PREPARED for Brad Harmon July 2, 2015 TV Times Introduction for New Markets
Jan 01, 2016
PREPARED for Brad HarmonJuly 2, 2015
TV Times Introduction for New Markets
Table of Contents:
A. ProductB. PromotionC. PricingD. DistributionE. ProcessF. FinancialsG. Post Start-Up FocusH. Reference Materials
PRODUCT
1) The Observer-Dispatch rolled out TV Times to the market over a two week period.a. Sample copy distributed Sunday, 5-31-15 full-run
including both Home Delivery and Single Copy.b. Paid distribution began Sunday, 6-7-15 in Home
Delivery only at $0.50 per copy.2) OD created an Opt-Out model that will generate
$205,000 in New Circulation revenue in 2015.a. Annualized New revenue of $500,000.
PRODUCT (cont.)
3) What is TV Times?a. TV Times is a 44 page-glossy all-color all-publication designed
to be the premium TV listings solution for the Utica Market.b. It compliments the OD core product thru:
i. Comprehensive daytime, evening, and late night listings for 100 plus channels.
ii. Extensive listings of movies, sports, home & garden, cooking, etc.
iii. Two full pages of games, puzzles, and quizzes.iv. Daily TV Listings and online grids are also provided.
• OD currently still under contract with Tribune Media.• Will move to the FYI online product after contract
expires.
PROMOTION
1) Promotion strategies included:a. Rolling out TV Times as part of 3 new weekly
sections to the newspaper.i. Scene is the new Entertainment section on
Thursdays that debuted May 14th.ii. Homes is new Real Estate section on
Saturdays that debuted May 16th.iii. TV Times is now in all Sunday Home Delivery
that debuted May 31st.
PROMOTION (cont.)
b. Combining the value message for the new products with ‘quiet’ introduction of pricing.I. Letters to Ezpay customers 30 days in advance of billing
change promoting all of the new products and $0.50 charge.II. Frequent in-paper promotions supporting the value
message. III. Timing TV Times promotions so the messaging flowed from
sample to paid.IV. Reinforcement of pricing and product with Front-page letter
from Executive Editor on same day as market-wide free sample.
2) OD also partnered with local TV Station WUTR.a. Led to $30,000 in broadcast advertising for the OD in 2015
($50,000 annually).
PROMOTION EXAMPLES
This ran 2 weeks prior to
Full Market sample on 5-31.
PROMOTION EXAMPLES
This ran day of Full Market
sample on 5-31.
PROMOTION EXAMPLES
These ran in tandem between sample
and 1st Paid Home Delivery Sunday on
6-7.
PRICING
1) OD entered into two-year Licensed Data and Materials Agreement with FYI Television.a. Current cost of $0.27 includes:
i. Weekly publication.ii. Web content.
• To be fully executed at date yet to be determined.iii. Daily grids for in-paper and E-Edition.
2) OD set attractive TV Times price point of $0.50 to help limit number of Home Delivery Opt-outs.
a. Added $0.50 to each new start pressure entry point.b. Original assumption allowed for 25% non-pay. Presently @ 11%
3) Stand-alone cover price of $2.99 on product.a. Planning on testing Single Copy sales at several large Dealer
locations in Q3.
DISTRIBUTION
1) TV Times inserted via standard mailroom process and managed thru traditional preprint manifest. a. No additional per copy fees paid to carrier’s.b. Because TV Times is handled thru the mailroom, all
Sunday Home Delivery subs receive the product regardless of Opt-out status.
2) Opt-out strategy at launch.a. Utica segmented rate base into optimal ranges to
maximize TV Times revenue opportunity and protect Mather pricing opportunity moving forward.i. Charged subscribers within the top 5% rate base less
than the full $0.50. Less than 500 subs
DISTRIBUTION (cont.)
b. Customer Service played key role at launch to ensure subscriber retention.i. Utica has in-house Customer Service and Retention
group.ii. CSR’s had detailed scripting and processes in place.iii. CSR’s were trained that ‘opting-out’ of TV Times
charge was the last retention option.iv. Other retention tools included:• Offering 2 week sample credit to try TV Times.• Lowering subscriber TV rate within set range.
DISTRIBUTION (cont.)
c. Current Opt-Out group at 11.25% or 2254 of total base 4 weeks from launch.i. Subscriber Opt-outs at 17.2% - 387 subsii. Carrier Collect Opt-outs at 12.2% - 276 subsiii. Mather Rate Opt-outs at 70.6% - 1591 subs
• Higher percentage result of Utica’s 12% Mather increase.
3) Coordinating Logistics and Production has been a challenge.a. Multiple touch points in the print cycle added to the
complexity.i. TV Times printed by R.R. Donnelly - 4 print sitesii. OD production is outsourced to Syracuse.
DISTRIBUTION (cont.)
b. Early product delivery to ensure package is automatedi. In first month, to avoid OT etc
4) We’ve positioned ourselves to implement Household Specific delivery c. Would be triggered if OD revenue per piece reaches $0.27.d. Current Opt-out model changes to Opt-in.
i. OD would manage order processing and renewals internally. ii. The OD would pay TV Times for each copy distributed weekly.iii. We would reset the price point to maximize profitability.iv. TV Times would be distributed by IC’s.
PROCESS
1) The planning process was detailed and complex.2) 3 month timeline from decision point to May 31st launch.3) Our successful integration of TV Times into DTI was the most complex area of
planning.a. This segment took a full 8 weeks to complete.b. We had just completed our upgrade to DTI 2014 in March.
i. This release included new processes and functions that hadn’t yet been fully tested live.
c. TV Times was set up as a new and separate publication in DTI.i. We wanted customers to receive one bill for both publications.ii. Also wanted payments to fully amortize for the complete term of
the subscription for both publications.d. Mather pricing added complexity to the rate structure.
i. Went from 241 active rate codes to 393.e. Worked with CBS to change our invoices to include TV Times as a
separate publication.
10 REASONS WHY?
1) Product improvement from old stale model2) Sustainable weekly product3) Rave reviews from long time customers on content/look4) Use former TV Book pages and re-allocate or save 5) Readership and retention tool6) Value prop for Sunday Only sub conversion from SC7) Newsprint expense savings8) Big S/C dealer value – sell a separate product9) This is a true Premium Product10) BIG REVENUE GROWTH!
NEXT STEPS
• Evaluate present books in all markets• Assess relationship with Tribune on present grids • Get pricing down under .20 cents per copy• Version books to sell advertising and off-set expense• Roll out 10 Large Daily sites from Sept – Jan.
• Large Daily potential:• GROSS: 215,000 circ @ 15% opt out = 183,000 x .50 =
$4.750M annually (no advertising included)
• NET: 183,000 x .30 (.20 cents cost) = $2.85M annually • Start up costs and ancillary costs not included – approx.
$300K
REFERENCE MATERIALS
1) All reference materials are available via Corporate Drive.a. Marketing
i. In-paper promotions, POP materials, and Editorial support.
b. Operations i. DTI System launch plan and Billing items.
c. Customer Service i. Scripting and Best Practices