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Tuesday, November 24, 2009

Media Bites-November 24 2009

Murdoch, Microsoft and Money


This is quite an interesting turn of events from earlier press stating that News Corp intends to charge for content. That statement has encouraged other newspapers, including the Daily News and the Boston Globe to put some of their content behind a pay wall. While I don't agree with that strategy, I can certainly understand the need to explore that revenue model.

The latest details emerging make me scratch my shaved head and wonder where is all of this going.

First, News Corp is bent on having indexed articles removed from Google listings. According to a recent article in mediabuyerplanner.com (http://www.mediabuyerplanner.com/), Murdoch states that " free content devalues the work and that indexing on Google News is stealing."

Now lets add Microsoft to the mix-word is that Bing is considering paying publishers to list their content on the search engine.

Seems to me the main objective here is that News Corp is making an attempt to force Google to pay newspapers and other publishers for content. Google claims to send news organizations 100,000 clicks per minute and does it because publishers want to be found-and if the pub doesn't want to be listed, they aren't. Google has the economy of scale to resist any pressure from outside sources so removing the indexed articles will not have large scale effect on their revenue.

So who is going to be cashing in if this little scenario plays out? You guessed it: publishers.

They will receive revenue from Bing. Murdoch will now have a dual revenue stream for all News Corp websites as the company will get payment for listing and payment for content subscriptions. Next, we'll see other struggling publications attempting that. And why wouldn't they? If a powerhouse like News Corp can do it, why can't they?

What on the surface could appear as a life raft for some print publications will actually quicken their demise. You're not listed on Google? Oh, I have to pay to access the news I need? What, there's a subscription cost to get to the news listings on Bing? See ya. Plenty of other local and national websites that will give me the news when I want it and not ask me to pay for it.

Its all about consuming news whenever and wherever I want. And by the way, I'm not interested in paying for it.

Sunday, November 22, 2009

Media Bites-November 23 2009

New TV business model causing conflict between broadcast and online platforms

Broadcast television continues to spend analyzing their current business model instead of determining ways to truly partner with online sites. One network exec has stated, " the spending on Hulu versus the network is still small. But the undercutting of broadcast CPM's is something we're all concerned about. It's been more pronounced during the past few months and it's something that Hulu has not addressed." A media buying source confirms their concerns, but goes on to say that, " Hulu doesn't really represent a threat to network TV, today. However, advertisers are considering online video as an alternative to broadcast.'

In my opinion, anything that allows me to consume media when, where and how I want it is a threat to the current broadcast model. Wouldn't it make much more sense to embrace change, develop technologies and produce programming that makes me want to spend time watching?

If Time Warner Cable can develop TV Everywhere beta that lets me watch premium pay per view content on my laptop and Comcast can launch a similar version, as well as a local sports VOD, why can't NBC, CBS, ABC, FOX and the CW do the same?

Monday, November 16, 2009

Media Bites-Nov 16 2009

Media Continues To Fragment But Innovators Find A Niche.



Tired of cable or satellite? If you live in the City of the Angels, starting today you'll have a new option: Sezmi.(http://www.sezmi.com/) Here's the skinny-Sezmi transmits cable networks through digital TV frequencies that they have leased from local broadcasters. Users install two pieces of equipment that the company is calling a 'smart reception system' that brings in over the air programming and the Internet, as well as a set top 'digital media player' that sends the programming to a TV screen or records it for later consumption. Customers can opt to lease the equipment (cost unknown) or purchase for $299.00.

During the trial for a monthly fee of $5.00 you can see local broadcast, Internet channels and some pay-per-view services. For $20 more you'll have access to over 100 cable channels. As a consumer, I'm all over this concept. As a customer of an unnamed cable company, I'm paying $135 for bundled services ( cable, Internet and phone) and we rarely go that far up the digital tier. The Sezmi model would have my monthly costs at $25.00 for the service, $40 for Internet (cable carrier)and $30 for phone (Vonage or similar). In times like these every penny counts and I'd take the $40 savings. Now, in fairness, what you'd be giving up are: 24/7 customer service.

Not only is Sezmi competitively priced for users, it has a distinct advantage over other TV-over-the-internet companies: it can offer networks a percentage of subscription fees , in addition to a revenue share from advertising. At this point in time, that's something a platform like Hulu can't offer yet; but that could all change with the proposed Comcast/NBCU merger.

(source: LA Times, Jon Healy. Images from Sezmi)

Friday, November 6, 2009

Media Bites-November 6 2009

Activity in the media business affecting change in the TV landscape


(1) During the last week of October, several TV station group owners reported third quarter revenue declines: Meredith (-13%), LIN TV (-18%), and McGraw Hill (-24). (Claire Atkinson-Nov 1 Broadcasting & Cable)

(2) Comcast is oppressively pursuing the purchase of NBC Universal and many executives expect the deal to close within the next 12-18 months, even with the sticky issue of Vivendi not yet relinquishing its 20% stake in NBC Universal. The Wall Street rumor on this deal is that Comcast may sell off the NBC Network and station groups to a third party.

(3) News Corp is also on the M&A hunt, bidding on Cox Communications 65% stake in Travel Channel, renaming it to National Geo Traveler. Fuel TV, the youth oriented net may also be sold off in the process.

Mergers, acquisitions and sell offs should all be viewed in a positive light for both consumers and advertisers. Networks and TV groups that are struggling could be revived and reinvented as part of a larger media organization, offering more selection, better programming and greater promotional opportunities. Additionally, alternative viewing platforms such as Hulu, Fancast, ZillionTV, TV Everwhere and now even ITunes, will have a more expansive market as viewers may elect to watch their favorite shows on their desktop, as well as on the set-top.Its hoped, and the preliminary research is proving it true, that if viewers tune in via an alternate platform, they will also sample the show during its time slot or via DVR or other device.

And according to a recent AP interview, Comcast CEO noted, ' I've been saying for a long time that I think video over the internet is more friend than foe.'

How great that would be if all of the parties could work together to deliver quality programming to viewers when they wanted and how they wanted it, subscription models that benefit consumers and programmers and advertiser friendly opportunities that make money for all.