BusinessWeek takes a look at YouTube's revenue challenges in a recent article. While the article focuses mostly on advertising and revenue generation, the overall point (which the writer seems to sidestep) is that YouTube has not been the goldmine it was expected to be. YouTube is ubiquitous and has become the Coke or Kleenex of online video. It is a brand that identifies the whole category.
Still, Google paid so much -- $1.65 billion, anyone? -- that it would seem to be a bit of a concern that YouTube is not generating the kind of money it was expected to. The site has incredible value in search, especially since Google now regularly returns search requests with video, and that adds value to the Google brand overall. But a billion-and-a-half seems like a lot for a loss leader. Google gets a free pass in the mainstream media -- largely because much of that media doesn't understand the tech world -- but keep in mind that Microsoft once was Google and now that company makes mistakes like Vista. Past performance is no indicator of future success. Google's bottom line may be able to handle the hit, but you are only viewed as an infallible superbrand once. That perception may be even more valuable.
YouTube Has Yet To Earn for Google
News Coverage as Sport
The Boston Herald is the subject of a great read in The Washington Post (we found this one on Romenesko). A lot of little fascinating tidbits in the story, which is what makes any good story great. Among them: the Herald has no correspondent in the mayor's office and the city desk is down to just 10 reporters. We had about half that many when I worked for a tiny paper in upstate New York.
While it seems to be a foregone conclusion -- it's never a good sign when you're selling your office and renting space -- Boston really could use a second paper, if only as a check on The Boston Globe. As a native New Englander, I've read the Globe for many years and, even though I've only read the sports section on a consistent basis, that is the paper's signature section. The sports section of the Globe has seemed very complacent over the last few years. Aside from Mike Reiss, who tirelessly and aggressively covers the Patriots, the Globe has been slow to evolve to the new world order of sports coverage. Bob Ryan is a great columnist but he is a relic from another era and Dan Shaughnessy mailed it in years ago. His shtick is as tiresome as it once was relevant.
What's the point of telling you this? The Herald keeps the the Globe on its toes. Part of the reason Reiss's coverage is so good is that John Tomase's coverage in the Herald is equally relentless and thorough. The rest of the Globe's coverage certainly benefits from the competition. Competition makes news coverage better. Sure it occasionally means newspapers get the story wrong as they aggressively pursue leads, but ultimately it's a good thing. Look at how Rupert Murdoch's purchase of the Wall Street Journal has affected The New York Times. I may not agree with Murdoch's politics, but the competition is good for the Times. It turns news coverage into its own sport.
Honey, What Should We Do Tonight? Let's Go to Blockbuster!
I'll be honest: I'm not a Netflix guy, but that's only because The Baroness and I don't rent movies too often. Someone gave us a free month trial and we can't even figure out when we should use it (though we do want to). Now that I have disclosed my personal views, I do not understand why Blockbuster is fighting the Netflix model. Isn't it so much more convenient to shop online for what you want and have it delivered to your house? Not everyone thinks so.
Apparently, Blockbuster is trying to enhance the in-store experience because its CEO claims, "People like to shop, whether it's in a Neiman Marcus or a Blockbuster." Uh-huh. In-store shopping for clothes makes sense. The same cannot be said for movie rentals. I could pick 10 movies I want to see right now based on reviews I've read or recommendations from friends. I couldn't just imagine a shirt I might like and see how it would fit me. We're not talking apples to apples here.
Anyhoo, Blockbuster wants you to go to the store. To draw you in, the chain is installing PS3's and serving coffee, plus installing play areas for kids. Nice try, but a better solution would be making themselves more relevant to people's lives. How much extra time do these Blockbuster people think you have anyway?
Nielsen and comScore Battle it out over Internet Numbers
Ratings are an endlessly fascinating study. They're the currency of the TV business and yet there is only one company producing the data. Sounds suspect indeed. There are pros and cons to this approach. The cons are obvious -- the ratings figures could be distorted for a variety of reasons (small sample size, inaccurate recording of data, etc.). The benefit is there's only one number and since the numbers are all determined the same way, everyone is happy.
We can see what would happen if Nielsen had major competitors in the TV industry. Nielsen and comScore are battling it out in online measurement. Everyone knows something is amiss because the two companies have different numbers for the same sites. You would think online would be easier to track, but in actuality, the wealth of information makes it more difficult. My favorite part of the story is when folks in the industry say they don't rely on the figures, rather they focus on the performance of their specific campaigns. Seriously? Trust me, these numbers are the holy grail. Just like they are with TV.
Apropos of this topic is the fact that about 30 times in the past 6 weeks, we have seen it reported that China has tied or passed the U.S. for total Internet users. Where did the data come from? Nielsen. What's the ginormous flaw? Well, this data only tracks home and business use and even the story itself notes that "one-third of Chinese Internet users surf through Cybercafes." In what other industry can you base a story around figures that are so completely flawed? Mentioning it in the fourth paragraph doesn't mean you should use the numbers.
Just one example and then we're good. Did you know that Alex Rodriguez is hitting .353 this season? You didn't? Oh, that could be because he's hitting .353 at Yankee Stadium and we don't record his at-bats on the road. Ridiculous.
Back in Action: Some Fun Links
The Baron had to take care of some bidness, but we're back and ready to roll. As promised, you'll be getting more posts over the next few weeks to make up for the short vacation break.
Since we're just easing back into this, let's start with some fun stuff. TV Land has created a movie trailer database dating back to the 1950's. Though it's annoying that the trailers start when you pull up a different genre or decade to search, the site is quite cool and a neat little link to film history. Second, and just as important, it's a great place to get sucked in for 20 or 30 minutes if you want to take a break from updating your Facebook profile. I watched the trailer for The Birds. A bit long by trailer standards, but wonderfully done by my man, Hitch.
The other fun site is Get Back. Though not nearly as cool as the TV Land site, it's a cool concept. Basically, it's I Love the 80's meets the Internet. How these guys plan to make money long-term, I have no idea, but that's not my problem. I wasn't an Angel funder.
Blurb Gives You a Chance to Publish The Great American Novel
** Posting will be light for the next few days as The Baroness and I are heading out of town to see some family. Don't worry, I'll make up for it when I get back.**
Despite the technological innovations resulting from the rise of the Internet, one industry that that has been left largely untouched is the book publishing industry. Sure, Amazon completely transformed how people buy books, but none of the portable book readers like Sony's E-Reader have taken off. We'll see about the Kindle.
That's what makes this article on Blurb.com so interesting. The article focuses a lot on scrapbooking for some reason, but the part that is most fascinating is that users can publish their own books for free. (They make money if you print your book with them.) Essentially this is the convergence of the blogosphere and the book publishing industry. While it's a great concept for individuals, I doubt we'll see the same level of success with these books as we have with the big-time blogs because these books are still not widely distributed. If you want a blog on the political views of rhino herders, you can find one. A book on the topic? Not so much.
FriendFeed Delivers Tasty Dish on What You're Sharing
The key to sustained success in new media is to make users' lives easier. Google offered better search, the DVR offers a better user experience than the VCR, etc. With that in mind, a group of former Google guys have created FriendFeed, a site that pulls together all of the things you're sharing with friends across all of the sites. The idea is that people go to their friends for recommendations on everything. This site just makes it easy. The folks at BusinessWeek seem impressed.
These guys decided that it made no sense to share things on Facebook, YouTube and Flickr when you could just share them all in one place. FriendFeed is not a replacement for those sites, it just organizes it. It's the same concept as an RSS feed, which organizes the news you want to read and puts all in one place. Sounds good to me. I don't share a whole other than photos, although this would seem to remove the cut-and-paste link situation on a site like YouTube or The New York Times. Yup, I'm still cutting and pasting. I find it easier than sending one of those automated share e-mails. Maybe that fact takes me out of the target for FriendFeed. Am I the only one still doing that?
Networks Looking for More Online $$
Not surprisingly, the broadcast networks are looking for ways to max out online advertising revenue. There are plenty of online viewers, but the dollars have not followed the way the networks had hoped. This is really a microcosm for most online media. Existing brands have not struggled to make money online, but they have struggled to make as much money online.
Alright, back to the networks. They are in a tough position. They can't increase the amount of advertising substantially without upsetting online viewers (to some degree, at least). Plus, the networks don't want to cannibalize their TV business model. So, how can they improve the situation? The key is to create online ads that are not just repurposed content. They should be clickable and relevant to the viewer demos. Keep in mind that much more information is tracked online. Ford is a big advertiser, but the car company may not appeal to online viewers the way they appeal to a broad TV audience. When the networks can master this delicate balance, they will likely see the revenue growth they're after.
Bringing Back the Polaroid Shake (or Trying To)
About a month ago The Baroness and I were in Florida. We were in a restaurant and a large party walked in, including one guy with a Polaroid. Considering we were out during early bird special hours, it was slightly less shocking, but I didn't even think they were still making film for that camera. The great thing was, after every picture the guy took, ... yup, he was doing the Polaroid shake. Loved that move, especially because when we were growing up, there were entrenched camps of opinion debating whether that was the best method.
Why am I telling you this? Because Polaroid is attempting one serious comeback. Polaroid has come out with a printer that wirelessly connects to and prints from your cell phone. It's so small, you can carry it around in your pocket. This is tremendous. Can't you see this being the most fun to play with when you're out with a bunch of people in a bar? You've just gotta love companies (or actors, athletes, etc.) that are at the top, crash and burn and come roaring back. It's tough to do, but it's why the E! True Hollywood story exists. (By the way, The Baroness wants credit for finding this story, so there you go, dear. Nice find!)
Am I fired up about this? You bet. Do I have concerns about its success? I do now. "The rechargeable lithium ion battery that runs the printer will last for about 15 shots," according to the story. Totally unacceptable! How can they let this thing off the assembly line when you have to recharge it after 15 shots. I still like the product and the idea (a lot!), but for $150, it's gotta have better staying power. We'll see. My bet is that this concept takes off when they can deliver at least 40-50 shots before recharge is needed.
Paramount Tries to Sell Movie Clips on the Cheap
Following the model used for downloading ringtones, Paramount is attempting to charge "at least $1" for clips of its movie titles. The idea is that users could use the famous clips on blogs, as ringtones, to create funny clips and stick them on YouTube. Though this sounds like a bit of a stretch as a revenue generator, keep in mind that ringtones were never expected to be as big as they have been.
Even if this move is a success, it likely won't generate significant money for several years. It will, however, be a good marketing tool for the company. And the key, of course, is that people will gladly spend a dollar or two for some amusement and for the personalization of their phone every now and then. Since so few things now cost a dollar, people toss it over without even thinking about it. If that happens here, Paramount could have found a huge new revenue stream for the movie industry.
Clearflow Means Clear Roads
I'm not an early adopter. I like new gadgets, but I don't have a burning urge to possess the latest, hottest item. I prefer to see how people use a certain product or service and find out about its pros and cons first.
That said, sign me up for Microsoft's Clearflow technology. This free software helps to predict traffic jams based on algorithms that factor in previous data plus sensors on the highway that track current information. This is technology at its best. New York City might even become a more civil place because of this. As crazy as this sounds, traffic and parking (if you have a car) loom over everything in New York. It's bizarre the way you get used to it. The whole subculture of people who work and/or sleep in their cars while waiting for the alternate side rules to expire, and the constant debates about the best way to drive somewhere are a strange but necessary evil. Now I just have to get a SmartPhone so I can easily carry this info around with me.
On a largely unrelated note that's cool but not worthy of its own post, Google Earth has added a feature from The New York Times which embeds news stories onto the map so you can see where the stories are taking place. Maybe this will help kids with their geography.
Turn Back the Tech: Computer Switches
Here's our latest installment in the Turn Back the Tech series. Here's our last TBTT post. If you're looking for others, just search for Turn Back the Tech and you'll find the whole series.
While this clip isn't as technical as others, it's far more amusing. It was originally shown at the 1940 World's Fair in New York as a way to explain how switches work. Pretty cool.
Prime Time Rewind Tries to Take Online Viewing a Step Further
One of our first posts was about Fancast, a catch-all site from Comcast with TV listings and online episodes of dozens of current and former shows. In that vein, we bring you Prime Time Rewind, which we found thanks to the folks at Media Daily News. PTR is a cool site that gives you immediate online access to almost every major show. (Watch out for the web address, though, since it ends in .tv, not .com.) The site is cool and promotes the always popular concept of one-stop shopping. Plus, the creators were smart enough to include not just the broadcast networks, but also USA, TNT, Bravo, aka the major cable nets. I also love the Rubik's Cube-like interface.
Apparently, you can also personalize PTR so you just have your lineup of shows. I didn't make it that far, but it sounds like a great feature. These guys have put some serious thought into this and it shows. Though I've only played around on the site a bit, it seems to be very fluid and well thought out. One plus over Fancast is that the listing of shows is easier to maneuver. Fancast just has a large list, which is very overwhelming and tough to sift through.
Newspapers Fail to Keep Up With Political Blogging
A new study of political blogs at newspapers indicates that the old print media has a way to go before it fully understands the complexities of the blogosphere. Anyone can start a blog, but it requires commitment -- occasionally bordering on insanity -- and a certain rhythm that traditional journalism lacks. Even The Baron doesn't profess to understand it all, but I have learned quite a bit from blogs I read regularly and from the experience of keeping up with a blog every day.
The study on newspapers' political blogs tells us that nearly one quarter of the blogs were not updated at all during the 5-day study. I don't know everything about blogs, but that's unacceptable. Of course, this ignores one of the major problems in journalism today. Newspapers are hellbent on staying relevant but they are also facing major budget issues. So instead of hiring bloggers or adding to their staffs, they are cutting staff and requiring all of their reporters to do more. The end result? Blogs that don't get updated and analysis that doesn't go very deep. That drives readers to want more and to often go to other sites (like the Huffington Post) to get it.
When to Buy an HDTV
Demand for HDTVs has slowed to its lowest rate since 2002. While this may not be so surprising given the economic conditions, it's interesting because of the switch from analog to digital TV next February. Though consumers don't have to buy an HDTV for the switchover, it will obviously help increase demand.
So the question is: When should you buy an HDTV (assuming you want one in the next year)? My guess is prices will go up in November since it will be a few months before the switchover, Christmas and the Super Bowl. And if the next several months are lean economically and sales do indeed slow significantly, prices are bound to come down a bit. So the best buying zone would seem to be this summer, probably May through July.
Now I just have to see if I can get this plan past the Baroness.
Can You Hear Me Now? No
Think of this as the first Turn Forward the Tech post, even though we don't see that being a regular feature. Check out this video (which we found via Seth Mnookin's Feeding the Monster blog), explaining voiceless cell phone calling. It's pretty wild. This technology tracks the signal your brain sends when you're about to speak and converts it to words. It's still in the early stages, but very cool nonetheless.
