National Geografic Society

National Geographic Society

1. First, understand the organization. What is NGS all about? What is its current financial performance, and how has that changed over time?


NGS was founded in 1888 as a scientific soc. in order to “increase and diffuse geographic knowledge. It is one of the largest non-profit and educational organizations in the world.

It now is a global institutionwith an array of media platforms and products that reach more than 350 million people each month.

Central idea is not to have subscribers but members.

Focus on mission-driven content generation: NGS look for the ability to combine the scientific element with a compelling story. That differentiates them from other magazines.

Members:
1930: 1.2 million

Revenues:
• 80 %revenues from memberships and 20 % from advertisements
• Traditionally revenues came mainly from printed media, since 1999 these are in constant decline, whereas the revenues from digital media are constantly increasing
• By 2010 transformation into a multi-platform worldwide digital business has been completed
• North American consumer magazine revenues2004: $ 23 billion (=Milliarde)
2009: $ 20 billion
2013: $ 18.5 billion projected
revenues from magazine often only cover the production and distribution costs
• Advertising sales from magazines:
2009: declined 30-40% compared with 2007
2013: no rise in advertising sales to be expected until then


There are worries, thatadvertising revenues from magazines could be on a general decline in the long-term future due to sectoral trends (=digital media?)
• The website is not profitable at all, even after years
• Even if the magazine is being replaced by digital media, digital media is not making so much money
• The magazine –despite declining revenues- is still profitable and expected todo so for the future
• As financial resources are short, there will be tension between the (profitable) magazine and the (unprofitable) website in competing for these resources.
[pic]




2. What is your evaluation of National Geographic’s new mission? What are its advantages and disadvantages?


• 2000: NGS realises that it needs a new mission
•2004: new mission had been framed “to inspire people to care about the planet”
• 2009: mission program was deploying scientific, educational, and media assets to focus on both problems and solutions in four main areas:
i. climate
ii. living habitats
iii. planetary lifelines
iv. the human story, language and culture

Advantages:• NGS thinks that focussing on issues such as climate change and other environmental challenges would enable them to have an even greater impact, raising its profile among a select and vocal audience
• Fahey thinks that it was the mission that afforded NGS a valuable and sustainable competitive advantage because it was “attuned generationally and value-wise”
• Fahey:power is that it is objective and unbiased.
• ASU: while some think that NGS should be more advocacy oriented. However, I see a chance in the mission program because if people know that they can bring their ideas and ideals in then they might be more engaged. So I would not change this.

Disadvantages:
• funding partnerships with companies in industries such as oil explorationand extraction, whose activities were not viewed as compatible with the missions, became more sensitive
• new mission exacerbated potential tensions with the television network, who might who might have documentaries on topics that conflict with the mission
• the topic of the mission might not be interesting to a global audience
• NGS risks their reputation for...