27th: Best laid plans of mice and men ...
Sadly, no post today. I have a 7AM pre-panel meeting...so a girl has to do what a girl has to do!
25th Feb: Fascinating reading
I came across the most fascinating book, it is called The Eye: A natural history by Simon Ings (Bloomsbury). It is not widely available - yet. But, it promises to be a fascinating read about vision and why if one wants to know how things really look - one should ask a painter.
Think about it ... our eyes/vision define our world. By providing sight, eyes not only allow us to carry out our daily functions, but also are largely responsible for our perceptions of others and the world in which we live. Mighty important stuff. Ings attempts to provide both a scientific, physiological, theoretical, and artistic view of the eye. If you longed for a career in the arts - but could not even draw a straight line - well it makes for riveting reading and possibly provides an explantion for one's shortcoming. Genetic deficiency, that explains why I have ended up in the world of finance and not art. Buy it here: http://www.amazon.co.uk/Eye-Simon-Ings/dp/0747578052/sr=8-2/qid=1172400635/ref=pd_ka_2/202-8483664-1130245?ie=UTF8&s=books
On a related note, Guy Fraser-Sampson who I tend to run into on the conference circuit, has just penned his second book, Private Equity as an Asset Class, focusing solely on private equity. I seem to remember that Guy's earlier book was described as a defining piece of writing on the alternative asset classes. So, a complete shout out - you can buy Guy's book here: http://www.amazon.co.uk/Private-Equity-Asset-Class-Finance/dp/0470066458/sr=1-2/qid=1172400693/ref=sr_1_2/202-8483664-1130245?ie=UTF8&s=books
Just delivering on a promise. No Amazon doesn't pay me. But, have been asked by a few people, why I don't advertise on my blog...hmm...advertising...would mean that more then a handful of people actually read this blog! Unproven at present!
23rd Feb: Bird songs ... bird songs very early in the morning ...of the feathered type
Its 5AM and I have been listening to the bird(s)* outside my window - give a full operatic performance which commenced at about 2.30AM. After two hours, I decided if you can't beat it - join it. The bird(s) has/have been in residence now for a few months and usually spring into full performance around 5AM most mornings but have an occassional need to burst into song between 2-3AM. I haven't quite figured out the driver for the early starts. I thought it might have something to do with a full moon, however, may be wrong. Desperation led to my googling birds and bird songs at 4.30AM...and ...I know this is far and away from the world of media, and venture. But, we are going to talk about birds today! Obviously, I am a bit tired and a bit annoyed...but carrying out cold-blooded murder of a bird(s), is outside of my area of expertise.
Birds or more interestingly, bird songs are certain vocal sounds that birds make—in non-technical use, those sounds that are melodious to the human ear. With the exception of 3AM in the morning, when they occassionally give cause for the murderous thoughts. In ornithology, bird 'songs' are often distinguished from shorter sounds, which may be termed 'calls'. The distinction between songs and calls is somewhat arbitrary. songs are longer and more complex, and that calls tend to serve such functions as alarms or keeping in contact, while songs claim territory and advertise for mates. My bird, well, perhaps we should name it - is engaging in "songs" rather then "calls". Perhaps, its seeking a mate...but I do not purport to be a bird expert, so who really knows?
Bird song and music:
Musicologists believe that birdsong has had a large influence on the development of music and although the extent of this influence is impossible to gauge: there seem to be three general ways musicians or composers can be affected by birdsong: they can be influenced or inspired (consciously or unconsciously) by birdsong, they can include intentional imitations of bird song in a composition, or they can incorporate recordings of birds into their works.
One early example of a composition that imitates birdsong is Janequin's Le Chant Des Oiseaux, written in the 16th century. Other composers who have quoted birds, or who have used birdsong as a compositional springboard, include Biber (Sonata Representativa), Beethoven (Sixth Symphony), Wagner (Siegfried) and jazz musicians Paul Winter (Flyway) and Jeff Silverbush (Grandma Mickey). Twentieth century French composer Olivier Messiaen deserves special mention, as he composed with birdsong extensively. His Catalogue d'Oiseaux is a seven-book set of solo piano pieces based upon birdsong. His orchestral piece Réveil des Oiseaux is composed almost entirely of birdsong. Many of his other compositions, including Quatuor pour la fin du temps, similarly integrate birdsong.
In the psychedelic era of the 1960's and 1970's, many rock bands included sound effects in their recordings. Birds were a popular choice. The English band Pink Floyd included bird sound effects in many of the songs from their 1969 albums More and Ummagumma (see, for example, the song Cirrus Minor). Similarly, the English singer Kate Bush incorporated bird sound effects into much of the music on her 2005 album, Aerial.
Well the one thing I know for sure:
Well now that you know more about bird songs then you ever cared to know - the one thing I know for sure is - "I am a lady and not a bird!!!!!!" On that note, is 5.43 AM too early to have breakfast???
* Not quite sure if I have one or two birds in residence...I usually think one but then occassionally, a second voice joins in...
Source: Bird and bird songs, http://www.Wikipedia.com and refer to: http://www.birdsofbritain.co.uk/bird-guide/index.htm - the birds of Britain is a fabulous site for bird-watchers!
22nd Feb: KPMG reports "Traditional media resilient in face of online threat"
There were quite a few studies released today on the online video market, broadband penetration etc. etc. However, what I found most useful or rather worthy of a read is a report issued by KPMG, The Impact of Digitalization – a generation apart. The survey of 3000 people, aged from 18 to 65+, from the U.K., the U.S., Germany, Spain and the Netherlands explores how different generations across the world are using new media and technology. I don't necessarily agree with the whole report and some of its findings...for example, I am not 100% convinced of its claim that despite the growth of new media, television and newspapers remain the primary source of news across all age groups. The report needs to be given credit however, for recognising that there are big variations across age groups. Despite, not agreeing completely with the findings, Sean Collins, Global Head of Media & Telecoms at KPMG is one of the most informed individuals when it comes to the world of new media. So, in respect of the high regard I hold Mr. Collins, I will re-read the report and advise anyone interested in this area to download the full document here: http://www.kpmg.co.uk/news/library.cfm# - the document is third down from the list. The highlights of the report include the following: |
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- Despite the explosive growth of new media in recent years, television and newspapers remain the primary sources of news across all age groups globally, according to a survey by KPMG International. Over 44 percent of respondents, cited television as their primary news source, followed by newspapers with 28 percent; 14 percent of respondents indicated the radio as their preferred news source and only 13 percent of all respondents preferred the internet. - The survey highlighted big variations across age groups. For example, Generation Y - the under 25’s- have the lowest news consumption via TV, with 37 percent choosing this as their primary news source. - The core audience for newspapers is now the over 35’s; on average 32 percent of respondents who are 35 and over use newspapers as their primary news source, with only 7 percent preferring the internet. - In contrast, Generation Y show the highest preference for news on the internet, with over 30 percent sourcing news this way. This trend continues in to the 25-34 age bracket, with one in four favoring the internet over newspapers. Only 11 percent of those aged from 35-54 use the internet for news and this drops to 2 percent for those over the age of 55. The survey also highlighted some interesting country variations: - In the U.S., only 5 percent of Generation Y uses the internet as their preferred news source, but the same group has the highest usage of social networking sites and metaverses, such as My Space and Second Life, with 52 percent participating. - Despite not using the internet as much as younger people, the older generations surveyed, did indicate an appreciation for new digital technology; one in four of the over 65’s now own either a blackberry, digital music player, digital video player or a handheld games console. - Generation Y has the highest ownership of these devices across all five countries surveys with over 60 percent owning least one.
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21st Feb: Viacom to license content to Joost and is Apple TV the killer of the DVD?
A sunny, sunny hello. Have decided that rising before the sun, just isn't suitable for human beings or perhaps its just me? As today was another early start. But am in such a better mood - as I saw the sunrise! Anyway, am puzzling over the puzzle that is Viacom this morning. Viacom is expected to announce a licensing deal with Joost, the new Internet service that specialises in commercial video content, started by Niklas Zennstrm and Janus Friis. Joost has already signed content providers such as Warner Music Corp. and TV production company Endemol.
The anticipated deal, which follows the recent collapse of similar talks between Viacom and YouTube parent Google Inc., involves licensing hundreds of hours of programming from Viacom cable networks such as MTV, Comedy Central and Spike as well as movies made by its Paramount studios, the paper said. Earlier this month, Viacom demanded YouTube remove more than 100,000 Viacom video clips from the site after the two sides failed to reach a distribution agreement. Primary difference between the Joost deal and YouTube - in one word - money. Money! Its funny how one little word can wield so much power.
On a related note, as reported by RedHerring refer to here: http://www.redherring.com/Article.aspx?a=21384&hed=Apple+TV%3a+DVD+Killer%3f.
Apple’s set-top box device for consuming digital media is expected to hit stores next week. Apple TV can shuttle media wireless from up to five PCs and will auto synch with computers. The media box will deliver 720p HD quality. The device will sell for $299.
According to Deutsche Bank analyst Chris Whitmore this could be the killer of the DVD. Deutsche Bank’s analyst forecasts sales of 2 million Apple TV units for 2007. “It’s conceivable” that Apple’s living room entertainment box—rival to Microsoft’s Xbox—could carve out 20 to 30 percent of a $26 billion market in a few years, Mr. Whitmore said Tuesday in a report. Apple's ability to capture such a significant market stake results from the advantage it gains from the roughly 40 million people who use iTunes. But Apple TV will eventually eat into the business of makers of DVD and CD players, according to Deutsche Bank. That could “drive $5-7B in incremental revenue and $0.50-plus in EPS” for Apple, Mr. Whitmore believes.20th Feb: Musings far too early in the morning
I am at the airport, one of my normal habitats. Its very early, an unGodly hour, that I can't even admit to...lets just say I was here by 5AM, so you do the math and the worst of all - I can't find anything decent to write about. I have read through all of the news alerts I receive, and newswire's I subscribe to and there is nothing I can find interesting to write about. I don't wish to write about private equity. The FT has at least seven articles on private equity or private equity deals. And, I just don't wish to go there. There is only word to describe this - overheated.
So, in a rare, rare day in the life of Shamsa - I am at a loss for words or commentary. Therefore, will leave you with silence and an empty page....perhaps, you can doodle a little in the space below:
Hope that was fun and only one small comment to make - Congrats to Mike Rake for his appointment as Chairman of BT. Mike is the Chairman of KPMG, who were kind enough to give me my first job in the world of business!
16th Feb: For whom the bells toll: warnings for both old media and private equity
I assume everyone has read For Whom the Bells Toll by Ernest Hemingway? Well Mr. Hemingway, thank you for the title for my post today.
My post examines two warnings that were issued yesterday. The first was by IBM to the world of old media and the second, by Jon Moulton to the private equity industry. I believe that both of these warnings are important "Call to Arms" - alright, that will be the last reference to Mr. Hemingway's writings for the rest of this post!
The First Warning: Old v. New Media: May Cost Billions
In short IBM has released a new report, Navigating the media divide, which warns of a looming crisis with old and new media on a collision course over how and where content such as TV, news and user-created will be carried, and says billions of dollars in revenue are at risk. It notes that "the current clash between traditional and new media has reached a fevered pitch," and "industry incumbents are responding - but perhaps not quickly or completely enough. While they are fighting an escalating competitive battle on this front, traditional media cannot ignore the impending division in its own ranks." Steven Abraham, global industry leader, IBM media and entertainment, argues the music industry had already demonstrated the dangers of mismanaging the transition. IBM estimates that the music industry lost between $US88 billion ($114 billion) and $US190 billion in its transition to digital," Mr Abraham said. "Television and film companies will be next if companies don't systematically navigate the media divide. Now is the time to determine changes in business models, innovate and re-evaluate partnerships. Media companies must take action before it is too late."
IBM conducted the study, interviewing senior media and internet industry leaders and analysing factors shaping the industry. It found new forms of media will grow from 11 per cent to 18 per cent of total market revenues over the next four years, with new media growing at five times the rate of traditional media. For the full report refer to http://www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1026258?cntxt=a1000062
The Second Warning: Private equity "near the top of a crest of a wave" - ie overheated
Jon Moulton, the head of one of Alchemy warned yesterday that his sector is now "near the top of a crest of a wave" - which, when it breaks, is likely to cause some businesses to fail. Private equity and the primary players have been frequently discussed in this post as have the leveraged deals they back.
Overheated
In Europe alone last year, £118bn was spent in private equity takeovers, up 41% on 2005. But experts in the City, including some in the banks that lend to the private equity firms, are increasingly worried by the levels of debt being taken on - especially when interest rates are tipped to rise. Jon in an interview with Wake up to money, said he believed the market was overheated. "I don't think it's a bubble, but it's certainly getting a bit near the top of a crest of a wave," he said. "The debt levels have been rising very rapidly in the last few years."
Jon said there were two main scenarios for companies over-burdened with debt. "If there's nothing else wrong, it just gets restructured and it doesn't have much effect on the business or its employees. That's the benign scenario," he said. "If a company has too much debt, stops investing, runs itself to the point where it can't even buy enough stock to run the business, then you have bankruptcies. "Then you will have unemployment coming out of it and business failures."
Concluding thought:
You may or may not buy into either of these warnings. As a keen observer of both media and private equity - I certainly do! In either case, have a fabulous weekend! Oh and one last thing, dear sis - bravo and well done, if you read this blog that is, which you probably won't!
Feb 14th: Google's in hot water!
Today's post is all about Google as they are a bit in hot water and given its Valentine's day and the propensity of a few individuals to land themselves into hot water on this day, I thought it was a fitting post.
First up, media firms including News Corp., Viacom, Sony, NBC Universal, Disney and Time Warner have accused Google of enabling piracy by selling keyword ads for sites that offered illegal movie downloads, The Wall Street Journal reported on Monday. Although, Google was not named as a defendant in the companies's lawsuit - the website operators who were named have pointed their finger at Google. For all the details, please see below. Secondly, on a related note Google will be appealing the Belgium Court's ruling that it infringed on the copyright laws of the Belgian papers. Refer to the Red Herring article in abridged form below, or refer to the full article here: http://www.redherring.com/Article.aspx?a=21277&hed=Google+to+Appeal+Belgium+Ruling. This article is very much worth reading, as it gives you an insight into how Google thinks about these matters.
12th Feb: The MusicStation: a new downloadable music software service by Omnifone coming to a phone near you
The MusicStation: new down loadable music software service coming to a phone near you
The iPhone has been served notice or at most an invite to a formal duel by a downloadable service called MusicStation, that will work across mobile phones. The MusicStation service enables users to search for music, download and play music on their mobile and Mac or PC, create, manage and share playlists and tracks with the MusicStation community and view the latest music industry news. MusicStation automatically stores a user’s favorite tracks on the phone’s internal or removable memory. Unlike the iPhone, which currently requires users to download music via their PCs, users of MusicStation can download tracks over the air, giving users instant access to new music at any time, irrespective of their location. And, unlike Apple’s initial release of iPhone, MusicStation will work on both 3G and most 2.5G phones, covering about 75 percent of all mobile phone handsets sold in Western Europe and about 50 percent of those sold in Asia Pacific. Downloaded MusicStation tracks and user playlists are also stored on the operators’ networks so that if a mobile is stolen, lost or upgraded, the replacement handset will automatically restore the same music experience the first time MusicStation is switched on. You can read more about it here:
Mobile Industry Announces Answer to iPhone, RedHerring, Jennifer Schenker: U.K. start-up’s technology will power a new music service to be launched by 23 mobile operators. February 11, 2007
BARCELONA – The mobile industry will on Monday announce its answer to Apple’s new iPhone, an all you can eat over-the-air full track music download service called MusicStation, that will work across mobile phones from most manufacturers and be launched by mobile operators in 40 countries around the globe. All four major music labels have agreed to release their digital music catalogs to MusicStation and 23 mobile operators in Europe and Asia representing some 690 million customers have already committed to using the service, said Rob Lewis, the 37-year-old British serial entrepreneur who is behind the service. Mr. Lewis and three partners are the co-founders of London-based Omnifone, a U.K. start-up which has been operating in stealth mode for four years. Omnifone has chosen the 3GSM conference in Barcelona, an annual industry trade fair, which is expected to attract some 60,000 visitors this year, as its coming out party. It is billing the MusicStation as the mobile industry’s answer to the iPhone, a new Apple phone that is expected to go on sale in the U.S. this June for $599 and appear in European stores in November. The iPhone, which is controlled by a large touch screen, plays music, surfs the Internet and runs the Mac OS X operating system, has served as a catalyst for the mobile industry. To date, most mobile operators have failed to captivate consumers with their mobile music offerings, most of which are complicated, expensive and slow. Most people still store their music libraries on other devices, to the chagrin of mobile operators who are all desperately searching for ways to make more money from data services as voice revenues decline.
Omnifone claims its user interface and functionality are virtually identical across all manufacturer’s handset models, providing the same user experience on every handset. And, operators have taken the unusual step of agreeing to brand the service MusicStation no matter who is offering it and to promote the service heavily, even taking out TV ads to rival Apple’s publicity campaigns. By arming the approximately one billion new mobile handsets sold each year with a pre-loaded, consumer friendly, and affordable way of downloading music, Omnifone says it believes it can give Apple a run for its money in digital music. "We will get there first in almost every territory,” says Mr. Lewis.
The first operators to announce rollout agreements for MusicStation will be Telenor, which has some 80 million customers across the globe and Vodacom, global operator Vodafone’s operator in South Africa. Four more networks will be launched across major territories in Western Europe and Asia Pacific in the second quarter of 2007, Mr. Lewis said. Operators will sell MusicStation as a subscription service to access music from all the major labels and independents. Pricing in the U.K, will be ₤1.99 per week for unlimited downloads with European pricing set at €2.99 per week. A premium service will offer unlimited download for a subscriber’s mobile and Mac or PC desktop for ₤2.99 per week in the U.K. and €3.99 per week across the rest of Europe. The service is expected to boost the revenues of handset manufacturers, mobile operators and the music industry. Although the software that powers MusicStation can be downloaded over the air, the user experience is better if it comes pre-loaded, Mr. Lewis said. For mobile handset makers the idea is that when European or Asian consumers walk into a mobile phone store and ask for an iPhone the salespeople can say they don’t have it but can offer a whole range of new phones, including some of the cheapest, that will give them an iPod-esque type experience. The hope is this will drive new handset sales in saturated markets.
Mobile operators, who today make very little money from music services, also stand to benefit. Vodafone, for example, offers music to less than a million of its customers who use 3G and these customers only download an average of six tracks per year, says Omnifone CEO Mr. Lewis.
The idea is to get the majority of customers using the service every week. The volume is expected to add zeros to the bottom line of mobile operators. Music labels also see this as a positive step, because it gives them new avenues for selling digital music in addition to Apple. “The worldwide potential of the MusicStation platform and its ability to make music instantly accessible to consumers via their mobile phone is enormous,” Rob Wells, senior vice president, digital, for Universal Music Group International, said in a prepared statement. He went on to call MusicStation “one of the most consumer friendly and secure platforms we have seen.” Omnifone offers its own proprietary digital rights management system. Integrated billing and access to music catalogs is expected to be aided by the announcement Monday of an agreement with a Nasdaq-listed music aggregator that it refused to name on Sunday. Chris Coffman, a wireless analyst in the London office of Informa who had been prebriefed on MusicStation points out that other start-ups, such as the U.S.’s Groove Mobile, have tried similar initiatives. These companies have struck deals with music labels and promised a good user experience but the services “haven’t really jelled together so when someone comes along and says ‘well we have it all’ I am somewhat skeptical.” Mr. Coffman says. Still, says Mr. Coffman, Omnifone could have a late mover advantage. One of the main reasons that previous attempts failed is that operators didn’t price and market the services correctly. With the iPhone pushing the industry to react, Omnifone may have gotten its timing right, Mr. Coffman said. Analysts say subscription services have not worked well to date but that could also change.The ability to migrate between different mobile devices and between different operators and take your content with you is pretty appealing,” said Matt Hatton, a wireless analyst with The Yankee Group tech consultancy. “The price point for the service is also pretty reasonable,” he said.But “the big question is whether they can sell it to consumers and what the user experience will be once this is actually running live with a fair number of users,” adds Jonathan Arber, a wireless analyst in the London office of Ovum, another tech consultancy.
Deal to watch:
MyTravel, the £1.1bn UK holiday company, and Thomas Cook, its privately-owned Germany-based rival, are in advanced discussions about a merger of equals that would create a global powerhouse of tour operators. The deal is likely to be announced as early as Monday. The two companies were working on the final details. The exact structure of the transaction remained unclear but MyTravel shareholders would receive shares in the combined group
9th Feb: Jobs "music manifesto" gets slapped down, 73% of U.S. Companies Say They'll Advertise in New Media, and MyMovie MashUp!
Steve Jobs: Slapped down by Edgar Bronfman, CEO of Warner: A case of sour grapes?
73% of U.S. Companies Say They'll Advertise in New Media
- An overwhelming majority of respondents (87.4 percent) believe that the pace and scope of innovation in the media landscape inspires creativity.
- Seventy-three percent of respondents said that one to 20 percent of their budget is reserved for experimentation and new media properties. Significant, however, is the finding that 12.37 percent of respondents list 21 to 40 percent of their budget as reserved for these items.
- In 2006, the most expected innovations in the media landscape were 1) the availability of TV programs on the Internet, 2) the mass adoption of text messaging in the United States, and 3) the importance of social media/networking as part of the communications plan.
- In 2006, the most surprising innovations in the media landscape were 1) the rush to Second Life virtual community space, 2) the rise of YouTube and 3) the popularization of mash-ups or Web applications that have more than one source.
- When asked about approaches to media planning in the coming year, respondents ranked "I am always open to new ways to use traditional media" highest (at 78 percent), with "the right media mix almost always includes a balance of traditional and nontraditional media" (at 75.5 percent), and "the search for new media properties to grow my brand never stops" (at 57.7 percent) second and third highest.
A warm welcome to MyMovie MashUp
Finally, MySpace is to enter the world of movie production. It has launched a MyMovie MashUp, a £1million feature film project which will draw entirely on the creativity of MySpace users. The MySpace community will help dictate the entire creative process of the film including finding the director, naming the film, interactive script editing, online casting, sourcing music for the soundtrack, marketing, and distribution. The film is scheduled for a full theatrical release in 2008. Launched today in partnership with Vertigo Films and Film4, stage one of the project is the search for the film's director. Budding directors are invited to submit a short film via www.myspace.com/mymoviemashup before 27th April, 2007. The panel will shortlist three finalists; the final decision is then down to MySpace users who will vote to choose the director who will immediately begin production of their £1million movie. Jamie Kantrowitz, SVP Marketing and Content, MySpace Europe, said: "MyMovie MashUp embodies the creative spirit of MySpace and the way people are already using community for collaboration and content distribution. We hope to inspire thousands of people to contribute to this unique project that is mass participation in movie making," The announcement of MyMovie MashUp marks the launch MySpace Film in the UK, a new channel on MySpace intended to provide a creative platform for the film community. MySpace Film gives independent filmmakers with a suite of networking tools that includes the ability to upload projects such as documentaries, shorts, animated films and other projects to a newly created "Filmmaker" MySpace profile, creating an interactive 'online film festival' on MySpace.
Source: NetImperative, Feb 9th, 2007
