Archive for February 17th, 2008
Forbes has a great in-depth look at the battle brewing between the Associated Press and its newspaper members. It covers a lot of ground we’ve already talked about - but also focuses on the collectives changing revenue picture.
For decades, the newspaper industry accounted for the lion’s share of AP’s revenue. But during the 1990s, the news agency branched out into lucrative new lines of business, including broadcast video and online initiatives, making it less reliant on revenue from print outlets.
Newspapers only account for 30% of total revenue. Broadcast clients make up 37%, and online ventures bring in 15%. While the newspaper members are struggling - the AP clearly is not:
In 2006, the most recent year that financial data are available, AP posted net income of $13.3 million, down from $18.5 million in 2005, on revenue of $679.8 million, up from $654.2 million. For comparison’s sake, back in 1990 before AP got into broadcast video or Internet ventures, the cooperative posted net income of $7.4 million on revenue of $311.9 million.
February 17th, 2008
The TV industry isn’t the only one going through the end of the analog era. AT&T Wireless and Verizon Wireless will shut of their analog voice networks Monday - signaling an end to the first generation of cellular technology. AT&T says more than 99.9% of its traffic is already digital - and they’ve been pushing to get the final converts. There is still some fallout - some home security alarms use the analog network, as do older vehicles with OnStar. And this:
Among cell-phone subscribers, the analog sunset is most likely to hurt so-called “glovebox users,” said IDC analyst Scott Ellison. These are users, often elderly, who just keep a cell phone in the glovebox in case their cars break down. They usually don’t feel a need to update their handsets.
February 17th, 2008
The Google army continued to mushroom in 2007 - with headcount growing from 10,674 to 16,805 over the course of the year, according to SEC filings summarized by PaidContent. Of those employees - a whopping 5,788 are considered R&D jobs. Google snapped up 19 companies, saw traffic go up 43% - and got 99% of its revenue from advertising.
Geesh.
February 17th, 2008
Last week, a Broadcasting & Cable editorial warned that TV newscasts could follow the way of the newspaper. This week, B&C’s Jennifer Yarter asks, “What happens when the web starts to replace the television?” Yarter said the catalyst of her column was a dinner with a group of tech-savvy 20-somethings who said they don’t watch TV or even subscribe to cable or satellite. They just watch whatever they want online. Yarter writes, “Most of these young adults are falling into a new territory of media consumption that could potentially eliminate the need for local television stations.”
Absolutely, and consider this: the only thing that most local TV stations produce is local news. Local TV news in its current form, when translated online, looks very similar to everyone else’s news. If it’s not truly original or unique, it’s a commodity (especially in aggregated environments). And as more people get their local news online instead of making an appointment to watch it on TV, revenue loss will accelerate. A solution here is to start producing original content that bridges platforms — that’s unique enough to not only to attract an audience but create fans. Fans are people who accept no substitutes. Can local TV news, by itself, create this kind of online loyalty? I don’t believe so. It will require new, innovative, locally-produced niche programming that spans TV, mobile and the web. In other words, a whole new approach. Similar to the newspapers, it will be a matter of survival.
February 17th, 2008
Here’s the way the world works: A show debuts on one of the broadcast networks - then goes online… then maybe gets a cable run. Except - not so much anymore. Web series Quarterlife started as a series on MySpace - and is set to debut on NBC later this month. But before it hits the network, MTV will get the debut - set for February 26th in the afternoon. Yes: web followed by MTV, followed by the network.
February 17th, 2008
It looks like this generation’s VHS versus Betamax battle may be over. Toshiba - which is responsible for the format - put out a statement saying it “may” pull the plug, but that no final decision has been made. Regardless of the decision - external forces have thrown it to the scrap heap: Wal-Mart said it will only carry Blu-Ray Friday - and Netflix made the same decision Monday. Target and Blockbuster also dumped the HD DVD format.
February 17th, 2008
Joining the MSNBC family, nbcsports.com relaunched this weekend as part of the parent site. The Alpha Blog details the changes, including:
What’s new? More sports videos in a new video player, NBC Sports personalities including John Madden, Bob Costas, Al Michaels, Jerome Bettis and Johnny Miller, and special content from NBC Sports’ marquee coverage of NFL’s Sunday Night Football, Notre Dame, NHL, the PGA Tour and the USGA. We’ll also have more fantasy sports coverage from Rotoworld.
The site brings all the familiar MSNBC features: customizable homepage, great video player, iPredict and First Person.
February 17th, 2008
