6. jorgen madsen extending the media house
Post on 22-Oct-2014
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CH
AP
TE
R N
AM
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1.
Born 1966
Joined MTG in 1994
What I love: High ratings / challenging the
status quo
What I hate: Losing market share / wasted
talent
Quote: “Ready on the Day.”
Jørgen
Madsen
EVP of Nordic
Broadcasting
3
Established footprint
TV Households (2011): 2,137,000
Viewing time/day (2011): 166 min
TV Ad Market Size (2011): SEK 3.8 billion
Free-TV Norway
TV Households (2011): 2,502,000
Viewing time/day (2011): 198
TV Ad Market Size (2011): SEK 3.0 billion
Free-TV Denmark
TV Households (2011): 4,731,440
Viewing time/day (2011): 162
TV Ad Market Size (2011): SEK 5.7 billion
Free-TV Sweden
4
Best in class growth & margin
21.90%
21.20%
25.90%
24.50%
20%
22%
24%
26%
28%
30%
3,000,000
3,200,000
3,400,000
3,600,000
3,800,000
4,000,000
4,200,000
4,400,000
4,600,000
2008 2009 2010 2011
’000 SEK
Margin Tot Revenue
5
Revenue breakdown
20%
35%
45%
90
100
110
120
130
140
150
160
170
180
190
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
6
Stable macro backdrop
GDP Growth (indexed)
*
* Europe 27 incl. Russia
7
But massive change in TV
landscape
Sweden – 1 Feb 2008
Denmark – 1 Nov 2009
Norway – 1 Dec 2009
Scandinavian TV landscape
(2011)
Cable 52% Satellite
19%
DTT 19%
IPTV 9%
Cable 55%
Satellite 19%
DTT 7%
Analogue Terrestrial
20%
Scandinavian TV landscape
(2005)
8
Which has contributed to
fragmentation
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
SWEDEN DENMARK NORWAY
Competing for 162
viewing minutes per day
Competing for 198
viewing minutes per day
Competing for 166
viewing minutes per day
130
140
150
160
170
180
190
200
9
But also increased overall TV
viewing
Average Viewing Time per Day (minutes)
2007 2011
+ 5 minutes
+ 50 minutes
+ 21 minutes
10
But there is still some way to go
Average Viewing Time per Day (minutes)
100
120
140
160
180
200
220
240
260
280
300
11
The explosion in online viewing
is creating additional reach
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
ComputerScreen
Mobile Phone TV-screen Tablet
92%
83%
1%
1%
16%
7%
Viewing platform in Sweden
Traditional TV Web-TV Mobile-TV
Viewing by Device in Sweden
Age 15-74
Age 15-24
+16%
+77%
+54%
+278%
Q1 2011 Q1 2012
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
12
And the camp fire is still burning
People watching TV in Sweden (thousands, 2011) TRPs Generated
in Sweden (2011)
68%
32%
Prime Time Daytime
60
70
80
90
100
110
120
2008 2009 2010 201175%
80%
85%
90%
95%
100%
2008 2009 2010 2011
13
And the demand is clearly still
there
Market Sold Out Ratios in prime time Market cost per thousand (indexed)
80
90
100
110
120
130
140
150
160
2004 2005 2006 2007 2008 2009 2010 2011
14
And driving overall TV ad market
growth
15
And TV’s share of the advertising
pie
2011
2008
Sweden Denmark Norway
20.0%
22.1%
17.2%
19.2%
19.5%
20.9%
16
But there remains some way to
go
22.1% 19.2% 20.9%
40.2% 30.1% 31.7%
Sweden Denmark Norway
US UK Europe
Top 5 Clients
1. FMCG
2. FMCG
3. FMCG
4. Leisure
5. Telco
17
With a diverse & stable client
base
Annual Commitments International Clients
Sweden Denmark Norway
1. Mobile operators
2. Retail
3. Food
4. Beverages
5. Pharmaceuticals
Top 5 Clients
1. Telco
2. FMCG
3. FMCG
4. Telco
5. FMCG
Top 5 Clients
1. FMCG
2. FMCG
3. FMCG
4. Leisure
5. Telco
30%
70% 75%
25% Annual
Ad Hoc
International
Domestic
Media Agency
Direct Buy
Media Agency
Direct Buy
Media Agency
Direct Buy 93% 93% 90%
Top 5 Segments
18
That we are working with in
new ways
Client Segmentation
Win/Lose Win/Win
Lose/Lose Lose/Win
Advertiser
ROI
High
High Low
Broadcaster ROI
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
19
And Seize The Online
Opportunity
Launched: 2009 2009 2009 2010 2010 2012
Number of Started Streams
Week 1-20 2011 Week 1-20 2012
80,000
90,000
100,000
110,000
120,000
130,000
140,0001.
2.
3. 4. 5.
Sweden Denmark Norway
Top 5 shows by web audience* 2012
* MMS
Web audience: Publ. date + 7 days
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
20
By offering web exclusive shows
Started streams per episode by web audience*
* MMS
Web audience: Publ. date + 7 days
21
And providing tailor-made
solutions
Branded player Editorial integration
+
Campaign click rate: 6% Average click rate: 2%
Editorial integration sold per second
• Customer sales up 70%
• And now a recurring customer with TV3Play Sweden
0
50
100
150
200
250
2010 2011 2012
22
With growing online sales
Online ad sales growth (index)
Print, 63% Direct advertising,
14%
Internet, 14%
Radio, 4% TV, 5%
23
And also creating competition
in existing market segments
TV4, 87% MTG, 7%
Other, 6%
Regional share of total advertising
(NOK / DKK / SEK billion)
50% 40% 60%
0
5
10
15
Total regional advertising
Regional TV advertising
SEK 14 bn
SEK 700 mn
• Number of regional TV3 Sweden broadcast zones
increased from 6 to 19 on February 27th 2012
• Bundled TV, Radio & Internet Ad sales package with
dedicated sales force of 120 people as of March 2012
• Local Ad prices as much as 2.13x national prices
And offering a unique reach
24
25
And developing non-advertising
revenue streams
Carriage deals
20%
Advertising Mini-pay
Revenue mix (2011)
0
10
20
30
40
50
60
70
2004 2005 2006 2007 2008 2009 2010 2011
26
But, ultimately, it is all about
ratings
CSOV 15-49 Perceived penetration (not actual)
2008 2011
86% 88%
2008 2011
86% 88%
2008 2011
39%
66%
2008 2011
0% 47%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Bonnier MTG SBS
27
And the media house is growing
Average Weekly Reach
2003 2011
Old & Male Old & Female
Young & Male Young & Female
Channel Profiles
28
What we’re doing in Sweden
• Recruited better people & brought in external experts
• Extended planning horizon
• Improved overall scouting, commissioning & scheduling
• Enhanced piloting & feedback
• Focused schedules on local & live entertainment programming
• Broadened & deepened schedules with proven local & international formats
• Reduced risk profile by focusing away from “big bet” new OPs
0
10
20
30
40
50
60
70
2004 2005 2006 2007 2008 2009 2010 2011
29
But, ultimately, it is all about
ratings
CSOV 15-49 Perceived penetration (not actual)
2008 2011
65% 66%
2008 2011
63% 60%
2008 2011
0%
45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
TV2Gruppen
MTG SBS
30
And the media house is growing
Average Weekly Reach
2003 2011
Old & Male Old & Female
Young & Male Young & Female
Channel Profiles
31
What we’re doing in Denmark
• More of the same
• Not about challenging TV2 but maintaining distance from SBS
• Extended planning horizon
• Improved overall scouting, commissioning & scheduling
• Enhanced piloting & feedback
• Focused schedules on local & live entertainment programming
• Broadened & deepened schedules with proven local & international formats
0
10
20
30
40
50
60
70
2004 2005 2006 2007 2008 2009 2010 2011
32
But, ultimately, it is all about
ratings
CSOV 15-49 Perceived penetration (not actual)
2008 2011
85%
92%
2008 2011
62% 75%
33
And the media house is growing
Average Weekly Reach
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
TV2Gruppen
MTG SBS
2003 2011
Old & Male Old & Female
Young & Male Young & Female
Channel Profiles
34
What we’re doing in Norway
• Made management changes
• Extended planning horizon
• Improved overall scouting, commissioning & scheduling
• Enhanced piloting & feedback
• Focused schedules on local & live entertainment programming
• Broadened & deepened schedules with proven local & international formats
• Reduced risk profile by focusing away from “big bet” new OPs
• Continue to seek opportunity to expand differentiated channel offering
35
SH
OW
RE
EL
80
90
100
110
120
130
140
150
2008 2009 2010 2011 2012 2013 2014 2015
80
90
100
110
120
130
140
150
2008 2009 2010 2011 2012 2013 2014 2015
80
90
100
110
120
130
140
150
2008 2009 2010 2011 2012 2013 2014 2015
36D
Summary
GDP Growth Total Ad Market Growth TV Ad Market Growth
• GDP growth + Total ad market growth +
TV ad market growth
• + audience share gains
• + channel launches
• +penetration gains
• + AVOD
• + mini-pay
• = long term sustained market
outperformance
37
CH
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