Posts Tagged ‘media industry’

State of the Mediasphere – Monaco Media Forum

December 10, 2008

Three weeks ago at the Monaco Media Forum Jeffrey Cole (USC Annenberg School for Communication, Director of the Center for the Digital Future) had an worth watching talk at about the state of the mediasphere. He summarized quite well the status quo of the media industry in the digital age and gave a small insight in his research, where he tries to figure out why there is only a small willingness to pay for digital content.
The average American household spent 260 Dollars per month on communication services that didn´t exist a generation ago. He thinks people are not willing to pay more on top of this and sees that as an argument for advertising as the future business model, which enables “feels like free” content. But that´s not the only reason why he sees the future in advertising, but also cause of the high potential of personalized online advertising, that will be more effective than advertising was ever before.

Another worth watching video of the Monaco Media Forum is the panel “The Revolution Will Be Streamed” with Henrique de Castro (Google), Nancy Cruickshank (VideoJug), Dina Kaplan (, Mike Volpi (Joos) and Dan Scheinman (Cisco Media Solution) moderated by Jack Myers. A very interesting discussion about the status quo in the web video industry and the potenial of the online video market especially in the area of advertising.


Medientage Munich 2008: Day One

October 29, 2008


Just back from Day 1 of the Medientage 2008 here in Munich

There is no chance to blog a conference like that in detail without going crazy, so just some things I have learnt… in bullet points, sorry.

(Update: I have added links to videos  of the panels I´m talking about. Most of them are in German, sorry.)


Panel: Customer Relationship instead of Ratings – New Driving Force in TV?

Watch the video here.

Intro speech by Niko Steinkrauß, Booz & Company:

– Three megatrends influence and accelerate each other: -> fragmentation of the media market -> advertiser under pressure -> power moves to the consumer

– Examples like P&G, Coke, Nike show that “direct customer relationships” are getting more and more important for the big media spenders.

– Only interactive and “target able” advertising platforms show growth.

– There is a rethinking in campaign controlling: Reach is not the only “thing” anymore. Performance, ROI and “interactivity” are getting more important.

– High CPMs for interactivity: Opportunities for TV 2.0?

– Let the user decide how they want to consume advertising (eg. preroll “block”? banner? ad breaks –> higher engagement –> higher advertising impact)

– Best case: Hulu

– Concerns about privacy vs. willingness to get relevant advertising –> more clarification

– Recommendations: Be a brand not a aggregator of viewers – there is more than just one platform – don´t just offer adinventory, offer solutions – cooperations between TV channels are necessary to establish new standards eg. web tv (Hulu) – overcome being just a wholesaler of adinventory and try to establish communities and capitalize customer relationships

Panel discussion:

Berg: A current Microsoft study shows that the “under 20 generation” has no interest in television anymore. They don`t arrange their spare time around TV programme anymore.

Senft: There is no cannibalization. TV and Online complement each other.

Züll: Definition of TV? Linear or non linear? TV signal or IP protocol? TV content still works. Hulu uses TV content but non linear.

Fassnacht: The user is most of the time in the new online environment overextended. Content overflow. This leads to less users. Comparsion: Product line management in the retail industry: Smaller range of products leads to more sales.

Berg: Trend – I don´t care about ratings. I want performance, I want response.

Züll: Internet usage will consolidate and focus. Every user has small relevant set of websites he visits regularly.

Guild: It´s more important nowadays what users say about brands that what brands say about themselves. The big challenge for the media: How do we play a role in the connection of client brands with the consumer conversations.

Fastnacht: Only get in contact with a consumer when he wants to. Only then!

Künstner: The learning curve in CRM in the new environment is big. A huge chance for media companies.

Berg: The transformation process from “classic TV” to “TV in the digital age” in the next 3-5 years is crucial.

Künstner: Who will design the best customer experience? Probably not one of the “old players” (See music industry and Apple).


Panel: Media, Power &  Brand: Business Models and Brand Values in the Digital World

Watch the video here.

Gerhard Müller presents some insights of the new Ernst & Young study (only German) “Medien und Marken im Web 2.0

Evsan: User generated content has to be combined with premium content. Premium content was always and will be very important in the future.

Dörrenbächer: Case: “A small world” – Exclusive niche community –> very valuable for Mercedes.

Mangold: Communication concepts and cross media solutions are very important. Display ads are not enough. Performance based marketing rules. There will be a evolution from “reach” to “risk & revenue share” business models.

Dörrenbächer: Which role will digital media play in the value chain? Standards for “measurement” are still missing. Behavioral targeting is not far enough…

Deutschmann: The “used” targeting parameters are still very simple. Basic demography targeting is still standard. Media agencies and clients aren`t able to use all the data they can get… many niches are to small to target…

A great first day.

Cloud Computing is more of a Reality than we think…

October 28, 2008

I was just thinking again about this post from Kevin Kelly a few days ago. This whole scenario about cloud computing sounds a bit “Science Fiction”… but actually it isn`t …
Even Microsoft is starting a big PR campaign now around it`s new platform Windows Azure… ” the future is cloud computing”…. so it`s going mainstream, although most internet users are still unaware of the term “cloud computing.” They are already taking advantage of it more than they know.

When we talk about cloud computing we mean an architecture by which data and applications reside in cyberspace, allowing users to access them through any web-connected device. This includes: webmail services like Hotmail or Gmail; personal photo storage services like Flickr; online applications like Google Docs and Photoshop Express; video storeage and publishing services like Youtube; blogging platforms like WordPress; social bookmarking sites like Delicious; social networks like Facebook; and of course online servers where you can backup your harddrive or any other personal files..

The PEW Research Center published in September 2008 a study stating that 69 % of all Internet users have either stored data online or used a web-based software application. If you think of the list examples above, you would think it would be even more…

… and it should be just a matter of time for people to accept that cloud computing is superior to desktop applications in all areas of software or media usage and so the hardware industry will respond on it with new devices. Mobile device of all kinds will profit a lot from this developement.

Of course people have many concerns about cloud computing like security and privacy, but there will be some solutions to give the users a “safe feeling”. …  anyway, this will be a big challenge.

So cloud computing is coming fast… what does this mean for the media industry?
A lot especially for the business models. In a cloud computing world, “owning” content is not a thing you will think about anymore, since that was part of the physical media world. You will just desire access to content. That´s all you need. So the cloud computing system and all it`s advantages for the users will push the developement to “The Age of Access“.  Ad supported content will be huge, especially cause of the big opportunities in personalized advertising. Cloud computing is the perfect and most efficient environment for personalized advertising. Social communities and social production will be more efficient than ever before. And that`s just the obvious stuff. If you read the post by Kevin Kelly you will find many more ideas for all parts of the media industry and how it will change in a certain area. I will try to do more research on this stuff…

Is Ubiquity After Scarcity The New Way To Make Money?

October 10, 2008

Paul Sweeting had a good note on this yesterday at DMW:

“Is scarcity still a viable foundation for a business model for content owners? For most of their histories, movie and TV studios relied on a strategy of limited distribution to extract maximum value from their works. Movies were released through a carefully ordered sequence of exclusive windows defined by distribution channel (theaters, DVD, pay-TV, broadcast); network TV series didn’t enter the broader syndication market for three or four years after their debut, assuming the series lasted that long. In each case, the relative scarcity of the content provided the content owner with maximum pricing power. Since the advent of digital platforms, however, ubiquity has become the name of the game, challenging content owners’ pricing power and business models.”

And I fully agree. In a time where we have no control over distribution anymore, where we get networked, where every user is potentially their “own distribution channel”… in a time where we are talking about the Attention Economy… scarcity makes no sense anymore for digital media products.
We must realize: Attention is the scarcity now, not (even good) content anymore.
And immediately publishing your content for free on your own website, like NBC is doing on Hulu, would be just the first step.

Content syndication could be a very important thing in the future. Get your content in the “pole position”, make cooperations, go there where the traffic is and make your content available… and as a content owner, maybe you market your potential ad inventory yourself and the platform owner gets the content (with the attached ads) for free.

A minute attention is a minute attention is a minute attention is a minute attenion… you will be able to capitalize this attention, wherever you get it…
It`s one of this famous good old Google priniciples: Focus on products that draw users and money will follow…

People won`t automatically go to the place, where they would get the content legally, even if it`s there for free… people go where they can get it first, where they can see it first. Most users don`t care about whether it`s legal or not. The Radiohead “In Rainbows” example shows exactly this. There were far more “illegal” torrent downloads than downloads on the Radiohead website. Even though every kid knew, cause of the media hype, that there is a free legal alternative…
So… try to go where the traffic is.

Gerd Leonhard At Picnic

October 2, 2008

Gerd is doing a great job out there for years now and his blog is really worth reading.
Here a video of his speech at the Picnic Conference in Amsterdam last week.

He summarizes quite well what`s going on in the new attention economy and how the music industry can survive in it building an new Ecosystem.
Watch it. It will be 50 minutes well spent. Really great stuff.

Vodpod videos no longer available.


We Think – Mass Production Utopia

September 25, 2008

I just saw the speech of Charles Leadbeater at the Picnic Conference in Amsterdam. I`ve seen him speak before, so his speech  was not really “groundbreaking”, nothing new for me…  , but cause he mentioned it today, I watched his promotion video for his book again (see above, 4min). For all of you who haven`t seen it yet, give it a try.

When you watch the video,  your first “reflex” might be… ok…thanks… I heard this before… boring… (besides the really nice illustration and presentation), this sounds like utopia et cetera … or whatever else you might have thought… and I thought so too, but after a while I started thinking, ok, actually he is right. This is a fact. It`s not mainstream yet, well my mother doesn`t even know what Wikipedia is, but it`s a fact. It`s happening and there should be huge potential for the media industry. There must be more than just a “pop idol” telephone vote, or a user generated advertising spot that is shown during the super bowl break, or a nonsense dancing video that is clicked 100 million times, or a social network…
I think there is still much more… and the media industry is not using it yet.

Sorry for sounding like a utopian… Just a thought…

Pricing Models For The Digital Age

September 15, 2008

I already quoted Chris Anderson yesterday and must once again. He brought to my attention this great paper by Prof. Hal Varian (for all of you who have had not the honor to study a few semesters of economics… he is “god” … well my professors told me so… by the way Mr. Varian is the “chief economist” at Google at the moment…)

In this paper, Varian describes 14 business models that allow content creators to make money even if they cannot stop the content from being distributed for free.

  • Make original cheaper than copy.
  • Make copy more expensive than original.
  • Sell physical complements.
  • Sell information complements.
  • Subscriptions.
  • Sell personalized version.
  • Advertise yourself.
  • Advertise other things.
  • Monitoring. (ASCAP monitors the playing of music in public places, collects a flat fee, which it then divvies up among its members.)
  • Site licenses.
  • Media tax.
  • Ransom. (Allow potential readers to bid for content. If the sum of the bids is sufficiently high, the information content is provided.)
  • Pure public provision.
  • Prizes, awards and commissions.

Some of these models are better than others… some only work for a very specific kind of content, but they are all options.

Three Business Models Of Free

September 14, 2008

Found this basic thought on Chris Anderson`s blog
If you want to make money with free products, you will have three options for your basic business model.

Of course you can combine this models. So everybody who tries to make money with media content will basically play in this area in the future. It´s as simple as that. Well it isn´t…

Ballmer On The Future Of Media Industry

June 14, 2008

Well, Steve Ballmer always has  strong opinions… during a lunch with some editors of the Washington Post he made some predictions… we will see… (via Techchrunch)

Vodpod videos no longer available.

The Filter – The Perfect Filter?

April 19, 2008

Recommendation systems are great and very important for media consume in the future (I wrote about it a while ago here and here). Most of the content providers and services in the online world are currently based on concepts which use/need the “lean forward mode” of media consumers. But consumers love the “lean backward mode” a lot in a age of information overflow (the burden of choice). In the music area we have already one great product: Last.Fm.

Now there is the launch of a new online service:

The Filter, a new media recommendation and discovery service, announced on Tuesday the launch of an invite-only private beta. But not like which just recommends and personalizes your music programme, the filter also includes movies, TV and other media, and considers past purchases, websites viewed, searches performed, friends’ picks and critics’ opinions into its recommendations

I`m quite excited about that… I was looking for such a service for a while… can`t wait to see how it will doing..

Here some more informations from The Filter website

“The Filter is powered by an engine that provides a holistic approach to recommendations – filtering out irrelevant content and only filtering in content that reflects an individual’s tastes and moods through unique algorithms.

In addition to the consumer entertainment experience here at, The Filter can also provide white label and co-branded solutions for content partners seeking to better match their inventory of content to their visitors’ tastes.

The Filter’s core is a recommendation and discovery engine derived from a branch of Artificial Intelligence, called Bayesian mathematics. Simplistically, the engine uses an evidence model (which includes purchase, consumption and browsing data) to derive the similarity of items. When The Filter’s engine is supplied with one or more items of interest it delivers a pick-list of items that are statistically relevant by order of probability.”