siia: empirical media ceo jack griffin: 4 top media trends in 2014

GREY AREASSILVER LININGSWHITE SPACESAN EMPIRICAL APPROACH FOR MANAGING DISRUPTION

IIS 2014January 29 - 30, 2014JACK GRIFFIN, CEO

em·pir·i·calOriginating in, or based on, systematic observation, fact, or application of the scientific method

2

an empirical approachA continuous process of understandingwhat is out in the open and constantly looking for what is hidden from view

3

A new medium is never an addition to an old one, nor does it leave the old

one in peace. It never ceases to oppress the older media until it finds new shapes and positions for them.

– Marshall McLuhan, 1964

4

“ ”

Two Kinds of Disruptors

5

ones we CAN see

ones we MIGHT NOT see

The Change We Could See

MAGAZINES:

6

The Change We Might Have Missed

7

MAGAZINES:

In a single decade, a new magazine industry

8

In a single decade, a new magazine industry

9

The Change We Could See

MUSIC:

10

220 MILLION SOLD: 1979 - 2010 (3 DECADES)

The Change We Might Have Missed

11

MUSIC:

25 BILLION SONGS DOWNLOADED FROM ITUNES: 2001 - 2013 (1+ DECADE) 3.5 SONGS FOR EVERY PERSON ON EARTH!

Ongoing disruption and transformation in music

12

NEWSPAPERS:

13

The Change WeCould See

14

NEWSPAPERS:

The Change We Might Have Missed

15

NEWSPAPERS:

From high to low in ten years

The Change WeAre Seeing

16

TELEVISION:

The Change WeMight Be Missing

17

TELEVISION:

18

TELEVISION:

Net!ix is almost as popular as cable among young adults

What Has Happened?

§Disconnection of media/entertainment products from physical devices

§Unbundling of content sections from one another

§ From producer in control to customer in control

§ From opt-out to opt-in

19

The Opt-in World

§ 50% of Americans now own a Tablet or E-Reader

§ 56% own a SmartPhone

Source: Pew Research, 2013 and 2014

20

Opt-in World for Content

21

An app for everything

Opt-in World for Advertising

22

Google adds optionality, December 2013 to charge only for clicked on ads

The Four Leaders of the Opt-in World

23Source: CoRise, October 2011

SOCIAL

COMMERCE ENTERTAINMENT

SEARCH

The Only Constant is Change

24

DEMAND-BASED

PRICING

“The Now Accelerators”

MOBILITY& TOUCH

DATA &ANALYTICS

NEW CONTENT SOURCES

25

A Framework for Managing Disruption

26

GREYAREAS

SILVERLININGS

WHITESPACES

A continuous process of understandingwhat is out in the open

and constantly looking for whatis hidden from view

an empirical approach

A Framework for Managing Disruption

27

“Understanding& Inquiring”

“Optimizing& Executing”

“Imagining& Extending”

GREYAREAS

SILVERLININGS

WHITESPACES

an empirical approach

GREYAREAS

GREY AREAS - “Understanding & Inquiring”

Some Empirical Questions

§What has the customer hired us to do?

§What are the real economics?

§Who is the real competition?

§What drives what?

28

FORBES: Understanding Grey Areas

29

SILVERLININGS

Some Empirical Questions

§What is (or could be) valuable?

§What is unique?

§What is working and what is not?

§What do the data tell us?

§What are the patterns?

§What do we need to stop doing?

SILVER LININGS - “Optimizing & Executing”

30

New York Times Press Release, October 2013

THE NEW YORK TIMES: Executing Silver Linings

Website Redesign January 2014

Mobile Redesign Midyear 2013 727KDigital

Subscriptions

+28%Q3 2013

31

WHITESPACES

WHITE SPACES - “Imagining & Extending”

32

Some Empirical Questions

§What do we have permission to do?

§What kind of culture do we need?

§What capabilities will we need to add?

§What do we build? What do we acquire?

MEREDITH: Extending into White Spaces

33

Conquering White Spaces the Net!ix Way

34

Source: Reed Hastings, Working at Net"ix; Aug 01, 2009

According to Reed Hastings

§A highly-successful process-driven company

- With leading share in its market

- Minimal thinking required

- Few mistakes made – very e#cient

- Few curious innovator-mavericks remain

- Very optimized processes for its existing market

35

§Market shifts due to new technology or new competitors or new business models

§Company is unable to adapt quickly, because the employees are extremely good at following the existing processes, and process adherence is the value system

§Company generally grinds painfully into irrelevance, due to inability to respond to the market shift

Then the Market Shifts…

36Source: Reed Hastings, Working at Net"ix; Aug 01, 2009

The best managers !gure out how to get great outcomes

by setting the appropriate context,

rather than by trying to control their people.

37Source: Reed Hastings, Working at Net"ix; Aug 01, 2009

§Strategy§Metrics§Assumptions§Objectives§Clearly-de$ned roles§Knowledge of the stakes§ Transparency around

decision-making

Context, not Control

38

Provide the insight and understanding to enable sound decisions

CONTEXT CONTROL

§ Top-down decision-making§Management approval§Committees§Planning and process valued

more than results

Source: Reed Hastings, Working at Net"ix; Aug 01, 2009

With the Right People,

Instead of a Culture of Process Adherence,

Culture of Freedom and Responsibility,

Innovation and Self-Discipline

39Source: Reed Hastings, Working at Net"ix; Aug 01, 2009

GREYAREAS

SILVERLININGS

WHITESPACES

40

What Will Je" Bezos Do?

Ever tried. Ever failed.No matter. Try again.Fail again. Fail better.

– Samuel Beckett “41

”GREYAREAS

We shall not cease from explorationAnd the end of all our exploring

Will be to arrive where we startedAnd know the place for the first time.

– T. S. Eliot, Four Quartets

42

“ ”WHITESPACES