December 2010 by Egmont

December 2010 / With the lights on full beam / Egmont in pursuit of the digital billion / TV 2 at digital eye level / Digital content for digital consumers / Vertical thinking / Explore and develop new bets / Taking Kids Media to the top / Nothing is quiet on the Eastern front / Many countries â&#x20AC;&#x201C; one market / With a little help from an Australian hare / Nordisk Film on a controlled offensive / A hybrid partner

Contents 3

Editorial

With the lights on full beam Market leadership is important for Egmont. Read more about what Group Management wants to focus on.

Egmont in pursuit of the digital billion Egmont’s digital strategy announces a serious focus on digital growth within six main areas.

TV 2 at digital eye level TV 2’s online TV channel, Sumo, is an example of what you can do with direct market access.

Ladies in fur coats shop in discount supermarkets too To get closer to the consumers Egmont focuses on Customer Relationship Management.

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With a little help from an Australian hare The acquisition of the publishing house Little Hare secured Hardie Grant Egmont better market access.

Digital content for digital consumers Read about Egmont’s early experiences with publishing on new platforms.

Nordisk Film on a controlled offensive The three leaders tell how they will work to secure Nordisk Film four years with no red numbers on the bottom line.

Vertical thinking Verticals will utilise the potential of the market. Read how the vertical ‘home’ is being created.

A hybrid partner The role as both attractive distribution and co-production partner makes Nordisk Film a force to be reckoned with.

Webshop your way to a stronger brand Hemmets Journal in Sweden and Familien in Norway is capitalising on their brands by opening web shops.

New roles and platforms The games people are trying their hand at developing games based on Egmont brands.

Explore and develop new bets In the future Egmont aims to explore and develop new bets that will potentially expand the business.

Teamwork to drive major initiative The mega-project Kon-tiki is the ultimate test for Nordisk Film Production’s teamwork.

Taking Kids Media to the top Kids Media plans to be at the front of children’s publications for all platforms including print and screen. Read here how they will do it.

Up close and personal with consumers Close consumer relations are key to future success for Nordisk Film Cinemas.

Going to the movies with BioZonen A revamp of BioZonen focuses on good customer relations and member loyalty.

From magazines to brands In the future, Egmont Magazines will be known as the owner of a series of brands rather than as a magazine publisher.

Digital ambitions at Kids Media Thinking in many different digital solutions and platforms is key when a division consists of that many countries.

Playing and learning on digital platforms Edutainment has always been important to Kids Media and now it is going digital. Serieforlaget has already launched 3til7.no.

Nothing is quiet on the Eastern front The position of the 20 Eastern European countries in Kids Media is going to be strengthened through cooperation around licenses, knowledge and economic growth.

Greater focus on fewer titles Lindhardt and Ringhof has had success with digital initiatives and discovered a formula that can help create bestsellers.

Many countries – one market Egmont’s business in the English speaking countries is going to grow with assistance from a new English Language Network.

Books are hot in Norway Norway sells more books per inhabitant than any other country in the world. Read about the success of Cappelen Damm.

Focus on a good life With a new strategy the Egmont Foundation aims at creating a good life for children and young people.

Strategy – the sum of many parts ’All men can see the tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved,’ wrote Sun Tzu in Art of War almost 25 centuries ago. Egmont’s strategy sets our group’s course for the next few years. If we view this strategy as the map Egmont will follow to reach its destination, along the way we should expect road works, delays in public transport or – a more fitting metaphor for Egmont perhaps – entirely new forms of transport. Thus the strategies will come to life not on paper but through our day-to-day work, yours and mine. Hardcopy has zoomed in on developments throughout Egmont and on how the specific strategies are finding local expression. Egmont’s overarching mission is the sum of all these strategies. A quick overview reveals that although Egmont encompasses a wide variety of businesses, these also share many challenges. Like many other media enterprises, Egmont is examining digital possibilities. Nordisk Film is aiming for four consecutive years of profit. Kids Media is aiming for growth through collaboration and individual regional strategies, and Egmont Magazines is looking into the future for magazines if treated as brands and concepts. So, with this issue of Hardcopy in hand, you can find out how Egmont’s strategies are being put into specific practice. Bearing Sun Tzu’s words in mind, we have done our utmost to present these strategies as clearly and accurately as possible. For does a strategy truly exist if no-one knows about it?

Colophon

Mika Bildsøe Lassen, Vice President, Corporate Communications

editor Jan Sturm sturm@egmont.com

co-ordinator Susanne E. Olrik olrik@egmont.com

editor responsible under Danish press law Mika Bildsøe Lassen mbl@egmont.com

Layout Pia Klinkby klinkby@egmont.com Printing Rosendahls Bogtrykkeri A/S

Photo Steen Brogaard SXC Ungdommens Røde Kors Thomas Fredberg Kristian Septimius Krogh Petter Berg Martin Stampe

Corporate Communications Vognmagergade 11 1148 Copenhagen K Denmark Telephone +45 33 30 55 50

With the lights

on full beam Right now market leadership, improved earnings and good digital revenue are central to Egmont’s Group Management. President and CEO Steffen Kragh lays out Egmont’s future direction.

By Mika Bildsøe Lassen

Egmont has a long-term goal aiming at building leading media positions. How do we reach this goal?

to increase operating profit to reach an EBITDA-margin of 10 % of Egmont’s total revenue within the next couple of years. We reach this goal by keeping focus on efficiency, on exploiting assets across the group, on securing the right rights and on closing down projects in time if they turn out not to be profitable.”

“We need powerful media companies with power to develop. Being among the top three players in most of our areas, we already hold strong market positions in important markets. But constantly we experience a dynamic in the way consumers use and experience media. Therefore, we must constantly develop our product, content and form, so the consumers will continue to prefer spending their time with our media. Furthermore, we have to develop new services around existing brands, in order to create more revenue streams and added value.”

In September, Group Management announced Egmont’s hunt for the digital billion. What is that all about? “The hunt for the digital billion means that our digital products in total have to sell for more than one billion Danish Kroner and, mind you, with a sound profit. We have recently launched a digital strategy to pave the way for reaching the goal (Editor’s note: Read more about the details of the digital strategy later in this Hardcopy). We have to improve our digital competencies and our digital centres in Oslo and Copenhagen are working on building new digital business. We want to avoid building empty traffic without any revenue. Of obvious reasons, we do not have one straight solution to this challenge, but an abundance of exciting projects are on their way.

Why is market leadership important? “Market leadership is essential in order to develop through size and large-scale operations. It is also a good point of departure for securing the best rights and recruiting the best talent. We have to remember, however, that consumers do not care about our size. Our consumers measure us on the relevance and value of each single product – so the battle is going on with every article, every film, every TV show, every online hit, every transaction and so on.”

You often talk about TV. Is this a specific focus area for Egmont?

Another goal for the Group Management is improving earnings. Do you have any comments to this goal?

“In the Group Management we believe, that living content on many platforms will play a key role in media consumption in the future. Because of this, we have invested a lot in television and will continue to do so, just as we will continue investing in living content on other platforms.”

“Egmont as a media group has done well so far in the economic crisis, but some earnings are still dropping on established products, because consumers change platforms and they have more and more media to choose from. In Group Management, we have set a goal

Read more about Egmont’s digital strategy and strategies for all divisions on the next pages of Hardcopy. Companies in the Egmont group operate on separate markets and under different market conditions. But what are the common denominators? “The first and most important common challenge is content, content and content. We all have to constantly create great and relevant content in the shape of knowledge, experiences and entertainment. With our products, Egmont has several premieres every day and each of them have to be relevant to the consumer, who immediately votes with their wallet. The second is that we need to strengthen our consumer relations in order to connect consumers closer to each product, brand and company. With a high level of consumer insight and a profound relation to the consumer, we can create the best solutions that benefit the consumer and in the long run also Egmont. Thirdly, we have to optimise our advertising platforms in order to connect advertisers with consumers. In particular, Egmont generates large revenue from television and magazine advertising. Lastly, we have to constantly work on being efficient. When circulation, readers and viewers are spread across more products, we have to run a solid media business with lower break-even points.” ▀

Steffen Kragh at Egmont Digital Days 2010

Egmont in pursuit of

the digital billion Verticals, digital publishing, market access, customer relations and new focus areas are some of the key concepts of the digital strategy intended to boost Egmont’s digital revenue to a billion DKK in the course of five years. By Lotte Ilsøe

Close relations Egmont’s challenge is to create profitable services and valuable customer relations, and the success of the strategy to develop a more digital Egmont depends on development and commitment from all group enterprises. Digital products must be developed close to the business heart of each division, and each of Egmont’s businesses must assess how best to help realise these ambitions. Over the next five years, the digital strategy must underpin the far stronger position that Egmont needs to establish in the digital media landscape. Every element of the digital strategy will be detailed and exemplified in the following pages. ▀

he strategy, which relates to Egmont’s multiple roles as content producer, distributor and retailer of entertainment products, is aimed to increase the divisions’ digital activities through new digital businesses, stronger digital customer relations and keener employee competencies. A digital billion Egmont commands strong market positions and has popular entertainment and learning products. However, changing consumer habits are challenging the value chain to which Egmont belongs. Today non-digital business accounts for more than 95% of revenue, and Egmont needs to go more digital to keep pace with developments. Egmont wants digital business to contribute 10% of revenue by 2015. With a total revenue of approx. DKK 10 billion, the ‘digital billion’ race has begun.

Egmont’s Digital Strategy 1. Secure market access

4. Build multimedia verticals

Ensure our products are for sale in digital outlets

Meet consumer needs centred around a specific interest

2. Strengthen our consumer relations and expertise

5. Capitalise on brands and IP rights

Understand our consumers as individuals and develop strong customer relationsr

Transition from a few to several revenue sources derived from the same brand

3. Master digital publishing

6. Explore and develop new Bets

Tailor products to new platforms

Identify new business areas outside the existing divisions

CEO Steffen Kragh joined with the digital board in presenting the digital strategy at the annual Egmont Digital Days conference. The board consists of Rikke Crosby, VP of Strategy and Development, Christian Lund, Digital Director and Cato Broberg, Digital Director.

TV 2 at digital

eye level

Part of Egmont’s digital strategy is concerned with ensuring our products are available in digital stores. Sumo has given TV 2 Norway direct market access and the opportunity for dialogue with consumers. By Niels Almer

elge Høibraaten, director of TV 2 Sumo, is a well-travelled man. He recently completed a tour running from the USA to Copenhagen, London and Amsterdam to present TV 2 Sumo’s platform and business model. He is in demand as a speaker because few companies can match TV 2 Sumo’s ability to make money from online content. At the same time TV 2 Sumo is a good example of how TV 2 Norway has secured direct market access and the opportunity for dialogue with consumers. Hardcopy met Høibraaten at a Copenhagen hotel

the day before yet another conference appearance. ‘A lot of companies work with digital strategies and are looking for the best business model. We have experimented with various solutions over the past eight years and, having now built up a solid business in our subscriptionbased customer relations, a great many people are interested in hearing about our solution,’ Høibraaten explains. Short-term earnings are not the only determinant for choice of business model. ‘Micropayments for individual programmes used to be a good source

of income for Sumo, but creating customer loyalty was tough,’ says Høibraaten. Valuable guide role Direct market access is important for TV 2 for several reasons: it lets the TV channel check prices and product mixes on its own and decide what to launch and when, thus enabling it to respond quickly to customer wishes. Sumo has set up feedback mechanisms that help staff better understand customer wishes and put editorial teams in a better position to guide and

Three quick ones

Whenever and wherever you like

about market access Why is direct market access so important to Egmont?

Rikke Crosby, Corporate Strategy and Development

‘Existing value chains are disintegrating, and both large distributors and technology suppliers are building their own platforms for selling and communicating direct with customers – Apples iTunes, for example. Securing market access for our products means we have to maintain a direct dialogue with our customers and preferably also establish direct sales channels.’ Will all Egmont companies have to establish their own digital store then? ‘No. In a number of cases having our own sales channels doesn’t pay because the competition is simply too great. In these cases we have to focus on developing our negotiating power so that we stand strong relative to the companies that own the direct customer relation.’ Can Egmont sell other companies’ products? ‘Definitely. Creating market access for others can generate good value, so it could easily make sense to build broad online shops stocked with both our and other companies’ products in areas where we currently have a big competitive advantage. We already do this in Denmark with kino.dk on the market for cinema ticket sales.’

inspire customers looking to get the most out of their subscriptions. Consequently, Sumo’s home page offers a ‘what’s hot’ feature, but all other pages also suggest new content for users to explore. The Twitter website clearly shows how much Sumo’s service is appreciated: ‘Now I can ENJOY the next episode of Desperate Housewives on TV 2 SUMO... love it..... a one-year subscription is mine!’ one user writes, while another puts it frankly: ‘Comparing TV 2 Sumo with ViasatOnDemand is like comparing Norway and Niger.’ ‘We can see that customers find our role as guide extremely valuable. Having control of what you want to see when is one thing. Receiving constant inspiration is quite another,’ explains Høibraaten, before going on to prepare

for the next day’s presentation. ▀

1997

TV 2 Sumo offers TV 2’s content to viewers on personal computers, Macs, mobile phones, Xbox and IPTV. Sumo is part of TV 2’s strategy to offer content ‘whenever and wherever you like’, the channel tagline. As well as offering content via Sumo, TV 2 collaborates with Norwegian broadband suppliers and electricity companies on content distribution. The aim is to get a ‘TV 2 button’ on as many TV remotes as possible. On the content side, TV 2 is looking to secure unique rights to content that Norwegians are willing to pay for. This happened, for example, with the rights to the Premier League championship. TV 2 also launches new channels regularly, most recently the entertainment channel TV 2 Bliss. See the presentation of TV 2 Sumo on Insight.

TV 2 launches news as streaming bites on the internet

2000 WebTV is TV 2’s first streaming content initiative 2002 Sells first subscription 2004 Launches mobile TV. Today TV 2’s apps rank no. 1 in sports and news on Norwegian iTunes 2005 Expands streaming to media centre and IPTV 2006 Launches the TV 2 Sumo brand 2007 TV 2 Sumo doubles revenue generated from the Tour de France by introducing interactivity to streaming content 2008 The Norwegian reality show Farmen attracts many viewers to Sumo, crippling the Norwegian internet 2009 TV 2 Sumo tries its luck with sole rights to the international match between Norway and Germany and launches HD streaming 2010 The time individual customers spend in Sumo’s universe is steadily increasing 9

Ladies in fur coats shop in discount

supermarkets too When consumers change their behaviour, Egmont has to follow. Shifting consumer habits and new competitive parameters have given CRM (Customer Relationship Management) new prominence at Egmont. For the first time, Egmont has spotlighted the issue and set up a CRM team in the digital centre in Denmark. By Lotte Ilsøe

’T

he traditional segmentation models that Egmont typically used in the past make generalisations based on random surveys and can no longer stand in isolation. The former division of customer groups into distinct subsets has become less clear-cut, and we now see ladies in fur coats shopping in discount supermarkets, for example. So today’s marketing strategies have to be more individually oriented,’ claims Stefan Brieghel, CRM and Marketing Manager. Since 1 April Stefan Brieghel has worked with his CRM team to collect and systematically collate all existing data on customers in the Nordic region and map Nordic consumers of Egmont products. The CRM team is also designing a CRM toolbox whose contents will supplement and optimise the marketing initiatives already underway in the group. The CRM toolbox is due to be launched in March 2011. By collecting detailed data about Egmont’s customers, the CRM team can produce a faceted and precise portrait of each individual customer’s actual consumption. The information will shed more light on individual consumer traits

and thus also on how the business divisions can attract more customers and, even more importantly, retain them. More effective marketing What distinguishes CRM marketing from traditional marketing is the dialogue that can be established with customers on the basis of the large volume of customer data. With more information about the customer, companies can better target their marketing initiatives and make them more effective. ‘Using CRM enables us to identify not only the customers that are best for Egmont but also those of no interest to us at all. So we target an even greater number of the right customers and get better at retaining the ones we already have,’ Stefan explains. One of Egmont’s strong customer retention assets is its broad product palette, which includes products for all ages, genders and life situations. The documented consumer synergies between Egmont products mean that over time we can develop an Egmont product recommendation service for customers. ‘We marketing people can often predict

product synergies, such as that ALT for damerne’s readers will also go to the cinema to see Sex and the City 2. CRM documents the synergies that actually already exist. A somewhat surprising finding is the possible link between Sirene and Beetle Bailey readers!’ says Stefan. Further afield Although the CRM team mainly focuses on mapping Nordic consumers, the idea is for companies throughout Egmont eventually to use the CRM systems. ‘The CRM toolbox must be applicable anywhere in the world, despite cultural differences,’ says Stefan. The CRM team will accompany the box as experts, but Stefan stresses that local CRM cannot be run from a head office; the success of this marketing strategy depends on its being embedded locally. ‘Grouping CRM activities together generates economies of scale – the more, the better and cheaper. There is great value in having businesses that can interact in all sorts of ways and use each other to boost their respective activities and their business as a whole,’ Stefan concludes. ▀

Digital content for

digital consumers One of Egmont’s strengths is its broad range of content – the challenge is to get the content out onto digital platforms. The publishing company Carlsen and the magazine publishers Hjemmet Mortensen have made their first forays into applications for Apple’s platform. ByThomas Sønderstrup

onsumers have embraced the new digital opportunities, and Egmont has to become even better at offering innovative products in digital formats that meet customers’ needs. A venture like this has to be guided by the new media in a way that ensures Egmont launches more than mere digital reproductions onto the market. Some products have to be reengineered, while others require only minor digital adjustments.

Bonytt Bad for iPad •

The Bonytt Bad app costs 39 Norwegian kroner and was launched in the Norwegian App Store on 30 October.

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Bonytt is part of Hjemmet Mortensen and with a circulation of 44,678 and 295,000 readers in 2009 is Norway’s largest home and interior design magazine

The ever-popular Apple Initially, several Egmont companies have set their sights on developing for Apple’s extremely popular iPhone, iPod Touch and iPad. ‘It’s relatively easy to develop apps for Apple’s devices, and we would like to ride the current wave of hype associated with being among the first companies to launch apps for iPad,’ explains Christian Steen Jensen, head of business development at Egmont Digital, stressing that Android and other platforms will also be considered in connection with future projects. Classic fairy tales in new guise: Hans Christian Andersen Together with the Carlsen publishing company, Christian Steen Jensen has adapted eight Hans Christian Andersen fairy tales from the book medium for iPad, iPhone and iPod Touch. ‘We have thought internationally and decided to start out with stories also relevant for children in the other 30 countries where we publish children’s media. Software development is costly, so we want to exploit our international standing. As we still don’t know how much we can expect to earn, we aren’t certain how much to invest in developing generic framework tools,’ Christian Steen Jensen points out. Obviously, little is known about the economic potential of new payment-based solutions, and this knowledge gap makes the task of launching digital content challenging.

‘We want to develop flexible, scalable solutions that can be applied to many brands and businesses in many countries. It’s vital to work smart and market the solutions between new application launches. As a large media house we need to approach our products from longer-term perspectives that enable us to bring down the development cost per digital publication.’ First the formats have to be tested and experience gathered, but the long-term aim is to challenge this framework. The legal aspects, not the technology, are thus key to success. ‘We need to take ownership of incomingcontent so we can act relatively freely across the platforms in our companies and operating countries. Successful digital publishing depends on contracts that secure rights in all media and platforms,’ Christian Steen Jensen concludes. A living magazine: Bonytt Bad Another example of new digital launches from Egmont comes from the magazine publisher Hjemmet Mortensen in Norway. ‘Interior design features seem almost made for iPad. We have developed the emagazine Bonytt Bad with multimedia content such as sound, picture galleries and 360-degree images of selected products, and readers can view the content both vertically and horizontally,’ explains Sigmund Clementz, project manager of iPad/e-magazines, Hjemmet Mortensen. In fact the wealth of possibilities is so

enormous that the editorial team members had to resist their creative impulses in the interests of Bonytt Bad’s profile and in particular of its readers. ‘The print edition of Bonytt is known for its stringent, streamlined design, and we have tried to transfer that look to the screen. A multimedia extravaganza would confuse readers,’ says Sigmund Clementz as he describes the initial experience with the new platform. The Bonytt Bad pilot project has generated plenty of food for thought overall. Above all, the editorial team has learnt to abandon well-entrenched routines for new, different ways of thinking. ‘Early on in the process we found it hard to let go of the familiar world of the paper magazine layout. We are better now at thinking in terms of the screen rather than paper. Learning about a new, completely unknown medium was a challenging process,’ says Sigmund Clementz, who is looking forward to applying his newfound skills to other projects. ‘The idea behind an iPad version of Bonytt Bad was to compile experience by developing a concrete product. We will draw on what we’ve learnt when we put new magazine titles into production. It’s important to get going so that we are seasoned players when buying an e-magazine has become as natural as buying a print magazine today.’ ▀

Digital successes Hans Christian Andersen for iPad, iPhone and iPod Touch •

Hans Christian Andersen’s fairy tales cost 24 Danish kroner per title, with the exception of the first book, The Tinderbox, which comes free with the application.

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The fairy tales were launched in the Danish App Store on 3 November.

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The Hans Christian Andersen app is slated for publishing in Norway, China and Japan, and the application will also be used to launch Bamse in Sweden.

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The eight fairy tale titles are: The Tinderbox, The Ugly Duckling, The Emperor’s New Clothes, The Steadfast Tin Soldier, The Princess and the Pea, The Swineherd, Jack the Dullard and Thumbelina.

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The American magazine Wired sold 110,000 copies of its first iPad app.

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A Halloween edition of the Angry Birds game for iPhone was downloaded 1 million times in six days.

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In the course of a week, the American rock band Kings of Leon’s latest album was downloaded 49,000 times from iTunes.

Vertical

thinking Every year Norwegians spend NOK 50 billion on home improvements. Verticals will help Egmont exploit this market potential. By Niels Almer

jemmet Mortensen covers the Norwegian house and home market with five interiors magazines, each in its special way offering readers ideas for improving their homes. But inspiration is only the first link in the home value chain. ‘Egmont must be in contact with customers from the moment they start thinking about rearranging the lounge furniture to the day they complete a purchase and discuss the results in the network,’ explains Anne Kolberg, director of Hjemmet Mortensen’s home and interior area. Cato Broberg, digital director of Egmont Magazines, Hjemmet Mortensen and the digital centre in Norway, is working with Anne Kolberg to make the most of all Egmont’s media products in the house and home sector in a comprehensive multimedia vertical that will follow them throughout the value chain. One element of Egmont’s digital strategy focuses on generating multiple income

streams from existing brands. The vertical strategy takes the opposite approach: ‘When we work with verticals, we start with the customer’s needs. What does he or she want?’ says Broberg. In other words, the focus is not on the medium but on the interest in house and home. This interest must then be promoted through TV programmes and inspiring magazines, tools and checklists for mobile phones, webshops and books about how best to tile a new bathroom.

Other verticals on the way

What is a vertical?

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Pregnant women and parents: Young women spend more time online and shop more. Egmont commands a number of strong positions in the area.

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Film: Builds on Egmont’s strong positions based on kino.dk and filmweb.no.

Transactions, transactions, transactions Transactions and prospective customers have become key concepts in an online world where content based exclusively on advertising income has proved to lack longterm profitability. Anne Kolberg illustrates why verticals are valuable in the house and home segment: ‘Verticals let us reach consumers at all stages – when they’re looking for ideas, planning, searching, acting and evaluating.

During the first phase, we establish a relationship with the customer that we will have to sustain during and after the transaction.’ In other words, it is ownership of the transaction itself that can generate profit for Egmont. Verticals build on strong content ‘We start working with verticals at the point with the greatest potential and where Egmont is most likely to beat the competition,’ says Broberg. He mentions a couple of specific projects: strategic alliances with external suppliers and collaborations or acquisitions that will enable Egmont to offer good online shops. ▀

The means of dealing with a target group that shares a specific interest, across channels and based on a single brand.

Anne Kolberg, director of Hjemmet Mortensen’s home and interior area

Verticals help us increase our consumer exposure.

Webshop your way to

a stronger brand Egmont Magazines has worked intensively to capitalise on its magazine brands. Webshop launches are one initiative aimed at strengthening the individual brands. By Lotte Ilsøe

he wealth of initiatives at Egmont Magazines includes trade fairs, mobile services, online games, satellite sites, travel tours and book publications, to name but a few. There are brand-related webshops where customers can buy gifts for their husbands, yarn for a woollen jersey or whatever else they might need here and now.

Webshops enhance the brand Launching a webshop as an extension of a print brand represents an opportunity to increase the number of transactions with customers who already read or subscribe to the magazine. But it is also an opportunity to raise awareness of the brand and reach new readers.

‘When I started Hemmets Journal’s webshop in 2007 I had primarily envisaged it as a place to sell craft items, but the shop has grown into a small warehouse with articles for both him and her,’ explains Ulrika Frolov, marketing manager at Egmont Tidskrifter, continuing: ‘The net is open to a far broader target audience, so readers of Hemmets Journal are not the

Hemmets Journal •

Weekly

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Content: Food, garden, home, family

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Circulation: 211,000

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Target group: 45+ women

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Egmont Tidskrifter, Sweden

Ulrika Frolov, marketing manager Egmont Tidskrifter

only people visiting the webshop – it also attracts other target groups beyond the reach of the magazine.’ A webshop is also a way of retaining loyal customers by developing the brand and offering readers a new dimension on a new platform. In Norway, Hjemmet Mortensen has seen this strategy at work with its webshop for Familien, which has a new issue out every other week. Aimed at a mature target group, the magazine enjoys extremely broad geographic distribution. The response to Familien’s webshop has also been positive. Hjemmet Mortensen’s sales and marketing director, Merete Simonsen, has observed an increase in sales via the net. ‘The webshop offers products that complement the products locally available to the target group. We have developed a product range based on our readers’ interests and taken it to a new platform. This has revitalised the relationship with our readers.’

brands. Scale will also be key, and that will spur us to work more broadly across Egmont, both locally and within the various divisions,’ Merete Simonsen concludes. The shopping project started at Hjemmet Mortensen in 2009 and there are now eight webshops in existence, all built around print brands. The Hemmets Journal team at Egmont Tidskrifter plans to implement a better technological solution in 2011 to increase sales and customer numbers. The expected revenue of SEK 4.5 million in 2010 is to be doubled in the long term. ▀

The income generated by traditional print magazines generally comes from two sources: advertising sales and magazine sales. Digital distribution narrows the income possibilities. Financial loss as a result of digitalisation can be prevented by making sure a single brand generates multiple income streams. More business activities related to a single brand can encourage customers to spend their money there.

Familien

Know your customers! Ulrika Frolov and Merete Simonsen agree that a successful webshop requires an advance understanding of the brand and its target group. If you miss the mark with the group’s needs and preferences, you end up with a warehouse full of unsellable products. One way of gaining direct insight into the group’s needs and preferences is to test new ideas on its members. The Hemmets Journal team make a point of getting customers’ advice when considering how to expand the product range. ‘If we want to add a new product and are unsure whether it will find favour, we sometimes launch a competition inviting customers to choose, say, their favourite bag from a selection of four. The customer enters the competition to win the bag by clicking on her choice. The most popular bags usually make it to the range of products offered in our webshop,’ says Ulrika Frolov. ‘Customer relations and brands will remain important, and digitalisation offers new possibilities for engaging in dialogue with customers. We need to continue adjusting and improving our customer dialogue, exploiting the marketing opportunities and developing the commercial potential of the strongest

Merete Simonsen and Product Manager Marianne Gustavsson on the left with a selection of the products found on Familien’s little web shop..

Capitalise on your brands and IP rights

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Published fortnightly

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Content: Handcrafts, food, garden, flowers

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Target group: 55+ women

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Circulation: approx. 111,000

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Hjemmet Mortensen, Norway

Egmont to explore and develop

new bets Egmont is establishing a new business area in addition to the existing divisions. An element of the digital strategy thus focuses on identifying new concepts that may not belong naturally in the current divisions. By Lotte Ilsøe

gmont aims to explore and develop new bets. This activity will be run from the digital centres in Norway and Denmark, which are tasked with looking into new business propositions, galvanising the process and attracting external business partners. Many new digital initiatives are not tailored to Egmont’s organigram, since they naturally cut across organisational boundaries. The digital centres are strong precisely because they have been established to manage some of the activities that are inter-divisional or even fall between divisions. The centres consolidate digital competency for the entire group, thus giving Egmont’s various companies greater strength than they would have possessed individually. Investigating new business possibilities is a continuous process, and the digital board is now evaluating potential new business areas. However, no concrete results have yet been presented. ▀

Taking Kids Media

to the top Egmont Kids Media will be concentrating on four key areas: generating geographic growth, growing the footprint in Eastern and South East Europe, building a digital position and implementing regional strategies to create profitable market positions. By Pernille Krogh

1. Refocus geographically on growth The goal is to become number one in the British market for children’s books and to expand the US and Australian fiction book businesses through acquisitions and/ or partnerships. The division will develop its existing activities in China by sharpening focus on the publishing side of the business. Kids Media will also create a onecompany approach in its Nordic activities and intensify its focus on cross-border marketing, sales and development. 2. Grow footprint in Eastern and South East Europe Kids Media wants to be the leading publisher and preferred children’s and youth fiction licencee in Eastern and South East Europe. This will be achieved through rights acquisitions and closer ties with other Kids Media areas. Egmont Turkey aims to lead the market for fiction through growth and rights acquisitions. 3. Build a digital position that establishes profitable models Kids Media are following how children are behaving online and building a digital presence in order to adapt to the long-term changes in demand for print products. Kids Media will prepare and invest in e-books, new digital magazine formats and digital comics to defend the core business. Online ‘edutainment’ for preschoolers is another avenue to be pursued. The key focus is to establish profitable digital business models. 4. Regional strategies to build profitable market positions Each individual region will be required to implement a strategy specifically aimed at improving Kids Media’s position in the various regions. The type of initiative required will differ depending on geography, current market position and consumer habits.

South-eastern Europe We are continuing to grow our core business with Disney, refresh the magazine portfolio, focus on the strongest franchises and book formats, explore the B2B model and examine opportunities in the newspaper market. We wish to acquire more top rights by targeting the ‘hit’ characters in the children’s world. To do this, we will exploit our franchise options while securing collective, international rights access, for example, through our division’s License Acquisition Project. Furthermore, we will focus our retail business on the mass market and ensure we have the right products for the rights markets. We will consider acquisitions as a means of bolstering our commercial activities, opening paths to new business areas and entering new markets.

Eastern Europe We plan to expand the core business in Egmont Russia by generating and evaluating new initiatives from October 2010 February 2011. Financial growth in Egmont Ukraine will be achieved through new magazine launches that underpin the portfolio of character-based titles and expand the distribution potential. We will implement cost-effectiveness measures to boost printing, stock management and development of book sales to Egmont Russia.

China and Thailand China will be the primary focus because of its significant market potential. Kids Media will continue to invest in China. The initiatives currently being discussed will double the size of the business. Kids Media has even more ambitious aims and a strategy to achieve them is currently being developed with our business partners.

Nordic region As an operator in a mature market, we are keen to streamline our Nordic activities to achieve a more effective business platform with a stronger focus on magazines. We are striving towards a more standardised programme for the region and, over time, a â&#x20AC;&#x2DC;one-companyâ&#x20AC;&#x2122; approach.

ELA (English Language Areas) and GSA (German-Speaking Areas) The main goal for Ehapa in Germany is to grow the existing core business, with special emphasis on developing market understanding, focusing on key products as well as investigating in new ones and adapting the organisation accordingly. Egmont Verlagsgesellschaften based in Cologne, Germany will enter new areas, optimize existing brands and also establish closer partnerships in order to take advantage of English titles in the German market. Egmont UK will continue to be a leading publisher of character-based products in its marketwhile increasing its share of the fiction sector and develop sales and marketing strategies. Egmont USA will continue to build and develop its list while also driving the acquisition of fiction rights for the ELA network. In Australia Hardie Grant Egmont will concentrate on more local publishing and broaden its portfolio.

Digital ambitions

at Kids Media The prime goal for Kids Media is to become or remain the leading publisher of content for children in Europe and China and to reach children on all media platforms, from printed publications to any screen or media unit. By Pernille Krogh

n future Kids Media wants to be integrated into children’s daily activities in a world full of iPads, e-books and webshops. Digitalisation is thus a pivotal component of divisional strategy. Every country in Kids Media’s geographic territory either has recently entered the digital era or is about to make the leap. However, digitalisation will require some innovation to take hold both in Eastern Europe and in the English-speaking countries. The Eastern European countries are pinning their hopes on edutainment – educational materials with an entertaining twist for children ages three to seven. In contrast, their colleagues in the English-speaking countries have focused on e-books. Not because children are necessarily the keenest e-book readers at the moment, but because success is a question of being well-prepared. ‘E-books for children still constitute a relatively small market, but with new devices appearing all the time, it is growing rapidly. However, the segment has not begun generating substantial income streams. Our current efforts should be manifestly seen as paving the way for the day e-books for children become the norm,’ explains Rob McMenemy, regional manager for Kids Media’s English- and German-speaking countries. Rob elaborates on the changes in key tasks: ‘Previously we had to get hold of the publishing rights to printed books. Today we have to acquire rights, defend them and publish the products digitally. If we don’t offer this service to our authors and agents, and create and exploit the rights we already have, they pass on the rights to other companies.’

producing a screen version, and the book will therefore be launched in an extended version once the film has been released. Licence-based products like ’Thomas the Tank Engine’ and ’Mr. Men’ will also be launched on the market in digital form, and Apple’s iPad launch earlier this year contained an original Winnie the Pooh e-book, published by Egmont UK, installed free. Eastern and South-eastern European colleagues are also preparing themselves for digitalisation, and already use popular platforms like Facebook: In Bulgaria our Bravo Magazine has attracted more than 25,000 fans. Obviously, it is not a source of income for us, but we have had success marketing ourselves through social media. Our employees in Turkey have started working with e-books in earnest,’ says Georgi Alexandrov, regional manager for South-eastern Europe. Egmont Dogan in Turkey is also a good example of how e-book rights can be secured. The company’s staff have taken the initiative to secure Egmont’s rights to their authors’ books. The business is facing a development where there are no sure-fire solutions but where the importance of publishing rights is indisputable. ▀

War Horse and talking train on new platforms In the UK alone the plan for 2011 is to publish over 50 e-book titles and publish four extended e-book editions of titles already available in print form. These include ’War Horse’ by Michael Morpurgo, a highly popular children’s book also adapted for the theatre and currently playing in London’s West End. Steven Spielberg is also Rob McMenemy, regional manager for Kids Media’s English- and Germanspeaking countries.

Playing and learning on

digital platforms

Edutainment – the English word for the play-and-learn concept – has always been an important business for the Kids Media division. To date the primary focus has been on analogue products such as activity packs and books, but digitalisation has now also come to this area. By Pernille Krogh

gmont has launched the edutainment program www.3til7. no in Norway. In Germany Ehapa is looking into the program’s potential for the German market, and Poland is another possible target country. A French concept, the program has enjoyed huge success because it manages to unite entertainment and education and thus encourages children to play and learn at the same time. For less than five euros a month, French parents – and soon Norwegian parents as well – can subscribe to the educational game solution, KizzTV, for their children. The program, to be launched in Norway under the name ‘3til7.no’, is intended primarily for children of preschool age – three to seven – and offers games that help them learn and practise various skills. The program is designed to self-adapt the game’s level of difficulty to each child’s ability, and its elements can be combined in numerous ways. Every time the child completes a game in a category – for example, shooting balloons with letters to make up a word – the child reaches a new level, and the games increase in difficulty.

The opportunities to improve and learn new skills are thus endless. Technically, the program closely resembles a website and can be downloaded to either a PC or a Mac. Once downloaded, a program icon appears on the computer screen, and a single click is all that’s needed to launch the games – exactly as if a CDRom had been installed. Parents can then compile a game pack by selecting various categories and keying in the child’s age. The child has three different games to choose from each time he or she plays, but a game that is repeatedly avoided must be played before the child can advance to the next level. Parents can type in how long each session is to last, and the child can follow how much time has passed by watching the clock on the screen. When the time is up, the program closes automatically, preventing parents from becoming ‘the bad guys’ if the child is upset that the game has ended. Program development in Norway has now been finalised, and the product is expected to be available there in December,

while in Germany the idea is still on the drawing board. ▀

‘3til7’ was launched in Norway in November as a collection of fun games with a learning element for children.

Nothing is quiet on the

Eastern Front

Cooperation is the keyword for the 13 Eastern European countries in Kids Media as they gear themselves for growth over the next five years. The cooperation encompasses licences, economic growth and knowledge. By Pernille Krogh

uring this year’s Frankfurt book fair, Mattel’s licensing agent made the following observation: ‘I’ve noticed that Egmont has recently become very focused on internal collaboration.’ And Mattel and Disney are vital partners for Kids Media. The Kids Media strategy makes it a top priority to secure a position as Disney’s preferred licensee, and continue its close collaboration with the Disney group. Beyond maintaining a good relationship with licence holders, Kids Media also needs to focus on making new, better agreements. Scouts secure licence agreements for the future The new Licence Acquisition Project (LAP) is an initiative consisting of a team of regional scouts and a team of country scouts tasked with identifying, winning and retaining the best licence agreements on the market. The country scouts report to the regional scouts, who are responsible for coordinating feedback on the new licences. The teams exchange information about new and upcoming acquisitions, compare notes on results, and encourage the use of the LAP tools – sales presentations, brand evaluations and business plans. The country scouts will also brief their

regional counterparts about interesting local possibilities, point up local interest in global brands, inform regional scouts about brand results, and respond to requests regional scouts’ receive for business propositions from local markets. Cooperation means better products However, the format itself must be streamlined further – for all Eastern European magazines. Several economies of scale can be generated in future when the various Eastern and South-eastern European businesses start cooperating by forming networks and sharing experience in a strong, more cohesive Kids Media division. Standardising magazine formats, paper grades and agreements with printing works throughout Kids Media will enable the division to publish better products at significantly lower cost, and streamlined formats will be a possibility. A more diverse magazine portfolio will be possible, with opportunities for publishing oneoff magazine editions as well as special editions and a few expensive magazines. The concept of a strong Kids Media in Eastern and South-eastern Europe is crucial to this development. ▀

Licence-based products The core business area of Kids Media Eastern and South-eastern Europe is the publication of character based magazines and books for children. In 2009 the division as a whole generated revenue exceeding DKK 3 billion, the bulk of which is attributable to licensed-character publishing. Examples of licencebased products include Disneyâ&#x20AC;&#x2122;s Princess magazines.

Many countries

- one market A sharp focus on geographic development will generate the volume and thus economic growth that Egmont’s businesses in the UK, the USA and Australia are planning for the next four years. By Pernille Krogh

’I

n five years’ time, we want to rank number one in the British children’s book market, be up among the top five in Australia and grow in the USA. That is our goal,’ states Rob McMenemy, regional manager for Kids Media’s Englishspeaking countries. The division intends to reach its goal by securing the best rights on the market, expanding geographically and creating economies of scale. At the moment Egmont UK sits solidly on the British book throne while Hardie Grant Egmont also numbers among the heavyweights in Australia. Egmont has set

Market positions United Kingdom: No. 5 in the children’s book market No. 1 in the market for licence-based children’s books Australia: No. 8 in the children’s book market USA: Limited, but growing

a more modest goal in the USA. However, this modesty should not be confused with lack of ambition, but seen as a more realistic approach for a relatively small publishing company, only one-year-old, in a gigantic market. ‘We have skilled employees who constantly acquire new titles and strive to expand the business, but it’s hard work, especially because we entered the US market in the middle of the recession, when consumers were very cautious. Our market entry also coincided with the digital era, which was in full swing at the time. Everyone was fixated on digitalisation, and print books were in low demand. But it is a huge market – the world’s largest. The children’s book market alone is worth three billion dollars, so there is more than plenty of potential!’ smiles Rob McMenemy. Acquisitions, partnerships and networks create growth All three business arms are aiming at growth – no easy task in today’s print publishing market. However, strong publishing rights lead to good economy, and the slogan ‘united we stand’ applies equally here. Employees in the three English-speaking countries share information about authors and agents via a relatively new network called the English Language Network, and they work together on rights acquisitions when necessary. The greater the market access and the larger the portfolio, the

greater the chance of getting the best rights. The network has operated for almost a year and fostered the acquisition of 13 titles for all three English-speaking businesses. The German publisher Egmont Verlagsgesellschaften recently joined the network project. So what is the wisest tactic for capturing new markets? Entering partnerships or trying to do it alone? Company acquisitions? ‘When your company moves into a new market, a joint venture can lessen your risk somewhat and you also gain the other company’s experience – their knowledge, market position and expertise in the market concerned. You have to look at the conditions in the new market. We are currently examining the potential for geographic growth, and have discussed the possibility of collaborating with a number of players in the market, if this fits with our business. But it’s too early to say anything about where and when,’ says Rob McMenemy. ‘Our future challenge in the case of printed books is that they are in mature markets that grow only slowly, if at all, which makes it more difficult to boost income. However, we can generate income by drawing on our cost-effectiveness ability and focusing on the economies of scale – “Bigger scale equals better prices”. And by growing geographically,’ says Rob McMenemy. ▀

With a little help from

an Australian hare Hardie Grant Egmont aims for a top 5 position among children’s book publishers in Australia. The strategy is a combination of getting better market access to supermarkets and small book shops, the continued ability to get the right rights and a first mover position on e-books. By Mikkel Løndahl

010 has been a turbulent year for Hardie Grant Egmont. The Australian Children’s book publisher began the year by acquiring the small but highly respected competitor Little Hare. This broadened Hardie Grant Egmont’s book offering from ‘books that kids want to read’ to include the beautiful and traditional children’s books from the Little Hare list that resonate with parents and grandparents. Amidst this excitement, Hardie Grant Egmont was affected when two of the major book chains in Australia and New Zealand were hit by financial difficulties. “It cost us hugely on sales, and it will affect the result this year. But it made us remember, that we needed to refocus our strategy and get market access to more than just the book chains and discount department stores that we used to focus on. We also need access to the smaller independent book shops and the supermarkets. We cannot rely on only one part of the book market,” says Sales and Marketing Director Natasha Besliev. The perfect match “We knew there was a huge potential in better distribution of the Little Hare titles into the accounts Hardie Grant Egmont has strong relationships with - the book chains for example. We believe in a 20 percent growth for the list in 2010-11. But we underestimated what the reputation of Little Hare could do for the more modern Hardie Grant Egmont titles in the

independent book shops. The result is a broader market access for all our titles,” says Natasha Besliev. Top five The goal for Hardie Grant Egmont is a top 5 position among children’s book publishers in Australia and New Zealand. And Natasha Besliev and her colleagues know it will take more than a broader market access to reach the goal. “We need the right rights, especially from the international authors. Therefore we need to continue the good work in the English Language Network in Egmont. When we say to the authors: We can give your book a home in the USA, Australia, New Zealand and the United Kingdom we get the buying power to pitch for the best international rights. For us in Australia it means that we get access to great US and UK titles that we could not buy alone,” says Natasha Besliev. First movers The last leg in the Hardie Grant Egmont strategy is to be first mover on children’s eBooks in Australia and New Zealand. Since August all Hardie Grant Egmont new title releases are published simultaneously as eBooks. Add to this the backlist of Hardie Grant Egmont titles, and there are more than 130 eBook titles available today. “We want to be among the first publishers to be present in the digital market and be able to react when sales take off. We are

also working to find out how the eBook can help the physical book and vice versa in exciting and engaging readers,” says Natasha Besliev and mentions that they do not have trustworthy sales numbers yet.

About Hardie Grant Egmont •

The 6th largest Australian children’s book publisher on value sales

•

Head office in Melbourne and offices in Sydney and Auckland (NZ)

•

19 employees

•

Turnover 2009/10: AUD 10.5 million

•

Profit 2009/10: AUD 2.5 million

•

Since 2003 owned 50/50 between Egmont UK and Hardie Grant (a strong local food & wine book publisher)

•

The children’s book publisher Little Hare was acquired In January 2010

•

www.hardiegrantegmont.com.au

•

www.littleharebooks.com

Grant Egmont’s slogan is: ‘We . Hardie ▀

make books kids want to read, not books that their parents and teachers think they should’.

The acquisition of the children’s publisher Little Hare has improved Hardie Grant Egmont’s access to the independent book shop sector that usually focus on the more traditional books that parents and grandparents love.

Nordisk F

controlled

Film on a

d offensive Nordisk Film is spearheaded by three leaders, all determined to achieve what no company head before them has: to present a positive bottom line for four consecutive years. The means to make the Nordisk Film name synonymous with solid economy and development are teamwork, business acumen and simple common sense.

By Irene Brandt

ordisk Film has enjoyed its positive years, but in the past decade has not recorded two profitable years in a row. The bustle of life in the companyâ&#x20AC;&#x2122;s Valby headquarters is reminiscent of Nordisk Filmâ&#x20AC;&#x2122;s heyday when the Olsen Gang films and the TV series Matador were simultaneously in production. A visit to the canteen around noon speaks for itself. Nordisk Film has become the place where talented media people want to invest their time and energy. The Olsen Gang has even made a comeback, this time in 3D! On the third floor of the media building, I met three men sitting in the same open-space office. They have a plan and so far, it has succeeded. Together, CEO Allan Hansen and his two corporate management colleagues, chief financial officer Thomas Rehling and business development director Asger Flygare Bech-Thomsen, are well on the way to building a sharply focused company with healthier finances than it has had for a long time, without stifling the spirit and creativity of the 104-year-old entertainment business. 29

Another year of profit has been forecast for Nordisk Film, the second time with you at the helm, and you are expecting the company to be in the black again – what is your formula? Allan: ‘It’s been important for us to address the challenge as a team, both corporate management and the other members of the management group. And of course we have coordinated closely with my colleagues in the Egmont Group management. We have effected many changes since the beginning of 2009 and tried to explain the process openly and honestly to employees. This has been a factor in the general understanding and support we have encountered. We have poured all our energy into establishing focus and setting priorities. That’s the only approach that will enable us to invest in development and growth and thus be less vulnerable.’ Thomas: ‘We’ve made a lot of progress with our financial management. Every month all Nordisk Film’s business areas focus on delivering goals and ensuring that the results are true and fair so we avoid unpleasant surprises at the end of the year. Lastly, we’re focusing on cash flow, and I’m impressed at how good we’ve become at converting net profits into “cash in the coffers”. That is ultimately the foundation that enables us to invest and grow the business.’

minimise them. So we insist on getting fact-based business plans to support investment recommendations and on having the salient competencies and people in place before we make decisions. I should also emphasise that, as a company, we have limited resources and therefore, despite the array of promising investment projects, we have to be selective and often have to turn down offers – even for good projects.’ Since Nordisk Film was reunited in 2002, with production and distribution again under the same management, successive management boards have worked hard to create a single culture, Nordisk Film United. What holds Nordisk Film together today? Asger: ‘We believe that we can produce the best results as a group. But synergies don’t come out of the blue and cannot be constructed. Sometimes we have to accept that the only things we have in common are a set of values, a common rapport and the same canteen. But when opportunities arise, we have to seize them and be geared to setting something in motion.’ Allan: ‘Our job is to create the best conditions for our business areas, so that they have freedom to act and run the business on their own terms. From this initiatives arise which can act as the foundation for future cooperation and synergies across areas. It is our experience that there is a great willingness to work together.’ Asger: ‘Politically, our responses may differ externally. There can be differences in the way we respond, depending on which part of the business is concerned. We operate in different markets and competitive situations. The interests of the business will always come first, and we rely on the relevant trade associations in each area, but nevertheless we can still be part of the same family.’ The headline for your activities is ‘Four years of profit’. Some might claim this does not sound particularly ambitious. What is your response to that? And what do you plan for the years after 2012? Thomas: ‘We focus on delivering what we promise and try not to promise more than we can deliver. So the formula is ambitious but the goals realistic. Naturally our job is to deliver profits every single year in future and, in the long term, preferably higher profits and cash flow that will provide sufficient funds for us to invest in the growth and development of Nordisk Film.’ Allan: ‘We must remember our history. Running Nordisk Film profitably has always been hard. 2010 represents only the second straight year we have been able to present positive annual results (at EBT level, editorial note). We now have a handle on the business and are thus ready for development. We all need to have a visible goal on the horizon.’ ▀

How would you briefly describe the strategy you are pursuing? Allan: ‘Overall we now have the company under control. We have adapted it to the market challenges we face. We have cut our costs. I’d call what we’re doing now a “controlled offensive”. We need to expand our position as Scandinavia’s leading entertainment company in films, games and cinema operations. And earn money on those activities.’ Asger: ‘Our main challenge is to create profitable growth. Our strategy rests on three pillars, each based on the areas where we create value: films, games and cinemas. We believe in our rights holdings and consumer relations. Our strategy reflects that belief. One of our development projects is NF Live, which essentially expresses our belief in the potential of live entertainment production. We’re not talking about high culture here, I’d probably call it blatant entertainment or popular art.’ Allan: ‘We’re already working with various forms of alternative content for our cinemas, one being Opera Bio, an area we must develop. And new cinemas are in the pipeline. On the games side, we need to build on our position, follow SONY online and get involved in developing smaller games. As for films, we believe our future activities will be a hybrid of production and distribution. Having a foot in both camps is a tremendous advantage for us – particularly as regards taking on the digital future and getting a piece of the income streams it offers. We have also established a digital set-up that puts us in a good position to meet the future .’ Thomas: ‘We have reached the point where we can gradually switch to a higher gear in terms of investment in profitable growth opportunities. Fortunately, projects and investment opportunities abound, both good and bad, but at decision time it’s often hard to know the difference between the two. We can’t totally avoid wrong investments, but we are very conscious of the need to

Examples of crossorganisational cooperation at Nordisk Film include The Olsen Gang Gets Polished and Kon-tiki, which have brought together talents across business areas and country borders.

A hybrid

partner Rights are the backbone of Nordisk Film, and running a profitable film business takes a strong catalogue of international and Nordic titles. Having the role of attractive distribution and co-production partner makes Nordisk Film a force to be reckoned with.

By Irene Brandt

ewer film titles are becoming top-grossing box office hits, and large distribution businesses like Nordisk Film will have to re-gear themselves to this trend. ‘In future, we believe our business will be a mix of production and distribution that combines the best of both worlds. We work closely with both our own film production units and our excellent partners in the Nordic film environment. We have enormous consumer insight, which we, along with our producers, will use to develop the best creative output. We will also build market share in the growing digital market,’ explains Kenneth Wiberg, general manager of Nordisk Film Distribution. Whereas the distribution business in the past bought up to 100 international films annually for Nordic distribution, now only about 35 titles make the cut. ‘Our purchasing has grown more selective, and we are also assuming the role of co-

Kenneth Wiberg, general manager of Nordisk Film Distribution

producer for Nordic blockbusters. These new strategic elements give us clout and negotiating power as regards the retail trade – our customers and a sector currently undergoing major consolidation,’ says Kenneth Wiberg. The huge importance of Nordic blockbusters is mounting steadily. This is what consumers want, and the pressure from big-budget Hollywood productions is great. Stieg Larsson’s Millennium trilogy is an example of a co-production that fully follows Nordisk Film’s strategy in the area. Both Nordisk Film and its co-production partners have a keen focus on the crime genre, which holds enormous potential. Lone Korslund, Nordic acquisitions manager, explains: ‘Inspired by the Millennium trilogy, we are focusing on major Nordic films with pan-Nordic potential. This can lead to bigger production budgets, thus attracting the best creative talent in Scandinavia and enabling massive marketing campaigns in the Nordic region. We are currently working with Yellowbird, a Swedish drama production company, regarding Jo Nesbø’s Headhunters, which has finished shooting and is due for release in the autumn of 2011. We will also be working with the same partner to co-produce six films based on Liza Marklund’s books. The first, Nobel’s Testament will be a feature film

slated for spring 2012. We have more big Nordic projects in the pipeline, and we want Nordisk Film to be a natural choice of co-production partner and distributor, because we have extensive experience and can lift each film to another level because we embody the entire value chain.’ ‘Our greatest ambition is to be the most attractive distribution partner in the Nordic region. We have everything it takes to capture and retain that position. We are also well on the way to becoming the natural choice of partner for major Nordic co-productions. Because even though we’re a big company, we know what is best for each individual film. That’s where we add value and that’s the benchmark we want to be measured against,’ Kenneth Wiberg concludes. ▀

Stieg Larsson’s Millennium trilogy recorded huge box office sales in the Nordic countries. This type of blockbuster success is essential if Nordisk Film is to hold its own against major Hollywood productions.

New roles

and platforms The longstanding partnership with SONY is critical to Nordisk Film Interactive’s activities, and so it will remain. However, this does not rule out expanding and exploring other mainstays to add to the business. The games people are trying their hand at developing games based on Egmont brands.

By Irene Brandt

n 1995 SONY authorised Nordisk Film Interactive to distribute PlayStation and related products in the Nordic region, and Interactive’s principal strategic focus is to retain these distribution rights. The authorisation applies to physical products, as SONY wants to handle the digital side of the business itself. Dennis Englund, general manager of Nordisk Film Interactive, explains: ‘A position as either games developer or publisher in the digital value chain is logical and makes sound business sense. We’ve made the most progress in games development. Our involvement with physical products has given us excellent competencies and indepth insight into Nordic consumer habits and media. We can deploy this expertise in our work with new business models in the digital arena.’

Dennis Englund, general manager of Nordisk Film Interactive,

Developing games with Egmont Serieforlaget Interactive works with Egmont Serieforlaget to develop games based on Rasmus Klump and, like many other Egmont units and companies, is engaged in developing and launching products for the upcoming animation Ronal the Barbarian from Einstein Film. ‘Starting with our own Egmont brands is an obvious way to enter the games world. We can take advantage of the potential synergies and Egmont’s muscle. Over time, we want to develop the business to include games development inspired by external brands as well,’ says Dennis Englund. Multi-platform games are the only way to create a sustainable business. As with film

distribution, small marginals make volume important. Once the company has gained some experience from the Rasmus Klump project, cross-Nordic brands will be another potential source of income. Sweden has Bamse, Finland has Niko and Norway has Pondus, all characters that are suitable for a games universe. ‘We are trying to find out whether there’s a market niche for us to fill. In brief, we’re looking to act as a link between other players with digital content that they need to distribute,’ Dennis Englund concludes. ▀

Teamwork to drive

major initiative For Nordisk Film, the strategy includes the goal of becoming preferred partner for large-scale Nordic film productions that are internationally viable. The success of the Millennium trilogy has already proved this to be possible. However, the ambition reaches beyond projects for which Nordisk Film is co-producer and distributor. The mega-project Kon-tiki is Nordisk Film Production’s ultimate test. By Irene Brandt

he Nordic region boasts few major film projects with international potential, but when opportunity knocks, Nordisk Film’s film production unit must be a self-evident cooperation partner. No other Scandinavian production company can rival Nordisk Film’s command of the entire film-making value chain or offer such excellent competency on all fronts. Kon-tiki is a good example. The story of the legendary Norwegian expedition, headed by Thor Heyerdahl, in 1947 to sail across the Pacific has been on the drawing board for several years, and ambitions for the project have fluctuated over that period. In March 2010 the Norwegian Film Institute gave the project the largest grant ever awarded – NOK 18.5 million in addition to ticket subsidies expected to run to NOK 15 million. Nordisk Film in association with the British Recorded Picture Company will produce the film, to be directed by Espen Sandberg and Joachim Rønning, the

Henrik Zein, general manager of Nordisk Film Production

acclaimed directors of another Norwegian drama feature, ’Max Manus’. Four-way filming ‘Kon-tiki is a shining example of a project where Nordisk Film’s involvement is vital. We are the company for the job because the Nordisk Film team is strong across the board. It is a mammoth project that will be shot by local film crews in four different countries,’ explains Henrik Zein, general manager of Nordisk Film Production. Aage Aaberge is the producer on the Nordisk Film side. At Nordisk Film Production in Denmark, general manager Henrik Zein and administration manager Lena Haugaard will coordinate funding, production management and financial management as well as handle the numerous underlying complex agreements. On the distribution side, Nordic acquisitions manager Lone Korslund will provide the link to the film directors, be involved in the script and provide creative input to ensure

the film gets the best possible promotion. The project is also firmly embedded in the corporate management team, with business development director Asger Flygare Bech-Thomsen as anchor man for the highly intricate negotiations that numerous stakeholders and a large budget entail. ‘We are excited but also humble in the face of this task. Those who remember I Am Dina know that we have some ghosts haunting us. For this reason, we are extremely aware of the need for realistic ambitions and strict financial control. We’re looking forward to working with Jeremy Thomas and Peter Watson from Recorded Picture Company, which, along with Hanway Films, is the perfect partner for giving the film an international edge. Naturally we hope that Kon-tiki will lead to other similar projects. With the team we have put together, we have the best chance of success,’ says Henrik Zein. ▀

Up close and personal

with consumers Although most people associate Nordisk Film Cinemas with magical, big screen experiences and the smell of popcorn, the cinema chain is a retail business in its true traditional sense. While more cinemas and a broad range of experiences are part of the strategy, close consumer relations are key to future success.

By Irene Brandt

hen Nordisk Film Cinemas opens a newly built cinema in Næstved in 2011, it will be the chain’s 19th, with more in the pipeline. The company strategy embraces not only growth via more cinemas but also cinema ‘shelves’ stocked with more products in the shape of alternatives to the film-going experience. ‘We must retain and expand our position as the largest, best-run cinema chain in Denmark. Our main product is film showings for cinema guests, but we can also exploit our theatres’ potential for other types of viewings and events. We are currently working on developing this area. The cinema club BioZonen, for example, can give us more information about our guests and customers, which we can use to target our efforts more precisely and offer the market what it wants,’ observes John Tønnes, general manager of Nordisk Film Cinemas.

Quality is the code word for Nordisk Film Cinemas in 2011. It’s that simple. The core service is providing quality experiences to the approximately six million guests that visit the chain’s cinemas every year. And guests are the heart and soul of the business. Loyalty programmes like BioZonen have helped Nordisk Film Cinemas forge even closer bonds with cinema-goers. Since the launch of Denmark’s largest film site, kino.dk, BioZonen has been revised and extended with BioBonus, a dedicated loyalty programme whose members can collect points that they can exchange for cash rewards personally tailored to them. The club has over 180,000 members, and its goal is to reach the 200,000 mark by the end of 2010. Top-quality experiences and higher consumer satisfaction also depend on physical surroundings. Several major renovation projects are therefore underway in a number of cinemas. For example,

Palads in Copenhagen has undergone a substantial, much-needed facelift, and several other Nordisk Film cinemas have been partly refurbished. ‘Although we are big, we have to be on our toes all the time and make sure we live up to our guests’ expectations. They have any number of other exciting offers to spend their time and money on. Throughout our organisation, we strive to give our audiences our all every single day – and we expect this of everyone no matter their function,’ John Tønnes concludes. ▀

John Tønnes, general manager of Nordisk Film Cinemas

Going to the movies

with BioZonen The revamped BioZonen focuses on good relations and member loyalty. The cinema club aims to number 200,000 members by the end of the year. By Joan Jensen

ith a wealth of offers vying for audience favour, cinemas have to forge even closer ties with their guests. For a decade BioZonen has provided a meeting place for film lovers, rewarding them for choosing Nordisk Film venues by offering a range of perks such as events, special offers and competitions. We want to retain their loyalty in future. In October the people behind BioZonen launched a new system with an even sharper focus on user involvement and customer loyalty than its predecessor. The importance of keeping existing customers has become abundantly clear. ‘Good customer relations are the beall and end-all for us. We are in fierce competition with other cinemas and entertainment offers. If we want audiences to prefer our cinemas, we need to give them something extra that the others can’t,’ says Stine Påskesen, membership coordinator of BioZonen. New features The new version of BioZonen has loads of features. Joining is free, after which members earn points for every cinema visit. Members receive invitations to sneak previews and events, and can interact on the BioZonen website, which offers

further possibilities for earning points, for example, by reviewing films they have seen. Members get a free cinema ticket once they have amassed enough points. ‘BioZonen members show us which films they like. This gives us a unique chance to engage them in a personal dialogue about their taste in films and how they can earn and spend points on other films that we recommend. That attracts guests into the cinema and makes the till sing,’ says Jacob Elkær-Hansen, sales and marketing manger of Nordisk Film Cinemas. Loyalty pays BioZonen also distinguishes between silver members and VIP members. To qualify for VIP status, members have to visit the cinema at least 12 times a year. In return they get a discount on popcorn and soft drinks, and are invited to more events than silver members. ‘Our primary focus is not getting members to visit the BioZonen website as often as possible but drawing them into the cinemas as often as possible,’ continues Jacob Elkær-Hansen. ▀

Stine Påskesen, membership coordinator of BioZonen

Ten years old this year For a decade BioZonen has been a place for cinemas to rally film lovers, rewarding them for choosing Nordisk Film venues by offering a range of benefits such as events, special offers and competitions. Over the past few years BioZonen has become more than a meeting point, and the cinema club now numbers more than 180,000 members. The end-year target is 200,000 members.

From magazines

to brands Egmont Magazines is traditionally known as a publisher of magazines and weeklies. However, in future, the division intends to be recognised primarily as the publisher of a range of brands. By Jan Sturm

ery few people can name a magazine title that has enjoyed growth in recent years. When asked for an example, the man who heads up Egmont’s Nordic weeklies and magazines points out that the question needs to be reworded. Because in future the magazine business is to be seen as a brand enterprise exploiting its brands across multiple channels, countries and topics. ‘The trend definitely shows that readership for some of our publications is gradually diminishing – on the other hand, because we are attracting target groups via several new channels, our position on balance is just as strong as it used to be. We no longer see Egmont Magazines exclusively as a publisher of magazines and weeklies, although this business will continue to be the absolute bedrock of our division,’ explains Torsten Bjerre Rasmussen, who joined Egmont as Executive Vice President of Egmont Magazines in July this year. He refers to the fact that the magazines and weeklies have a customer following that adores the particular brand, identifies strongly with it and is prepared to spend time and money on it and its related services and products. ‘We want every new magazine or weekly that we put onto the market to add value for customers. Not only should they want

Torsten Bjerre Rasmussen Executive Vice President, Egmont Magazines

to read our magazines, they should love them too! And fortunately that is also the case. We find that our customers miss our products and look forward to the next issue. This type of customer relationship is worth its weight in gold – and a significant element of our strategy is identifying methods to develop these relations.’ Every year Egmont’s Danish women’s weekly ALT for damerne invites readers to join its women’s run, and you could say it has a hidden agenda. Giving readers an extra experience is not the only aim; the event could also become a good business proposition if we continue our professional cooperation with advertisers, sponsors and other relevant partners. Target group specialists ‘I’m impressed by our insight into the target groups. Our editors are walking encyclopaedias in niche marketing! They can tell us very accurately what readers think, where they travel, what they eat and whether they drink wine or not. As an outsider, I find it impressive to see how we measure our own successes every week and adapt the products accordingly,’ says Torsten. This expertise is invaluable in a world where everyone is competing for customers’ time. One of Egmont Magazines’ goals is thus to make better use of its treasure trove of

knowledge about target groups. Packaging products in different ways and working more closely across the organisation internally are just a couple of ways of doing this. A good interior design story might find its way to a digital service or publication in a peer magazine in one of the other countries. ‘For example, one of our Norwegian companies recently published a house and home magazine where some of the content was based on material produced in Denmark. This is one way that we can collaborate far more closely throughout the division.’ Falling readership A quick glance at magazine circulation figures shows that most titles are losing ground. And Egmont’s head of magazines admits that this trend will be difficult to reverse. However, the market still offers potential for making good money.

‘We want to further improve our optimisation efforts – and I also aim to produce more magazine titles,’ Torsten Bjerre Rasmussen asserts. He points out that all print media are facing structural challenges, and highlighting the threats is easier than identifying the fast track to solid digital income. ‘New possibilities are constantly emerging, and we must get better at seizing opportunities as they arise. In 10 years we will still excel in the areas where we already do well. But readers will discover that our products arrive in guises other than magazines and weeklies on store shelves.’ How important will digital publication be for magazines in future? ‘Naturally, the digital development trend underlies our development initiatives – and as for developing purely digital magazines,

magazine publishers the world over are currently searching high and low for a viable earnings model for such publications. We have now launched our first magazine editions for iPad, and from this point forward we are going to spend time testing how we can make money on this type of magazine. At the moment no one can say whether this publication form will generate profits through subscriptions, advertising, shopping links or other models. The parameters we are currently monitoring include not only how many paying customers we can drum up, but also how we can give them a superlative magazine experience on digital reading platforms,’ explains Torsten Bjerre Rasmussen, who points out that the publishing sector has yet to produce a digital magazine that generates income anywhere close to the strong print magazines. ▀

Egmont Magazines is looking at three specific areas that can underpin the key role that its magazines and weeklies play in the daily lives of readers:

•

• •

Verticals, where we position ourselves firmly in a particular subject area. This means Egmont Magazines must excel at finding the right cooperation partners in other media where it currently has a competency gap. Use the spectrum of brands to generate opportunities for offering additional services over and above the magazine or weekly itself. Last, digital subscription and single-copy sales methods must be investigated, with iPad being a possible solution.

Egmont runs magazine publishing activities in Denmark, Norway, Sweden and Finland. Egmont Magazines employs over 1,000 people and generates revenue of DKK 2 billion. Egmont Magazines ranks among Scandinavia’s leading magazine publishers, producing more than 100 titles in Denmark, Norway, Sweden and Finland. ALT for damerne, Hjemmet, Norsk UkeBlad, Kamille, Her og Nå, Vi Menn, King and Classic Motor are just a few of the myriad titles published by the division.

Egmont Magazines wants to create a range of super brands that can run on all platforms. One model is the English TopGear, which is known in Denmark as a popular TV programme but has also gained success as a magazine on several platforms. It is Britain’s largest motor magazine and is now available in over 20 countries.

In an attempt to develop the digital magazine market, Aller, Bonnier and Egmont have joined forces in the Nordic Digital Magazine Initiative, which has four main goals: 1. Create a reading experience on digital platforms that can maintain and strengthen the distinctive characteristics of the individual magazines and weeklies. 2. Set a standard for digital magazine publishing that underpins a range of platforms and e-readers in order to give readers the best experience. 3. Embark on a dialogue with the advertising market about standards, monitoring methods and innovative advertising solutions. 4. Examine the possibilities for establishing a joint store solution for digital magazines.

After years of decline, the broad, mainstream weeklies are in recession everywhere. Readers still buy magazines but spread their purchases over several different titles, which causes the earnings of old-fashioned broad, mass-selling titles to drop. Since it costs the same to write and layout a magazine – regardless of whether it sells 100,000 copies or 1,000 – this trend can be measured directly on the bottom line. In 1960, 8,400 magazine titles were published in the USA, a figure that has since doubled.

Greater focus on

fewer titles The Danish publishing industry is undergoing major transformation. When the market becomes fully liberalised in January 2011, publishing houses will have to compete more fiercely for bestsellers while also preparing the ground for the digital market. Lindhardt og Ringhof has had success with digital initiatives and discovered a formula that can help create bestsellers. By Jan Sturm

‘L

indhardt og Ringhof is launching several different initiatives in the digital area. For one thing, the app we launched for iPad and iPhone featuring seven Hans Christian Andersen is on the top list of iPad and iPhone app downloads,’ explains managing director Anette Wad. She has just arrived at her office following the monthly morning meeting with the publishing company’s entire staff. In future, their daily work routines will reflect an increasingly digital organisation, with more teams working together company-wide as they strive to attain the goal of delivering a 360-degree service pack to authors.

resources to helping the author not only as regards sales but also during the editing process and the development of merchandise such as digital editions of the book. The book will then get the broadest possible launch on multiple channels simultaneously. Far more publishing company staff will also be involved in each book from the start. As soon as an author is considered for publication, the sales, marketing, press relations and editorial departments will all be on board. ‘In future the main success criteria for publishers will be relations with authors and how to create value for them. Excellent publisherauthor relations are our core competency. Our authors should feel they are under the wing of a publishing company that works as a team at every stage from editing, PR and marketing to sales. The author must encounter a strong team line-up.’

Bestsellers will be more important in future ‘On 1 January, fixed retail prices for books will become obsolete, a change that will put far greater pressure on the saleability of any given title. Previously we were a protected industry, now everything is up for negotiation – prices in particular. Our goal is therefore to publish fewer titles and market them more intensively,’ explains Anette Wad.

New formats ‘As a publisher we must be able to go that extra mile in future. We need to be far more agile and deliver services not currently among our offerings – digital projects, for example. We therefore welcome the establishment of Egmont’s digital centres because they have given us access to competencies other publishers lack,’ Anette Wad concludes. ▀

One way to create national bestsellers could be to enter long-term cooperation agreements with potential bestseller authors for two to three titles, for example. The publisher can then devote all its

The author Michael Katz Krefeld has been launched via new channels and platforms like Facebook, iPhone and iPad apps, online competitions and digital barcodes. His book has also been promoted in TV spots and other advertising.

Michael Katz Krefeld – a new author relationship In early November Lindhardt og Ringhof launched The Protocol by crime writer Michael Katz Krefeld, releasing it for sale in bookstores, supermarkets and webshops. At the same time the launch was supported by TV commercials, notices in weekly magazines and free copies in ALT for damerne. The massive advance publicity about the book and its author is no coincidence. Lindhardt og Ringhof had signed a contract with the author for three titles. This has enabled the publishing company to give the author massive support, with the four departments – editorial, marketing, PR and sales – working in concert to help the book along. A team of 10-plus has worked to bring this particular title into the world. For marketing manager Jacob Harregaard, the entire process was a dream project. ‘A whole four months before the scheduled launch we were in a position to make detailed plans – not only as regards target audience and positioning but also in terms of identifying potential partners,’ he explains. Normally a book’s selling point is its content, but the partnership contract with Katz Krefeldt made it possible to launch a special campaign to sell the author behind the book as well as the book itself. ‘Our authors are brands in themselves – and their target audiences may be quite different from that of their books, a key point when building a long-term relationship with an author. We set fixed milestones that we evaluate regularly, and we have boldly ventured into multiple new media and channels,’ explains Jacob Harregaard.

Three Danish trends Bestsellerism The number of books sold has remained unchanged in recent years but the trend is crystal clear. Bestsellers will become increasingly important for publishing economies because sales will be concentrated on far fewer titles. A greater number of the same type of book is being sold, and a narrower range. Print-on-Demand Digital book printing is now so cheap that any given title can be produced as a small print run. This is undeniably a good business model for publishing companies because the new technology allows them to keep their backlists alive without having to tie up stock in a warehouse. The print-on-demand technology also benefits debut authors because the publisher can produce their works at little risk to its business. Shorter lifetime The lifetime of a book has dropped from two years to six months. This presents a challenge when deciding the size of a print run, because the books have a shorter, more hectic sales span.

Although the market for digital books is growing, it still accounts for only a minimum portion of revenue. In its forecast for developments on the American e-book market, the leading consultancy company PricewaterhouseCoopers estimates that in five years e-book sales will account for less than 10% of the total book market.

Books are hot

in Norway Norway sells more books per inhabitant than any other country in the world. And a broad publication programme is a catchphrase for Cappelen Damm, the Norwegian publishing company that Egmont coowns with Bonnier. By Jan Sturm

hen Bonnier’s Cappelen merged with the Egmontowned publisher Damm in June 2007, publishing director Tom Harald Jenssen stated that the new publishing company would broaden and strengthen the management of authors’ rights. And the company continues to focus on these two objectives. ‘We publish more than 1000 titles a year, for all age groups and in all genres, from fact to fiction. And we will maintain our broad publication programme by keeping the focus on our author relations,’ Tom Harald Jenssen explains. A well-developed network of booksellers, zero VAT, state procurement schemes and fixed book prices help to ensure the breadth of the publication programme. And asked to speak candidly, the publishing director reveals that he does not see the same signs of crisis that publishing companies in other countries do. ‘The system has produced good results but it still needs to be defended and legitimised. We cannot take fixed prices and zero VAT for granted, even though they have helped give Norway a leading position in terms of both reading and book sales,’ explains Tom Harald Jenssen. ‘Fixed prices for bestsellers, for instance, will help us to continue publishing a broad portfolio of titles in the future. Books will experience price pressure no matter what, and margins will decrease even as we are required to offer new books on new platforms. But I foresee no crisis.’

will be based on print media. ‘We predict that in five years, Gutenberg will still be alive and healthy. The bulk of the revenue generated by our publication programme will be based on print products,’ Tom Harald Jenssen says. ‘However, three areas stand out as areas of digital growth. Political focus is on educational materials, an area where digitalisation is a target of investment. So we believe that the digital market will account for a significant portion of revenue from educational products. International digital editions will be able to generate added value for non-fiction books. And finally we have the children’s market. We will see far more digital elements there, in the form of video clips, games and so on. You could say that more digital products will emerge in areas where this makes sense, but for the vast majority of our publications, a digital version adds nothing substantially new to the product.’ Aren’t you afraid that the publishing industry will suffer the same fate as the music business? ‘Music is an international industry where it’s easy to copy individual works. The book industry has a far stronger national focus, and although theoretically you can also copy an e-book, it’s far harder than copying an mp3 file. The book industry is governed by other sorts of relations. Despite the development of new channels and types of books, the author’s daily work is the same. Authors still need to work closely with a book publisher, and they acknowledge the process that takes place during this collaboration. That’s why it’s not unusual for editors to take authors with them when they switch to a different publishing company,’ explains Tom Harald Jenssen, establishing that author-publisher relations are the key to earnings in future. ‘Whether a book is produced the Gutenberg way or as an e-book does not need to challenge our business model.’ ▀

From publisher to cultural enterprise Although books are Cappelen Damm’s core product, the publisher describes itself as a cultural and knowledge enterprise. This is no coincidence. The company’s goal is to be on all platforms customers visit. To this end, the company owns Oslo’s largest bookstore chain, Tanum, and has stakes in webshops and distribution companies. Earlier this year Cappelen Damm launched a website, digitalbok. no, a Norwegian e-book shop. But Tom Harald Jenssen does not hesitate to predict that the primary business for many years to come

‘We publish 1000 titles a year – and we want to continue having a broad publishing programme,’ says Tom Harald Jenssen, publishing director of the Norwegian publisher Cappelen Damm.

Focus on a

good life The Egmont Foundation recently put the final touches on a new strategy for its charitable activities. The aim is to focus efforts on optimising the impact of the Foundations’ donations while also increasing the visibility of the Foundation’s help to improve children’s and young people’s lives. By Nanna Lindhardt

he director of the Egmont Foundation’s Aid and Grant Administration, Henriette Christiansen, is both pleased and proud to have a good framework for the organisation’s activities over the next five years. She calls the strategy an important step in a process that revolves around targeted philanthropic work. ‘We want to focus on how the Foundation’s charitable activities can generate the most benefit. Many children and young people need support. That’s why we need a serious platform, including a transparent set of priorities, in order ensure our support initiatives the right emphasis.’ Impact and visibility Henriette Christiansen describes the philosophy behind the new strategy as a re-focusing of the Foundation’s activities. She stresses that its work is based on the underlying generosity of spirit that has always underpinned the Egmont Foundation’s charitable activities. However, charitable work faces two major challenges today. One is ensuring that the Foundation’s grants generate the greatest possible value, or impact. The other entails making the results of Egmont Foundation grants visible. Henriette Christiansen elaborates: ‘The strategy is intended to ensure that our efforts benefit the target group as best possible. In the future, we will prioritise

fewer but larger projects that are also sustainable in the long term. And we want to do more to communicate our objectives and the impact of our efforts. A sharp profile and tangible results will quite simply make us a more attractive “playmate” – both when it comes to good projects and the right cooperation partners.’ According to Henriette Christiansen higher visibility is not a question of selfpromotion: ‘The Foundation was established to help improve the lives of all children and young people, vulnerable groups especially. Our activities impact the society to which we belong. We therefore want to be open about the results our support generates and, in that connection, the charitable role of the Foundation.’ Caring and learning The strategy springs, of course, from the Egmont Foundation’s Charter. The Foundation has chosen its focus areas in keeping with its tradition for supporting

learning

social and cultural initiatives and educational projects, and underpins the choice of focus areas with analyses of children’s and young people’s needs for support. Henriette Christiansen explains that the Egmont Foundation has chosen to concentrate their charitable effort in two specific areas: ‘From now on, the bulk of our support will go to activities under the heading “Caring”, where we will support projects aimed at equipping young people to better handle life crises. Such as when their lives are overshadowed by illness, death, violence, substance abuse, divorce, or the imprisonment of a parent. Fundamentally, people deprived of a secure, caring childhood have less chance of developing in a positive way and thus of obtaining a good life.’ The Foundation’s support for singleparent families also falls under the heading ‘Caring’. These families lack the basic necessities for daily living, and the Foundation can help with contributions to holidays, Christmas, recreational activities

Caring

The Foundation was established to help improve the lives of all children and young people, vulnerable groups especially. One million for children and young people

on the edge of society

for children, and basic furniture after a stay on a crisis centre. The other focus area is entitled ‘Learning’. Its aim is to stimulate children’s and young people’s desire to learn; for example through the development of new, creative teaching methods, or through initiatives that help young people complete youth training programmes. ‘Learning has a decisive impact on how children can develop in a positive direction. And even if our efforts cannot change the number of children who can read at the end of second grade, we can help stimulate their desire to learn and in that way support society’s efforts to develop the opportunities available to and potential of children and young people,’ says Henriette Christiansen.

We can achieve more together Finally, Henriette Christiansen points out that the strongest possible shoulders must carry future projects the Foundation elects to support: ‘Sustainability is the DNA of our efforts. We have a much better chance of improving children’s lives if we can involve a range of players – both public and private – who join forces. Individual projects in individual schools help pupils on the spot. But our support makes a genuine social impact when the project is repeated in 10 schools or more.’ Consequently, the Egmont Foundation will be engaging in more strategic partnerships along the lines of its new collaboration with the Danish Red Cross Youth (read more below). These

The Egmont Foundation recently entered into a strategic partnership with the Danish Red Cross Youth. The partnership, representing a commitment of EUR 1 million, will help develop seven social projects targeted at children and young people who are at risk of social exclusion. Over the next four years, the Egmont Foundation and the Danish Red Cross Youth will work closely to improve conditions for marginalised children and young people. The seven initiatives focus on marginalised youth in the educational system, in families affected by domestic violence, in institutions and in the grasp of crises that impact their everyday lives. Young volunteers who help and support other children and young people are the cornerstones of this major new campaign. Partnerships like this form part of the Egmont Foundation’s new strategy. They are a means of permanently embedding and thus ensuring sustainability securing the greatest impact of the support.

partnerships will drive long-term projects that benefit children and young people. In brief, the Egmont Foundation’s new charitable strategy will help attain the best possible value from the money and expertise that the Foundation contributes – for the benefit of children and young people. Henriette Christiansen is greatly looking

forward to telling Egmont’s employees about the life-affirming results of the work, because, as she closes by saying: ‘Each and every one of you contributes tangibly to our charitable work. The profits – which you are instrumental in generating – finance activities that help give the next generation a better life.’ ▀

Facts • • • • • •

The Egmont Foundation was established in 1920 and is the parent entity of the Egmont Group Media activities are run under the name Egmont while the Egmont Foundation also supports charitable projects that benefit children and young people The target group consists of all children (0-12 years) and young people (12-30 years), but special priority is given to vulnerable children and young people The support goes primarily to activities in Denmark, but also to a few projects in Norway Through their work, every full-time employee of Egmont contributes about EUR 885 to the charitable activities In 2009 the Foundation distributed grants amounting to approx. EUR 6 million.

Where will your business

VOXPOP

be in five years? My business area will be more mobile in five years. Tablets, mobile phones and net accessibility will be everywhere. Books, magazines, entertainment, news and so on will be available where ever there are people – on demand.

We will be selling at least as many print magazines, but if we’re smart we’ll also be running other activities – digital projects, events, merchandise sales and so on – because our brand is incredibly strong.

Pål Nisja-Wilhelmsen Director of business development, Mediehuset Nettavisen

Mads Lange, Editor-in-chief, Euroman

In five years people will still have the same need for information and entertainment. Print media and books will still be important media for that content, but digital media will take over dramatically. Ivana Krnic, Marketing manager, Croatia, Serbia, Slovenia, Bosnia & Herzegovina, Montenegro

Tablets, bookazines, blogazines, digital advertisement solutions… Content will be the ruler of this kingdom. We have the best kids and teens knowhow. Our content and products will be in readers’ pockets, and their money will be in ours.

In five years schools will have invested so heavily in computers that all students will have easy access to IT. So we’ll be selling fewer books and more digital educational materials – e-books, apps and online teaching portals. Steen Thomasen, Publishing head at Alinea, with responsibility for Danish and cultural subjects

Özgür Atanur, Publishing director, Turkey

This is an area of growth, but also one of upheaval and change. Getting closer to customers presents a huge challenge, as does talking to them rather than at them. Asbjørn Poulsen, Digital marketing manager

In five years we will have an ad portfolio with more digital products from both our own and third-party business. We might slowly develop into an independent media sales agency rather than a print ad department.

In five years Tanum will continue to be one of Norway’s best book stores with a broad selection of titles and competent employees with a high degree of competence. The e-book has been established as an important book format. Tanum has followers in social media with bloggers and chatters in close dialogue, and we use social and online media to announce arrangements and happenings.. Anne-Regine Bakstad, Managing director, Tanum

Ingo Höhn, media sales manager in Germany

Business development focuses on profit and activities that generate growth. In five years we will be working on ambitious projects that will intensify our direct contact with and sales to consumers. Vibeke Nylykke, Executive assistant