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How Sanoma boosts revenues from digital?

September 28, 2012 by  

Masa Peura (picture by Brie Logsdon)

Masa Peura, Strategic Director, Sanoma News & Sanoma Media, Finland was the last gueast speaker of the INMA 2012 European conference in Hague, Netherlands. Hegave practical examples of boosting digital revenues through new business models.

Helsingin Sanomat was a pioneer in charging for digital content through its bundled subscription model. In addition to HS bundled success, other innovative development projects were presented. Sanoma is the biggest media player in the Finnish market with 30% market share (6 sites in top 20). Sanoma news generates 436 million Euro, Online – 62 million Euro, Sanoma Media Finland – 308 million Euro.

Sanoma’s Reach:

  • 88% of all the Finns
  • 95% in the capital region
  • 1,8 million print reach (Finland is a country of 5,5 million)

Helsingin Sanomat faces same problems as other newspapers – the digital transformation. Media companies are searching for new revenue sources to make transformation smooth, and so is Sanoma. They integrate as much as they can. Not only editorial operations but other departments as well. They have an editorial superdesk, from where every type of content can be developed be it paid, free, print publication, app or online.

Sanoma’s offer works on four different fields:

  1. Helsingin Sanomat combo. It is not just the print in web, but a real multichannel offering. Paper + digital subscription + tablet + archives. 30% of total customers are combo subscribers. Cumulative digital consumer revenues since 2005 is more than 10 million Euro for Sanoma. The number of combo subscribers grew from 10.000 in 2005 to 136.000 in 2011. It’s a third of Sanoma’s total subscription base
  2. HS + tablet bundle. It’s a viable business model for newspapers in digital channels. Interesting that the webpage Hs.fi generates 10,5 pageviews per user per week, while in case of digital newspaper this factor is 11,8, and for tablet it’s 126,4 PV’s per user per week.
  3. Ilta-Sanomat subscription
  4. Lean back media

So what’s next for Sanoma? Still a lot of effort to be put into printed product they just announced a tabloid version of their 100 years old broadsheet. Following the New York Times with a metered model. They are also building a tv studio in the editorial office.

Masa Peura ended the presentation showing the advertisement of Helsingin Sanomat:

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