Showing posts with label interactive tv. Show all posts
Showing posts with label interactive tv. Show all posts

Wednesday, October 24, 2007

Message From Michael -- October 15, 2007

THE INTERNET AND TV

OPPOSITE ENDS OF THE SPECTRUM

COCKTAIL CHATTER – PUZZLES AND BEAUTY AND GAMING

THE AWARD WINNERS DINNER

NOTEWORTHY EVENTS TODAY


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THE INTERNET AND TV: A study by networking giant Cisco Systems (the company that makes the routers used to connect computers) predicts that monthly Internet traffic in North America will increase 264% by 2011 to more than 7.8 Million Terabytes – again, MONTHLY. Just to remind you, a terabyte is a Million Megabytes or a Thousand Gigabytes. Much of that, of course, is coming in the form of video. Okay, I’m still wrestling with the fact that YouTube alone accounts for as much bandwidth today as the entire Internet did in 2000, according to Federal Communications Commissioner Robert McDowell. That was from a Wall Street Journal commentary. Now, another article from WSJ quotes Larry Roberts, the original creator of ARPAnet, the precursor to the Internet, as saying the Internet is ‘last-generation technology.’ In what may be one of the great quotes of the day, he says, “the Internet wasn’t designed for television… I know because I designed it.” He and former Cisco chief technology officer Len Bosack are trying to re-design the infrastructure of the Internet to cope with that 264% increase. One-time pirating website BitTorrent is doing the same thing, designing what it calls DNA (Delivery Network Accelerator) for your PC.

And they better work, because several recent studies indicate that, as one study put it, online video has gone mainstream. Microsoft’s digital agency Avenue A/ Razorfish reports that two-thirds of what it calls ‘connected customers’ (meaning people with broadband access) say they regularly watch video on YouTube and that nearly all of them (95%) report that they have watched an online video in the past three months. Further indication of the growing interest in online video comes from a study by Frank N. Magid and Associates which found that only a quarter (23%) of Millennial would rather watch video on TV instead of the Internet. More than a third (36%) of the 18-24 crowd say that the PC is “competing” for their entertainment time. Meanwhile Wayne Karrfalt reports on TVNewsday.com that most of the major TV groups now have a C-level executive dedicated to developing and monetizing online activities even though online activities only represent about 5% of the revenue pie for them.

And they’re not alone; BrightCove announced that it has launched a new service providing what it calls “broadcast quality online TV shows” using the BitTorrent technology mentioned above. Joost, as you will recall from last week’s MfM, has moved out of the beta stage and gone public. Vuze ‘Open Entertainment Platform’ which also promises high resolution video has opened up its platform to independent producers. Add to the expanding list Comcast’s Ziddio.com which focuses on consumer generated content. And, reportedly, today newly minted Nobel Peace Prize winner Al Gore is supposed to announce a major development to the CurrentTV site. Read Cynopsis and you will seek a weekly, but often daily, listing of new television series being released on either iTunes or UnBox.

And for good reason. The Interactive Advertising Bureau reports that Internet advertising in the second quarter of this year passed the $5 Billion mark for the first time. That’s the highest quarterly revenue reporting since 1996 and a 26% increase over the previous year. The first half of 2007 is more than $10 Billion with the yearly revenue expected to hit $21 Billion. The report tracks Internet advertising revenue starting in 1999 when the total for the year was $4.6 Billion. It nearly doubled the next year, 2000, but then declined for several years before starting its phenomenal growth in 2004. On the flip side (there’s always a flip side), a survey by Nielsen of 26,000 consumers in 47 markets worldwide found that advertising in old media scored much higher than advertising in new media. Nearly two thirds (63%) say they trust newspapers ads and more than half (56%) say they trust TV spots and magazine placements. But only a quarter (26%) trust banner ads and only a third (34%) trust search ads.

Indicative of the power of peer recommendations, the same study found the most trusted form of ‘advertising’ came from other consumer recommendations with more than three-quarters (78%) expressing confidence. And a warning to marketers everywhere, the Nielsen survey noted that some word-of-mouth experts report that bad experiences outnumber good ones by as many as five to one.

Just as an only semi-related side note, Raymond Kurzwell, the author of The Age of Intelligent Machines and The Singularity is Near: When Humans Transcend Biology, estimates that a human being’s functional memory is about 1.25 Terabytes.

OPPOSITE ENDS OF THE SPECTRUM: Two recent reports contain some interesting observations about Millennials and Baby Boomers. News Director Stacy Woefel of the University of Missouri’s KOMU-TV station writes about Millennials in the recent Radio Television News Directors’ Association magazine, The Communicator. In part, the story says Millennials want financial security, strong mentors and a feeling of being someone special. There is also a sense of entitlement along with unrealistic expectations. On the other end, a report by Mediamark Research Inc., found Baby Boomers are optimistic with four in ten (39%) saying they think their ‘households” will be better off financially a year from now and 90% of them saying they ‘themselves’ will be better off a year from now. More than half of Baby Boomers (55%) reported vote in an election, with a third (31%) undertaking a home remodeling project and less than half (41%) playing the lottery.

COCKTAIL CHATTER: U.S. consumers have lost more than $7 Billion to viruses, spyware and phishing, according to a survey by Consumer Reports. A group of M-I-T grads have designed a folding-wing plane, the Terrafugia, that they say will eventually be the prototype of a hybrid car-plane that would make George Jetson jealous. Makers of a puzzle called Eternity II, being sold at Toys R Us for $49.95, are offering $2 Million to someone who solves the puzzle which has 256 geometric shapes (sort of a successor to Rubic’s Cube) by December 31, 2007. And a study by researchers at the University of Toronto found that the “spatial gap” (the ability to process visual information from a wide variety of sources) between men and women can be closed if women spent time playing video games. According to Virtual Worlds Management (Yes, strange as it may seem, there is an organization aimed at managing virtual worlds), venture capital, technology and media firms have invested more than $1 Billion in 35 virtual worlds.

Okay, this one isn’t cocktail chatter, although it is, but it isn’t. Anyway, MfM readers who remember the Dove “Evolution” spot will want to see the newest one – Onslaught, which is a one-minute visual warning to mothers to “talk to your daughter before the beauty industry does.” You can find it on YouTube or the official website, campaignforrealbeauty.com.

THE AWARD WINNERS DINNER: It’s tonight in New York, when the national Edward R. Murrow award winners will be honored. I just wanted to add my own Mazel Tov to the friends and winners at WKYT/ Lexington (Continuing Coverage); KEYE/ Austin (News Series); WSLS/ Roanoke (Newscast); WTVQ/ Lexington (Spot News); WAFF/ Huntsville (Website); and news director Frank Volpicella at KVUE/ Austin which won for Overall Excellence.

ALSO OF NOTE TODAY: Media Mogul Rupert Murdoch launches the company’s new business channel today. And today is blog action day when bloggers around the world are supposed to join in solidarity for the environment. You can visit the website blogactionday.com.

SUBSCRIPTIONS: If you wish to stop receiving this newsletter, e-mail Michael@MediaConsultant.tv 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 my website MediaConsultant.tv.

Monday, May 07, 2007

Message From Michael --May 7, 2007

THE NEVER ENDING FRIENDING

THE OSCARS OF THE INTERNET

COMPUTERS VERSUS TELEVISION

MEGALITHIC MONSTERS

TRENDS OF NOTE – CD’S AND FARSI

COCKTAIL CHATTER -- BEER


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 NEVER ENDING FRIENDING: More than 70% of Americans aged 15 to 34 actively use online social networks, according to a study released at the News Corp’s Fox Interactive Media conference. (BTW, the conference is called The Never Ending Friending.) Now, we’ve dealt with the Social Networking phenomenon in previous MfM’s but the phenomenon, as this study shows, is growing at a phenomenal rate. You know about social networking sites built around music and user generated videos, but how about charitable causes, special interests, and your pet. There is a social networking site called dogster.com, but now a company called Snif (Social Networking In Fur) Labs has created special tags that dogs wear on their collar and which transmits and receives information from other dogs in the SNIF network that their owners can share online when they get home. The point is that social networking is become all pervasive. Radio giant Clear Channel is getting into the social networking business with a dozen station-branded social networks acting as a mini-MySpace for their local community. Technology company Onesite.com has developed the protocol. Television station WCAU-TV has launched DigPhilly.com, a social networking site featuring current events, nightlife, music, restaurant reviews for the Philadelphia area. Lost Remote’s Cory Bergman calls it “a great example of a TV station branching out into new audiences and local niches.”

A semi-related survey by Forrester Research of mainstream marketing agencies found that more and more are turning to social media to get their message across. Another study, this time by Jupiter Research, found that small businesses are turning to social media as a way to market. I won’t say anything about the fact that I recommended this to media operations in a previous MfM.

Anyway, back to the original study…The research showed that U.S. social networkers chose interacting on such sites as their favorite activity, whether online or offline. That was ahead of television viewing but on par with cell phone usage. Of those, more than two-thirds (69%) say they use social networks to connect with people who are already their friends and nearly half (41%) say they use it to connect with family members. And before you dismiss them as people without a life, nearly half (48%) say they are “having more fun in life in general” with more than half (52%) saying they feel more in tune with what’s happening socially in their lives due to social networking sites because (57%) said they’ve found more people with similar interests.

Back to some more unusual social networking examples… website PathConnect which labels itself as “social networking for the ambitious lifestyle” is backing websites with a social agenda, such as MTDN.com (Make The Difference Network) founded in part by Jessica Biel who starts in the WB’s 7th Heaven. Check out ElHood.com which is described in an Associated Press article as a sort of bi-lingual MySpace with a focus on Latin music. It is the latest example of social networking sites linking Hispanic youth across the U.S., Latin America and Spain. Lastly, my favorite is twitter.com which makes no bones about the fact that it is a cross between a social networking site and instant messaging program which focuses simply on what people are “doing right now.” And that ‘doing right now’ can be anything from listening to a favorite song, going to softball practice, to visiting the local Starbucks. Yes, it sounds inane, but it has become such a phenomenon (I’m sorry… there I go, using that word again) that people talk about “twittering.”

THE OSCARS OF THE INTERNET: Most often called The Webby Awards. Forget about David Bowie getting the Lifetime Achievement Award. Forget about eBay getting the other Lifetime Achievement Award. Forget about Steve Chen and Chad Hurley getting the Webby Person of the Year award. Instead, learn about Jonathon Yuen who won awards for animation, for best visual design and for best personal website (you really should visit his site -- jonathonyuen.com). Or how about the MGM Grand in Las Vegas for its incredible site which won for corporate communications. Or how about the unusual Clearification.com which uses webisodes and interactivity with a different approach to win the IT Hardware/Software category. Or how about website thatguy.com which won in the Health category with its interactive website about guys who drink too much. In short, if you want to see the future of broadband technology and creative gestalt, visit http://www.webbyawards.com.

COMPUTERS VERSUS TELEVISION: Or, more accurately, computers AND television. We’ve talked about broadband video provider Joost in previous MfM’s. It’s now inked deals with, it seems, half the universe – content providers like Sony, Turner Broadcasting Systems, the National Hockey League, CBS, Sports Illustrated and advertisers like Procter & Gamble, Coca-Cola, Nike, General Motors and Visa. Since several people have asked me about video providers besides Joost, here’s a partial list of sites that I have found: Brightcove, Splashcast, Blip.tv, Blinkx.tv, Revver, Flickr (which also won several Webby awards), Metacafe, MeTV, Nogoodtv, along with Microsoft’s new cross platform media player Silverlight, as well as Jumpcut which provides online editing tools and which is sponsoring an unusual online video contest called Filmyourissue.com, awarding prizes for short films.

MEGALITHIC MONSTERS: By now, you’ve no doubt heard about Rupert Murdoch’s bid for Dow Jones, publishers of the Wall Street Journal. I would like to claim prescience, considering my previous MfM. I think his desire to own a name brand and his ‘love’ – definitely in quotes, of newspapers played into it, but analysts say the reality is he is just working on synergies – a name brand Wall Street Journal to launch his television business channel, and a brand with a heavy investment in digital. The WSJ.com site is one of only two newspaper websites able to sustain a subscription-based, money-making online presence. The other is the Financial Times of London. Overlooked in the hoopla is the bid by Canadian newspaper giant Thomson for financial and news reporting agency Reuters and the take-over or partnership between Microsoft and Yahoo – all deals with enormous implications. A very interesting website that provides insight into these deals is newsvisual.com, which shows, graphically, the 6-degrees of connectivity (not separation) between major corporations and major players.

NEWS OF NOTE: If you listen to music on the Internet, (and, according to reports, 29 Million Americans do) here is a phrase you will be hearing more about – Net Radio Royalties. The Copyright Royalty Board has proposed a “per performance” fee for each time a song is webcast, payable to a subsidiary of the Recording Industry Association of America. Up to now, the board had given a special rate to small webcasters and public radio outlets streaming on the Internet. The Rocky Mountain News argues that the new rate structure would force many of the more “vibrant” entities to go dark because their royalty costs would actually exceed their revenue. The board has delayed imposition of the fees until June, after the public outcry.

TRENDS OF NOTE: The proportion of Americans who have purchased a CD in the past six months has dropped 15% since 2002, according to a study by Ipsos/ Tempo. The study indicates that Americans will still purchase CD’s by their favorite artists, but when it comes to sampling new and unfamiliar music, they’ll go the download route instead of buying CD’s.

The Farsi language has joined the list of top 10 languages being used by bloggers, behind the surprising (to me, at least) #1 – Japanese – which accounts for 37% of all blogs, followed by English (36%), Chinese (8%), Italian and Spanish (at 3% each), Russian, French and Portuguese (2%) and finally German and Farsi (1%), according to blog researcher Technorati. As a side note, the company says new blogs are being created at the rate of 1.4 new blogs per second, adding up to more than 70 Million blogs being tracked by the firm.

COCKTAIL CHATTER: Sweeps killer American Idol set a record for call-ins with more than 70 Million toll-free and AT&T sms votes during its charity telecasts. An average of 6.1% of Americans drink beer on a frequent basis – meaning six or more times in a two-week period, according to The Media Audit which regularly surveys 87 U.S. markets. The biggest beer drinkers are in Melbourne, Florida where 10.2% of adults consumer beer on a frequent basis, followed by Wilmington, North Carolina with 10.1%. And even though it’s the home of Anheuser Busch, St. Louis came in 9th with 8.6% just ahead of Columbia, South Carolina with 8.4%. Okay, I promise, one last Warren Buffett mention: two books he recommends are Poor Charlie’s Almanack written by Buffett business partner Charlie Munger and Where are the Customers’ Yachts written by Fred Schwed… in 1940!

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.