30th May: Google-Doubleclick, online advertising, and EMI
A rather hurried post this morning, as I need to get to a few meetings. The analysis in my posts which I quite enjoy has of late been a little on the thin side. But, that should go back to normal; once things are a bit more settled.
This morning, quite a few things caught my eye - from the US probing the Google-DoubleClick deal, I am unsuprised but also believe that the deal will go ahead. I have provided the story below. The importance of such deals is highlighted by a related comment by Sir Martin over at WPP - who again discusses the shift of advertising spend from traditional platforms to the internet; this time noting the impact on television, rather then papers. Well worth a read. Also, Guy Hand's bid for EMI gains steam - good luck with that!
Finally, I have been receiving some quite nice feedback with respect to this blog and its good to know it is being read. As for the reader who noted that although I seem preoccupied with widgets but do not have one on my website or my blog. I am working on it! All major works of art, take time. Consider the number of studies done by the great Artists of our times, before they arrive at the "final" masterpiece. Life, like art, is just that, one keeps trying until one hits it right. Even then, I have read that all great Artists - know every fault that lies in their paintings. Hmm...all this talk of painting has me missing my paints & brushes & plain empty canvas.
Perhaps, this is the summer I pick up my brushes and start painting again. That said, my artistic efforts are for my eyes only!and 10 companies.
28th May: Happy Birthday - HR! and sharing this amazing story an ants!
Happy Birthday, will always stand by you, or try to anyway, might sometimes have to sit, jump, run, skip etc.
http://www.youtube.com/watch?v=VJ7Zi6jg8wM
And sharing the story on ants, although, it has nothing to do with media, venture etc. - as its just damn amazing!
How instant road repairs keep army ants marching, Monday, May 28, 2007, Belfast Telegraph.
A new study has shed light on the selfless heroism and teamwork displayed by army ants, long considered to be among the most belligerent small carnivores in the animal kingdom.
New research has found that the ants, on their way back to their nest after a feeding trip, co-operate to plug potholes on bumpy rainforest floors, "selflessly" using their bodies to smoothly pave the way for their fellow ants.
The insects, which often forage in large groups, even "choose" which of them is best to fit in different-sized gaps, and co-operate over how to fill bigger holes, according to a report publlished in the academic journal Animal Behaviour.
he trait means large groups of foraging army ants (Eciton burchellii), travelling in groups of up to 200,000, can move between their prey and nest more speedily. The sometimes-perilous rainforest route passes over numerous pitfalls, such as leaves and branches littering the forest floor.
Professor Nigel Franks of Bristol University, one of the authors of the report, said: "Every road user who has ever inwardly cursed as their vehicle bounced across a pothole, jarring every bone in their body, will identify with this story.
"When it comes to rapid road repairs, the ants have their own do-it-yourself highways agency." Army ants are characterised by their unique nomadic behaviour and carnivorous diet. The ants are known as "swarm raiders", foraging in dense fan-shaped swarms that can span several metres across. The ants subdue prey with powerful stings, and pull off their legs and antennae using their mandibles. They take their catch home to their nest to feed their young.
During their research, the scientists inserted wooden planks drilled with a number of different sized holes into the path of a colony of army ants' foraging route in Panama.
A Bristol University biologist, Dr Scott Powell, who worked on the study with Professor Franks, said: "The ants have a very large size range within their colony, measuring from 2mm up to 1cm (0.08-0.4in)."
"When the ants bump into a hole they cannot cross, they edge their way around it and then spread their legs and wobble back and forth to check their fit. As the traffic diminishes, the ant pops out and heads home. If they are too big, then they carry on and another ant will come along and measure itself in the same way. This carries on until an appropriately sized ant plugs the hole."
The researcher added that at this point, the ant becomes a "living surface", staying in place for hours at a time while thousands of foragers walk back and forth across the trail.
Military discipline
* Army ants are nomadic and make temporary nests from their own bodies. The ants form walls by fastening to each other using their jaws and claws.
* Nests are hierarchically divided. The larger soldiers focus on defence, the medium-sized workers forage and the smallest tend the queen's brood.
* The ants migrate to find food, "marching" at night. Acting together, they can kill lizards, snakes, chickens, pigs, goats, scorpions and even birds.
* The ants begin life as a microscopic egg, which develops into a larva lacking eyes or legs. The larva pupates, emerging from its cocoon as an adult.
26th-27th May: The Rules of sidewalk etiquette and how to be most popular in the office
I came across these and they are quite entertaining:
Rulesof sidewalk etiquette - http://youtube.com/watch?v=vgMnlGOw7wM
How to be most popular in the office - http://youtube.com/watch?v=n1DQjuW-IXU&mode=user&search=
Enjoy!
24th May: STOP PRESS: imdad goes live! & the Jail House Rock!
Dear All
Imdad is live! You can check it out here at http://www.imdad.co.uk - it should be accessible to all, unless your service provider requires a 48 hour lead time. A big and I mean very big - thank you to the Gurus team, who can be contacted at http://www.gurus.co.uk.
I will continue to blog at this site, as well I am a big fan of etribes! As for today however, I have gone through most of the news in the world of media and frankly, can't find anything more exciting to report then the fact that my site has gone live. Of course, I am utterly and completely biased. As for the song of the day, rather strangely and oddly, I awoke to Elvis Presley's Jail House Rock - http://www.youtube.com/watch?v=zRu3tw9fYxE - no, I have no idea why. But, Elvis...not a bad start to the day.
Shamsa
23rd May: Teenagers today are law abiding & "Romeo, Romeo, wherefore art thou Romeo?"
I had a recent conversation with someone about teenagers and their ethics on downloading digital entertainment. We both thought that teenagers would prefer to be law abiding then not. As a consequence, it was interesting to see that a recent survey the number of U.S. youth (ages 8-18) illegally downloading copyrighted works off the Internet has fallen 24% in the past three years, according to a new survey conducted by the Business Software Alliance (BSA), a trade group representing copyright holders. In 2007, 30 percent of youth admitted to downloading music without
paying, compared to 32 percent in 2006 and 53 percent in 2004. The press release is provided below for your reading pleasure:
But, first, MySpace provides a new medium for an old master. In other words, Shakespeare's Romeo & Juliet finds itself a new medium, try MySpace. Many schools have banned the social networking site, and the House of Representatives passed a bill last summer to prohibit unsupervised use of MySpace and similar sites in schools.
But in Portland Oregon, Lutheran teacher Koty Zelinka decided to embrace the technology, and assigned a "Romeo and Juliet" MySpace project to the 40 students in her freshman and sophomore English classes. The play's characters fought out the Capulet-Montague feud online, with Zelinka's students creating profiles for the play's characters and updating the sites as they read.
Zelinka hoped to help students understand the play's characters using a medium they're familiar with and excited about. Almost 90 percent of Zelinka's students already had their own MySpace pages. Students in groups of three or four created a Web site for a character, with pictures at the top, lists of hobbies, blog entries and a space where other characters could comment. Claire Danes, Leonardo DiCaprio and other actors from the 1996 film version were popular choices for photographs. Romeo's chaste lover Rosaline listed "Never Been Kissed" as one of her favorite movies. Juliet liked "The OC."
"I just figured Juliet's kind of like a regular teenager," said Anna Kramer, 15. " 'Omigosh, he's so hot,' kind of drama."
Poor Romeo, exuding emoness before emo was even invented, had a profile decked out with a black background and animated falling stars. The page played Daniel Powter's song "Had a Bad Day" when it opened. His "About Me" section whined that after Rosaline rejected his affections he "could only find comfort in the shadow of the loneliness in my soul."
The goal was for students to write and think like the character, Zelinka said. She thought of the project after noticing MySpace profiles for TV show characters. "Romeo and Juliet" had a wealth of well-developed personalities, so she thought it would be suited for the project. It was free, easy to set up, and helped connect 400-year-old literature to the lives of students today, she said.
So in the immortal words of Shakespeare "Romeo, Romeo, wherefore art thou Romeo?". I think Romeo might have trouble responding, though -- according to his latest blog entry, he's been banished to Mantua. Please note this blog has been heavily sourced from William Shakespeare and The Oregonian article written by Diana Samuel on May, 22nd 2007.
Song of the day in honour of Romeo & Juliet and the arrival of summer:
Summer Nights from Grease: http://www.youtube.com/watch?v=UaEYepgLE2M
WASHINGTON, May 22 /PRNewswire-USNewswire/ -- The results of a recent nationwide survey released by the Business Software Alliance (BSA) show that illegal downloading of digital copyrighted works by youth (ages 8 to 18) has dropped by 24 percent in the last three years. The survey, first conducted in 2004, indicated that 60 percent of survey participants reported downloading software, music, movies, or games without paying for it; in 2006 the percentage of those who downloaded without paying dropped to 43 percent; and in 2007 the percentage decreased to 36 percent. Youth report that parental oversight is a significant motivator and key influencing factor in their online behavior.Illegal Downloading Among Youth Drops, Reports New Study
When the young survey participants were asked what worries them about downloading digital copyrighted works, such as software, music, movies or games, from the Internet without paying, the top responses were fear of accidentally downloading a computer virus (62 percent), getting into legal trouble (52 percent) and accidentally downloading spyware (51 percent). Fear of getting in trouble with parents ranked fourth at (48 percent), increasing from 40 percent in 2006.
"This study indicates that parents represent a growing and effective influence on the online practices of youth," said Diane Smiroldo, vice president of public affairs for BSA. "But, while decreases in downloading are encouraging over recent years, youth are still taking too many risks online. We hope that parents continue to take seriously their role in helping their children make the right choices online."
When comparing the 2007 study results with the 2004 and 2006 surveys:
-- There was a decrease in the percentage of kids downloading software
without paying for it; 11 percent reported illegal downloading in 2007,
down from 14 percent in 2006, and in 2004 at 22 percent.
-- In 2007, 30 percent of youth admitted to downloading music without
paying, compared to 32 percent in 2006 and 53 percent in 2004.
-- 8 percent admitted to downloading movies without paying in 2007, down
from 10 percent in 2006 admitting downloading without paying, and 17
percent reporting so in 2004.
Among other key findings:
In the 2007 survey, comparing young people without parental rules to youth with parental rules, kids are more likely to:
-- surf the Web (87 percent without parental rules vs. 63 percent with rules);
-- buy something (55 percent without parental rules vs. 19 percent with rules);
-- download software (52 percent without parental rules vs. 19 percent with rules); and,
-- download music without paying a download fee (47 percent without parental rules vs. 16 percent with rules).
"This study indicates that parents have a strong influence on how their children will make decisions about appropriate Internet behavior," said Smiroldo. "Fortunately, the survey found that more than half of the students have been warned by their parents about dangerous, illegal online behaviors. Imposing rules and ensuring your children abide by them may be an old- fashioned concept for cyberspace, but it works."
22nd May: EMI bought out by Terra Firma
EMI has accepted a buy-out offer from Guy Hands, Terra Firma private equity group. The deal was led by Michael Hedegaard who now has the unenviable task of improving the core business and specifically addressing the underperformance issues. As well moving the company into a digital music future.
If Terra Firma can successfully execute a digital plan, EMI might be Guy's best bet yet. Knowing Guy, I have no doubt that Terra Firma will succeed. I wish him and his team many kudos for a job well done and much luck for the future.
Also, many many rumours doing the round that Yahoo is interested in acquiring the "hottest overseas technology prospect" site in other words Bebo as titled by The UK Technology Innovation and Growth Forum.
Anyway, thats it for me - I have another very long day ahead and need to get motoring!
21st May pm: A day of work
Today was just a fine day, the website is coming together and the Gurus team who has helped to put it together it have done a fabulous job, I met with a great digital music focused start-up who I think might be onto something and finally, my soon to be move is now well on the way. I don't do things by half measure so by June 1st, I will have moved both virtually and physically and launched Imdad - God willing. I feel a certain level of satisfaction. Of course it can all go to hell in a hand-basket in the blink of an eye. But, for now - God's in heaven and all is well with the world.
18th May: WPP acquired 24/7 Real Media
Short post today -
Global Ad Agency WPP Acquires 24/7 Real Media for $649 Million, Digital Media Wire
London - Global advertising firm WPP announced on Thursday that it will acquire search engine marketing provider 24/7 Real Media for $649 million.
Founded in 1995, New York-based 24/7 Real Media provides search engine marketing, consulting and optimization for clients including Google, Yahoo and MSN. The company reported 2006 revenues of $200 million, up 43% from the previous year.
London-based WPP's holdings include ad agencies including Ogilvy & Mather and Young & Rubicam.
The deal, expected to close in the third quarter, follows similar recent acquisitions including Google's $3.1 billion purchase of DoubleClick and AOL's deal announced yesterday to buy Germany's Adtech.
16th May: Acquisitions, the like and Alphaville - forever young!
Media seems very much in the grips of intense M&A activity. Its actually amazing to watch and I am grateful for the fact that I have the opportunity to watch and to a small extent be involved in this ever changing landscape. Despite, some concerns around some of the price tags associated with recent acquisitions; on the whole I feel that there is great opportunity in the space that is called consumer media. I further, look forward to Imdad in some small way making a contribution. It remains to be seen how? Yet, everyone has to start somewhere!
Anyway, much of the news is focused on Thomson Corp acquisition of Reuters for $17.2B, creating a company that will replace Bloomberg as the world's largest provider of financial news and information. The deal has won approval from the Reuters Founders Share Company, a group set up to safeguard editorial independence that had the power to block the acquisition, but must still gain shareholder and regulatory approvals. Reuter's chairman, Niall FitzGerald said "When the facts are examined as against the myths about the market, the regulatory authorities will say that not only is this a pro-competitive move, but just the dynamics of the market themselves are making it extremely competitive,". The new company will be called Reuters, and see expected revenues of more than $11 billion. Neither Thomson nor Reuters would comment on the possibility of layoffs after the deal closes.
Otherwise, my poor friend Rupe's (Murdoch) offered the Bancrofts a seat on the News Corp. board and asked to meet with the family personally in his effort to acquire Dow Jones. After an internal conference call, the Bancrofts seem unmoved. Poor Rupe's, this might be one of the few times he is stymied in his efforts. I think I heard an audible gasp from all those non-Rupe fans. However, one must give the man his due, he has built an extremely impressive empire from very humble roots. Thus, no sour grapes, please! Please see below items that are worthy of being watched in the media space.
But, first a moment to consider that major record label EMI Music which has announced that it has acquired former Beatle Paul McCartney's entire solo career catalog, which it plans to make available for the first time through digital services free of digital rights management (DRM) protections. The deal includes McCartney's releases with the band Wings, and his newest, "Memory Almost Full," which is set for release on June 4. This is very big news, as music will be released free of DRM - watch this space to see what other player's do.
Acquisitions & the like:
o Ron Burkle bought the Primedia Enthusiast unit for $1.2 billion and now owns 70 titles like Dressage Today and Popular Hot Rodding
Dulles, Va. - Looking to bolster its presence in the mobile advertising space, AOL said on Tuesday that it has acquired Boston-based Third Screen Media, the operator of a mobile advertising network and provider of a mobile ad-serving and management platform.
Milan - European online and mobile entertainment distributor Buongiorno announced on Tuesday that it has agreed to acquire London-based Flytxt, a provider of mobile marketing and advertising services, for about $5.4 million.
Mountain View, Calif. - Coupons Inc., a provider of printable coupon marketing and technology services, said on Tuesday that it has acquired San Diego-based Consumer Networks, the operator of Boodle, a service that provides newspapers with printable coupons from national brands and local retailers to feature on their websites.
o TiVo Debuts "Swivel Search" for Broadband-Connected Subscribers
Alviso, Calif. - TiVo on Tuesday launched Swivel Search, a new feature for broadband-connected TiVo owners that allows them to search for programs by starting with a program they like, and using elements of that program to generate suggestions based on program name, actors and viewers' feedback. The system also uses topic-related tags to help describe programs. TiVo said the service is currently being deployed to broadband-connected Series2 and Series3 subscribers today.
Los Angeles - News Corp.'s MySpace on Tuesday announced the launch of new branded video channels from various news and lifestyle brands. MySpace Video will now feature specific channels from providers including National Geographic, The New York Times, IGN Entertainment, The Daily Reel and VBS.tv.
New York - The Orchard, a digital distributor of independent music, announced that it has launched a tool on its website that allows music supervisors to quickly browse and purchase rights to music from the company's catalog for commercial use. The Trackdown service will allow for search of independent artists' songs in The Orchard's catalog using technology from MusicIP, which has a database of over 29 million songs analyzed for acoustic and social relationships. The companies said they are also collaborating on a consumer version of the service with Web and music device access.
Miami - A pair of virtual entrepreneurs have teamed to launch the Virtual Worlds Academy, which will promote the creative community in such worlds and host the first Virtual World Awards, to "recognize excellence and originality in virtual reality." Jon Jacobs (aka "NeverDie" in the Entropia Universe) and Ailin Graef (aka "Anshe Chung" in Second Life) both operate successful virtual businesses within their respective virtual worlds. "As the online community develops we think it's essential to document its history and its forefathers," said NeverDie. Submissions for the first Virtual World Awards will be accepted online through Nov. 15, with nominations to be announced in February 2008.
15th May: FOS - Thanks & video downloads doomed
According to a report from Forrester Research, the market for paid video downloads is dead on arrival, with revenues expected to peak this year at $279 million before advertising-supported models come to dominate the space. See below for press release. Definitely worth a read. Also, thanks to the FOS and especially, D - for being a great ear. In other words, for listening to me vent over my OCD!
Forrester: No Future For Paid Video Downloads
CAMBRIDGE, Mass.--(BUSINESS WIRE)--The paid video download market is a dead end, according to a new report by Forrester Research, Inc. (Nasdaq: FORR). Forrester estimates that paid video downloads will peak in 2007, generating $279 million in revenue, up from $98 million last year. Instead, advertising models will drive the online video market.
In the past year, companies such as Apple, Amazon, Microsoft, and Wal-Mart have begun offering consumers the ability to download television programs and movies to own or rent. But a recent Forrester survey showed that only nine percent of online adults have ever paid to download a movie or TV show. Furthermore, an analysis of these consumers showed they are a niche of media junkies willing to spend heavily on such content; they do not represent the vanguard of a rush by mainstream consumers. Without mainstream viewers joining the party, the video download market will not grow fast enough to support the ambitions of all the companies involved.
“The paid video download market in its current evolutionary state will soon become extinct, despite the fast growth and the millions being spent today,” said Forrester Research Principal Analyst James McQuivey. “Television and cable networks will shift the bulk of paid downloading to ad-supported streams where they have control of ads and effective audience measurement. The movie studios, whose content only makes up a fraction of today’s paid downloads, will put their weight behind subscription models that imitate premium cable channel services.”
Other implications of such a market shift include:
- Set-top boxes give in to Internet video. Apple will have to rethink Apple TV, shifting it from a closed pay-per-view system to an ad-supported, broadband service provider model that puts YouTube videos as well as ABC.com TV shows directly on the TV. At the same time, Internet-friendly set-top boxes from Cisco and Motorola will give Comcast and Time Warner a way to offer competing Internet-based, ad-supported content.
- Television networks allow ad-supported downloads of prime-time TV shows. New technology such as the recently announced Adobe Media Player will allow consumers to download video for playback without losing the ads that were sold with the video. Expect ABC to go first in 2008, with other networks quickly following.
- Paid video download pioneers CinemaNow and Movielink shift their expertise to partner with satellite and telco service providers provide video-on-demand (VOD) content without a huge investment in VOD infrastructure.
- Streaming of ad-supported TV shows eclipses DVR use by the end of 2008. Advertisers will cheer because this shift thwarts ad-skipping; consumers will applaud this breakthrough because it’s cheaper than a DVR and is more flexible.
“To attract mainstream viewers, media strategy executives must develop new business models and delivery mechanisms to make video downloading ad-supported and geek-free,” says McQuivey.
The report “Paid Video Downloads Give Way To Ad Models” includes recommendations for media executives and is currently available to Forrester RoleView™ clients. It can also be purchased directly at www.forrester.com/Research/Document/Excerpt/0,7211,42291,00.html
About Forrester Research
Forrester Research, Inc. (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. For more than 23 years, Forrester has been making leaders successful every day through its proprietary research, consulting, events, and peer-to-peer executive programs.
© 2007, Forrester Research, Inc. All rights reserved. Forrester is a trademark of Forrester Research, Inc.
