What creative insights could you offer DC Thomson regarding a strategy for social networking? What strategic options would you recommend considering further?
What will be an ideal response?
A tough question! FindMyPast and Genes Reunited appear to have much in common. They rely on a
variety of public records that serious genealogists can access in other ways, both online and via
inspection of paper records. The FindMyPast originators in particular did considerable work before
enabling online access by others, which represents a sunk investment cost. Its main offices are in London
(others are outside London and in Scotland). It presents itself as serious, but (in marked contrast to other
parts of D.C. Thomson) friendly and accessible. Both websites have a charging business model that in
principle makes them viable. Given Ancestry.co.uk, however, it is debatable that both brands can
prosper. Nor is it obvious to the casual observer which service offers the most. The identification of a
USP (unique selling proposition) seems vital, although rationalisation of the user interfaces as well as
back offices functions and locations are a priority to reduce costs. Because Friends Reunited failed to
offer a compelling reason to subscribe, ITV scrapped user fees, but to rely on advertising revenue is a
high risk in an increasingly crowded online marketplace. Moreover, many schools, universities and
colleges whose members FR aims to attract now offer equivalent services.
It is difficult to believe that directors of the parent company really understand what all these apparently
similar, but differing web activities need for sustained success. Just as the entrepreneurial founders of
websites usually aim to ‘cash out’ after a time, it may be D.C. Thomson’s best option will be to
rationalise, enhance as far as possible and sell the consumer portfolio to another web-savvy operator,
perhaps retaining a minority stake in the hope that a new owner takes it on to greater heights.
Factual update on subsequent developments
The Competition Commission consented to the acquisition of FR only in 2010, so DC Thomson (via
Brightsolid) has had comparatively little time to consolidate a strategy for its consumer web businesses.
Inspection of the respective websites offers some indications of shared ownership, but no obvious
synergies and little evidence of enhanced appearance or functionality. Much may be going on behind the
scenes, but progress in the marketplace may be proving elusive.
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