DIGITAL

TRANSFORMATION
AT LA PRESSE –
CRAFTING A NEW
DIGITAL STRATEGY
Group 8
PGP/23/008 Aveek Dutta
PGP/23/020 Dhiren Kharat
PGP/23/033 Nikhil S
PGP/23/045 Ritika Sharma
PGP/23/058 Sushmita Golder
 CASE FACTS
• La Presse is a French-language daily started in 1884 which went on to become one of Canada’s top-selling newspapers.
• Until 2013, its sources of revenue were: sale of print editions (25%), advertising space (65%) and text-based classified ads
(10%). Operating expenses were journalist salaries (50%), printing costs (15%) and newspaper delivery (35%).
• Digital revolution at La Presse started by using desktop publishing software (1980s) and launch of a website in 2000
(cyberpresse.ca renamed lapresse.ca in 2013). In 2001, the newspaper changed its presentation and editorial content. In 2003,
the mobile version La Presse Mobile was created for iPhones and Android devices.
• Due to increasing presence of online players, newspaper readership fell drastically along with decline in revenues from
advertisements and classified ads, to which La Presse responded by expanding their digital operation.
• Challenges faced by La Presse were: high operational costs, attracting young readers who preferred free online sources and
not so lucrative revenues from online advertising compared to print media. It introduced changes like : outsourcing printing to
Transcontinental to improve the operational efficiency and launch of La Presse+ tablet app.
• La Presse+ tablet app focussed on the user experience and provided daily news along with a wide variety of exclusive content
from many new columnists ,integration of a live news feature to keep readers updated on breaking news. It aimed to
complement other communication channels (mobile, web, paper) creating a complete ecosystem.
• The market response of La Presse+ was impressive and within 13 months of its launch it reached out to more readers than the
print edition of La Presse after 131 years of existence. On average, readers spent around 40 minutes browsing on the app on
weekdays and 50 minutes on the weekend.
• Revenue: Initially in 2013, it launched the iPad edition free of charge relying exclusively on advertising revenues and in 2014, it
was made available on Android platforms as well. By 2017, 88% of La Presse’s total advertising revenues came from ad
revenues from digital platforms in which La Presse+ generates 75% of them.
• Challenges ahead: High penetration rate of tablets led to readership growth for La Presse+ but by 2014 the growth of tablet
sales slowed down with the coming of Phablets. The company now had to think about how to adapt La Presse’s experience to
such devices without compromising the tablet app’s growth and revenues.
 STRUCTURAL CHANGES HAPPENING IN
NEWSPAPER INDUSTRY
Competition Revenues
• Stiff competition & millennials have shifted to • Revenues of Canadian publishing houses are
digital platforms dipping at the rate of 8.4% between 2011-16
• Hard and soft news or “infotainment” is the • The number of average weekly readers is
new way decreasing at 3.8%
• Pure players are emerging(Buzzfeed, Flipboard, • Caused by shift from print to internet
Medium) advertising and rise of digital platforms like
craigslist
Social Media
• Social media is playing the role of a news Cost cuts
diffuser
• The industry is facing problem to cut costs and
• Almost a third of people in America get their maintain profits
news from Facebook
• Centralization of administrative and editorial
• Instant Articles is emerging which aims o functions
strengthen Facebook’s footmark in digital news
• Employee layoffs
industry
• Facebook and google account for more than Pricing strategies
80% of traffic to news sites
• Free subscriptions and price cuts
• Hard and leaky paywalls
 BUSINESS MODEL - TRADITIONAL
Key Partners Key Activities Value Propositions Customer Customer Segments
Relationships
- Printing
-Journalists -Content generation To deliver a wide range - Daily newspaper
-News agencies - News paper delivery of local and - Home delivery Apart from readers and
-Columnists - Selling paper Ad international news to its advertisers – largely
space French speaking unsegmented
audience , strong in
quality of content and
presentation

Key Resources Channels

Print
- Journalists,
photographers
- Letterpress equipment

Cost Structure Revenue Streams

Journalist Salaries (50%) - Print editions (25%)
Printing cost (15%) - Companies purchasing Ad space (65%)
Newspaper Delivery (35%) - Classifieds by individuals and small companies (10%)
TRANSFORMATION OF TRADITIONAL TO DIGITAL BUSINESS MODEL
Key Partners Key Activities Value Propositions Customer Customer Segments
- printing was Relationships
outsourced
Journalists - Interactive content Enhanced value proposition - Daily newspaper
News agencies generation that leverages the multi- - Deliver to the hand - LaPresse+ focused
Columnists - Selling paper and function capabilities of iPad - Anytime, anywhere mainly on adults
digital Ad Space and Android tablets to - Cancel anytime between 25-49 (63%)
New Partners like - Subsidiary company deliver multi-sensory - Free access to - 43% income above
-Transcontinental for selling white label experience as well as information 10000 $
-Alliance for Audited products enabling variety, - Targeted content and - Digital advertisers
Media - Subscription guaranteed visibility and Ads - Other media
promotion measurability of advertising companies
- AD integration performance
- Focused on young
Key Resources people’s thirst for free Channels
- Journalists, information
Photographers
Print – weekend ritual
- New types of Web (2000)
employees like Mobile – quick reading
Graphic designers, (2003)
programmers, LaPresse+ iPad to
developers, system complement them with
architects lean back experience of
- La Presse+ Tablet App rich media content and
experience (2013)
Cost Structure Revenue Streams
- extra costs of new employees, developing app for
the tablet, loss of subscription fees as it provided free Digital platform – 88% of total Ad revenue
access to content LaPresse+ - 75% of total Ad revenue (rest web and mobile)
Relied exclusively on Ad revenue for the iPad edition
 WAY FORWARD FOR LAPRESSE+

• LaPresse+ needs to be re-worked for smartphones/phablets

 Re-design UX, text, font to be adjusted as per the device to be used- tablet or
smartphone
 Both LaPresse Mobile and LaPresse+ should coexist: LaPresse Mobile will contain
short news while LaPresse+ will contain news to be read on both mobile/tablet
 Ad Revenue model will remain the same as LaPresse+ alone generates more than
75% of total ad revenues

Overall, the change that LaPresse+ needs to make is in its UX. It already has a digital model in
place. It only needs to reach the increasing smartphone users by improving readability of
detailed interactive news on smartphones.

• Test how customers will respond if a fee based model is introduced for
subscription to LaPresse+
• Target additional segments like LaPresse+ for business