APN's NZME sees future in paywalls, growth in share of digital sales

Wednesday 20th May 2015

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an "integrated sales proposition" is helping it win market share, including 20 percent of the nation's online revenue market.

The media company's strategy to transform its businesses is laid out in an investor day presentation that reiterates what it told shareholders at their annual meeting this month: APN's year to date sales are 6 percent ahead of the year earlier including the contribution from Perth's 96FM, earnings before interest, tax depreciation and amortisation are ahead and net profit is broadly in the same as this time in 2014.

NZME's strategy is to think about content across all platforms as being either news, sport and entertainment. Paywalls would help convert its audience into registered users, who would be offered member benefits in exchange for their data, the presentation says. Monetising the audience would include memberships, subscriptions, pay per view and personalised content.

The company said revenue from NZME, which includes the NZ Herald, a suite of other newspapers, radio stations including Newstalk ZB, and consumer sites such as the Grabone daily deal site, is tracking 2 percent ahead of the same time in 2014 on a like for like and constant currency basis that excludes $3 million of magazine revenue excluded from last year.

NZME's digital revenue is up more than 50 percent year to date, and online revenue market share has risen to 20 percent from 16 percent, it said. The company expects to have co-located its three NZME businesses by February 2016 "which will enable the full benefits of integration to be realised," it said.

“NZME is increasing market share by transitioning from selling products to selling its expanded audiences via an integrated sales proposition," APN chief executive Michael Miller said in a statement. "The low cross‐over of customers in the three businesses is providing revenue growth opportunities.”

Separately, APN's Adshel unit, which isn't part of NZME, said will begin digitising 35 of its billboard locations in Auckland as part of a of a broader plan to install 150 digital panels in Auckland, Wellington and Christchurch in the next 12 months.

APN's shares fell 1.7 percent to 89.5 Australian cents on the ASX and have gained 31 percent in the past 12 months.

BusinessDesk.co.nz

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