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Friday, February 1, 2008

Strike shows fatigue factor


Writers aren't the only ones feeling the fatigue. With so little new or worthwhile to watch on TV, viewers are moving away from their favorite TV networks to find other sources for entertainment. With so little new to watch in scripted series, I find myself watching more news programming. Thank goodness for an election year for interesting dramatic programming!

When historians look back on the aftermath of this strike, I believe they will come up with the following conclusions:
1. The writers union lost more money from the strike than they would have ever earned.
2. More jobs and business were lost than incremental revenue earned. Thus the SAG, DGA, and WGA all lost business. And jobs went to more non-union businesses. (look at the latest programming deals coming out of Canada)
3. Renegotiations need to begin well before a contract expires and a strike should be viewed as the very last possible recourse.
4. The strike enabled the AMPTP to turn their business model upside down by reducing the number of pilots they commission, reducing the extravagance factor from upfronts, commissioning scripts to go right to production and airing across available broadcast and cable networks to maximize its revenue potential. The result, greater cost efficiencies.
5. The entertainment industry will see a measureable downturn in spending as fat contines to be cut and boondoggles are turned away. The strike will have effectively killed the golden goose.
6. VOD usage will become the real revenue growth through advertising and subscription.

Thursday, January 31, 2008

Digital Revolution Devalues Content: Analysts

Reducing content down to its digital roots and distributing perfect copies to multiple points sure poses a challenge to the monetization process. The music business was first to feel the effects and video content producers must have been asleep at the wheel to not anticipate that it would overtake them as well. And now that the DVR is out of the box, it will be hard to contain or limit it, despite tries to disable certain trick features like fast forwarding through commercials.

Distribution models will be turned upside down as streaming enables all broadband users to access product. Established networks will be limited only by their contracts with current distribution platforms to compete effectively in this new world. License fees may see themselves replaced by subscriptions and TV may become simply a monitor in the home, attached to the web.

As companies deal with this digital slippery slope, opportunities will also arise for sites that best aggregate and recommend and find appropriate content quickly and easily. And monetization opportunities will open up as others close down - through subscription, targeted promotion, interactive, branded entertainment, product placement, and other sources on this new content platform. Cable bills may decline as broadband rates rise; some networks may fall or merge into others, and other niche networks broaden. But at the end, change is inevitable and we must take the bad with the good and maximize its potential. Their is still value to the content, it just needs to be monetized in different ways.

Wednesday, January 30, 2008

Social Networking - Exposing yourself

The first thing I did after reading this article was to recheck my settings and confirm my privacy settings. I like that Facebook allows me to passively interact with friends and colleagues, but I do want to control what gets released.

Privacy is a huge issue and data sharing needs to be with the user's approval. Without it, we are approaching the Orwellian world of 1984. Younger people may be more relaxed about sharing themselves and their habits, but I come from a school that is more careful about being that open. Not that I have anything to be ashamed of, but that I should be the one to determine who knows what I do. I know some folks that don't even want to put their picture on their page, preferring to use an icon or nothing at all.

As long as the data is analyzed in the aggregate and not specific to the individual, than the understandings of behaviour can be useful to research. But to share ones specific purchases, reading, or viewing behaviour is something that should remain private. Let the individual determine what is to be shared and get specific approval, else be careful of the repercussions.

Social networking has allowed us great opportunities to interact and to communicate in meaningful and frivolous ways. But it comes with many pitfalls. Facebook, My Space and all other sites need to protect the individual content from unauthorized use. Any release should require specific approval. And it should be incumbant upon the site to be proactive before legal issues arise.

Monday, January 28, 2008

Newspapers kill the video star

It's nice to read that others agree with my assessment that print can be viable in new media. Digital distribution still requires branded content and the newspaper industry can embrace the convergence of print and video into their business model. The article asks an interesting question, "Will newspaper video one day be the Web’s version of “Must See TV”?" The answer depends on maintaining the same editorial edge with their online content as they do with their print. National newspapers are known for their award winning coverage and regional papers can excel with localism. They can aggregate and disseminate valuable information that effects their communities.

Distribution may shift, but content matters. Breaking news, insightful commentary, and local interest are the keys to its success. Stay competitive and papers will see their mature business become reinvigorated and competitive again!

Saturday, January 26, 2008

The Future of the CD and DVD

As digital distribution explodes and revenues increase from digital downloads and cd and dvd sales drop, the question remains, what happens to the physical disc - the cd and the dvd. The rise of HD players and Wii games all require a disc to hold the content. So how many years before the disc, like the audio record and laser disc before it, is no more?

The human spirit seems to be about collections, a visible reminder of the things that we acquire. We collected albums, cds, and dvds to showcase and love to go through our library and "pick out" something we want to hear or watch. So will we completely get away from these material holders of content and rely only on the virtual library on our laptop. Will we need to transfer these digital downloads to external hard drives to save our copies or will we rely on a centralized server that we access our stuff whenever or wherever we are.

We have always had something physical in our hand to play until Apple's iTunes made it not just okay, but preferable to shun the disc for the download. The slippery slope says that the dvd will go down the same path. Does something replace it? Is the flash drive the next device to use to transfer from pc to game boy? Changes in media continue to shake up the revenue model. I'm waiting for the day that every home has a centralized server with back up drives. And digital rights on each piece of content to limit its unauthorized sharing. And others trying to break the lock. with VOD and streaming, the days of dvds and cds are declining rapidly. Will the Wii and the new HD dvd players keep them alive longer? How many years from now will they be gone? It's only a matter of time.

Friday, January 25, 2008

Print Should Prosper with New Media

What the newspaper industry needs to understand and embrace is the opportunity that new media brings to their business. They are the makers of content, and news presents important currency to the online world. It is ever changing and brings viewers to repeatedly view their sites for the most updated information. They are content creators and have built brand names and credibility from their traditional print distribution.

Change is hard, but as they adapt, they have the opportunity to attract more online users and be the preferred brand choice. It's interesting to note that the Wall Street Journal has made a decision not to give away all content for free and to continue to push the subscription model; as a print subscriber, it becomes an added value and ongoing source of valuable financial and business information. While the New York Times has moved away from this model, only time will tell which side is most financially successful. Magazines, like Newsweek and Time, may look with interest at these models for their business. Consumer Reports which does not accept advertising seems to have done quite well as a subscription only service.

Yes, most content is being delivered free and digital distribution enables people to share walled garden information outside the wall; but if the brand value and quality of the content can be groomed, it will only encourage others to purchase a subscription to enter the site.

Content is King. And original, credible, well produced content from known and trusted brands are preferred. Be it video, audio, or print, users will gravitate to those sites that do the best job making and analyzing the news and delivering quickly. It is old fashioned journalism with a new distribution stream.

Wednesday, January 23, 2008

Phone with fold-away screen to launch in mid-2008

Size matters. And as we become more mobile and more green, the question remains which device works best to replace the traditional use of paper for newspapers, magazines, and books. Kindle, Sony Reader, even Apple iPhone are working to create a user friendly device that consumers might prefer. Now comes word of another venture into this space with the announcement of Readius, a mobile device with a screen that folds out to provide a larger viewing experience. And like the iPhone, this new device can also make a phone call.

Unless men start carrying a "manbag", it is only natural to expect devices that are small enough to fit into a pocket or attach to a belt, yet large enough to offer a realistic size screen for reading. As these devices get ergonomically more friendly, we are sure to see more interesting technological changes to come.

But the bigger question remains, will users prefer thses devices to a paper product that can be easily left behind or will they prefer to have their reading material synced to their reader. Time will tell.

Tuesday, January 22, 2008

Websites make it easy to catch a missed TV show; Networks value loyalty in watchers

Full length streaming continues to take center stage. HBO recently announced access to their east coast feed, as well as VOD type access, via broadband to their content. Surprising announcement given their parent, Time Warner Cable announcing a test to charge broadband customers based on usage rather than a flat fee.

USA Today offers an article comparing 6 different streaming websites. From Fancast and Joost to Hulu, they offer a side-by-side comparison of each site, its upside and down. From my personal experience, I have been most impressed by Hulu, and least by Joost. My experiences with Fancast have been limited. Still, I like the quality of Hulu's picture, the variety of programming, and the spped of access. The commercial interruptions have been limited and not too overwhelming.

As the writers strike continues, the quality of product on TV has gone downhill. I remain a Heroes fan and anxious for its return. As a traveler, I rely on streaming to substitute for Tivo away from home. It is what I want when I want where I want.

Saturday, January 19, 2008

Is Writers Strike Affecting TV Consumption

Ask yourself, are you watching less TV because the writers strike has stopped production. Per this article and the research it reports, heavy TV viewers are watching significantly less tv. This number does not make sense, especially given the fact that, except for late night talk shows, the nets continued to broadcast original scripted series. In addition, networks like NBC have been able to hold back shows like Medium, for mid season replacement, so that scripted series continue to be available to the viewer. The problems will be felt toward the Summer as scripted series will have dried up and no pilots will have been created to start the Fall season. I believe that is when research can best identify where the viewer is going for content: broadcast, cable, VOD, DVD, on the pc, and even gaming, like the Wii.

So take this research with a grain of salt. It just seems to soon for this extent of repercussion to be felt. And don't expect a significant change in viewing either. Kids have become pretty adept at multi-tasking and they are sure to watch their favorite you tube video as the tv plays on.

My fingers do remain crossed that the DGA agreement leads to the WGA and AMPTP getting back to the table. We have an insatiable need for original content and that will get the real play on You Tube.