Bram Lievens Prof. Dr. Caroline Pauwels Prof. Dr. Leo Van Audenhove Studies in Media, Information & Telecommunication (SMIT) Institute for Broadband Technology

Bram LievensProf. Dr. Caroline PauwelsProf. Dr. Leo Van Audenhove

Studies in Media, Information & Telecommunication (SMIT)Institute for Broadband Technology (IBBT)

presentation @ AEDE Conference - November 16, 2006

The mobile digital newspaper:Lessons learned from the epaper project

Periódicos electrónicos en pruebas

2

The mobile digital newspaper

CONTENT

1. General context2. E-paper project3. User experience4. Business models5. Conclusions6. Lessons learned for the newspaper

industry

3


Preliminary - SMIT

user analysis

business modelling

policy analysis & foresight

4


Preliminary - SMIT

Other e-publishing projects A4MC3: Architectures for Mobile

Community Content Creation mobile communities and community

journalism http://a4mc3.ibbt.be

Fleet: Flemish e-publishing Trends Interdisciplinary fundamental research Journalist, Editor & User http://www.fleetproject.be

5


1 - CONTEXT

Bit & byte - Hip & Hype of today Journalist

Role challenged by community and user contributions Evolving from ‘lecture’ mode to conversation mode New media ecology: no one has control Journalist as authenticator

Editor Rise of Web 2.0 Information worthless because of abundance Attention becomes a scarce commodity Value shift: Media 2.0 dominant strategies are based on economies of

scale and scope in production, distribution and search User

From consumer to prosumer Rising consumption of micro-chunks of information

In the new media world, the love triangle between editor, journalist and reader is set to change based on equal power and mutual and complementary needs

6


1 - CONTEXT

Project Where, when?

Who? Results?

Les Echos

France,Started recently

Newspaper Les EchosConsulting company Tebaldo

After presenting the prototype, Le Monde, La Parisienne & l’Equipe expressed their interest in trials too en got involved in the research aspects of the project

The New York Times

USA,To start in a couple of months

NYT & Microsoft Not yet

International Herald Tribune

International,2006

IHT (NYT Co)

Not yet

eNews International,06-08

Ifra,20 major publishing houses,4 technology developers

Not yet

Asahi Shimbun

Japan, Since 2000

Newspaper Asahi Shimbun,Sportcontent provider Nikkan, 4 telecom operators

1 million users 20.000 subscriptions for print via mobilenew competitors have arisen

MINDS platform

GermanySince 2005

Partnership between 40 German newspapers and dpa (German press agency)

Introduction cost are low -> easier for papers to start offering online servicesFrom 300 to 10.000 users per activity -> little but direct revenues -> mobile brand awareness

7


2 - E-paper project

IBBT research project Interdisciplinary institute on Broadband

Technology Technological, user oriented, social & legal

research Demand driven Public private partnership

8


2 - E-paper project

CONTENT ADVERTISEMENT

TECHNOLOGY

device

network

RESEARCH

9


2 - E-paper project

Project goals Generate generic knowledge about the potentials

of news content on a dedicated electronic reading device (Iliad eReader)

Test some common hypotheses concerning success factors in practice

10


3 - User experience

Living lab setting Dedicated testpanel

200 test users, within subscribers “Tijd Purposeful sampling

Maximum variation Sex, age, social class, comparable professions

Phenomenal variation Off- and online use of newspapers Mobility Use of interactive services (vb: download ‘de Tijd’) Ownership of devices (PDA, laptop, smartphone,...)

Specific reading behaviour Functional, mostly more then 1, once in a day

11


Video demo

12


3 - User experience

Prototype - bias Device

Screen quality biggest asset Size, weight & battery

Operational Not intuitive enough Feedback of the device Slowness Different logics: ICT vs book

Content Link with printed newspaper Navigation and structure needs improvement

13


3 - User experience

Issues for improvement Connectivity Speed Usability of buttons Lay-out & navigation structure Zoom function needed

Other uses Specific context Mobility

More content Old habits die hard

14


4 - Business models e-paper

Research Question What are possible business models for ePaper devices

in the newspaper industry? BUT technology broadens scope

Publishing industry - Print Media Information industry

4 main levels of analysis Functional level: Dealing with the architecture of a

product or service Strategic/organisational level: Dealing with the roles

and relations between actors Financial level: Dealing with sources of revenue and

financial flows Value proposition: The way value is created in the

market

15


4-1 - Scenario development

16


4-2 - Kiosk-Model: Value Network

Intermediary plays important role Integrates two markets 1) readers; 2) information providers Causes network externalities, especially online

Advertising possible at two levels Can cause friction

17


4-2 - Kiosk-Model: SWOT

Strengths WeaknessesLarger selection of contentOne platform for all contentNewspaper retain editorial function

New initiative so:Higher start-up costsNeed for individual marketing and branding

Newspaper looses customer relation

Opportunities ThreatsNew platform for digital newsOne open standard

Conflict over revenue sharingConflict over advertisingIntermediary risks to become dominantIntermediary shifts towards role of content provision

18


4-3 - iTunes-Model: Value Network

Intermediary plays central role Integrates two markets 1) readers, 2) content providers BUT ALSO device suppliance and service provision Content on single platform and on only one type of device

Disaggregation of content

19


20


4-3 - iTunes-Model: SWOT

Strengths WeaknessesHigher selection of contentSingle platform for all contentStrong personalisation possibleStrong compatibility between service and device possibleMight be in line with changing user experience

New initiative, so:Higher start-up costsNeed for individual marketing and branding

Newspaper looses customer relationNewspaper looses part editorial function

Opportunities ThreatsNew platform for digital newsPossible high market penetration of single device

Conflict over standards possibleConflict over revenue sharing possibleConflict over advertisingIntermediary might become dominantIntermediary might shift towards content provisioning

21


4-4 - Business models

Newspapers Remain in a rather unique position as mass medium, brand and

trustworthy Have strong customer relations Have shrinking market but willingness to pay ePaper allows for more constant monitoring of newsreaders

(follow the reader technology) Believe in value of editorial function

Path dependency of the eReader might be possible pitfall in the future

Scenarios might co-exist Kiosk model more for newspaper publishers iTunes model might seem possible scenario for print in general &

ebooks in particular BUT most online examples rely on long tail Newspapers have short tails

22


5 - Lessons learned

1. High potential of the device vs. Importance of look ‘n feel Positive on screen quality and size But look ‘ feel of newspaper 48,9% of test panel would consider buying an eReader (if fully

operational Reading device (vs. AIO)

2. Old habits die hard No change in reading pattern Strong link with printed newspaper

Navigation Content (trust, aggregator,...) Representation

3. Substitution or complementarity? In this stage, the device is not ready but it provides users with

some additional options (time, place) Strong competitor for printed paper in the long term

23


6 - Lessons learned

4. Control of the user: choice/complementary: AND & AND story Personalised & full News of today (breaking news) &. News of yesterday Payments: fee & free

5. Newspapers as aggregators Brand as trustmodel

Offer Certified, trusted & authentication

6. Business model• Kiosk model (in co-existence) is surely looks interesting for

the newspaper industry in the future. Yantai Daily Media Group (China) offers since Oct 2006

all its newspaper titles on the Iliad eReader7. Interesting issues identified, but further research needed

24


Thank you for your attention Q & A

Further informationBram Lievens - [email protected]. Dr. Caroline Pauwels - [email protected]

http://smit.vub.ac.behttps://epaper.ibbt.be

Documents

Bram Lievens Prof. Dr. Caroline Pauwels Prof. Dr. Leo Van Audenhove Studies in Media, Information & Telecommunication (SMIT) Institute for Broadband Technology