November 13, 2006

Message From Michael                    
                                                                                                                                                      

• SWEEPS


• CHINA VERSUS MICROSOFT


• BECOME YOUR OWN GM


• THERE’S MONEY IN THEM THAR HILLS


• VIDEO, VIDEO EVERYWHERE


• THE GOOGLE OCTOPUS


• IF YOU CAN’T BEAT THEM, JOIN THEM


• COCKTAIL CHATTER

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• SWEEPS.  One word.  I don’t need to say anything else, do I?


• CHINA VERSUS MICROSOFT:  And the winner is – you… maybe.  Sort of.  Then again.  Oh, well, let me explain.  First, everybody’s favorite company, Microsoft, has cut a deal with Hollywood producers to make various TV shows available through its Xbox 360 online video game service.  The Associated Press reports that upwards of 1,000 hours of programming, ranging from South Park to CSI to pay-per-view boxing matches.  (Microsoft, remember, also launched its own iPod contender – Zune.)  Then the latest entrant into the broadband video arena is a service that is being called the Napster of video.  Shanghai-based TVU Networks, which bills itself as “the broadband digital TV network” provides software that allows you to watch TV from various organizations around the world.  In an interview with CNet News.com, the company founder Paul Shen says it isn’t video piracy and that he wants to work with the broadcast networks.  A quick review by your favorite consultant showed networks ranging from CBS to the BBC, along with Chinese, Japanese and Indian channels.As a side note, here is a key term – disruptive technology.  It’s what the analysts and experts are using when they talking about the TVU Player.  As defined by Wikipedia, it is “a technological innovation, product or service that eventually overturns the existing dominant technology or product in the market.”  And it can be either lower-end technology, meaning less expensive and less capacity technology, or new-market technology aimed at people who aren’t consumers… yet.


• BECOME YOUR OWN GM:  Okay, now that I have the attention of all the General Managers out there.  Several of the broadband video services are offering users the opportunity to develop their own channel or product, apparently on the basis that everybody is hoping to be the next Facebook/YouTube billionaire.  Most notable among these is Brightcove.  It offers two versions – one for “independent content creators and producers” and one for “media companies, broadcasters and marketers.”  Another quick review by your favorite consultant showed an interesting variety of “channels” including NewBuzzTV and Success Television.  The service promises to help you “launch a full-fledged Internet TV channel – in a matter of hours – with no upfront capital investment.. (and) harness the creativity of consumer-generated media… (and) generate meaningful revenue.”  What’s not to like?  If you want to try something a little less ambitious, try Blogtalkradio.com which promises to let you “host your own talk show online… free… (and) in fact, you can get paid to host your blogshow.”  Rush Limbaugh, move over.  By the way, research firm Technorati says it is now tracking 57 Million blogs and that the blogosphere is doubling in size every 230 days.


• THERE’S MONEY IN THEM THAR HILLS:  And that’s why so many individuals and business are jockeying to get into the broadband online video business.  Marketing researcher eMarketer projects online video advertising to jump 89% next year to $775 Million.  Not much when compared to the overall TV revenue picture, but the point is the rate of its growth.  Meanwhile, Research firm Dynamic Logic reports that, not surprisingly, video ads out-perform other ads online.  Not only that though but the online video ads out-perform the “video norms” in terms of brand awareness, brand favorability and the all-important ‘purchase intent.’  The report says that while a ‘re-purposed’ 30-second TV commercial can be effective online, shorter spots have greater impact and that the best length is seven seconds.  The report also notes the value of viral videos, citing in particular the Coke-Mentos video (which I’ve mentioned in previous MfM’s and which you really should see).  Creators Eepybird have produced a variety of videos which show variously exploding two-liter Coke bottles, caused by Mentos candy.  By the way, watch for the Advertising Research Foundation’s go-to-guide book on Interactive and Online media to come out soon.


• VIDEO, VIDEO EVERYWHERE:  Despite what many people think, the next line in the Rime of the Ancient Mariner says, “and all the boards did shrink.”  Well, in our parody version, the next line would be “and all the broadband did grow.”  Doesn’t rhyme worth a darn, but what the hey.  More proof of the growing broadband influence are the number of YouTube wannabes jockeying (yeah, I know, that’s the second time I used that word) for position.  Video web-sharing site Revver has partnered with Fame TV out of Great Britain which uses only user-generated video clips, according to TV Week.  Fame TV already had cut a deal with Al Gore’s Current TV.  Cable giant Comcast which is already in the Video On Demand business plans to launch its own video-sharing, user-generated site, called Ziddio.  According to MarketingVox, the best videos will be made available through Comcast’s VOD service.


• THE GOOGLE OCTOPUS:  The company’s tentacles re being extended beyond them thar hills, with the recent announcement that it is getting into the radio and newspaper advertising business.  It says something that the company is looking to place ads in newspapers because it can’t find enough room online.  At this point, it’s a test program but a pretty impressive test roster including The New York Times, Washington Post and Chicago Tribune.  Analysts say the move may draw more ads to newspapers but it may also create an online ad auction system.  Meanwhile, MediaPost reports that Google is looking to “harness its online paid search platform to allow marketers to purchase contextually targeted radio ads.”  In simple terms, Google wants to expand the deal it already has with “radio titan” Clear Channel from web sites to actual audio ads.  Just as profound if not as popularly known is the move by Google to provide its web applications to web developers, in essence making it the Microsoft of web sites.


• IF YOU CAN’T BEAT THEM, JOIN THEM:  The nation’s largest newspaper chain, Gannett, has announced two major initiatives, indicative of the changing media landscape.  One, it is joining in the “citizen journalism” movement by enlisting the aid of bloggers, Internet discussion groups and ‘other non-journalists’ in putting together stories.  The company calls it, “a fairly fundamental restructuring of how we go about news and information on a daily basis.”  An example of this approach was a story in the Fort Myers News Press in which retired engineers, accountants and other readers were enlisted to examine why connecting water and sewer service to new homes was so expensive.  The other ‘fundamental restructuring’ is the announcement that the company is going to merge and converge all of its newspapers to a 24-hour print and online operation.  As reported in Editor and Publisher, the company has mandated that all its newspapers submit a plan by mid-November with implementation by the middle of next year.  In both cases, analysts say, the motive is simple – to reverse the declining circulation and advertising revenues.


• COCKTAIL CHATTER:  The U.S. Army has hired advertising agency McCann Erickson (dollars unknown) to polish its image with a new campaign “Army Strong” consisting of three 30-second and 60-second spots, one of which is in Spanish.  Remember the controversy last year over being politically correct about saying Christmas or Holiday Season?  Apparently, retailers this year are adopting “Christmas” themes more often, according to Trends magazine.  The average consumer is expected to spend $791.10 this holiday season, up from $738.11, according to research firm BIGResearch.  And the National Retail Federation projects holiday spending overall will increase 5% this year, reaching $457.4 Billion.  Time magazine has named YouTube the invention of the year, beating out a ‘supereconomical’ car and a soldier-saving robot for the honor.  


• SUBSCRIPTIONS:  If you wish to stop receiving this newsletter, e-mail newsconsultant@aol.com with the word “unsubscribe-MM” in the subject line. Also, back issues of MfM from 2006 are available at the website, media-consultant.blogspot.com.  You can reach me directly at Michael@MediaConsultant.tv.