In a rather impressive announcement yesterday, Steve Jobs and his Apple Store reached the 1 billion songs-download mark.  The achievement is a milestone for the number alone (as well as $1 billion in song revenue created for Apple), but it is more significant in the overall landscape.  Just seven years ago, music pirating was reaching college campuses nationwide.  When the Apple store launched, they were able to convince these former pirates to download their music legally for cheap.  It also created a technological wave of buying music online for one's mp3 player as opposed to buying the CD and ripping it later. 

Also of note, Apple has surpassed more then 15 million video downloads since October.  Apple has changed the way people conduct business and allow consumers to watch and listen to media on their own time.  This milestone is a celebration for what they have been able to accomplish thus far.  It is also rather cool of them to give the person who downloaded the 1 billionth song to receive 10 iPods and a $10,000 gift card.

Links:
Apple's Announcment
Wall Street Journal

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It sems that the newspaper industry is increasingly becoming aware of the need to join the Web 2.0 World.  In a post yesterday, the Editor's Weblog, discussed the importance of podcasting and digital media tools to the newspaper industry.  Interesting the article has an interesting discussion of the difference between a podcast and a daily radio show and how both communications tools can co-exist. 

Additionally, while the article explains of the 'ease' of developing a podcast, doing so adds a new dynamic and added level of production, coordination, and publishing for these entitites  In all reality, to be done correctly a comprehensive podcast strategy, much like any other type of outreach, requires specific knowledge for success.  In this case for podcasting there needs to be a high-level knowledge of audio production, as well as the technical aspects of publishing such a series.  It is these types of situations where organizations such as CityCast Media  can help clients to not only develop comprehensive strategies but also extend an organizations bandwith and knowledge to handle these types of campaigns. (Disclousure Note: CityCast is our consulting practice that specializes in podcasts, blogs, and RSS technologies.)

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The web has changed the dynamics of information.  The latest example is Paul Allen's Sporting News, which is now in the market for new ownership.  What is particularly interesting is the direct impact that the internet has had on the Sporting News' identity.  The magazine which, historically has had a reputation for providing intricate statistical information now faces a challenge in an age where statistics and sports analysis tools are readily available online. The big question is will the magazine's identity crisis have an impact on its sale price?  We'll continue to monitor the situation here at The Media Backpage.

Link:

NY Times Article

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There is no doubt that blogging is becoming a major part of business and how business can help themselves grow.  Blogging is a great method to spread your message from a personal standpoint and allow your clients or the general public to learn a little more about you as the individual.  With that said, there are an ethics to blogging.  Recently The Wall Street Journal ran an article that discussed bloggers who were talking up a Spanish internet start-up called FON Technology SL.  They courted a wide range of respectable bloggers to talk-up their company in their respective fields, which has since sparked an ethical debate about the validity of one's blogging.

The issue at hand is why some of these "hired" bloggers disclosed they had a financial stake with the new company and others did not.   FON says that these bloggers might be compensated for their work in the future but aren't being paid at the time.  That leaves an ethical gray area for those involved.   Technically, they are talking up a good company they think might make an impact within its field.  However, if they are under the impression they might be paid for their internet work in the future, morally should they disclose that information?

Bob Steele, an ethics specialist with the Poynter Institute in St. Petersburg, FL says, "While many bloggers don't consider themselves journalists, anyone putting information into the public domain about people or companies has certain ethical responsibilities."

A few bloggers involved have taken different approaches.  One blogger posted in a previous blog his ties to the FON company but doesn't disclose it in every blog.  Others merely leave the detail out. 

The debate is really just getting started on the role of ethics in blogging.  Mr. Steele is correct, bloggers are not all journalists, therefore should they be held to the same ethical standards?  I tend to think so, especially when their intent is to sell a company these bloggers will benefit from in the future.  We'll continue to monitor the debate here at The Media Backpage.

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Richard Edelman, President of Edelman Public Relations recently wrote a very eloquent and spot on analysis of the implications of new communications tools for PR professionals.  His essay reminds me of a study that was done several years ago that pointed to internet audiences gravitating to user created content.  At the time they referenced tools such as e-mail and instant messaging.  Today, the tools have developed further and include rich media solutions such as audio and video podcasts, blogs, and RSS.  With these new techniques, the communications dialogue has evolved and grown from peer-to-peer sharing of personal content to a much broader and engaged space on virtually any topic that includes corporations, non-profits, stakeholders, and individuals. 

Clearly the rules of engagement for the communications community have been redefined.

Link:

Richard Edelman's Post on His Blog 6AM

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Sports Illustrated's Swimsuit issue is always an 'event' but this year the magazine makes a big splash with a dedicated website that is both content rich and full of A-list advertisers from Honda to Budweiser, as well text-based ads from Yahoo! Search Marketing. 

Beyond the print issue, SI has used several techniques to raise awareness and promote the issue online.  First, the Swimsuit site taps into several different options for users to experience the issue from extended pictorials to sponsored streaming video, and special sponsored sections.  Second, SI has integrated a number of tools whereby fans can both experience and promote the issue from buddy icons for instant messaging to downloadable cell phone backgrounds.  

The multi-platform approach has also sought to monetize videos that SI shoots each year of the pictorial shoots by producing vignettes on some of the models.  The magazine has made these mini-programs iPod friendly, and available for download through Apple's iTunes for $1.99 each or $9.99 for the set. (iTunes link). 

Links:

Media Post

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IN THE WORLD of marketing and advertising a key target group is that of college students 18-24.  Despite the segments importance for advertisers and networks, it has been historically difficult to measure what college students view, since they live in temporary dwellings that are not traditionally included in the ratings mix.  As the media landscape continues to be redefined, both content companies and their advertisers are seeking better metrics to track their efforts.  With that in mind, Nielsen Media Research, the company that measures television audiences, has announced that they will include college students beginning in early 2007.  In doing so the company will be able to better determine what they are watching (my bets are MTV, Fox, ESPN, and Comedy Central) and empower broadcasters and advertisers to better understand the demo.  As part of the unprecedented move, Nielsen will survey college students who live both on and off campus from dorm rooms to frat houses.

Links:

Crain's New York

Nielsen Press Release

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I have always been a big fan of XM Satellite Radio's business plan.  They vow to put out quality, diverse and entertaining  programming while remaining cost effective in an extremely costly business.  They refuse to get into bidding wars with their competitor, Sirius over attracting talent.  Sirius has a business plan too.  Bring in so many high profile celebrities and sports, that when you finally cave for satellite you'll have to lean Sirius way on star power alone (see my previous posts).   That plan has finally began to take notice, as Sirius out performed XM in the 4th quarter last year in listener subscriptions, for their first win over XM.   XM announced at the end of last week, they signed Oprah Winfrey to a 3-year $55 million to launch her own channel, "Oprah and Friends."  Oprah has dominated television for decades and has entered the film, Broadway, periodicals, and book circles in her career: why not radio? 

My guess, this move will be a massive success.  XM's strategy is to grab the early adapters first with great programming.  Sports fans next with every baseball game ever played on their airwaves.  Lastly, attract the women with a concentration in lifestyle programming.  Considering what Stern cost Sirius in dollars alone, if Oprah attracts 325,000 extra subscribers her contract will pay for itself.  Look for Oprah to dominate yet another market.  Everything this woman touches turns to gold.

Additonal Links:
NY Times
The Wall Street Journal

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In the Wake of Howard Stern's departure, CBS Radio, revamped many of their rock stations to all-talk outlets called Free FM.  The stations feature either David Lee Roth in Mornings on the east coast, or Adam Carolla on the west, as well as a variety of other shows from Penn Jillette to Leslie Gold the Radio Chick.  Personally, as I have argued here before, I think that this strategy of going with an all-talk format in the wake of Howard Stern's departure was a miscalculation.  However, with that aside, since the CBS station's changed formats, I have noticed one thing: radio does whatever it takes to keep up with the times and stay relevant.

Since radio's debut in the 1920's as a technology it has certainly faced its share of competitors and yet it has despite all of its new found competition the medium has managed to remain an important part of the American media diet.  With television, radio too the opportunity to extend its billboard messages and let the audience know what they could find on the airwaves.  Then, with the advent of the internet, radio took sought out ways to develop an new audiences beyond its physical signal limitations by streaming their signal online.

Today, stations like Free FM have again sought out new technologies to grow their audience and remain relevant, in this case its podcasting.  Missed a show, not sure if you'll like what they have to say, or simply want to catch it later now through most of the Free FM sites, or even in iTunes you can find short form version's of the station's different shows from David Lee Roth to Chris Booker.  Regardless of what you think of the content itself radio itself has found a way to stay at the forefront and continue to build its audience.

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The Super Bowl is always a massive-hyped event that draws over 90 million Americans to the viewing table, produces extravagent fanfare, celebrity parties, and 30-second commercials that dominate the water cooler on Monday.  However, with the addition of Tivo, DVRs, video iPods, and blogs, advertisers really are getting their money's worth out of the millions it costs to air one, 30 second spot.  With the blogging world as large as it is, website portals like Google Video, MSN, Yahoo, and AOL all replaying the Super Bowl commercials, companies that invested one-quarter of their annual advertising budget on one ad are reaping the benefits.  The Wall Street Journal profiled Emerald Nuts and it's profits tripled in one year from running their first Super Bowl commercial ad during the 2005 big game.

The reverse-Tivo effect is, basically people skipping the program they record to get to the commericials.   This is bizarre occurrence that only happens one day a year.  It's the reason why networks shell out billions of dollars for the rights to broadcast NFL games.  It is also one of those rare situations where everyone wins; the network is happy, the advertiser is happy, and the consumer is happy.  Just make sure the commercial is funny, or else your finished.

NY Times

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The Tribune Company posted a 38% drop in profits as 4th quarter reports were released this week.  The parent company to the LA Times and Chicago Tribune said this week that its fourth-quarter ’05 profit was down 38% from a year earlier on charges related to the shutdown of an LA Times printing facility and 900 job cuts, along with decreased ad revenue at its newspapers and TV stations.  In total, sales at Tribune's television and radio business dropped 11 percent as demand for ads from telecommunications and automobile companies fell. 

This is a very scary trend for the world of traditional media.  For the past 50 years, Print, TV and Radio have been a goldmine for advertising.  With the internet as a major player now, newspaper readership is continuing a downward spiral and finally the advertisers are following suit.  Most major newspapers have poured cash into their online services as a way to keep pace with the developing trend.  However reading content from these papers online is still free and will stay that way.  Newspapers make their money in circulation and in advertisements.  With the automobile industry footing the bill.

However, in recent years automobile advertising has increasingly been finding new ways to reach potential customers through online ads, video podcasts, sponsorships and other modern opportunities.  If they continue to pull money from newspapers, we might see the end of the print version of an American staple. 

If that is the case, look for online newspapers to charge subscription fees for their content.  Most offer you a free look at the last two weeks of articles that appeared in print, like the LA Times, NY Times, The Washington Post Boston Globe.  However papers like The Wall Street Journal already charge a subscription fee to view their articles.   A successful model that might keep the industry alive for a few more years.  

However, newspaper giants like Tribune will never make the kind of money they did from the last half of the twentieth century.

NY Times
Radio INK

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Earlier this week ESPN posted their witty SportsCenter commercials on iTunes, for a $1.99.  Shortly thereafter the comments started coming in via iTunes built-in comment system, however, instead of praise for ESPN's typically well-received spots the audience was appalled at the very idea of being charged to watch a commercial.  ESPN quickly retracted the spots and reposted them without fees.  Naturally, this was a good move on the network's part and we'll give credit where credit is do - they did right by their audience at the end of the day.

The situation brings to the forefront how the broadcast industry has initially handled the new on-line universe of video podcasting and on-demand video.  The industry has very quickly jumped to turn these tools into unique revenue streams, i.e. ABC selling its blockbuster hit Desperate Housewives through Apple's iTunes Store.  However, while that is an appropriate strategy for some shows is not necessarily the best strategy for all content. 

Instead rather then viewing these tools as simply revenue stream opportunities, the broadcast industry should leverage these tools to grow audiences and build loyalties.  For example, let's take the ever competitive late-night television space, for years David Letterman's Top Ten List has been available as a syndicated radio feature to help audiences become more familiar with the show and to in-turn draw larger audiences.  Now, with that idea in mind, the broadcast networks and cable channels have a unique opportunity to use video podcasts to make programs, or parts of programs available without a fee online, which will in turn help build audiences. 

The $1.99 lesson is that content providers need to use these new tools to their advantage, but not in a way that alienates the audience or looses focus on the big picture of building audience.  For starters, I call on the networks to podcast the stand-up monologues of new late night acts such as Jimmy Kimmel, and Craig Ferguson.

Link: NY Post ESPN Story

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