in Norway and Europe - Verband Schweizer Medien

Zeitungsland Norwegen Markets and poli/cs – in Norway and Europe Schweizer Medienkongress Lausanne, 21.09.12 Ivar Rusdal 1 This morning’s journey: • 
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Norway: Market and trends Norway: New products – and experiments Megatrends The other arena: PoliHcs! –  in Norway –  in the EU •  Do I have a conclusion? 2 Norway in numbers 5 027 000:
Population as of August 2012
12,9:
Population per square km. The second
least densely populated country in
Europe.
€ 65 000:
GDP per capita (EU average € 32 000)
Norway is a small, open society with a scaNered populaHon and high net disposable income per household Sources: StaHsHcs Norway, CIA World Factbook 3 Norway in newspapers 4 A country of a hundred markets -­‐ •  Geography •  Literacy •  PoliHcal history: abrupt poliHcal awakening, 1814-­‐1905 •  Strong naHonal idenHty – even stronger local idenHHes! •  -­‐-­‐ but what is local in a global world? 5 -­‐ and we have been extremely lucky: Private consumpBon (% change q/q) Unemployment rate (%) EU
Norway
Norway
EU
Q4
2008
Q2
2011
Oct
2010
Government debt (% of GDP) July
2011
Public balance (% of GDP) EU
Norway
Norway
EU
2001
Source: Eurostat 2010
Q4
2008
2010
6 We sBll read newspapers – as you do: Number of distributed newspapers per 1000 inhabitants in Europe
Norway Finland Sweden Switzerland Austria UK Germany Denmark Netherlands Ireland Greece Czech Rep. Iceland Belgium France Poland Latvia Italy Spain 7 Note: WAN – World Press Trends, 2008
But habits are changing:
(Daily reach newspapers 1960 – 2011) Source: Forbruker & Media fra 1994. Flerkanalsamfunnet (Lundby & Futsæter, 1993)
Fragmentering av medielandskapet og oppsplitting av publikum (Futsæter 1998).
8 8
Internet is here to stay Daily average % of populaHon who use different media sources TV
Internet
Newspapers
Radio
Mobile
Source: TNS Gallup 9 -­‐ and mobile is taking over Percentage of populaHon who use mobile media content every week or day 2005-­‐2011 Weekly
Daily
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011
Source: TNS Gallup 10 Is all hope lost – even in Norway? •  Remember Marconi -­‐-­‐-­‐ •  Some things are new: –  No prinHng privileges (low barriers) –  We have successfully educated our readers: «News is free»! •  But the readers are sHll out there – more than ever, 24/7! •  New business models are being developed – -­‐ and Norwegian newspapers started early. 11 Print-­‐based media houses are ahead in the digital market Norway
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facebook.com google.no google.com youtube.com vg.no finn.no wikipedia.org Dagbladet.no Windows Live Nrk.no yahoo.com Agenposten Blogger.com TwiNer TV2 DnB Nor Yr.no ABC startsiden.no Gule Sider.no MSN United Kingdom
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google.co.uk facebook.com google.com youtube.com bbc.co.uk ebay.co.uk yahoo.com wikipedia.org Windows Live Amazon.co.uk twiNer.com LinkedIn Blogger.com PayPal The Daily Mail T.co The Guardian msn.com Wordpress.com Apple Inc. google.com facebook.com youtube.com yahoo.com Amazon.com wikipedia.org twiNer.com ebay.com Blogger.com Craigslist.org LinkedIn Windows Live.com myspace.com go.com Bing.com Espn.co.com cnn.com aol.com PayPal Wordpres.com 12 Source: www.alexa.com, September 2011
New business models: Making people pay •  New products (services) •  Unique content: –  Local –  Special interest –  ConHnuous •  Consequence: Structural changes (Amedia) Let us look at some examples: 13 Amedia – the new player •  48 majority owned newspapers –  Internet ediHons •  PrinHng & distribuHon •  Joint ad sale company •  Turnover NOK 3,4 billion •  3.000 employees
•  30 majority owned newspapers –  Internet ediHons •  PrinHng & distribuHon •  Joint ad sale company •  Turnover NOK 2 billion •  1.350 employees Ager the merger: 71 newspapers (majority and minority owned), circulaHon apprx 650.000 (24,5 % of total naHonal circ.) – employees: ?? 14 New Product: VG+ First class innovaHon Hordaland: Best local newspaper in Europe VG+: Best iPad version in the world Hordaland – Europas beste lokalavis
VG+ - verdens beste
iPad utgave
Virkemidlene
har virket - på verdenstoppen i avislesing.
Geqng paid Media megatrends 2012 More readers than ever -­‐ everywhere Offer them something unique Make them pay Do not forget your core business: Editorial integrity (credibility, realiability, independence ... ) •  Do not lose faith in your basic product: Paper is sHll the real portable format – •  And remember the other arena: PoliHcs! • 
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24 Public press policies •  ConsHtuHon, Art 100: Free speech – and a public responsibility to provide arenas for free speech •  Media ownership law •  Direct support («ProducHon Grant»): 281M (= 46 MCHF) •  Zero VAT (paper circulaHon) – value apprx 1,6 GNOK (= 262 MCHF) All paper-­‐based – which limits regulaHons to only a part of the market – and is an obstacle to new developments 25 1970 -­‐ paper only The poliHcal reasoning behind the zero VAT: •  To preserve and develop the relaHvely small Norwegian language community, •  Not to hamper the freedom of the opinion formaHon process, •  That “culture” could be harmed by such a tax on newspapers, •  That newspapers in other European countries with the same democraHc tradiHons and values as Norway, were or would likely be, exempt from VAT. 26 2012 – arguments sBll valid New distribuHon plavorms need support No longer possible to accept «0-­‐25» «0-­‐0» is completely unrealisHc MBL argues for «8-­‐8» -­‐ willing to accept small loss up front to gain in the digital transiHon. •  Magic date: 4 October (2013 Govt budget) •  DefiniHon challenges: Low VAT limited to «edited products» • 
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27 A short step into Europe • 
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ENPA – CH, NO and 22 EU countries One goal: To influence EU policies Small, but competent staff in Brussels We «outsiders» are important: –  Large and rapidly developing media sectors –  CH and NO contribute apprx 10% of ENPA budget •  Strategic issues: Easy to recognise  28 Strategic PrioriBes adopted 25.05.12 •  Freedom of the Press •  Developing Revenues –  AdverBsing regulaBon and Online Behavioural AdverBsing –  Value Added Tax –  Role of Public Service Broadcasters –  Data ProtecBon –  Media Pluralism –  JurisdicBon; Forum shopping –  Data retenBon; ProtecBon of sources •  PromoBng content –  Digital Agenda –  IPR Strategy –  Copyright •  SupporBng Customer RelaBons –  Consumer framework –  Sustainability issues –  Media Literacy 29 EU Media Futures Forum •  EC Vice President Neelie Kroes launched the EU Media Futures Forum in December 2011 as part of the EU Digital Agenda. •  Chair: ChrisHan Van Thillo, CEO of de Persgroep (Belgium/NL). •  Members: 20 people from publishing, broadcasHng, adverHsing, telecoms and social media, including Google, Apple and Facebook. •  Rob De Spa of Wegener Group (NL), a member of ENPA ExecuHve CommiNee, was appointed to the Forum. •  ENPA provided extensive input and legal background to support the work of the group, which issued final report in June 2012. 30 Key points among Forum’s eight proposed soluBons •  As regards digital access barriers and aggregaHon, competent authoriBes to take effecBve acBon when such developments threaten compeBBon and/or innovaBon. •  Offline and online VAT should be aligned at the lower rate to incenHvise creaHon of quality content and promote democraHc role of press in society. •  The role and remit of public service in the digital environment should be clarified to avoid distorBon of compeBBon. •  Some of Forum members said that copyright framework should be updated, while other argued that it is not an impediment. 31 EC High Level Group on Freedom and Pluralism of the Media • Group appointed by VP Neelie Kroes in October 2011, ager outcry over Hungarian media law • Chair: Prof Vaira Vike-­‐Freiberga, former President Latvia • Three other experts from Germany, Portugal and UK Group to analyse and provide recommendaBons on: • LimitaHons to media freedom via poliHcal interference • ConcentraHon of media ownership and its impact • Role and independence of regulatory authoriHes • ExisHng or potenHal measures in favour of quality journalism, ethics and media accountability 32 Self RegulaBon is key •  ENPA provided detailed posiHon paper on media pluralism •  ENPA organised seminar with HLG in Nicosia 24.05.12 •  We emphasise industry self-­‐regulaHon approach (ref e. g. Norwegian declaraHon of Rights and DuHes) •  Stress need to consider dominant role of tech companies and public service broadcasters when assessing pluralism in digital sphere •  PoliBcal context: •  Increasing calls for some form of EU regulaHon of the media, despite lack of EU competence in this field (remains naHonal competence) •  Shadow of Leveson inquiry in UK, where outcome due this Autumn •  Final report of High Level Group due end November 2012 33 RIGHTS AND DUTIES OF THE EDITOR This declaraHon is a joint document agreed upon by The AssociaHon of Norwegian Editors and The Norwegian Media Business AssociaHon: An editor shall always keep in mind the ideal purpose of the media. The editor shall promote the freedom of opinion and in accordance with the best of his/her abiliHes strive for what he/she feels serves society. Through his/her medium the editor shall promote an imparHal and free exchange of informaHon and opinion. The editor shall nurture a type of journalism that makes it clear to the reader what is reporHng and submission of informaHon and facts, and what is the opinions and judgements of the newspaper. An editor is expected to share the fundamental views and aims of his/her publicaHon. But within this framework the editor is enHtled to a free and independent leadership of the editorial departement and editorial work and full freedom to shape the opinions of the paper even if they in single maNers are not shared by the publisher or the board. If the editor finds himself/herself in irreconcilable conflict with the fundamental views of the medium, the editor is obliged to resign. The editor must never allow himself/herself to be influenced to advocate opinions that are not in accordance with the editor’s own convicHon. The editor carries the judicial responsibility for the paper, and has the full and personal responsibility for the contents of the newspaper. The editor directs and is responsible for the acHvity of the members of the editorial department and is the link between them and the publisher/board. The editor may delegate authority in accordance with his/her credenHals. (Signed October 22nd. 1953, revised in 1973 and 2004.) 34 Future of VAT •  ENPA campaigns for a technologically neutral approach to VAT. •  ENPA met with EU TaxaHon Commissioner Semeta November 2011 •  EC CommunicaHon on Future of VAT launched December 2011 •  Among EC principles: similar goods and services should be subject to the same VAT rate and progress in technology should be taken into account. •  May 2012: Council of Finance Ministers favour restricted use of reduced rates to increase VAT efficiency. •  European Commission Impact Assessment due in 2013 35 Achieving poliBcal support •  SupporHve statements from VP Kroes (Digital Agenda), Commissioner Barnier (Internal Market), Commissioner Vassiliou (Culture) •  Commissioner Androulla Vassiliou said: "My personal view is that reduced or zero VAT rates should conHnue to be applied to printed newspapers, and that digital press formats should be granted a similar treatment...I am convinced that extending the reduced or zero-­‐VAT rates to online publicaHons would be economically beneficial to the providers of on-­‐line news.” (Speaking at ENPA General Assembly, 25 May 2012) •  Biggest challenge: changing the exisHng VAT system requires a unanimous vote of 27 EU Finance Ministers at a Hme of austerity. 36 Conclusions -­‐ ? •  Believe in your core product. This proves who you are. •  Believe in the future. It contains endless opportuniHes on uncharted arenas. •  Listen to your customers – and follow them! •  Your experiences are important – they will help you to influence –  your country
–  Europe Thank you, and good luck! 37