CIQ Headlines for February 12, 2007

CIQ Headlines

Ford Increases Branded Entertainment Push— (Media Post) Branded entertainment manager says there are 104 projects in the works. CIQ: This is evidence of corporations struggling to find a new advertising model. But it’s easier to insert cars into movies, than, say, post-its.

Advertising Is Killing Itself– (NYT Magazine) From yesterday’s magazine, the writer cites the ad for Rolodexes on the bottom of the gray bins at airline security as evidence of oversaturation. CIQ: Some new thinking about advertising is needed as dozens of new content models spring up like mushrooms. Current thinking seems to be, “the more, the more.”

One in Five Go from Bowl to Site–(Media Post) And this, despite the fact that most thought the Superbowl commercials were really not that great. CIQ: Perhaps here we have the thread of a new ad strategy. Find ways to capture attention, then engage truly interested consumers online.

CIQ Headlines for February 9, 2007

CIQ Headlines

Joost Model Counters YouTube–(Financial Times) Brought to you by the peer-to-peer founders of Kaza, Joost founders “have bravely ignored the totems of the internet-video boom. Chief among these fashions is letting users upload anything they want.” The idea instead is allowing people to watch TV shows online interrupted by advertising. CIQ:Everything old is new again.

MySpace Is Biggest Money Maker For Fox Interactive— (eMarketer) MySpace ad revenues were $190 million in 2006 and rose to $525 million in 2007. CIQ: The ad-supported content model. Any questions?

iMedia Summit Free For All:(Click Z) Times chief wonders if print will be around in 5 years. Murdoch expects internet revenues to grow from 1 percent to 10 percent of total in 3-5 years. CIQ: How people do talk over a luxurious free lunch!

CIQ Headlines for February 8, 2007

CIQ Headlines

5 Trends in Online Content–(Marketing Sherpa) Sherpa reports from a poll of online media and content companies. Trends include search, paid avertising, and community. CIQ: It’s unclear how content providers will take advantage of the growing popularity of online video.

Newspaper Site Visits Grow 22% in 2006–(BtoB) That puts the total audience at over 56 million for online newspapers. CIQ: Traditional publishers must think fast about how to make this audience as profitable as its offline one, which is going away.

Commodizing Creative— (NYT) Don’t call the ad agency. Use one of these technology tools to make or customize your ad. CIQ: We think this has huge implications for the delevelopment of content, not just advertising.

How Do Artists Get Paid?

CIQ Trends

First, let’s get one thing straight. Most artists are already starving. So talking about illegal file sharing as if it is going to spawn hoards of starving artists is just plain dumb. Yes, it possibly– that’s possibly— puts into jeopardy the paycheck of a minority of artists who currently get paid (most not too well) by large media conglomerates. I am an author of both fiction and non-fiction. So for me, this is not just an abstract concept.

Second, we have got to stop trying to solve new problems with old tools. I am not going to run my company’s finances using an abacus, nor navigate a boat with a sextant. For centuries what has protected content is the pain-in-the-ass factor. Why don’t I scan in and OCR The DaVinci Code and distribute it? Because it’s a pain in the ass.

All lock-and-key technologies rely on this same pain-in-the-ass concept. Why don’t you undo the lock? Finding the key is a pain in the ass.  DRM is just an electronic lock and key. But here’s the catch in 2007. Hacking into a DRM system to find the key still is a pain in the ass, but once you do find it, distributing it around the internet is cake. For everyone but you, the pain-in-the-ass factor is gone.  And, as Steve Jobs noted in his recent call to abolish DRM, this results in an expensive game of one-upsmanship.

So if we abolish DRM– which I support– how will artists get paid? I see two viable possibilities. First, advertising. When I say this, book people (publishers & agents) look at me as if I am Lord Voldemort. Book people can be so prissy. What on earth is wrong with an ad on the inside pages of a book? Imagine the CPM on The Da Vinci Code! And books aren’t perishable like newspapers or TV shows. Similarly, embed short radio-style ads every X number of songs on an iPod. Let iTunes work on how to enable that instead of the constant DRM battle. But what if I don’t want ads. We have a solution for that.

It’s called the paid cable model. Take You Tube, which is now sharing revenue with its user base. I’m talking about the same idea. If you pay a subscription to your cable company, you can access all kinds of content for free. The cable company shares a portion of the revenue with the site publishers.

We have to admit that DRM just doesn’t work and go on to other things that might.
 

CIQ Headlines for February 7, 2007

CIQ Headlines

Jobs Call to Abolish DRM –(Apple Site) The problem: Music bought for the iPod can only be played on the iPod, leaving Apple open to accusations (and lawsuits) of monopoly. In his persuasive essay, Steve Jobs calls for the abolition of digital rights that limit the distribution of music to authorized devices. CIQ: Advertising may help solve the question of how artists get paid. See today’s article.

Hollywood Concerned About Piracy— (NYT) Stars and studios went to Washington to voice concerns about piracy. Underscoring the number of jobs a $300 million movie creates, speakers implied they were all about the little guy. CIQ: First– are you kidding? Second, take note of the article above and the music industry. Stop worrying about piracy. Start worrying about innovative solutions.

Free Downloads Bleed from Music Industry’s Veins–(Information Week) Despite law suits, 1 billion digital tracks are traded for free each month. CIQ: Can you say, “Case in point?”