Part of the language of the 1996 Telecomm Act directed the FCC to regularly examine its ownership rules, with an eye towards opening things up. One of the last areas to be addressed has been the 1970s-era ban on newspaper-TV cross-ownership in the same market. The FCC tried a slight loosening in 2007, only to have its proposed change overturned by the courts in July because the FCC had skimped on the public comments period.
The FCC has already permitted a few cases of newspaper-TV cross-ownership to occur in New York and Boston - in both of those cases, however, there were at least two newspapers in the home market and the TV stations did not have a significant local news presence at the time. The new proposed rule will permit newspaper -TV cross-ownership in the top 20 markets, as long as the TV station did not operate as a duopoly (did not own or operate a second station in the market). Final establishment of the rules will be delayed until the 45-day public comments period has lapsed.
The newspaper-broadcast station cross-ownership bans originated in the 1960s. At the time, local newspapers owned many of the dominant radio and television stations in its market, and the concern was that this would limit diversity in news programming and growth of broadcasting. The ban initially pertained to any broadcast outlet, but in the 1980s, the FCC allowed local newspapers to pick up radio outlets. With the FCC waivers in some markets, the considerable expansion of news outlets, and general deregulatory thrust of the last 20 years, I made an argument for the idea of allowing newspaper-TV cross-ownership, as long as neither was the sole media outlet of that type in the market's main city. While there might be some concern in terms of news diversity, a strong local TV station can help subsidize a newspaper's operations (particularly a second competitive daily) while expanding news coverage opportunities for both outlets. Considering the current state of local newspaper revenues and profitability in the top 20 markets, perhaps it's time to consider this more as a policy move to save daily newspapers and promote local journalism rather than a shrinking of news content diversity.
Source: FCC to Ease Media Rule, Wall Street Journal
Friday, December 23, 2011
Tuesday, December 20, 2011
AT&T Pulls Bid for T-Mobile
When AT&T reached a deal to acquire T-Mobile about a year ago, it seemed like a reasonable deal. AT&T gained some needed spectrum and improved its signal coverage areas. In particular, the added spectrum and ability to repurpose some overlapping coverage areas would speed up its ability to roll out broadband 4G and broadband WiFi service. T-Mobile subscribers would see their coverage areas expand significantly. On the other hand, whenever you have merger and acquisition activity among the 4-6 largest firms in an industry, you have monopoly concerns. With evil old AT&T (or at least its corporate name) involved, it also attracted a host of negativity from activists.
This should have been of less concern in this case, as cell and wireless services are not monopoly services. These firms face direct competition from multiple wireless and wired direct competitors in almost all markets. Even with AT&T also a major landline telecom operator in some parts of the U.S., it's unlikely that the proposed acquisition would create any large monopoly markets, or even increase AT&T's "monopoly power" in major markets in the U. S.
While it was anticipated that both the Justice Dept. and the FCC would look at the merger closely and investigate it's potential anti-competitive impact, it was highly unusual for both the Chairman of the FCC to publicly announce his opposition to the acquisition, and the Justice Dept. to launch an anti-trust suit against AT&T, before the results of those studies were in. It was more like the administration opposed the purchase for political reasons and pressure from activist groups linked to the administration, rather than concern over the potential impact on public welfare. So AT&T, reading the tea leaves, bowed to the pressure and pulled out of the deal.
By the way, T-Mobile is still being shopped around by its current owner, Deutsche Telekom, with current rumors pointing to a deal with Sprint, which is a rung or two below AT&T in market size. And for you non-economists, that deal is actually more likely to impact market concentration and result in increased monopoly power. So much for the concern being driven by anti-trust concerns rather than being a result of anti-AT&T hysteria and political motivations.
Sources - AT&T Pulls $39 Billion T-Mobile Bid After Regulator Opposition, Bloomberg BusinessWeek
Activist Groups: Ding-Dong the AT&T-T-Mobile Deal is Dead, Broadcasting & Cable
This should have been of less concern in this case, as cell and wireless services are not monopoly services. These firms face direct competition from multiple wireless and wired direct competitors in almost all markets. Even with AT&T also a major landline telecom operator in some parts of the U.S., it's unlikely that the proposed acquisition would create any large monopoly markets, or even increase AT&T's "monopoly power" in major markets in the U. S.
While it was anticipated that both the Justice Dept. and the FCC would look at the merger closely and investigate it's potential anti-competitive impact, it was highly unusual for both the Chairman of the FCC to publicly announce his opposition to the acquisition, and the Justice Dept. to launch an anti-trust suit against AT&T, before the results of those studies were in. It was more like the administration opposed the purchase for political reasons and pressure from activist groups linked to the administration, rather than concern over the potential impact on public welfare. So AT&T, reading the tea leaves, bowed to the pressure and pulled out of the deal.
By the way, T-Mobile is still being shopped around by its current owner, Deutsche Telekom, with current rumors pointing to a deal with Sprint, which is a rung or two below AT&T in market size. And for you non-economists, that deal is actually more likely to impact market concentration and result in increased monopoly power. So much for the concern being driven by anti-trust concerns rather than being a result of anti-AT&T hysteria and political motivations.
Sources - AT&T Pulls $39 Billion T-Mobile Bid After Regulator Opposition, Bloomberg BusinessWeek
Activist Groups: Ding-Dong the AT&T-T-Mobile Deal is Dead, Broadcasting & Cable
IBM Predicts: 5 Transformative Innovations
The thing is, innovation just keeps on coming. Much is incremental, but sometimes a new idea comes along that is transformative (or at least has the potential to be). IBM's been trying to predict what's next for about a hundred years, from its earliest days as a builder of punch card readers to it's more recent habit of producing annual lists of what it thinks tech innovation will bring. Sometimes the predictions miss, like when the 1950s era CEO predicted that total global demand for that new product of theirs, the computer, would be 5. Other predictions, like computers could become personal devices, paid off big time.
The most recent list makes 5 predictions about potentially game-changing innovations that could occur within the next five years:
The most recent list makes 5 predictions about potentially game-changing innovations that could occur within the next five years:
- Technology will be able to capture, store, and use common human movements as a significant power source. Hybrid technology in cars is beginning to recapture power from motion changes - can technology be scaled down to capture human motions like walking or riding a bike?
- Speech and facial recognition technologies can aid in creating unique identifiers for people, and a seamlessly interconnected network can use these instead of multiple sets of log-ins and passwords. "Each person has a unique biological identity and behind all that is data," IBM said. "Smarter systems will be able to use this information in real-time to make sure whenever someone is attempting to access your information, it matches your unique biometric profile."
- Mind reading moves from fiction to fact. Advances in the ability to monitor and record electrical brain activity are already revolutionizing cognitive research and aid those with spinal injuries. As we learn to interpret the brain's signals, the human brain could become a direct input device.
- The Digital Divide closes. In the West, the Divide's pretty much gone, at least in terms of basic access. Smartphones, tablets, and other connected devices will help shrink remaining gaps in use faster, and on a wider scale than relying on computers alone.
- Junk mail becomes smart mail. If you think of junk mail as unsolicited offers for random goods and services, then the connected net's ability to collect, store, and utilize individual preferences and behaviors allows smarter marketing. You'll still be bombarded by unsolicited offers of goods and services, but in the future you're likely to actually be interested in them. In addition, spam filters can also use that information to be more precise and effective, and help ensure that what you see is of at least potential interest or relevance.
Source - 5 Innovations IBM Says Will Change Your Life, Information Week
Kindle Fire shows impact
MeFeedia, a video aggregator that draws from more than 30,000 publishers, reported that it saw a tripling of the number of installs for Android platforms after it released a Kindle-Fire native app. The success of the Kindle version resulted in a jump to the top 100 in Amazon's app store for MeFeedia from the previous peak of 1,500 as a basic Android app.
Frank Sinton, CEo of MeFeedia suggested the jump in use showed the importance in developing a native app for particular platforms, as they offer a better user experience and can drive greater usage.
Source - Video Publisher Sees Video Boost from Kindle Fire, VidBlog
Frank Sinton, CEo of MeFeedia suggested the jump in use showed the importance in developing a native app for particular platforms, as they offer a better user experience and can drive greater usage.
Source - Video Publisher Sees Video Boost from Kindle Fire, VidBlog
Goin' Mobile - Content on the Move
A new report by Broadcom of a recent consumer poll suggests that the growth in mobile media devices is contributing to increased consumption of media content away from home. Of those with mobile devices, about a third report consuming more than 10 hours of media content a week while on the go, and more than half report consuming at least 5 hours a week. Two thirds reported they would stream TV signals to multiple wireless devices if their cable or satellite provider offered the service.
And ownership of those devices has exploded in recent years - 22% of respondents said they had 6 or more wireless devices at home; 28% reported adding (and configuring) a new wireless device in the last month. When thinking about a new HDTV, two-thirds said they were more likely to purchase one that could connect to wireless devices and the Internet. The desire for connectivity is extending to the car; when looking at a new vehicle's features, 52% wanted real-time access to traffic updates and other data downloads; 50% looked for easy attachment to digital music players; 43% looked for attachment points for smartphones or tablets; and 31% looked for Internet access.
Home or away, multi-screen entertainment is on the rise - 87% of respondents claimed they consumed at least 10 hours of digital content weekly; 68% said they watch at least two videos a day, and 24% said they watched 5 or more videos daily; the survey found more than a third have said they've experienced "connectivity withdrawal" when unable to get online from a mobile device (smartphone, tablet, or laptop). Furthermore, that's not a particularly rare occurrence, with some 30% saying it happens weekly.
Increasing, the report concludes, consumers are demanding, and expecting, seamless and pervasive connectivity from both devices and content providers. Consumer electronics firms are providing the enabling technology - content providers need to work on how to make their offerings available in ways that match.
Sources - Consumers Looking For Seamless, Pervasive Connectivity, MediaPost Research Brief
Broadcom press release
And ownership of those devices has exploded in recent years - 22% of respondents said they had 6 or more wireless devices at home; 28% reported adding (and configuring) a new wireless device in the last month. When thinking about a new HDTV, two-thirds said they were more likely to purchase one that could connect to wireless devices and the Internet. The desire for connectivity is extending to the car; when looking at a new vehicle's features, 52% wanted real-time access to traffic updates and other data downloads; 50% looked for easy attachment to digital music players; 43% looked for attachment points for smartphones or tablets; and 31% looked for Internet access.
Home or away, multi-screen entertainment is on the rise - 87% of respondents claimed they consumed at least 10 hours of digital content weekly; 68% said they watch at least two videos a day, and 24% said they watched 5 or more videos daily; the survey found more than a third have said they've experienced "connectivity withdrawal" when unable to get online from a mobile device (smartphone, tablet, or laptop). Furthermore, that's not a particularly rare occurrence, with some 30% saying it happens weekly.
Increasing, the report concludes, consumers are demanding, and expecting, seamless and pervasive connectivity from both devices and content providers. Consumer electronics firms are providing the enabling technology - content providers need to work on how to make their offerings available in ways that match.
Sources - Consumers Looking For Seamless, Pervasive Connectivity, MediaPost Research Brief
Broadcom press release
Monday, December 19, 2011
PolicyFail - Squeezing TV
Various proposals to recover a chunk of the broadcast spectrum reserved for television continue to be considered by various players in Washington, DC. As noted in earlier posts, the shift to digital television was supposed to free up some spectrum, and previous channel reconfigurations have allowed the FCC to take back. About one-third of previously allocated spectrum has already been returned to the FCC for reallocation. The current proposals would reduce local broadcast television spectrum by another 40% or so.
While the previous re-allocations were able to be accommodated with some minor shifting of channel assignments, the NAB estimates that some 40% of local TV stations operate on one of the channels proposed for reallocation, and remove much of the spectrum used by low-power TV stations and the retransmitters used to extend signals in rural areas. As such, it's being strongly opposed by both commercial and noncommercial broadcasters, who note correctly that this reallocation would be costly, besides perhaps hampering any future local TV broadcasting expansion.
Driving the change is the need for appropriate spectrum to roll out nationwide broadband WiFi services, and a desire for the funds thought to be coming from auctioning off that spectrum. At times, the reallocation and proposals for auction have been included as straight revenue enhancements, some proposals suggest that instead of straight revenue auctions, that potential spectrum buyers pay TV stations who agree to move (since both proposed services are local, there is no need for a broad national plan).
However, if reallocation is seen more as a revenue resource than as a beneficial shift in services allocations, I'm afraid there will be a push for a much bigger spectrum grab with little consideration given to the actual costs of making the transition, much less the social cost in terms of limiting local television options and availability.
Source: TV Channel Squeeze Proposed to Pay for Tax Cuts. Broadcast Newsroom
While the previous re-allocations were able to be accommodated with some minor shifting of channel assignments, the NAB estimates that some 40% of local TV stations operate on one of the channels proposed for reallocation, and remove much of the spectrum used by low-power TV stations and the retransmitters used to extend signals in rural areas. As such, it's being strongly opposed by both commercial and noncommercial broadcasters, who note correctly that this reallocation would be costly, besides perhaps hampering any future local TV broadcasting expansion.
Driving the change is the need for appropriate spectrum to roll out nationwide broadband WiFi services, and a desire for the funds thought to be coming from auctioning off that spectrum. At times, the reallocation and proposals for auction have been included as straight revenue enhancements, some proposals suggest that instead of straight revenue auctions, that potential spectrum buyers pay TV stations who agree to move (since both proposed services are local, there is no need for a broad national plan).
However, if reallocation is seen more as a revenue resource than as a beneficial shift in services allocations, I'm afraid there will be a push for a much bigger spectrum grab with little consideration given to the actual costs of making the transition, much less the social cost in terms of limiting local television options and availability.
Source: TV Channel Squeeze Proposed to Pay for Tax Cuts. Broadcast Newsroom
10 Cool iPad Apps From Uncle Sam
'Tis the season for Top 10 lists. This one's for fun, and a demonstration of potential.
- Marines Magazine - a quarterly interactive multi-media publication. Online version at http://marinesmagazine.dodlive.mil/
- LeafSnap HD - in case you're wondering what kind of tree that is, snap a pic of a leaf, and they'll let you know. They'll also let you access a lot of info about whatever it is. (I've tried this myself). Brought to you via the Smithsonian, Columbia University, and the University of Maryland.
- NASA App HD - access thousands of images and videos, the NASA TV feed, and mission info.
- Recovery.gov HD - supposedly identifies and allows tracking of all those Recovery Act projects. Nice idea, but the data has proven to be less than reliable.
- Federal Register app - coming from academia (U. of Central Florida) but with real-time links to the Government Printing Office, an online version of the Federal Register, which records all government actions.
- Army Onesource Services Locater - lets you search for local U.S. Army programs, services, and resources.
- U.S. Federal Reserve System app - you guessed it, info about the Federal Reserve banking system.
- Set in Style - online guide to a jewelry exhibit at the Smithsonian's Cooper-Hewitt National Design Museum in New York City, Fairly typical museum app.
- NASA Visualization Explorer - accesses some animations and simulations of geographic and astronomical phenomena.
- Turning the Pages app - from the National Library of Medicine, accesses the digitized content of some of its holdings (digital captures of scanned pages), with some annotations and comments.
Looking over the list, there's really two I'd call innovative - the Marines Magazine (as they thought about how to make it a new experience on mobile), and LeafSnap (as the idea of really being helpful). The two NASA apps are worth downloading because of the content available, but really just are mobile versions of online sites. The two museum apps, Set in Style and Turning the Pages, are nice in providing access to collections for those unable to visit the real thing, but are typical of what many libraries and museums are doing. The rest are really just mobile versions of more typical online accessible databases.
I guess it's tough to come up with 10 really innovative and interesting government projects, so some padding was necessary.
Source - 10 Cool iPad Apps from Uncle Sam, Information Week
FCC orders CALM
No, this isn't a ban on negative political advertising.
Rather, it refers to the Commercial Advertisement Loudness Mitigation (CALM) Act, which requires that TV advertisements be no louder than the programs surrounding them. The FCCs gone through the process of setting standards and the notice of proposed rulemaking, and decided that it will leave monitoring and enforcement to be based on patterns of viewer complaints, and it will be up to stations (and multichannel video providers like cable and satellite) to ensure compliance (rather than a commercial's source).
The new rule doesn't seem to say anything about PSAs or sponsorship announcements on noncommercial stations, so I guess those can still be as loud as they want.
In any case, it should cut down on reaching for the remote to turn the volume down during commercial breaks. At least a little.
Source: FCC Orders CALM Over The Land, TV TechCheck
Rather, it refers to the Commercial Advertisement Loudness Mitigation (CALM) Act, which requires that TV advertisements be no louder than the programs surrounding them. The FCCs gone through the process of setting standards and the notice of proposed rulemaking, and decided that it will leave monitoring and enforcement to be based on patterns of viewer complaints, and it will be up to stations (and multichannel video providers like cable and satellite) to ensure compliance (rather than a commercial's source).
The new rule doesn't seem to say anything about PSAs or sponsorship announcements on noncommercial stations, so I guess those can still be as loud as they want.
In any case, it should cut down on reaching for the remote to turn the volume down during commercial breaks. At least a little.
Source: FCC Orders CALM Over The Land, TV TechCheck
Deloitte's Tech Trends for 2012
Deloitte Consulting LLP recently released a list of what it feels will be the ten emerging technology trends with the greatest potential for impacting business innovation and how people access and use information. There seem to be five driving forces behind these: Mobility, Social Networking, Cloud Services, Analytics and "Cyber". They feel each of these offers the opportunity for further innovation and the potential to create new value for users and businesses. Here's the list of the top 10 trends, along with some comments on the applicability within media and journalism.
- Geo-Spatial Visualization takes advantage of the explosion of geographical, location-aware data. Combining the GPS tagging of mobile with the ability of Social Networking to tag and connect, the Cloud to store and access, and new visualization techniques that allow info to be overlaid live camera feeds, this trend encompasses a wide range of new uses, from sharing recommendations to locating friends, to advertising targeted to user and location, to sending news (traffic, weather) updates or warnings to those in affected areas.
- Digital Identities follows an effort to create unique identifiers that can follow users across the multiple devices we use. Digital identities would benefit e-commerce and online advertising, and provide a single access point for restricted content subscriptions and services.
- Data Goes to Work reflects the increasing ability to analyze and use the huge amounts of data generated online. This is a trend that journalism can really benefit from, from data-based reporting, to better understanding of what online readers want, to what formatting and layout options work best. Unlike past media measurement options, analytics can be used in real-time, and can use all responses rather than a sample. As media continue to become more competitive, both advertisers and media firms need to pay more and better attention to audiences, and one way is to track how they actually use media.
- Measured Innovation reflects the idea that analytics can also help focus and target your efforts to innovate, showing where the best potential for creating value lies.
- Outside-In Architecture reflects the idea that our need to know is colliding with our need to share. Deloitte sees this in a transition from siloed, enterprise-out design to operating in rapidly evolving ecosystems. Traditional media epitomize the siloed, enterprise-out design of the media firm delivering what they choose to a medium-specific market. As this trend continues, media need to abandon that model and the idea that they control content and its use - they need to welcome and utilize what others create and want to share, and to be willing to share themselves.
- Social Business. Deloitte sees 2012 as the year that social moves from media to the business. That's more than using social marketing - it's embracing social as a way of getting things done, leading to a fundamental reshaping of business operations. Some news organizations are taking baby steps in this direction, soliciting contributions from readers and viewers (a very small step in that direction).
- Hyper-Hybrid Cloud. As Cloud applications continue to evolve, they enable a degree of integration across devices, enhance the value of mobile, and offer access to data, content, and programs to an unprecedented degree. They also have the potential to help reshape how people view content and usage - in particular, in shifting focus from the value laying in the ownership of content, to the value coming from the ability to access content. It also ties in well with the increased emphasis on sharing. As this shift occurs, it will have significant implications for how content is marketed and for how intellectual property rights are framed.
- Enterprise Mobility Unleashed - Mobility is helping many firms rethink their operations. From a general business perspective, this means organizations "should make sure solutions are enterprise class - secure, reliable, maintainable and integrated." For media, mobility reflects the continuing disaggregation of the mass audience - and the idea that there may be more value in allowing audiences more choice and control in their media use, than in maintaining control over a consistent media use experience.
- Gamification - Not only are games a growing market, but aspects of gaming (simulations, game mechanics like tracking achievement, and skill-based learning) are increasingly recognized as having value in business processes. Advertising and PR has learned the value of gaming as a means of attracting users, and as a medium for messages. Media can also find better ways to use aspects of social networking and gaming to find new ways to engage users.
- User empowerment - the primary source for added value these days is in consumerization, and in the customization of consumption. In media and journalism, technology is giving users greater choice and control over what, where, how, and when media content is consumed. Technology continues to enable new forms of competition and new sources of news, entertainment, and information. Not only is there added value in providing consumers greater choice and control, but if media organizations can find ways to actively encourage interaction and engagement, they can build up brand image and reliance among users. And in this new media environment, it's not just the numbers of the audience, but the level of their engagement and commitment that has value for the media organization. Empowered users are more valuable users.
So, technology is likely to continue shaping the world generally, and I look for more significant shifts coming to media and journalism in the short term. Many will be disruptive, but will also offer significant opportunities to those media and news organizations that try to embrace and exploit them. At the very least, media need to be open to new ways of doing business in order to exploit the potential opportunities for value and revenues.
Source: Deloitte's Tech Trends Picks for 2012, CIO Insight
Friday, December 9, 2011
Music Services Bringing More Fun to Shopping
Post contributed by Brittany Hood -
For those of you who become agitated with the music playing across the store as you peruse racks of clothing while listening to your kind of music on your smartphone, technology has a solution for you! The Gap has teamed up with streaming music start-up Roqbot to allow Gap customers/Roqbot users to choose the playlist to play over the store’s loudspeakers. “Shoppers who check in with the Roqbot app may actively parse the store’s featured pre-approved music selections, pick favorite tracks and vote on others’ acoustic choices, thereby impacting currently queued selections” (Steinburg).
The Gap is only in the testing stage of this at its Chestnut Street location in San Francisco, California; however, this testing “…will run through the holidays and includes integrated support for Facebook, Twitter and Foursquare, the service could expand to future locations and retailers in 2012 if it proves successful on Chestnut Street” (Steinburg).
Source: Scott Steinburg. “The Gap and Roqbot Let Shoppers Decide StoreSoundtrack.” Rolling Stone.com
Thursday, December 8, 2011
How to brand like Apple
Post contributed by Lauren Loy -
It only takes walking into an Apple store to realize that the successful company has created a loyal community around their products that sometimes seems a little overwhelming and possibly even creepy. The obsession that Apple-lovers have with their Apple products appears to be a simple addiciton to a brand, but does that mean that said brand can get away with more blunders?
A 2011 Forbes magazine article seems to think this is the case. The article mentions the recent problem that was draining the life of the new Apple IPhone 4S, which was not acknowledged by Apple for several weeks. This was accompanied by many other problems with the new iOS 5 operating system. All these problems are now fixed, but that is not the point. The point is the apparent totally understanding and forgiving nature of Apple customers when it comes to their favorite brand. No matter how many mistakes Apple makes, customers are still willing and eager to buy the company's newest products and publicize their love of the brand.
The reason for this almost ridiculous branding obsession is mostly thanks to the late Steve Jobs. Customers feel a personal connection to Jobs through the products he spent his life constructing, promoting, and updating. Jobs used a rather unique marketing technique by creating an emotional connection with his customers, such that has never really been done in the realm of technology, which is usually an impersonal business. The Forbes article gives some helpful tips for other companies that want to create loyal followings:
It only takes walking into an Apple store to realize that the successful company has created a loyal community around their products that sometimes seems a little overwhelming and possibly even creepy. The obsession that Apple-lovers have with their Apple products appears to be a simple addiciton to a brand, but does that mean that said brand can get away with more blunders?
A 2011 Forbes magazine article seems to think this is the case. The article mentions the recent problem that was draining the life of the new Apple IPhone 4S, which was not acknowledged by Apple for several weeks. This was accompanied by many other problems with the new iOS 5 operating system. All these problems are now fixed, but that is not the point. The point is the apparent totally understanding and forgiving nature of Apple customers when it comes to their favorite brand. No matter how many mistakes Apple makes, customers are still willing and eager to buy the company's newest products and publicize their love of the brand.
The reason for this almost ridiculous branding obsession is mostly thanks to the late Steve Jobs. Customers feel a personal connection to Jobs through the products he spent his life constructing, promoting, and updating. Jobs used a rather unique marketing technique by creating an emotional connection with his customers, such that has never really been done in the realm of technology, which is usually an impersonal business. The Forbes article gives some helpful tips for other companies that want to create loyal followings:
- Build relationships with customers. Be transparent and embrace social media and networking like Twitter, Facebook, and blogs.
- Carry out some movement marketing. You must stop focusing on what you make, and instead, tell people what you believe in. In Jobs's case, he told the world he believed in "innovative, high-quality products." Think of a mission statement that touches a nerve with your audience and run with it.
- Make sure your mission statement resonates throughout every part of your operation. Do not say you believe in going green if you waste a lot of paper in the making of your products.
- Start a movement you believe in and the rest will follow!
More technology, less privacy
Post contributed by Asia Farmer -
Smartphones have the ability to do just about anything in this day and time. What seems to be the new catch is tracking locations via smartphone and other devices. Keeping track of where you are and have gone along with that of your friends is the norm for this generation. Smartphones have the ability to track one’s exact location without that person even thinking twice about it. Social media sites like Facebook and Twitter have even jumped on the bandwagon with providing ways for users to broadcast their exact location at that exact moment through a simple post or status update.
Websites like Four Square, Loopt, and Gowalla have made the job much easier by allowing users to voluntarily track their locations and make comments and reviews. Websites like these provide ways where one can track others by signing up through Facebook. Smartphones also have the ability to act as portable GPS systems and include applications for maps that also track exact locations. Much of what is done on our handy dandy smartphones is being tracked by towers through cell phone companies.
With technology on the rise with tracking every move and locations, it can also aid law enforcement and in doing their jobs by protecting citizens. Many people may consider it unjust for law enforcement and the government to get in the loop to find criminals via new technology. However, with many people directly and indirectly providing the information to the world leaves it up for grabs for anyone.
Source - How much privacy can smartphone owners expect? BBC News Magazine
Smartphones have the ability to do just about anything in this day and time. What seems to be the new catch is tracking locations via smartphone and other devices. Keeping track of where you are and have gone along with that of your friends is the norm for this generation. Smartphones have the ability to track one’s exact location without that person even thinking twice about it. Social media sites like Facebook and Twitter have even jumped on the bandwagon with providing ways for users to broadcast their exact location at that exact moment through a simple post or status update.
Websites like Four Square, Loopt, and Gowalla have made the job much easier by allowing users to voluntarily track their locations and make comments and reviews. Websites like these provide ways where one can track others by signing up through Facebook. Smartphones also have the ability to act as portable GPS systems and include applications for maps that also track exact locations. Much of what is done on our handy dandy smartphones is being tracked by towers through cell phone companies.
With technology on the rise with tracking every move and locations, it can also aid law enforcement and in doing their jobs by protecting citizens. Many people may consider it unjust for law enforcement and the government to get in the loop to find criminals via new technology. However, with many people directly and indirectly providing the information to the world leaves it up for grabs for anyone.
Source - How much privacy can smartphone owners expect? BBC News Magazine
Glamour goes Social
Post contributed by Krystyna Barnard -
In a November Folio article, TJ Raphael writes how “interactive mobile tactics drove social engagement for content and advertisers.” The magazine did this by implementing Social SnapTag technology into both print and digital editions of their magazine, which enabled readers to access packaging or promotional deals they see in the magazine. It also enabled the magazine to target various consumers and increase consumer communication via social networking sites through a sense of mass marketing. Raphael writes that the Social SnapTag is similar to the QR code, however, users don’t need a QR scanner or smartphone to interact with the program.
As a result of Social SnapTag, approximately 67 percent of consumers who used the program also “liked” the magazine, Raphael commented that "It just goes to show how prevalent social media has become in today’s technologically advanced society, not only for consumers, but for producers as well."
Source - “Glamour Gets 50,000 ‘Likes’ From Social Media Campaign,” Folio
In a November Folio article, TJ Raphael writes how “interactive mobile tactics drove social engagement for content and advertisers.” The magazine did this by implementing Social SnapTag technology into both print and digital editions of their magazine, which enabled readers to access packaging or promotional deals they see in the magazine. It also enabled the magazine to target various consumers and increase consumer communication via social networking sites through a sense of mass marketing. Raphael writes that the Social SnapTag is similar to the QR code, however, users don’t need a QR scanner or smartphone to interact with the program.
As a result of Social SnapTag, approximately 67 percent of consumers who used the program also “liked” the magazine, Raphael commented that "It just goes to show how prevalent social media has become in today’s technologically advanced society, not only for consumers, but for producers as well."
Source - “Glamour Gets 50,000 ‘Likes’ From Social Media Campaign,” Folio
Wednesday, December 7, 2011
Some Thoughts on Media Content Pyramid
OK, I've been working on this to finally get one of my Topic Paper ideas finished and posted. Well, except for figuring out how to port the diagrams over, and how to upload the paper itself. But to get your interest up, here's the text of the paper, anyway.
It builds on the previous post, so it replicates part of that.
Seth Godin's got an interesting blog post on "The erosion in the paid media pyramid." He starts with the suggestion that since the development of media, there's been a model of value and pricing options for paid media.
Basically, he differentiates paid media into 4 groups, with value and pricing related to supply, or the breadth of demand. At the bottom of the pyramid is Free content. He describes this kind of content as including content that is delivered to anyone who is interested in consuming it - primarily as a draw for sales of something else. Chris Anderson's Free covers the same ideas.
Mass content includes media products where the cost of replication and delivery are relatively low, allowing lower prices with the development of mass markets. With mass markets, value can be aggregated over larger numbers.
Limited content, Godin suggests, is rare and thus expensive. This can be the result of higher costs of replication and delivery, requiring higher pricing and limited markets, or can be a decision that inherent value is high enough that income can be maximized by restricting the size of the market.
At the tip of the pyramid is Bespoke content - which for any media product is the most expensive, as it needs to recoup the whole cost (and value) with a single exchange rather than averaging costs over a larger market.
Godin suggests that with the rise of competition, convergence, and the digital network economy, three things have occurred that have eroded, or upset, the pyramid.
- Digital media have significantly reduced replication and distribution costs, and have also expanded the availability of content. He suggests that this has led to an explosion of choice, or from the point of traditional media content producers, an explosion of competition and clutter.
- As a result, attention is worth more than ever before. In the old model, attention was the important value in Free, or even some Mass content, but was low compared to most other costs, and therefore didn't have a big impact.
- Again, as a result of #1, the marginal cost of one more copy in the digital world is zero (or close enough that nobody cares). This is important because general economic theory recommends setting price at marginal cost.
While he's got a point, he's also missing a lot by basing the pyramid on the linking of cost and pricing, and pricing with value. In other words, thinking that the only source of value is from commercial sales, and that the determinant of value is based largely on the costs of creation, replication, and distribution. Still, as evident in his description of "Free" and "Mass", there are values at work other than prices, coming both from those producing content and those consuming it. In noting that there is content that some will pay to have distributed, there is a recognition of content where the value to the creator comes from having it out there and used (Yochai Benkler's The Wealth of Networks provides a good look at these motivations). And there’s some recognition of demand in the sense that he recognizes that there is less demand for content that is more costly.
So let's try looking at the media content value pyramid from a bit wider perspective. One that looks at both the supply and demand sides of the market, as well as the value motivations of both producers and consumers. .We also have to start with baseline economic realities; first, media and information content is costly to produce (even before replication and distribution costs), and second, most content producers aren’t likely to continue to produce content unless they perceive that they’ll ultimately receive some amalgamation of value in excess of those costs. The final reality that needs to be addressed lies in the fact that the value of information goods and services, or media content, is uncertain. Part of that is that for most content, the perceived value may vary widely across contexts and consumers; and part of that is that the actual value to a consumer can not be determined until the content is consumed, so in every consumer decision there is uncertainty as to the value to be obtained. The latter is perhaps the prime factor behind the idea of bundling and regularization of media content – to reduce the overall uncertainty that some level of aggregate value will be obtained. It’s also led to the situation where content markets develop general pricing strategies based on aggregated demand and costs, rather than a strategy of pricing content individually.
In constructing a Content Value Pyramid in an emerging digital network society, you need to recognize how the rise and diffusion of digital technologies and digital networks have impacted media and content markets.
At the bottom I'm going to put content that people want consumed widely – and they want it badly enough to absorb production, replication, and distribution costs. This would include what could be termed promotional content (what Godin described as stuff given out with the hope of generating sales); but it may not be direct sales of related goods – there’s a large amount of content produced and distributed for self-promotion, to show off skills and abilities that may enhance the producer’s value in the market. I'm going to label a related segment of content push content - content that someone wants to get to users (such as public health campaigns). I'm also going to include noncommercial content, information goods and services whose value lies wholly or mostly outside of traditional paid media markets. This would include things like academic writings or sharing your vacation photos through social media. It might also include what one would call attention-getting content, content that exists to attract the attention of users to a medium and its other content offerings. The common element to these content types is that their value to their creator and/or distributor is based primarily on the width and breadth of distribution and use rather than individual commercial sales to consumers. As such, it also makes sense to price these at zero, as any positive price would restrict demand at least a bit. It may also make sense for these types of goods to have a negative price (through a subsidy of a related set of goods or costs). In that sense, you can still use the “Free content” label and place it on the bottom of the pyramid in terms of size and scope of market.
It is also a market that has exploded with the rise of the digital network economy, largely because technology has drastically lowered the threshold for content production. Back in the analog, physical media days, there were real costs associated with each of these, - and that meant producers and distributors knew that whether free, mass, limited, or bespoke, the market needed to generate sufficient sales at whatever pricing strategy to cover those costs. This imposed a threshold on underlying value of expected sales (revenues) that needed to be crossed before content would be offered, and severely limited the amount of content available to consumers in media markets. Between the rise of digital computing and media, and telecommunication networks, there has been a drastic reduction in the costs associated with creating content, storing it, duplicating and distributing it, as well as in the search costs of consumers finding it. This has enabled an avalanche of content to be unleashed in media markets, so that base level of “Free content”is much wider and much deeper.
I’m also going to use the “Mass content” label for the next stage, but define it primarily in terms of a combination of demand level and cost factors. Content in this category is characterized by two factors related to the scale of the content market – that there is sizable demand for the content at fairly low price levels, and that there is a viable mass reproduction and distribution system available that allows average costs to more or less match those levels. Much of what is considered entertainment content fits this category. Movies, with the theatrical distribution system, and broadcasting use media that can spread costs over thousands to millions of consumers. In print, the rise of mass markets occurred with changes in printing technology that dropped per unit costs of replication from dollars to fractions of pennies. But here I also want to differentiate content and market somewhat, based primarily on the relationship of mass scale pricing to average costs. There are clearly content markets where aggregate demand levels and average costs are low enough to fall below a market’s strategic pricing levels. I’ll label this Mass commercial content, and the book publishing and old record industries generally fell into this level. There is a quite significant second type of content that can be called “mass” – Mass subsidized content. This refers to types of mass content where the average costs don’t quite cover the relevant pricing strategy for that market scale. Early broadcasting is a clear example – while the “mass” distribution system reached large scales, it was difficult to enforce direct payments for use. In a public broadcasting model, the state could enforce a tax or usage fee for funding, but for a viable non-state model, funding needed to come from other sources. News is another example of mass subsidized content. Studies show that demand for news, marketed separately, is not sufficient to cover mass production costs in most contexts, but with the right mixture of content and subsidies, news organizations could be profitable. Taking advantage of bundling, in mixing what would be marginally commercial content (marketed alone) with push content and/or promotional content, mass subsidized content could achieve a point where their strategic pricing strategy, combined with revenues from subsidized content, could cover costs in a mass market.
With the lower reproduction and distribution costs of digital networked media, it’s quite likely that both “Mass content” categories will see significant growth in the range and scope of content and markets that follow a mass marketing strategy. Growth is likely, if only due to the lowered costs of digital media, and the fact that digital media markets can be truly massive (potential global reach). The new mass scale of digital markets, particularly if content industries shift from pricing strategies based on physical copies and develop viable (reduced) pricing strategies based on digital copies, whole new levels of consumption and purchase could emerge. With revised (and lowered) pricing strategies, more and more content is likely to move into, or be produced for, this category – which will shift supply curvess and drive demand and consumption skyward. In addition, if pricing strategies fall to the point where they are less that an individual’s minimum uncertainty threshold (i.e., the price is so low that people will try it without expectations of value), purchase and consumption could explode.
I’ll follow Godin again and use “Limited Content” as a label for the next type of content, which could be described as high-price, limited demand content. There are actually several different categories of content that could fall into this general layer for different reasons. The first is Limited demand content, where the differentiating feature is that while there is no significant demand on a mass level, there is a significant segment of the market for which there is strong demand. Examples are legal and financial information – in each case, pertinent information may be highly valuable to a small but identifiable market segment that recognizes that value and is willing to pay accordingly. Here, the costs are secondary to a strategic pricing strategy to restrict supply to keep price high. A second could be described as Limited supply content, where the costs of replication and distribution are high, and there are no viable low-cost alternatives. Live concerts or duplicates of bronze statues can be examples. Here, even if there is high demand for the content (think concert), the costs are so high that supply needs to be restricted by price to achieve a balance of revenue from price and actual costs. A key distinction from the Limited demand content is that if costs could be dropped to a “mass” level, more content could move into that layer, whereas with limited demand, content will likely remain in that limited (or even more restricted) market. There is one other type of content to consider – content where its scarcity is a significant component of its value to at least a segment of the market. Let’s call it Scarcity-value content. This is content, like signed limited editions of books or art prints, where its scarcity, or collectability, has significant value, at least to a limited segment of the market. Like Limited demand content, there is a definable market segment that places a higher value on the content than others, but that value comes from its imposed scarcity rather than the value of the content itself.
The common element in these three Limited content segments is that content producers (or marketers), for various reasons, consciously restrict supply of the content in order to take advantage of the fact that some small segment of the user or consumer market places a significantly higher value on the content than do most others in the market. As such, it seems unlikely that this portion of the pyramid will change much from the transition to a digital market. The larger market access of digital may enable Limited content media products to target, reach, and get bought by the small consumer segments in the larger market, but it seems unlikely that this will shift marketing and pricing strategies significantly.
Finally, one has to also recognize that the extreme of Limited content lies in what Godin’s pyramid calls “Bespoke content.” This is the case where only the original content is traded – a monopoly-monopsony market (one seller-one buyer). Let’s call this Unique content, as that’s the primary distinction from Limited. While this could conceivably apply to any content, let’s consider what economic characteristics make this kind of transaction reasonable. Following the “bespoke” idea, one type of content in this layer is that for which value exists only for one consumer, regardless of price. In this case, let’s call it Monopsony value content, the content is usually produced at the direct behest of the consumer (i.e. “bespoke”), and only if the value to that consumer is greater than the cost of original production. Another kind of “bespoke” content can be one where there is a significant added-value to a unique combination of content and context, for instance, having your favorite pop star sing “Happy Birthday” to you at your fortieth birthday party. Let’s call such content Context value content.
Perhaps the largest segment in the Unique content layer, though, is there as an extrapolation of the scarcity-value argument. If there is value in scarcity, it makes sense that the scarcer the product, the higher the value. On the positive side, this might happen when ownership/consumption of content by a single individual generates more value than any other combination of limited supply and price. Let’s call this Uniqueness value content, and note that it’s different from Monopsony value content in that the value is due more to being the sole owner/consumer than the inherent value of the content. On the negative side is what could be called Secrecy value content – content where the value lies not in being the sole possessor, but in the fact that by doing so, you are preventing others from using, consuming or getting value from the content (i.e., the secret formula for Coca-Cola).
This “Unique content” layer differs from the “Bespoke” in the earlier pyramid because it’s based on defining the layer on the idea that there is value in being unique, whereas Godin frames his “Bespoke” layer primarily based on the cost of the content limiting effective demand to a single consumer. While Unique content is likely to be more costly than other layers because costs can’t be averaged over a larger number of consumers, content doesn’t have to be costly to have value in uniqueness. Consider that handmade birthday card from a young child to Mom, the one that’s had pride of place on Mom’s refrigerator for the last twenty years. As with the Limited content layer, the growth of digital media and content is not likely to have much impact on the expansion of the Unique content layer. Yes, lower content production costs will likely increase availability of Monopsony value content, as lower costs (and prices) allow more people to seek and find unique and personalized content that falls within their demand curves. As for the rest of the layer, it’s the quality of uniqueness that creates value, for one reason or another – and expanding markets and declining costs aren’t going to affect those much.
So in terms of a pyramid, let’s think of step pyramids rather than equilateral triangles, with the size of the steps representing either proportion of content in the layer, or in the value of that content.
Figure 1 – Pre-digital Media Content Value Pyramid
Figure 1 represents my view of the media content value period in the Pre-digital era. As with the old pyramid, the order is the same. However, let me point to a couple of distinctions. First, I have overlapped some of the Mass content with the Free content, to represent that portion of Subsidized mass content that is priced at zero. Second, the Limited content and Unique content portions are much narrower, to reflect the role that restricted supply plays in the determination of those layers. Finally, I’ve also made the Unique content taller, because due to its nature, we’re not as generally aware of the amount of content that falls within that classification.
In Figure 2, you can see a reflection of the rise of digital in the significant growth in the Free and Mass content steps (realistically, these should be much wider as well, but there are limits to the page). In particular, the larger layers, and the larger interaction of the two, reflect the role of declining costs making all types of Free and Mass content economically viable, and the impact of declining prices (strategy permitted) in terms of expanding use and consumption. There is not much change in the Limited and Unique layers, as the economic advantages of digital only come into play for segments of those layers. Now, visually this might not be so different from the old standard, but I think that pulling out the various categories within layers, and the broader focus on considering both the supply and demand sides may help in understanding the differing types of media content and media marketing and pricing strategies at play in media markets.
Benjamin J. Bates,
Professor, School of Journalism & Electronic Media
University of Tennessee, Knoxville
Monday, December 5, 2011
Paid Media Pyramid - Old and New
Seth Godin's got an interesting blog post on "The erosion in the paid media pyramid." He starts with the suggestion that since the development of media, there's been a model of value and pricing options for paid media.
Basically, he differentiates paid media into 4 groups, with value and pricing related to supply, or the breadth of demand. At the bottom of the pyramid is Free content. He describes this kind of content as including content that is delivered to anyone who is interested in consuming it - primarily as a draw for sales of something else. Chris Anderson's Free covers the same ideas.
Mass content includes media products where the cost of replication and delivery are relatively low, allowing lower prices with the development of mass markets. With mass markets, value can be aggregated over larger numbers.
Limited content, Godin suggests, is rare and thus expensive. This can be the result of higher costs of replication and delivery, requireing higher pricing and limited markets, or can be a decision that inherent value is high enough that income can be mazimized by restricting the size of the market.
At the tip of the pyramid is Bespoke content - which for any media product is the most expensive, as it needs to recoup the whole cost (and value) with a single exchange rather than averaging costs over a larger market.
Godin suggests that with the rise of competition, convergence, and the digital network economy, three things have occured that have eroded, or upset, the pyramid.
I'm working on my own pyramid for this new environment, which I'll post as the first in what I hope will be a series of targeted reports/analyses. Look for a new header in the sidebar in a day or two.
Source - The erosion in the paid media pyramid, Seth Godin's Blog
Basically, he differentiates paid media into 4 groups, with value and pricing related to supply, or the breadth of demand. At the bottom of the pyramid is Free content. He describes this kind of content as including content that is delivered to anyone who is interested in consuming it - primarily as a draw for sales of something else. Chris Anderson's Free covers the same ideas.
Mass content includes media products where the cost of replication and delivery are relatively low, allowing lower prices with the development of mass markets. With mass markets, value can be aggregated over larger numbers.
Limited content, Godin suggests, is rare and thus expensive. This can be the result of higher costs of replication and delivery, requireing higher pricing and limited markets, or can be a decision that inherent value is high enough that income can be mazimized by restricting the size of the market.
At the tip of the pyramid is Bespoke content - which for any media product is the most expensive, as it needs to recoup the whole cost (and value) with a single exchange rather than averaging costs over a larger market.
Godin suggests that with the rise of competition, convergence, and the digital network economy, three things have occured that have eroded, or upset, the pyramid.
- Digital media have significantly reduced replication and distribution costs, and have also expanded the availability of content. He suggests that this has led to an explosion of choice, or from the point of traditional media content producers, an explosion of competition and clutter.
- As a result, attention is worth more than ever before. In the old model, attention was the important value in Free, or even some Mass content, but was low compared to most other costs, and therefore didn't have a big impact.
- Again, as a result of #1, the marginal cost of one more copy in the digital world is zero (or close enough that nobody cares). This is important because general economic theory recommends setting price at marginal cost.
I'm working on my own pyramid for this new environment, which I'll post as the first in what I hope will be a series of targeted reports/analyses. Look for a new header in the sidebar in a day or two.
Source - The erosion in the paid media pyramid, Seth Godin's Blog
Microsoft Launches Xbox TV
Microsoft has announced that it will be integrating a new user interface for its Xbox gaming system that will let users to access music, movies, TV shows, and games - and to navigate among options - with a wave of your hand or the sound of your voice.
Xbox owners with the Kinect motion controller can use it to swipe through screens of options, simply by waving a hand in the air. It also responds to direct voice commands and incorporates Microsoft's Bing search engines.
If successful, I can foresee a whole new level of fighting for control over what to watch. No longer will possession of the remote dictate control. If all it takes is a loud voice or a waved hand, how long before all that shouting and waving degenerates into a rumble?
Source - Microsoft rolls out Xbox TV platform, Broadcast Newsroom
Xbox owners with the Kinect motion controller can use it to swipe through screens of options, simply by waving a hand in the air. It also responds to direct voice commands and incorporates Microsoft's Bing search engines.
In a demonstration for The Associated Press, a Microsoft employee demonstrated how saying, clearly, "Xbox. Bing. 'Iron Man,' " brought up a selection of movies, TV shows, games and soundtracks related to the title. Saying "Xbox. Show. Movies," brought up places to rent or buy the movie, including Microsoft's Zune store, Wal-Mart's Vudu, Netflix or pay TV channel Epix.Microsoft anticipates having about 40 content partners, who will be added to the system over time, but for now, there are no broadcast network partners, so that content will not be available on the system.
Separate subscriptions are required for services like Netflix, and much of the content also requires being a gold member of Xbox Live, a connected Internet service that costs $60 a year.
If successful, I can foresee a whole new level of fighting for control over what to watch. No longer will possession of the remote dictate control. If all it takes is a loud voice or a waved hand, how long before all that shouting and waving degenerates into a rumble?
Source - Microsoft rolls out Xbox TV platform, Broadcast Newsroom
Spotify - New Player in Music Streaming
Post contributed by Brittany Hood -
What happens when you mix the idea of people who have stopped wanting to buy an album of a particular musician because of the one song they hear on the radio, add in the ease of downloading the song via the internet, then throw in the idea of not having to pay for said song? Ladies and gentlemen, you get a rise in online music streaming. Sites like Pandora were the first to successfully utilize online music streaming, but now the idea of steaming music for little to no cost has taken a new form with Spotify.
Spotify was launched in Sweden in 2008 by Daniel Ek and Martin Lorentzon because they wanted to develop a better, more convenient and legal alternative to music piracy, while also making sure that the artists get a fair deal. The International Federation of Phonographic Industries (IFPI) reported in April 2011 that Spotify is now the second single largest source of digital music revenue for labels in Europe. According to Spotify’s website, they have more than 10 million registered users and more than 1.6 million paying subscribers across seven countries in Europe and the United States, which became their eighth territory on July 14, 2011. Spotify offers users three different subscription options. There is Spotify for free; Unlimited Spotify ($4.99 a month), and Premium Spotify ($9.99 a month). As the price of the subscription increases, so do the perks. For example, with the free Spotify, one must put up with the constant advertisement intrusion as well a limited amount of access time, which may only be accessed through the user’s computer via the internet; however, with the premium subscription, users get everything, which included access via a mobile device, unlimited streaming access, offline mode for playlists, and no advertisements.
Being a source of social interacting is one of the key ideas and even a perk that Spotify offers. With its launch in the United States, Facebook and Spotify decided to create a way that the two could be integrated. Once an individual downloads the Spotify software on their computer, he or she will have the option to either create an account or log into the program via Facebook. If the latter occurs, then the new user will see a list of his/her Facebook friends and can find other users that are also part of the growing Spotify community, which allows for the sharing of [public] playlists or favorited artists or songs. Even if an individual has not downloaded the Spotify software, they are able to see Facebook friends that do have it and the music they are listening to on the program; this allows for non-Spotify users to sample and discover new music and more than likely, it will lead them to downloading it and experiencing it for themselves.
Another incentive for users to download Spotify is the massive musical library that the program offers. They have been able to achieve what other media, like Apple’s Ping and Pandora, have not been able to succeed in. Also, unlike many related sites and programs, Spotify allows users to listen and sample songs in its entirety, as opposed to a thirty-second clip which can be cut from anywhere in a song. Spotify can do this because they have signed deals with four of the major, international music labels, which are EMI, Warner Music Group, Universal Music Group, and Sony Music Entertainment. And unlike Pandora, you don’t get cut off after you decide to skip a certain amount of songs that it plays for you.
Another thing that Spotify has the potential to do is combat musical piracy. According to Jason Gilbert of the Huffington Post, “Spotify lets you feel good about listening to absurd amounts of new music every week while simultaneously making you feel as though you are supporting the artists somehow.” As a music lover and as a person looking to enter a career in the music industry, I find this particularly important.
Sources - “7 Reasons I Left iTunes ForSpotify” The Huffington Post:
Spotify’s Official Website: http://www.spotify.com/us/
Post contributed by Nick Spooner -
It is no secret that advertisers have often sought out children to be their market demographic. Children are so valuable because they are easily influenced and provide a loyal following for their whole life.
A recent Wall Street Journal article mentioned the fact that Nickelodeon has been struggling recently with viewership. But this has started to change. Viewership has increased 1.7% since last year. So Nickelodeon would think that advertising for their shows would increase with their ratings.
This has not been the case. Reported Nielsen ratings have been falling, and its unclear whether audiences are remaining with long-time running shows like SpongeBob SquarePants or moving to newer shows like Kung Fu Panda. Also, Nielsen's ratings have seen a change in children's viewership. Kids are less likely to watch TV during the day now and are also watching more nonkids networks. {On the other hand, there have been reports of serious problems with the last few sets of Nielsen ratings - BJB).
Nickelodeon has begun to change because their viewership has dropped 19% from a year earlier. They plan on releasing over 500 new episodes next year in hopes that kids between the age of 2 to 11 will come back. More "reality-based" channels like upstart network, The Hub, which is owned by Hasbro and Discovery have seen a 50% increase in viewership. This people wonder whether kids have started to change from the Saturday morning cartoons to the Saturday morning History Channel program. This might lead kids to become smarter but evidence of that has not been proven yet.
Where the ratings are high, the money follows. This provides a challenge for these kid friendly networks on how they plan on keeping their loyal fan base.
Source - TV Draws More Pre-Teens, WSJ.com
Comment - Don't worry too much about Nickelodeon, A recent Kagan report found that Nickelodeon had the highest cash flow margin of any leading cable network (near 65%) - BJB
It is no secret that advertisers have often sought out children to be their market demographic. Children are so valuable because they are easily influenced and provide a loyal following for their whole life.
A recent Wall Street Journal article mentioned the fact that Nickelodeon has been struggling recently with viewership. But this has started to change. Viewership has increased 1.7% since last year. So Nickelodeon would think that advertising for their shows would increase with their ratings.
This has not been the case. Reported Nielsen ratings have been falling, and its unclear whether audiences are remaining with long-time running shows like SpongeBob SquarePants or moving to newer shows like Kung Fu Panda. Also, Nielsen's ratings have seen a change in children's viewership. Kids are less likely to watch TV during the day now and are also watching more nonkids networks. {On the other hand, there have been reports of serious problems with the last few sets of Nielsen ratings - BJB).
Nickelodeon has begun to change because their viewership has dropped 19% from a year earlier. They plan on releasing over 500 new episodes next year in hopes that kids between the age of 2 to 11 will come back. More "reality-based" channels like upstart network, The Hub, which is owned by Hasbro and Discovery have seen a 50% increase in viewership. This people wonder whether kids have started to change from the Saturday morning cartoons to the Saturday morning History Channel program. This might lead kids to become smarter but evidence of that has not been proven yet.
Where the ratings are high, the money follows. This provides a challenge for these kid friendly networks on how they plan on keeping their loyal fan base.
Source - TV Draws More Pre-Teens, WSJ.com
Comment - Don't worry too much about Nickelodeon, A recent Kagan report found that Nickelodeon had the highest cash flow margin of any leading cable network (near 65%) - BJB
Google and Apple offer Mobile Wallets
Post contributed by Lauren Loy -
When credit cards were introduced to the global economy, people everywhere were enthralled. How could small pieces of plastic operate on such a scale that one could pay for goods with them? Well, it seems a new payment method is in the works that may be much easier than even credit cards.
Mobile wallets are new payment systems that consumers can use to pay for goods with their smartphones. These systems are still in their early stages, but Apple has announced that it will be a player in this monetary evolution, most probably claiming market shares from other carriers like Verizon Wireless who offer similar services. These mobile payment programs will not launch until 2012, but ABI says that users will grow to 594 million by 2016. Not only will carriers like Google, Apple, and Microsoft overwhelm the market with mobile wallet-capable smartphones, but merchants will offer deals that will cater to consumers with this mobile wallet service. Google and Apple will cause a drop in carriers' market shares from 75 percent to 63 percent by 2016, due to the strong branding both Google and Apple have created with their customers.
Google Wallet lets consumers in San Francisco and New York City buy goods from places like Macy's and Toys R Us by tapping the phones against check-out terminals. Google is also offering its Google Offers daily deals service, which provides more incentive for carriers who do not want to contribute money to develop mobile wallet infrastructure. Apple has not launched a mobile wallet system yet, but rumors in the industry say that they will add this feature to their smartphones in 2012.
Source - Google, Apple to Challenge Carriers With Mobile Wallets: ABI, eWeek.com
Dark Side of Clouds?
Post contributed by Ali Griffin -
Cloud computing and newer technologies are becoming something that is integrated into our everyday lives. We used to find it inconvenient to have to switch cds in a walkman, or actually write things in two different calendars. Smaller companies that provided service such as these in a more convenient way are now facing threats of being bought up by larger companies such as Apple and Microsoft.
Technology is no longer serving us with a specific service. Instead, it has become a part of personal and professional every day life. With technologies such as the iPad and iPHones people are using technology in every part of their lives. For instance people don't use phonebooks, people don't wait to hear reviews of restaurants from friends, they are now getting this information through technologies.
Schedules can now be made and coordinated without having to take the time do it ourselves. For this reason, smaller companies such as NetSuite and Workday are slowly being faded out and bought up by larger companies.
Cloud computing comes at a very high price so these smaller companies simply cannot afford to buy into new technologies such as cloud computing. Paper and simple software are no longer the way to conduct business. According to the New York Times big companies such as Amazon are attempting to sell software simply over the internet. Devices such as the Kindle Fire will also eventually be developed so that companies will be able to use them as a primary way to conduct mobile business.
One problem that many critics may have is that since these larger companies are buying up these smaller technology companies, there won't be a place for new businesses in the industry. With the large amount of money it costs these days to stay up to date and have the latest technology it is hard for emerging companies to enter the market.
Source - Cloud Computing Endangers Older Tech Companies, NYTimes.com
Cloud computing and newer technologies are becoming something that is integrated into our everyday lives. We used to find it inconvenient to have to switch cds in a walkman, or actually write things in two different calendars. Smaller companies that provided service such as these in a more convenient way are now facing threats of being bought up by larger companies such as Apple and Microsoft.
Technology is no longer serving us with a specific service. Instead, it has become a part of personal and professional every day life. With technologies such as the iPad and iPHones people are using technology in every part of their lives. For instance people don't use phonebooks, people don't wait to hear reviews of restaurants from friends, they are now getting this information through technologies.
Schedules can now be made and coordinated without having to take the time do it ourselves. For this reason, smaller companies such as NetSuite and Workday are slowly being faded out and bought up by larger companies.
Cloud computing comes at a very high price so these smaller companies simply cannot afford to buy into new technologies such as cloud computing. Paper and simple software are no longer the way to conduct business. According to the New York Times big companies such as Amazon are attempting to sell software simply over the internet. Devices such as the Kindle Fire will also eventually be developed so that companies will be able to use them as a primary way to conduct mobile business.
One problem that many critics may have is that since these larger companies are buying up these smaller technology companies, there won't be a place for new businesses in the industry. With the large amount of money it costs these days to stay up to date and have the latest technology it is hard for emerging companies to enter the market.
Source - Cloud Computing Endangers Older Tech Companies, NYTimes.com
Glamour tests interactive mobile
Post contributed by Krystyna Barnard -
In a recent Folio post, TJ Raphael wrote about how “interactive mobile tactics drove social engagement for content and advertisers.” The magazine did this by implementing Social SnapTag technology into both print and digital editions of their magazine, which enabled readers to access packaging or promotional deals they see in the magazine. It also enabled the magazine to target various consumers and increase consumer communication via social networking sites through a sense of mass marketing. Raphael writes that the Social SnapTag is similar to the QR code, however, users don’t need a QR scanner or smartphone to interact with the program. As a result of Social SnapTag, approximately 67 percent of consumers who used the program also “liked” the magazine, Raphael also wrote. It just goes to show how prevalent social media has become in today’s technologically advanced society, not only for consumers, but for producers as well.
Source - Glamour Gets 50,000 ‘Likes’ From Social Media Campaign, Folio.com
In a recent Folio post, TJ Raphael wrote about how “interactive mobile tactics drove social engagement for content and advertisers.” The magazine did this by implementing Social SnapTag technology into both print and digital editions of their magazine, which enabled readers to access packaging or promotional deals they see in the magazine. It also enabled the magazine to target various consumers and increase consumer communication via social networking sites through a sense of mass marketing. Raphael writes that the Social SnapTag is similar to the QR code, however, users don’t need a QR scanner or smartphone to interact with the program. As a result of Social SnapTag, approximately 67 percent of consumers who used the program also “liked” the magazine, Raphael also wrote. It just goes to show how prevalent social media has become in today’s technologically advanced society, not only for consumers, but for producers as well.
Source - Glamour Gets 50,000 ‘Likes’ From Social Media Campaign, Folio.com
Smartphone Apps Aid Black Friday Madness
Post contributed by Asia Farmer -
Every year Black Friday takes the Thanksgiving holidays by storm, tornado, and even typhoon. What better way to increase that experience than having your handy dandy smartphone. Smartphones. Many Black Friday applications such as Black Friday by Fat Wallet, Inc., TGI Black Friday, Black Friday by BradsDeals and many others have provided shoppers with many ways to fulfill shopping. Shoppers are able to get and stay in the loop on great deals and coupons that will save them money. These applications break down deals by store and company, show comparisons in prices, filters items by brand, rebate, doorbuster, online availability and free shipping. Websites like www.freepricealert.com are constantly updated 24 hours to guide shoppers in the right direction on deals.
These websites and applications via smartphones have made Black Friday an easier challenge for consumers. In the past consumers could only rely on television commercials and advertisements in the stores and newspapers to know what deals were available. Now consumers are able to know in advance what is out there and what to expect before leaving there homes. This even provides consumers with some sort of a game plan prior to Black Friday to prepare for a day of shopping in madness. Technology yet again serves a great purpose in making things much easier.
Source - New Technology Helps Black Friday Shopping Yahoo News
Every year Black Friday takes the Thanksgiving holidays by storm, tornado, and even typhoon. What better way to increase that experience than having your handy dandy smartphone. Smartphones. Many Black Friday applications such as Black Friday by Fat Wallet, Inc., TGI Black Friday, Black Friday by BradsDeals and many others have provided shoppers with many ways to fulfill shopping. Shoppers are able to get and stay in the loop on great deals and coupons that will save them money. These applications break down deals by store and company, show comparisons in prices, filters items by brand, rebate, doorbuster, online availability and free shipping. Websites like www.freepricealert.com are constantly updated 24 hours to guide shoppers in the right direction on deals.
These websites and applications via smartphones have made Black Friday an easier challenge for consumers. In the past consumers could only rely on television commercials and advertisements in the stores and newspapers to know what deals were available. Now consumers are able to know in advance what is out there and what to expect before leaving there homes. This even provides consumers with some sort of a game plan prior to Black Friday to prepare for a day of shopping in madness. Technology yet again serves a great purpose in making things much easier.
Source - New Technology Helps Black Friday Shopping Yahoo News
Online Video Continues to Boom - Ads, Too
The latest comScore Video Metrix report found that American TV viewers are consuming an average of 21.1 hours of online video a month. More than 86% of Web users watch online video at least once a month, consuming some 42 billion videos. All are new highs.
But that's not the big news in the report. In addition to those 42 billion videos, Americans viewed another 7.5 billion video ads in October, providing a strong foundation for the booming online video advertising market. Video ads reached more than half (53%) of the total U.S. population an average of 47 times a month.
In terms of which sites people use to view online videos, the various Google sites (YouTube, GoogleTV, etc.) continue to dominate, reaching 161 viewers (87.5% of all those who watch online video) and accounting for almost half of all videos watched. Facebook came in second (59.8 million unique viewers), followed by music video site Vevo (57 million)..
Sources - Ad-Supported Streaming Soars, Generates Huge Viewership, Online Media Daily
comScore Releases October 2011 U.S. Online Video Rankings, FierceTelecom
But that's not the big news in the report. In addition to those 42 billion videos, Americans viewed another 7.5 billion video ads in October, providing a strong foundation for the booming online video advertising market. Video ads reached more than half (53%) of the total U.S. population an average of 47 times a month.
In terms of which sites people use to view online videos, the various Google sites (YouTube, GoogleTV, etc.) continue to dominate, reaching 161 viewers (87.5% of all those who watch online video) and accounting for almost half of all videos watched. Facebook came in second (59.8 million unique viewers), followed by music video site Vevo (57 million)..
Sources - Ad-Supported Streaming Soars, Generates Huge Viewership, Online Media Daily
comScore Releases October 2011 U.S. Online Video Rankings, FierceTelecom
Subscribe to:
Posts (Atom)