March 2014 (English)

STORIES MARCH 2014

EGMONT PUBLISHING

A STRONG DIVISION THE OLYMPICS

TV 2 IN SOCHI PLAYSTATION 4

BEHIND THE SCENES

BIRTHDAY PORTRAIT

STEFFEN KRAGH

Content

We bring stories to life

4 2013 snapshot

This year Egmont has once again achieved impressive results despite a media industry in transition.

However, Egmont’s products remain popular – whether magazines, books, films or TV – and over half of our revenue is now generated by screen-based products. TV 2 Norway’s coverage of the Winter Olympic Games recently broke viewing records, ‘The Hunt’ was nominated for an Oscar, and our magazines are quoted in other media. Good stories are the common denominator.

We bring stories to life. We have succeeded so well that Egmont ranks among the top media groups in the Nordic region and is a leading children’s publisher in such countries as Germany, Poland and Russia. And who sells the most comics in China?

We do.

I recently took up my position as new Vice President of Corporate Communications. I have worked in the media industry for many years but frankly I was never quite aware of the extensive scope of Egmont and the strong values. We are the good guys.

I’m writing these words in Gutenberghus – named by Egmont’s founder, Egmont Harald Petersen - after the inventor of the printing press, Johann Gutenberg. Egmont stands for strong publicist values and good stories. Every year without fail we use our profits to develop and invest in media and to help children and young people. Last year Egmont made donations amounting to more than EUR 10 million.

At Corporate Communications we are proud to be part of this story, and we want more people to know. This is the focus of our work in the time ahead. We hope that you, too, will help spread the story of Egmont. In this issue we asked the Norwegian journalist Kjetil Østli to interview Steffen Kragh who is celebrating his 50-year-old birthday in April. No strings attached, it became what we call a good story.

6 Highlights – Unforgettable moments 8 The Egmont Foundation also grants support in Norway 9 Learn for life 10 Five key questions about Egmont Publishing 12 Learnings in Digital 14 An International journey 16 Share and share alike 18 Onwards and upwards 20 What’s the story, Steffen?

26 'Bedraget' – the story of Denmark’s biggest swindler 28 Cliff and the digital potential 30 TV 2’s Olympic baptism of fire 34 Nordisk Film Interactive – a winning team 38 A bumper film year

Enjoy reading STORIES!

40 The price of an Egmont experience

Line Aarsland Corporate Communications

EDITOR-IN-CHIEF Line Aarsland // EDITORIAL TEAM Maria Alsted Junget and Niels Almer stories@egmont.com WRITERS, Egmont Louise Bangslund, Reeta Bhatiani, Katrine Bach Habersaat, Maria Alsted Junget, Mads Moltsen, Katrine Sæverud, Nanna Mosegaard and Kjetil Østli // LAYOUT O&O // PHOTOS Steen Brogaard, Kristian Septimus Krogh, Trygve Indrelid, Morten Skovgaard, Jonas Bie, Marie Louise Munkegaard, Egil Nordlien, Jacqueline Fluri, Alex Rumford, Ole Haupt, Christian Als, Jan-Petter Dahl and Getty Images/All Over Press PRINTER Rosendahls Bogtrykkeri A/S // PRINT RUN 2.000 copies // PUBLICATION DATE 31 March 2014

2

EGMONT STORIES MARCH 2014

Koncernkommunikation Vognmagergade 11 DK -1148 København K Telefon +45 33 30 55 50

12

10

DIGITALLEARNINGS

30

TV 2 IN SOCHI

THE OLYMPICS

PUBLISHING 6

2013 UNFORGETTABLE MOMENTS 34

PLAYSTATION 4 BEHIND THE SCENES

3

2013

SNAPSHOT EGMONT BOOKS % of Egmont’s revenue: Revenue (in mio. EUR): Operating profit (EBIT in mio. EUR): Number of employees:

EGMONT NORDISK FILM % of Egmont’s revenue:

23

Revenue (in mio. EUR):

370

Operating profit (EBIT in mio. EUR): Number of employees:

4

EGMONT STORIES MARCH 2014

30 1.803

8 137 8 1.020

EGMONT KEY FIGURES

2013

2012

Revenue (in mio. EUR):

1.621

1.617

Profit before interest, depreciation and amortisation (EBITDA in mio. EUR):

191

187

Operating profit (EBIT in mio. EUR):

106

106

Equity (in mio. EUR):

665

676

10

8

Number of companies:

140

135

Number of employees:

6.600

6.400

Charitable donations (in mio. EUR):

TV 2 % of Egmont’s revenue:

28

Revenue (in mio. EUR):

446

Operating profit (EBIT in mio. EUR): Number of employees:

33 1.063

EGMONT PUBLISHING % of Egmont’s revenue:

41

Revenue (in mio. EUR):

660

Operating profit (EBIT in mio. EUR): Number of employees:

40 2.578

5

HIGHLIGHTS April

January

March

Focus on children and youth affected by death and illness The Egmont Foundation teams up with Monday Morning, a leading independent Scandinavian think tank, to conduct an extensive analysis of children and young people who have experienced death and illness first-hand. The Foundation decided to invest more than EUR 8 million in projects in the area.

Egmont commits itself to social responsibility In January Egmont signs the UN Global Compact – the world’s largest corporate social responsibility (CSR) initiative. This makes Egmont an active participant in the fight to eliminate the threats of pollution, corruption and human rights breaches faced by society.

Nordisk Film acquires Oslo Kino The acquisition of Oslo Kino enables Nordisk Film to generate growth in its cinema operations and increase its competitive ability in both Denmark and Norway. In 2013 Oslo Kino accounted for 11% of Nordisk Film’s total revenue.

Interactive returns Nordisk Film Interactive has rebounded, stronger than ever, and is ready to handle Nordic sales of the new PS4 console, launched in autumn 2013.

January

6

February

EGMONT STORIES MARCH 2014

Record week for TV 2 Norway In May the final of TV 2 Norway’s talent show ‘Idol’ sets an all-time ratings record. The TV-company also bags seven prizes at the Gullruten 2013 TV Award Show. All in all a dream week for TV 2 Norway!

March

April

Egmont Foundation organises its first Learning Camp for children in care The Egmont Foundation holds its first Learning Camp in its signature project for children placed outside the home. The children raise their reading, writing and mathematics skills from below to above the national average.

May

June

UNFORGETTABLE MOMENTS September

July

October

Lindhardt og Ringhof tackles e-book sales with new streaming service The streaming services we use for film and music have now come to books in the form of an app called Mofibo. Users pay a fixed monthly fee for unlimited access to thousands of e-books. Lindhardt og Ringhof publishes many of the titles offered.

Overwhelming success for German Asterix comic In October Egmont Ehapa in Berlin publishes the 35th Asterix Album. More than 1 million copies and 12,000 digital versions are sold in the first ten weeks.

Summer success on the app front Over the summer Egmont Publishing releases successful apps featuring such characters as Pixeline, Barbie, My Little Pony, Transformers, Bamse and Winnie-the-Pooh. Localised versions of the apps are published in selected markets the world over.

July

New, strong publishing division at Egmont In November Egmont unifies the successful divisions Egmont Kids Media and Egmont Magazines into one new unit, Egmont Publishing, creating a single strong international publisher with huge development potential.

‘The Hunt’ is nominated for an Oscar The committee tasked with selecting a Danish film for an Oscar nomination in the Foreign Language Film category unanimously recommends the Nordisk Film production ‘The Hunt’.

August

September

October

Lindhardt og Ringhof top bestseller lists The year’s Christmas gift hit is Lindhardt og Ringhof’s publication ‘Bedraget – sagen om Nordisk Fjer’, whose revelations about one of Denmark’s biggest business scandals take the title to the top of the December bestseller lists.

November

December

7

THE EGMONT FOUNDATION

ALSO GRANTS SUPPORT IN NORWAY Disadvantaged children and youth in Norway can now also benefit from Egmont Foundation funds to take part in social activities alongside their peers.

Socially disadvantaged children in Norway face similar challenges to those that Danish children experience, but their opportunities for getting help from foundations are slim. This is one reason that the Egmont Foundation is now also donating funds in Norway, particularly to help children whose daily lives are affected by poverty, illness or death.

By Katrine Bach Habersaat

In recent years, the largest number of Egmont employees resides in Norway. In the same period the Egmont Foundation has expanded its support activities to include children and young people in Norway as well as Denmark – in areas where the need is greatest and where the two countries can learn from each other.

One such area is initiatives for children and youth whose lives are affected by serious illness and death. The Egmont Foundation has donated almost EUR 2,5 million to the Centre for Crisis Psychology in Bergen. Among other things, the money will help provide counselling and support to the survivors of the Oslo and Utøya massacres in 2011 and their relatives.

THE EGMONT FOUNDATION’S DONATIONS IN NORWAY Since 2009 the Egmont Foundation has donated EUR 2,7 million to: • The Centre for Crisis Psychology (bereavement counselling and support) • Forandringsfabrikken (new learning methods and approaches to involving schoolchildren) • The Norwegian Women's Public Health Association (assistance for disadvantaged and needy children and youth)

Child poverty The Egmont Foundation recently decided to make the same type of donation in Norway as it has already granted in Denmark for almost a century: direct help for children and youth suffering from the effects of poverty and crisis.

This support gives children opportunities to take part in recreational activities, for example.

“We are extending our reach because the need is great. There are groups of children in both Denmark and Norway who live in poverty and are therefore socially excluded. They cannot join in the same activities as all other children.

At the same time poverty is often but one element of a difficult social situation that makes

a child vulnerable in several respects,” explains programme manager, Steffen Raun Fjordside.

The assistance from the Egmont Foundation is distributed through social partner organisations in close contact with socially disadvantaged children and young people. These partners ensure that help is provided in tandem with long-term efforts to support the child and its family. In Norway the Egmont Foundation has joined forces with the Norwegian Women's Public Health Association, whose activities include running 15 counselling centres for children of substance abusers or prisoners.

WHAT CHARITABLE WORK DOES THE EGMONT FOUNDATION DO? The Egmont Foundation is a commercial foundation. The Foundation donates a portion of the profits generated by its media companies to charitable programmes for children and young people, and has been doing so at the express wish of its founder, Egmont Harald Petersen, since 1920, when the Foundation was established. Since 1993 the

8

EGMONT STORIES MARCH 2014

Nordisk Film Foundation has also been part of the Foundation, and its funds go towards nurturing creative talent and thus promoting excellence in filmmaking. In 2014 the Egmont Foundation will donate funds totalling EUR 10 mio.

WOULD YOU LIKE TO BE A MENTOR FOR A ‘LEARNING KID’?

All ‘Learning Kids’ are allocated an unpaid mentor to help them with their schoolwork.

The mentor and ‘Learning Kid’ meet weekly for up to six years. Read more in the leaflet ‘About being a mentor’ (in Danish only).

Jasmin (centre) is a Learning Kid in the Egmont Foundation’s signature project, Learning for Life, and she thinks it is ‘absolutely fantastic’.

‘BEING HERE IS A MIRACLE’

These are words said by Jasmin, one of the many children who live in a children’s home or with a foster family. She is also a ‘Learning Kid’ in Learn for Life, the Egmont Foundation’s new signature project which provides academic support to children who are placed in care.

By Katrine Bach Habersaat Jasmin used to find school difficult, maths especially. But life has picked up considerably since she became one of the pioneer ‘Learning Kids’ in the Egmont Foundation’s new signature project, Learn for Life. Jasmin is not the only child finding schoolwork easier; the whole group of ‘Learning Kids’ is now scoring above instead of below the national average in the subjects of reading, writing and arithmetic.

This project is sorely needed because children in care perform much lower academically than other children. Nonetheless, analyses show that the adult caregivers of children placed outside the home often give insufficient attention to the children’s learning and schooling.

“It’s a big problem. Learning is particularly important for children in care, because education is the master key to freeing them from a negative social legacy. Inadequate

schooling can also increase the risk of crime and substance abuse later in life,” says Henriette Christiansen, Director of the Egmont Foundation’s Aid and Grants Administration.

More self-confidence and new friends EThe Egmont Foundation is investing more than EUR 5 million in Learn for Life in the coming years, and the first year’s results are promising. Not only are the children doing better academically, they are also becoming more confident, making new friends and enjoying their everyday lives more. As Jasmin says: “I’ve learnt so much in just 14 days; I never dreamed it was possible! I would definitely recommend that other children go to a Learning Camp, because you learn something, you get more self-confidence, and it’s fun. It’s

LEVEL OF EDUCATIONAL ACHIEVEMENT BY CHILDREN PLACED OUTSIDE THE HOME IN DENMARK • 89% complete lower secondary school – the figure for other children is 97%.

• 40% complete a youth education programme – the figure for other youth is 79%.

• 13% complete a course of higher education – the figure for other children is 36%. (analysis by Ramboll)

absolutely fantastic. Being here is a miracle.”

Watch two Learning Camp videos and listen to two Learning Kids, Jasmin and Niclas, tell their stories at on Insight under ‘My Company’ and ‘Charitable Activities’.

9

1. The announcement that Egmont Kids Media and Egmont Magazines were to be unified came over 100 days ago in November 2013. What has happened in the meantime?

A great deal has happened, and I have no doubts that it was the right decision for both divisions. We supplement each other well, adding to each other’s competencies in various areas. This validates my feeling that we have an amazing division and all the ingredients for success if we put our skills to good use. I have travelled extensively in the past few months and had the pleasure of visiting a number of our offices around the world. I knew little about the Kids part of Egmont Publishing, so I needed to make the necessary ties and get some insight into it. We in the new management team have spent some time identifying the biggest potentials of the unification and planning a future that lets us create a division based on collective strengths as well as on great creativity and development drive.

4. How did Egmont Publishing fare in 2013?

We have a healthy business that we should proud of, and we are doing well compared with our competitors. The total financial results for 2013 will be somewhat below budget, but should be seen in the light of the various extra costs incurred from the unification. However, in 2013 we once again faced challenges in the Nordic part of our children’s activities, an area we are already working intensively to improve.

3. What specific impact will the unification have?

Generally, the unification strengthens our product portfolio and market positions, but more specifically, the greatest impact will probably be felt in the Nordic countries, because that is where we have implemented a physical unification. Staff in the Nordic region will now meet lots of new colleagues and work together far more closely than in the past. The unification has brought changes to the management groups in the three Nordic countries, where a great deal of energy is being put into creating sales synergies between the businesses, for example, in the important area of subscriptions, which is critical to our success in Scandinavia.

Although the impact of the unification is less tangible elsewhere in the world, major changes not directly related to Egmont Publishing’s establishment have occurred in the UK and Germany.

2. What are the biggest potentials of the unification?

Egmont Publishing has a formidable product portfolio with broad consumer appeal – from magazines and online services offering guidance for prospective parents through a wealth of children’s and youth media to an array of products and services targeting various segments of adult life – this is pretty unique! I don’t actually know how many products we have, but they run into several hundred! We have some incredibly strong brands, which, beyond their print existence, often already have either an actual or a potential presence in the digital world as well as various brand-related businesses. We have to manage each brand individually, but the skills needed to exploit their potential are often the same, and that’s where we can all learn from each other.

Knowing our customers and target groups is a must, as is having a razor-keen ability to identify and offer the right products at exactly the right time. Naturally, consolidating the businesses also generates a range of inherent potentials, a development already reflected in how our management structures have been successfully harmonised.

10

EGMONT STORIES MARCH 2014

5. What are the focus areas for 2014?

In the coming year we will focus chiefly on three main areas. We must generate new business, especially in the digital area, concentrating on traffic-based services and developing apps as well as acquiring new interesting digital businesses, e-commerce enterprises, for example. In addition, we must secure and extend our rights to children’s media, so that we can continue to be licensors’ preferred partner in both print and digital media. We must maintain and consolidate our core business. One way to do this is to generate synergies in each of the Nordic countries where two units have become one. Lastly, we must work more closely within Egmont Publishing on dealing with commercial issues and systems alike.

Back-office functions, for example, offer a source of savings, particularly through joint IT, print and promotional gift procurement. We are also in the process of establishing a joint print setup in the Nordic region that will save us a fortune in future. Our vision is nothing less than to be ‘a first choice international publishing house’ – a goal we will achieve through our unique content, our strong brands and not least the great creativity and determination of our skilled and dedicated staff.

FACTS ABOUT TORSTEN • 2013-, President, Egmont Publishing • 2010-2013, Executive Vice President, Egmont, Egmont Magazines • 2008-2010, Executive Vice President, JP/ Politikens Hus • Married to Sanne with three children: Ludvig (12), Elvira (8), Herbert (6)

KEY QUESTIONS FOR TORSTEN BJERRE RASMUSSEN, EGMONT PUBLISHING Since the unification of Egmont Magazines and Egmont Kids Media, the new division, Egmont Publishing, has focused on building a strong growth platform. We talked to Torsten Bjerre Rasmussen, who now heads up the division.

By Maria Alsted Junget

11

LEARNINGS

IN DIGITAL ‘Trial and error’ is the living mantra in Egmont Publishing Digital, the department focusing on apps for kids. In 2013 they made significant learnings which will steer future digital product innovation.

By Maria Alsted Junget

Adapting traditional media to the new consumption reality is a big focus area for Egmont Publishing Digital and it has taken some time to find the right approach. Head of the Digital Project Office, Maz Spork elaborates: “We started off by assuming that the offline license categories – books and magazines – would travel to the screen, but we have come to the realization that we have to be much broader creatively in how we wrap and present the content in new ways in order to attract the kids. We are constantly challenging our licensors to think less about traditional media and more about what the consumer needs, because the kids don't care about license categories."

Finding the right business model Price setting was a big learning in 2013 as well as finding the right business model.

“In 2011 we started off by making our apps freemium-based (free of charge) because we saw high downloading numbers as a key to creating the destinations around content that drives retention and ultimately revenue. We now know that this is a recipe that works only when we have access to a broad catalogue of cross-media content: Global entertainment brands are widespread, and specific destinations on the screens are particularly challenging to defend. So, even though competition in our market is based on cost, we find that we can charge a premium price for a premium product”, Maz says.

12

EGMONT STORIES MARCH 2014

Valuable consumer insights Learning about how the minds of parents and children work is extremely valuable.

“Getting to know the consumers’ reading, learning, and playing habits is an important focus for Egmont Publishing Digital,” Maz says and continues. “We have spent a lot of time digging into and getting to know what triggers children and teenagers to consume digital products. The insights help us adapt our offerings and we have done so in the course of 2013. It's all about the needs and wants of the kids and their parents, and working backwards from that,” Maz says.

Egmont Publishing Digital has had a lot of success exploring the Disney license and managed to push and challenge Disney in order to create the necessary scale on the market. The ‘Donald Duck+’ app is a good example of this. The app displays content on demand – similar to Spotify, but with comics. “This product is very innovative and the consumers have embraced the product,” Maz explains.

Apart from exploiting Egmont’s Disney rights, 2014 will be even more about focusing on developing own IP and strengthening the digital portfolio with quality products. The recent unification of Kids Media and Magazines will help strengthen our digital development power.

“We can learn a lot from each other to become an even stronger player on the market,” says Digital Director of Egmont Publishing, Peter Schrøder.

At the back from left to right: Babar Baig, Kristian Knak In the middle from left to right: Sturla Frøyland, Stefan Krogh-Hansen, Maz Spork, Peter Lund-Sørensen At the front from left to right: Marie Oosterbaan, Bjørn Belardo, Alice Kaiser, Michael König, Jonas Sonne

Fra lokal forankring til krydsordsspecialist I starten tager de lokale projektledere sig af bladproduktionen i deres eget lokalområde. Fremtidens målsætning er dog, at NSC i endnu højere grad skal arbejde på tværs. Eksempelvis vil én projektleder specialisere sig inden for alle nordiske bladproduktioner, der har fælles karakteristika som eksempelvis højprofilerede magasiner eller krydsordsmagasiner.

2013 FACTS No. of live apps: 40 products across 10 IP's and 30 territories No of downloads: 1.2 mio Turnover: 1 million euros

13

AN INTERNATIONAL JOURNEY Rob McMenemy celebrates 20 years with Egmont this year. He talks to Stories magazine about his journey to become CEO of the International division of Egmont Publishing, and why publishing is an exciting business to be in right now.

By Reeta Bhatiani

There’s a thoughtful pause when I ask Rob McMenemy the first of many questions about his career at Egmont. “The best piece of advice I’ve ever been given?” he laughs, “that there are many roads to Rome.”

It is advice that has stood him in good stead since he began his media career in TV, radio and national newspapers in the UK, all industries that have undergone huge change in recent years. Back then, with a background in marketing and a Sloan Fellowship from the London Business School under his belt he was looking for a new challenge.

“Egmont appeared to be a business that wanted to grow and was willing to invest to achieve this, not just in products and services, but also in people – I liked that,” he recalls.

At Egmont, he started as a publisher of kids magazines, moving on to become Managing Director of Egmont in the UK responsible for books and magazines and later adding other English and German speaking territories to his role.

Now, as CEO of International he heads up all the activities of Egmont Publishing outside the Nordic markets, which include 19 countries in five continents and some of the world’s most famous and best-loved children’s characters, authors, brands, magazines and stories.

How much has the publishing industry changed since you first started at Egmont?

“The principles of publishing – quality content delivered in an appropriate format for a clearly defined audience – haven’t altered. It’s the techniques and methods for achieving these that have changed immeasurably, driven largely by digital technology. Probably the single biggest change though, is in the ‘channels of distribution’. Before, you would pick up your newspaper or magazine from a news kiosk or corner shop and now you’re much more likely to pick it up with your food shopping in the supermarket. At the

14

EGMONT STORIES MARCH 2014

FACTS ABOUT ROB • 2013 - CEO, International • 2010 - Senior VP, Egmont English Language & Central Europe • 2004-2010 - SVP & UK MD, Egmont UK Lives in Stamford, Cambridgeshire with family and has a passion for architecture and motorbikes.

same time the local bookshop is becoming scarcer and it’s the rise of the internet retailers, like Amazon, that is shaping our industry.

One thing hasn’t changed - people still love stories.”

You’ve been head of International since November.

What are your first impressions?

“No matter where you go you will find a passion for our products, a strong desire to win and deliver results. Not only that, but it is all done with professionalism, integrity and a concern for the impact of our actions on the world around us. I saw that spirit in action when I met the Egmont Poland team recently and they showed me some work they’d been doing with Hasbro producing My Little Pony figurines. And I know it exists all over International. ” International is a highly diverse business. What do you think are our common strengths and what are the challenges we have in common?

“When you have 1,000 staff in 19 countries it can be very easy to focus on our differences, but I think our diversity is our greatest strength. We have strong, market-leading positions and great content and rights but we

also have different skills and ideas in many different places to serve the needs of our customers, partners and consumers. If you’re looking for ideas or creative solutions you can look across the whole of International for support.

Many of us are facing the same challenges too, with fragmentation and competition in traditional publishing markets and, with our traditional channels of distribution under pressure, we’re all looking for new ways to reach our consumers.

And it’s not just about challenges, there are many opportunities in working more closely together, a wonderful book format in one place, efficient print co-ordination in another or brilliant magazine content in another. The list is endless.”

What is the new International management team working on at the moment?

“At the heart of International are three key elements to ensure our success: great

content and rights, operational efficiency and teamwork. We’re working on how we can strengthen these, do them more effectively and profitably and learn from the past. One of our first tasks has been to agree on a specification for ‘global brand managers’ and we will test this with two brands in the coming months. We are also planning the first International Conference in June to address these issues.”

ESTLAND LETLAND LITHAUEN

It feels as if publishing is under pressure right now. Is it still a strong business to be in?

“Publishing, like any other industry, is facing change in the way it does business, but it remains a rewarding and commercially attractive business to be in. Not only does it deliver consistent profitable results, it also positively forms and shapes the lives of every child and adult it touches. There aren’t many industries whose products bring such unbridled joy.”

RUSLAND

UK POLEN

TYSKLAND USA KINA KROATIEN

UNGARN

TJEKKIET

TYRKIET

UNGARN

RUMÆNIEN

BULGARIEN

THAILAND UKRAINE

What are you most excited about in the year ahead?

AUSTRALIEN

“I’m looking forward to working with my Egmont Publishing colleagues, visiting parts of Egmont that I don’t know well, getting to know new businesses and hearing my colleagues’ views. We’ll be facing new challenges for sure, but we will certainly be celebrating our many successes too.

SYDAFRIKA

From left: Allan Hurcombe, Klaus-Thorsten Firnig, Cally Poplak, Sten Jørgensen, Kerrie Culff, Rob McMenemy and Jacek Beldowski

THE INTERNATIONAL MANAGEMENT TEAM The new International management team is a busy group whose work spans 19 countries across the globe. Stories magazine asked them what they’re most looking forward to in the year ahead.

Sten Jorgensen, VP Global License Acquisition “In close collaboration with Mattel we have started working on the launch of magazines and activity and novelty books across our international markets with the first products coming out in Q4 this year.

Our opportunities are increasingly global and our network of licensing scouts is a unique strength for Egmont which is really making licensors sit up and take notice.”

Alan Hurcombe, CFO, International & UK “I’m looking forward to developing our first International plans for 2015 and working closely

with the rest of Egmont Publishing as part of the unification team, to find new ways to strengthen our business. We’re already looking at synergies.”

Kerrie Culff, Managing Director, Sourcing “Working with the new International Management Team, bringing stories to life through great content and cover mounts, and also delivering our services to a whole new group of customers outside of Egmont. It’s going to be an exciting year."

Klaus-Thorsten Firnig, Managing Director, Egmont Germany “I'm really looking forward to our magazine business in Berlin and our book business in Cologne working more closely together. We are looking at opportunities to share content and to sell it in new sales channels.”

Cally Poplak, Managing Director, Egmont UK “I think we’re going to have a lot to celebrate amongst others a newly merged Books business that shows off our ability to channel the creative vision of our brand owners and authors. I also look forward to identifying synergies between the UK and the rest of International.”

Jacek Beldowski, SVP & Managing Director, Central & Eastern Europe “We will be working on unleashing opportunities in product development that can be used across Central Eastern Europe and globally. We have a strong line-up of brands for 2014 and we will be maximizing their potential in all our business segments, formats and titles.”

15

SHARE AND SHARE

ALIKE

Egmont Publishing can save money and boost quality by sharing editorial content across country borders.

By Louise Bangslund

Twenty-five different photos of strawberry tarts. That was what Egmont Publishing received after asking its magazine editors-inchief to send in the pictures they had used in 2013 to illustrate strawberry tart recipes. It also marked the start of a Nordic project focusing on promoting greater cross-border contentsharing among the editorial units.

“The way publishing works today is that all our weekly and monthly magazines are produced by local editorial units – which is fine. But, having observed that a lot of parallel content is produced, we believe there is potential in sharing content. We can reduce costs because we only have to produce the content once,” explains Mads Eggers, Executive Assistant at Egmont Publishing. He is also spearheading a project group to realise the content-sharing concept. ”Sharing is saving” Indeed, cost saving is one of the colossal advantages of a stronger focus on shared content. The former Egmont Magazines division calculated that the magazines’ costs of producing editorial content ran into roughly half a billion kroner a year.

“Saving even 1% of that figure amounts to a lot of money. And in a market with falling circulation figures, it’s essential that we look at areas where we can shave costs. This is a good method,” says Mads Eggers, explaining that the goal is to make 5% of Egmont Publishing’s editorial content shared. This means either that 5% of the pages in all titles must be bought from another monthly or weekly magazine or that a magazine must have sold 5% of the editorial pages it has produced.

16

EGMONT STORIES MARCH 2014

“From an economic perspective, it makes no difference whether a magazine buys or sells – sharing is what matters,” he points out.

However, economic benefits are not the only advantage, according to Marianne Gram, editor-in-chief of Hjemmet and a member of the project group. She has already sold several recipes to the weekly’s Nordic sister publications.

“We will get to know our Swedish and Norwegian colleagues better, which means we will exchange far more ideas and experience. I see that as a truly positive spin-off,” she says.

Willingness is a must A few practical and rights-related issues have to be resolved before the content-sharing initiative can flourish, because the technical solution is not yet in place and magazines have not traditionally necessarily held the full rights to content purchased out-of-house.

Furthermore, there are some important editorial considerations that must be taken into account, Mads Eggers acknowledges.

“Each magazine has an editorial profile that it must uphold – that’s what readers buy.

And some content is so specifically local that it cannot be used in other magazines,” he explains.

However, Mads Eggers believes that getting the editors on board is the key to the project’s success.

“They are the people who will have to make daily calls to colleagues in Norway, Sweden or Denmark to find out whether they have any useful material or to ask them to search the databases. That’s why it’s so important that they think it’s a good idea too.”

CONTENT-SHARING IN ITS INFANCY

MANY A MICKLE MAKES A MUCKLE In the future all content-sharing will be done through the editorial system Pageplanner, expected to be rolled out in the course of 2014.

The first steps towards content-sharing have already been taken, as borne out by a team effort between Euroman, King and Mann.

Euroman sells between six and eight fashion features to King and Mann a year: “Each feature only makes a modest profit, but a profit nonetheless. And on an annual basis, every little bit helps us stretch the budget,” says Frederik Lentz Andersen, fashion editor at Euroman.

GOOD EXPERIENCES ONLY The Fit Living and BoligLiv magazines have sold food, health and beauty articles to Norwegian and Danish colleagues – including to Hendes Verden, Maison Mat & Vin, Boligdrøm, Rom123 – and made agreements to share the costs of producing content rather than selling it afterwards.

“Shared content is interesting because you help your Nordic colleagues by giving them good, attractively priced articles while generating income for your own publication,” says the editor-in-chief of Fit Living and BoligLiv, Lone Helleskov.

IMPRESSIVE RESULTS Hendes Verden has exchanged knitting patterns with Nordic colleagues and is very satisfied with the results: “At Hendes Verden we always takes our own photos of our knitted patterns, both those we have others knit for us and those we get from the yarn companies. We’re delighted that our Norwegian colleagues are thrilled with these photos. Yes, sending copy and illustrations back and forth is a bit clumsy, but it’s very satisfying once you see the beautiful layouts in the supplement to Norsk Ukeblad issue no. 3 2014. So we’re game to take this type of teamwork further,” says editor-in-chief at Hendes Verden, Iben Nielsen.

QUALITY BOOST Knut Moeng, an editor at Mann who buys fashion features from both Euroman and King, also considers the joint efforts profitable: “Here we have a scenario that offers lower costs and higher quality journalism at the same time. King and Euroman have capable fashion editors who can help lift the content at MANN too. I hope most fashion features will evolve through cross-border collaboration.”

He has no concrete figures for how much Mann has saved, but is in no doubt: “There’s plenty to be gained, especially in terms of enhancing the quality of the magazine.”

17

From the bottom left (clockwise) Henrik Løvstrøm, Magazine Sales Director, Christian Hougaard, Telemarketing, Anders Sørensen, Subscription Manager, Martin Damgaard, Student assistant Mikala Bagger Riis, Student assistant, Peter Nørgaard, Key Account Manager Retail, Janne Andersen, Marketing Manager, Marie Lützhøft Lykke, CRM Manager (absent)

18

EGMONT STORIES MARCH 2014

ONWARDS AND UPWARDS!

Declining magazine sales and a challenging market have redoubled the focus on magazine sales in Denmark. Backed by a strong team and fuelled by high ambitions, Henrik Løvstrøm, Magazine Sales Director, is now ready to move full steam ahead.

By Maria Alsted Junget For a great many years our products have more or less sold themselves in retail outlets. Those days are gone. Magazine Sales Director Henrik Løvstrøm explains: “Egmont delivers the market’s best magazines and weeklies and has the strongest brands, qualities that are attractive for our customers – distributors. In recent years we have been particularly challenged by our falling sales of weeklies, a decline that affects both us and the distributors. To bend the curve, we have to work even more closely with the retail link, to which end we have set up a whole new magazine sales department in Denmark to focus on this and other tasks.”

In November Kids Media and Magazines were brought together to form Egmont Publishing, and the new magazine sales department consists equally of staff from the magazines and children’s business arms.

“We’ve brought together the best of the former divisions to create a ‘dream team’ with expertise in subscriptions, Customer Relationship Management, marketing and newsstand sales.

At the same time our portfolio has broadened hugely, and we stand significantly stronger now that we can bring Donald Duck, Hjemmet and Euroman to the negotiating table. We noted an instant effect from the consolidation from day one,” Henrik says.

One of Egmont Publishing’s goals is to exploit the new synergies and thus emerge stronger from the subscription area in 2014.

Henrik explains: “Customer service currently has a heavy load, answering far too many calls, so we need to improve our online subscription system, which is supposed to make self-service on

”We have a strong, highly focused department that, together with the editorial panels, makes enormous efforts every day to achieve our goals” the internet easier for customers – this is a frequently expressed wish and they expect it. ‘Self-service’ is a key word for us in our subscription system work.”

Although Egmont is eminently adept at attracting new customers, retaining them is harder.

“We haven’t done so well at holding on to customers, so now we’re putting conscious efforts into developing a loyalty programme intended to establish closer dialogue with subscribers in the hope that they will stay with us longer. At same time we’re inviting them to take advantage of the special offers available at our webshop (www.egmontfordel.dk), an opportunity that we plan to follow up on in spring with a range of events and activities,” says Henrik.

On the newsstand sales side we have to curb the negative trend or, better yet, reverse it completely.

“This will be a tough nut to crack, but if we don’t even try, nothing will happen for sure.

We have to improve our cooperation with our distributors and not shy from making the demands necessary to get our products the exposure they deserve,” Henrik asserts.

Apart from retaining subscribers and reversing the downwards trend in newsstand sales, the goal for the coming year is simple: Sell more magazines.

“We have a strong, highly focused department that, together with the editorial panels, makes enormous efforts every day to achieve our goals. I believe the decline in the market for weeklies will slow in 2014, and I’m firmly convinced that we can create growth in our other magazines. I also expect to see an increase in the numbers of subscribers to both weekly and monthly magazines. With our highly competent and committed staff, I don’t see how we can fail,” Henrik predicts.

MARKET FACTS - DENMARK • One million weeklies are sold every week.

• Egmont holds a market share of 27% • Newsstand sales account for approx.

80% of total magazine revenue • Egmont Publishing publishes five weekly magazines.

• Egmont Publishing publishes 18 titles sold both by subscription and on newsstands.

19

WHAT'S THE STORY STEFFEN? Steffen Kragh tells stories for a living. We asked him whether his own life would make an exciting story?

By Kjetil Østli Here he comes. Here comes Euroman, Mr. TV2 Norway and Nordisk Film. A distant breath of fresh air breezing through the Norwegian streets, straight from the Olympic games in Sochi during a stopover en route to Copenhagen.

The CEO of Egmont emerges from Norway’s largest publishing house, Cappelen Damm. His reputation depends on the stories told by the Group’s companies. He is living the good life now. You can see it in his step, his smile, his self-confidence. This is a successful man, and he controls the narrative: I am navigating the ship through the digital revolution. We are leaders in the Nordic region, and our films are present on the world stage.

Egmont’s slogan is We bring stories to life. But if we tell Steffen Kragh’s story, what sort of tale would unfold? A drama? A comedy? Or a financial thriller?

The task is strangely difficult. The CEO of a Group whose activities span books, games, films, magazines and television in 30 countries, yet he rarely makes a personal media appearance. However, a couple of stories manage to emerge.

Here is the story of Steffen Kragh, take one: The man who delivered at home and abroad (Nordisk Film).

Pitch: The smart CEO presents yet another set of impressive financial statements in a challenging business climate. ‘He’s done it again!’ everyone cries. He and Egmont have cracked the code. ‘We grow because we deliver quality,’ he says.

The operating profit has rounded the one billion mark. ‘A milestone,’ he continues. How? ‘Adjustment. Darwinism.

We develop content and platforms, we find ways to run our

20

EGMONT STORIES MARCH 2014

business more efficiently. The TV 2 news channel presenters do their own make-up, even the men. Success is the sum of small things.’

In his office with art on the walls and exclusive wooden floors, he glances at his expensive watch and looks at the boxing gloves in the corner, inscribed with the words: There is no substitute for action. Kragh nods and says to himself: ‘And we deliver.’ Then he drives home to his wife and two daughters, who embrace him as the sunshine streams into their beautiful flat. He squeezes fresh fruit juice for them all. They sit down and decide on their next holiday destination – with all their devices – mobile phones, iPads, etc. – switched off.

The critics’ verdict: Cliché! He is too perfect. We cannot recognise ourselves.

Steffen Kragh greets me at the door to Cappelen Damm. I have a plan. Colleagues and media idolise this man. He is friendly, astute, gets so much, you name it. But don’t be fooled, his friends have warned. This man is so pleasant and jovial that you easily forget he always expects good results. It dawned on me that he is a discreet alpha male who wants to win without boasting. So let’s take him down a notch or two, for the sake of the story. I thought to myself: Hey, he can’t cross-country ski. I want to see this Dane wobbling and swearing on his skis. A demonic smile spreads across my face.

‘Where shall we change? On the slopes or here?’ he asks, getting straight to the point in the publisher’s bookshop, now closed for the day.

‘Here?’ he asks quickly.

He wastes no time. It is afternoon; a man wants to wash the

»

Egmont’s CEO of 12 years turns 50 on 6 April 2014. To mark the occasion, we gave a Norwegian journalist carte blanche to create a birthday portrait.

Journalist Kjetil Ă˜stli has worked for Aftenposten for many years, won numerous awards and is one of the masterminds behind the experimental web magazine, Harvest.as.

Photographer, Trygve Indrelid captured Steffen Kragh in Nordmarka, Oslo.

21

»

floors. The man tells Steffen Kragh, without realising who he is (and who can blame him), that the shop is closed. Kragh makes a polite entreaty: ‘I’m only going to change, it’ll only take a couple of minutes.’

The cleaner still wants Kragh out. Kragh switches to English, and suddenly everything is all right. Two minutes later Kragh reappears wearing ski gear over his Ralph Lauren shirt.

‘Thank you,’ says Kragh to the staff member he meets in the reception area.

‘Thank you,’ he repeats, ‘thank you, thank you, thank you,’ and no-one knows what his thanks are for.

‘Now I sounded Swedish,’ he says quickly.

We have been walking for two minutes when he calls out to someone. The man with a thousand contacts has already met a friend. He does not stop; they both talk as they briskly walk along. He gets into my car. I feel somewhat embarrassed. The child seats in the back mean Kragh has to scrunch up in the front, as though he is in a plane about to crash. The CEO of my publishing company is sitting amidst my kids’ wilting banana peels.

He graciously ignores them and enquires about my children.

‘Mine are 17 and 19,’ he answers.

Then he talks about Italy, Florence, where his daughter is studying art and history, about the Medici family. Steffen Kragh, the boy from the provinces, continues talking about Umberto Eco, the author. Whatever I ask, he has an answer ready. The master of meaningful cocktail party small-talk, I think, a perfect Trivial Pursuit partner.

‘I’m going to show you a true Norwegian gem,’ I say as we drive along. ‘A café in the forest near Oslo.’

‘I have a confession to make,’ he responds.

‘I know Ullevålseter. I was there last weekend.’

What? He knows everything about Norway.

He has been to the Gålå skiing resort, Hardangervidda and Geilo. My ski trip plan has backfired. Steffen Kragh runs marathons and does the 90-kilometer Wasa ski race. In fact, he thinks best when running and all he can hear is his own breathing. We often look for celebrities’ foibles. That’s how glossy magazines attract readers. Steffen Kragh radiates the message: Give it up!

The story of Steffen, take 2: The day has 27 hours – a self-help guide (Cappelen Damm).

Pitch: We get Kragh’s tips for getting the most out of every day – and how to strike the right balance between work, family, leisure and a healthy lifestyle.

The critics’ verdict: Hogwash! I tried Kragh’s tips, and my immune system collapsed on day 4.

22

EGMONT STORIES MARCH 2014

We park near the ski slopes. The corporate director gets right out and takes a leak, completely unfazed by the other skiers. I ask whether he did sport in his youth. ‘Yes,’ he replies, but ‘work became my sport.’ He tells me about his pulse watch, explaining modestly that he ‘measures results, but mainly for fun.’

It is 6 PM, and the forest darkens. A fivekilometre course, all uphill, awaits us. We set off.

If it’s true that skiing style reflects personality, this is the time to observe Steffen Kragh closely. He does not glide forward in best skiing style. However, what he lacks in technique, he makes up for in focus and strength. He moves easily, constantly leaning forward, balanced and without stumbling.

Insisting that we talk as we progress towards our goal.

The fir trees cast black silhouettes against the clear, starry blue sky. He scales the hills easily, exclaiming: ‘What a beautiful evening!

It’s a great way to use your body! But the poles are too long!’

The story of Steffen, take 3: My journey – from boy of the provinces to man of the world (book/TV series).

Pitch: We follow his childhood years in the Danish provinces. Happy boyhood days with his brother, mother and father. At the age of 18 he is allowed to drive the car on the family’s motoring holiday. His parents trust him. We watch him as he discovers the world

and yearns to explore it. He works his way up from provincial Denmark, not through any contact to the Copenhagen elite, but by sheer will, as he repeats: ‘I’m learning something all the time!’

The critics’ verdict: Grade C (Average?).

Needs a catchy ending.

Where do you come from? I ask.

From a small provincial town near the German border. We had one Danish TV channel, two East German channels and three West German. I understood German from an early age. I went to primary school and then lower and upper secondary school, and come from an ordinary Danish family. No-one locked their houses then. We just went home and played outside. I remember cycling and playing football, table tennis, badminton, everything.

I was born in 1964. As such, I had a perfectly ordinary childhood.

Is modern childhood different?

Yes, definitely. We were allowed to be children and young for longer. Today’s children and youth assume adult values more quickly.

Today they communicate without being physically together. In my childhood, we spent hours and hours in our friends’ rooms. I still remember carefree years in a harmonious home. Life should be like that for all children.

No dramatic story?

No, but wonderful years! My parents gave me responsibility and opportunities. I also remember that when they were home, both my father and my mother were truly present in the moment. They gave us attention.

Do you remember summer days better than winter days?

Don’t we all remember life’s high points best?

I remember never-ending summer evenings.

But I also remember that when it was snowy, we used to tie our sledges to the car and get our father to pull us. I think we Scandinavians live life to the full in summer. We sleep less.

We have to get the most out of the daylight hours.

And you’re good at that?

If you were to ask my parents, they’d say I never slept. Never. Late to bed, early to rise.

I still sleep less than most people.

The last hill before Ullevålseter is gruelling. But Kragh speeds up and forges ahead. I knew it! At the summit he says casually: ‘A lovely trip!’ We order soup, a roll and mineral water.

Allowed to be children for longer: What do you mean?

Kragh thinks for a while.

‘I read comics until I was 13. Now kids stop when they’re ten. And adolescence ends earlier. Most young people who play football or go horse-riding stop around 14 or 15, because those activities are no longer cool. And we got less pocket money than they get now. Many young people strive for lots of the material goods that adults have.

Did you have to earn your pocket money?

My brother and I worked for our pocket money. Later we had a budget and responsibility for buying clothes and all sorts of things ourselves. We negotiated the budget with our parents.

Ha ha, were you a good negotiator?

Yes. (Laughter.) I was very, very good.

How does a shorter time in the child’s universe affect Egmont?

Not much, because we offer so varied a media range. There’s no longer one single teenage segment. Kids leap straight from childhood to the adult segment. TV programme production now matches this trend – take Paradise Hotel, for instance.

younger daughter. Absolutely amazing. We couldn’t wait a whole year for the next one. I bought the English book and simultaneously translated it into Danish. How far have you got? Book three? They contain so many references to real life. Children understand what life’s about: some things are good, some bad, some things have to change,’ he says.

His phone rings. He turns it off and continues.

‘My parents read aloud to me. The pleasure, oh, the sense of comfort and security. There’s something primordial about it. The campfires of the past were places not only for entertainment but also for passing down knowledge about skills and dangers.

Reading together with children has some of the same elements.’

What did your parents want you to be?

They wanted me to be happy. But they taught me something important: Finish what you start. And do it properly. If you want to do something, fine, but take personal responsibility for it. I was raised with chiefly positive, not negative, reinforcement.

You use the word ‘responsibility’ often.

Does it mean a lot to you?

Not in the sense of duty. But responsibility as in opportunities, yes. The opportunity to grow and learn. It’s important to give young people responsibility. Young people are the ones developing the media industry.

Steffen Kragh chose business.

After upper secondary school, he saw three possibilities: law, business school or economics. He had always found mathematics and quantitative studies easy. However, he had set his sights on an international goal, on travel.

‘And then, during my second year of study, I took my master’s alongside my bachelor’s in financial planning. An investment company was running the course, and I commented on something. So they asked if I’d like to work for them as an investment analyst. That’s how it all started,’ he says.

The story is reminiscent of Egmont H. Petersen’s silver coin. It reminds me of luck, but luck smiles more often on the wellprepared person who is curious to know what might happen.

Kragh’s philosophy of life: Be curious, then something unexpected will happen.

On a holiday in the United Arab Emirates Kragh got stuck in the desert. His car sank deeper and deeper into the sand. Then something unexpected turned up: a nearby Bedouin camp. They dug the car out and invited him for sweet tea and marbled eggs.

‘That was far more exciting than the hotel.

A life memory,’ he says.

His job as an investment analyst was another life memory. He talks about this time as other people recall their first love: What are the listed companies going to live off? What can be changed? Where does its cash flow come from? What are its risks?

What do consumers want? How strong are the competitors?

‘I burnt the midnight oil, working 40 hours a week, on top of my studies. Fantastic!’

Fantastic, yes, especially for those who don’t sleep.

What characteristics are important to you as a leader?

I have a good gut feeling. And I’m tenacious.

If I want something, I persist. I can hold out for a relatively long time.

Argh, I’m dreading my children watching it.

You don’t need to! It’s so caricatured and far out that it actually triggers discussion. My children are allowed to watch it, no problem.

My parents trusted us children. I do the same.

Kids are smart.

I read aloud to my children, Harry.. …Potter? Aloud? Fantastic!

That’s wonderful!

Kragh leans across the table, full of energy.

‘I read the first one, an epic story, with our

23

Does a singular focus on the goal make you blind?

No. Sure?

Yes. That’s why I’ll never be a world champion!

During the winter Olympics, I watched the athletes … some go wild, they are oblivious to everything else. No, no, I’m not like that.

At my upper secondary school one of the guys played badminton until he threw up – and later, while training for the elite forces, he was thrown into the water with his heavy kit. He kept swimming and wouldn’t give up. Finally he sank and had to be resuscitated. That’s what I call stubborn. Personally, I stop way before I reach that stage. I want to do too many things at the same time.

You’ve been CEO of Egmont for 12 years?

Mmmm.

Many would say that’s a very long time.

What’s your response to that?

He looks up from his goulash soup and answers eagerly: ‘That it’s not the same job. Not the same job at all. The entire media industry has undergone a huge transformation. And fortunately I’ve been curious.’

Curious?

Incredibly curious. As a kid I used to take things apart to see how they worked. Wow, I’ve taken so many things apart. I once had an iPhone in New York that wouldn’t work on the European net. I fiddled with it for a whole night, determined to fix it. Because things have to work, and I find it absolutely fascinating to know how.

Despite your curiosity: The media have seen revolutionary changes in a short period of time. I suppose you must have felt the pressure? Younger people breathing down your neck?

No, no.

No? No. The answer is no. I have so many talented colleagues. And people must have the desire to improve their skills, right? Adapt, change, spot opportunities, right?

He gives a brief lecture. It lasts 30 minutes.

Here is the short version: 1. Content: The expression Content is king is more important than ever. What’s superfluous disappears. When I became CEO, we had fewer TV channels, magazines, fewer of everything. We had to adapt. We bring stories to life: that is our DNA. Stories are one of the great things in life

24

EGMONT STORIES MARCH 2014

– like reading Harry Potter aloud to children.

Stories can also be journalism, entertainment or sport. And, in a more abstract sense, the way the stories are told. That is changing radically. Content is being produced in greater amounts than ever before. For fewer and fewer eyes per content item. That’s why we have to create something unique. Or be super entertaining. And/or be useful and relevant.

We have to initiate ambitious projects like the Kon-Tiki film on a budget of NOK 93 million or niche features. A product that truly shines or is unique.

2. Platforms: We can watch the Olympics on TV2 Sumo here in the forest. My TV screen is in my pocket. We have to adapt to whole new patterns of consumption. And we’ve been quick off the mark.

3. Globalisation: The internet opens up globalisation opportunities for content and advertising. Some of the media’s most defining years have occurred in the past decade.

Everything is thrilling. And demanding. What areas should we enter? What should we steer clear of?

“If something important is going on in my family life, I plan around that.

And when I’m home, I don’t constantly respond to e-mails.”

Yes, where and where not to go?

We’re focusing more strongly on moving pictures, TV and film, because that area will grow with the growth of screen-based media.

As a company, we will become increasingly technological, because all processes and customer relationships will be digitalised.

Consumer behaviour will change, new competitors will emerge. However, our magazines and books also command a strong position. Granted, circulation is falling, but they must reach consumers in relevant content areas.

On the web or on paper?

I’m not really concerned either way. What matters is the strength of the stories.

Our programme coverage must be more topical. We can’t carry on re-telling old stories. Consumers of sports, news – well,

consumers of everything – must feel part of it, at the heart of things. We can no longer consider our productions ‘our media’ but ‘the consumers’ media’, and they must work on the media platforms that are part of their daily lives.

Let’s rewind a little: What was your position knowledge-wise during the digital revolution? Were you at the head of the pack?

I was at the head. Owned one of the first computers in Denmark. Got gadgets early.

I adore using, testing and owning them, and measuring and playing with gadgets like the Garmin pulse watch. I have a huge interest in them. But no-one at Egmont, me included, could predict what we’ve been through. We adapt our strategies every year.

Moving images, more user interaction, more technological business – that’s Egmont.

The story of Steffen, documentary idea: About the origins of media – a new perspective on Darwin.

Pitch: We follow Egmont’s corporate management in Darwin’s footsteps to the Galápagos Islands. The aim is to show that Darwinism can be applied to the financial world. Not just the common ‘survival of the fittest’, but how the media are adapting. In the same way as the pale, speckled peppered moth turned black, thus avoiding predators by blending against soot-covered trees. Evolution is governed by adaptation based on curiosity and analysis.

The critics’ verdict: Should be compulsory reading at all business schools.

There are some good reasons why adaptation is one of his favourite words.

Egmont corporate management attended a future media seminar at Harvard Business School. One case required the executives to assess whether it was worth buying shares in Apple (Steve Jobs died during their stay). Nearly everyone said no. And Apple’s market value promptly doubled. In the next case, about Netflix, the question was: Would the streaming model succeed?

No, they responded. And were wrong again.

Conclusion: Experts cannot always predict the future. Kragh gets animated now.

‘Who attracted attention ten years ago?

Nokia? Microsoft? But now all the talk is about Facebook, Google and WhatsApp. You have to pinch yourself in the arm. The world is in constant flux. It changes. You have to keep asking: What are we delivering? Should we adapt the content or the technology?

Did you once say that if paper had not been invented, it would be invented now?

Yes. Paper is an amazing medium. You’re writing on it now!

Are you clinging to the media of the past?

No, the media of the present! Paper is easy on the eyes. Paper is wonderful. Ok, what about newspapers? Newspapers were once our point of reference. Now it’s online news sites or television. But there’s nothing wrong with paper. We just need to rethink how we use it.

A current debate in Norway concerns whether iPads are unhealthy for children.

There’s nothing wrong with iPads; there’s something wrong with parents who can’t control how their children use iPads. I was once at a restaurant where all the children had iPads. No-one was talking. There was nothing good about that. Parents shouldn’t get wildly excited simply because a three-year-old can navigate an iPad. Why not?

Well, a monkey could learn to use an iPad! It’s the ability to learn new skills, the ability to develop thoughts and actions that should impress parents.

How do you regulate this yourself?

My wife has occasionally driven some kids to school. Everyone sat in the back tapping

away. That was unacceptable. The deal was: We drive, but no-one is allowed to use a smartphone. They have to talk to each other.

The Danish media give you kudos for making your family a high priority. How do you manage that when you work so much?

I work relentlessly hard. I make big sacrifices: personal time, boy activities and sport.

Even though your day has 27 hours?

Yes. I win an hour or two that way. It’s a question of prioritising. If something important is going on in my family life, I plan around that. And when I’m home, I don’t constantly respond to e-mails. I am mentally present. Concentrate on what you’re doing, where you’re doing it. Always. Otherwise it’s pointless.

The Group makes its living from stories.

Could your life be pitched as a good story?

No. No? No. There aren’t enough dramatic highpoints!

None?

No. There are plenty of good things in my life.

A colleague says you undersell rather than oversell.

He sighs heavily.

No, but. No, no, once in a while I can call

attention to myself, but I’m fairly modest by nature. You won’t get me to start boasting.

Does keeping a low profile come from your upbringing?

Yes, I think so. I set store by high ambition, delivering the product. But I prefer to deliver without talking about it first. Doing something that comes as a surprise gives me a good feeling. I can spend hours preparing dinner at home. That was delicious, the guests say. So I don’t tell them I’ve spent a long time cooking it. But I’m happy about what I’ve achieved.

Are you a perfectionist?

People will say I am over-inquisitive about the details. As CEO I have to have a strategic overview as well as understand the details.

They are the basis on which we understand why something is the way it is. That gives me a sense of calm. I love it when people really understand every facet of their business or area.

I prefer things to be orderly. While we were skiing, you asked about Sochi. What a mess when things aren’t properly planned from the start. I can be pedantic. I like people to write well. And I have deep respect for people who do things properly – who master their craft. But I can also be impatient and sometimes want things done fast. Done properly, but done fast.

You know Italian food? It’s simple and tasty.

That’s what I like. Simple but good. Life is too short for mediocrity. Is that perfectionism?

Maybe.

We prepare for the descent from Ullevålseter.

Five kilometres straight down. Kragh swoops off into the dark. At the steepest parts he is silent and concentrated, but otherwise talks without missing a beat. About a new app, a new website, about Von Trier’s film. When we arrive at the bottom, he says: ‘I was surprised how steep it was on the way down. I didn’t notice on the way up.’

No, I don’t suppose you did, I think.

The story of Steffen, idea for a docusoap about him: 50 years old and as youthful as a child.

Pitch: We follow him closely as his 50th birthday approaches. Cameras and microphones everywhere. We see him running and training after corporate meetings. We see him dismantle technical gizmos and examine them in detail. Because we have to remember: In the story, the devil’s always in the detail.

The critics’ verdict: Happy birthday, our man of the moment!

25

'BEDRAGET'

THE STORY OF DENMARK’S BIGGEST SWINDLER It has been called Denmark’s biggest corporate scandal.

The CEO drowned himself in a bathtub, and Nordisk Fjer collapsed over a weekend, leaving behind billions of kroners of debt. For the first time the full story has been told. A story that has taken Charlotte Langkilde 14 years to unravel. It became one of Lindhardt og Ringhof’s absolute bestsellers last year.

He was discovered in the bathtub. He had taken his own life, alone in his summer cottage. That was when the scandal really gathered momentum. Twenty-four years have passed since Nordisk Fjer crashed almost overnight, leaving in its wake fraud and debt to the tune of billions of kroner.

The true sequence of events has never fully come to light. Until now. Author Charlotte Langkilde has spent the last 14 years delving into the massive web of deceit that CEO Johannes Petersen wove around his 4,500 employees: a web so intricate that neither employees, the board, company auditors nor the media could see through it.

The result of her investigation is a 752-page documentary thriller that Lindhardt og Ringhof has reprinted five times in just six months.

Topping the bestseller lists for several months during the autumn of 2013, the book is now to be turned into a film. ‘Bedraget’ [translator’s note: ‘Betrayal’] is its title – a betrayal that proved far deeper than anything Charlotte Langkilde could have imagined.

The big question

By Louise Bangslund

26

EGMONT STORIES MARCH 2014

It all started one day in 1999 when Charlotte Langkilde drove to Horserød state prison.

She wanted to ask Anders Wejrup, a group director convicted of fraud, when he realised something was wrong.

He answered: ‘On the evening of 16 October 1990 at Langelinie Pavillonen [translator’s note: an upmarket Copenhagen restaurant]. ’ The prestigious duvet business Nordisk Fjer filed for bankruptcy on 19 November 1990, the day after then-CEO Johannes Petersen had committed suicide.

‘That set off some alarm bells,’ she recalls.

‘I asked why he was in prison if he had only known about the fraud for a month. “Yes, well, it’s a long story,” he answered. And then we got talking.’

Detective work In the 1980s, Charlotte Langkilde ran her own translation business, and her work included translating annual reports for Nordisk Fjer.

This was how she became acquainted with finance director Anders Wejrup, who in 1990 approached the leading Danish banks with the information that sent Nordisk Fjer spiralling into bankruptcy when, in the course of a weekend, it emerged that the company had been stripped of its assets. She wondered what had made Anders Wejrup turn whistleblower, and how the fraud could have gone on for so long. Her curiosity led to 14 years of detective work, albeit with a few years’ break along the way.

Through interviews with over 100 individuals, secret tape recordings from talks with CEO Johannes Petersen and reams of hitherto unseen memoranda and other documents, Charlotte Langkilde revealed a story with no resemblance to the official one. Information poured in, information that neither police nor journalists had ever set eyes on.

‘I felt like a detective. That’s what triggered my sleuth instinct,’ she recalls.

Enough facts for a book Finally, Charlotte Langkilde reached the point where every new puzzle piece fitted into the story rather than added something new. That was when she knew she was approaching her goal and had enough material for a book. She then contacted Lindhardt og Ringhof. Editor Elise Nørholm was adamant: Her company wanted to publish this book.

‘Granted, it was an old story, but in many ways it was still an open-ended case.

Charlotte is the first person who’s really tried to understand it, and we rarely meet an author who works so meticulously and persistently. It had huge potential,’ says Elise Nørholm.

Unsurprising success ‘Bedraget’ came out in September 2013, first receiving reviewer accolades, then becoming a commercial hit, notching up top positions on the Danish bestseller lists and later attracting three film companies who fought for the film rights. However, this response came as no surprise to the publishers.

‘Although not surprised, we’re thrilled the book got such a positive reception. The scepticism of some journalists when we started airing the idea – it was an old case, and wasn’t 750 pages a bit over the top – vanished in the blink of an eye when the book was actually published and people started reading it. We’re really proud of that,’ says Elise Nørholm.

Charlotte Langkilde and Elise Nørholm agree that the key to the book’s success is the story’s universal appeal: Johannes Petersen – the swindler, the deviant, the cold, calculating CEO – versus the ordinary man. Charlotte Landkilde has no doubt.

‘That’s the essence of it all: What happened to Johannes Petersen could happen to any one of us.’

ABOUT THE AUTHOR Charlotte Langkilde (born 1950 in Odense) qualified as a translator and interpreter in English and French from Copenhagen Business School. She ran her own translation company for five years from 1984-1989, and her assignments included translating Nordisk Fjer’s annual reports. She lives in Charlottenlund and currently works as a translator alongside her writing.

THE HELICOPTER VIEW 18 November 1990

The CEO of Nordisk Fjer, Johannes Petersen, commits suicide.

19 November 1990

Nordisk Fjer suspends payments.

5 March 1991 1991-2002 1999

Nordisk Fjer is declared bankrupt.

Legal proceedings.

Charlotte Langkilde’s first interview with Anders Wejrup, the group’s chief financial officer who was convicted of fraud.

1999-2001

The book is Charlotte Langkilde’s first priority, and she works full time interviewing sources and ferreting out information.

2001-2009

Charlotte Langkilde puts the book on hold and devotes herself to translation work. She continues to collect information about Nordisk Fjer.

2009

Charlotte Langkilde resumes work on the book.

2012

Lindhardt og Ringhof receives the first draft manuscript and decided to publish the book.

2012-2013

Charlotte Langkilde continues writing the book, working simultaneously with Lindhardt og Ringhof on the final editing.

23 September 2013 9 January 2014

Lindhardt og Ringhof publishes ‘Bedraget – sagen om Nordisk Fjer’.

The fifth print run of ‘Bedraget – sagen om Nordisk Fjer’ is published.

27

CLIFF AND THE DIGITAL

POTENTIAL

28

EGMONT STORIES MARCH 2014

Alinea’s newly appointed publishing director, Cliff Hansen, intends to capture market shares and fine-tune the publishing company’s work routines.

By Mads Moltsen

‘Lindhardt og Ringhof’ hired Cliff Hansen almost three years ago for the express purpose of getting the crisis-stricken publishing house back on a positive track. In his capacity as business development director, he worked with managing director Lars Boesgaard to initiate the turnaround, a process completed, in Boesgaard’s own words, by the appointment of four new top executives as of 1 January 2014.

One of these executives was Cliff Hansen himself, who took up the position of publishing director for Egmont’s educational publisher Alinea. Having replaced the red figures on the parent company’s bottomline with black, it was time to focus on the educational publisher, the business’s other vital business arm.

“We’re in the throes of a pressing digital trend ushering in monumental changes.

We must be sure our business is ready to meet these changes in the right way and cement our leading position for the future,” comments Cliff Hansen.

Sharper market focus Digital learning media are a never-ending topic of conversation at the publishing office – and in the public sector. The Danish government has earmarked EUR 67 million to strengthen IT in primary and lower secondary schools from 2012 to 2015. In 2013 no less than EUR 11 million was granted in subsidies for digital learning media. Nonetheless, digital learning media did not enjoy a real breakthrough in 2013.

“We generated 50% more revenue from digital learning media. A sizeable increase, but not as big as we’d hoped for. We’d envisaged growth of over 100%,” Cliff Hansen concedes.

The lack of revenue is attributable to a market that has developed more slowly than anticipated. Despite the subsidies, schools are not yet ready for the adjustment. The right IT structure needs some tweaking, and schools are also preoccupied with Denmark’s forthcoming educational reform. However,

this does not mean Alinea can simply sit on its hands and wait.

“We must gain a better understanding of teachers so we can meet their greatest needs spot-on. We have to be the most adept at understanding the market challenges and capturing market shares, even if the market isn’t growing at the pace we would like. That’s our future challenge.”

Organisational tuning However, the publishing house is also tackling other, more internal challenges.

Cliff Hansen explains: “Alinea has taken a distinctly decentralised approach to digital learning media. We strongly believed in the value of leaving the individual editorial offices to develop and operate most of the learning media in close touch with the professional knowhow. Fundamentally I don’t disagree with this approach, but we have an opportunity to centralise some areas and achieve huge gains.”

Specifically, this has led to an organisational restructuring, with operational tasks moved from the editorial units to a central unit – Alinea Digital. This central unit will thus manage all the tasks that arise once a digital learning medium has been developed and implemented. In turn, this will allow the specialised editorial staff to concentrate on following their passion: developing products and content.

Analogue media remain important It is easy to fall under the spell of digital learning media and forget that analogue media generate by far the bulk of educational publishers’ revenue. Cliff Hansen stresses this: “We’re not really that concerned about whether it’s one or the other. In some cases, analogue learning materials still have the edge, while digital media constitute a supplement. We are solely concerned with developing content that schools can use to help students acquire new skills.”

29

From left: Arill Riise. Anne Martha Giske, Julie Strømsvåg and Carsten Skjelbreid.

For the first time TV 2 in Norway had the exclusive rights to broadcast the Winter Olympics in Sochi in 2014. They built their own studio in the mountains for the purpose.

30

EGMONT STORIES MARCH 2014

TV 2’S OLYMPIC

BAPTISM OF FIRE The outcry had already begun the day before the Winter Olympic games opened. The first roars resounded before the first triple axels had landed in the figure skating competition and during the slope-style qualifying rounds, intensifying throughout the first weekend of the Olympics.

People shouted and swore. On the phone, in furious emails and in the social media. Facebook groups against the Olympics on TV 2 were set up. Nonetheless, 1,508,000 Norwegians spent most of day 3 of the winter Olympics with their eyes glued to TV 2’s transmission, more than ever before on TV 2.

By Katrine Sæverud TV 2’s take-over of the Olympic games, which the Norwegian Broadcasting Corporation, NRK, had aired for half a century, struck a deep, emotional chord in some Norwegians, a people generally born with skis on their feet. Many who had listened to the same commentators’ voices reporting on their favourite disciplines since birth probably felt Doomsday was imminent when strangers took over the games and commercials were scheduled to interrupt the skiing.

Advertising had existed on Norwegian TV before TV 2 arrived in 1992. But during the Olympic Games? Never! Although some grumbles escaped when the news that TV 2 was to take over broke, it was not until Mr and Mrs Norway had settled comfortably in their sofas to watch the first disciplines that pandemonium broke loose. Hundreds of furious calls every hour. Tons of mail and hate comments on Facebook, Twitter and other net sites. The various commentators had to deal with the barrage, but the commercial breaks were what most viewers found hardest to swallow.

All questions were answered professionally, politely and humbly.

“Much has been said about commercials during the weekend, but we are working continuously to place the commercial breaks so viewers don’t miss the thrills and spills of the Olympics,” says TV 2’s Head of Communications, Jan-Petter Dahl, not without a smile, however, because the

viewer ratings would bring a smile to any TV professional’s lips. Nevertheless, TV 2 adjusted the commercial breaks, and the viewers were appeased.

War Room “We knew reactions to the commercials would come, but this was no more than we’d expected,” says Managing Director, Alf Hildrum, who was glad that TV 2s ‘War Room’ was up and running before the storm broke.

Representatives of the sports department, communications department and TV 2 Sumo web TV sat in the War Room for 17 hours every day. They oversaw every move on the social media, responded and sent constructive feedback to their colleagues in the field.

“This was massive,” admits TV 2 Sumo’s Gro Elin Eliassen. We met her in the War Room with Håvard Solem from the communications department and Jonn Erik Aasen from sport halfway through the games.

The popular dynamic “But once the storm had died down, many people said they were tired of hearing all the complaints about commercials and started shouting about what they were watching instead. It’s amazing to see the popular dynamic at work,” says sports reporter Jonn Erik Aasen. The War Rooms can leave the defence of TV 2 to its viewers.

“Viewers have also expressed their gratitude that TV 2 has listened to them and

been willing to adapt,” says communications consultant Håvard Solem.

Danes were incensed!

Although the figure skating commentary box exerted a certain magnetic hold, viewers flocked to all TV 2’s Olympic channels.

Soon their attention locked onto what was happening rather than what TV 2 was up to. And one thing that happened was that snowboarder Ståle Sandbech was cheated out of a gold medal in the slope-style event.

It was commentators Martin Kampmann and Peter Falktoft from the Danish Broadcasting Corporation, however, who first pointed out that we Norwegians should feel cheated. They were simply furious when Sage Kotsenburg, and not Ståle, won the gold medal.

“It’s a scandal! Are you f*§#ing kidding me, man! This is totally uncool, they’re ruining the sport of snowboarding,” they both cried at once, their remarks obviously aimed at the judges when Ståle’s point total lit up on the screen.

The video was uploaded onto TV 2.no, and with 300,000 views is now the most seen.

Good news Since then TV 2 has had torrents of good news. Compared with the opening weekend from the 2010 Winter Olympics, TV 2 recorded higher viewing figures from Sochi in the commercial target group 20-49 years. Back then, NRK1 had a market share of 40.7%,

31

while TV 2 ultimately notched up 44.1%. And that was just for the first weekend.

The men’s cross-country relay attracted 1,639,000 viewers, a week after the games opened. On average, 1,451,000 viewers followed the relay event, the third-highest figure in TV 2’s history, and accounting for 90.8% of total viewers watching at the time.

Marit Bjørgen and the other cross-country women achieved almost as high a share, 90.3%.

“Figures like these bring tears to your eyes.

We brought TV 2’s top 10 list down to Sochi in hopes that we could get one transmission on that list. Today we can see that the men’s relay went straight to third place, with a week of big Olympic events still to come,” says TV 2’s Head of Communications, Jan-Petter Dahl.

“For us, these Winter Olympics were a watershed. We already topped the streaming list and are rapidly climbing up the rankings for both computers and mobile platforms.”

Bredeli wept He is not the only person with damp eyes.

TV 2’s team handball commentator, Harald Bredeli, was tasked with commenting on the biathlon for TV 2 during the Olympics, along with statistics geek Ole Kristian Stoltenberg.

When biathlete Emil Hegle Svendsen crossed the finish after a nailbiting 15 km run, apparently neck and neck with Frenchman Martin Fourcade – possibly slightly behind, possibly slightly ahead of – the duo exploded in their tiny box, jumping up and down, shouting “Did he make it? Or didn’t he?”

An outburst that proved simply too much for the seasoned commentator. After the transmission when the gold was safely in Norwegian hands, we saw Stoltenberg hurry out while Bredeli remained alone in the box weeping. He had forgotten there was a camera installed. The clip was uploaded onto tv2.no, and is well on its way to 120,000 views at the time of writing. On a visit to Harald and Thomas in their late-evening programme from Sochi, which attracted more viewers than NRK’s evening Olympic transmission, both commented on this episode and others: “I’m quite an emotional man and passionate about sport. I have actually outgrown the winter, and thought the value of indoor sports in winter was grossly underestimated, but this is just fantastic,” says Bredeli, who, together with Stoltenberg, gave Norwegian audiences tremendously enthusiastic and emotional Olympic experiences from their small commentary box at the biathlon stadium about 1,000 metres above sea level.

-Did it all get a bit too much for you, Harald?

Strep throat “You’ve no idea how much I’ve blubbed my way through the games. After biathlon veteran Ole Einar Bjørndalen finally got a gold,

32

EGMONT STORIES MARCH 2014

my throat was so sore I thought I’d got strep throat,” Bredeli admits.

But where were you, Stoltenberg?

“I was on the john! I’d seen he was alive, but a little later he was slumped over the desk, and that’s when I came up with the famous comment to Homer: Can somebody tell me the number for 911! But thankfully he was alive and kicking,” explains Stoltenberg, admitting that he too shed a few tears.

“We were so tired. We had done so well, and then we fared badly. And at long last things picked up again. We spent two hours trying to get out of the commentary box, which smelt really stale at the end,” explains Bredeli, who received a lot of viewer feedback.

“I got a lot of positive response on Twitter and in texts. My wife managed to put it all in perspective with these words in a text message to me: Harald, you are a crybaby,” Harald laughs.

Magical growth for tv2.no This was not the only video clip viewed on the web and mobile devices. TV 2 is currently stepping up its media websites, particularly on mobile platforms. We set a new record in week 7, taking the silver award for the most-used website on a mobile platform, an increase of 138% over last year.

“What’s most incredible is that on average users spend as much as 92 minutes on the web and on mobile platforms. That speaks volumes about the current pace of development. These figures would have been unthinkable just a few years ago. We aim to become the largest commercial media house in terms of web videos, a goal we’ve already accomplished,” comments news editor Jan Ove Årsæther.

In week 7 TV2.no recorded a total of 1,165,662 daily unique users on the web and mobile platforms combined.

“For us, these Winter Olympics were a watershed. We already topped the streaming list and are rapidly climbing up the rankings for both computers and mobile platforms.

Coupled with the enormous increase in Sumo subscribers, we can already say that the Winter Olympics were a resounding success on our new platforms,” says Årsæther.

In total, all TV 2 channels commanded a 50.1% market share last week – the highest share ever.

TV 2 Sumo jubilant For TV 2’s web service, TV 2 Sumo, these are also times for celebration. TV 2 Sumo currently boasts almost 360,000 subscribers, and although the corresponding figures for its closest rival, Netflix, are unknown, TV 2 Sumo has now presumably outstripped the international company to become Norway’s largest web and streaming service with paying

customers. Granted, viewers have been able to register free for a month, but Sumo has many other exciting offers up its sleeve and hopes many of the newcomers will stay with it. Among its recently acquired offerings are two new Amazon series, ‘Alpha House’ and ‘Betas’, exclusive to TV 2 Sumo.

Starring John Goodman in the lead role, the political satire ‘Alpha House’ follows four American senators who share a house.

The series was created by the man behind ‘Doonesbury’, Gary Trudeau, and looks to be a winner, according to a Dagbladet reporter.

‘Betas’ is a story about app developers in Silicon Valley who have created a social media platform and are looking for investors.

TV 2 Sumo will also offer many premiere series including ‘Deep Powder’, ‘Justified’, ‘Black Mirror’, ‘Elisas Värd’ and the hospital drama series ‘Saving Hope’. It has also purchased entire seasons of series such as ‘Sons of Anarchy’, ‘Modern Family’, ‘Glee’ and ‘Vikings’ as well as the series ‘The Office’ and ‘Grey’s Anatomy’. And not least – all English football. TV 2 Sumo customers will have access to all this content during the Olympics.

Tough Olympics project manager

145 TV 2 employees were in Sochi, Russia, during the Winter Olympics to ensure an absolute coverage for the Norwegian population

The person who may have the greatest reason to be proud of the Olympic Games in Sochi is project manager Christine Espeland.

Since 15 July 2011 when TV 2 acquired the broadcasting rights to the Olympics, her brain has registered the highest level of Olympic activity. Renowned for her steely focus and iron will, she is an undisputed leader in connection with TV 2’s first Olympic Games.

Even TV 2’s chief sports editor, Bjørn Taalesen, has played second fiddle during the games as team manager for cross-country skiing and the biathlon.

“I’m not really the sort of person who thrives in the spotlight; we have others here who do that far better. I remember TV 2’s first sports editor, Ola Bernhus, who put it like this: “I’m the one who knows most about everyone in this department, but about you, Christine, I know nothing.” - So what,” I thought.

How do you get people to work so intensely and enthusiastically with a project for so long?

“Quite honestly, it gives me great pleasure to see others succeed. My goal as manager is to make staff want to work for me. I have seen many grow with the Olympic project in unchartered territory for all of us. What we’re all in quest of is that heady sense of mastery,” says Christine, and that sense pervaded almost 17 days of glory for TV 2.

33

NORDISK FILM INTERACTIVE:

PORTRAIT OF A

WINNING TEAM

34

EGMONT STORIES MARCH 2014

Despite demanding conditions Nordisk Film Interactive can celebrate a terrific 2013. Read how the team tackled a market in recession and came out on top.

By Mads Moltsen

Launch of Playstation 4, November 2013

Just a year ago, gloomy prophesies of the game console’s imminent demise proliferated on various gaming forums and news sites.

The soothsayers singled out smartphones and tablets as challengers that would eventually swallow the last bite of the game console market. Critics also pointed out that games consoles were no longer true to the pure game concept that made them so hugely popular back in the day.

“The ‘game console’ is almost as archaic as the ‘phone’ element of a smartphone,” wrote Jonatan A. Allin in his article ‘The game console is dead, long live the media centre’ in the Danish magazine ‘Eurogamer’ on 22 May 2013. According to the criticism, game consoles had gradually become so versatile that they no longer underpinned the games industry, but primarily served purposes other than playing games, for example, streaming Netflix. The criticism may well have been justified, and the console market was indubitably in decline.

35

»

» Nordisk Film Interactive, which distributes and markets PlayStation in the Nordic region, also experienced the slowdown due to the transition to PlayStation 4.

“In the beginning of 2013 the changing business environment forced us to make a turnaround. Profitability was dropping, the hardware and software market was narrowing, and we had to restructure so we could maintain our financial performance in future,” explains Suman Rath, Director – Head of Interactive Nordic at Nordisk Film Interactive.

Local empowerment The turnaround consisted of an organisational change that trimmed the central organisation and put the accent on empowerment.

To understand the use of the English buzzword empowerment, we have to cast our gaze at the local markets in Denmark, Norway, Sweden and Finland, precisely because in this context empowerment refers to vesting local departments with greater autonomy. This was a key to turning Interactive around in 2013.

“Our local departments can implement creative sales and marketing solutions and launch activities relevant to them. Instead of operating on the same assumptions in all four countries, we’ve left it up to local staff to make decisions that make business sense.

That is one of the keys to our success,” says Suman.

Team of the Year And a success it has been. Despite the doomsday mongering, 2013 was an exceptional year for Interactive, which emerged with excellent results and a stronger team. This team effort shone when Interactive was awarded the Ole Olsen prize for ‘Team of the Year’ at Nordisk Film’s Christmas celebration. The prize cements the hard work Interactive has put into its business, particularly as regards the launch of the new PlayStation 4.

Yes, a new console did come on the market. Under the slogan ‘This is for the Players’ PS4 has returned to the roots of the game console, an approach focused on giving consumers a superior gaming experience. The launch at the end of November 2013 silenced even the blackest of the doomsday declarations: PlayStation 4 was ripped from the figurative shelves.

Figurative because the availability of PS4 is still limited. The ferocious demand is due in no small part to extraordinary PR efforts by all Interactive staff.

“We generated massive hype about PS4 without spending vast sums on TV ads.

36

EGMONT STORIES MARCH 2014

Instead, we generated publicity through intense dialogue with journalists, fans and communities,” Suman says.

markets,” Suman points out. He hopes to lay his hands on more consoles in 2014 in order to meet the high demand.

A complex market

PlayStation 3 is still in the game

It seems that Suman Rath and his team have got the right end of the stick. The Nordic region is among the few places in the world where Sony Computer Entertainment does not handle PlayStation marketing and distribution itself, but entrusts the job to Interactive. The reason: Nordisk Film’s core competencies.

“When it comes to understanding the complexity of the Nordic entertainment market, Nordisk Film is simply in a class apart. The relatively high costs of operating in the Nordics make for the relatively strong entry barriers in the Nordic countries, and with four different languages and a complex media and consumer landscape, the market is fragmented,” explains Suman, who also names Nordisk Film’s negotiating power and strong retail relationships as important reasons that the company stands as one of Sony’s preferred business partners.

However, Sony may have underestimated the Nordic sales potential. At least, this is the impression those not in the know may get when they hear about unsold PlayStation 4 consoles and countless pre-orders. In this instance one has to look beyond the Nordic countries’ home turf.

“Sony has to fight some major battles elsewhere in the world. Microsoft’s Xbox One is a big rival in the USA, the UK and Australia, which is probably why Sony has opted to focus on being able to supply these

“In the midst of all the PlayStation 4 euphoria, its predecessor, the now seven-year-old PlayStation 3, can easily be forgotten.

However, it is still on the market, and alive and kicking,” says Suman and continues.

“Whenever a new console is launched, people tend to forget the old one. Not so at Interactive! PS3 is still a good consumer proposition delivering value for money and although it may not look that way, our prime focus in 2013 was, in fact, to deliver strong results on the PS3 front. And we succeeded.”

He describes the visions for 2014: “We will expand the PlayStation 4 market to a broader target group and maintain a high market share. We will keep on running a dynamic PlayStation 3 business. And we will also continue to live up to our status as ‘Team of the Year’.”

Suman Rath is the Director of Interactive Nordic in Nordisk Film Interactive.

FACTS ABOUT INTERACTIVE Interactive operates throughout the Nordic region. The central department, consisting of marketing and business support, is based in Denmark, while Norway, Sweden and Finland each have local sales and marketing teams.

Interactive markets and distributes PlayStation hardware and software.

« The radio hosts from Danish

national radio DR P3, Esben Bjerre and Peter Falktoft should have hosted the Danish Game Awards in January 2014 and therefore, received a PS4 at the launch event on 28 November.

Unfortunately, they were prevented in the last minute.

Piritta Äikäs-Kovasiipi, 38 Marketing Manager, Finland

Casper Leise Andersson, 30 Which city do you live in?

Helsinki

Nordic Community Coordinator, Denmark

Which city do you live in?

Copenhagen

Åsa Wilander, 38 Marketing Manager, Sweden

Which city do you live in?

Stockholm What is your all-time favourite PlayStationgame? Heavy Rain How often do you play PlayStation? As often I can.

Which PlayStationgeneration do you like the most? Definitely PlayStation 4! I am really excited about the development in the entertainment industry.

When did you start gaming? The first time was on a Commodore 64 in 1984-1985.

What is your all-time favourite PlayStationgame? I must say FIFA How often do you play PlayStation? Unfortunately, not often enough but possibly once a week and sometimes at the office for research purposes.

Which PlayStationgeneration do you like the most? Given that the PS4 hasn’t show nits full potential yet, I’ll have to say PS3. I have my best experiences so far with that console.

When did you start gaming? I started gaming when I was a little kid in the late eighties and that was on a Commodore 64 with tapes. Those were the days…

Kim Hendricks, 29 Sales and Marketing Coordinator, Norway

Which city do you live in?

Oslo What is your all-time favourite PlayStationgame? Battlefield 3-4 and The Last Of Us. How often do you play PlayStation? As often as possible but approximately 4 times a week.

Which PlayStationgeneration do you like the most? PlayStation 4 – because it provides the ultimate gaming experience.

When did you start gaming? I got my first portable console in 1989 – a Gameboy my dad brought home from a business trip.

What is your all-time favourite PlayStationgame? Sly Cooper: Thieves of Time and SingStar SuomiHelmet.

How often do you play PlayStation? On average once a week and mainly with my son.

Which PlayStationgeneration do you like the most? I have a good set of consoles for various needs.

PS3 is a super entertainment center in my living room but nowadays I find myself using PS4 more often instead of PS3. When my family and I go on holiday, PS Vita is always travelling with us.

When did you start gaming? I started when I joined the PlayStation team in August 2011. Before that I had very stereotypic and narrow impression about gaming but not anymore, luckily!

37

A BUMPER

FILM YEAR Commercially and artistically 2013 was a particularly good year for Danish films.

We look back at Nordisk Film’s strongest titles over the past 12 months.

By Nanna Mosegaard

From Nordisk Film’s perspective, 2013 was an outstanding film year. Its cinemas sold an impressive 1.14 million tickets to Nordisk Film Production titles alone, a testimony to audiences’ continuing appetite for Danish film.

The story about two Danish eccentrics, Spies and Glistrup, in SEX, DRUGS & TAXATION, which premiered in August 2013, attracted 330,000 Danes to the cinema despite the summer heat. Nils Malmros’ most personal film to date, SORROW AND JOY, did not repel Danes, despite its heart-rending story, and sold 260,000 tickets. In 2013, Danish titles generated 30% of cinema revenue in Denmark. THE HUNT and THE KEEPER OF LOST CAUSES ranked first and second, respectively, selling a total of 1.4 million tickets.

The annual Danish Robert and Bodil film awards reflected the high quality of the films, with all five titles nominated in the ‘best film of the year’ category being Nordisk Film or Zentropa productions. Zentropa’s THE HUNT ended up taking both awards, and the awards it won at last year’s Cannes festival along with this year’s Golden Globe and Oscar nominations underscore its artistic success both in Denmark and internationally.

Good films are the key The Nordisk Film titles of 2013 represented a remarkable range of different genres, from the adrenaline-pumping tale about young

38

EGMONT STORIES MARCH 2014

people on the edge of the law in NORTHWEST and the children’s film THE OLSEN GANG IN DEEP TROUBLE to the authentically based drama about two oddballs in SEX, DRUGS & TAXATION. Jan Lehmann, Market Director at Nordisk Film Distribution, believes the titles and their ensuing huge box office success in 2013 all spring from the high quality material with which Nordisk Film works. He comments: ‘I believe good films offer high quality while catering for a target group of a sufficiently marketable size. It’s a question of having films with the necessary quality and audience appeal.’

Can the success continue in 2014?

Overall, 2013 has shown that Nordisk Film’s titles still make a strong impact, offering gripping stories that challenge Danish audiences and give them an entertaining cinematic experience. Naturally, it is already an interesting matter of conjecture as to whether 2014 will deliver the goods – with intriguing Nordisk Film Production titles such as THE REUNION 2, KARTELLET and SPEEDWALKING, and Zentropa’s ON THE EDGE and SOMEONE YOU LOVE – and meet the high levels of expectation set in 2013.

Nonetheless, Jan Lehmann is optimistic: “Of course, we know that THE REUNION 2

will probably top over 600,000 tickets and thus outstrip its predecessor, THE REUNION. 2013 was a bumper year for the Danish film industry, so whether we can do as well this year is a good question. But I think that, with the films already mentioned, Susanne Bier’s EN CHANCE TIL and the upcoming Jussi Adler thriller, THE ABSENT ONE, 2014 looks to be a pretty satisfactory year for us.”

DANISH TITLES IN 2013 Nordisk Film Production (number of sold) • Spies og Glistrup (330.000) • Sorg og Glæde (260.000) • Nordvest (100.000) • Kon-Tiki lancering i DK (200.000) • Olsen Banden (205.000) • Skytten (45.000) Zentropas (number of sold) • Jagten (673.000) • Kvinden i buret (722.000)

« In 2013 Norwegian films generated 22% of cinema

revenue in Norway. The most popular film of the year in Norway was the animation ‘Jul i Flåklypa’ featuring the wellloved characters Solan and Ludvig in the lead roles. Produced

by Maipo, Nordisk Film’s associate, the film drew 880,000 Norwegians to the cinema. In Denmark the Danish version, ‘Jul i Bakkekøbing’, sold 70,000 tickets.

39

8€

10 €

340 €

Learn to read and spell – without the weight of an overstuffed schoolbag– with Alinea’s digital learning universe denførstelæsning.dk for Danish preschoolers: 8 EUR per pupil per level/year.

Get into the Christmas spirit with the traditional Christmas annual from Egmont Publishing in Norway, crammed with entertainment featuring favourite cartoon characters.

Meet approx. 2,200 motor enthusiasts when Wheels Nationals Winter brings American cars, music and activities aboard the MS Cinderella for a twoday event: EUR 340 for the best cabins.

FREE

13 €

24-26 €

Read A.A. Milne’s original Winnie-the-Pooh stories on your smartphone or tablet with Egmont Publishing’s awardwinning Classic Winniethe-Pooh app.

Follow Tintin on his global adventures in one of the many books in the series published by the Egmont-owned Australian publisher Hardie Grant.

Step into Pixeline’s learning universe and discover fun shops, well-loved characters and interactive settings when Egmont’s spectacular new amusement park, Pixelineland, opens on the island of Als, Denmark, in spring: Children EUR 24 adults EUR 26.

THE PRICE OF AN

EGMONT EXPERIENCE 45 € Read this gripping tale of poverty in 20th-century Norway with Cappelen Damm’s bestseller ‘De Usynlige’ by Roy Jakobsen.

16 €

8€

264 €/YEAR

Keep abreast of the latest trends for men with the Swedish fashion magazine King.

Get access to a host of series, films, entertainment, direct channels and the best of the sports world with a one-year gold subscription to TV 2 Norway’s online services TV 2 Sumo.

4€

37 €

Give your friends, children, spouse or sweetheart a moment of musical glory with the greatest hits of the 80s in the PS3 karaoke game ‘Singstar back to the 80’s’.

Take a trip to Duckburg with Donald Duck & Co.

Sink into a plush cinema seat beside a friend and enjoy a good film, popcorn and a soft drink for.

469 €

6 € /MONTH

13 €

Subscribe to entertainment for little tots with Nordisk Film’s Min Bio and enjoy a choice of hundreds of the best children’s films.

Go behind the scenes of some of the biggest Danish TV shows, music videos, talkshows and films with a tour of Nordisk Film’s studios.

Experience gaming in a whole new way with Playstation 4, distributed by Nordisk Film Interactive in the Nordic countries.