Zuora Helps Fairfax Media Transform Its Digital Business With Focus on Subscriber Growth

  Zuora Helps Fairfax Media Transform Its Digital Business With Focus on
  Subscriber Growth

Fairfax Seizes on Opportunity to Push Boundaries of Subscriptions and Lead the
Australian Media Market in a New Digital Age

Business Wire

SYDNEY -- March 20, 2013

Zuora, Inc.:

News:

  *Zuora, the subscription commerce, billing and finance leader, today
    announced that Fairfax Media Limited has deployed its cloud-based
    subscription commerce platform to manage the intricate mix of digital and
    print subscription options that will be required when the publisher
    introduces paid digital subscriptions for its leading mastheads later this
    year.
  *The Zuora platform frees Fairfax Media staff from the need to enter and
    administer potentially millions of reader subscriptions for titles
    including The Age and The Sydney Morning Herald, by providing an online
    self-service facility for subscribers, and by combining commerce, billing,
    finance and operations features into a single application suite.

Rebuilding For The Future By Focusing on The Needs of Subscribers In A Digital
Age

  *Like many publishers, Fairfax has seen a sharp drop in advertising revenue
    over the past five years and needed a way to reinvent the business.
  *Despite frequent and substantial cost-cutting measures, Fairfax still saw
    its market capitalization decrease substantially since 2008 with
    advertising revenue plummeting. In 2012, Fairfax unveiled a “Fairfax of
    the Future” program, which included switching the print model from
    broadsheet to compact format for two of the company’s most influential
    mastheads – The Sydney Morning Herald and The Age.
  *Fairfax is seizing on the opportunity to transform itself and lead the
    Australian media market in a new digital age. Core to this strategy is a
    laser focus on addressing the needs of its subscribers. Fairfax aims to
    meet subscribers where they are: on the web and on a myriad of digital
    devices; and present high quality content that is relevant to its
    audience.
  *Fairfax knows that a simple paywall is not enough, and that core to
    building a strong subscriber base is the ability to cater to the myriad of
    subscription options that subscribers will no doubt demand. As Fairfax’s
    master subscription system, Zuora is a key component of Fairfax’s vision
    for the future.

Delivering Growth Through the Capture of New Subscription Revenue Streams

  *Developing a successful digital subscription business model is an
    essential element of the three-year business restructuring program
    currently being undertaken at Fairfax in order to address the company's
    declining print advertising revenues and readership. Under the digital
    model, some content will remain free to online readers, while the
    remainder will be accessible via a metered model to paid subscribers.
  *Andrew Lam-Po-Tang, Fairfax Chief Information Officer said, “The digital
    shift in the industry creates an enormous opportunity – particularly as
    companies such as Fairfax focus more on the needs of the subscriber in the
    digital age. While subscriptions have always been a part of the
    traditional newspaper industry, it's fair to say they have not been
    treated as a critical revenue stream, rather as a way of making the
    relationship between consumer and newspaper more tangible. We’re excited
    that Zuora is helping us lead that change.”
  *“The overall broad strategic imperative is to reduce our reliance on
    advertising – both print and digital – and find other ways to monetise
    audience relationships. An obvious revenue stream is subscriptions. They
    are going to be a big part of our future,” he added.
  *Fairfax anticipates many subscribers will want the ability to tailor their
    subscriptions, choosing from digital or print only options, mixed print
    and digital choices, as well as subscription bundles involving two or more
    mastheads. The selection of Zuora as the master subscription platform
    solves a major technical challenge for Fairfax, which until now had no way
    of easily offering digital subscriptions or aggregating subscriptions
    across mastheads and across print and digital products.

Z-Business for Media: A Master Subscription System Powering The Fairfax Of The
Future

  *Zuora was chosen by Fairfax because it is a cloud-based and digital
    solution, making it nimble, cost-effective and scalable. Importantly,
    Zuora offered capabilities across key business areas including commerce,
    billing and finance unlike other, more point-based solutions on the
    market.
  *Z-Business for Media allows Fairfax to:

       *Aggregate subscriptions across mastheads and maintain a unified view
         of their subscriber base
       *Offer cross content bundling across different mastheads to enable
         additional sources of revenue within 6 months
       *Monetize digital content in ways that subscribers respond to in order
         to drive new revenue growth and increase free-to-paid conversion
         rates
       *Automate billing and payment operations at massive scale, delivering
         operational efficiencies that support revenue growth while keeping
         operational costs under control.
       *Provide subscribers the freedom and control to manage their own
         subscriptions, for example, select and create their subscriptions
         online, manage billing and payment preferences, update contact
         information etc
       *Understand the right business metrics such as ARR, ARPU, free-to-paid
         conversions and more, to measure the success of the new
         subscriber-centric revenue model.

  *Lam-Po-Tang, commented, “We don't yet know what our full range of
    commercial relationships with consumers will be, so having a partner who
    routinely deals with other forms of subscription relations and who can
    draw upon global expertise is very useful. Zuora gives us the ability to
    focus on audience relationships, the quality of our products and on
    getting the price right, rather than worrying about the mechanics of
    processing payments or maintaining the platform. We will be able to
    maintain focus on the stuff that drives our revenue.”

Zuora Commentary

  *John Ruthven, Vice President – International, Zuora, commented, “Fairfax
    is emblematic of many of the world's newspaper publishers who are
    rediscovering the stability and peace of mind behind revenue from
    subscriptions. This calls for significant change to the publisher-customer
    dynamic. As the industry shifts away from less stable advertising revenue,
    forward-thinking companies will require new tools that can empower
    newspapers to develop a deeper understanding of their readers, become more
    responsive to their needs, and develop more durable customer
    relationships.”

Timing

  *Fairfax Media will launch digital subscriptions for international
    subscribers in March and an Australian roll-out of the system mid-year.
    For each new initiative, subscription managers will monitor how engaged
    digital subscribers are and whether readership drops off or increases over
    time.

About Zuora, Inc.

Zuora is the global leader in Relationship Business Management (RBM)
solutions. Zuora delivers the subscription commerce, billing and finance
capabilities that have become the industry standard to help companies
transition to the Subscription Economy. Enterprises and emerging companies
alike use Zuora's multi-tenant cloud solution to streamline key processes,
provide visibility into the metrics that matter most and serve as the
financial engine of the business. Zuora services innovative customers
likeInformatica,Tata Communications,Box,Zendesk, DocuSign,Xplornet,
UstreamandReed Business Information. To learn more about Zuora, please visit
www.zuora.com, Like us onFacebook, follow us onTwitter, or visit our blog,Z
Blog.

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Contact:

Zuora, Inc.
Megan Golden, 415-728-2824
megan@zuora.com
or
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zuora@theoutcastagency.com
 
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