THE JESUS PHONE
INTERNET OVER THE AIR
ONLINE VIEWING GROWTH
NETWORK AND CABLE NEWS DIFFERENCE
TECHNOLOGY INDIFFERENCE
STEPPING INTO THE WAYBACK MACHINE
COCKTAIL CHATTER
MURROW AWARD CONGRATULATIONS
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
THE JESUS PHONE: That’s the somewhat cynical description by media technology site SYS-CON MEDIA of the Apple iPhone because they say it’s being hyped like “it was the Second Coming.” Adding to the hype, Apple has announced it will be able to play YouTube video clips. It’s supposed to be released this Friday, June 29th, after what technology website Engadget.com calls “years of speculation on perhaps the most intensely followed unconfirmed product in Apple’s history.” Technology guru Mike Wendland who writes for the Detroit Free Press admits he is not as enamored of the device as many but he’ll still be standing in one of those long lines waiting to buy one. His concerns are the fact that it is using AT&T’s lower level broadband network, that it won’t allow direct music downloads (you have to go through your computer) and that it doesn’t have an actual keyboard.
Meanwhile, Microsoft has announced its own “second coming” device – surface computing, or as some call it, table technology. It’s a coffee table like computer that allows you to move and redesign pictures by simply touching the surface, or download pictures from your cellphone by simply laying it on the surface, or… well, you name it. I can’t do it justice by writing about it, but it’s worth viewing. Just go to Microsoft.com/surface.
INTERNET OVER THE AIR: As long as we’re on a technology kick, a group of major technology companies are joining forces to convince the federal government to allow high-speed Internet access to be provided over TV airwaves. Microsoft, Google, Dell, Hewlett-Packard, Intel and Philips say they have developed a prototype device which would use idle TV channels, known as white space, to beam the Internet out, according to an article in Washingtonpost.com. They say the device will take WiFi to a new level. Meanwhile, as the article says, the major telephone and cable companies are “watching warily from the sidelines.”
Keeping on the technology theme, researchers at MIT have shown that it’s possible to wirelessly power a 60-watt lightbulb. The power was only a short distance away (two meters), but the researchers say the experiment paves the way for wirelessly charging batteries in laptops, mobile phones and music players as well as cutting the electric cords on household appliances.
ONLINE VIEWING GROWTH: Two different reports and different sets of numbers but the same end conclusion. More people are watching more videos online. The Magid Media Futures national online survey found that a majority (52%) of online Americans 12 to 64 are using online video once a week or more. A survey of online users by the Online Publishers Association put the number at 44%. (Oddly, the same number Magid reported for last year.) The numbers are also different when it comes to daily use with Magid reporting 14% watching videos online every day while OPA reports 8% watching online daily. (Again, oddly, almost the same as Magid reported last year.) Both say the prime users are young males. And both say the top content items are news. OPA says nearly half (45%) access news videos weekly while Magid says more than a third watch online video news stories regularly. Both also put weather as a top online video content item, followed by jokes and bloopers. The OPA report says the Internet dominates all other media during the purchase process, leading in terms of initial awareness of a product, learning more about a product, deciding where to buy and, finally, in the actual purchase decision. Of course, this was a survey of online users, but the report says the numbers range from 48% to 57%. The second most influential part of the purchase process – Word of Mouth. The Magid report says nearly half (41%) of Internet homes have wireless networks and predicts that TV sets will be part of home networks in the years ahead.
NETWORK AND CABLE NEWS DIFFERENCE: One of the criticisms we often hear from the public is that all local news “looks the same.” Well, now research from the Pew Research Center for the People & the Press finds the same criticism of network news BUT not so much for cable news. Nearly three-quarters (74%) of those surveyed say network news operations ABC, CBS and NBC are “all pretty much the same.” (Despite ABC’s recent jump in the ratings.) Only a fifth (18%) say there are real differences. But while two-fifths (40%) of the public say cable news operations CNN, Fox and MSNBC are pretty much the same, nearly half (48%) see real differences. Further evidence that people think they’re all the same was the fact that the first word out of their mouths when asked to describe either network, cable or public radio news was the word “good.” OK was the second word used when people were asked to describe their impression of network news. Excellent was the second word used to describe Fox and NPR. The second most common word used to describe CNN was informative. Other words used for the various news organizations were liberal and biased. Consolation for the network news executives is that two-thirds (63%) say they regularly get their news about national and international news from one of the three major network news organizations while cable news operations was regularly viewed by about a third or less (37% for Fox, 35% for CNN and 26% for MSNBC.)
TECHNOLOGY INDIFFERENCE: Another part of the Pew group, the Pew Internet & American Life Project found that nearly half of Americans (45%) say information and communication technology gives them less control over their lives OR makes no difference. And a third (32%) of those with either cell phones or Internet say they need help setting up or using their new electronic gadgets. Reviewing why some people still refuse to join the communication revolution, associate director John B. Horrigan argues that the technology industry needs to improve its design of electronic gadgets and the industry needs to improve its sell of the benefit of such gadgets. Although he notes there are some “contrarians” who just don’t want to adapt or adopt the new devices. As a lesson to all, he quotes a report by the World Economic Forum on “digital ecosystems,” which says that while “not all companies that experimented with new organizational structure have flourished, all companies that failed to experiment have floundered.”
You may remember from a previous MfM that the Pew group provided a quiz to find out what kind of technology type you are – an omnivore, mobile centric or whatever. If you want to find out where you fit, the link is http://wwww.pewinternet.org/quiz.
STEPPING INTO THE WAYBACK MACHINE: Anybody out there remember Peabody and Mr. Sherman? Okay, never mind. In any case, a new feature for the weekly MfM is an occasional look back at what was ‘making the news’ in the MfM this time last year.
This time last year AOL relaunched Netscape.com with readers voting on the hot stories of the day. The site is still up and running but the voting is still low with stories garnering anywhere from three votes to 99 votes but not much more than that. Also this time last year we announced the launch of two new websites designed to broker people’s pictures to the press. The sites, scoopt.com and celljournalist.com are still up and running. The Online Publishers Association reported in June of last year that the Web was the dominant medium during work hours (followed by radio) and the second most used medium at home (after TV), proving, according to association president Pam Horan, that the Web’s “rise to mass media status is now clear and incontrovertible.”
COCKTAIL CHATTER: The invention of barbecue may be a key reason for humans developing larger brains. Scientists say that 1.9 Million years ago the brain of Homo erectus doubled in size. Harvard professor Richard Wrangham says that coincided with the development of cooked meat which allowed more calories to be consumed faster which led to a shrinking of gastrointestinal organs and an increase in brain size, essentially trading “guts for gray matter,” as MIT’s Technology Review puts it. The National Science Foundation has given two professors $150,000 to develop video games that can be used to teach students computer science, according to the website Next Generation which focuses on “interactive entertainment.” A study sponsored by a group called Electronic Arts in the U.K. and conducted by FutureLab, a non-profit education ‘advancement’ organization found that video games could be useful in teaching several other subjects as well. California is the fourth largest wine producer in the world, behind France, Italy and Spain with Australia in sixth place.
MURROW AWARD CONGRATULATIONS: To all the stations that won Murrow awards, but a special Mazel Tov to Belo-owned KVUE-TV in Austin, Texas, and friend Frank Volpicella for winning for Overall Excellence in small market television. Ironically my friends at KEYE-TV, also in Austin, won for news series. Another Mazel Tov goes to Media General-owned WSLS-TV in Roanoke and friend Shane Moreland for winning for best newscast. Media General-owned WTVQ-TV in Lexington, Kentucky and friend Mark Pimentel won for spot news coverage. Another irony is that my friends at Gray communications-owned WKYT-TV, also in Lexington, won for continuing coverage. And a final Mazel Tov to Jeff Hoffman and Raycom media-owned WAFF-TV in Huntsville for winning best website.
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
Monday, June 25, 2007
Message From Michael -- June 19, 2007
THE WORLD OF WIDGETS
THE TWO SIDES OF TEXAS TV
THE OTHER SIDE OF TV NEWS
RESOURCES FOR REPORTERS
COCKTAIL CHATTER
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
THE WORLD OF WIDGETS: It sounds like the title of a Disney movie, but there is a “widget universe” and a “widget economy” that reaches 177 Million people worldwide or roughly a fifth of the entire worldwide online audience. Digital measurement firm comScore recently announced a new service to track the use of widgets across the web. NBC-Universal announced it is providing widgets for its news and entertainment programs. And Facebook announced it is going to open its doors to third-party widget developers, which will probably mean an explosion in widget use. So, what the heck is a widget? The last time I dealt with them was in my Accounting-101 course in which I had to balance the books of the make-believe Widget Manufacturing Company. Widgets are basically mini-Web applications, or data files, that can be embedded into a site’s HTML code to provide customized content. Or in the Wiki definition, a widget enables a web user to view on demand “capsuled information from predetermined data sources.” Have I lost you yet? They’re like what we used to call macros, that can link to either advertising, pictures, music or any form of content you want to create and do it in an easy, one-touch button. The largest provider in the world (117 Million users) is Slide.com which helps people create widgets for use on their websites or blogs and link to music or slide shows of pictures. Yahoo offers an array of widget creation tools. You can use them to create downloadable interactive tools such as polls, quizzes, the latest news, advertising messages, or whatever you like on your company website or personal website or your mobile phone. And, folks, you heard it here first – they are the wave of the future. So, go get your own widgets.
THE TWO SIDES OF TEXAS TV NEWS: In East Texas (Tyler, to be specific), CBS affiliate KYTX-TV/ CBS19 has debuted their new “anchor” described in various reports as a “buxom blonde, bikini model, diva and former world wresting show hostess.” It is a 30-day gig, arranged by the Fox network to be part of an upcoming reality show titled “Anchor Woman.” The woman, Lauren Jones, told the local newspaper that she always wanted to be an anchor woman and that newscasting is a lot harder than acting. The director of the Fox show says Ms. Jones “wants to be the next Katie Couric.” Okay, what can I say? Probably best to say nothing. Just let you watch. Here is a report she did on an asthma camp: http://www.cbs19.tv/video/newplayer.php?id=2541. Meanwhile, in West Texas (Odessa, to be specific), the TVGuide channel has filmed a behind-the-scenes look at newsgathering at station KOSA-TV. Titled Making News Texas Style, the show displays “the interworkings and personalities involved in producing a local news broadcast.” Again, there is nothing I can say. Better to let you watch, and you can online at: http://www.tvguide.com/tvshows/making-news-texas/288348.
THE OTHER SIDE OF TV NEWS: It seems from my readings that the last week has seen a rising tide of criticisms of journalism. Coincidental to the Texas experiments, you’ve no doubt heard about the controversy surrounding former CBS anchor Dan Rather’s comments about the CBS Evening News with Katie Couric. The controversy centers on whether Rather’s comments about “tarting” up the news was sexist, but that aside, the Columbia Journalism Review notes that Rather’s comments are “timely” but could also have been made 20 years ago when Rather held the anchor chair. And even though it has received plenty of publicity, I would be remiss if I didn’t mention the Project for Excellence in Journalism study which reported that Fox News provided dramatically less coverage of the Iraq War (6% of daytime coverage) than either CNN (20%) or MSNBC (18%).
A worldwide poll by Harris Interactive released at the World Association of Newspapers conference found that in four out of seven countries surveyed (U.S., France, Italy and Spain) readers expect online news to overtake TV news as their main source of news in five years. Now, that part you may have heard about. What the poll also showed was that one of the reasons cited by the people for not reading a newspaper was that they’re too biased or narrow in their reporting and that news and newspapers need to improve the quality of their journalism and ensure that all views are fairly represented. A group calling itself the Culture and Media Institute says the media is assaulting moral values. As proof, the group whose motto is “advancing truth and virtue in the public square,” says two thirds (63%) of heavy TV users believe government should be primarily responsible for healthcare and two thirds (64%) believe government should be primarily responsible for retirement.
YET ANOTHER SIDE OF NEWS: The more pragmatic ‘other side’ of news is the so-called citizen journalism movement which is impacting traditional news media in several ways. A bill before the House judiciary committee titled the “Free Flow of Information Act of 2007” would provide a federal shield law for journalists. What’s particularly interesting about the bill, according to lawyer Scott Gant writing in The Washington Post, is that the bill adopts a much broader view of journalists, extending it far beyond employees of established news organizations. Gant who wrote a book titled “We’re All Journalists Now” argues that the sponsors of the bill “rightly view journalism as an endeavor that belongs to all of us.” Former Newsweek Interactive editor Todd Oppenheimer reviewing three recent books about the state of journalism in the San Francisco Chronicle raises similar questions about the impact of the so-called ‘digerati’ and the deluge of news and information online. But he has more concerns than compliments, writing “the media urgently needs teams of people who can manage today’s growing information deluge – people who can assess the material’s worth, synthesize it and turn it into something you and I want to read.”
You can read the full article at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/06/17/RVG7FQA8LB1.DTL&feed=rss.books.
RESOURCES FOR REPORTERS: Find out about the ‘blue carrot’ supermarket in Tucson, the ‘weird sandwich’ fundraiser for the Congressional candidate in Albuquerque, or the public access show being taped in Memphis. Website http://outside.in compiles stories from newspaper and television websites along with local bloggers and citizen media groups for 60 different cities around the country. Check out if you’re one of them and add it to your assignment list of checks. Or want to know how your Congressman is voting and why? Website maplight.org puts together campaign contributions AND Congressional voting records to paint an often unflattering picture of which wheels get the congressional grease.
COCKTAIL CHATTER: Website ABC.com was the top visited entertainment website in May, according to Media Metrix and Nielsen/ NetRatings while NYTimes.com was the most visited newspaper site in May. Comedy Central’s animated satire Lil’ Bush which started out as a mobile phone download made its linear TV debut and drew the most viewers for a premiere on the network in three years. Marketers in England are being asked to remove an ad laid out in a field that can be seen by airline passengers flying into Gatwick Airport. The ad promotes an erotic website and features a silhouette of a naked female pole dancer. It’s 100,000 square feet in size.
Finally, on a completely un-related note to anything, congratulations to former CNN Executive Vice President and former Medill University broadcast chairman Jon Petrovich for being named to head the domestic broadcast operations for the Associated Press.
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
THE TWO SIDES OF TEXAS TV
THE OTHER SIDE OF TV NEWS
RESOURCES FOR REPORTERS
COCKTAIL CHATTER
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
THE WORLD OF WIDGETS: It sounds like the title of a Disney movie, but there is a “widget universe” and a “widget economy” that reaches 177 Million people worldwide or roughly a fifth of the entire worldwide online audience. Digital measurement firm comScore recently announced a new service to track the use of widgets across the web. NBC-Universal announced it is providing widgets for its news and entertainment programs. And Facebook announced it is going to open its doors to third-party widget developers, which will probably mean an explosion in widget use. So, what the heck is a widget? The last time I dealt with them was in my Accounting-101 course in which I had to balance the books of the make-believe Widget Manufacturing Company. Widgets are basically mini-Web applications, or data files, that can be embedded into a site’s HTML code to provide customized content. Or in the Wiki definition, a widget enables a web user to view on demand “capsuled information from predetermined data sources.” Have I lost you yet? They’re like what we used to call macros, that can link to either advertising, pictures, music or any form of content you want to create and do it in an easy, one-touch button. The largest provider in the world (117 Million users) is Slide.com which helps people create widgets for use on their websites or blogs and link to music or slide shows of pictures. Yahoo offers an array of widget creation tools. You can use them to create downloadable interactive tools such as polls, quizzes, the latest news, advertising messages, or whatever you like on your company website or personal website or your mobile phone. And, folks, you heard it here first – they are the wave of the future. So, go get your own widgets.
THE TWO SIDES OF TEXAS TV NEWS: In East Texas (Tyler, to be specific), CBS affiliate KYTX-TV/ CBS19 has debuted their new “anchor” described in various reports as a “buxom blonde, bikini model, diva and former world wresting show hostess.” It is a 30-day gig, arranged by the Fox network to be part of an upcoming reality show titled “Anchor Woman.” The woman, Lauren Jones, told the local newspaper that she always wanted to be an anchor woman and that newscasting is a lot harder than acting. The director of the Fox show says Ms. Jones “wants to be the next Katie Couric.” Okay, what can I say? Probably best to say nothing. Just let you watch. Here is a report she did on an asthma camp: http://www.cbs19.tv/video/newplayer.php?id=2541. Meanwhile, in West Texas (Odessa, to be specific), the TVGuide channel has filmed a behind-the-scenes look at newsgathering at station KOSA-TV. Titled Making News Texas Style, the show displays “the interworkings and personalities involved in producing a local news broadcast.” Again, there is nothing I can say. Better to let you watch, and you can online at: http://www.tvguide.com/tvshows/making-news-texas/288348.
THE OTHER SIDE OF TV NEWS: It seems from my readings that the last week has seen a rising tide of criticisms of journalism. Coincidental to the Texas experiments, you’ve no doubt heard about the controversy surrounding former CBS anchor Dan Rather’s comments about the CBS Evening News with Katie Couric. The controversy centers on whether Rather’s comments about “tarting” up the news was sexist, but that aside, the Columbia Journalism Review notes that Rather’s comments are “timely” but could also have been made 20 years ago when Rather held the anchor chair. And even though it has received plenty of publicity, I would be remiss if I didn’t mention the Project for Excellence in Journalism study which reported that Fox News provided dramatically less coverage of the Iraq War (6% of daytime coverage) than either CNN (20%) or MSNBC (18%).
A worldwide poll by Harris Interactive released at the World Association of Newspapers conference found that in four out of seven countries surveyed (U.S., France, Italy and Spain) readers expect online news to overtake TV news as their main source of news in five years. Now, that part you may have heard about. What the poll also showed was that one of the reasons cited by the people for not reading a newspaper was that they’re too biased or narrow in their reporting and that news and newspapers need to improve the quality of their journalism and ensure that all views are fairly represented. A group calling itself the Culture and Media Institute says the media is assaulting moral values. As proof, the group whose motto is “advancing truth and virtue in the public square,” says two thirds (63%) of heavy TV users believe government should be primarily responsible for healthcare and two thirds (64%) believe government should be primarily responsible for retirement.
YET ANOTHER SIDE OF NEWS: The more pragmatic ‘other side’ of news is the so-called citizen journalism movement which is impacting traditional news media in several ways. A bill before the House judiciary committee titled the “Free Flow of Information Act of 2007” would provide a federal shield law for journalists. What’s particularly interesting about the bill, according to lawyer Scott Gant writing in The Washington Post, is that the bill adopts a much broader view of journalists, extending it far beyond employees of established news organizations. Gant who wrote a book titled “We’re All Journalists Now” argues that the sponsors of the bill “rightly view journalism as an endeavor that belongs to all of us.” Former Newsweek Interactive editor Todd Oppenheimer reviewing three recent books about the state of journalism in the San Francisco Chronicle raises similar questions about the impact of the so-called ‘digerati’ and the deluge of news and information online. But he has more concerns than compliments, writing “the media urgently needs teams of people who can manage today’s growing information deluge – people who can assess the material’s worth, synthesize it and turn it into something you and I want to read.”
You can read the full article at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/06/17/RVG7FQA8LB1.DTL&feed=rss.books.
RESOURCES FOR REPORTERS: Find out about the ‘blue carrot’ supermarket in Tucson, the ‘weird sandwich’ fundraiser for the Congressional candidate in Albuquerque, or the public access show being taped in Memphis. Website http://outside.in compiles stories from newspaper and television websites along with local bloggers and citizen media groups for 60 different cities around the country. Check out if you’re one of them and add it to your assignment list of checks. Or want to know how your Congressman is voting and why? Website maplight.org puts together campaign contributions AND Congressional voting records to paint an often unflattering picture of which wheels get the congressional grease.
COCKTAIL CHATTER: Website ABC.com was the top visited entertainment website in May, according to Media Metrix and Nielsen/ NetRatings while NYTimes.com was the most visited newspaper site in May. Comedy Central’s animated satire Lil’ Bush which started out as a mobile phone download made its linear TV debut and drew the most viewers for a premiere on the network in three years. Marketers in England are being asked to remove an ad laid out in a field that can be seen by airline passengers flying into Gatwick Airport. The ad promotes an erotic website and features a silhouette of a naked female pole dancer. It’s 100,000 square feet in size.
Finally, on a completely un-related note to anything, congratulations to former CNN Executive Vice President and former Medill University broadcast chairman Jon Petrovich for being named to head the domestic broadcast operations for the Associated Press.
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
Monday, June 11, 2007
Message From Michael -- June 11, 2007
MOTHRA VERSUS GODZILLA
LET THE COMPETITION CONTINUE
NO LONGER A TWO WAY BATTLE
COCKTAIL CHATTER
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
MOTHRA VERSUS GODZILLA: It’s the classic film, but did you know that Godzilla also went up against King Kong, and creatures known as Biollante, Destoroyah and King Ghidorah? Sometimes Godzilla was the hero and sometimes the anti-hero. Well, there are a similar series of contests going on, with the definition of who the hero is, depending on your point of view. The Toshiba developed HD-DVD and the Sony developed Blu-Ray are battling over who controls the home video sales market with releases of movies on the competing formats. Microsoft meanwhile has launched Silverlight to try and wrest the content creating crown from Adobe’s Flash multimedia authoring program. And, according to research call center Bridge Ratings, old media Radio may be facing a challenge from new media Cell Phones for news and sports info. Although radio remains the primary source by a two to one margin (65% versus 30%), the percentage of consumers picking radio for news and sports info dropped 11% while the percentage picking cell phones increased 11% in the last two years. But the big showdown pits traditional media Television against new media Broadband video. The odds are similar to the radio versus cell phone battle, but again it’s all a matter of perspective.
A study by ‘marketing research consultancy’ Ipsos Insight says even among consumers who ‘actively stream and download video content,’ three quarters of their video consumption (75%) is through a television set with only 11% being viewed on a PC. On the flip side, communications giant Motorola released a study of European broadband users which shows nearly half (45%) are watching some TV on the Internet. And even though the Ipsos report says Americans still are “entranced” by the increasing variety of content options available on their TV’s, a different study by media agency Publicis says the public is becoming blasé about TV’s offerings, in prime time in particular, with more than a third (38%) saying they’re less satisfied than in past years. The Washington Post reported that 2.5 Million fewer people tuned into the major networks this Spring season compared to last year, although the article says it is uncertain whether the change is a result of fewer TV viewers from Web use or time shifting. Nielsen Media Research released a report saying that the ‘decline’ in TV viewing is attributable to DVR usage and that people are actually watching as much as before. Meanwhile, the major networks have all gotten into the business of delivering program on the Internet. The biggest and latest player may be the British Broadcasting Corporation which unveiled a new streaming video player called iPlayer with its entire schedule soon available.
And even among the broadband video operations, there is a Godzilla like battle going on. Joost which was created by the Scandinavian duo who created Skype and Kazaa is quickly becoming the 600-pound gorilla of the broadband TV market, lining up major networks AND major advertisers. But it is not the only one, by any stretch of the imagination. Babelgum uses the same peer-to-peer technology (in which bits of data are shared among multiple computers instead of being housed on just one server) to distribute TV content. Even more unusual is Democracy Player, an open source TV video player created by a group called Participatory Culture Foundation which wants to build a “new, open mass medium of online television… (because) we think it’s a problem that a small number of corporations control mass media.”
As a side note to all this, a public thank you to Raycom CIO Dave Folsom for getting me an invite to beta test the Joost player. I’ll let you know what my admittedly semi-informed testing shows, after I’ve had a chance to kick the wheels for a while.
As a foot note to the declining viewership, reporter Paul Farhi reports in The Washington Post that the number of people watching Washington’s four leading news stations at 5pm and 6pm fell by about 8% overall from May 2006 to May 2007. But, he says if you go back to May of 1997, the change is even dramatic with a decline of 25% in the late news viewing and 37% in the 6pm viewing.
LET THE COMPETITION CONTINUE: As long as we’re on this battle theme, let’s look at some others. In social networking sites, the 16-hundred pound gorilla is, of course, MySpace with nearly 80% of the market, according to research firm Hitwise, while the 6-hundred pound monkey is Facebook with nearly 12% of the market. The chimpanzees of the social networking sites are Bebo and Imeem which get about one percent, focusing on music and video, and Black Planet which also gets about one percent focusing on the African American community. When it comes to virtual worlds, the 800-pound gorilla is Second Life which we’ve talked about in previous MfM’s. But a Swedish software company may soon make a monkey out of them with plans to build a massive virtual universe for China. The company, MindArk, says the Chinese virtual world will be able to handle 7 Million players at the same time and is aiming at 150 million users who are expected to generate $1 Billion in activity every year. For comparison’s sake, Second Life had 1.3 Million people log into the site in March, an increase of 46% since the beginning of the year, with most those visitors from Europe and only a fifth from North America. And in the war of the sexes, males account for nearly two thirds (63%) of the podcasting audience with only a third (37%) being female.
NO LONGER A TWO-WAY BATTLE: Let’s keep the theme going. Traditionally the battle for website NEWS and information users has been between television stations and newspapers. Regular readers of MfM will remember The Media Audit study of websites in 84 cities. A recent article in Editor and Publisher interprets the report as showing the television websites are getting stronger compared to newspaper websites. Four of the top websites are television sites (WRAL, KUSA, KENS and WVTM) and a fifth is a newspaper-TV combo (San Antonio Express News and KENS). The question, according to Bob Jordan, president of International Demographics, is whether TV stations can maintain that momentum. Now, there appears to be an even bigger question. Can TV and newspapers maintain their position against competition from what are called “pure play” media websites or multimedia websites? (That’s the Google, Yahoo, Digg sites of the world.)
That’s an especially critical question for newspapers, which accounted for more than a third (35.9%) of all local online advertising in 2006, according to research firm Borrell Associates. And the Newspaper Association of America noted that ad expenditures for newspaper websites increased 22.3% to $750 Million in the first quarter of this year compared to last year. TV sites get a meager 7.7% of local online advertising. The folks at Borrell Associates though say the spoilers are the pure play sites that are growing at the expense of local online advertising. Traditional media websites have gotten the “easy money” from existing advertisers, but the growth money will come from nontraditional advertisers, says Borrell. And if that doesn’t complicate the issue enough, another report by Hitwise US News and Media Report shows that the share of traffic leaving the News and Media industry for Multimedia sites doubled (196%) from April 2006 to March 2007. Part of the ‘problem’ is that news websites are increasingly dependent on search engines for traffic. What’s even more disturbing is that the folks at Hitwise say the market share of visits to the top 10 News and Media Websites declined 3.8% year to year, “indicating that news consumption is beginning to fragment.” Just to make sure that I don’t leave all my media friends completely depressed, the Online Publishers Association reports that nearly half (44%) of U.S. online video users watch online clips at least weekly and that three-quarters (73%) do so at least once a month. And the most popular genre for this viewing – news and current events.
COCKTAIL CHATTER: More than 71,000 people have registered to be monitored for health problems associated with the dust created in the aftermath of the 9/11 destruction in New York City, according to the New England Journal of Medicine. One in five people say they bring their laptop computer with them when they go on vacation while four out of five bring their cell phones so they can stay in the electronic loop, according to a poll released by AP-Ipsos. Nearly three quarters of Americans (73%) agree with the statement that “the rich get rich and the poor get poorer,” according to a survey by the Pew Research Group. That’s an 8-point increase since 2002. The same group did a different study which found that two-thirds (65%) of Americans believe corporate profits are too high. A survey by MasterCard found that three quarters of consumers in the Middle East have an Internet connection and half pay for their online purchases with credit cards, reflecting a steady gain in online shopping in the region. An elephant’s trunk has 150,000 muscles and a bird can fly a week without stopping, according to Animal Planet’s new show Fooled by Nature and reported in Cynopsis.
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
LET THE COMPETITION CONTINUE
NO LONGER A TWO WAY BATTLE
COCKTAIL CHATTER
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
MOTHRA VERSUS GODZILLA: It’s the classic film, but did you know that Godzilla also went up against King Kong, and creatures known as Biollante, Destoroyah and King Ghidorah? Sometimes Godzilla was the hero and sometimes the anti-hero. Well, there are a similar series of contests going on, with the definition of who the hero is, depending on your point of view. The Toshiba developed HD-DVD and the Sony developed Blu-Ray are battling over who controls the home video sales market with releases of movies on the competing formats. Microsoft meanwhile has launched Silverlight to try and wrest the content creating crown from Adobe’s Flash multimedia authoring program. And, according to research call center Bridge Ratings, old media Radio may be facing a challenge from new media Cell Phones for news and sports info. Although radio remains the primary source by a two to one margin (65% versus 30%), the percentage of consumers picking radio for news and sports info dropped 11% while the percentage picking cell phones increased 11% in the last two years. But the big showdown pits traditional media Television against new media Broadband video. The odds are similar to the radio versus cell phone battle, but again it’s all a matter of perspective.
A study by ‘marketing research consultancy’ Ipsos Insight says even among consumers who ‘actively stream and download video content,’ three quarters of their video consumption (75%) is through a television set with only 11% being viewed on a PC. On the flip side, communications giant Motorola released a study of European broadband users which shows nearly half (45%) are watching some TV on the Internet. And even though the Ipsos report says Americans still are “entranced” by the increasing variety of content options available on their TV’s, a different study by media agency Publicis says the public is becoming blasé about TV’s offerings, in prime time in particular, with more than a third (38%) saying they’re less satisfied than in past years. The Washington Post reported that 2.5 Million fewer people tuned into the major networks this Spring season compared to last year, although the article says it is uncertain whether the change is a result of fewer TV viewers from Web use or time shifting. Nielsen Media Research released a report saying that the ‘decline’ in TV viewing is attributable to DVR usage and that people are actually watching as much as before. Meanwhile, the major networks have all gotten into the business of delivering program on the Internet. The biggest and latest player may be the British Broadcasting Corporation which unveiled a new streaming video player called iPlayer with its entire schedule soon available.
And even among the broadband video operations, there is a Godzilla like battle going on. Joost which was created by the Scandinavian duo who created Skype and Kazaa is quickly becoming the 600-pound gorilla of the broadband TV market, lining up major networks AND major advertisers. But it is not the only one, by any stretch of the imagination. Babelgum uses the same peer-to-peer technology (in which bits of data are shared among multiple computers instead of being housed on just one server) to distribute TV content. Even more unusual is Democracy Player, an open source TV video player created by a group called Participatory Culture Foundation which wants to build a “new, open mass medium of online television… (because) we think it’s a problem that a small number of corporations control mass media.”
As a side note to all this, a public thank you to Raycom CIO Dave Folsom for getting me an invite to beta test the Joost player. I’ll let you know what my admittedly semi-informed testing shows, after I’ve had a chance to kick the wheels for a while.
As a foot note to the declining viewership, reporter Paul Farhi reports in The Washington Post that the number of people watching Washington’s four leading news stations at 5pm and 6pm fell by about 8% overall from May 2006 to May 2007. But, he says if you go back to May of 1997, the change is even dramatic with a decline of 25% in the late news viewing and 37% in the 6pm viewing.
LET THE COMPETITION CONTINUE: As long as we’re on this battle theme, let’s look at some others. In social networking sites, the 16-hundred pound gorilla is, of course, MySpace with nearly 80% of the market, according to research firm Hitwise, while the 6-hundred pound monkey is Facebook with nearly 12% of the market. The chimpanzees of the social networking sites are Bebo and Imeem which get about one percent, focusing on music and video, and Black Planet which also gets about one percent focusing on the African American community. When it comes to virtual worlds, the 800-pound gorilla is Second Life which we’ve talked about in previous MfM’s. But a Swedish software company may soon make a monkey out of them with plans to build a massive virtual universe for China. The company, MindArk, says the Chinese virtual world will be able to handle 7 Million players at the same time and is aiming at 150 million users who are expected to generate $1 Billion in activity every year. For comparison’s sake, Second Life had 1.3 Million people log into the site in March, an increase of 46% since the beginning of the year, with most those visitors from Europe and only a fifth from North America. And in the war of the sexes, males account for nearly two thirds (63%) of the podcasting audience with only a third (37%) being female.
NO LONGER A TWO-WAY BATTLE: Let’s keep the theme going. Traditionally the battle for website NEWS and information users has been between television stations and newspapers. Regular readers of MfM will remember The Media Audit study of websites in 84 cities. A recent article in Editor and Publisher interprets the report as showing the television websites are getting stronger compared to newspaper websites. Four of the top websites are television sites (WRAL, KUSA, KENS and WVTM) and a fifth is a newspaper-TV combo (San Antonio Express News and KENS). The question, according to Bob Jordan, president of International Demographics, is whether TV stations can maintain that momentum. Now, there appears to be an even bigger question. Can TV and newspapers maintain their position against competition from what are called “pure play” media websites or multimedia websites? (That’s the Google, Yahoo, Digg sites of the world.)
That’s an especially critical question for newspapers, which accounted for more than a third (35.9%) of all local online advertising in 2006, according to research firm Borrell Associates. And the Newspaper Association of America noted that ad expenditures for newspaper websites increased 22.3% to $750 Million in the first quarter of this year compared to last year. TV sites get a meager 7.7% of local online advertising. The folks at Borrell Associates though say the spoilers are the pure play sites that are growing at the expense of local online advertising. Traditional media websites have gotten the “easy money” from existing advertisers, but the growth money will come from nontraditional advertisers, says Borrell. And if that doesn’t complicate the issue enough, another report by Hitwise US News and Media Report shows that the share of traffic leaving the News and Media industry for Multimedia sites doubled (196%) from April 2006 to March 2007. Part of the ‘problem’ is that news websites are increasingly dependent on search engines for traffic. What’s even more disturbing is that the folks at Hitwise say the market share of visits to the top 10 News and Media Websites declined 3.8% year to year, “indicating that news consumption is beginning to fragment.” Just to make sure that I don’t leave all my media friends completely depressed, the Online Publishers Association reports that nearly half (44%) of U.S. online video users watch online clips at least weekly and that three-quarters (73%) do so at least once a month. And the most popular genre for this viewing – news and current events.
COCKTAIL CHATTER: More than 71,000 people have registered to be monitored for health problems associated with the dust created in the aftermath of the 9/11 destruction in New York City, according to the New England Journal of Medicine. One in five people say they bring their laptop computer with them when they go on vacation while four out of five bring their cell phones so they can stay in the electronic loop, according to a poll released by AP-Ipsos. Nearly three quarters of Americans (73%) agree with the statement that “the rich get rich and the poor get poorer,” according to a survey by the Pew Research Group. That’s an 8-point increase since 2002. The same group did a different study which found that two-thirds (65%) of Americans believe corporate profits are too high. A survey by MasterCard found that three quarters of consumers in the Middle East have an Internet connection and half pay for their online purchases with credit cards, reflecting a steady gain in online shopping in the region. An elephant’s trunk has 150,000 muscles and a bird can fly a week without stopping, according to Animal Planet’s new show Fooled by Nature and reported in Cynopsis.
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
Message from Michael -- May 28, 2007
CHINA TO OWN AMERICAN MEDIA
THE TRILLION DOLLAR MEDIA MOVE
TV WATCHING INCOME
LIVING IN SPAMALOT
COCKTAIL CHATTER
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
CHINA TO OWN AMERICAN MEDIA: No cute headline this time. Just a statement. The Chinese state investment agency has made a $4 Billion investment in one of the top private equity firms in America – The Blackstone Group. You may have heard about that. However, what I haven’t heard reported is the fact that The Blackstone Group owns or has investments in many of the leading media companies in America. Everything from VNU and Nielsen to wireless and broadband providers, cable operators as well as Freedom Communications which owns nine television stations and more than two dozen daily newspapers. And recently Blackstone formed a new group with Cumulus Media called Cumulus Media Partners which owns 345 stations in 67 markets. Of course, the Chinese investment is in the form of “non-voting common units.” (I’m sure some of the smarter MfM readers know exactly what that means. I confess I don’t.) And because the Chinese investment is only 10% of Blackstone, that keeps it off the “radar screen” (as The Washington Post put it) of government scrutiny. Oh, and that $4 Billion. Chump Change. China has $1.2 TRILLION in “foreign exchange reserves.”
Now, I’m not trying to develop some kind of conspiracy theory, but the other partners in the Cumulus group are Thomas H. Lee Partners and Bain Capital Partners. These are the same two private equity groups that are “merging” with broadcast behemoth Clear Channel, owner of more than a thousand radio stations. Which brings me back to what started me on this thread – private equity firms buying media groups. In addition to the radio ‘merger,’ for example, Clear Channel has reached agreement to sell its 56 television stations to private equity firm Providence Equity Partners for $1.2 Billion. And that’s just the beginning. You heard about The New York Times selling its nine TV stations to private equity firm Oak Hill Capital Partners for $575 Million. And US Spanish language media network Univision is being acquired by a private equity consortium of Madison Deaborn Partners, Texas Pacific Group, Saban Capital Group AND Providence Equity Partners (yes, the same one that ‘acquired’ Clear Channel’s TV group) AND Thomas H Lee Partners (yes, the same one involved in the Cumulus purchase). And the private equity firms' interest in ‘old’ media isn’t limited to television either. Even ‘old-fashioned’ Reader’s Digest has ‘agreed to be taken private’ by a private equity consortium led by Ripplewood Holdings. So you’ve heard about those. But how about ProSiebenSat, the largest private German television broadcaster, being acquired for $7.6 Billion by the European private equity firm of Permira and the American private equity firm of Kohlberg Kravis Roberts. (I was working for Miami TV station WTVJ when KKR bought it.) Or how about European media giant Bertelsmann selling part of its assets (Sony Music maybe) to private equity firms and then teaming up with private equity firms to raise more money.
So, if declining audiences, fragmenting audiences, the Internet and information overload, along with multiple sources over multiple platforms are raising economic concerns for traditional media… why are these savvy financial experts buying them? The other point being raised by many observers is what does this mean to the journalism of the future. I know what you’re saying -- I’m getting off my fact-based approach and straying into opinion, but I’m not. I’m just pointing out questions being raised by others in the many publications I read – from The New York Times, The Financial Times, The International Herald Tribune, The Economist and many others. Lastly, as a footnote, there have been several reports speculating that private equity firms may bid on Nexstar Broadcasting and Lin Broadcasting, both of whom were put on the auction block.
THE TRILLION DOLLAR MEDIA MOVE: Part of the reason the private equity firms are snatching up traditional media can be found in a report by media investment banker Veronis Suhler Stevenson which predicts that media spending will surpass $1.236 Trillion by 2010. The report says “growth will see-saw in coming years as traditional media outlets transition business models.” Even more interesting (to me, at least) is the report’s statement that consumers spent 3,543 hours per person per in 2005 but that by 2010, it will grow to 3,620 per person annually – meaning 10 hours a day. The report says the fastest growth in Internet and mobile services is actually coming from the ‘traditional’ media companies. The problem is that online platforms don’t generate the spending that traditional media generates, at least in the short term. Consumers spend less time with online and mobile media than they do with traditional media. For example, they read a few news stories on the Web but entire sections of a printed newspaper. Complicating the financial picture is the fact that consumers are accustomed to getting content for free on the Web and are reluctant to pay. Add to that, the report says, user generated content (such as blogs and podcasts) which are also free and the decline of many media formats such as VHS, PC games and CD’s.
As a footnote to the hours spent with media, another report by Media-Screen which bills itself as a market research and consulting firm for “the digital lifestyle” says BROADBAND online users spend nearly half of their spare time (48%) online on a typical weekday. According to the study, that amounts to an hour and 40 minutes daily. Nearly half (49%) of the broadband population (45 Million people) regularly visit sites decided to a personal hobby or interest. And the authors say sending e-mail and visiting web sites for personal reasons are more popular than television.
TV WATCHING INCOME: Only one program, Desperate Housewives, ranked in the top 20 in terms of ‘upscale’ income viewers in every part of the U.S. MAGNA Global, one of the world’s largest media services firm, did an analysis of Nielsen data to find out which programs drew the highest income viewers and in which areas of the country – Northeast, Southeast, Southwest, East Central, West Central and Pacific. Only Desperate Housewives scored in all six Nielsen regions. The other top 10 programs in terms of ‘upscale’ viewers was The Office (NBC), Andy Barker, P.I. (NBC), Grey’s Anatomy (ABC), Two and a Half Men (CBS), Sixty Minutes (CBS), Boston Legal (ABC) Friday Night Lights (NBC) and What About Brian (ABC). On the cable side of the equation, the Magna analysis showed the top five cable networks are Fox News, HGTV, NFL Network, ESPN and ESPN2.
The highest income prime time viewers are in the Northeast where the ‘average medium income’ is $68,000 and lowest income prime time viewers are in the Southwest where the ‘average medium income’ is $48,000. Steve Sternberg, Magna’s Executive Vice President for Audience Analysis, says the analysis isn’t completely on target because Nielsen only reports total household income, not individual income. To put those figures into some kind of perspective, I looked up national figures. According to the Federal Reserve’s survey of consumer finance, the average family income in 2004 (the last time surveyed) was $70,700. And, according to the U.S. Census Bureau, the ‘real median income’ for an American household in 2005 was $46,326.
LIVING IN SPAMALOT: Despite an increase in Spam, American Internet users are less bothered about it, according to a study by the Pew Internet and American Life Project. In 2003, when Pew first asked people about the affect of spam on their Internet life, one in four (25%) said spam was a big problem. In the latest survey just released, that number had dropped to less than one in five (18%). Part of the reason for that, according to the authors, may be that the amount of pornographic spam (which people find to be the most offensive) has dropped. Three years ago, nearly 3 out of 4 people (71%) reported receiving porn spam. In the last survey the number had dropped to half (52%). However, phishing spam (email designed to trick people into revealing financial information) is the same with one in three (36%) receiving this kind of spam. As a side note to this, I found it interesting that the survey showed more email users (88%) have a personal email account compared to those with a work account (49%).
COCKTAIL CHATTER: The big story in Europe is the disappearance of a three-year-old British girl named Madeline McCann while on vacation with her family in Portugal. To give you an idea of the extent of coverage, do a search for her name and you get 127,000-plus hits. Nearly a quarter of American adults (23%) say they mostly (14%) or completely (9%) agree that American lives are worth more than the lives of people in other countries, according to the most recent Pew Social Values Survey. A :30-second spot in the American Idol finale went for $1.3 Million – the same as last year, despite some ratings attrition. By way of comparison, a :30-second spot in the SuperBowl went for twice that -- $2.6 Million. But, of course, that’s a once a year event. The latest ‘sensation’ in online video is Justin.tv which is a 24/7 “lifecast” of some guy with a camera on his head. Literally, nothing happens for hours on end. But it has become so popular, that backers are offering to help other people start up their own “lifecast.” And despite all the focus on digital entertainment, the latest ‘sensation’ among male ‘tweens (boys aged 10 to 12) is The Dangerous Book for Boys which the Wall Street Journal calls a “retro-style adventure manual.”
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
THE TRILLION DOLLAR MEDIA MOVE
TV WATCHING INCOME
LIVING IN SPAMALOT
COCKTAIL CHATTER
We encourage people to pass on copies of Message from Michael. But if you would like to get your own copy, you can subscribe by sending an e-mail to newsconsultant@aol.com with the word “subscribe-MM” in the subject line.
CHINA TO OWN AMERICAN MEDIA: No cute headline this time. Just a statement. The Chinese state investment agency has made a $4 Billion investment in one of the top private equity firms in America – The Blackstone Group. You may have heard about that. However, what I haven’t heard reported is the fact that The Blackstone Group owns or has investments in many of the leading media companies in America. Everything from VNU and Nielsen to wireless and broadband providers, cable operators as well as Freedom Communications which owns nine television stations and more than two dozen daily newspapers. And recently Blackstone formed a new group with Cumulus Media called Cumulus Media Partners which owns 345 stations in 67 markets. Of course, the Chinese investment is in the form of “non-voting common units.” (I’m sure some of the smarter MfM readers know exactly what that means. I confess I don’t.) And because the Chinese investment is only 10% of Blackstone, that keeps it off the “radar screen” (as The Washington Post put it) of government scrutiny. Oh, and that $4 Billion. Chump Change. China has $1.2 TRILLION in “foreign exchange reserves.”
Now, I’m not trying to develop some kind of conspiracy theory, but the other partners in the Cumulus group are Thomas H. Lee Partners and Bain Capital Partners. These are the same two private equity groups that are “merging” with broadcast behemoth Clear Channel, owner of more than a thousand radio stations. Which brings me back to what started me on this thread – private equity firms buying media groups. In addition to the radio ‘merger,’ for example, Clear Channel has reached agreement to sell its 56 television stations to private equity firm Providence Equity Partners for $1.2 Billion. And that’s just the beginning. You heard about The New York Times selling its nine TV stations to private equity firm Oak Hill Capital Partners for $575 Million. And US Spanish language media network Univision is being acquired by a private equity consortium of Madison Deaborn Partners, Texas Pacific Group, Saban Capital Group AND Providence Equity Partners (yes, the same one that ‘acquired’ Clear Channel’s TV group) AND Thomas H Lee Partners (yes, the same one involved in the Cumulus purchase). And the private equity firms' interest in ‘old’ media isn’t limited to television either. Even ‘old-fashioned’ Reader’s Digest has ‘agreed to be taken private’ by a private equity consortium led by Ripplewood Holdings. So you’ve heard about those. But how about ProSiebenSat, the largest private German television broadcaster, being acquired for $7.6 Billion by the European private equity firm of Permira and the American private equity firm of Kohlberg Kravis Roberts. (I was working for Miami TV station WTVJ when KKR bought it.) Or how about European media giant Bertelsmann selling part of its assets (Sony Music maybe) to private equity firms and then teaming up with private equity firms to raise more money.
So, if declining audiences, fragmenting audiences, the Internet and information overload, along with multiple sources over multiple platforms are raising economic concerns for traditional media… why are these savvy financial experts buying them? The other point being raised by many observers is what does this mean to the journalism of the future. I know what you’re saying -- I’m getting off my fact-based approach and straying into opinion, but I’m not. I’m just pointing out questions being raised by others in the many publications I read – from The New York Times, The Financial Times, The International Herald Tribune, The Economist and many others. Lastly, as a footnote, there have been several reports speculating that private equity firms may bid on Nexstar Broadcasting and Lin Broadcasting, both of whom were put on the auction block.
THE TRILLION DOLLAR MEDIA MOVE: Part of the reason the private equity firms are snatching up traditional media can be found in a report by media investment banker Veronis Suhler Stevenson which predicts that media spending will surpass $1.236 Trillion by 2010. The report says “growth will see-saw in coming years as traditional media outlets transition business models.” Even more interesting (to me, at least) is the report’s statement that consumers spent 3,543 hours per person per in 2005 but that by 2010, it will grow to 3,620 per person annually – meaning 10 hours a day. The report says the fastest growth in Internet and mobile services is actually coming from the ‘traditional’ media companies. The problem is that online platforms don’t generate the spending that traditional media generates, at least in the short term. Consumers spend less time with online and mobile media than they do with traditional media. For example, they read a few news stories on the Web but entire sections of a printed newspaper. Complicating the financial picture is the fact that consumers are accustomed to getting content for free on the Web and are reluctant to pay. Add to that, the report says, user generated content (such as blogs and podcasts) which are also free and the decline of many media formats such as VHS, PC games and CD’s.
As a footnote to the hours spent with media, another report by Media-Screen which bills itself as a market research and consulting firm for “the digital lifestyle” says BROADBAND online users spend nearly half of their spare time (48%) online on a typical weekday. According to the study, that amounts to an hour and 40 minutes daily. Nearly half (49%) of the broadband population (45 Million people) regularly visit sites decided to a personal hobby or interest. And the authors say sending e-mail and visiting web sites for personal reasons are more popular than television.
TV WATCHING INCOME: Only one program, Desperate Housewives, ranked in the top 20 in terms of ‘upscale’ income viewers in every part of the U.S. MAGNA Global, one of the world’s largest media services firm, did an analysis of Nielsen data to find out which programs drew the highest income viewers and in which areas of the country – Northeast, Southeast, Southwest, East Central, West Central and Pacific. Only Desperate Housewives scored in all six Nielsen regions. The other top 10 programs in terms of ‘upscale’ viewers was The Office (NBC), Andy Barker, P.I. (NBC), Grey’s Anatomy (ABC), Two and a Half Men (CBS), Sixty Minutes (CBS), Boston Legal (ABC) Friday Night Lights (NBC) and What About Brian (ABC). On the cable side of the equation, the Magna analysis showed the top five cable networks are Fox News, HGTV, NFL Network, ESPN and ESPN2.
The highest income prime time viewers are in the Northeast where the ‘average medium income’ is $68,000 and lowest income prime time viewers are in the Southwest where the ‘average medium income’ is $48,000. Steve Sternberg, Magna’s Executive Vice President for Audience Analysis, says the analysis isn’t completely on target because Nielsen only reports total household income, not individual income. To put those figures into some kind of perspective, I looked up national figures. According to the Federal Reserve’s survey of consumer finance, the average family income in 2004 (the last time surveyed) was $70,700. And, according to the U.S. Census Bureau, the ‘real median income’ for an American household in 2005 was $46,326.
LIVING IN SPAMALOT: Despite an increase in Spam, American Internet users are less bothered about it, according to a study by the Pew Internet and American Life Project. In 2003, when Pew first asked people about the affect of spam on their Internet life, one in four (25%) said spam was a big problem. In the latest survey just released, that number had dropped to less than one in five (18%). Part of the reason for that, according to the authors, may be that the amount of pornographic spam (which people find to be the most offensive) has dropped. Three years ago, nearly 3 out of 4 people (71%) reported receiving porn spam. In the last survey the number had dropped to half (52%). However, phishing spam (email designed to trick people into revealing financial information) is the same with one in three (36%) receiving this kind of spam. As a side note to this, I found it interesting that the survey showed more email users (88%) have a personal email account compared to those with a work account (49%).
COCKTAIL CHATTER: The big story in Europe is the disappearance of a three-year-old British girl named Madeline McCann while on vacation with her family in Portugal. To give you an idea of the extent of coverage, do a search for her name and you get 127,000-plus hits. Nearly a quarter of American adults (23%) say they mostly (14%) or completely (9%) agree that American lives are worth more than the lives of people in other countries, according to the most recent Pew Social Values Survey. A :30-second spot in the American Idol finale went for $1.3 Million – the same as last year, despite some ratings attrition. By way of comparison, a :30-second spot in the SuperBowl went for twice that -- $2.6 Million. But, of course, that’s a once a year event. The latest ‘sensation’ in online video is Justin.tv which is a 24/7 “lifecast” of some guy with a camera on his head. Literally, nothing happens for hours on end. But it has become so popular, that backers are offering to help other people start up their own “lifecast.” And despite all the focus on digital entertainment, the latest ‘sensation’ among male ‘tweens (boys aged 10 to 12) is The Dangerous Book for Boys which the Wall Street Journal calls a “retro-style adventure manual.”
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 are available at the website, media-consultant.blogspot.com. You can reach me directly at Michael@MediaConsultant.tv.
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