Tag Archives: media

Traditional Media Goes to School on New Media

The traditional content companies (NBC, CBS, FOX, ABC, etc) have used the research, development and “trial and error” investments of many new media, web and mobile oriented companies to learn what networks4works in digital content, commerce and advertising.   They have transitioned from fighting the term “new media”, to adapting it, and in many cases becoming dominate players.

I was a witness to the first stages of this schooling in the early days of the dot.com explosion.

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Jay Chiat

In April of 2000, I had just joined the quintessential Silicon Alley content company, ScreamingMedia. Our well-funded company, had h the superstar and Ad icon Jay Chiat as Chairmen and a hard driving entrepreneur founder, Al Ellman.    Jay Chiat was famous for such ads as the 1984 Apple Superbowl commecial and the still-going  Energizer bunny.  

The company  hosted  its own new media content conference at the Chelsea Piers.   This was called the “Malcontent” conference.   The conference was organized to be a debate of new (web oriented) vs. old (TV, Radio, Newspaper) media.

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ScreamingMedia Founder, Al Ellman

We had luminaries from both sides of the assumed divide, including Dan Rather.   As a new executive at ScreamingMedia, I gave the case for mobile and its role in this new media landscape.   The one thing I was sure of, any media or content on a phone would have to be “new media”.

The value of ScreamingMedia was grounded in content syndication.   At the timeit  was technically and legally difficult to syndicate content on the Web.   ScreamingMedia (aka Pinnacor) was eventually acquired for about $150M.

Of course, this was pre-RSS days.  By today’s standards the media giant of syndication would certainly look old.

The debate (new vs. traditional) lasted well beyond this 3-hour event.  The crash of the dot.com industry in 2000-2001 took this off the techno blogs and webmags for a while, only to emerge again and again throughout the last 8 years.

Initially “new media” – which is loosely defined as anything related to the Internet started to make inroads against old media in digital ad spending.  Viewership, commerce and piracy flourished in Internet land.  My observation was the traditional media sources were slow and ineffectual in their digital  efforts.  

This had had the appearance of the classic innovators dilemma.  Traditional media profited from their “traditional” revenue sources.  Any admission that the model was changing threatened the status quo, or more likely the careers of those who made their fortunes in the pre-Internet era.

For the media giants, innovation was largely a content and storyline effort. Distribution was the means to theater tickets (movies), CD sales (music), and Ad dollars (TV and radio).  Innovation in distribution was in cable television, DVDs, and some simple web sites. The new media models were the domain of those who wished to destroy this traditional model.

Over the past couple of years I have met with many in the media industry on this topic.  I have to admit trad1that I have been perplexed that it took them so long to come around and really capitalize on the new distribution models.  My advice back then, and now, is that the big media companies still have the best, most wanted content.

The strategies and techniques that were pioneered by the new media innovators, such as ScreamingMedia have been adapted and extended by the general media industry.

With all due respect to a dancing baby on YouTube, a Tina Fey SNL skit on Sarah Palin will get more viewers, on the NBC website, then watched the actual Katie Couric interview.

All the TV networks have embraced online video of their shows, big time.  The online video versions of their lineups are ad supported and provide a much better experience than the pirated versions that float around the Web.  By embracing the model, they do it better than the previous amateur attempts by others.

So now what was “old” is “new”, and what was “new media”, is just another distribution channel for creative content, most of which comes from the media giants, with a secondary node to the entire world of user generated content.

We have now come full circle.  Good media companies observed what worked in the digital domain.  They capitalized on the considerable investment made in companies that originally were designed to compete with them.  In today’s market some of the most compelling digital content and applications are coming from the “traditional” media outlets.

Good Content is Good Content- From the days when the distribution model was cave drawings, to biblical stories, to the art and literature of the Renaissance, Shakespeare, Novels, Radio, TV, Movies, Internet and yes, mobile.

screamingmediavig

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Filed under advertising, CEO, Content, location based services, media, mobile, new media, syndication

Catch the Next Wave in Mobile

The key to the future lies firmly in what you do in the present.  This is the theme of every time bending sci-fi story.  Change what you do now and your future timeline will alter.   This axiom has never been as true in the mobile industry.  With a significant portion of the industry for value added services treading water (or drowning slowly) in this economy, those who position themselves for the recovery wave  will ride to success and be the next hot thing.  If you miss that first wave, you sink.

So, enough for the metaphors , Let’s get to the predictions.

Where should you be positioned for that enviable wave of profitability?

What will be hot? My top three

-Location Bases Services – For real this time!

minority_report2The prediction of profitable LBS services has been around for as long as LBS services.  The reason I am now bullish on LBS is the convergence of social networks, large screen devices and third party LBS providers for applications.    The visions of “Minority Report” like talking billboards or auto-generated coupons as you walk past a Starbucks have been the visions of non-visionaries.

Nice for Sci Fi but not in reality.

The popular navigation applications such as VZW navigator have been the first step in this lucrative market.  The integration of LBS with social networking will be the next.

LBS will be the  bridge that will bring virtual social networking back to the real world.  looptCool apps like a Google map that automatically shows you the location of your Facebook friends, alerts you if a “friend” is at the same bar, game or locale as you.
This is being developed by Loopt – today.

Legitimate dating services such as Match.Com could obviously benefit from such a service.

Will this make the anonymous rogue of virtual space more dangerous or more marginal?

Regardless, this is coming and will be big   Position your application for this and you will catch the wave
mobilescreen
-Mobile Commerce  – The rest of the economy meets wireless

In a previous article I talked about the tipping point of large screen devices and keyboards.  That trend coupled with “open networks” is a perfect storm for true commerce on mobile devices.  The industry will break out of the ringtone and wallpaper commerce “sand box” to address the other 99.9999% of the economy.

We will be evolving from using mobile as an alerting mechanism for transactions such as banking, trading, ebay, sports, etc.  The next step is to use the mobile as the transaction vehicle.

There are already several mobile ticketing trials for airlines and events underway.
Using your mobile as a truecredit-cards mobile wallet is just over the horizon.

The barrier that will have to be removed is the 40-50% share of revenue that carriers take for the existing mobile oriented content.   Credit Card rates for merchants are one tenth of what carriers charge.

The carriers have been providing both a billing service and a “mall owner” function.  Open Networking and free application choice changes this equation.   Either the carriers figure out how to be the clearinghouse for general commerce using their networks, or they will be ultimately bypassed.   The consumer should hope that the carriers continue to play a role and benefit from this increased commerce flow.  Simply , the more revenue the carriers can garner from commerce generation, the less the basic subscription rates have to be.

In either case the revenue flow through mobile will increase geometrically

-Advertising –The arrival of universally acknowledged Mobile ROI
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My view is that mobile advertising has been “Swift boated” by the other advertising media outlets.  This makes sense.  If I made my bonus purely on television, radio, print or web advertising, I would be less than happy for a share of those dollars, Euros or Yen to go to mobile platforms.  The claims that mobile advertising is impossible to measure seems rather suspect to me.  You can measure TV audience but can’t measure someone who clicks on your mobile ad?

With so much more content being produced for the larger screen mobile devices, the preferred monetization mechanism will be advertising first, subscription second.  The value chain for mobile ads, from creative, agency, platform, network, publisher and advertiser will mature and become fully mainstream.

More advertising revenue will benefit the traditional media giants as well as the new wave of mobile publishers such as game provider Cellufun.

Eventually the advertising model can help carriers transition the handset subsidy to the providers of goods and services.

These are my waves for the next couple of years, what do you thing I have missed?

Are you poised to cash in?

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Filed under economy, Google, hockey, location based services, mobile, mobile advertising, mobile commerce, mobile games, social networking, wireless

Wireless, Politics, the Economy and Hockey

Sometimes if you just take a moment for deeper observation at an event you can get a sense of what pundits spend a lifetime interpreting. Last night I took my youngest daughter to a Ranger game. They lost in overtime, 3-2 to the Edmonton Oilers, so I will not dwell too much on the fantastic comeback, the grit and determination and the ultimate let down.

Here are my other observations during those 4 hours:

Observation 1 – Wireless Gen
My daughter sent and received approximately 120 text messages. She communicated to classmates about the homework she would have to do when she got home, she chatted with her cousin about God knows what, She took three calls, and she cheered the loudest in are section. She does not have ADHD, she just multitasks at the rate of a cyborg!! This is the next generation.

Observation 2- Politics

obama buttonThroughout the game the roving camera guys put crazed fans on the big jumbotron. Twice last night, the fan was wearing a big Obama button on their Ranger jersey. When they saw themselves on the arena scoreboard instead of pointing to their Ranger emblem, they pointed to the Obama button! If seems the hockey Mom and Dad demographic in New York went for Obama.
Observation 3- More Wireless
The Rangers have several interactive mobile promotions during the game. The simplest is a text to screen application where your message is displayed on the scoreboard. What is “interesting” is that you text to one shortcode, get a thank you message from another shortcode and then are instructed to text a third shortcode for a free wallpaper. Also, the thank you shortcode responds with “Thank you for voting!” Opps? Did I vote? Time to check that campaign provisioning!

NOTE TO NEW YORK RANGERS MOBILE DEPARTMENT:

I herby offer – pro-bono (maybe you can pay me with an autographed stick) to fix your mobile applications to make them coherent and effective; to have them run on one shortcode, with proper messaging before, during and after the user interaction.

Observation 4- The Economy

rangersuites

I made a quick count on the number of empty luxury suites last night. I stopped counting after 23. Madison Square Garden has about 60 suites for the well-heeled New York corporate crowd. While I have seen empty suites in the past, the number of dark boxes is very large. As a proxy for the recession/depression on Wall Street, just counting the number of flipped light switched on luxury boxes is a leading indicator of the economy.

Observation 5- The Economy – Oh Canada! (Or is it just the Oil(ers))

Since the Rangers were playing a Canadian based team, the national anthems of both Canada and the U.S. are sung before the game. I like the Canadian Anthem, and can sing it with the best of them. I have to admit I was never quite sure who Canadians are “on Guard” from?

Anyway, I observed a very large number of Edmonton Oiler fans, from Canada. This is unusual. Usually the out of town fans come from New Jersey, Long Island and Philly. This got me thinking. Is there some other geopolitical trend that has caused these fans to be in New York?

I came to three possibilities – either they paid for a tour before the dollar increased in value, or they all work for oil companies in Edmonton and have more money than they know what to do with, or they are Canadian “snow birds” who escape the harsh Canadian winter to bask in the less harsh New York winter. You decide.

Amazing what you can observe if you just take a minute to look!

iamaranger800

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Filed under economy, hockey, media, mobile, New York, obama, politics, Rangers, wireless

The Perishable Opportunity of Managing for Success in a Down Economy

The Dow drops another 300 points, unemployment rises, spending decreases.  This hardly sounds like the environment for setting up your business for success, and yet this is exactly what your competitors are hoping for.

Let me explain.

Downturns in an industry or the economy have a necessary cleansing impact on our competitive capitalist environment.  In times of rapid growth, bad practices, poor process, and wasted resources accumulate like straws on a camel’s back.  The organizations usually do not notice the problems or choose to ignore them in limagnifyingglassght of the overall good growth in their products.

Then the music stops.  And the question is now what?

The knee jerk reaction is to pull back on everything-reduce headcount, reduce expenditures, conserve capital and just slow everything down and wait out the storm.  If this is all you do, you will, at best, not improve your market positioning, and very likely lag the recovery.

The downturn provides a unique, and yes, perishable opportunity.

Having managed through the dot.com bust, up-close and personal, I can definitely appreciate this position.  Let me explain.

In a down turn you get to catch your operational breath.  For example, you can kill those projects that were marginal and perhaps politically difficult to kill, and now you can kill them.  Priorities can become crystal clear.

You can really examine company processes and quality.  Fix those nagging product management and realization issues, get the quality tools in place that you never had time for, fix the old accounting system…

On the staff side, this should not just be a time for cutting headcount, and eliminating raises and bonuses.

This is the best time to upgrade your staff!  Every organization has a range of talent.  In a hot market you might be more inclined to hold on to mediocre team members, rather than invest the time and effort in finding someone new.  In a down market, there are more highly qualified people on the market.  Recruiting will never be easier than it is now.

If you upgrade your processes, products, quality and team in this environment, the cost to your bottom line is negligible!!  If the market is not growing anyway you have the time to make this investment.

If you do this, you will thrive at the front end of the recovery and leave your competitors in the dust.

If you stay with the status quo you miss this perishable opportunity.

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