POLISH MEDIA: EVERYTHING IS POLITICS AmCham Marketing & Communications Committee March 2017
OVERVIEW: THE POLISH MEDIA MARKET THE DUOPOLY: DIGITAL AND TV DECLINE OF PUBLIC TV ACCELERATES ONLINE VIDEO IS EXPLODING THE ADBLOCKALYPSE PRINT MEDIA’S AGONY CONTINUES THE STAMPEDE TO DIGITAL STORM CLOUDS OVER PRINT: SOROS TO THE RESCUE! REPOLONIZATION: FOLLOWING IN PUTIN’S FOOTSTEPS? HOW TO GET NOTICED CONTENT MARKETING TALKING TO JOURNALISTS: 3 TIPS 2
The Duopoly: Digital and TV Similar to other markets: Digital is squeezing out print and radio Media groups are expanding online video Trend is accelerating: Wyborcza sacking top journalists; Sukces and Bloomberg BusinessWeek going digital-only; BusinessInsider enters the market Distribution of Ad Spending USA Poland Czech Rep. Germany 2,4 2,5 2,4 5,1 5,9 7,3 6,8 8,7 7,7 7,9 10,1 9,9 7,9 4,6 7,3 3 19,1 19 29,2 21,1 19,8 18,1 17,3 27,1 19,9 15,8 17,2 33,3 16,4 13,9 9,4 12,1 10,2 13,9 12,9 15,5 11,3 22,2 7,7 6,6 4 13,3 9,9 1,9 7,5 4,6 7,8 6,7 42,7 7,4 6,8 7,1 4,7 4,1 34 6,1 23,7 4,4 4,3 4,2 49,7 49,6 47,7 45,9 45,7 44 43,6 42,9 41,5 26,7 25,2 23,8 2005 2010 2016f 2005 2010 2016f 2005 2010 2016f 2005 2010 2016f Source: MEC TV Radio Newspapers Magazines Internet Other 3
Decline in Public TV Viewership Accelerates Expansion of terrestrial digital: continued fragmentation, continued dominance Public TV market share continues shrinking after politics takes center stage Polsat takes the lead as most popular TV channel, overtaking TVP1 TVN’s Fakty becomes top news program Viewers flee TVP’s main news programs, then stay away for prime time Top 4 (TVP1, TVP2, TVN, Polsat) 2016 2015 share TVP2 78% TVP2 74% 8,72% Polsat 67% Polsat 8,32% 60% 11,45% 11,60% 48% 43% 41% TVN TVN 10,37% TVP1 10,65% TVP1 11,10% 12,28% 2005 2007 2009 2011 2013 2015 2016 Source: MEC 4
Politics Shapes Ad Spending State-owned giants halt advertising on TVN, spending it on less popular TVP PGNiG absent from TVN since 2015, PGE left in 2016, Orlen and PZU in 2017 Ad prices at private stations unaffected so far A necdotal evidence of advertisers saying “I’m not going to advertise on that propaganda mouthpiece” Remember: TV in Poland is still CHEAP compared to elsewhere in Europe Top 10 State-Owned Advertisers on TVP and TVN JAN-FEB 2017 2015 2016 TVN TVN 21% 16% TVN 39% TVP 61% TVP TVP 84% 79% Source: Kantar Media 5
Online Video Is Exploding Online video ad spend is PLN 300 mln - 350 mln Higher than spending on dailies, almost 10% of TV spend Mainly taking share from press; in other markets, becoming a threat to TV Investments in online video: Poles don’t read Netflix vs Showmax: Poles will pay, but: • they demand value for money • local content is key Most Popular Sources of Long-Format Videos in 2016 76% 43% 35% 33% 30% 25% 18% 16% 9% 4% aVOD aVOD/sVOD/tVOD aVOD/sVOD PAID TV sVOD Source: MEC VIDEO TRACK 2016 6
Key Trends: AdBlockalypse Number of users with ad blockers installed is No. 2 in Europe Trend is particularly strong among young users Media are starting to demand white-listing Advertisers are responding by shifting to Facebook and content marketing Source: MEC Wavemake r 7
PRINT MEDIA’S AGONY CONTINUES THE STAMPEDE TO DIGITAL STORM CLOUDS OVER PRINT: SOROS TO THE RESCUE! REPOLONIZATION: FOLLOWING IN PUTIN’S FOOTSTEPS? 8
The Stampede to Digital Agora expands digital; >100,000 Wyborcza subscribers (cf. NYT , WaPo ) Dailies expand Internet TV offerings: Wyborcza , Rzeczpospolita , Parkiet Arms race – Ringier Axel Springer (Onet, Forbes) vs Wirtualna Polska: • heavy investment in expansion of internet television services • new channels/programs; hiring celebrities, including those sacked from public TV • No. 3 web portal Interia also expanding Users of Weeklies ’ Websites (mln) 2,98 2,51 1,72 1,60 1,47 1,31 1,30 1,09 0,68 0,63 newsweek.pl wpolityce.pl niezalezna.pl polityka.pl wprost.pl Source: Gemius/PBI Dec-15 Dec-16 9
Storm Clouds Gather Over Print Sales of dailies continue to fall; only Gazeta Polska Codziennie sees sales growth Agora cuts costs, sacking top journalists Soros buys 11% of Agora from pension funds; political gesture to defend independence State-owned Orlen/Lotos limit displays of Wyborcza newspaper at their gas stations 600 000 Average Sales of Dailies 500 000 Fakt 400 000 Gazeta Wyborcza Average sales Super Express 300 000 Rzeczpospolita Dziennik-Gazeta Prawna 200 000 Gazeta Polska Codziennie Puls Biznesu 100 000 Parkiet 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: ZKDP 10
The Word of the Year: Repolonization Government working on antitrust law changes to limit foreign ownership (cf. U.S., France) After banks and power, another sector where government wants to increase influence Axel Springer CEO: Poland following in Putin's footsteps (retroactive ownership limits) Market impact: • will they find buyers? • quality may drop • exodus of journalists could push down sales • No.1 Radio: RMF FM – 24.5% market share • No.1 Magazine Publisher: 38 titles • No.3 web portal: Interia.pl • No.1 Daily: Fakt – 281,242 copies sold in 2016 on average • No.3 Weekly: Newsweek -112,112 copies sold in 2016 • No.1 web portal: Onet.pl • Forbes • No.1 publisher of regional dailies: 20 titles • 150 regional weeklies 11
HOW TO GET NOTICED CONTENT MARKETING TALKING TO JOURNALISTS: 3 TIPS 12
How to Get Noticed: Content Marketing Solution to AdBlockalypse Can address all media and platforms Businesses need an arsenal of content creators (including professional writers, editors, designers, analysts) Consumers are spending more time online: use data to drive strategies 13
Talking to Journalists: 3 Tips Talk to news agencies: ISB News, PAP Biznes • media outlets are cutting their business desks Recognize that cross-platforming may push down quality • print journos required to write online (Bonnier: Puls print, pb.pl and bankier.pl; Wirtualna consolidates money.pl with finanse.wp.pl; Axel) • news may go stale as it appears in other media from the same owner Changes in the press law: deadline for authorization; other changes? 14
ALDGATE STRATEGY GROUP SP. Z O.O., UL. NOWOGRODZKA 21, 00-511 WARSZAWA, WWW.ALDGATE.PL O LGA M ARKIEWICZ N ATHANIEL E SPINO P AWEŁ K OZŁOWSKI (+48) 601 286 362 (+48) 696 041 731 (+48) 601 957 807 olga.markiewicz@aldgate.pl nathaniel.espino@aldgate.pl pawel.kozlowski@aldgate.pl
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