Amazon adds value via streaming (Updated)

Today's Amazon entry page touts a new, and potentially significant source of value.
They are offering to Amazon Prime customers, the ability to stream more than 5000 movies and television shows free.  If you're currently a member, you get commercial-free video streams for free (and Prime's $79/yr cost beats Netflix's rates), certainly providing added value for Prime members.  By increasing the value of Amazon Prime membership, it should encourage a boost in memberships and revenues.  But in providing free access broadly, Amazon also gets a jump on Netflix and other outlets in establishing a brand that will promote its online video rentals and sales, and ties into its DVD/BluRay store for those who want to get a hard-copy.  Call it market-building and branding for now - but it's another reflection of the shift to online video, and perhaps adding another push in that direction.
I'm watching Contact at the moment (gotta test this thing out), and the quality on the U's network isn't bad.
Update:  Found this table (from Clicker) that compares Amazon Prime streaming options with Netflix and Hulu+.

An idea for Value in local TV

A recent TVNewscheck article reports on one interesting new idea for local TV stations to create value - working with a local TV antenna installer and advertising that consumers could save $60-$80 a month by dumping their cable or satellite feeds and installing a roof-top antenna. 
As the article suggests, in moving from a networked TV feed back to OTA (over-the-air), the station may lose some money in retransmission consent fees, but is likely to make up for it from new advertising.  Also, this puts the station in a better position in the long term, as the more OTA-only homes in the market, the more valuable the station becomes as an network affiliate, and as a full-market reach outlet for advertising.

Back in the Day...

Back in the days before AT&T was broken up, one of its strongest assets was Bell Labs.  As perhaps the pre-eminent corporate think tank, it produced many of the technological innovations driving the digital network (like the integrated circuit and laser).  And it also produced a number of educational videos familiar to students in the 1960s, 1970s, and 1980s.
AT&T is now putting a lot of them online, at the AT&T Tech Channel.  It's a resource worth checking out.

Journalism Ethics in a Digital Age?

Colleague Prof. Hendrickson pointed me to this piece by Stephen Ward on what we should be teaching about ethics in this new era of digital media and journalism.  Or more specifically, how can our students "use the new media tools responsibly."  Pretty much all professionally-oriented journalism programs teach ethics - but do they address the kinds of new situations our students may find themselves in?
Ward argues that in our ethics course, we no longer have a consensus on what is ethical, despite the existence of myriad codes of ethics (such as the Society or Professional Journalists'), and there is no widely-accepted framework of ethical principles.  Ward offers five features he suggests should be in any journalism ethics course:

1. Start from the student's media world.
2. Assist students with reflective engagement
3. Insist on critical thinking, not on fashionable excuses being offered
4. Be transitional - talk about the process of getting to a new ethics standard
5. Be global in your teaching (we aren't the only ones with ideas about what is ethical)

Not a bad starting point, I think.

GM to offer Pandora Internet Radio on Chevy cars

The interesting aspect of this is the shift to including alternative digital channels in vehicles.  And no, GM's not offering WiFi or anything interesting - the system will only let you sync to your smartphone and use that for the data stream from your Pandora account.

Reuters story from IBC BroadcastNewsroom.

NTIA provides Broadband Map, Data

The NTIA (National Telecommunications & Information Administration - Charged with researching and promoting T&I), in conjunction with the FCC, has completed a report analyzing the state of broadband diffusion in the U.S.  They find that only 5-10% does not have access to broadband at current baseline speeds (3-10 Mbs download).  Broadband adoption (at that level) was measured at roughly 68%.  At what is considered 4G speeds (6+ Mbps), access drops to 36%.
But they also offer a nifty online map (www.broadbandmap.gov), a series of reports, and some data.

From story at Broadcasting & Cable

Fun: Information Week's 12 Worst Tech Predictions of All Time

These are often fun to review - but also a reminder of how limited our vision can be:

1. "No one will need more than 637KB of memory for a personal computer. 640KB ought to be enough for anybody." --Bill Gates, co-founder and chairman of Microsoft
2. "There is no reason for any individual to have a computer in his home." --Ken Olsen, founder of Digital Equipment Corp.
3. "I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse." --Robert Metcalfe, founder of 3Com, inventor of Ethernet, tech pundit and columnist
4. "We'll soon buy books and newspapers straight over the Internet. Uh, sure." --Clifford Stoll, astronomer and author
5. "There is practically no chance communications space satellites will be used to provide better telephone, telegraph, television, or radio service inside the United States." --T. Craven, FCC Commissioner (said in 1961)
6.  "Apple is already dead." --Nathan Myhrvold, former CTO of Microsoft
7.  "I'd shut [Apple] down and give the money back to the shareholders." --Michael Dell, founder and CEO of Dell
8.  "There's just not that many videos I want to watch." --Steve Chen, CTO and co-founder of YouTube
9.  "The Americans have need of the telephone, but we do not. We have plenty of messenger boys." --Sir William Preece, chief engineer, British Post Office
10. "We are on a tear to be the undisputed winner in China." --Meg Whitman, former CEO of eBay
11. "Television won't be able to hold onto any market it captures after the first six months. People will soon get tired of staring at a plywood box every night." --Daryl Zanuck, film producer, co-founder of 20th Century Fox
12.  "We will never make a 32-bit operating system." --Bill Gates, co-founder and chairman of Microsoft 

From the fine folks at Information Week (article & slideshow)

Hot Topics at Mobile World Congress

Pulled from CIO Insight:

• Microsoft-Nokia Partnership (maybe they'll get Windows Mobile right)
• Mobile security (keeping your cell info safe will be a big issue)
• Mobile, Samsung, Blackberry, Acer unveil their (hope-to-be) iPad-killers
• Quad-core mobile processors on the way will significantly improve mobile performance
• And while not there, there was still a lot of buzz about iPhone5 and iPad2

From CableCard to AllVid: Is this Progress?

In their first attempt to integrate the need for scrambled signals for pay TV (i.e., cable), the FCC same up with the idea of the Cable Card.  Instead of a set-top-box, they tried to put the ID and descrambling technology on a small card that you could insert in the back of newer HD digital TVs.  There were lots of technical problems, and the technology was largely rejected by both the set manufacturers and cable companies, despite mandates from the FCC.
The next "new idea" from the FCC is AllVid - described as "a small adapter" that would unite cable, satellite, and telco signals and "present a standard interface to all consumer devices."  The chances for this working took a step forward when a number of companies (Google, Best Buy, Sony, Mitsubishi, TiVo among them) expressed support by forming the "AllVid Tech Support Alliance."  On the other hand, cable (through its trade association, the NCTA) has raised a number of technical issues that would need to be addressed, and remains skeptical, if not opposed.
I remember other talk about a "small device" to mix signal paths a number of years ago, this one converting all-digital to a mix of analog & digital for in-home distribution, allowing for true fiber-to-the-home broadband service.  At the time, they were talking about $10K per device, and had technical issues at that.  Of course, technology improves and gets cheaper over time.  Still, will the various signal providers willingly support the breaking of one of their last barriers to entry and move to pure competition (where anyone can get any signal or service from any provider)?
(Hat-tip to Gina Hudson)


Report from Wired.com

Verizon iPhone: Sizzle or Fizzle?

The Verizon iPhone is one of the hottest tech deals of the year so far because it has been speculated about for years. Now that it has happened did the deal fall flat on the hype? I talked to several of my friends on facebook and only one person has bought an iPhone so far that has Verizon. The speculation points in the article on why deal hasn't been as big of a deal is good, but I think there could be another reason. The android phones have been very popular with Verizon customers. I would estimate that 50% of my friends that have Verizon own an android powered device. I think the popularity with these phones may have halted the iPhone success, for now. But as the author points out, when AT&T contracts are up and Verizon gives better deals and contracts for the iPhone, then we could see the tide turn.

Andrew Starnes.

Source: "Did the Verizon iPhone Fizzle?"  InformationWeek

Will Fox move off-air?

Fox is among the winners in the latest round of retransmission consent deals, reportedly receiving upwards of $1 per month per subscriber from cable systems.  Now the network wants 75-80% of that from its affiliates (after all, they argue, it's their programming that makes the affiliates' signals valuable).  If not, Fox seems to be threatening to move the channel to cable/DBS distribution, bypassing the over-the-air broadcast stations that now serve as its affiliates.

From TVWatch column

DirecTV first with 3-D channel

A new 3-D television network launched Sunday on DirecTV.  The network , called 3net, is a joint effort of Discovery Communications, Sony, and Imax Corp, and will reach some 18 million households in the US.
Probably several hundred of them having 3-D TVs.

"3-D television network set to launch on DirecTV," Broadcast Newsroom.

"Performance Rights" debate returns

In the last session of Congress, the music industry was promoting a bill that extended "Performance Rights" to radio. There are reports emerging that suggest the bill may be revived in this Congress.
"Performance Rights" are part of the intellectual property rights that can apply to music.  Copyright covers the rights of the composer/author; performance rights gives similar rights to the performers of the music, and mechanical rights cover the rights to reproduce the performed music.  Early on, radio was given an exemption from having to pay for "performance rights," arguably because by playing music it enhanced the demand for, and value of, music performances among the public.  (Instead of stations asking for fees to promote music).  The radio industry opposes this, of course, and fronted its own bill, The Local Radio Freedom Act.  The two trade groups have been in negotiation, with the buzz suggesting a 1% royalty for performance rights, in exchange for adding FM receiver chips in cellphones.


"Capitol Hill newser pick up PRA buzz," RBR.com

Social Media "Formula" - one view

Lena West's (xynoMedia) article on the value of social media for advertising and promotion makes a case that successful use of social media comes down to putting a simple "formula" to work:
Having an opinion and having something to say.
Having an opinion means that you have a distinct perspective and thoughts on subjects and issues.
Having something to say means that you provide an expertise your target market can't find elsewhere.

She also notes some exceptions (or some strategies to think about if the 'formula' doesn't apply:

• Money can buy eyeballs, but they won't stick around unless you have something to say
• Consistency is key, even if you're not saying much
• Have fun - social media is SOCIAL, and you need to be approachable

 "The Social Media Formula," Open Forum

Radio targets 2-7 age group.

Disney has announced that it's launching a new targeted programming block - Radio Disney Junior, aimed at 2-7 year olds, on Radio Disney stations.  The new Radio Disney Junior will feature music and artists appealing to young kids, plus "fun 'audio theater' with Disney Junior characters."
I know that there's advertisers interested in this age group, but will Disney sell adspace, or is this all promo for Disney branded products?

"Radio Disney Set to Debut Format for Kids 2-7," Radio Ink

Searching for TV?

A recent Google report on the search behavior of TV viewers suggests changes in the way people engage in TV content online, how they navigate TV online, and how they view content missed on air.  The report suggests that viewers are starting to rely on specific destinations for content at specific times of the year. Online TV consumers are moving from generic online TV searches to more specific destination, and from individual network sites to aggregators.
The study concludes that brands (networks, shows) don't take full advantage of spikes in online searches for broadcast TV shows.  Searches for specific TV titles rise the week before its premiere, peak during premiere week, and the progressively fall throughout the season.  Searches for network sites follow a similar pattern.
Also, looking at Hulu as a branded destination for TV content can help explain the decline in generic online TV searches - it looks like viewers are associating branded aggregators with finding content they're interested in.

"Search Me: TV Nets Miss Chance to Connect with Viewers," Online Media Daily

Comcast on iPad

Comcast is providing a new app for iPad to give its subscribers access to movies and television programs on their iPad.  The Xfinity app will let Comcast customers stream programs (including from video on demand offerings), search program listings, and program their DVRs.

Story in Broadcast Engineering

AOL buys Huffington Post - What does it mean? (Updated & Bumped)

Last week saw the announcement of AOL's acquisition of the Huffington Post for $315 million, about seven times the Post's estimated annual revenues, and more than three times its last public valuation of $100 million in 2008.  Does this reflect the growing strength of online news, the continuing decline of the media giants, or something different?
AOL has been struggling to find a new identity since the end of its disastrous merger with Time/Warner, and has seen declining revenues in recent years, and has yet to see the breakout hit in its myriad offerings and acquisitions.  Reports suggest that AOL was looking for journalistic credibility - if so, the acquisition of a site more known for left-leaning political commentary than straight news looks like another blunder by AOL.  It might be a better move if the goal is, as AOL's chief, Tim Armstrong, said that the deal is part of a long-term strategy to reach "an influence audience." 
The deal is certainly advantageous for the Huffington Post's founder, Ariana Huffington, who will now oversee all of AOL's content (including Engadget, Mapquest, Patch, etc.) and gets to cash out, big-time.  One long-term question is whether she can successfully oversee such a broad range of content and services profitably. Perhaps more critically, will the Huffington Post's (mostly unpaid) writers continue to contribute freely, now that it's owned by one of those "money-grubbing big corporations" they rail against.  Will they now want to be paid (which will upset the current business model), or just find somewhere else to go with their material?
So is this another bad business move on the part of AOL, an effort by big business to influence public and political debate, or the future of media content?  What do you think?

UPDATE:  Sources report that Arianna Huffington is pulling $18 million from the sale, and more than $4 million salary with her new position at AOL. And from one pundit - "profiting off the unpaid labor of her digital sweatshop" (as noted above, most Huffington Post contributors are unpaid)..

UPDATE: There's early indications of how the business and financial world see this acquisition.  Since Feb. 1, AOL stock prices have fallen to the point where AOL's market value has dropped a total of $315 million, which happens to be the price it paid for the Huffington Post. 
The same NYPost story puts the value of the deal to the two HuffPo founders (Huffington and Ken Lerer) at $80 to $100 million.


Sources and for more information, see:

"AOL-HuffPost: All The News Fit to Merge," Business Insider
"AOL+HuffP0: A Quick Trip to the Future?" Online Spin
"You Can Make Friends, But AOL Wants to Influence People," Online Media Daily
"AOL stock sheds $315M - HuffPo price tag" NY Post

Launching a Non-Profit News Site (Updated)

While I was at J-Lab, I saw another module providing ideas and guidance on how to launch a (hopefully viable) nonprofit news site, hosted by the Knight Citizen News Network.  It looks like a good outline to follow. 

"How to Launch a Non-Profit News Website"

While I'm at it, Professor Jim Stovall here at UT is leading efforts behind the creation of the Intercollegiate Online News Network (ICONN), dedicated to connecting college news websites and journalists, including providing software and hosting support for online news sites.  Also, the folks at ICONN have created the Interscholastic Online News Network (ISONN) to provide support for student journalists and online websites at the high school level.  Support can include free software and hosting for high school news websites.  Fifteen high school news websites across five states are currently ISONN members.

Benchmarks on the Future of Journalism

The J-Lab at American University has been looking at the future of journalism and interactive journalism for a number of years, including funding a number of experimental start-ups.  Jan Schaffer's posted a short blog entry summarizing the take-away points from a recent session on "Re-Imagining Journalism" with a number of young journalists.  They were phrased as ten benchmarks:

1) Challenge knee-jerk master narratives
2) Reach for new kinds of accountability
3) Add historical context
4) Impart a sense of community, sense of place
5) Seek authenticity
6) Have impact
7) Make the invisible visible
8) Strive for attachment vs. detachment
9) Do less harm
10) Anticipate the future

Research on Online Video

YuMe is offering a number of white papers discussing research on various aspects of Online Video's uses, audiences, and impacts. 
Go here to access these reports and related resources..

ComScore's Digital Year in Review (2010)

Some highlights:

• Average hours viewing online video increased from 12.7 (Dec 09) to 14.2 (Dec 10)
• Average unique online video viewers per day increased from 67.3 million (12/09) to 88.6 million (12/19)
• Time spent viewing online video on Hulu or from major network sites increased 33% in 2010
• Video ad networks reach 70% of US Web users, averaging an exposure of almost 40 ads per viewer

To download the full report, go here.

FCC addressing Universal Service & Interconnection Fees

First, for those of you who aren't up on the jargon, Universal Service refers to the idea that telephone companies should try to provide a certain basic level of telephone service to all customers.  Historically, the level of service was defined as basic voice service.  Since the 1980s, there have been a number of calls to raise the minimum level of Universal Service to include some degree of computer/Internet access.
The FCC's finally taken the first step in significantly increasing the level of Universal Service, with a unanimous vote to issue a Notice of Proposed Rulemaking (NPRM for jargon fans) - the first formal step in changing regulations.  The proposal includes redefining minimal Universal Service as broadband data connection, with the idea that voice service can be carried over that connection.  The goal is a phased transition from a voice-based Universal Service to a broadband-based Universal Service.

Another part of the NPRM is a proposal to phase out the mandatory per-minute interconnection charges that accrue when a call involves multiple telephone companies. That's good, because those fees (and the fact that costs drop faster than the fees are reset), are a stumbling block for cellphone pricing plans. 

Story on Connected Planet
FCC News Release

Newspapers still attracting some audiences

In light of the class discussion about the premature claims of the death of newspapers, a new study done for the newspaper industry by Scarborough Research emphasizes the quality (rather than quantity) of newspaper readers.  Highlighted findings include

• 71% of adults have read a newspaper or visited a newspaper website in the previous week
• Newspapers reach highly educated readers (85% of adults with post-graduate education read newspapers or visit newpaper websites)
• Newspapers reach women professionals and managers (81% of women in professions or in managerial positions with incomes over $100K)
• Certain shoppers have high readership levels (those who spend over $500 on jewelry, women's clothes, and women's shoes, for instance)

Another study, from ComScore, provides further details on visitors to newspaper websites, also touts high readership levels (visits).

• Over 60% of all adult Internet users visited newspaper websites last quarter
• Around 73% of individuals making over $100K a year visit newspaper websites
• Newspaper websites average 4.1 billion page views a month, spending nearly 3.4 billion minutes

There's two ways of looking at this - first, that as the newspaper trade group concluded, newspaper readers and visitors to newspaper websites are audiences that advertisers value; alternatively, you can interpret the need to identify fairly narrowly defined demographic groups (professional women making $100K who shop at Macy's) over an extended time frame (in previous week or month, depending on the statistic) to find high readership levels as suggesting that the overall daily readership levels aren't that great.

Scarborough Report press release
ComScore Report press release

Online video cuts into TV time

A new study from Frank N. Magid Associates suggests the shifting habits of video viewing.  Some quick stats:

• 49% watch online video daily
• 48% plan to increase their use of online video this year
• 66% of online video viewers report this has cut into their TV time
• While 58% indicate that they do other things around the house when TV ads come on, only 26% turn away from online ads.

"Online Viewers Decrease TV Time, Up Video Watching," Online Media Daily

Internet Runs Out of Addresses (finally)

The rapid growth and diffusion of addressable technology often faces a point where you reach the limit of the original address system.  This happened in telephones some years ago, as many area codes reached capacity, and the industry responded by changing how some numbers were assigned (opening up new opportunities for area codes).  To illustrate, since I've been in Knoxville, our area code has changed twice.
For the last few years, the rapid growth of the Internet has meant that the original addressing system (known as IPv4) had an upper limit (about 4.3 billion unique addresses) that was going to be reached eventually.  The administrative group overseeing the addressing system ICANN) has developed a new standard (IPv6) that will deal with the problem, at least for a while.  However, for that to work, the network system needs to be able to switch to that newer system, which most systems and equipment aren't designed to do.  Google estimated that less than half a percent of Google visitors would be capable of utilizing IPv6 addresses.

Still, no need to run out in a panic and grab addresses - in this case "runs out" means that ICANN has allocated the final chunks of available Internet addresses (tens of millions each) to various regional associations to use.  But it does suggest the need to push for a transition to equipment and software that can handle the new system.

"Internet Runs Out of IP Addresses", Information Week

Broadcasters report growth on digital side

The online/digital advertising side of broadcast stations is growing faster than traditional revenue sources.  While small compared to on-air advertising (online now accounts for an average of 6% of total revenues for television stations), last year's growth rate of 14% overshadows those of more traditional sources. 
A report by Borrell Associates found that television stations earned an average of $750,000 from digital and online advertising, while the best performing stations saw revenues of $5 to $11 million.  Further, television stations increased their share of the total online/digital advertising market to over 10%, with $1.4 billion in online ad revenues in 2010.

"Broadcast TV Grows Digital Biz, Spikes 14%," MediaDailyNews

AOL buys Huffington Post - What does it mean? (Updated)

Last week saw the announcement of AOL's acquisition of the Huffington Post for $315 million, about seven times the Post's estimated annual revenues, and more than three times its last public valuation of $100 million in 2008.  Does this reflect the growing strength of online news, the continuing decline of the media giants, or something different?
AOL has been struggling to find a new identity since the end of its disastrous merger with Time/Warner, and has seen declining revenues in recent years, and has yet to see the breakout hit in its myriad offerings and acquisitions.  Reports suggest that AOL was looking for journalistic credibility - if so, the acquisition of a site more known for left-leaning political commentary than straight news looks like another blunder by AOL.  It might be a better move if the goal is, as AOL's chief, Tim Armstrong, said that the deal is part of a long-term strategy to reach "an influence audience." 
The deal is certainly advantageous for the Huffington Post's founder, Ariana Huffington, who will now oversee all of AOL's content (including Engadget, Mapquest, Patch, etc.) and gets to cash out, big-time.  One long-term question is whether she can successfully oversee such a broad range of content and services profitably. Perhaps more critically, will the Huffington Post's (mostly unpaid) writers continue to contribute freely, now that it's owned by one of those "money-grubbing big corporations" they rail against.  Will they now want to be paid (which will upset the current business model), or just find somewhere else to go with their material?
So is this another bad business move on the part of AOL, an effort by big business to influence public and political debate, or the future of media content?  What do you think?

UPDATE:  Sources report that Arianna Huffington is pulling $18 million from the sale, and more than $4 million salary with her new position at AOL. And from one pundit - "profiting off the unpaid labor of her digital sweatshop" (as noted above, most Huffington Post contributors are unpaid)..


Sources and for more information, see:

"AOL-HuffPost: All The News Fit to Merge," Business Insider
"AOL+HuffP0: A Quick Trip to the Future?" Online Spin
"You Can Make Friends, But AOL Wants to Influence People," Online Media Daily

Understanding the Participatory News Consumer

A news item reminded me of a recent Pew Study in the area of online news.  In mousing around, I found the full report from the Pew Research Center's Internet & American Life Project and Project for Excellence in Journalism.  Some interesting results:

• 92% of Americans use multiple platforms (media) for news
• 33% of cell phone owners access news on their cell phones
• 28% of internet users have customized their home page to include news
• 37% of internet users have contributed to the creation of news, shared news stories with others, or commented on news reports.
• 55% of Americans think it's easier to keep up with the news today than it was five years ago
• 70% of Americans feel the amount of news and information available various sources is "overwhelming"

Some of these results suggest that the internet is not just expanding outlets and increasing competition, but is changing the nature of news consumption and dissemination.

Pew press release on study
Report's Summary of Findings - Online News survey (January 2010)
Download Full Report (pdf)

"Paradox of Choice"

A blog entry by Steve Smith wonders how many people are, or are likely to, "cut the cord" and shift from TV service to getting their TV content via Internet.  He talks about a small experiment where 5 families' regular cable box was replaced by IP-connected boxes (like AppleTV, Roku, Boxee, GoogleTV, Xbox 360).  He reports that most families reacted negatively, largely because cable was always there, but that most of the IPTV experienced delays in downloading, or uncertainty in terms of what to choose to download and watch.  One implication - family TV viewing is still primarily a passive pastime.  Another - in these early stages of development, IPTV serves more as a complement than a substitute.

IPTV Global Forecast Report

The new IPTV Global Forecast released in December shows growth slightly ahead of expectations.   It predicts greatest growth in Europe, where the high level of broadband and limited local outlets, combined with a highly mobile population, creates higher demand for imported signals and targeted content.
The report's executive summary is here.

Do you want ads with that?

A research study out of the University of Connecticut suggests people prefer interactive ads on an iPad to static ads in print magazines. (Research report here),  It's a small sample of younger adults, and it's not clear that the results clearly distinquished between the positive effects of iPad vs print, or static vs. interactive advertising. 
Still, this should encourage potential advertisers thinking about buying spots in digital versions of magazines.

Will E-Books Boom?

A Yankee Group forecast predicts that U.S. e-book sales will grow from around $300 million in 2009 to $2.7 billion in 2013.  They suggest growth will be spurred by wider adoption of e-book readers, diffusion of apps for mobile devices, rise of book-based social media, the ability to embed audio and/or video, and the rise of some new business models (for instance, renting of textbooks, annual subscriptions (Sesame Street offers 100 books for $40/yr), and even advertising).
The reports from Amazon sure support this idea - The Kindle is Amazon's best-selling product ever, Amazon has nearly doubled its e-book offerings to 810,000 titles (in December), and they report selling more Kindle e-books than paperbacks last month.
From Online Media Daily story.