It looks like you Giants fans have something to celebrate this morning with the Giants win last night over the San Francisco 49ers. This will bring the NY Giants to face the New England Patriots in Super Bowl XLVI. Being that I’m from Rhode Island, I just might care about this one. Usually, apart from the Thanksgiving holiday, I’m content to ignore the blatant football around me, instead busying myself with perfecting my latte art skills or hiking in the Santa Monica Mountains. This time, with Facebook before me, it was a bit difficult to ignore the game and the overtime field goal which caused celebrations in the east.
Speaking of the Superbowl, last week Volkswagen promoted their Superbowl with what else, an ad. This one featured adorable pooches howling out the Star Wars theme song in an ad dubbed “The Bark Side.” The ad already has over 7MM views on YouTube which is fairly incredible if you consider that this is simply a teaser for…a Superbowl ad. For an explanation of how it was produced, click here. If you remember from last year’s Superbowl, the VW spot featured a young Darth Vader practicing his force and won big as one of the top-rated ads from the game.
In other news, last week saw the internet retaliate at the legislation on the docket dubbed SOPA or PIPA. Rather than an homage to British royalty, these two insidious pieces of legislation threaten to change the infrastructure of the internet and threaten freedom of speech globally under the auspices of copyright law. As someone who worked for an entertainment company (HBO) for 4 years, I am well aware of the value of content. I have been on multiple sets, I am friends with executive producers, I have welled up while listening to Ross Katz discuss his creative process while filming Taking Chance; I am someone who understands the cost and undertaking devoted to creating quality content. That said, the idea that control will fix the problems ailing the content industry is misguided and frankly a sign that consumers’ needs have lapped Hollywood’s delivery of content. I recently read VC Fred Wilson’s plea to Hollywood entitled ‘Scarcity is a Shitty Business Model.’ This has been shown time and time again to be undoubtedly true.
Consider Napster. When Napster was shut down in 2001 and iTunes came raging onto the scene in 2003, many argued that consumers would not buy music for $.99. However, the slick user interface and sheer online availability of music settled that debate quickly proving that consumers would in fact pay if given an easy process for transacting and lots of content. Back to Hollywood. The window structure is simply killing the industry. The window models were created based on an infrastructure that not only no longer exists but will trend farther from its origins over the next few years.
I’ve been recently watching the British series Downton Abbey. In one episode, the wealthy Crowley family updates their lavish home with innovative light bulbs replacing their dimmer cousins, the candles. The grandmother, Dowager Countess of Grantham, expertly acted by Maggie Smith, expresses her discord that the new bulbs are burning her eyes and far too bright. Change is always uncomfortable but inevitable nonetheless. To ignore it and try to squeeze and manipulate the inevitability will always fail. In other words, SOPA/PIPA won’t do justice to their objective, protecting the content and its creators. Furthermore, by censoring the internet under the guidelines that it poses, the legislature threatens to impede innovation across the internet simply because the entertainment industry refuses to innovate.
So here’s my plea to the studios. Innovate the business models, with a considerable shift in availability to speak to consumers’ needs. Eradicate the window structure. Yes, I know the drill. So many companies are involved here that eradication is made difficult. The solution to the problem is never easy but it stands just the same. Allow viewers to watch content on any platform they wish all at the same time, but create a revenue model for each. Think long. Don’t think short. The iPod was a gateway drug for Apple to the success they thrive on today. Consider that the revenues won’t immediately signal success when considered back-to-back (I’m looking at you Jeff Zucker and your digital dimes analogy). Become a misfit and make a revolutionary change. Make some waves, shock the other studios, and consumers will follow you to the bank.
Finally, the Super Bowl gets a social media command center and former Penn State football coach Joe Paterno dies at 85 re-igniting the debate of his misconduct in ignoring the abuse of his subordinates.
A year ago Facebook had super growth around the world, but U.S. growth was flat and we pondered the real value of all these worldwide users. At that time it would have taken Facebook more than four years to catch up to MySpace in the U.S. In January we re-ran the numbers and the trend suggested January 2010. Today that has all dramatically changed – MySpace has 70 million monthly U.S. uniques (Comscore, March 2009), less than they did a year ago. Meanwhile, Facebook has surged to 61 million U.S. users and are adding a few million more every month. (http://www.techcrunch.com/2009/05/18/myspace-is-in-real-trouble-if-these-page-view-declines-dont-reverse/ 5/18)
Twitter is developing add-on tools for businesses and professionals, which could create a revenue stream for the microblogging service, says co-founder Biz Stone. Twitter doesn’t plan to pursue advertising, he adds, because it could end up annoying users. (Iwantmedia 5/19, http://www.reuters.com/article/GlobalTechnology09/idUSTRE54H5CP20090518 5/18)
Napster has announced its latest relaunch plan, the company’s first since being bought by Best Buy last year. Under the new plan, customers will pay $5 a month for unlimited streaming music and 5 MP3 downloads per month. VentureBeat (5/18) , Reuters (5/18)
If newspapers want to get their online revenue growing, according to media buyers, they need to tie ad rates more closely to results, charge less for ads and provide Web content that readers can’t get at news aggregators. “CPMs have got to be in line with the online marketplace.” (Iwantmedia 5/19, http://www.marketwatch.com/story/newspapers-pressured-to-change-online-ad-approach 5/18)
Disney is opening DisneyStore.com, a new site offering merchandise from its theme parks, as the entertainment group seeks new revenue sources. The site will sell Mickey Mouse ears and other items that were previously only available at Disney parks and resorts. (Iwantmedia 5/19, http://www.reuters.com/article/internetNews/idUSTRE54I0L320090519 5/19)
(Below) That’s like the CEO of Chrysler telling people to not use their cars. Is this the Bugs Bunny technique?
Google CEO Eric Schmidt, speaking at the University of Pennsylvania’s commencement ceremony in Philadelphia, recommends college graduates to turn off their computers and discover the humanity around them. Economic downturns can be a time for innovation, he says. (Iwantmedia 5/19, http://tech.yahoo.com/news/ap/20090518/ap_on_hi_te/pa_google_penn 5/18)
FROM DIGITAL MUSIC TO MOBILE VIDEO?: LOST IN TRANSLATION
Guest Writer: Pascal Hillet
Do you remember what music downloading was like before iTunes?
Those were the heady days of Napster and Morpheus. There was a portable digital music device called the MPMan F10. I bought one but never could figure out how to make it work. I gave it away.
Then came Jobs. He and Apple figured out how to make a consumer-friendly music service and portable player. This was a Copernican revolution: Apple started from the premise of making as good a consumer experience as possible, then finding a way to deliver it, rather than the other way around. The rest is history.
Yet now I feel as if we’re back in a geocentric universe, only this time with mobile video. There are multiple mobile video and mobile TV services on this earth, and they all, well, suck. Not one of them is consumer-oriented.
For example, why put longish video on a linear service? Mobile viewing by definition isn’t appointment viewing. Who wants to miss both the start and the end of something, watch what’s in between and then try to figure out what it was all about?
Why ask us to pay $5 or $10 on top of the $50 or so we already pay for phone service so that we can watch ancient television episodes in low resolution on a tiny screen? Sorry, not a compelling proposition.
And that’s the point. The industry players (handset manufacturers, mobile operators, technology developers) are not thinking about the consumer first when they try to foist top-down-driven services upon us. Buying any of these is a dismal experience. We’re back to the MPMan.
Small wonder that none of these services have caught on.
Just as for music, we need a service that starts with the consumer in mind. Let us watch whatever we want, whenever we want, wherever we want. Give us an intuitive UI. Make it free, or include it in our phone subscription.
Last time I checked, Apple was doing pretty well selling iPods and iPhones on the back of the iTunes service. Whoever solves the mobile video puzzle will also prosper.