Print is still the best business model
October 23, 2009 by marek.miller
De Persgroep's portfolio
It is the best time ever to invest in newspapers and the best time to look back on hypes that never materialized, a fresh look at the business models of newspapers, mobile, internet, free newspaper, etc. but especially a story about the passion for the most beautiful medium on earth. De Persgroep made the largest newspaper investment in Europe in 2009 by buying PCM Uitgevers, editor of AD, NRC, Volkskrant en Trouw. Xavier Verellen, the Chief Commercial Officer of De Persgroep (Belgium) spoke about it on the second day of the INMA Outlook 2010 conference in Liverpool.
Xavier Verellen showed the attendees the love that Persgroep has for printed newspapers. As he said, all great ideas he takes from INMA conferences, such as marketing campaigns, internet strategies (they look at best examples and implement the best ideas), books and dvd collections. All of those have made Persgroep very successful in Belgium. They publish 3.7 million paid newspapers per day. There is no tv programme in Belgium that reaches even 1.7 million viewers per day.
Here are all the hypes Xavier Verellen recognizes as most important to the newsmedia market and how Pergroep deals with them:
- Free newspapers. Nobody talks about it anymore, suddenly it’s no more a threat. Persgroep does not follow that concept. 275 million dollars cumulated loss of Metro in 2000-2009 makes Persgroep treat the idea of free newspapers as the mistake in the industry.
- Format changes: broadcast, belgian, berliner, tabloid, compact, micro. Basic idea is for Persgroep fully acceptable, but the execution in different parts of the world was not right. Persgroep followed the trend of format change.
- Internet. Persgroep goes the same internet path, but it believes web has not the same power, not the same involvement as print does. Paper attracts readers for 45 minutes daily, in web, readers only scan the information. Persgroep looks closely at the internet and believes it is important to invest in that.
- Integrated newsroom. Pergroep has a main goal: they want to grow on the internet, but they don’t want to lose a single paper copy. Despite starting online operations in 2003, Persgroep has separated newsrooms, with different people working there – crossing only in marketing. This way print journalists remain creative towards every print edition of the newspaper.
- Newspaper as a magazine. Absolutely not supported by Persgroep. They want to make every day there’s a pleasure to read newspapers. Everyday, the newspaper brings news. They shouldn’t become “daily magazines”.
- Mobile. The jury is still out. Of course people will use mobiles, but it’s going to be a huge work involved to build the right business model. Profits are needed to be seen for Persgroep to invest in this market.
- Cross media selling. Those are two different worlds according to Persgroep. They differ in terms and in usage. Persgroep wants to diverse, and focus on each platform singlehandedly.
Xavier Verellen concluded, that print is stillthe best business model in the world, and it will never be equalled to by internet or mobile business models.
Tagged: INMA, newspapers, Outlook 2010, print
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