September 2013 (English)

STORIES SEPTEMBER 2013

Kids Media Awards

Who won in 2013?

Arctic Race:

TV 2 creates Northern NORWAY's biggest sports event Cinema seat number 29.000

the silver screen is still alive

H.C. ANDERSEN

IN New clothes

Content

Dear colleague,

4 The way to the top of the app store

September is the month when more than 170 Egmont colleagues convene in the Swedish tennis town of Båstad to discuss digital media. Digital Days is being held in 2013 for the fourth consecutive year, and this year’s theme addresses how to use our digital experiments to create leading market positions.

6 ’You don’t make it to the top by working 9 to 5’ 8 Judging books by their covers 10 Hans Christian Andersen in new clothes 12 Press forward 14 Seat number 29,000 18 Now we sell films before they wrap 22 Is Reading For Pleasure Under Threat?

24 The most effective help 26 Keeping children safe in a digital world 28 An offer you can refuse 30 TV 2 launches cycling success in northern Norway 34 A helping hand from India 36 Kids Media Awards – the favourites 38 Meet a travelling number cruncher

Every year in Corporate Communications we gather material to compile a list of Egmont’s market positions, and are always impressed. We are among the largest players in almost all the markets in which we operate. These positions boost Egmont’s negotiating power and enhance our possibilities of attracting the right business partners. Egmont has long aimed to participate in markets with the potential for us to gain a leading position. To this end, for example, Nordisk Film Cinemas’ acquisition of Oslo Kino has made it the largest cinema chain in Denmark and Norway.

Ole Sauar, CEO of our new partner company, Jollyroom, shares the same ambitions. In his 30s, he has been involved in e-commerce since the first users started typing ‘www’ on their computers.

However, the road to digital success is not travelled only by investing in successful players. As the first page of any start-up company’s manual will tell you, we have to experiment, make mistakes and start over. And we still have room to do just that, of course.

Read about Jollyroom (page 6), Oslo Kino (page 14) and other articles that provide a snapshot of Egmont right now. At Insight you can also read more about Digital Days and watch or re-watch the event’s main speakers: Atilla Er from Amazon, Lars Buch from Startupbootcamp, Mik Strøyberg from Lemonsqueeze and Kelly Merryman from Netflix.

Enjoy.

40 Show me your media consumption

Mika Bildsøe Lassen Vice President, Corporate Communications

EDITOR RESPONSIBLE UNDER DANISH PRESS LAW Mika Bildsøe Lassen // EDITORS Niels Almer og Mads Moltsen stories@egmont.com CONTRIBUTORS Ann-Sofie Senger, Henning Nørby Nielsen, Maria Junget, Nanna Mosegaard, Mads Moltsen Reeta Bhatiani, Katrine Sæverud, Katrine Bach Habersaat og Niels Almer // LAYOUT O&O // PHOTOS Steen Brogaard, Kristian Septimius Krogh, Carl Christian Raabe, Magnus Nordenhof Jønck, Eirik Urke, Per Morten Abrahamsen, Henrik Sørensen, Christian Als, Per Arild Berge, S. Boué, Philipp Hympendahl, Yann Piriou, Joe Alblas, Christian Geisnæs, Casper Sejersen og Getty Images/All Over Press PRINTER Rosendahls Bogtrykkeri A/S // PRINT RUN 5.800 copies // PUBLICATION DATE 16 September 2013

2

egmont stories september 2013

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

6

JOLLYROOM

18

Presale is a hit 4

14

Expansion to the north 30

DIGITAL

DO's and don'ts 34

Four days

at the coast

a helping hand from india 3

the way to the top of the app store

Babar Baig is a new consultant with Kids Media Digital. Having worked with apps and apps marketing for more than 10 years, he has been around since apps started to boom.

Photo: Steen Brogaard

4

egmont stories september 2013

Digital Days On this year’s Digital Days conference, Barbar Baig participated with a session about digital marketing.

Watch it on Insight.

The battle for consumer favour on the app market is escalating and many companies are breaking their necks to stay on top of the fierce competition. They have to think about marketing from the moment they start production. App expert Babar Baig shares his know-how within Egmont.

By Henrik Sundin

Babar Baig is a man who is passionate about his trade. Alongside his consultancy work for Egmont, he is also an entrepreneur and currently has his own app on the Danish market.

‘We currently rank number two on the list of most popular apps in Denmark, and it’s all down to sheer hard work,’ he explains.

During the interview with STORIES Baig stops to check his app’s sales ranking on the App Store. The page refreshes, and suddenly the app leaps from number two to number one in Denmark. He grins broadly: ‘This is terrific! We spent nothing on marketing that app, and now it’s the most frequently downloaded teaching app in Denmark. That proves how far you can go with a little hype and a solid product.’

When the first app stores saw the light of day almost a decade ago, no-one really took any notice.

‘Consumers weren’t ready for apps. At that time phones were for texting and talking, but although the market was negligible, the technology was in place. Then Apple launched the first iPhone and turned everything upside down,’ says Baig.

And the rest is history, as they say. Today we use apps for our phones and tablets on a mega scale, and new apps are popping up faster than anyone can follow. As Baig points out, once you’re in the app industry, there’s precious little time for R&R: ‘I had a two-week holiday last year when I turned off my phone and was completely off-the-grid – and in those exact two weeks Apple launched an IOS upgrade, and several competitors launched apps. I felt like I’d been left in the dust when I got back from holiday.

In this business revolutions can happen in just six months, and that’s what’s so fascinating,’ explains Babar Baig.

The product is key He will be with Egmont until the end of

‘In this business revolutions can happen in just six months, and that’s what’s so fascinating’

the year. His mission is to pass on his app marketing know-how and market two key apps in the USA: My Little Pony and Transformers, developed by Egmont on the basis of a licence from toy manufacturer Hasbro.

‘The advantage of marketing apps like My Little Pony and Transformers is that they are already strong brands with established names, which means a lot of the work has been done for you. It makes things both easier and cheaper. But at the same time you have to be focused and make the most of the fan base that already exists,’ says Baig, continuing: ‘But marketing isn’t the most important consideration when you launch a new app.

A good product is imperative. It’s no use spending DKK 10 million on marketing if you have a poor product. And if no-one ever downloads your app, you need to go back to the drawing board and look at the product, not the marketing.”

Classic PR accounts for a large part of app marketing, says Baig: ‘Getting a few journalists to review your app can make a huge impact – but you also have to be certain your product does what it claims.’

Scandinavians use apps on a grand scale.

A particular characteristic of the Nordic app market is users’ apparent willingness to spend money on apps. This is unique compared with

other European countries, some of which have been deeply mired in the financial crisis.

‘In countries like Spain, people only download free apps. This shows how the app market closely reflects trends in the rest of society,’ Baig explains.

This summer Egmont Kids Media kickstarted its Hasbro campaign in the USA, now up and running smoothly. My Little Pony reached fifth place on Apple’s American app store for book applications. It tops the list in Norway, and revenue climbed 50% from July to August.

to the top of the app store 1. Love your app. If you don’t like your own app, why should anyone else?

2. Market your app to established customer groups, eg, Facebook groups.

3. Get journalists to review your app – and hope for a good review.

4. Execute speedily: throw yourself into your project and learn as you go. Development will inevitably outpace you, so you can’t prepare yourself for everything.

5. Listen to users. Continually modify and improve your product to give users the best possible experience.

Facts • Every day 4,000 apps are launched worldwide.

Half a million apps in the App Store have never been downloaded even once.

• The number of mobile devices will exceed the world’s population in 2016.

5

'You don’t make it to the top

by working 9 to 5' One of Egmont’s unchanging goals is to create and maintain leading positions in all our markets.

Our new partner, Jollyroom, is on the same mission.

And its company founder, Ole Sauar, burned the midnight oil for his success.

According to Ole Sauar, Jollyroom will beat the competition by offering fast delivery and many products. A great many products, in fact.

Today Jollyroom represents over 400 different brands – including a few developed in-house.

Ole’s office is located above the warehouse stuffed with Brio prams and Britax car seats, behind Jollyroom’s photo studio and customer service area. This is where he tells how boredom at school sparked his dream of one day running his own business.

‘To escape that world of sitting passively listening, I had to succeed with my own business before leaving upper secondary school. Otherwise I’d be in serious danger of ending up in business school,’ Ole explains.

Dedicated paper boy

By Niels Almer

I meet Jollyroom’s Norwegian founder, Ole Sauar, in a venue far removed from the usual Egmont setting. Bustling editorial teams, stacks of paper, and walls strewn with drawings have given way to piles of prams, carry-cots and children’s wear towering from floor to ceiling in the large – but soon to be outgrown – warehouse just outside Gothenburg in Sweden.

Sparked by boredom Ole Sauar started his first business, Viking Computer, while attending his upper secondary school maths and geography classes in 1996.

Things have accelerated since then, and this spring Egmont became a partner in his latest enterprise, Jollyroom.

For 2½ years Jollyroom has sold baby equipment to Swedish parents, mainly online.

Located in Gothenburg, the central warehouse ensures speedy delivery within Sweden and, in time, to all Scandinavia. Copenhagen and Oslo are equidistant from Gothenburg.

6

egmont stories september 2013

He was 17 when he set up Viking Computer in his parents’ basement. The year was 1996, also known as Internet Year Dot. So the business model was mail order and the primary marketing channel teletext. The seed capital came not from a venture capitalist, but from a source as modest as five years of savings accumulated from two to three daily paper delivery rounds. A sum that over the years had grown to NOK 100,000.

‘I hit the mark with Viking Computer,’ says Ole. ‘We sold computers, PC loudspeakers and CD ROMs at a time when new versions of Windows were turning computers into “multimedia machines”, as they were called.

People were clamouring for bigger screens and more RAM. And many buyers were data enthusiasts who dared attempt the first online transactions.’ This meant Ole got a handle on e-commerce from the very outset, which makes him a veritable expert in the field.

‘Purchasing and logistics haven’t changed over the past 10 years. And the processes for buying baby equipment are really no different from those used for our computer components in the 90s,’ he points out.

‘The fundamental difference between then and now is volume and speed.’ The business Ole started in a basement in 1996 would have been impossible with today’s insistence on size and rapid growth. Just two months after Jollyroom’s launch in 2011, the warehouse boasted a stock of 7,000 different articles.

Today that figure exceeds 20,000. STORIES visited only three days after Jollyroom had opened its virtual doors to Danish customers.

The Norwegian outlet started a year ago, and the Finnish opening is slated for the autumn – in plenty of time for the Christmas rush.

A fresh start After a few successful years with Viking Computer two things happened: the computer components market started to consolidate, and Ole started to make mistakes.

‘I could see I lacked the experience to take it to the next level on my own,’ he says. The solution was a merger with Komplett and Norek, where he was tasked with building up the business in Denmark and Sweden.

But after tasting success first with Viking Computer and then with Komplett, whose revenue growth in Sweden and Denmark rocketed from zero to NOK 1 billion, what is driving him to take on yet another enterprise?

Ole believes he has a unique opportunity to replay his earlier moves but with the wisdom that comes from hindsight and some expensive mistakes.

‘It’s also highly motivating to set your own goals and achieve them through your own efforts,’ he explains.

Ole’s teenage dedication to his newspaper routes seems to have stuck with him, even as he rounds 30. Dedication is a must for running such an ambitious enterprise as Jollyroom.

This dedication also rubs off on the company culture in the warehouse outside Gothenburg.

Everything that can be measured is measured – from delivery time to the time customers have to wait for a refund – all for the

Digital Days On this year’s Digital Days conference, the theme was ‘digital number one positions’.

Watch all keynotes on Insight.

Ole Sauar (34) (34) started his first company, Viking Computer, when he was 17 years old. Viking Computer was amalgamated with Komplett and Norek in 1999. Ole then built up Komplett in Sweden and Denmark before selling off his share and throwing himself into baby equipment in 2010.

Afterwards, Ole built up Komplett in Sweden and Denmark, sold his part of the company and launched into baby equipment in 2010.

single-minded purpose of outstripping the competition.

Then Egmont arrived Jollyroom is doing well, generating annual growth that the rest of Egmont can only dream about. In fact, Ole actually had no need for more investors when Egmont arrived with its bag of money.

‘I honestly knew very little about Egmont before this, but I soon spotted the potential for good synergies. Egmont’s success pivots on knowing how to reach consumers in the right way with the right story. And many Egmont customers are also Jollyroom’s customers.’

Jollyroom has already worked with TV 2, klikk.no and various magazines. After getting to know Egmont better, Ole has also duly noted Egmont’s focus on ethical supply management, especially as regards Asian manufacturers – a practice that is difficult to organise systematically in a smaller business.

Entrepreneurial DNA

Facts • Jollyroom is a Scandinavian online store offering the market’s largest range of products for children and babies.

• The company started in 2010. Jollyroom.se was launched in January 2011.

• 50 employees from throughout Scandinavia.

• All employees are part of Jollyroom’s profitsharing scheme.

• The target group is mothers-to-be and children under 12.

• The aim is to be the leading online store for children’s products in the Nordic region. Jollyroom has already attained this position in baby equipment in Denmark and Sweden.

However, although all is going well now, the coin does have a flip side.

‘For the first 18 months after starting Jollyroom, my life was a non-stop cycle of eating, sleeping and working, with work predominating, of course. It was tough, and I’d almost bitten off more than I could chew, but I knew we’d never be number one if I was only prepared to work from 9 to 5. We had to expand if we wanted to seize that vacant leading position. And growth will cost more in five years’ time than it does right now.

Although Ole has never set foot in a business school, he can easily conjure up/ produce a razor-sharp market analysis: ‘Family-owned shops still make up the bulk of the Scandinavian market for baby equipment so there’s no single big player.

That makes it quite a bit easier to establish a commanding position that will stand us in good stead when a wave of consolidation sweeps over us – as it inevitably will,’ he says.

In 1996 Ole spotted the need for computer components, and in 2010 he projected that the baby equipment market was the right one to plunge into.

Determination, hard work and a strong sense of intuition seem to be at the heart of a serial entrepreneur’s DNA.

7

Elisabeth Vold Bjone's notebook sketches are transformed into wonderful book covers at the Oslo office. Photo: Eirik Urke

Judging books by their covers It may be the inside that counts, but it’s the outside that catches the eye.

STORIES has looked into the importance of book covers.

By Mads Moltsen

The front cover of Brun mands byrde, Hassan Preisler’s socially critical and highly acclaimed debut novel, shows Preisler posing with a green umbrella against a screaming-yellow background in a red jacket, blue trousers and purple shoes. A tongue-in-cheek nod to the children’s classic, The Story of Little Black Sambo, the story of an Indian boy who is forced to surrender his clothes to four hungry tigers (spoiler alert: Sambo cheats the tigers at

8

egmont stories september 2013

the end). The cover of Hassan Preisler’s book is eye-catching. We cannot ignore it. And this makes all the difference when books hit the bookshelves and have to vie with hundreds of other titles for consumers’ attention.

The cover creates a universe We shouldn’t judge a book by its cover. No, of course not, but neither should we underestimate its importance, because it often gives readers their first impression of a book.

A cover should preferably pique a person’s curiosity.

‘The cover is something we spend an awful lot of time on. Before deciding on this cover, we’d considered at least 20 other versions,’ says Sune De Souza Schmidt-Madsen, editor at Lindhardt og Ringhof, his gaze falling on Hassan Preisler’s book.

‘The main reason our choice fell on the Little Black Sambo-inspired cover was its eyecatching appeal, and we haven’t regretted our decision. The cover has been reproduced all over both the social and the print media, and has created a persona for Hassan that he can

play on during the book tour. It’s been brilliant being able to build a universe around the book,’ De Souza Schmidt-Madsen explains.

Atmosphere is important One person who designs book covers daily is Norwegian Elisabeth Vold Bjone, who has worked as a graphic designer for Cappelen Damm since 1999. With about 150 front covers to her name, she has long since mastered the art of letting her creativity flow and leaving her mark on myriad book covers.

‘Whenever I get a book into my hand, I prefer to read it first, because it’s important to know the story and get an idea of the book’s atmosphere. While I read, I take notes and make small sketches in my notebook. Then I start looking for images and decide what style suits the book,’ explains Elisabeth Vold Bjone.

It is hard to define what makes a book cover work. The attention-grabbing effect is one aspect – the presence of small, subtle details that only make sense at the turn of the last page is another.

‘I sometimes include a few small hints on

Did you know?

Cappelen Damm is Norway’s largest book publisher.

The publishing house is co-owned equally by Egmont and Bonnier.

Egmont and Bonnier co-own the publisher equally.

It is a good sign when Elisabeth Vold Bjone’s covers are also used for the paperback edition, as was the case with Natten drømmer om dagen.

Hassan Preisler in Little Black Sambo outfit on the front cover of Brun mands Byrde.

Photo: Peter Morten Abrahamsen

Photo: Elisabeth Vold Bjone

‘It’s been brilliant being able to build a universe around the book’ Sune De Souza Schmidt-Madsen

the front cover. When readers have finished the book and look at the cover, they have an “aha” moment when they spot the reference,’

Astrid Nordang, the author of Eva Dunkel, selected the cover from the numerous versions proposed. She was particularly taken with the pale stripe at the top.

Photo: Elisabeth Vold Bjone

Elisabeth Vold Bjone explains. Her prime duty is to arouse the reader’s curiosity. If consumers pick up the book, look at it and touch it, then she has done her job right.

Developments in digital media and rising e-book sales mean the digital format has to be incorporated into the design process.

Therefore Elisabeth Vold Bjone always tries to design a cover that also punches through in a small format on the net. She often has to design several different covers to be passed on for the author’s and editorial team’s approval. Capturing the exact look that the book’s creators have intended for the cover can be quite a challenge. ’We simply can’t go through with this!’

Indeed, choosing the perfect front cover can be an enormous challenge, says Sune De Souza Schmidt-Madsen. Although Brun mands byrde currently boasts a bestseller ranking, the editor was somewhat dubious when he first held the book with the bright yellow cover: ‘After the book’s amazing reception it’s easy

to stand here and rationalise in retrospect, but I must admit my immediate reaction to the cover was, “whoa, we simply can’t go through with this”.’ He almost got cold feet and chose a less provocative cover depicting Hassan Preisler wearing a suit in the middle of the Danish countryside.

‘But Hassan loved the Sambo cover, so we took the chance,’ the editor explains.

Apart from the author’s enthusiasm for the front cover, it was chosen because it is a good match for the book’s universe.

‘Little Black Sambo was actually one of the sources of inspiration for the book. Photographer Peter Morten Abrahamsen had the idea for the cover, and to be honest, we were a little concerned that it might be too weird.

But we agreed that it was better to meet the reader with levity than with gravity,’ explains De Souza Schmidt-Madsen.

It proved a good decision. After several appearances in a Little Black Sambo costume, Hassan Preisler has created real interest in the book, which already looks set to become one of 2013’s biggest successes.

9

hans Christian Andersen in new clothes At the end of December 2012 Nordisk Film staged its first live event.

The second chapter of Nordisk Film’s live entertainment venture tells Hans Christian Andersen’s fairy tales in an unprecedented way.

By Nanna Mosegaard ‘Coming from the world of film, I’d say the best way to describe the show is as a good Pixar film. A film children and adults alike can enjoy together without it being labelled either children’s or adult entertainment,’ explains NF Live director Frederik Juul as he talks about the show H.C. ANDERSEN, NF Live’s second major production following the theatre concert Hey Jude, which opened on 28 December last year.

H.C. ANDERSEN is a show that engages all the senses in a visually spectacular show, says Juul: ‘Fifteen artists appear on stage, recreating the fairy tales in a variety of forms from ballet and electric boogie to acrobatics. They perform against a dazzling background of stage set projections and what can best be termed 3D-effects – except nobody has to wear glasses.’

The show universe revolves around some of Hans Christian Andersen’s best-known tales, and reworks classic storytelling into the fabric of modern narrative. For Frederik Juul, being allowed to work with the famous poet and author is a true gift: ‘In Denmark I think we’re prone to take Hans Christian Andersen for granted, and that’s a shame. It’s high time to bolster the sense of national pride that Danes otherwise are so keen to demonstrate in many other contexts. I hope this production will help do that.’

The show stars the internationally renowned Danish actor Nikolaj Lie Kaas as the virtual narrator and features music by Søren Huus and Coco, some of the most talented artists on the current Danish music scene.

10

egmont stories september 2013

‘With such varied art forms as music, electronic stage design and a virtual narrator’s voice, making all the pieces fit has been something of puzzle. Fortunately, the team are young and level-headed, and their energy has been unlimited even when the pressure’s been on,’ says Juul.

‘In Denmark I think we’re prone to take Hans Christian Andersen for granted, and that’s a shame’

H.C. Andersen has been produced in association with Steen Koerner and the group of artists Big City Brains, and is based on six world-famous fairy tales brought to life from the original pen of Denmark’s national poet in a magical virtual universe of theatre, dance, 3D-animations and music. The show will play in Tivoli, Copenhagen during the autumn.

Photo: Henrik Sørensen

FAKTA NF Live is the business area of Nordisk Film that produces live entertainment. Its first show, a gigantic theatre concert called Hey Jude, was inspired by classic Beatles songs and sold 58,000 tickets.

Press

forward Nordic Supply Chain consolidates Egmont’s magazine production and saves millions of kroner in production costs.

By Ann-Sofie Senger

Over DKK 300 million. That is what it cost to produce ALT for damerne, MANN, Hjemmet and all Egmont Magazines’ other publications in 2011.

Until the autumn of 2012 in-house printing plants in Denmark and Norway produced some of the magazines, but they had to be closed down when the solution became clearly too costly.

That sounded the start of Nordic Supply Chain (NSC), a unit in the magazines division.

NSC constantly monitors what’s going on as regards paper supplies, printing facilities and shipping rates, all in the hopes of reducing the costs associated with getting the magazines from the editorial offices to shops and then to readers. The purpose of the project is to create a more sharply focused and more competitive magazine business.

Trust and community across national borders Since NSC was launched, project progress has exceeded expectation. The cooperation has created a sense of community and concern for the entire Nordic business. Further, new costsaving opportunities are constantly emerging, for example, in terms of shipping costs.

‘This is the first time we’ve had to embed such a comprehensive collaborative effort across the Nordic countries. At NSC we’ve worked hard to move away from the old editorial culture and promote new, common guidelines and administrative procedures,’ says NSC director Lars Gungaard, who has been involved with the project from the outset.

12

egmont stories september 2013

‘This is the first time we’ve had to embed such a comprehensive collaborative effort across the Nordic countries.’

High volume and streamlined production generates savings Eight NSC project managers are currently working across Norway, Sweden and Denmark. Their common goal is to streamline production in the Nordic countries. In the past, the editorial teams had a degree of contact with the printing plants, but this contact has passed to NSC. The eight project managers are thus the link between the editorial teams and five new external printing facilities in Denmark, Sweden, Germany, Estonia and Poland.

This enables NSC to group production into larger orders before handing them on to the printing plants. This saves Egmont a lot of money, because high volumes mean lower costs.

The magazine formats and paper quality have been standardised to create economies of scale. The Nordic magazines used to work

with 17 different magazine formats. Now there are only two. The number of paper types has also been reduced from six to one.

NSC will soon be buying paper direct from suppliers if it proves cheaper than using the printing plant as a middleman. This might translate into truly tangible cost-savings, as paper accounts for 60% of production costs.

A future beyond Egmont too The unit’s ambitions are not limited to the Egmont setting. Next year NSC will explore the possibilities of producing publications for customers not competing with Egmont.

As a result, NSC’s expertise can be used to generate new business as well as reduce Egmont’s costs.

NSC’s development drive is strong, and its managers think constantly in terms of further streamlining the project whose everyday focus is to serve as a common link across editorial teams and country boundaries in Egmont Magazines.

From local embedment to crossword specialist Initially, local NSC project managers will deal with magazine production in their own local area. However, the aim in future is for them to work more closely across the unit. For example, one project manager will specialise in producing all Nordic magazines that share certain characteristics, high-profile magazines or crossword publications, for example.

Lars Gungaard is Director of Nordic Supply Chain and has been with the project since the beginning. Photo: Steen Brogaard

13

Seat number

29,000

In April Nordisk Film acquired the Norwegian cinema chain Oslo Kino, thus adding 15 more cinemas to its line-up. The familiar comfort of a darkened cinema still seems to hold sway in the heightening competition for consumers’ media time.

By Niels Almer

FActs • Oslo Kino runs seven cinemas in downtown Oslo plus eight in the Oslo region and on the west coast of Norway.

• Three million guests visit Oslo Kino every year.

14

egmont stories september 2013

‘Digitisation, 3D sound and better screen images are obviously part of our ongoing product improvement, but at the end of the day, it’s the atmosphere guests come for. Intense emotions in the dark. That’s the atmosphere we want to be ever-present,’ says John Tønnes.

In April the ink drying on the contract for Oslo Kino marked one of the biggest investments in Egmont’s history. Nordisk Film suddenly became the second-largest cinema operator in the Nordic region and, with a total of over 29,000 cinema seats, a market leader in both Denmark and Norway.

John Tønnes, general manager of Nordisk Film Cinemas, offers his take on why cinemas are the right place to expand the media business at the moment: ‘Nowadays you can do everything from home, but entertainment and social activities done in the company of others require going out somewhere. Video films and television – home entertainment, in other words – are constantly being replaced by online options.

The cinema, on the other hand, is an out-onthe-town experience outside the home whose unique atmosphere is hard to substitute.

The more you can do from home, the more you want to seek out social activities,’ John believes.

His gut feeling seems to be right. European box office figures have been rising since 2000 – and that at a time that has also seen the arrival of DVDs, iTunes, HD TV, podcasts, Facebook, YouTube, smartphones and tablets.

‘Cinemas still offer a good entertainment option outside the home, because they are an economical alternative to other more expensive experiences and cultural activities.

The desire to go to the cinema has never been greater. It is still film-lovers’ preferred way to watch films,’ he explains.

Size is important In the cinema world, as with so much else, size does matter. Thirty-three cinemas and nine million guests a year have given the new Nordisk Film Cinemas greater buying power and negotiation clout with suppliers.

International eminence, efficiency and professionalism are key words at a time when other players in the cinema market are increasingly consolidating across national borders and digital distribution has entered the arena.

‘The big cinemas, which used to enjoy an exclusive standing because the number of analogue film copies was limited, are being pressured from all sides by far tougher competition on the same films. So we want to leverage our size to make sure we pay a fair price for the films we show, for example.

The price must reflect the greater competition and the high revenue we are instrumental in generating for the rights holders,’ says Tønnes.

Norwegian domestic market Already commanding almost half of the Danish cinema market, Nordic Film Cinemas cannot acquire more cinemas without violating Danish competition legislation.

This makes the north an obvious option for Egmont companies looking to expand their business.

‘The Nordic market is already Egmont’s and Nordisk Film’s local market, so that is the one we understand best,’ says Tønnes.

‘We already have a presence in the Norwegian cultural landscape, which in many ways resembles Denmark’s. The range of films is largely the same – with a considerable emphasis on local titles in both Norway and Denmark – and the guests like to be treated in the same way. There are relatively few practical and cultural differences.’

When the two large cinema chains merge, their employees on both sides of the Skagerrak will gain opportunities to learn from each other. Oslo Kino has made great progress in automating and digitising many processes, and its Danish colleagues can certainly pick up a trick or two from them. On the other hand, Denmark has made more headway in service concept development and training, so this is an area where Danish colleagues can offer inspiration in return.

An analysis of cinema operations in Denmark and Norway has been launched to identify best practice in both countries.

The analysis will probe all aspects of the cinema business, including investment policy and plans, technology choices, internal procedures and processes, guest services, ‘good hospitality’, employee development and sales concepts. The aim is to raise the bar and introduce best practice and target management in both countries.

Danish cinemas move into a time of exciting development and higher investment.

The primary changes resulting from the acquisition are at the executive level. The overall purpose of the joint Nordic management team established as of August is to safeguard and develop all aspects of the cinema business, with the focus on guests, customers and the market in general. The cinemas must work together effectively and closely across the cinema organisation and suitably in line with Nordisk Film and Egmont.

‘As a secondary target we have focused on providing a good organisational platform for efficient operations, driving fast technological and systems development, setting clear priorities for growth opportunities in both countries and increasing mobility and dynamism within the organisation,’ Tønnes explains.

The new management group has been specifically tasked with ensuring that we exploit the economies of scale enabled by the acquisition and the amalgamation of the two national cinema organisations.

Nordisk Film’s cinema business has doubled its power overnight and must learn to use its newfound strength correctly. Although the ultimate goal is to position Nordisk Film’s cinemas among the top 10 European chains, the initial focus is on getting the acquisition of Oslo Kino to function and grow within the existing framework – the framework that we consumers recognise as the calm and space for big emotions in the enfolding darkness of the cinema.

More on Oslo Kino on the following pages ▶

New owner – same workday However, to date Oslo Kino’s 300 employees have noticed little difference in their working days under the new ownership. The Norwegian cinemas are still run locally, with a strong Oslobased Norwegian management and highly qualified local cinema managers in each cinema.

The range of films is still decided in Norway, and this will not change even as the Norwegian and

Since the acquisition Nordisk Film Cinemas has taken over Scala Bio Nykøbing in Denmark, and Oslo Kino has made lease agreements with Ålesund municipality in Norway regarding a further two cinemas.

15

Klingenberg Centrally located in the heart of Oslo, this cinema has a large repertoire and an enormous selection of films. It screens both challenging quality films and titles with broad mass audience appeal.

Saga When the children clamour for a trip to the cinema, parents should key in Stortingsgata 28 into their GPS. Located in the heart of Oslo, the Norwegian capital’s leading children’s and family cinema is the perfect place for a family movie outing.

Colosseum The dome-shaped cinema is Norway’s best-known cinema and venue for the biggest film releases.

Although the Oslo Colosseum does not stage gladiator fights, it does guarantee great entertainment.

Gimle This cinema, steeped in traditions dating back to 1939, shows quality arthouse films. The cosy cinema also shows live opera and ballet transmissions and enjoys the highest level of customer satisfaction.

16

egmont stories september 2013

Vika 2013 is a year of renewal for Vika.

The cinema aims to be the preferred meeting place for adult audiences and cinema aficionados. It will provide a backdrop for both broad and narrow films, debates, festivals, pre-release viewings and much more.

Asker Asker Kulturhus houses a five-storey cinema famed for its luxury theatres with leather seats. The great atmosphere particularly attracts families with children, who visit the cinema in droves.

Ringen This new state-of-theart cinema offers a large selection of Norwegian and international titles. Ringen peaks the comfort meter with a full 120 cm between seat rows.

Askim Housed in Askim town hall, Indre Østfold’s largest cinema has about 51,000 visitors a year. It shows films for all ages and serves as a meeting place for the residents of Askim and the surrounding region.

Kilden Guests to this enormous multiplex cinema boasting a whopping nine screens are assured the latest film titles. Furthermore, Kilden offers opera performances transmitted live from The Metropolitan in New York.

Aladdin Halden’s Aladdin Kino, rich in tradition, dates back to the 1920s.

The cinema’s venerable age creates that unique atmosphere only found in old cinemas.

Horten Horten Kino has a long history dating back to 1907. It is now a modern cinema in the heart of Horten and a meeting place for the town’s inhabitants.

Caroline Caroline Kino lies in the heart of Kristiansund. Renovated in 2010, the pleasant facilities give guests an enjoyable cinema experience from the moment they step through the door.

Verdal Verdal Kino has a lot of local competition to contend with and must therefore excel in offering films to suit all tastes. Creativity and professional pride permeate the cinema.

Hønefoss Hønefoss Kino is more than just a modern cinema. It also plays a big role in the cultural life of Hønefoss, and the cinema’s cosy atmosphere has earned it a strong local following.

Symra Modernised in 2010, the cinema welcomes the youngest and oldest members of the family to weekly baby and senior screenings in modern facilities. Children’s and family films are its speciality.

17

Now we sell films before they wrap!

Scandinavian films are popular abroad. Nordisk Film’s distribution company, TrustNordisk, boasts a strong pre-sale line-up in almost all film markets, and most Nordic titles have already made money even before they wrap. These are good results. However, the pressure of great expectations can reduce the scope for niche film production.

By Henrik Sundin

18

egmont stories september 2013

Rikke Ennis is CEO of TrustNordisk, which sells Scandinavian films all over the world. TrustNordisk works closely with Nordisk Film distribution, which handles distribution in the Nordic region.

19

Danish films are a growing export. The head of Zentropa, Peter Aalbæk, recently announced that 60-70% of Zentropa’s annual revenue is generated in Cannes, and if he includes the other big film festivals, the percentage is nearer 80%.

A considerable amount of sales work is done before a film is even finished. But how do you sell the fur before you’ve shot the bear?

And can we sustain a unique Nordic style when the bulk of viewers come from elsewhere?

Festival sales In the old days it was straightforward. Major Danish films were sold in the traditional way: the release was timed to occur after one of the major festivals, when reviewers and potential distributors were ready to assess its chances of attracting an audience. If you had produced a good film that may also have won an award or two, sales went well. If the film was poor, so were box office sales.

The world today looks different from a Scandinavian perspective. After a few years of mega international box-office hits, Danish films have become synonymous with quality.

‘Nordic films – and Danish films in particular – are immensely popular. Thanks to successes like The Killing, A Royal Affair, Kon-Tiki and popular directors like Bier, Vinterberg and von Trier, other countries are showing great interest in buying the distribution rights for Danish films,’ explains Rikke Ennis, CEO of Nordisk Film and Zentropa’s international sales company, TrustNordisk.

In the course of just a few years, pre-sales have thus become TrustNordisk’s predominant sales approach.

‘The phenomenon of pre-sales has only been around for two or three years. We take posters, stills and a promotional video to a festival and use the hype we can create to sell the film. This frees us to sell the film without depending on reviewers’ opinions, which don’t come until the final release,’ says Rikke Ennis.

On the other hand, the film cannot win any awards until it is finished. And award-winning films still sell well. For this reason TrustNordisk asks a higher sales price for films that win awards or sell more tickets than projected.

‘Film pre-sales still pose new challenges, because we have to devise a marketing strategy at an early stage – essentially from the time we start production,’ explains Rikke Ennis Responsibility for high quality However, the successful track record makes demands on Nordic film production, and film-makers cannot always meet buyers’ expectations.

‘Clearly, buyers expect the films to make good money. A sudden dip in successful

20

egmont stories september 2013

Cannes The festival in France is undeniably one of the biggest film marketplaces and essential for a successful year at TrustNordisk. And selling films at a film festival is hard work. Many think Cannes is only about glamour, the red carpet and lots of jaw-dropping dresses.

‘Of course that’s all part of it too, but from our point of view Cannes means hard work. It’s a huge market that calls for shouting loudest and being best showcasing your projects to attract the film industry’s attention,’ explains Rikke Ennis.

This year the Norwegian thriller Pioneer was well received, as was Lars von Trier’s upcoming Nymphomaniac, which is currently as good as sold out – that is, sold to all relevant countries. In 2013 TrustNordisk also experienced keen interest in The Keeper of Lost Causes and Kristian Levring’s new western, Salvation. The global market can also look forward to the release of an animation featuring Sweden’s Alfons Åberg.

Danish films would directly impact our presales. Fortunately, the films have done more than merely uphold the past couple of years’ success. Our brand as film producers has actually improved, as last year’s Oscar nominations, etc, underscored,’ says Rikke Ennis.

The paradox is that the Scandinavian film industry risks drowning in its own success.

As sales increase, so does the production cost of each film and thus its dependence on international sales. This may lead to more streamlined films.

‘The industry will become increasingly “blockbusterised”, making it hard for narrower films to get made. A film’s international potential suddenly becomes a factor when you’re assessing a script.’

Scandinavian exports TrustNordisk is emerging as a main player on a grander scale. ‘We take up a crazy amount of space on the European map relative to our size. We’re almost up there with leading film nations such as France, Great Britain and Italy, and Scandinavia is consistently moving higher up the pole,’ says Rikke Ennis.

The biggest feature films are sold to over 50 countries as pre-sales.

‘I think it’s because we’re good at training film people. On top of that Scandinavia has a good narrative tradition. Our means of storytelling is quite different from the rest of Europe’s, and there’ll always be a market for stories,’ Rikke Ennis concludes.

Kvinden i Buret (The Keepers of Lost Causes) Danish actor Nikolaj Lie Kaas plays the troubled chief detective Carl Morck in this exciting thriller.

Kvinden I buret, which is based on Danish writer Jussi Adler-Olsens crime novel of the same name, premieres in Denmark in October 2013.

‘Our means of storytelling is quite different from the rest of Europe’s, and there’ll always be a market for stories’

Nymphomaniac Lars von Trier is back - this time with a poetic life story of the nymphomaniac Joe (Charlotte Gainsbourg).

Von Trier releases his latest film addition on 25 December in Denmark.

Photo: Casper Sejersen

Photo: Christian GeisnĂŚs

Hokus Pokus Alfons Ă…berg The little boy with the good-natured dad can soon be experienced on the big screen in Hokus Pokus Alfons Aaberg. Alfons insists that he is old enough to get a dog, but dad is not quite as convinced. The movie premieres August 2013 in Sweden.

The Salvation The Salvation is no less than a western with a Danish touch. Mads Mikkelsen portrays the Danish emigrant John, who, along with his wife and son, arrives to the USA, where the family becomes the victims of a terrible crime. Witness the story in cinemas in 2014.

Photo: Joe Albas

21

is reading for

Pleasure Under Threat?

Earlier this year Egmont UK launched Reading Street – a national study to investigate what’s happening to children’s reading in family life and to understand what will inspire children to read in the digital age. The results of the study are being shared publicly through an initiative called Reading Lives, a conversation about reading and the public face of Egmont UK’s consumer insight work.

By Reeta Bhatiani

Egmont UK publishes books, magazines, e-books and apps to children and their families in the UK. The company is part of Egmont's Kids Media division.

22

egmont stories september 2013

We’ve all seen the headlines saying children’s reading for pleasure is under threat. Now, more than ever, reading is hitting the news in the UK and around the world. The percentage of children reading for pleasure on a daily basis has dropped from 40% in 2005 to 30% in 2012 (Source: UK’s national literacy trust).

It’s on the government’s agenda in the UK, libraries are closing, the UK is way down in the world literacy rankings and digital devices are in the firing line.

Yet children’s books are still being bought – 73m were bought in the UK alone in 2012, everyone agrees that reading is important, and reading for pleasure is cited by the OECD as one of the main predictors of a child’s success in school and in life.

As one of the UK’s leading children’s publishers, Egmont UK wanted to look behind the headlines to find out if reading for pleasure really is in decline or if it is simply changing to reflect a new media environment.

And why reading thrives in some families but is challenging in others.

Alison David, Consumer Insight Director at Egmont UK explains: “Reading Street is an on-going study into understanding children’s reading for pleasure set firmly in the context of family life. It’s a key strand of our consumer insight work here in the UK. Since the summer of 2012, we’ve been following 12 families spread across the UK - a mix of lower, medium and higher reading engagement and a mix of lower and higher digital connectivity. We wanted to get

really close to families to unpick the complex issues and challenges around reading and children.

“The insight we’re gaining from Reading Street is touching all aspects of our business.

We’ve had enormously rich seams of insight, around children’s attitudes, digital media, magazines, what helps reading, retail patterns and preferences and more. That insight is feeding into our publishing programmes and product decisions, in books magazines, licensing and digital. It’s also informing our strategy, planning and new product development. Our aim is to find out what works (or doesn’t) and shed new light on how we can bring the magic of stories to more children,” she says.

Reeta Bhatiani, Communications Director explains more about Reading Lives: “Essentially our Reading Lives initiative is a conversation about children’s reading driven by social media. Our Reading Street study sits at the heart of that conversation but we’re also sharing our expertise and opinions as children’s publishers from picture books to digital to magazines character publishing. So far we’ve created and shared two chapters from Reading Street. ‘Reading and Home’ and ‘Reading and School’ have been released with a third to follow in the autumn called ‘Reading and the Digital Age’. Each chapter is launched with a media relations campaign supported by the Reading Lives blog and on twitter.

So far the results have been just what

we hoped for, with the stories picked up by national and trade media and the conversation starting to build on social media.

We’re getting people’s attention with record media attendance at our media launch in January, interest from retailers and licensors wanting to find out more and an increase in requests for Egmont representatives to speak at national conferences like the Children’s Media Conference.”

If you want to find out more you can read Egmont UK’s blog at www.egmont.co.uk/ readinglives or follow Egmont UK on Twitter @EgmontUK #ReadingLives.

‘We wish to get close to the families to really understand the difficulties and challenges related to children's reading’

Main findings so far: Chapter One: Reading & Home Over half of parents wish they had more time for reading but..

• Enormous pressure on parents means role of parenting is changing and this is impacting reading for pleasure • Prioritising reading over other activities can put a strain on family harmony • Many parents don’t realise that reading for pleasure will bring their child the advantages they hope and strive for Chapter Two: Reading & School Teachers want to focus more on reading for pleasure but..

• Target-driven schooling and lack of time frustrate this desire • Education system sees reading as a skill to be mastered rather than a pleasure to be enjoyed • Parents step back from reading too soon and hand over to school - when children are age 7 or 8 • 82% of teachers believe the government is not doing enough to encourage reading for pleasure among children

23

The Egmont Foundation demands that quantifiable success criteria be set for all projects receiving support, but to date the Foundation has not focused on systematically collecting knowledge about and communicating the effect of its charitable initiatives. This is one of the issues that the Foundation’s new analytical manager, Anders Kragh Jensen, has been hired to resolve.

Photo: Steen Brogaard

24

egmont stories september 2013

◀ Photo: Christian Als

The most

effective help Every year when the Egmont Foundation supports social initiatives for vulnerable children and young people, we must be certain that our efforts actually make a difference. Our newly hired analytical manager, Anders Kragh Jensen, is the man spotlighting the support work. It is his job to keep track of success targets, evaluations and – the biggest challenge of all: quantifying well-being and quality of life.

By Katrine Bach Habersaat He looks nothing like a number cruncher – someone who wants to convert everything into formulae and percentages. The new analytical manager is in high spirits and armed with infinite anecdotes about exciting projects as he invites us for coffee at the Egmont Foundation’s Aid and Grant Administration office. He may not look the part, but that’s exactly what he’s paid to do: measure the value of Egmont’s charitable work. Not always an easy task when it comes to children and young people in vulnerable situations.

‘It’s wonderful to be able to recount the story of a child who has benefited from the Egmont Foundation’s support. I love the stories myself because they go straight to your heart. But at the same time we have to examine and document what difference the support funds really make. For me that is the essence of my work for the Egmont Foundation’s Aid and Grant Administration: to ensure that the support actually works and has the best possible benefit,’ says Anders Kragh Jensen.

‘Serious life crises are the focus of our work. Some of these kids desperately need much better care and support than they get today. For example, children placed outside the home, many of whom grow up emotionally or psychologically scarred to lead difficult lives devoid of both qualifications and job opportunities. We must help and strengthen them so they can create good lives for themselves. This calls for innovative thinking, but should not be hit-or-miss. We have to evaluate and measure how the support works. Even if it seems almost impossible to quantify the lives of these disadvantaged children in measurable

terms,’ Anders Kragh Jensen explains, providing an example: ‘We have set a specific target for the Egmont Foundation’s signature project, Learning for Life: the percentage of children placed outside the home who complete a youth training programme must increase. We have set this goal because we know that insufficient schooling is the biggest risk factor for the development of this group and that education protects them against further marginalisation in the form of unemployment, crime and substance abuse. This puts education on a par with care and greater well-being for these children and young people.’

‘We know that insufficient schooling is the biggest risk factor for the development children in foster care’ A little rigid ‘Sometimes we have to be a little rigid in our thinking. It’s not enough for children to look like they’re doing better. We need to know their lives have genuinely improved. How, and what does that mean to the child? It means we have to set a standard for what “well-being” implies,’ explains Anders Kragh Jensen, taking the Egmont Foundation’s work for families affected by divorce as an example: ‘As a society, we know little about what

children need in this area and how we can best help them. So the Foundation’s aim in this field is to both support different types of initiatives and systematically collect and disseminate the experience and knowledge generated.’

More than money at stake It is important to remember that the Foundation and the recipients of support are not the only ones who grow wiser.

‘When we pass on our knowledge about the impact of our initiatives to professionals and volunteers working in the field, children and young people also benefit,’ the analytical manager explains, pointing enthusiastically at the Foundation’s new KPI model. It defines two overall targets for successful charitable work: the initiative must make a genuine, positive difference to the children and youth affected, and the good experiences must be disseminated so that even more children and youth can benefit from it.

‘Using knowledge as a platform for our work, we can help make a positive difference that goes way beyond the value of the money we donate. We can give everyone who works in this field more insight into which initiatives work and – equally importantly – which don’t.

Egmont has done this in its work with prisons, for example, making Danish prisons aware of their duty to take responsibility for inmates’ children. Starting next year, each prison will have a child counsellor, thanks in great part to the Egmont Foundation’s focus on the problem.

Serving as a laboratory and knowledge partner is a great privilege and one of the most exciting aspects of working for a charitable foundation,’ Anders Kragh Jensen concludes.

25

keeping children safe in a digital place Egmont’s Safe Internet initiative is to prevent online bullying and apps that run up sky-highbills.

By Mads Moltsen

Time to relax after a hard day’s work. The kids have been picked up and handed the iPad. Peace reigns. But letting the kids spend time playing games on the tablet or phone or logging on to online communities and social media networks is not without its hazards.

In 2011 an eight-year-old boy managed to spend DKK 10,500 playing a Smurf game on his iPod. Smurf’s Village, as the game is called, is free to install, but once installed, the game gives players the opportunity to buy ‘Smurfberries’ that they can use to advance further in the game. When the boy’s parents realised their son’s play was leading them to financial ruin, they contacted Apple, who refunded most of the money after a few weeks’ wait.

It is not unusual for free apps to charge real money for in-app currency, but children should not be able to effortlessly blow thousands of kroner on a game. In 2012 Egmont launched no fewer than 205 apps in the Kids Media division alone, and children and young people must be able to safely use Egmont’s digital worlds. Similarly, parents should be able to hand over their iPads to their children without having to break into a sweat or feel chronic paranoia at the thought of the astronomical phone bill that might lie in wait at the end of the month.

Safe Internet The world of apps is only one example of the developments in the digital world. We often hear that the world has shrunk. Clichéed perhaps, but nonetheless a reality. It has made it easier for users to meet each other, which is both good and bad. Good in that children and young people can make friends and connections across physical distances and different backgrounds. Bad in that individuals with illicit intentions have a larger, more anonymous interface to play with. For this

26

egmont stories september 2013

reason, Egmont has made Safe Internet a focus area of its social responsibility.

‘We are responsible for making safe digital products in the same way as for physical products. We must make sure the content our young users encounter is age appropriate,’ explains Egmont UK’s Sam Mawson, project manager of Safe Internet.

Together with his colleagues he has drawn up Egmont’s guidelines for online safety and good practice. Consisting of six principles, the guidelines are Egmont’s way of helping provide safe and reponsible online services.

Every Egmont employee involved with digital publications for children must comply with the principles and ensure they are put into practice.

Safer Internet Day One of the items on the programme of principles concerns raising awareness about internet safety among children and young people. Egmont UK does this in part by taking part in the annual ‘Safer Internet Day’ – an international project held once a year and aimed to promote safer use of online technology and mobile phones, especially among children and young people.

‘For Safer Internet Day 2013 we reproduced some easy-to-use safe surfing tips in two of our children’s magazines, and our digital publishing manager, Steph Gould, was interviewed on Safer Internet Day’s online radio show. We’re already working on next year’s event,’ says Sam Mawson. The aim is to encourage more of Egmont’s businesses to get involved in the next Safer Internet Day to be held on 11 February 2014 with the strapline ‘Let’s create a better internet together’.

Apart from raising awareness about safe internet conduct, Egmont wants to make sure children and young people do not come

Egmont and social responsibility Egmont has had a strong focus on social responsibility throughout its history. For many years Egmont has made donations to help vulnerable children and young people.

You can read more (in Danish) at www.egmontfonden.dk Egmont also focuses on using sustainable paper, ethical supply management, anti-corruption and other issues, and in 2013 signed the UN Global Compact. Read more about these topics at www.egmont.com/social-responsibility/

across inappropriate content on Egmont’s pages. But this is not without its challenges.

‘When you make a product that enables users to contribute content and interact with each other, you can never be entirely sure that what they meet is appropriate. This underscores the importance of having solid moderation and powerful reporting tools to quickly remove inapproriate content,’ Sam Mawson explains. He is deeply committed to giving Egmont’s young users a safe internet experience, and the aim of the Safe Internet project is for Egmont’s online worlds to be safe places to spend time, now and in the future. The specific Safe Internet guidelines are being formulated, and will be launched on InSight at the end of September.

The six principles that Egmont’s online products for children must follow: 1. Clearly indicate the age group for which the products are intended 2. Provide easy-to-use mechanisms for reporting problems 3. Market products for children responsibly 4. Ensure all relevant rules are complied with 5. Maintain a high level of IT security for personal data protection 6. Raise awareness of Safe Internet

Facts • Every week millions of children visit Egmont’s digital worlds, and the number is rising steadily • About 80% of the visitors are between 3 and 10 years old • The EU runs a programme to promote safe conduct for children on the internet. Read more at ec.europa.eu/information_society/ activities/sip • Safer Internet Day is supported by the EU’s Safer Internet Programme. Read more at • www.saferinternetday.org

27

An offer you can refuse With a new anti-corruption policy, Egmont aims to maintain its high standards of integrity and ethics for the way we run our business. Because we have to and because we want to.

By Maria Alsted Junget

‘But Egmont’s not corrupt!’, you’re thinking.

Media and entertainment are our business and we conduct by far the bulk of our activities in the Nordic countries, which occupy four of the top eight places on Transparency International’s Corruption Perceptions Index, which ranks countries based on how corrupt their public sector is perceived to be.

Nonetheless, we occasionally face dilemmas that could challenge our judgment.

This spring’s e-learning courses offered a couple of theoretical examples, but the STORIES editorial team did not have to dig too deep to find cases from Egmont’s world.

Frederik Honoré, Marketing Manager for Nordisk Film Distribution, works in the film distribution business, and as a major distributor, Nordisk Film Distribution helps set the agenda for this industry. Nordisk Film was among the first companies to reduce printed

28

egmont stories september 2013

advertising and transfer its investments into online media.

‘As a fairly big market player, we find that business partners contact us with offers. Not long ago I had to turn down an invitation to a three-day wine trip to Italy from a major Danish paper looking to groom our relationship. I love wine, but was in no doubt that this was going too far,’ explains Frederik, whose boss supported him in refusing the invitation.

An ethical history Although the anti-corruption policy is new, taking social and ethical responsibility is part of Egmont’s DNA. ‘When we select potential audit partners to help ensure acceptable work conditions in the Asian factories with which we work, we demand that they have an integrity policy. Otherwise we do not want

‘I love wine, but was in no doubt that this was going too far’ Frederik Honoré

them to audit our suppliers,’ says Charlotte Damgaard, Social Compliance Manager, who is responsible for ensuring that Egmont’s business partners comply with special rules and requirements when producing toys for children’s magazines, for example.

‘What the new policy does is set guidelines for us to follow. We’ve also introduced a

Charlotte Damgaard Anne Lose

Social Compliance Manager Editor-in-chief i EUROWOMAN

Did you know that...

• Egmont is committed to the UN Global Compact, which is a strategic policy initiative in which companies undertake to align their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption.

• Egmont is comprised by the UK Bribery Act, under which non-UK enterprises with activities in the UK can also be held responsible for acts of bribery committed in and outside the UK.

Frederik Honoré Marketing Manager - Nordisk Film Distribution

What does the policy cover?

Egmont insists on ethically correct conduct from staff and business partners alike.’

'Tag' me

• Bribery • Facilitation payments • Gifts • Restaurant visits and entertainment • Conflicts of interest

whistleblower system that enables staff to anonymously report any business procedures that go against our principles,’ says Helle Bach, Egmont’s Vice President, Corporate Human Resources. ‘At Egmont, staff have a great deal of freedom to plan their own work. With this freedom comes responsibility, and that’s why

Frederik’s story is not an isolated example. In the magazine industry, attempts to offer grease payments and gifts are everyday occurrences for the editor-in-chief of Eurowoman, Anne Lose, who has always had to deal with this type of issue. For example, during fashion week, suppliers vie for attention, and Anne feels she must constantly weigh up whether an invitation or favour is in [the] readers’ interest.

‘I got an e-mail from an online webshop with an invitation to buy goods for DKK 2,000 in their webshop if in return I “tagged” their clothes with their name on Instagram.

Naturally I turned down the offer, as it was a clear attempt to buy publicity,’ Anne explains.

Anti-corruption policy, guidelines, a

whistleblower system and e-learning are tools intended to help us all when dilemmas arise.

‘I fully understand that Egmont wants this policy, and as an employee, I find it helpful having something tangible to refer to and some guidelines that are non-negotiable,’ says Frederik Honoré, and Anne Lose agrees.

‘I enjoy a very open dialogue with my own boss and staff about bribery and gifts. I like having crystal-clear guidelines, and this policy provides an excellent support.’

Read more Find the policies and read more about the Global Compact at Insight.

29

ARCTIC RACE:

TV 2 launches cycling success in northern Norway The Arctic Race is a four-day cycle race along some of the world’s most scenic coastline – that of Lofoten and Vesterålen. The idea was the brainchild of TV 2 sports anchor and project manager Trond Ahlsen.

By Katrine Sæverud

'The biggest moment for me was hearing people cheering for TV 2 when we rode through the gates. Then I knew I was moved,’ confesses project manager Trond Ahlsen, who took the initiative to organise the first Arctic Race in history.

He divulges that the moment when tough guy Thor Hushovd sat tearfully with his daughter on his lap after winning was another deeply touching moment. Hushovd has had a rough year, struggling with numerous injuries and the disappointment of not being picked for the Tour de France. His club has paid large sums for him, and the pressure on him to deliver has been great.

Grey and cold The riders set out from Bodø on Thursday 8 August. The weather was oppressive, grey and cold, and Dutch Kenny van Hummel defeated the Norwegian favourite.

‘It was a difficult start. Lousy weather, and then some European or other took the lead on our own turf! But as we progressed via Svolvær, Stokmarknes and Sortland – the gems of Lofoten and Vesterålen – the weather, Hushovd, viewing figures and the drama got better and better,’ says Ahlsen, and TV 2’s head of sports, Bjørn Taalesen, praised the event to the skies:

30

egmont stories september 2013

Magical ‘Being present for the Arctic Race was magical. The reception along the route was fantastic, and the Nordlanders showed incredible enthusiasm. We had a Tour de France atmosphere all the way!’ says Taalesen.

We have to return to 2003 to find the origins of this magical event. A gang of TV 2 people, including the young Trond Ahlsen, sat planning an ambitious three-stage vision: first, establish Tour de France on Norwegian TV, then launch a Norwegian race, and finally a professional Norwegian event. Now all Norway needs is a professional team.

The key to success ‘The key to success was getting the ASO (Amaury Sport Organisation, ed.) on board as producer. The Norwegian sports organisation and public authorities weren’t interested. The ASO owns and produces the Tour de France, Vuelta a España and Rally Dakar. Every year they get about 35 requests to organise major cycle races around the world. The fact that they liked our ideagave us credibility and the network of competencies necessary to get sponsors and media support for the idea,’ says Ahlsen.

Once that was in the bag, we started on sponsorships and the media. Statoil topped

the sponsor list, chipping in NOK 30 million.

The three northernmost Norwegian counties contributed between NOK 30 and 40 million in total.

Other sources of funding included product placements and rights sales to TV channels, among them the world’s largest TV company, a Chinese broadcasting company, CCTV, with over 1 billion potential viewers.

Representatives of the TV company also visited Norway during the race to produce two documentaries, and Ahlsen and TV 2 have been invited to China to develop new concepts with their Chinese colleagues.

Ahlsen and Co. have thus clearly accomplished what the Norwegian ministry of foreign affairs has been struggling to do for three years. Since human rights campaigner Liu Xiaobo was awarded the Nobel Peace Prize, the atmosphere between Norway and China has been icy. There have been no signs of Chinese forgiveness until now.

Helicopters and MCs ASO ran the same programme as for the Tour de France: helicopters, MCs and planes were in place in northern Norway while the TV 2-owned outside broadcast team provided technical equipment and ground crew.

‘The pictures were astounding. No matter

Foto: Phillipp Hympendahl

31

TV 2’s sporting director Bjørn Taalesen, program managers Dag Otto Lauritzen and Mathias Skarpaas follow closely. Photo: Jørgen Remmen

Norwegian Thor Hushovd won Arctic Race after four exciting stages. Photo: Per Arild Berge

The field crossing the bridge in Leknes, Lofoten.

Photo: Jørgen Remmen

The pictures were wonderful, says executive producer Bernard Chaudot.

Photo: Per Arild Berge

TV 2 was very visible in the northern parts of Norway during Arctic Race. Photo: Jørgen Remmen

what angle we were filming from, the results were beautiful. Breathtaking nature, enthusiastic Nordlanders and a thrilling race,’ says AOS’s head of production, Bernard Chaudot, who also quotes the cameraman in the helicopter, who has filmed most of the world’s cycle races: ‘He said the pictures from northern Norway are possibly the most spectacular he’s seen since he started working in this line of business,’ Chaudot recalls. He also greatly appreciated the collaboration with TV 2 and the outside broadcast team.

‘Everyone was interested in learning,

32

egmont stories september 2013

exchanging ideas and solving problems.

Enormous enthusiasm,’ he says, already looking forward to next year.

No faith ‘When we first introduced the idea of an Arctic Race for northern Norway, they didn’t believe in it. They’ve heard so many lofty plans in the past. The only official international sports event held in northern Norway since 1940 was the world speed skating championships in Tromsdalen in 1990. But after the disappointment of losing the bid for the 2018 Winter Olympics, the

region rallied to establish the Arctic Race, overcoming as a community the scepticism and negative responses from departments and central bodies. Now northern Norway boasts the largest annual sporting event in Norway – every single year,’ says Ahlsen.

He is supported from an unexpected quarter. Harald Tiedemann Hansen, President of the Norwegian Cycling Association, spoke to NRK, the Norwegian Broadcasting Corporation, before the race ended: ‘This event has the potential to reach the stars!’

But Ahlsen, a down-to-earth guy, made the following comment on the success: ‘The most important thing about the Arctic Race is that TV 2 gets a product that boosts the channel’s credibility as well as a concept we’ve developed ourselves and high-quality content. Laudable programme concepts with a clear identity that involve people work well. We’ve created a winning concept with Arctic Race,’ says Ahlsen, warning against the trend towards focusing ready-made purchased programme concepts without local embedment and quality assurance.

VIEWING FIGURES Photo: Phillipp Hympendahl The Arctic Race captured an average viewing share of no less than 28.3% between 3 PM and 6 PM from Thursday 8 August to Sunday 12 August. On Thursday the viewing share had already reached 43.8%, largely because viewing generally was low that day. The event’s most popular day was Sunday, with an average of 129,000 viewers. The Arctic Race considerably boosted TV 2’s share that week, after a summer of good weather and low viewing figures.

◀ Project manager Trond Ahlsen (left) doesn’t have time to enjoy the view. Here he’s sitting in the editing tent together with Jan Solvang and Jens Hveen Photo: Jørgen Remmen

Photo: S. Boué

33

A helping hand

from india Many people at Egmont now get help dealing with invoices, travel accounts and much more from a company called Genpact in India. STORIES decided to find out who is behind the Indian-English phone messages and the long names – and what Egmont looks like when a person comes from India.

By Henning Nørby Nielsen

Mette Vingaard has been involved in the hand-over from Egmont’s Shared Service Centre in Denmark to Genpact in India.

In future, as manager of the new Finance Service Delivery organisation she will be in close contact with Genpact, her visits to which have given her detailed knowledge of the company: ‘Genpact is a professional company with a wonderful attitude,’ she says. ‘They tell it like it is, giving their accounts and asking questions in a positive way. While they were here for training, they were very interested in getting to know us better and showed a good sense of humour. One of the participants even joined the ALT for damerne women’s run.’

Indian culture is ‘rummelig’ During the spring Egmont HR held a number of Indian cultural training courses for everyone who would be working closely with Genpact. The sessions showed that the general level of knowledge about India was limited to curry dishes, Gandhi and the technical industry. But in reality we resemble each other more than one might think.

‘Before I left, I had the notion that our cultural differences would widen the gap between Danes and Indians. However, I

34

egmont stories september 2013

realised that Egmont and Genpact – and Indians in general – are a pretty good match in terms of values. “Rummelighed” – described as largeness of perspective and tolerance in our Egmont values – is also a value that aptly describes Genpact.

Generally, inclusiveness and respect for others’ differences is a cornerstone of Indian culture. Even if you come from the Nordic region, people don’t look askance at you.

We were warmly welcomed in India,’ says Mette.

Hard to acknowledge error A point on which the two cultures seem to diverge is when it comes to making mistakes: ‘Indians are very interested in learning and seem very enthusiastic, but they have difficulty acknowledging that they’ve made an error. This is intrinsic to Indian society, and it took us a bit of getting used to,’ Mette admits, citing an Indian proverb with positive connotations: ‘If the end is good, all is good, so that which is not good yet has not ended.’

In future she expects to see Genpact initiate quite a few improvements designed to optimise the joint processes. ‘However, it means we too must be ready for change at Egmont.’

FActs Mette’s advice for communicating with Genpact employees in future: • Ask clear questions and offer options.

Then you will be sure to get a clear answer.

• Always respond to queries from Genpact – even if your response is that you will get back to them with a final answer.

Genpact has a very hierarchical structure, as you will discover at Egmont. If they contact you and fail to get a response, they will quickly move on to your supervisor.

Meeting with Indian culture Before opening the collaboration with Genpact, Egmont HR held a series of cultural training courses to give participants some general knowledge about India and the Indian work ethic, including how to build relationships, the importance of hierarchy and when ‘yes’ really means ‘no’.

Genpact operates in 24 countries, employs over 60,000 staff and handles process optimisation and financial management for more than 100 Fortune 500 companies.

Egmont’s collaboration with Genpact gives it access to expertise when it comes to conducting business processes as well as understanding and optimising processes at large enterprises.

Meet Manish Sharma

Meet Simple Chelani

Transition manager at Genpact

Process developer at Genpact

Manish Sharma has served clients from a wide variety of industries and carried out projects in European countries, but Egmont is his first Scandinavian project.

To Simple Chelani Genpact feels like one big family. ‘There hasn’t been a day when coming to work seemed like a drag. It has been very refreshing to work for a company that cares so much about the growth and retention of its employees.’

How did you experience the working environment at Egmont’s headquarter office?

‘I noticed that Egmont gives its employees lots of flexibility and is also known for its positive HR practices and employee-centric approach. I also noticed the unique culture of cooperation where all team members have the change to give their input to decisions. That shows how authority is distributed throughout the team rather than lies with a single person. On a lighter note, I must say the food has always been very good and I even spotted a couple of nice Indian dishes!’

What surprised you most about working with Egmont?

‘To be honest, I found Egmont employees very talented, creative, committed and nonconfrontational. For me, the most surprising thing was that most of the employees speak English at a very high level.'

How did you experience the working environment at Egmont’s headquarter office?

‘People were very friendly and helpful. They also involved us when they had any sort of fun or a get-together. They made us feel part of their team.’

What surprised you most about working with Egmont?

Genpact can do something that we cannot do in Egmont. Even if we consolidated everything in one large centre, we still wouldn’t be big enough to provide best practice service.’

Mette Vingaard, Head of Egmont Shared Services

‘What I found most surprising was the keen great interest in our culture, how we live and our attitude towards life.

People have been extremely helpful and cooperative, and without their help and support, Copenhagen would have been a difficult place to be in. Also Danish food habits were pretty surprising as well. We come from the land of spices and we were actually missing it back in Denmark, where people were very health-conscious and survive on food without oil and spices.’

35

Kids Media Awards

the favourites

Every year Egmont Kids Media celebrate the Kids Media Awards where teams and individuals are recognized for achieving great things throughout the year.

This is what hit the spotlight in 2013.

Best Performing Company 1. Egmont Ukraine (WINNER) Egmont Ukraine is a small and lean company with 18 employees, established in 2006 and growing fast. They have proven profitable for 2 years in a row and have achieved market leading positions.

2. Egmont UK Magazines Egmont UK Magazines is now experiencing their 9th consecutive year of growth. They are the second largest children’s magazine publisher in UK with a market share of almost 23% in value and 21% in volume.

3. Egmont Kids Media Nordic Egmont Kids Media Nordic has managed to reduce cost and create a large amount of new Nordic businesses. The Nordic organization is characterized by employees who have a great willingness to change.

Product of the Year 4. I’m Reading by Egmont Poland (WINNER) The I’m Reading project is the first ever reading concept in Poland which has both educational and literary values. The book series contain witty and intelligent stories written by famous Polish writers.

MovieStarPlanet by ECC, Denmark Egmont Creative Centre has mastered developing a toy into a magazine – really bringing stories to life in this concept.

MovieStarPlanet is very well-executed due to the fantastic collaboration between ECC and the licensor.

5. Billie B. Brown by Hardie Grant Egmont, Australia This book series has captured the imaginations of 5-7 year old girls at a very important period of their reading development. Billie B. Brown

36

egmont stories september 2013

has shown great results and rights have been sold around the world.

Innovation, Experimentation & Learning Award 6. Development of e-book projects

by Egmont Verlagsgesellschaften (WINNER) Egmont Verlagsgesellschaften are not afraid to try new things, learn from it and build on their experience.

Their e-book successes include the “Lust de LYX” series and interactive detective-stories.

Money Club Book Series by Dogan Egmont, Turkey The Money Club Book series (print and e-book) consider the need of teaching children and their parents the main economic and banking terms to make them aware of money management.

Prinzessin Emmy by Egmont Ehapa, Germany Prinzessin Emmy is a unique, tailormade top brand for the target group of girls aged 4-7. This is a good creation of an own brand, which can be licensed to others, based on consumer needs.

7. Culture-changing Consumer Insight by Egmont UK Egmont UK is proving to be a true frontrunner in using consumer insight as the basis for business decisions. Consumer Director Alison David is a fantastic role model.

Employee of the Year 8. Boris Sapozhnikov from Egmont Russia (WINNER) Through Boris’ leadership, his team has won

three out of four categories at the Print Media Bestseller Awards. He is smart, he delivers and he has made an impact not just in the company but in the industry.

9. Linda Song from Children’s Fun Publishing, China Linda is amongst the very first employees of Children’s Fun Publishing and is a true asset developing the business from scratch. Her extreme spirit drives other managers and her engagement makes us proud.

Photo: Yann Piriou

6 7

3

8

4

6

Photo: Yann Piriou

1

10

10. Katharina Braun from Egmont Verlagsgesellschaften, Germany Katharina is one of the front runners for revitalising the Schneiderbuch imprint. Through Katharina’s optimisation, Schneiderbuch is now back in the modern world of children book publishers!

Photo: Yann Piriou

4

5

37

2

9

Meet a travelling number cruncher Egmont House, Nordisk Film and Venuepoint. By now Jonas Gillsander has seen Egmont from more angles and perspectives than most – from juggling multi-digit figures at corporate level to streamlining operational processes in expanding operating companies.

By Ann-Sofie Senger

'Generally, an occasional change of scenery is an incredibly positive experience’

How long have you worked for Egmont?

I started at Egmont House in Copenhagen, where I worked as Corporate Controller for six years. Then I moved to Nordisk Film Sweden to a financial management position. Now, since June I’ve been financial manager at Venuepoint, acquired by Nordisk Film in 2012.

Our objective is to continue growing primarily in Norway and Sweden and to maintain our position in Denmark. I’m working to gain an overview of the company’s financial position so we can realise that goal. Venuepoint’s product (a web-based ticket system – Billetlugen, Billetportalen etc., ed.) is really interesting and, I believe, has great future potential.

What are the main differences and similarities between Venuepoint and your previous workplaces at Egmont?

Venuepoint is a small, successful enterprising company that is expanding rapidly. It’s a great contrast to my earlier jobs where I worked with large corporate structures, processes and routines. I’ve gone from issuing recommendations at corporate level to suddenly working at “street level”. However, the companies have all been alike in giving me a wonderful welcome. That’s truly impressive.

What competencies has your journey through Egmont given you?

In my first position in Corporate Controlling, I got to visit all Egmont’s companies, from

38

egmont stories september 2013

Bangkok to Oslo, and see examples of best practice. This gave me the chance to see all the points of similarity and difference throughout the Group, whether Nordisk Film, Egmont Magasiner or TV 2. It also gave me huge insight into Egmont’s principles, processes and day-to-day work: the Egmont mind-set.

These competencies dovetail very naturally with my present position. My journey has also given me a large and useful network of contacts within Egmont.

What have been the biggest challenges along the way?

For about 18 months, when I worked for Nordisk Film, I used to commute daily by plane between my home in Malmo and my job in Stockholm. Those daily flights were my biggest challenge in terms of striking a balance between my private life and work.

I can’t think of anything else. Generally, an occasional change of scenery is an incredibly positive experience, but, of course, it also means hard work that benefits both yourself and the company.

Have you any advice for other employees considering travelling around Egmont?

Have an open mind, put any prejudices behind you and see it all as one great opportunity.

When an opportunity arises, seize it, even if it means daily flight trips. That’s always been my approach, which has made adapting to new workplaces easier.

Photo: Steen Brogaard

Mini CV • Lives in Lindhamn, Sweden • Has three children: two girls and a boy • Graduate from Lund University • Worked as an accountant at Ernst & Young before joining Egmont

39

show me your media consumption STORIES has asked Egmont employees about their media consumption.

If you use media like most of your colleagues, this is what it looks like:

You don’t subscribe to a streaming service – but perhaps your colleague does.

You read two magazines each month

More

5-6

3-4

I don't subscribe

43% 57%

Most of your media budget is spent on streaming services, printed books and television.

Outside work, you spend most of your digital time on your smartphone

1-2 None 12%

I subscribe

46%

Smartphone

18%

Tablet

20%

Computer

15%

TV

1%

Video games console

1%

Don’t know

42% 25% 11% 10%

In future you will spend more money on streaming services, e-books and tablet magazines ... and less on DVDs, newspapers, printed books and television.

@

3

You go to the cinema

times a year. (but 17 pct. actually visit the cinema more than ten times)

Don't know

15%

Yes

33%

No

52%

You download new apps each month for your mobile phone or tablet

You don’t believe that e-books will be the primary book medium in five years

2

1,500 Egmont employees responded to this survey in July and August 2013.

The survey figures have been published on Insight.

The lucky winner of an iPad Mini was Anca-Maria Topala, Junior Accountant in Egmont Romania