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Bye Bye, Miss Traditional Media Pie
January 30, 2009
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"It's clear that Millennials are influencing the evolution of digital content, and technology in general, on a broad, international scale. This generation of consumers was the first to be raised on the Internet and is united across borders and cultures by their digital media preferences, so the implications for global marketers are unprecedented."
-- Ed Moran, Deloitte director of product innovation."It's clear that Millennials are influencing the evolution of digital content, and technology in general, on a broad, international scale. This generation of consumers was the first to be raised on the Internet and is united across borders and cultures by their digital media preferences, so the implications for global marketers are unprecedented." -- Ed Moran, Deloitte director of product innovation.
As I said in the newsletter back in December, the 800-pound gorilla (the Internet) keeps gaining weight and playing a bigger part in all media consumption.
This week, according to a new State of the Media Democracy survey by Deloitte, three-quarters of Millennials (ages 14-25) view the computer as more of an entertainment device than their television. (Read the whole story here: http://tinyurl.com/alvjxj )
I'm sure that might shock some television execs, but probably only those without children in that age group. There are also those who pay lots of money for focus groups that often aren't focused on getting real answers, just the results that those paying for the focus groups want.
Mr. Moran, Deloitte director of product innovation, notes that "This (early-adopter) generation of consumers was the first to be raised on the Internet and is united across borders and cultures by their digital media preferences, so the implications for global marketers are unprecedented."
Across five surveyed countries, Millennials are the most active in gaming, music and Internet use for socializing: 80% of Millennials are regularly searching, downloading and listening to music over the Internet; 73% are also regularly socializing online (via social networking sites, chat rooms or message boards); 59% of Millennials use their mobile phone as an entertainment device, versus an average of 33% of all consumers.
Millenials are spending one-third less time watching their television than are other generations.
Ken August, Deloitte vice chairman and U.S. Media and Entertainment leader, says "What is less clear is the degree to which Millennial spending power will ebb with the economic sea change we're experiencing. Boomers (ages 43-61) already possess more discretionary income than any other generation.
Consumers across geographies still rank television advertising as having the most impact on their buying decisions. Magazine, online and newspaper ads occupy a second tier of influence across all countries, with radio advertising influence only placing as high as fifth.
Though television advertising still might have the most impact on buyers, this week TiVo CEO Tom Rogers admits that TiVo has played a big role in the current TV ad crisis by developing the tech tools that allow viewers to skip commercials. That said, at NATPE he insisted his company is working on new methods for advertisers to reach consumers, and he urged others to do the same. (Source: 'TiVo Chief Urges Changes In TV Advertising', Hollywood Reporter, January 28, 2009)
For example, TiVo research shows that interactive advertising didn't initially catch on because it didn't let viewers pause the program while getting more information about the product. TiVo plans to incorporate automatic pausing so a curious consumer doesn't miss any part of the TV program. Rogers supports contextually based advertising, in which "some real thought" is put into what kind of ads would relate most to viewers watching a specific program.
Rogers notes that there are 30 million DVRs (digital video recorders) in homes today, with that number expected to increase to 50 million to 60 million in the next three years. Despite this, the ad industry has been slow to come up with new ways to reach consumers through DVRs. One problem, he says, is the fact that "the people who buy and sell ad time are a world removed from the people who create advertising today."
All and all, the heads of those great creative minds in the world of advertising and media are spinning faster than Linda Blair's did in 'The Exorcist.'
In the meantime, the fact that (as stated above) "80% of Millennials are regularly searching, downloading and listening to music over the Internet" is great news for the music industry. It means an overwhelming majority of the Millennials consider music a major priority in this world of overwhelming entertainment options.
Getting the music into the hands of consumers (and their hands are most likely pushing the buttons on their iPods to listen) in the ever-changing entertainment-media landscape if course is the issue that needs to be addressed.
What revenue generating models can be created beyond the iTunes store model? What types of new strategic alliances will be formed to engage new consumers? And the key word here for all future media is 'engage.'
Engaging the consumer beyond traditional sales methods employed for years will be critical for all companies as online media evolves by the nanosecond.
When real engagement takes place, the consumers will gladly say "beam me up, Scotty." Those Millenials are more than anxious to board the starship Enterprise.
The problem is, they want to drive.
And Now This...
In the first issue of this year in my commentary, "The RIAA Waves A White Flag ... Kinda Sort Of," I wrote about how the RIAA was dropping its plans to sue the evil-doers (illegal downloaders), and enlist the aid ISPs in its efforts to thwart that which can never be thwarted, online piracy.
As former Intel CEO Andrew Grove once said, "A fundamental rule in technology says that whatever can be done will be done." Perhaps someday the RIAA will actually grasp what that means.
This week comes the news that AT&T and Comcast might help the RIAA in their efforts.
Before you think about switching either as your ISP, read the news story below. Despite the RIAA's best efforts, I don't believe ISPs are going to threaten millions of subscribers. Once they do, people will drop that ISP like a bad habit.
AND THIS...
If you haven't already heard it elsewhere, some of the music played at Obama's inauguration was ... well, it was "canned."
The AP news report said: "The revelation that millions of people who saw the inauguration of President Barack Obama were actually listening to recorded music instead of the actual performance of the Yo-Yo Ma and Itzhak Perlman-led quartet has led to comparisons of lip-synching (though, in this case, might the correct term be hand-synching?) and drawn comparisons to other infamous cases, including Ashlee Simpson's "Saturday Night Live" debacle and perhaps music's most famous pantomimes, Milli Vanilli.
Carole Florman, a spokeswoman for the Joint Congressional Committee on Inaugural Ceremonies, said "I think this is a whole lot of nothin'. These are world-class performers who are playing in 19-degree weather and the technical requirements of their instruments made it impossible for them to have their music amplified and know that it would be in tune. So they made, what I think, was probably a difficult decision to play to tape."
Personally, I don't know what all the fuss is about, either.
Britney's done it. So have Madonna, Janet Jackson, Ashlee and Jessica Simpson, 50 Cent, Miley Cyrus, Mariah Carey, Kanye West (?), and a whole lot more.
A Google search of "people caught lip-synching" returns 300,000 results, I stopped at those mentioned.
Sources: AT&T, Comcast May Help RIAA Foil Piracy
AT&T and Comcast, two of the nation's largest Internet service providers, are expected to be among a group of ISPs that will cooperate with the music industry in battling illegal file sharing, three sources close to the companies told CNET News. The Recording Industry Association of America, the lobbying group representing the four largest recording companies, said last month that it had enlisted the help of ISPs as part of a new anti-piracy campaign. The RIAA has declined to identify which ISPs or how many.
It's important to note that none of the half dozen or so ISPs involved has signed agreements. The companies are "skittish" about negative press and could still back out, said the sources. But as it stands, AT&T and Comcast are among the companies that have indicated they wish to participate in what the RIAA calls a "graduated response program."
Read more about it by clicking here.
YouTube Users Caught In Warner Music Spat
Corey Vidal is no pirate, but he's been branded one as a result of the licensing spat between Warner Music Group and YouTube. On YouTube, Vidal posted a humorous video tribute to John Williams, the man who scored the soundtracks for such blockbuster films as Indiana Jones, and Star Wars. In his clip he included some of Williams' music. By now, everybody knows that YouTube removes videos that violate copyright law. What's different about Vidal's work getting pulled is that when he posted it in October, he was permitted to use Warner's music.
Until last month, YouTube had an agreement with Warner Music -- one of the four largest recording companies -- that allowed video creators to include the label's content in their clips. Last month, talks to renew the deal broke down and that means YouTube and its users no longer have access to Warner's library. For this reason, the case is much different than YouTube's high-profile fight with Viacom or run-of-the-mill piracy that once flourished on the site.
Read more about it by clicking here.
Zune Tune Sad ... Sales Plummet
The ongoing saga of the Zune has reached another sad chapter as Microsoft revealed that sales of their digital-music player were down 54% in the fourth quarter of 2008 compared to the same time period in 2007.
Will Microsoft Fight to Save Its Digital-Music Player?
Read more about it by clicking here.
Judge Delays Hearing (And Its Webcast) In Downloading Case
A judge in Boston has delayed a hearing in a file-sharing case to give the record industry time to appeal her pioneering ruling authorizing a Webcast.
The hearing, previously scheduled for today, has been put off until Feb. 24th. "Postponing the hearing will allow the First Circuit an opportunity to fully consider the petition before it," U.S. Federal Court Judge Nancy Gertner wrote in the case, a copyright infringement lawsuit against grad student Joel Tenenbaum. The postponement came less than one week after Gertner authorized the Courtroom View Network to Webcast proceedings in the lawsuit.
Read more about it by clicking here.
Apple Awarded Key iPhone Multitouch Patent
Apple has been awarded a patent that appears to cover much of the iPhone's multitouch user interface. The patent is extremely long, and covers many of the methods used by the iPhone to display data, such as pinch-to-zoom Web browsing and swipe-to-scroll.
Read more about it by clicking here.
MORE GRAMMY STUFF
Radiohead, Paul McCartney, Justin Timberlake, T.I, Kanye West and Jay-Z will all perform at this year's Grammys ceremony. Radiohead have never played the event despite Best Alternative Album wins for "OK Computer" and "Kid A." The band is nominated for five awards this year, including Best Album for "In Rainbows." The performance will be the band's first live U.S. television performance since 2000.
WANNA BE A MUSIC MOGUL?
Warner Music Group stock dipped below $2 a share again this past week. Pali Research analyst Rich Greenfield, who has a history of being tough on Warner Music Group, has reduced fiscal 2009 estimates for the company and now expects revenues to decline 13% on the year.
KELLY'S BACK
Kelly Clarkson has made history on this week's Billboard Hot 100 with her new single becoming the largest leap to #1 in the chart's 50-year history. The former Idol's "My Life Would Suck Without You" will go from #97 on the chart to #1 after selling 280,000 digital downloads in its first week of release in the U.S.! This is the second time Miz Clarkson has set the record for largest jump to No. 1. In October 2002, her American Idol victory song, "A Moment Like This," went from #52 to #1.
AND IDOL JUDGE GETS NEXT CLARKSON SINGLE
Kelly Clarkson's next "All I Ever Wanted" single is rumored to be "(I Do Not) Hook Up," a track co-written by Katy Perry and "American Idol" judge Kara DioGuardi roughly three years ago. Perry seems to be a major influence for Clarkson's new album, as she used the "I Kissed a Girl" songwriting team for her first single from the current album, "My Life Would Suck Without You."
SLASH IS A DOLL
Next month a Slash action figure based on his character in "Guitar Hero III: Legends of Rock" will hit stores. The figurine is approximately 11 inches tall with 15 movable parts, and includes Slash's trademark top hat.
BROADWAY THRILLER?
Michael Jackson's "Thriller" is set to make the jump to Broadway. Playbill reports that Broadway bigwigs the Nederlander Organization have acquired the rights to make a new musical based on Jackson's famous werewolves-and-zombies video. In the meantime, "Thriller" video director John Landis has filed suit against Michael for breach of contract, saying that he hasn't been paid for his share of the profits from the clip for at least the last four years.
LET'S HOPE THERE'S NO ROCK "LOLLIPOP" SONG
Lil Wayne will reportedly release his next album, "Rebirth," on April 7th. And as evidenced by the album's first single "Prom Queen," the album will feature Weezy's "rebirth" as a rock & roll star. Lil Wayne's publicist told MTV News that the new LP will indeed be a "rock album,"
THE ACORN DOESN'T FALL FAR FROM THE TREE, DEPT.
Kelly Osbourne is reportedly back in re-hab.
"IDOL" DOES IT AGAIN FOR FOX
According to The Hollywood Reporter: "It's only two weeks after the premiere of 'American Idol' and already Fox has leapfrogged rivals and caught CBS as the top-rated network for the entire broadcast season. As of Tuesday, driven primarily by the eighth season debut of 'American Idol' (but also strong supportive showings from "House," "24," "Fringe" and new show "Lie to Me"), Fox has become the highest-rated network yet again."
BRUCE JUICE
Bruce Springsteen and the E Street Band will do another U.S. tour to support his new album. his new album "Working on a Dream." The tour kicks off on April Fool's Day in San Jose, CA, and will work its way east, culminating in a pair of shows at East Rutherford's Izod Center in Bruce's home state of New Jersey on May 21st and 23rd. From there, the band goes to Europe.
PASSING
Billy Powell, the only keyboardist Lynyrd Skynyrd ever had, died Tuesday night at his home near Jacksonville, Florida. He was 56. No cause of death has been announced.
Quotes of the week
"My videos stand the test of time. They are like the almanac for every performer. Even Rhianna has come up to me and said 'I hope you don't mind.' And Beyonce. You can see the influence of what I've done. It's really fun to see that I've left a mark. It was my idea to create an animated character. It takes a lot of focus, a lot time, and a lot of money."
-- An obviously delusion Paula Abdul. "The almanac for every performer???!!!" I guess those pain pills she takes for her back have side effects."I'm not this round the clock diva looking for attention. I'm way more comfortable out of the spotlight and just chilling out with my family. I'm very quiet. I love to paint. I love to watch TV though it seems I never get to do it. I love a lot old television shows. I still love the Cosbys. I also love the Fresh Prince."
-- Beyonce, the diva, trying to make us believe she's just like us even though she's got gazillions."I can't stand Angelina and all her babies. Maddox probably thought he hit the jackpot, but then Angelina proceeded to take him to every other Third World country on the planet. He's probably like. 'Bitch, when the f*** are we getting to Malibu?'"
-- E! TV personality Chelsea Handler to an audience in New York this past weekend"I'm looking forward to the heat, I'm looking forward to the Grammys and I'm looking forward to In-N-Out Burger. In fact, as soon as I roll up, I'm going to get an In-N-Out burger."
-- New Artist Grammy nominee, Adele on coming to the West Coast for her North American tour, to the San Jose Mercury News"As a teenager, he joined the band the Quarrymen, which was composed of George Harrison, John Lennon, Eric Clapton, Rod Stewart, Brian Wilson, David Bowie, Steve Winwood, Ray Charles, Phil Spector, George Gershwin, Led Zeppelin and the Vienna Boys' Choir. After the Beatles broke up, McCartney formed Wings, who were known for their smash hit 'Stop Requesting "Strawberry Fields," That Was John,'"
-- Stephen Colbert, breaking down the history of the Fab Four, with Paul McCartney as his guest on 'The Colbert Report'
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Tina Turner Burns Down Legs For Insurance Money
LOS ANGELES-Police officers arrested Tina Turner this week on suspicion of arson, reckless endangerment, and insurance fraud, following allegations that the legendary R&B singer burned down her legs for financial gain.
The arrest is the culmination of a month-long investigation into the four-alarm blaze that injured three firemen, threatened nearby properties, and completely destroyed Turner's lower extremities. Payment of a $3.2 million insurance policy the entertainer had on her legs will be put on hold until after trial.
"At first it appeared to be just another accidental fire," lead detective Jason Hendricks said. "However, something about Ms. Turner's story didn't add up. She claimed to have gone to the store, only to return an hour later and find her lower half already in flames. Yet evidence seems to suggest that Ms. Turner was at the scene of the crime the entire time."
Read the rest here: http://tinyurl.com/asz6qw.
THE RADIO INTERVIEW on 'THE AMERICAN PERSPECTIVE' - From newsblaze.com
"Steve Meyer is on the front line of global music sales and distribution which he expects will soar to pocket-bursting levels. What's more, he shares his insight and ingenuity with us. Steve gives us both historical perspective and futuristic vision as he chats with Judy about the love of his work, trends of the business and his personal points of view about success, happiness and blending life with the lust for life. Steve joins Judy and helps us discover the thrill of having it all with a sense of balance and purpose. "
You can listen to an interview I did with Judy Piazza of 'The American Perspective' by clicking here: (It runs about 15 minutes)
http://www.thesop.org/index.php?id=10306.
The Blogs
Check out a great blog by Jerry Del Colliano, the Director Executive Programs, Clinical Professor Music Industry & Recording Arts, at the Thornton School of Music,University of Southern California, by clicking here: http://www.insidemusicmedia.blogspot.com.
Website
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
TinyURL
Check out www.tinyurl.com where you can make a smaller URL that will work for any webpage you wish to link to or reference. (As you can see, I'm using it in my news stories above!)