Managing Media Companies

Annet Aris, Adjunct Professor of Strategy at INSEAD, Fontainebleau, and former partner at McKinsey & Company. Dr Jacques Bughin is a director at McKinsey & Company, and academic Fellow at ECORE as well as at the Katholieke Universiteit Leuven (KUL). Both draw on a long and broad experience of working in, and teaching on, the media industry.

• Advisory Board xiAbout The Authors xiiPreface xiiiAcknowledgements xvChapter 1 Introduction 1Media: One or Many Industries? 1Current State of the Industry 5Focus and Scope of the Book 11Chapter 2 Rebalancing the Media Value Chain 13Current Practices Mostly Historically Grown 13Fundamental Changes Still Ahead 20Consequences for the Management of Media Companies 29Is a Fundamental Rethink of Future Business Models Needed? 34Key Takeaways 36Case Study: The Welt Group: Creating New Business Models For News Provision 38Case Study: Hubert Burda Media: In Search of New Digital Business Models 57Case Study: Mediaset: From Focused Broadcaster to Value Chain Operator 69Chapter 3 Creating and Leveraging Innovative Content 83Future Role of (Blockbuster) Content 83Should Content be Redefined? 89Management of the Content Generation Process 92Peer Production, User-generated Content and Co-creation 101Key Takeaways 102Case Study: Endemol: Diversifying the Content Portfolio 104Case Study: OhmyNews: Creating a Sustainable Model for Content Co-creation 112Chapter 4 The Fight for Customer Attention: Intelligent Mass Marketing and Cautious Niche Strategy 121The Increasing Need to Understand Customers 121Strategic Brand Management 128Fine-Tune the Marketing Strategy to Revenue Model 133Marketing Strategies for Subscription-based Players 136Marketing Strategy for Niche and Thematic Offerings 141Key Takeaways 143Case Study: Canal+: Keeping Consumer Loyality in the Face of Platform Competition 144Case Study: EMI: Developing New Marketing Models for the Digital Age 156Case Study: Telenet: Leveraging Digital Segmentation 167Chapter 5 End-to-end Supply Chain Management 179Achieving Operational Excellence in Supply Chain Management 179Enhancing the Effectiveness of Standardized Media Supply Chain Processes 181Improvement Levers for Non-standardized Processes in the Media Industry 189Managing the Transition to Digital Platforms 192Key Takeaways 197Case Study: RTL Group: Creating a Digital Value Chain 198Chapter 6 Ways Out of the Advertising Commodity Trap 211Traditional Advertising Under Increasing Pressure 211The First Wave of Advertising Spending Shift: Direct Marketing and Below the Line 213Digital Technology at the Core of the Second Wave 214Reaching New Capabilities in Advertising 226Key Takeaways 247Case Study: Schibsted: Diversifying the Advertising Source 248Chapter 7 Corporate Strategy in Media 259Current Media Landscape 259Future Portfolio Logic 266Key Takeaways 276Case Study: Liberty Global: Multichannel Portfolio Play 277Case Study: Lagardere Active: Restoring Growth Through Operations  284Case Study: Sanoma Group: Restructuring the Portfolio for Growth 293Chapter 8 The Future Role of Online Media 303Online Start 1995--2001: ‘Overestimate in the Short Term’ 303Period of Consolidation 2002 to 2008: Building the Digital Platform 306Online Media Business Models 312Key Takeaways 321Case Study: Second Life: Peer Production Through Co-creation 322Case Study: YouTube: Building Social Media 330Chapter 9 People Management in Media Companies: Creative Managers or Managed Creativity? 339Current People Management Practices in the Media Industry 339Current Challenge: Embrace ‘Creators’ Yet Do Not Understate ‘Transformers’ 341Common Principles of People Management Processes for ‘Creators’ and ‘Transformers’ 342Management of ‘Transformers’ 345Management of ‘Creatives’ 346People Management in the Digital Media Era 356Outlook and Open Questions 364Key Takeaways 364Case Study: BBC: Adapting the Organization to the Digital World 366Index 375