
• live and reality concepts
Communities
• brand profiling
• websites with familiar
programmes
Convergence
• co-operation
• theme channels
• digital television
• video on demand
• mobile television
48
media in beeld /// samenvatting
media in beeld /// samenvatting
49
Summary
Media companies are currently in a state of major change, in a new world in which new business
models and digital media products play a major role. Digitalisation, the Internet and new
consumer preferences are threats for traditional media companies. They are being confronted
with greater competition and are losing their grip on their target groups and content. In addition,
the advertising market, the primary revenue source for many media companies, is also shifting.
Advertisers today are focusing less on reach and more on specific target groups and measurable
sales results.
Luckily, however, digitalisation also opens up new opportunities. Production of digital media is
inexpensive and the cost of digital distribution is negligible. Distribution via Internet also generates
opportunities to benefit from Long Tail effects: high and long-term availability of large numbers of
niche products and the ability to generate revenue on niche products for longer periods of time.
Prices for digital media products can be decreased, thus making the products more appealing to
consumers. Consumers have the opportunity to use new products and services such as music
and film subscriptions, e-reader and Internet-based digital newspapers and on-demand television
and video services.
Media are and always will be dependent on viable target groups, but these target groups
are smaller and more specific in the digital world. Fragmentation of the media offering and
convergence are a threat on one hand, but also generate new opportunities to consolidate and
strengthen relationships with target groups. New media networks offer their content on all
available platforms: print, television, Internet and mobile telephone. The earnings model applied
by these networks is also fragmented and includes multiple revenue sources.
Access to digital content and services on the Internet is the cornerstone of future earnings
models in the media. The sale of physical products to consumers will decrease in importance
as modern digital consumers shift away from the focus on possession that characterised the
physical media carrier era in favour of availability, experience, convenience and service. The
new focus can be online or offline, with the enormous interest in live events and concerts as
one example of the latter focus. The success of many new business models is dependent on
development of sufficient critical mass and acceptance on the part of consumers. But rest
assured, critical mass will be achieved and consumers will embrace the new models. We are on
the brink of an exciting new age, the digital media age.
50
media in beeld /// nawoord
Conclusion
Journalists and writers never tire of writing about the media sector. The fact that digitalisation
is driving dramatic changes is evident, but the question of what strategy companies should
employ in response to these changes is a difficult one. And that is why ABN AMRO published an
extensive assortment of strategies per sector, with the trends, threats and opportunities that lie
at the base of each of the strategies, in Media in view 2008.
A number of conclusions can be made based on these strategies:
First of all, we need to be conscious of the fact that we are on the brink of a radical change in the
media landscape: access to digital content on the Internet and user-friendly services related to
that content are the cornerstones of any successful earnings model.
But awareness alone is not enough. There are two important barriers that slow the change
process. The first of these barriers is the existence of two asynchronous target groups: the digital
immigrants and the digital natives. Two different strategies are required to serve both target
groups. For digital natives, in particular,the focus lies more on availability than on possession. The
second barrier is the immaturity of the digital landscape, especially in the areas of technology,
organisation and IT support. This second barrier may actually be good news for media companies
that are lagging behind in their response to the transition. These companies have an opportunity
to get up to speed, but they must do it quickly. Do not wait to learn from digital cases or to invest
in new media initiatives, but do it today.
media in beeld /// nawoord
51
Finally, media companies need to adjust their strategies to respond to the impending rise of a
new digital world. The four opportunities that are described in this report, i.e. digital distribution
& production, cross-media convergence, experience economy and communities & new media
networks, are the drivers for success or failure in the digital world. How should companies
approach these drivers? Is your company profiting enough from the opportunities that change is
creating? Is your response adequate to keep the competition at bay? New organisations are in a
position to score points against traditional media companies in the digital world.
The digital world and the opportunities and threats it presents are excellent points for discussion
between executives and bankers in the media sector and this is precisely why we study the
media sector and meet with media companies to exchange ideas and experiences. We know
that moving forward is particularly important in a poorly performing economy and advertising
market. Recognition of promising innovations and new earnings models is absolutely crucial.
ABN AMRO participates in a range of different initiatives that highlight innovative companies
and concepts in the area of new media, including the ABN AMRO New Media Award and the
Accenture Innovation Award. ABN AMRO also organises matchmaking events to bring the major
media companies into contact with innovative young entrepreneurs.
At ABN AMRO, we appreciate theory, but we also know that what happens in practice is what
really counts in the end.
Menno van Leeuwen
Sector Banker Media and Technology
ABN AMRO Sector Advisory
52
media in beeld /// namenlijst geïnterviewden
List of interviewees
Company
Name
Position
Accenture
Barend van Doorn
Executive Partner
EMI Music Publishing
Arjen Witte
Managing Director Benelux
EMI Music
Joost Geerts
Digital Marketing Manager
Endemol
Rocco van den Berg
Head of Business
Development & Licensing
FD Media Group
Jacques Kuyf
CEO
Hyves
Raymond Spanjar
Chief Hyving Officer
Kobalt
Marceline Beijer
CEO
Michel Mol
Director of Innovation and
NRC Handelsblad
Gert Jan Oelderik
Publisher
Sellaband
Pim Betist
Creative Director/Founder
Thieme GRAFIMEDIA Group
Mark van der Kallen
General Director
21st Century Music
Erik de Zwart
Director/Owner
New Media
media in beeld /// begrippenlijst
53
Begrippenlijst
Cross-media
Making use of different media (TV, Internet, mobile) with cross-fertilisation
between the different media.
DivX S
Standard compressed format for the storage of digital video files.
DRM
Digital Rights Management, a system for the individual management of
authors’ digital rights.
DVB
Digital Video Broadcasting, an internationally recognised open standard for
digital TV and radio that was developed in Europe.
DVB-H
Digital Video Broadcasting - Handhelds, the mobile variant of DVB, which is
suitable for mobile airwave appliances.
DVR
Digital Video Recorder, hard disk recorder for the storage of digital video and
audio.
Hyves
A Dutch online social community. Similar foreign sites include MySpace and
Facebook.
IPTV
Internet Protocol Television, a technology that transmits TV or video signals
via the Internet Protocol.
iTunes
A digital media player application introduced by Apple for playing digital music
and films. In addition, the software manages the content on the iPod and the
iPhone.
Long Tail
Literally the long tail in a statistical probability distribution; the term is used to
indicate that the sum of niche markets can be greater than a high-volume
market with popular products. The term was coined by Chris Anderson.
Set-top box
A decoder that converts digital signals for the TV set to enable (interactive)
digital TV and online services.
User interface
Parts of hardware and software that jointly enable interaction between the
user and the appliance (TV and PC).
WiMAX
Worldwide Interoperability for Microwave Access, a new standard based on
the standard 802.16 that serves to provide wireless broadband access.
YouTube
Website on which films, video clips, movie trailers, adverts for new gadgets
etc. can be shared. Google took over YouTube at the end of 2006.
54
media in beeld /// literatuurlijst
Bibliography
Reports
Concentratie en pluriformiteit van de Nederlandse Media, Commissariaat voor de Media, 2006
De toekomst van reclame in een digitaal televisielandschap, TNO, June 2006
Imagining the future of newspapers, Newspaper Association of America
Media predictions – TMT Trends 2008, Deloitte & Touche, 2008
Music experience and behaviour in young people, British Music Rights, 2008
Paid content strategies for newspapers, City University, July 2008
Televisierapport 2007 – Mini, midi, mega, SPOT, 2008
The challenge of change, Accenture Global Content Study, 2008
The end of television as we know it, IBM, 2006
Articles
After the Radiohead revolution, Portfolio.com, October 2007
Beyond ownership, Financial Times, March 2008
Copyright is achterhaald fenomeen, Het Financiële Dagblad, 2007
Free - Why $0.00 is the future of business, Wired, March 2008
Gratis levert dit keer wel winst op, Het Financiële Dagblad, 2007
Hollywood and the Internet, The Economist, February 2008
How much is music worth?, Newsweek, October 2007
Kranten halen meer uit de consument, Dow Jones Nieuwsdienst, 2007
Live Nation legt top-acts vast, NRC Handelsblad, April 2008
Met een audiovisueel rugzakje de wereld in, NRC Handelsblad, June 2008
Movie exec sees new era in 3-D films, Portfolio.com, March 2008
Nooit meer zeulen met de filmblikken, NRC Handelsblad, March 2008
Online music fees pose digital dilemma, BBC September 2007
Op weg naar het einde van boek en krant op papier, De Volkskrant, February 2008
Papieren krant wordt niet weggevaagd door Internet, De Volkskrant, March 2008
PCM zoekt omzet in reizen, boeken en cd’s, Het Financiële Dagblad, April 2008
Ruilen zonder huilen, Het Financiële Dagblad, 2007
Strategie dagbladen – De krant in de verdrukking, Het Financiële Dagblad, November 2007
The Long Tail, Wired, 2004
Who killed the newspaper?, The Economist, August 2007
Websites
www.emerce.nl
www.mediaonderzoek.nl
www.tijdsbesteding.nl
media in beeld /// colofon
55
Acknowledgements
This report was written on behalf of the Sector Advisory Department of ABN AMRO Bank N.V.
Author
Hans Arendshorst, Policy & Portfolio Sector Research ABN AMRO
Interviews
Hans Arendshorst, Sector Analyst
Menno van Leeuwen, Sector Banker Media and Technology
With the assistance of
Wendy Klein, Hèleni Kernkamp, Conrad Roelen, Floris van Oranje, Olivier den Tex, Pieter Joost
van Dam, Charlotte Koppen de Neve and Erik Jan Gelink
Distribution
ABN AMRO Sector Advisory, tel. 020 - 629 37 76.
Contact persons: Menno van Leeuwen ([email protected]) and Wendy Klein
([email protected]).
You can also find this publication at www.abnamro.nl/mediateam in the ‘publications’ section.
Disclaimer
The views expressed in this publication are based on information that was carefully gathered and
processed by ABN AMRO Sector Research. Neither ABN AMRO nor any officers of the bank can
be held liable for any inaccuracies in this publication.
© ABN AMRO, September 2008
This publication is intended for personal use only. Copying and/or distribution of this publication is
not permitted without the express written permission ABN AMRO Bank.
media in beeld ///

Strategies in a digital world

Transcription

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