What's Really Killing Newspapers

Like David Carr of the New York Times, I too enjoy reading the Star Ledger to feel more connected to the area, to county and to state issues. But less people seem to need the paper anymore and the cost of lower readership and declining ad revenue means cost cuts and content reduction by laying off writers. The Sunday paper may seem full, but it is all inserts and fluff. He cites the perfect analogy: " 'It’s like a ham sandwich, it’s so thick, with lettuce, pickles and onions.'It may still look like a sandwich, but some of the meat is about to go missing." With less writers talking to its specific constituents, it becomes filler of generic syndicated content. A destructive cycle that only leads to the end of the Star Ledger.

In another article in the New York Times, the survival of the whole industry is questioned. Who would buy a newspaper today? Oddly, Cablevision just bought Newsday. Last year, News Corporation bought The Wall Street Journal. Do they know something, the rest of the world doesn't? "Despite the long-term challenges, analysts and bankers think that buyers will return to the newspaper market, though they may be outnumbered by people who decide to invest in online news start-ups instead."

The folks at Slate seem to recognize the shift away from newspapers as due to technological change. Previously, the newspaper led social change and you would seek out the stories to remain in the loop to key issues. Friends would remark, did you read the story on... Today, social networking is achieved through technological means; digital articles, emailed to friends and associates, social networks and blogs to share opinions and voice concerns, websites to promote ideas and find information. "The social networking that takes place via instant messaging, microblogging, or e-mail further steals from newspapers the mindshare they once owned. You no longer need to rely on a paper for the social currency that a weather report, movie listings, classified ads, shopping bargains, sports info, stock listings, television listings, gossip, or entertainment news provide. As falling circulation indicates, fewer do."

Can the Regional Newspaper Survive?

The Star Ledger faces not only revenue losses, but the loss of jobs and perhaps even the sale of the newspaper itself. "The Star-Ledger announced today that 200 non-unionized employees will have to take a buyout by Oct. 1. If the total is not met, the Newhouses' Advance Publications is threatening to sell the newspaper. Reporters are not unionized, according to a source close to the paper." But who wants to buy it? It's not that newspapers have no value, it's just that it's readers have stopped subscribing to get their news from other sources. And as subscription dries up and the economy deteriorates, the advertising revenue drops.

I personally enjoy the Star Ledger, for its regional and local news; but this same information is also found on the web. And so this need to cut jobs to stay solvent is not the end of the situation for the Star Ledger and other newspapers, simply the beginning of the end. The current model is no longer working; news is far easier to share through other distribution models. We are witnessing a transition from newspapers to digital media. For us newspaper readers, start ordering your Kindle.

LG's Netflix Box - Will Consumers Connect

How will consumers watch movies? Will they schedule their viewing according to their TV guide, waiting for its 9pm start? Will they prefer the cable on-demand model and navigate through various search screens to find the title they desire? Will they reach for their HD dvd that they purchased from Walmart or Target and watch on their TV or portable player? Will they purchase and download from Netflix or Amazon or Sony, to watch a movie? Purchase or rent, cable or Netflix, so many choices.

Netflix has decided to team with LG and offer a player that provides dual capabilities, Blu-ray HD dvd player and Netflix download. "New details on LG's movie-streaming tie-up with Netflix, courtesy the Wall Street Journal: In September, LG will start shipping a Blu-ray player that also supports Netflix Internet movie streams, for 'well under $500.' More good news: Buyers won't just be locked in to Netflix's (NFLX) limited streaming content -- the device will also be able to access 'other forms of programming from other sources.'" Obviously, the more flexibility, the better the value proposition for the consumer. And even more importantly, the easier it is to connect and play, the better it is for the average consumer to hook up and enjoy.

Should consumers run to replace their standard dvd player with this device? And should cable operators be worried that this device will take revenue away from their on demand model. Operators need to improve the navigation screens for on demand, as well as improving its speed and eliminating any latency issues. They need to add more titles to their library of content and enable internet content to play through the cable box. I believe it is time for all cable operators to partner with Tivo. They have a grasp on what the navigation should look like. By creating the ultimate viewing experience, customers will have no need to reach for the LG Netflix box. If they don't, this device may just be a winner.

Fifth of TV viewers watching online: survey

Why are people watching online. "It showed that 50 percent of people viewing TV on the Web are watching programs as they become available and "appear to be beginning to use the computer as a substitute for the television set," Integrated Media Measurement Inc. (IMMI), which conducted the poll, said. The other half are using the Internet to watch programs they have missed, or to re-watch segments or episodes they have already seen, IMMI, a company which links media exposure to consumer action, added." I say they are watching on the internet because these same shows are not being offered via on demand on their TV set.

The web provides much more variety than most cable operators offer. If able to watch these programs on a bigger screen, I expect that more would choose the latter. I also suspect that where consumers watch also matters. These users may not have a TV set in their office, but do have a internet connected pc for watching this content. This is a relatively new phenomenon and office productivity most likely suffers as users multiplex between watching their shows and doing their work. As companies catch on, this availability may be blocked.

The TV continues to be the primary screen to watch long form content. Content available on the web needs to also be available through on demand. Navigation needs to improve on the TV to search and select from this much larger variety of product. We have become an on demand consumer and have become less likely to wait for our shows to appear. We want it all and we want it now. Internet viewing reflects this growing appetite. On demand viewing needs to duplicate this ever growing buffet of choice.

Facebook Pulls Plug On Scrabulous

I'm sad; my favorite application on Facebook has been pulled. And while I am not a good player, I do enjoy the interaction with my "friends". I was in the middle of a few games and I expect to never finish them.

Hasbro has the right to their intellectual property and Scrabulous was absolutely a ripoff of Scrabble. But Hasbro needs to give Scrabulous their kudos for capturing new media interest and taking Scrabble to the next generation. It raised their brand and made Scrabble popular again.

"Earlier this year we heard the Agarwall brothers had been offered a substantial check from Hasbro and other companies with a claim to the Scrabble brand (there are several), but that they were holding out for more. We still think that in the end, they'll walk away with something, since they've got a wildly popular app on their hands. But the takedown certainly removes a whole lot of leverage, and makes it possible that they'll end up with zilch."

I hope they come to terms and I get my online game back again. I hate to lose, but I hate worse not playing.

The End of Cassette Tapes: I Didn't Realize They Were Still Here

Sorry to say, I can't remember the last time I used a cassette tape. Of course, the same holds true for VHS tapes too. Their replacements, the cd and the dvd, marked the end of their value. And while I still have cassettes and VHS tapes in the house, most are in boxes somewhere in the attic. The funny thing is I haven't the heart to completely rid myself of them. In my youth, I copied songs, radio stations and movies onto them. I probably have an old Dr. Demento tape from too many years ago.

As a kid, I stood by my cassette player, starting and pausing to capture songs off the radio. I created mixed tapes from my albums and played them at parties. As a teenager, I loved old time radio programs, and collected numerous cassettes of Jack Benny, Burns and Allen, and others. Today, everything is copied and burned. Need a mix, burn to cd rom. And soon, no burning, simply copying to a flash card device.

But new technology has made these tapes more about memories than function. And as the LP begat the tape, and the tape begat the cd, so too will the ipod and mp3 completely replace them. "Such was the case for the eight-track format as well, which was popular in the late 1960s and ’70s. It died relatively quickly with the advent of cassettes because eight-tracks were not widely used for personal recording or mix tape". Electronic download to the device of choice is the next generation and "books on tape" are simply a memory. Audible has been pushing the digital version for years.

Will Sirius/XM Merger Enable Direct TV and Dish to Merge?

So is what is good for the goose also good for the gander? Now that the FCC has approved the Sirius XM merger, will that create a precedent to allow Direct TV to merge with Dish? In the case of satellite radio, their economic survival seemed threatened when faced with the pressures of competing against a large marketplace, from broadcast radio stations, iPods, and now internet radio; competition, it could be argued, remains very much in the marketplace. Merging allowed them to remain competitive.

For satellite cable today, a merger of Dish and Direct TV also has economic consequences. But merging of cable operations is not foreign to the FCC. As cable companies like Time Warner and Comcast have grown in size, it is at the expense of the small and mid size operators. The FCC has continually approved those cable acquisitions. As a result both Time Warner and Comcast cover a majority of the country's cable footprint.

New competition, from the telcos, Verizon and AT&T, has also emerged, to have added a new level of competition in the marketplace. And it appears that this competitive threat has had more impact on cable operators today. Where satellite has pushed their superiority in HD, the telcos are coming in with a message of more variety, faster speeds, and better service.

Satellite has had a disadvantage, operating one way plants while cable and telco can employ two way technology. Direct has come up with their version of VOD to offer a two way, on demand experience. Voom tried to join the hunt and compete as a third satellite provider, pushing original HD channels, but ended up selling its satellite to Dish, instead. For customers that are not easily reached by cable lines, satellite may be their only choice. Without competition, the customer may be hurt. Unless it is proven that in each case, telco or cable can reach that same customer with a competitive product. Else, the loss of a satellite provider would create a detriment.

Lastly, one could argue that given the market, a very limited competitive market already exists. The consumer, looking for TV, can choose only one telco that serves their market, or one cable operator that serves their market, or two satellite providers. But like radio, the other choice is free TV. While not as many choices, free TV does provide an alternative to pay TV, It may not be as many choices, but you get what you pay for. Should Direct TV and Dish be allowed to merge? I say yes. The real fight is between technologies, not within them; cable vs telco vs satellite vs free TV. And as technological changes emerge, internet TV, obtained wirelessly may become even more mainstream as another competitive choice. Let the market rule.

CBS Radio Launches New Web Video Push

What do you call a radio station that shows video? A TV station! No longer satisfied to be an audio only platform, the light bulb has gone off to show video too. This is not a new concept; Howard Stern and Don Imus had been offering a video feed of their radio programs for many years. If you feel it is necessary to watch your talk show host as he or she pontificates is up to you.

"The new platform, powered by WorldNow, gives CBS 140 radio stations the ability to create personalized branded video players to feature station content, such as music videos, artist interviews, live concert performances, breaking news and original programming, and allows stations to syndicate content or embed clips to be shared via social networking."

For most of us, the radio allowed us to multi-task; to listen in the background as we engaged in other projects. For some, it may prove appealing to gain a video perspective; for others, it may prove not relevant. But radio needs to think multi-platform and multi-screen and this approach gives their content added value to advertisers if it engages more users. And while radio has been linear in nature, the next evolution may even become on-demand, allowing users to choose the music, interviews, and other bits, by accessing online what they want when they want it.

Ultimately, the content they create with both an audio and video feed has to be more interesting to the user. Like satellite radio, terrestrial radio faces increased competition and this approach may prove to be a winner. "The video platform debuted Wednesday on four of the company's New York stations: WWFS-FM (www.fresh1027.com); WCBS-AM (www.wcbs880.com); WXRK-FM (www.923krock.com); and WFAN-AM (www.wfan.com)."

FCC member votes against XM-Sirius deal

"The Wall Street Journal reported in its online edition Tuesday. Among the three votes cast in the FCC's review so far, Copps, a vocal opponent of increased media consolidation, is the first to vote against the deal, according to the newspaper."

Why is this being held up. Satellite radio will not be a monopoly as long as free radio exists. Add to that the rise of internet radio, iPods and other devices, and this merger should have been a non-issue. This vote against is really just a way to watch a company fail. The Department of Justice approved this deal a long, long time ago; this delay is simply ridiculous. Add to this the ruling that through out the CBS fine the FCC imposed for the Janet Jackson Super Bowl incident and it demonstrates that the FCC has lost control.