We Have No Privacy

Trying to keep a secret?  All it takes is to tell someone else and you risk that secret becoming public.  Worse still, social media means that everything put out on the world wide web, this blog included, is accessible forever.  And worse, information that we use on the web to assure privacy of our content, is forever being hacked. 

The latest hack comes from Yahoo who shared that "user account information was stolen from the company's network in late 2014" according to Business Insider and "The stolen data include names, email addresses, telephone numbers, birthdays, hashed passwords, and some 'encrypted or unencrypted security questions and answers.'".  We are told that over 500 million accounts were affected.  And if you use the same password for Yahoo that you use for other accounts, your information is at risk. 

It has come to a point that every site we go on needs a unique id and password.  Hard to do and harder to remember the more sites we use.  Start to add up the number of different accounts you use and we have a major problem on our hands trying to keep track of every site we log into.  We can't trust that our passwords are secure, that our personal data is safe, and our privacy is ensured.  The Yahoo story isn't news because they aren't the first or the last to go through this.  But as long as we are on the grid, our privacy is constantly being invaded. 

What Will Viacom Do With Paramount

If you haven't guessed after reading my blogs, I am a huge fan of content.  But content does not live in a vacuum and the yin and yang between content and distribution, adding a dash of marketing to the mix, makes the difference between success and failure.  Good content can help distribution and good distribution can help bad content; ideally, great content, easily discoverable and accessed matters.

So today we have Viacom, a media company with an ailing CEO, infighting of the relatives, a changing board, and other leadership issues struggling to fix all the wholes, from falling ratings at their cable networks to poor movie making choices at Paramount.  Its latest box office dud being Ben Hur with very little box office hits to mention.  What should Viacom do with Paramount, where once The Godfather, Indiana Jones, and Titanic all were released?

There has been some speculation that Viacom should sell some if not all its ownership in Paramount.  But I love content and believe it is the driver to growth for Viacom.  I believe selling makes little sense unless the plan is to give up and sell all of Viacom.  Paramount, with the right talent on board, can make great content again.  And great movies are currency to be sold over and over again across different distribution windows. 

But what is in the pipeline of future Paramount releases following the awful Ben Hur film starts to question the internal leadership and the choices they are making.  October is the release of the next Jack Reacher with Tom Cruise, a possible hit, but they are also banking on a number of other sequels including Transformer, Friday the 13th, and Terminator.  What happened to originality?  Even their latest release of Star Trek Beyond felt like an overly long TV plot rehash.  If there is change to make at Paramount's film unit, it starts at the top.

As to their TV department, Paramount also produced Grease: Live,  Criminal Mind, NCIS, and others.  And hopefully they will have more upcoming hits to mention.  With so much demand for TV content in the streaming world from Netflix, Hulu, and Amazon, Paramount should have no problem finding homes for their product, as long as the quality is there.  Like my concern with movies, rehashing old series and classic movies at the expense of originality does not seem like the best route to take. 

So what should Viacom do with Paramount?  I say keep it.  If your plan is to sell Viacom, it is more valuable as part of a bigger deal.  if the plan is to reinvigorate Viacom, Paramount is a perfect complement to their media empire. 

The Profit In Data - Storing And Streaming

I'm struck by an epiphany as I watch how much data I continue to acquire.  I don't mean bookshelves or albums or DVDs; they get less filled as my books, my music, my photos, my videos, my life are all now bits and bytes of data.  And I see too that the cost to store and stream continues to grow as I accumulate more stuff. 

Already, I have on my computer over 15,000 photos, the more recent ones requiring more memory than the ones taken in 2000.  My iTunes account includes more and more downloaded books, music, and videos and my computer's memory is nearly at capacity.  My Carbonite account helps safeguard these digital assets, at a cost, as I sense that I will need a new computer with more memory in the not too distant future.  And Apple is gracious enough (lol) to sell me more cloud backup space for my iPhone and iPad.  The costs to store will only continue to rise.

And then there are the costs to stream data.  Subscription fees from folks like Netflix, Hulu, and Amazon, help drive up the monthly costs.  One's love of music means monthly subscription plans from Pandora, Spotify, and Apple Music.  We no longer need to own when we can rent and stream as much as we want.  But the costs to access also extend to the companies that sell us data plans to receive these streaming signals.  The more we stream, the more we consume, the more data services we buy.  Of course, the speed to receive these streams can also come with a higher cost; the faster the stream, the more we pay. 

As we move further and further from physical media to digital media, the cost to access data, stream it, and receive it will only increase.  And the profits will only grow.  Data is our new gold and we are mining it at an ever increasing pace.  It is the business to be in. 

Huffington Leaving Post

On the surface, the news that Arianna Huffington is leaving the company that she founded and runs to start up a new venture doesn't sound that concerning.  Entrepreneurs enjoy the thrill of the start up.  And with an acquisition of The Huffington Post, first by AOL and then again as Verizon bought AOL, the notion of being the big fish in a small pond gets lost as the pond becomes an ocean and you become a smaller fish relative to the size. 

That Huffington is leaving to start a new venture called Thrive, a health and wellness digital site, does raise a couple questions.  One, that Verizon has also just bought Yahoo and Huffington could take the health assets from this acquisition to mold her site as a venture inside of Verizon.  Two, that digital health and wellness sites are already plentiful and no site has yet truly broken through.  I myself have worked for a couple cable health and wellness sites, including Veria and HealthiNation, and attracting a sizable audience, either on TV or on the web, has been extremely difficult.  Given all the niches, health and wellness seems to best occupy the longer tail part of viewing patterns.  And third, that Huffington's new venture might have had a better distribution shot staying inside Verizon than operating independently.

So the smell taste fails me when it comes to her motivation to leave.  The only argument is that she simply wants to be more independent and occupy the leadership chair in a much smaller business entity.  Financial motivation may simply not be an issue for her at this time.  While I wish her luck with her health and wellness venture, her best outcome for it will be its future acquisition with another site. 

Will Content Glut Reach A Tipping Point?

The rise of digital distribution has created an insatiable thirst for more content to fill the bucket.  Video content is being produced not just for broadcast or cable, but for streaming services as well.  We are seeing the numbers rise for both short form content, user generated content, and scripted series as well.  And as Investopedia tells us, "John Landgraf said the number of scripted television shows next year could reach 500, from an estimated number between 430 and 450 this year, driven mainly by a rise in shows commissioned by streaming services." Landgraf, CEO of FX Network, places responsibility on the streaming media services like Netflix and Amazon.  But Hulu, of which Fox Networks are an owner, could also be named as well.

The challenges of producing so much content include finding quality programs amid the morass of choice, viewers finding the needle in a haystack of endless content possibilities, and measuring success in today's overly saturated content world.  With so much content choice possible to see and hear, focus becomes close to impossible and harder even to search for and find.  With such a glut of content, it becomes even more important for us to use recommendation, marketing, and advanced search to help users find a match to content they would enjoy viewing.

The drive to create content is only advancing.  In coming years, the numbers will only increase.  Today, in fact, Turner announced an investment in Refinery29, a female skewed destination for fashion and entertainment, and one in which Scripps is also an investor, to support more content that could possibly make its way onto their channels.  Content is the fuel that runs digital media distribution.  Consumer thirst for more helps to drive subscription and cable revenue streams.  And with advertising alongside it in some way, deliver more profit to media companies.  Have we reached a tipping point?  Probably not, although the challenge for creative minds is to make the content produced quality worth watching. 

The VCR is Dead; Goodbye Old Friend

Technology is full of life changing moments.  With every change, our life is meant to get easier and easier.  But it has also spelled the death for the old technology before it.  There are too many examples to recount, but one that hits home for me is the announcement that the VCR, the videocassette recorder is dead.  Production of new models will cease and their use will become a memory as the digital revolution completely takes over.  Goodbye old friend.

I remember when we first got one in our home.  It was life changing allowing us to record and watch any show we wanted.  It also let us watch theatrical movies when ever we wanted.  And we could pause or stop them for the necessary potty break.  When I moved into my first apartment, the VCR was a gift from the folks.  I was ecstatic.  Now I could go out on a Saturday Night and know that SNL was being recorded for my Sunday viewing pleasure.  For those that knew how to program the VCR clock, TV was finally on your time.  Of course, tapes were limited to 6 hours at the most, but that was never an issue. 

Many people used their VCR to make endless recordings of their favorite series, keeping them in their video library.  I too would record my favorite movies to watch again and again.  Friends would borrow and some would even forget to return.  A number of years later, I was at a friend's apartment.  She had moved to LA and looking at her tape collection, I saw one of my copies.  I had always wondered where that tape had gone.

The VCR outlived its competition, from laser discs to betamax, but it couldn't outlive technological change.  The VCR was still analog and digital technology was emerging.  For many, the VCR made TV viewing easier; for others, they could never figure out how to set the clock.  The launch of the DVR, the digital video recorder, took away that problem and more.  We were no longer limited to the tape length of 6 hours although viewing was limited to the box that we saved our show on.  That iss ue has now been solved through digital streaming. 

The VCR was a breakthrough technology.  Not only could we watch time shifted programming, we had more controls, too.  We could fast forward through commercials and rewind to watch over and over our favorite parts.  It put TV into the hands of the individual.  It was the first device to deliver what you want, when you want it. 

I no longer own a VCR and yet I still have old tapes lying around the house.  For some, I feel the need to transfer off analog tapes and onto another for later viewing.  I would say to transfer onto a CD but that technology is likely the next to see production stop.  No longer do Apple computers include CD players in their laptops or desktops.  Cars no longer need them either.  Our digital memories are to be stored in cloud libraries, not physical ones in our study or family room. 

Millennials will pay little attention to the news announcing the end of VCR production.  They know only DVRs, on-demand, and streaming.  But the VCR was an important part of my youth and the way that TV viewing changed for me.  Goodbye old friend. 

Video Snacking To Drive Revenue Growth

We are about to get overwhelmed with tons of short form video content as the long tail of video consumption is about to get longer.  In today's NY Times, Tronc, once known as Tribune Publishing, has revealed their plans to increase video content 1000% daily.  And other online publishers are following this trend.  With video content attached to every online article, the hope is that more viewers will stay on the page longer, click the video, watch the ads, and continue to snack on other articles and other video content.  A very sound strategy.

Whether the content is created specifically for the page or linked via syndication or other means, the direction is clear.  More video snacking with content that connects with the viewer should create a better user experience.  And hopefully drive online revenue higher.


Two online companies, Wochit and Wibbitz, seem to have the means to quickly and efficiently link content to articles.  "The two services’ automation features work in similar ways. They analyze, and may summarize, text, be it a script or a traditional news article, and then automatically find photographs and video clips to go with it." Whether users find the additional content useful to them or simply clutter may determine the long term viability of these services.  But done right, the use of video on the page should be good news for these content companies. 

Cameras Are Everywhere

In the wake of recent news events, the accessibility and use of cameras has provided a video record of what has often been a he said, she said exchange.  That 1 picture is worth a 1000 words may be true, but it may not be the whole truth either.  Still, that video cameras are everywhere is becoming a more important part of our daily lives.

It seems that every sidewalk has a video camera focused on it, every store has a video camera recording each corner, and in everybody's pocket there is a video camera, our smartphone, ready to record events as they happen.  And we are being record in our good times and in our bad.  Cameras are everywhere.

That it catches criminals and criminal intent is a very good thing, that it provides a potentially independent view of a situation is also good, and that it hopes to enhance security and provide protection is important.  But the reverse is a loss of privacy, individual freedom, and a likely permanent record of our actions, good ones as well as our indiscretions.  Personal privacy is lost for the greater good. 

I've always enjoyed catching video moments of my family's lives.  They are a permanent reminder of the events of our lives.  I'm happy too when citizens with their phones capture everything from silly moments to criminal activity.  The hope is that truth of the moment shines through.

But when it comes to media and the availability of these "videos", I worry that sensationalism outweighs truth, ratings over discretion.  Is it necessary to show everything, no matter how insensitive or gory it might be?  Does it make our society more compassionate or does it start to desensitize us?  There was once a time where media withheld material that wasn't relevant to the situation; today, the need to beat out other news organizations means that faces are no longer blurred, blood is no longer ignored, and pain and violence are showed in all its glory.  In the drive to show everything, we may be becoming more hardened to it.  Our scale of restraint has vanished.  And I worry that we, as a society, are heading down a very dark path. 

Globalization Verse Isolationism

We live in interesting times.  While domestically, our political system grapples with issues ranging from immigration to unemployment, from freedom to security, from guns to the right to choose.  And as a democracy, we have a full range of thoughts and actions on how to accomplish our goals.  There are those that believe that we should be armed, that we must build walls to restrict entry, and we must tell others what they can do with their own bodies.  Others seek more regulation and restriction, interdependency, and choice.  But the one truth is that each of us have our own point on the line on where we stand, similar with some and different with others.

But what we face in the US seems no different than what is faced abroad and Brexit certainly demonstrates that a majority were fed up with status quo.  But unlike a revolution, a vote to exit the EU may answer one issue while creating so much more uncertainty.  In this case, no one seemed to plan out what the next steps should be should the vote pass.  Change and uncertainty consistently go together.

The riding question is if such a move to withdraw and separate is truly the right strategy.  Technology, media, communication, environmental issues, and so much more have made this planet Earth a much more smaller place to inhabit.  We all live on this one planet and for now we have no other planet to move to.  Rather than isolating ourselves, restricting movement, pushing others away, we need to learn how to listen, how to get along and ultimately to start growing up and behave like adults, not children.  Violent physical conflict should never be the answer; communication, conflict resolution, and compromise should be the global mantra.  Ultimately, "Can't We All Just Get Along."

As for our upcoming election, perhaps some will see a lesson learned from what the UK is now experiencing;  others will not.  Let's hope that a majority finds that we can find an orderly process.  But the world around us must also grow up too.  Violence should never be the answer.  But that esson might take a lot longer to learn. 

If Content Is Not King, Then What Is

It seems that content is no longer deemed so kingly.  Viacom shares are down, as are CBS, Time Warner, Fox, and Disney.  The future TV viewer cares little for linear TV channels and we are all growing tired of intrusive and too many commercials.  Even this year's Super Bowl ads, usually the cream of the creative crop, were duds.  And given how fragmented viewership is these days, harder than ever to determine what successful content is.  It seems that content may have lost its crown. So who is King of Media?

In the tug of war between content and distribution, the distribution side has to now be carved out into different verticals.  Cable operators saw a reversal in their subscriber numbers, showing growth and a hopeful long term trend away from cord cutting.  But that will take a few quarters to decide.  The cellular companies have been pulling no punches in their ad messaging, with T-Mobile going hard against Verizon.  And digital content platforms like Netflix, Amazon and Hulu may need to find more revenue streams when subscriber growth wanes.  Of the three, Amazon may be more stable given its diversified business that goes beyond content distribution. 

So who is King?  If content has given up the crown, distribution has yet to show that it has more power.  Perhaps Comcast had it right all along; be both content and distribution, NBC Universal and Xfinity, and stay the course. 

Ads Keep Slowing Down My Web Pages

My internet is running slow, not because I am streaming data heavy video content, but because with every page load, ads are being served to the page.  The latency it causes to get to the content is atrocious.  And just try to read the page when another ad overlay pops up to stop you again.  The page is reading, transferring, and mostly waiting for the ad servers on the page to decide what ads they want to serve me.  I not only don't notice the ads, I become more frustrated with the website I am on. 

Do you share my frustration?  Let me know!

TV Ad Spending Falling As Digital Rises

The NY Times reports today that "TV will account for 38.4 percent of the $503 billion global ad market this year and will drop to 38 percent of the market in 2016, according to the forecast."  A minuscule number perhaps, but perhaps more a notice of an eventual trend.  Still, with the rise of digital devices, smartphones, tablets, laptops, and more, our attention has steadily moved away from the TV screen and toward the smaller devices.  Mobile is in!  And as we all know, nothing is truly free in this world and content is being paid for mainly by advertising. 

But the digital ads that we get may not be nearly as effective as the television commercials we see.  Sure both are intrusive and too, too many, but the little screens make engagement harder.  Which brings me to a second article in today's NY Times entitled X Marks The Spot.  These pop ups and overlays and screen cloggers make me hate the advertisers that rely on them.  To say they are just a nuisance would be to truly understate how frustrating they are.  No longer comfortable with being banners that rest around the content, these digital ads make getting to the content difficult at best.  Not just that one has to sit through them to get to the content, but that as the article correctly states, trying to click the 'x' to eliminate them becomes a game unto itself. 

But the worst for me is when the pop up ad takes so long to download, creating such a lenghty latency that prevents the actual content from also downloading, that I find myself clicking away from the site.  The more this happens, the more I remember which websites I now avoid altogether, a loss for both publisher and advertiser.  And as others follow on that same path, an eventual loss for the digital industry.  The influx of intrusive advertising will be the means to the industry's self destruction.

Adele Has A Distribution Strategy

Whether you care for her music or not, you still must admire Adele's business strategy with the release of her latest album, 25.  If the big money is in sales, then it makes sense not to rent out the music.  And that seems to be what a streaming strategy must feel like.  Like Taylor Swift, Adele has decided to limit her initial audience to a sale only strategy, from downloading tracks or the album to selling the physical CD.  For now, streaming subscription music services like Pandora, Spotify, or Apple Music are not allowed to play her latest music.  That means that fans must purchase and so far, the strategy has worked. 

In the first week, Adele has sold 2.5 million copies of her album.  With the holiday season just starting, the album is likely to continue to sell quite well.  It seems like a smart way to maximize revenues, using a windowing type strategy to create a high demand through a particular output platform.  And certainly, as sales begin to slow, the timing might become appropriate to add new platforms of distribution. 

Even Digital Content Is King

Not satisfied with owning a leading broadcast network, cable networks, and a movie studio, NBC Universal and its parent company Comcast want to own digital content creation companies too.  The latest on their radar are Buzzfeed and Vox Media.  Buzzfeed has positioned itself as a leader in creating social commentary, news, and entertainment with an eye to creating eye-catching, shareable, viral content.  Vox Media has created some well known sports blog along with its recent acquisition of re/code.  In an ironic twist, it is re/code passing on some of this news on the potential partnership plans.  

For NBCUniversal, adding a stable of digital content companies to its video rodeo seems like a good fit.  Synergies between networks, shows, advertising, and promotion could all help drive viewership and usage gains.  But synergy is also a tricky animal that in many cases culture and personal politics can end up building roadblocks to success.  Done well, digital content, like any other content, is king and as many believe is what drives consumers to certain platforms.  Should this deal succeed, it will be fun to watch how it is utilized. 

Google And Apple Competition Growing With Digital Pay

In the smartphone race, functionality and useability continue to drive innovation and value.  The main two competitors, Apple and Google are leading the charge, each trying to out duel the other.  And while Android devices outnumber iPhones, Apple remains a closed architecture while Android is open, used by multiple mobile phone manufacturers.

The latest announcement is that Google has finally created a mobile pay application to rival Apple Pay.  According to Wired, "The service—which will be available on future Android phones as well as from the Google Play app store—operates much like Apple Pay. It stores your credit card details on your phone, and both in shops and online, you can pay for goods and services by touching the phone’s built-in fingerprint reader."  And it is the next iteration of Google Wallet.

Whether the introduction of Apple Pay caused consumers to switch devices or whether Android Pay will have a similar effect remains to be seen.  Still the challenge for Google is that, unlike Apple, it has to be integrated across multiple competing devices that all run under the Android operating system.  Within the Android world, Samsung also has its own version of a digital wallet called Samsung Pay.  What confusion that brings to the marketplace remains to be seen.

Clearly, the use of a digital wallet simplifies the purchase process.  For those that use it or perhaps apps like Starbucks to pay for goods and services, it becomes an easier convenience than pulling at a wallet.  And as consumer use grows, so to will the number of retailers that will enable it at their locations. 

Apple and Google are clearly pushing each other to become the predominant smartphone brand.  With each innovation comes new model phones, new revenue opportunities, and new partnerships.  And this competition seems ready to intensify. 

Yelp Needs Help

Yelp, the local business review company, is not growing as fast as investors and analysts think it should.  As a user generated site of reviews on everything from restaurants to hotels to business services (even services like Photo Booth rentals for events), Yelp offers great search and recommendation for finding what you want near where you are.  But the challenge they face is how to better monetize such a service of loyal users and contributors. 

The Wall Street Journal is reporting that Yelp "is working with investment bankers and has been in touch with potential buyers in recent weeks, some of the people said."  And although traffic to the site is positive, growth may have plateaued.  Still, the company has aggregated a large database of businesses and reviews and has been a useful resource to many, including myself.  As a search engine, it is localized and relevant, and as a recommendation engine, it provides a wide array of reviews, from positive to downright snarky.  Content is king in this regard and they continue to nurture more reviews. 

Perhaps, Yelp needs a partner that can provide them with a larger array of complementary services.  I could see Yahoo and AOL as possible fits, although Google might like to get a hold of them as well. TripAdvisor might also see a strategic fit as well.  With a more strategic partner, Yelp could potentially expand into video content that augments the value of each of the businesses being reviewed.  Currently, Yelp uses photos that are uploaded.  But videos, could open up windows with additional advertising opportunities.  Videos might also encourage more time spent on the site.  In addition, a strategic partner would help drive more efficiencies to both lower costs as well as keep users engaged on more pages across the site. 

Whether Yelp decides to keep going independently or seek a merger to expand remains to be seen.  For now, Yelp has created a must have resource for finding places to eat, shop, and buy. I hope they only continue to grow. 

Future Of Advertising - Mobile And Social

As we engage more and more with our mobile devices, our smartphones and tablets, they become a much larger focal point for reach and frequency. More Facebook users access their accounts via through mobile rather than a computer. In fact, in Q1 of this year, Facebook's "mobile advertising revenue represented roughly 73% of advertising revenue", as mentioned in Business Insider. And given Facebook innovations, videos now automatically run as you begin to scroll down the timeline, hoping to snare you to watch and turn up the volume.  I know that I am like the majority, accessing these and other social media sites like Twitter, Pinterest, Instagram, and others on my iPad or iPhone.  And whether it is a display ad, or sponsored content, or other banner or video, this is where the future lies.  We are easily reached, personalized, and presented with relevant and hopefully engaging messages.  

And so other ad platforms may need to worry as usage patterns shift and so to the flow of ad dollars from one bucket to another.  Cord cutting on cable TV is not just an issue for subscription dollars but advertising dollars as well.  As higher percentages of our time are spent on our mobile devices and interacting with others via social platforms, so to will ad spend. 

It is why TV Everywhere is so important  for content providers.  And why many today have apps for authenticated viewing on mobile devices.  It is why the DOJ and the FCC are looking so hard at the Comcast - Time Warner Cable merger and that together they would control a majority of the broadband pipeline in the US.  Monopolistic pricing, controlled or limited access to content, and lack of a competitive threat are key concerns.  

And as I look at the growth of mobile, I am struck with an interesting idea.  For companies like Netflix, Amazon, Hulu, and others delivering content to mobile devices, the thought of complementing these services with social networks for its members to discuss content that they have consumed on their respective apps. Consider a Netflix social app that is easily accessed and used to reach other "fans" of House Of Cards, Orange Is The New Black, Unbreakable Kimmy Schmidt or other series and where they can discuss in detail.  Such a companion site would also enable these content providers to add an advertising revenue stream into their mix.  It may be a niche social platform at first but may just drive future growth.

For it is the increasing usage of mobile platforms in our daily lives and our desire to interact with others online that is driving new opportunities for advertising.  At the same time, traditional ad platforms, threatened by this new growth, must continue to play in the new space and become ubiquitous across all platforms, print, TV, radio, digital. By being accessible via the mobile platform, advertisers too will gain with better data based on individual preferences, not household ones.  And it is that one-on-one relationship that we have on our mobile devices that is the future of advertising. 

Digital Music Streaming Past Physical Sales

Last year, global digital streams and music downloads caught up to physical CD and vinyl sales.  Clutter be gone, consumers are preferring to listen to their music without having to open up a jewel case or LP cover.  Call it simplicity, convenience or simple ease of use, digital is poised to overtake physical sales this year. 

And in the digital realm, subscription services are more desirable than downloadable sales.  According to today's NY Times, "Subscription services like Spotify and Deezer accounted for $1.6 billion in trade revenue in 2014, up 39 percent from the year before, and have 41 million paying users around the world, up from 28 million in 2013. At the same time, downloads — not long ago the most important growth format in the business — were down 8 percent."  That could be spell a big opportunity for Apple's Beats subscription service and Jay Z's Tidal music service. 

Consider us moving into a rent vs buy situation where consumers like to have rental access to a full library of music choices for a monthly subscription fee rather than complete ownership of content.  Last year, notable exceptions included the Frozen album as well as Taylor Swift's 1989 album where consumers chose to buy.  Could any album this year deliver similar results or will we watch more consumers choose to subscribe to a music service or two?  Given the trends in music delivery, subscription seems the likely winner.

NBC Mishandling Brian Williams Apology

It is my humble opinion that NBC and the PR team at NBC are mishandling the fallout of the Brian Williams misremembering crisis.  That he "conflated" the episode in Iraq may have been the least of his problems, but using a vocabulary word that few know didn't help his effort at a half-asses apology.  And as Mr. Williams takes some time to withdraw from all public appearances, including a scheduled visit to The Late Show With David Letterman on rival CBS, it begs the question, could this PR nightmare been better handled.

I believe that NBC is using the wrong playbook.  To me, the better way to have handled this outcry would be to face it straight on with minimal delay.  I cite case book examples in the world of business from Tylenol, Coke and even Netflix to illustrate how a fast response can avert a greater disaster.  Tylenol did it by quickly recalling all product, apologizing and announcing efforts to use different packaging to demonstrate safety was their highest priority.  Coke tried a new coke formula but was quick to pull from market and announce the return of its classic formula.  And Netflix thought it could divide the company into two entities, DVD and streaming; they heard the backlash and were quick to stop the split and respond directly.

Yet the team working with Brian Williams has chosen to not follow these examples.  The apology was not to the point and direct; rather, muddled by shades of gray.  Had he then stayed out in the public, talking directly to anyone who wanted to hear his apology and how he was contrite and eager to demonstrate his trustworthiness, I believe this incident would have been minimized and Mr. Williams would have retained his good standing among the public.  Withdrawing from appearances, removing himself from his own nightly news program, has only added to the problem.  And it may now be too late for him to fully recover his good stature and high ratings. 

Digital Continues To Hurt DVD Sales, VOD Down Too

While digital media sales continue to grow, DVDs are not.  It seems that consumers are fully adopting digital sales and subscription media over ownership of DVDs and other physical media.  Not surprising as more televisions are internet ready, more computers have dropped the DVD slot, and consumers are enjoying easy access of content through subscription services like Netflix.  In fact, DVDs and blu-ray discs were down over 10% from last year.  That trend seems likely to continue.

It should be noted that when all the figures of digital and physical media are totaled up, "Total home-video spending was $17.8 billion, dropping 1.8 percent from 2013, according to the report in LA Biz.  This total decline may be partly due to a weak box office, according to the report, but other factors may also be a result.  Consumer spending in general and less dollars focused on entertainment verse other needs may also be to blame.  Like cord cutting and cord shaving, consumers may be using subscription services and digital to pay less but get more content. 

Another interesting note from the report, while consumers have pushed back on physical formats, they also pushed back on VOD.  Total sales fell 6.7% from last year.  Again cord cutting and cord shaving may be to blame with consumers preferring to watch on mobile devices and getting access to programming via You Tube, Netflix, Hulu, Amazon, and other OTT outlets.  Given the push of these subscription services, I would not be surprised to see VOD numbers to continue to drop in 2015.  Until cable operators create an alternative online platform that is added value to its wired approach and touts a true TV Everywhere mentality, VOD will only continue to find a backseat to digital.