Our purpose today How content is being determined by platforms . Now - PDF document

Impact on the Newspaper Industry By Howard L Finberg Finberg-Gentry The Digitat Futurist Consuttancy Tempe, AZ & Pasadena, CA Our purpose today How content is being determined by platforms . Now and in the future . How newspapers need to be positioning themselves to serve multiple devices E&P Interactiue ConJerence zooz / "Digital Deliueronce"/ Finbery-Genw , the Digital Futurist ConsultancA

Some of my background Experience in newspapers & newsrooms r' The Arizona Republic / San Francisco Chronicle r' ChicagoTribune "' New York Times Experience in technology & strategy / Technology leadership at The Republic / Technology leadership at Central Nelvspapers r' Technologyventure funding at CNI Ventures Founded The Digital Futurist Consultancy / Help managers understand the impact of technology on their businesses / Help Web site manager with content and revenue challenges r' Help emerging companies understand the media industry Otherbackground r' Presidential Scholar at Po).nter Institute / Senior Fellow at American Press Institute E&P Interoctiue Conference 2oo2 / "Digital DeLiuerance"/ Finberg-Gentry, the Digital Fuho{st Consultancy The Deep lmpact of change Internal . How we do business? External . What is our business? E&P Interactiue Conferenee zooz / "Digitql Deliverance"/ Finberg-Genh'y, the Digital Futurist Consultanca

lnternal impact Our challenge . How do we make the most effective use of resources? . Doing more with less E&P Interactiue ConJerence zooz / "Digital Delluerance"/ Finberg-GentrrJ, the Dlgitol Futurist Consultoncr/ Internal impact The dirty little secret . Our customers are getting smarter /But not enough to make life easier E&P Interactiue ConJerence zooz / "Digitol DeliDerqnce"/ Finberg-Gentry, the Digitol Futurist Consultancy

External impact More important than internal changes . Our industry is at an "inflection point" . Disruptive technologies are everywhere E&P lileractiue Conference zooz / "Digital DeLiuerance"/ Finberg-Genh'!), the Digital Futurist Consultancy Disru ptive tech nolog ies With disruptiue technologies, a compony needs to throu off its existing culture and methods of doing business. I,Vhile current customers are important, a disruptiue technology demands that a componA make sure these customers do not driue the company's direction. In other taords, it means making sure old relationshlps - and their current economic ualue - do not driue business decisions needed for the :' . E&P Intetactiue Conference zooz / "Digitul Deliuercnce"/ Finbery-Genfi'y, tlle Digital Filturist Consultonc!)

What are those disruptive devices? The Internet itself . Broadband Information devices . Wired . Wireless Reading devices Other digital devices . Audio . Video , Gateways E&P Interoctiue Conference zooz / "Digitol DeliL'eronce"/ Finbery-Gentry, the Digital Futto'ist Consultancy Technology adoption rates 1 ire jl , Hn;: . LU], -.lC:i. . -,/ ' i "' [,(j. 4 5 fr 7 a 5 :n 11 1? '!l 14 15 B 1 ? I E&P Interoctive ConJerence zooz ,/ "Digitol Deliueronce"/ Finberg-Genw, the Digital Futurist Consultancy

. In some respects, it was an industry built on growth There is still upside . We are entering a maturing period E&P Interactiue ConJereru:e zooz / "Digitol Deliuercnce"/ Finberg-Genh'y, the DigitaL Futurist Consultancy lnternet penetration 240 '100% aT 200.5 90% f,I 187.5 200 80% 173.1 157.6 71% 70% 160 60% 120 50% 80 40 0 2000 2001 2002 2003 2004 2005 2006 l---l Online Users - a ' Percentaqe of U.S, Source: Jupiter lntemet Population Model, 10/01 (uS only) E&P Interactive Conference zooz / "Digitol Deliuerance"/ Finberg-Genby, the Digital Fuhrrist Conxiltancg

Fr--^-^ll---^- Broadband goes mainstream After years of hype, fast access is becoming mainstream and available E&P lf,teraetiue Conference 2oo2 / "Digital Deliuerance"/ Finbery-Gentry, the Digitql Fun!fist Consultancg dband growth and service type Satellite/ fixed wireless: Satellite/ fixed wireless: r.: 5.2 miliion ]fffiffiX:9.9 million subscribers subscribersf subscribers i Subscriber number$ for 1999 and 2000 are actual end-of-year figures; subscribor numbers for 2001 are eslimates. Source: Jupiter lnternet Aecess Model, 8/01 (US only) E&P Interacti,e Conference zooz / "Digitol Deliueronce"/ Finberg-Gentr!, the Digital Futurist Consultancy

Broadband - not just for geeks anymore E 100% F o) I Bo% al, o .g 60% E' ) t 40% o cD o E 20% o e o L0% lntermediates "Supervets" ffi Dial-up SB Broadband Source: Jupiter/NPD lndividual User Suryey (5/01), n = 2,361 (dial-up users, US only); n = 562 (broadband usere, US only) E&P Intqoclive Conferen@ 2oo2 / "Digital Deliverance"/ Finbery-Genw , the Digital Futurist ConsultancA Why care about broadband? "It's not a device..." . True, but it actually affects newspaper publishers E&P Interqctiue ConJerence 2oo2 / "Digital Deliuerance"/ Finbery-Gentry, the Digital Fututist ConsultancA

Broadband changes the rules The top customer activities online E.mil Research products, seryices Search engihe Local events, restaurants, mps... Contests or sweepstakes Access daily nEre sites Directorysite, addresses or phone DoMloaded free software Electronic greeting/post cards Health or redicins sites Onllne version of a nerepaper g% E&P Intqactiue Conference zooz / "Digitol Deliuerance"/ Finberg-Gentry, the Digital Futurist Consultancy Question #1 Whqt are Aou doing to preparefor broadband E&p Interactiue Conference zooz / "Digital Deliuerance"/ Finberg-Gentry, the Digital Futurist Consultancg

Information devices It is not about the computer . Access is the key . Any place, any time /Multiple devices E&P Intet\ctive ConJerence zooz / "Digital Deliueronce"/ Finberg-Genh'y, the Digital Futurist Consultancy lnformation devices Issues . What happens when a Palm does everything a computer does? r'What do you call it? . What is the difference between a book and an e-book? E&P Interoctiue ConJerence 2oo2 / "Digitol Deliuerunce"/ Finberg-GenffV, the Digital Futurist Coreultoncv

lnfo devices: Palm Pilot i705 One of the devices that started it ... . Not a computer ... E&P Intersctiue Conference 2oo2 / "Digital Deliuerance"/ Finberg-Gentra, the Digitol Futurist Consultancy lnfo devices Location-aware computing Tro+*linq? t-h*ck r.,'ut h{apIuert Tror,*l Ixols n0rlE T* It{tDH lil*E{TttlHs Frum: I 5torkton 5trPet b'ln l-f 'lnEl5lD. (ll To: 5.lErir E,:yfront plozu 5':nto ilnro, 'iH Ilirrrtians E&P Interqctlte ConJerence 2oo2 / "Digital Delluerance"/ Finberg-Gentry, the Digital Futurist Consultancy

lnfo devices: "Smart phone" E&P Interactiue Conference 2oo2 / "Digital DeLiuerance"/ l'inberg-Genh'U, the Digitat F'uturist Consultancy lnformation devices Devices are merging functionality . The universal remote challenge /Canyou be all things to all digital devices? E&P Interactive Conference zooz / "Digital Deliverance"/ Finberg-Genh'y, the Digital Fututist Consultancy

lnfo appliance: K The camera the plays music . True multi-purpose devices r'Targeted market /Aimed at a different generatio E&P InteractiDe Conference zooz / "Digitol Deliuerance"/ Finberg-Gentry, the Digitol Futurist Consultoncg Question #2 How well do you knou Aour ? . Hotu "wired" is your marketplace? lHow are Aoumaking use of your resources? E&P Intersctiue Conference zooz / "I)igital Deliuerance"/ Finberg-Gentry, the Digital Futurist Consultancy

Reading devices: The Tablet Delivery of text and images /Not just for books -Magazines -Newsletters -Newspapers E&P Interactive Conference 2oo2 / "Digital Deliuerance"/ Finberg-Genb!, the Digital Futurist Consultancy Reading devices The early "Tablet" devices /Softbook /E-Reader /PocketPC E&P Interactiue Conference eooz / Digitol Deliuerance"/ Finberg-GentrA, the Digital Futurist Consultancg

Reading devices Early tests inconclusive . What do consumers want? /Hard to curl up in bed with a 3-pound e-book - But this could be a fixable problem -There are about 25,ooo titles >> Most bookstores have more than loo,ooo titles on their shelues E&P Interactiue Conference zooz / "Digitol Deliuerance"/ Finberg-Gentry, the Digitol Futurist Consultancy Reading "device" hybrid The NewsStand project . Looks like a newspaper . Doesn't feel like a newspaper /File you download on your PC I"PDF format on steroids" -Example: -; l,'-='i., , .' ,.,,'t:. : i E&P Interactive Conference zooz / "Digital Deliuercnce"/ Finberg-Gentry, the Digital Fututist Consultoncy

Reading devices The Tablet PC . Not a laptop, not a PDA r'Longer battery /Pen-based technology /Speech interface r'Mobile -Wireless E&P Intqactiue Conference zooz / "Digitql Delivercn@"/ Finbery-Gentry, the Digitql Futurist Consultoncy Reading devices Here's their vision about the future of paper E&P Interactiue ConJerence zooz / "Digital Deliuerunce"/ Finbery-Genhy, the Digital Futurist Consultancy