1. WAYS TO
CHANGE
Insight on How to Succeed in the Digital Future
of Magazine Publishing
Jack Griffin
CEO and Co-founder,
Empirical Media
February 27, 2013

2. There is no doubt that
success in media from now on
will be digital

3. The Only Constant is Change
3

4. The Non-linear Networked World
4

5. A Connected Mobile World…
7 Billion People as of November 2011 (and growing!)
77% connected by mobile devices
5
5.3 billion at the end of 2010; U.N. Telecommunications Agency, http://www.itu.int

6. …and More to Come
8 Billion People in 2020
90% connected by mobile devices
6
5.3 billion at the end of 2010; U.N. Telecommunications Agency, http://www.itu.int

7. The Opt-In, Always Connected Consumer
7

8. Digital’s Growth to Dominance:
67% of total E&M spending growth from 2011 to 2016 will be generated by digital
DIGITAL SHARE OF GLOBAL E&M SPENDING
37.5%
36.1%
34.2%
32.6%
30.3%
28.0%
2011 2012 2013 2014 2015 2016
TOTAL
GLOBAL
E&M
SPENDING
=
$1.6
TRILLION
in
2011
/
$2.1
TRILLION
in
2016
Source: PwC 2012; Note: Digital spending consists of broadband and mobile Internet access; online and mobile Internet advertising; mobile TV subscriptions; digital music; electronic home video;
online and wireless video games; digital consumer magazines circulation spending; digital newspaper circulation spending; digital trade magazine circulation spending; electronic consumer, 8
educational, and professional books; and satellite radio subscriptions.

9. There is no doubt that
China is ready to lead the
future of digital media

10. China - World’s Largest Market for Internet Use
China will have nearly twice the number of Internet users as the U.S. and Japan
CHINA INTERNET WATCH
800
701
600
513
384 2009
400
269 2011
240 245
2015e
200
87 88 91
0
China United States Japan
2011 Penetration 38% 80% 70%
2015e Penetration 51% 83% 72%
10
Source: BCG

11. Top Five Tablet Markets by Country in 2012
Indonesia
3.88%
Thailand
4.04%
United States United Kingdom
25.70% 5.27%
China
7.82%
11

12. Transition From Print is Already Underway
CHINESE NEWSPAPER CIRCULATION
7,000,000
6,250,000
copies sold
5,500,000
4,750,000
4,000,000
2008 2009 2010 2011
12

13. The important question is
how do we transform our
businesses?

14. Have We Been Here Before?
“A new medium is never an
addition to an old one, nor
does it leave the old one in
peace. It never ceases to
oppress the older media
until it finds new shapes
and positions for them.”
– Marshall McLuhan, 1964
14

15. Digital Media Absorb and Challenge Every
Traditional Model
15

16. Especially for Print Publishing, the Tablet is
the Major Disruptor
ESTIMATED GLOBAL TABLET SALES & RETAINED BASE
2012-2016
760
640
389
Millions of Units
500
320
340 230
140
170 375
320
270
200
140
2012 2013 2014 2015 2016
New Unit Sales Retained Units
16
Source: Forrester Research, June 2012

17. The Comfortable, Linear World of Print
ad sales
subscriptions
newsstand
17

18. Digital Transformation
1961 2011
18

19. Print Media’s Decisive Years
Newspapers Magazines
Change 2007-2012 Change 2007-2012
Global Spending Global Spending
+2%
Circulation
Advertising Advertising Circulation
-11%
-17%
-24%
19
Source: PriceWaterhouse Coopers, 2012

20. Making The New York Times Digital: Web App
20

21. Advertising Becomes a Lesser Factor
21

22. Result: NY Times’ Digital Circulation Now
Exceeds Daily Print Edition
640,000
Digital
Subscriptions
+13%
Q4 2012
22
Advertising Age, February 7, 2013

23. Ways to Change

24. Like Calculus, Digital is Cumulative
24

25. Convergence Adds New Competition
for Users’ Time and Attention…
TABLET USERS – U.S.
Shopping, 5%
Voice/Text, 4%
Documents, 5%
Video/ Audio, 25%
Email, 5%
Reading, 6%
Localization, 11%
Social, 18%
Browsing, 14% 25
Source: McKinsey iConsumer 2010

26. And New “Jobs” and Opportunities…
mobile is becoming an important companion,
particularly for the in between times
26

27. Content That Fits Every Platform
27

28. Digital Organizations:
New roles and skills
CEO
Chief Revenue Chief Content Chief Marketing
Officer Officer Officer
Partnerships/
Data and Analytics Sales Social Media User Experience Subscriptions Discoverability Opportunities
28

29. Commitment to Perpetual Change:
The Newsweek Experience
29

30. 30

31. 31

32. 32

33. Jack Griffin
CEO and Co-founder,
Empirical Media
February 27, 2013