Coming as no surprise, newsstand sales of magazines are down this year. According to the article, the first half saw an 11% decrease in single issue sales while subscription sales appears to be flat. But should this newsstand decrease be a surprise to anyone. It doesn't take much of a crystal ball to see that bookstores like Borders that sell magazines aren't doing well. With businesses cutting costs to manage profit margins, business travel has declined. So too has personal air travel given the high costs to fly. Few stories, with the exception of the royal wedding, are notable enough to push readers to buy a magazine, especially when these same stories are accessible on the web.
We are seeing changing readership patterns. The challenge and the opportunity lies in the content and its exclusivity behind walled gardens. That means that a story on Justin Bieber may seem important but it is most likely covered numerous times. We need to make the writers behind the story more notable so that it is equally important who is telling the story that makes it an important read. And changes in distribution platforms need to be embraced as well. The web opens up opportunities for single and subscription sales. It also enables a multi-media approach to storytelling with better pictures and videos to accompany the words. Add to that the promise of always up-to-date so that every story that is time sensitive has the most accurate facts and information to share.
We can't rely on newsstands to return to former days of glory. New marketing partnerships need to be enhanced. A couple examples: Bring your Nook to Barnes and Noble and get a special deal on an in store download of an issue. Or bring your iPad into an Apple store and get special digital content from a magazine. Or bring your Kindle to a Hudson Newsstand at the airport and download a code for a discount on your next Amazon purchase with any in-store digital purchase. Hopefully integrated marketing strategies can lengthen the life of the newsstand while embracing single issue sales.
In these turbulent times, with a slow economy, a downturn in travel, bankruptcy of our bookstore chains, and a transition from print to digital content, newsstand sales may not ever fully recover. Their impact may need to transition to a marketing approach to encourage a digital sale rather than to push a magazine sale into the shopping cart.
Monday, August 8, 2011
Saturday, August 6, 2011
Is Hulu A Good Acquisition Target?
It seems that a lot of big companies are kicking the tires on a Hulu acquisition. We've read about Apple and Google having some interest. Now comes word that DirecTV is considering a purchase. "One more potential Hulu acquirer has thrown its hat in the ring, with DirecTV admitting it has joined Apple, Yahoo, Google, Verizon, AT&T and Amazon in taking a look at the online video site’s financials. But while it’s an interesting opportunity, according to DirecTV CEO Mike White, he said the satellite TV firm has yet to determine if Hulu’s long-term business model makes sense for an acquisition." This news just when DirecTV announced a bad quarter for subscriber acquisition. Is Hulu the right fit with DirecTV let alone with any of the companies mentioned?
Apple may be kicking the tires for sport only as there is speculation that they are building their own rental business from scratch, licensing content from all the major studios and networks. DirecTV has linear and perhaps some on demand deals in place with the same content companies as Hulu. As the cable operators are fighting for streaming deals as extensions of their programming rights, DirecTV may be best served doing the same thing. Hulu may prove to be an added cost, but not the best means to promote the DirecTV brand. For Yahoo, it may be the only move left to compete with Google and You Tube.
Hulu wants to be sold because it's current partners most likely can't get along. Its hard to be a competitor in the network arena while acting as a partner in the digital space. Their best move is to sell out, take their money, and run. It just might not be the best long term deal for the buyers. Time will only tell.
Apple may be kicking the tires for sport only as there is speculation that they are building their own rental business from scratch, licensing content from all the major studios and networks. DirecTV has linear and perhaps some on demand deals in place with the same content companies as Hulu. As the cable operators are fighting for streaming deals as extensions of their programming rights, DirecTV may be best served doing the same thing. Hulu may prove to be an added cost, but not the best means to promote the DirecTV brand. For Yahoo, it may be the only move left to compete with Google and You Tube.
Hulu wants to be sold because it's current partners most likely can't get along. Its hard to be a competitor in the network arena while acting as a partner in the digital space. Their best move is to sell out, take their money, and run. It just might not be the best long term deal for the buyers. Time will only tell.
Friday, August 5, 2011
Add Print, Box Store, and Digital, Then Stir
I am always intrigued when new partnerships emerge, especially when they seem so out of box. To me the latest announcement that Esquire and JC Penney are working together strikes me as a terrific opportunity. "Clad, a new e-commerce partnership between JC Penney and Esquire magazine, will launch later this month." I like it for both parties for a number of reasons. The JC Penney brand comes with a ton of pre-conceived notions; perhaps, too, so does Esquire. Each brand is known for its particular space, but less impact in the digital, e-commerce world. The two together brings upscale print with merchandising and distribution. And an e-commerce site ideally captures new business without hurting the existing business strategies of each company.
Obviously I wonder if the recent hiring of the head of Apple's retail stores to JC Penney helped to initiate such a deal. Whether it had an effect or not, it brings JC Penney further into the present and matches the editorial style of the Esquire brand. Like what you see, why not easily buy it.
Obviously I wonder if the recent hiring of the head of Apple's retail stores to JC Penney helped to initiate such a deal. Whether it had an effect or not, it brings JC Penney further into the present and matches the editorial style of the Esquire brand. Like what you see, why not easily buy it.
Thursday, August 4, 2011
Time Warner, Inc. Proves That Content Is King
Time Warner made a strategic decision to separate its distribution platform company, Time Warner Cable, from its content producing company, Time Warner, Inc. Given the name similarity, few outside business probably know that they are no longer related. Yet this split has enabled Time Warner, Inc to concentrate on building revenue building content without feeling encumbered by a particular distribution platform. The result, double digit quarterly growth.
In all of its content producing businesses, TV shows and networks, print magazines, game software, Time Warner has successfully embraced new media and found additional revenue streams. From iPad magazine subscriptions to ad-supported networks, Time Warner is finding multiple revenue streams to fill the coffers. "Time Inc. announced on Wednesday that all of its magazines would be available on tablets by the end of the year. It asserted in a news release that it would be 'the first major U.S. magazine publisher to make all of its titles available on all leading tablet platforms, with products designed specifically for this medium.'” Embracing the digital world has also helped with cable networks. They cite HBO GO, their new app, as resulting in higher HBO usage and better satisfaction.
Of course it is all about the content and Time management recognize that investment in better content lends itself to better returns. But owning the content, including digital distribution, allows Time Warner the flexibility to best present such content how and where it best serves its audience. Earlier this year, they announced that authenticated cable customers can access the live CNN linear feed on mobile devices. That is an important step. As consumers are more and more demanding that content follow them and not the other way around, Time Warner, without the burden of the cable wire, has the freedom and flexibility to serve it up in multiple ways. Today HBO GO is mobile on demand, CNN is live and mobile. Their magazines are offering iPad subscriptions. It is this digital push and recognizing that "content is king" that will serve Time Warner well in future quarters and years to come.
In all of its content producing businesses, TV shows and networks, print magazines, game software, Time Warner has successfully embraced new media and found additional revenue streams. From iPad magazine subscriptions to ad-supported networks, Time Warner is finding multiple revenue streams to fill the coffers. "Time Inc. announced on Wednesday that all of its magazines would be available on tablets by the end of the year. It asserted in a news release that it would be 'the first major U.S. magazine publisher to make all of its titles available on all leading tablet platforms, with products designed specifically for this medium.'” Embracing the digital world has also helped with cable networks. They cite HBO GO, their new app, as resulting in higher HBO usage and better satisfaction.
Of course it is all about the content and Time management recognize that investment in better content lends itself to better returns. But owning the content, including digital distribution, allows Time Warner the flexibility to best present such content how and where it best serves its audience. Earlier this year, they announced that authenticated cable customers can access the live CNN linear feed on mobile devices. That is an important step. As consumers are more and more demanding that content follow them and not the other way around, Time Warner, without the burden of the cable wire, has the freedom and flexibility to serve it up in multiple ways. Today HBO GO is mobile on demand, CNN is live and mobile. Their magazines are offering iPad subscriptions. It is this digital push and recognizing that "content is king" that will serve Time Warner well in future quarters and years to come.
Wednesday, August 3, 2011
Apple Prefers to Build Than Buy
Why buy from someone else when you have the resources and vision to build it from scratch. For those like me thinking that Apple might just buy Hulu or Netflix and merge it with it's own iTunes Store, comes word that the opposite may be true. "Apple might be ready to roll out its own video subscription service similar to Amazon and Netflix, Peter Misek at Jefferies reports in a note this morning. Specifically, he says, 'As part of Apple's roll-out of cloud video services (and eventually an iTV), we believe Apple has unannounced deals with all/most of the studios/TV networks that are similar to the subscription streaming deal between Amazon and CBS.'"
Frankly, not too hard to believe. Apple has always been a tough negotiator. Heck their 30/70 subscription deal with newspapers and magazines for the iPad indicates that ability. Rather than accept the current deals tucked inside an acquisition, why not negotiate independently and build the best possible subscription model. Hopefully, with such a deal, Apple will enable a video content platform as large, if not larger than Amazon, Hulu, and Netflix. If the content deals are thin, this may not be the most desired outcome.
When could such an announcement be made, most suspect not till later next month. Apple has never been shy about doing things on their own timeline. Coupled with the re-release of Apple TV and its iCloud platform, this could potentially be a very big news story.
Frankly, not too hard to believe. Apple has always been a tough negotiator. Heck their 30/70 subscription deal with newspapers and magazines for the iPad indicates that ability. Rather than accept the current deals tucked inside an acquisition, why not negotiate independently and build the best possible subscription model. Hopefully, with such a deal, Apple will enable a video content platform as large, if not larger than Amazon, Hulu, and Netflix. If the content deals are thin, this may not be the most desired outcome.
When could such an announcement be made, most suspect not till later next month. Apple has never been shy about doing things on their own timeline. Coupled with the re-release of Apple TV and its iCloud platform, this could potentially be a very big news story.
Comcast Cable Subs Drop, Broadband Grows, Content Grows
As a total business entity, Comcast had a good financial quarter. Both revenues and earnings grew at a healthy pace, and the business seems poised for more opportunity. At the same time, Comcast is experiencing a change in its business model where broadband and content are at the heart of its future.
For the last quarter, Comcast, like the second largest cable operator, Time Warner Cable, saw its video subscriber base fall. This has been a consistent theme, quarter after quarter after quarter. While Comcast's 238,000 sub loss as a percentage of total subscription is small, the fact is that it remains a consistent story. On the other hand the wire to the home, enabling broadband and telephone access, continues to reap growth, with its combined total, 337,000 customers, more than making up for the video subscription decline. And less surprising, that their recently acquired programming entity, NBCU, combines with Comcast's other cable networks, is seeing a healthy growth in license fee and advertising revenue. Content certainly remains king.
Can Comcast stem the losses in video subscription? With the rise in IP programming from other platforms, and an almost crippling cost to subscribe to digital cable, it seems highly unlikely. Consumers will continue to shift their viewing habits to other means to find ways to pay for only the programming they want to watch and to hope that the aggregated cost of buying Netflix, Hulu Premium, or other content, remains less than cables' monthly subscription fee. It is highly unlikely that cable companies can lower their rates as programming license fees rise annually. Cable's solution may need to be dropping lower performing cable nets or developing cheaper packages, to lower subscription prices. Unlikely, but perhaps necessary.
For now, the wired pipe to the home is still providing strong revenue, especially with internet and phone growth. While the cable business may continue to erode, content distribution through NBCU and an ad sales rebound will only keep growing the whole Comcast business.
For the last quarter, Comcast, like the second largest cable operator, Time Warner Cable, saw its video subscriber base fall. This has been a consistent theme, quarter after quarter after quarter. While Comcast's 238,000 sub loss as a percentage of total subscription is small, the fact is that it remains a consistent story. On the other hand the wire to the home, enabling broadband and telephone access, continues to reap growth, with its combined total, 337,000 customers, more than making up for the video subscription decline. And less surprising, that their recently acquired programming entity, NBCU, combines with Comcast's other cable networks, is seeing a healthy growth in license fee and advertising revenue. Content certainly remains king.
Can Comcast stem the losses in video subscription? With the rise in IP programming from other platforms, and an almost crippling cost to subscribe to digital cable, it seems highly unlikely. Consumers will continue to shift their viewing habits to other means to find ways to pay for only the programming they want to watch and to hope that the aggregated cost of buying Netflix, Hulu Premium, or other content, remains less than cables' monthly subscription fee. It is highly unlikely that cable companies can lower their rates as programming license fees rise annually. Cable's solution may need to be dropping lower performing cable nets or developing cheaper packages, to lower subscription prices. Unlikely, but perhaps necessary.
For now, the wired pipe to the home is still providing strong revenue, especially with internet and phone growth. While the cable business may continue to erode, content distribution through NBCU and an ad sales rebound will only keep growing the whole Comcast business.
Sirius See Subscriber Growth As It Raises Its Rates
Forecasters expect an increase of 1.6 million customers, 200,000 over its initial forecast. All this as the recession and auto industry have been suffering for some time. At the same time, Sirius believes it is time to raise its monthly fees. They plan to raise fees to $14.95, a $2.00 increase. That translates into a healthy 15.44% bump. Does such price elasticity exist for current subscribers or will this plan change affect the current and future subscriber base? While I have yet to read about much outcry, once the change occurs next year, I'm sure voices will be heard.
Tuesday, August 2, 2011
Apple Needs Content
Apple has taken another leap into the TV set with a new and improved "converter box" experience. No longer will the Apple TV need to access content from a mac, now it can go directly to the clouds. "Apple TV had previously allowed users to rent television shows from iTunes, but the new update essentially allows them to use iTunes like a storage locker for purchased shows that can be watched at any time. Rentals are still allowed, but part of Apple’s pitch for iCloud has been the ability to access your files essentially anywhere at any time if you’re using an Apple mobile device." Easier to access, easier to watch, it's a whole new experience.
But like the boy in "Oliver", we want more. For Apple it means more content. Netflix users have argued that their is limited content available to stream. Apple users will demand even more content for viewing. As Apple moves down this path of cloud access for content, consumers will expect that they will have ultimate choice: Do they want to rent or own the content, do they want a hard copy or just streamed, can they rent for one day or get a discount for multiple days. And that there will be choice.
If Apple is truly in the hunt for acquiring a content distributor, a Hulu or Netflix to fill the queue. Or Apple needs to make more aggressive deals with networks to access their content directly. The consumer is yelling for more and Apple is clearly moving in that direction to deliver.
But like the boy in "Oliver", we want more. For Apple it means more content. Netflix users have argued that their is limited content available to stream. Apple users will demand even more content for viewing. As Apple moves down this path of cloud access for content, consumers will expect that they will have ultimate choice: Do they want to rent or own the content, do they want a hard copy or just streamed, can they rent for one day or get a discount for multiple days. And that there will be choice.
If Apple is truly in the hunt for acquiring a content distributor, a Hulu or Netflix to fill the queue. Or Apple needs to make more aggressive deals with networks to access their content directly. The consumer is yelling for more and Apple is clearly moving in that direction to deliver.
Monday, August 1, 2011
Goodbye Versus, Hello ?
I love branding. A name can say so much...or so little. Some brands show logos, like Nike and Apple, need we say more. And initials always seems to come from names that are too long. That seems especially true in the cable network department.
Today it was announced that the Versus network will be changing its name the beginning of the year to NBC Sports Network. A mouthful. So many networks that started that eventually become just initials. Here's a partial list:
American Movie Classics to AMC
The Learning Channel ... TLC
Home Box Office ... HBO
Movietime ... E Entertainment ... E!
Romance Classics ... Women's Entertainment ... WE
Arts & Entertainment ... A&E
Black Entertainment Television ... BET
SciFi ... SYFY
and of course Outdoor Life Network ... OLN ...Versus to ?
Some have always been initials like fx, CNBC, AND MSNBC. Some have names that people barely remember. ESPN - Entertainment Sports and Programming Network, and CNN - Cable News Network. Or even defunct regional networks like PRISM - Philadelphia Regional In-Home Sports and Movies.
So I can only imagine that the newly named NBC Sports Network will soon be known simply as NBCS or SNBC or NBCSN. We love our initials and NBC Sports Network is simply too long to say.
Today it was announced that the Versus network will be changing its name the beginning of the year to NBC Sports Network. A mouthful. So many networks that started that eventually become just initials. Here's a partial list:
American Movie Classics to AMC
The Learning Channel ... TLC
Home Box Office ... HBO
Movietime ... E Entertainment ... E!
Romance Classics ... Women's Entertainment ... WE
Arts & Entertainment ... A&E
Black Entertainment Television ... BET
SciFi ... SYFY
and of course Outdoor Life Network ... OLN ...Versus to ?
Some have always been initials like fx, CNBC, AND MSNBC. Some have names that people barely remember. ESPN - Entertainment Sports and Programming Network, and CNN - Cable News Network. Or even defunct regional networks like PRISM - Philadelphia Regional In-Home Sports and Movies.
So I can only imagine that the newly named NBC Sports Network will soon be known simply as NBCS or SNBC or NBCSN. We love our initials and NBC Sports Network is simply too long to say.
Subscribe to:
Posts (Atom)
