HISTORY OF NEWSPAPER STRATEGY
• 1996 Clustering
• 1998 Increasing classified font size
• 1999 Doubling the recruitment rate
• 2001 Cutting expenses
• 2003 Allocating revenue & OP to “digital”
• 2007 Developing a separate online team
• 2008 Selling third party brands
• 2009 Reducing headcount in all areas
• 2010 Reducing web width (size of
newspaper)
• 2011 Consolidating functions
• 2012 Pricing Subscriptions
discriminately
• 2013 Separating print and broadcast
(publics)
• 2014 Charging subscribers for “special”
editions
2
SUMMARY OF “STRATEGIES”
• REACTING
• RETRENCHING
• REPURPOSING
• DRAMATICALLY INCREASING PRICES
• AGGRESSIVELY CUTTING EXPENSES
• USING EXISTING STAFF AND
CONCEPTS TO DEVELOP NEW
BUSINESS
• DESPERATION PHASE
3
NEWSPAPER CHALLENGES
4
August 11, 2016“Macy’s will close ANOTHER 100
stores”
2006 2015 Change
Advertising 5,370 1,611 (70%)
Circulation 1,307 1,060 (19%)
Other 502 213 (57%)
Revenue 7,179 2,885 (60%)
Operating Profit 1,627 169 (90%)
Margin 23% 6%
Gannett Newspapers Comparison (In Millions)
THE “HIGHLY VISIBLE” FIXERS
RIP
• JOHN PAYTON RIP
• SAM ZELL RIP
• AARON KUSHNER RIP
NEWBIES
• SHELDON ADELSON
• JEFF BEZOS
• MICHAEL FERRO
6
THE “HIGHLY VISIBLE” INVESTOR
2012 LETTER TO SHAREHOLDERS
• ACQUIRED 28 DAILIES FOR $344
MILLION
• “NEWSPAPERS CONTINUE TO REIGN
SUPREME”
• “PAPERS…WILL REMAIN VIABLE FOR A
LONG TIME”
2016 USA TODAY
7
TODAY’S NEWSPAPER STRATEGY
• DEVELOP A HIP NAME FOR THE DIGITAL BUSINESS
• ACQUIRE OTHER (DECLINING) NEWSPAPERS
• TRIPLE PLAY
• CUT THE NEWSROOM
• CUT THE NEWSHOLE
• INCREASE SUBSCRIPTION PRICING (DRAMATICALLY)
• GRAND SLAM (ADD ONE MORE…)
• REDUCE ALL SERVICES
8
STRATEGY IMPACTED OUTCOME
9
GCI UMG
Advertising (70%) (69%)
Circulation (19%) (18%)
Other (57%) 1207%
Revenue (60%) (38%)
Operating Profit (90%) (66%)
Margin (74%) (46%)
Declines 2006 to 2015
Gannett vs Utah Media Group
**GCI per annual reports for the newspaper segment, only.
UTAH MEDIA GROUP STRATEGY
• VISION
“EVERY MIND, EVERY TIME”
• MISSIONS
1. CONNECT WITH THE AUDIENCE VIA THE MOST EFFECTIVE
CHANNELS
2. DEVELOP NEW BUSINESSES
3. IMPROVE SALES EFFECTIVENESS
4. CONTINUOUSLY IMPROVE ALL OPERATIONS
10
UTAH MEDIA GROUP BUSINESS MIX
11
22%
16%
23%
40%
15%
**Magazines, Agency and Events compete outside the newspaper market.
PATH TO SUCCESS - EVENTS
12
• 1st idea – partner with Governor on an economic summit
• Reallocate budget to support a dedicated events team independent from the newspaper business
PATH TO SUCCESS - EVENTS
• RESULTS OF INITIAL “PARTNER” EVENT
• LAUNCH OF EVENT PRODUCTION BUSINESS
• WE PRODUCE MORE THAN 30 EVENTS, ANNUALLY
• LAUNCH OF EVENT SERVICES BUSINESS
• REGISTRATION SERVICES
• VENDOR/FLOOR MANAGEMENT SERVICES
• EVENT SALES MANAGEMENT SERVICES
• TICKETING SERVICES
13
PATH TO SUCCESS - TICKETING
CONSUMER EVENT TIED TO GAMING AND COMIC CONVENTIONS
• 2010 GEEX – GAMING AND ELECTRONICS EXPO
• THREE YEAR RUN PROFITABLE ON LAST TWO EVENTS
• VENDOR IDEA TO GO BIGGER
• TRANSITIONED INTO SUPPORT ROLE
• FREED US UP TO FOCUS ON KEY SERVICES
• PROFITS SOARED
14
PATH TO SUCCESS - TICKETING
15
• Two years in business.• 692 events ticketed• $34 million processed• Largest event $193K
• International ticketing business• Event fulfillment
services• Event security
services
UTAH MEDIA GROUP STRUCTURE
16
General Mgr General Mgr General Mgr General Mgr SVP SVP SVP SVP VP Broker
Consumer Consumer Business Ticketing Agency CFO Newspaper Newspaper Newspaper Real Estate
Magazines Events Events & Magazines Operations Sales Digital Sales
New Business
PATH TO SUCCESS
17
Agency
(R&D)
Launch New Businesses
Launch New Services
Shoot Bullets
Test Fulfillment
SUMMARY
• STRATEGY – One that changes the outcome in the long-term (game-changing)
• STRUCTURE – One that supports progressive independent businesses outside of the
newspaper
and supports ongoing development and growth of new businesses
• PEOPLE – Must find and retain talented people with a modern skill set and ability to multitask
NO newspaper people driving the new businesses
Must compensate business unit leaders well when successful—objective & tied to
results
• PERFORMANCE – Measure and report and adjust variables noted above, to meet vision
18
• Must have the right leadership/ownership in order to get
the right STRATEGY and STRUCTURE
• Must have the right PEOPLE to properly execute and get
results/PERFORMANCE
SUMMARY (MORE SUMMARIZED)
19
A THOUGHT
“GREATNESS IS NOT WHERE WE STAND, RATHER IN THE
DIRECTION WE ARE MOVING.
WE MUST SAIL, SOMETIMES WITH THE WIND AND
SOMETIMES AGAINST IT.
BUT SAIL WE MUST AND NOT DRIFT NOR LIE AT ANCHOR.”
*Oliver Wendell Holmes 20
ONE MORE THOUGHT
“FAR BETTER IT IS TO DARE MIGHTY THINGS, TO WIN
GLORIOUS TRIUMPHS, EVEN THOUGH CHECKERED WITH
FAILURE
THAN TO TAKE RANK WITH THOSE POOR SPIRITS WHO
NEITHER ENJOY MUCH NOR SUFFER MUCH
BECAUSE THEY LIVE IN THE GRAY TWILIGHT THAT KNOWS
NO VICTORY NOR DEFEAT.”* Theodore Roosevelt21
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