Mobile gaming company Playgearz issues a fake PR release taking responsibility for criminally demolishing buildings. Is it OK now to pretend you've committed a crime in order to clickjack people into downloading your derivative iPhone game? [...more]
I understand that to break through the “noise” you have to sometimes be a bit outrageous…
…but accusing yourself in a press release of committing crimes is a bit over the top.
Supposedly,
…in a series of “stunts” to gain public attention for a new Apple iPhone 5 and iPad game launch, a startup went overboard causing massive property damage.
At 7:00 am, a crew drove 3 cranes, equipped with 1.5 ton wrecking balls, to a mid-city housing complex. The wrecking balls were painted to look like roundish flying Yumbies, adorable characters who smash through buildings and other structures in the game.
The headline here is pure linkbait: “iPhone 5 PR stunt ends in disaster leaving 23 homeless.” Grabs all the journos looking for a follow-up story on the iPhone 5 launch, and seeds in the delicious possibility of catching someone doing something dumb & cinematic to put on the TV news.
The point is that the problems with the news business bear surprising resemblance to the problems of society as a whole. We've tied our fate to the unfettered free-market economic forces, without really taking notice of the fact that there are a few industries, at least, that are not prepackaged Cheetos. Where diluting quality and streamlining production schedules and all the other tricks of modern corporate management may work in the short term ... but in the long term are not only killing the industry, but harming ... well, basically Western Civilization. [...more]
The good folks at CNN asked me to appear on Backstory” to talk about the News of the World’s phone-hacking scandal.
I tried to oblige them with some insights onto why this kind of scandal keeps happening, and why. You can see the results of the interview in the segment below:
More on why the news business keeps getting hit with privacy scandals like this, and why it won’t stop after the jump…
A collective snicker/groan radiated out through the interwebs today with the publication of this AdAge piece on how video is like the news business was in 1998, as legions of print journalists who have seen the number and budgets of the news outlets for which they once worked steadily dwindle. Welcome to Disintermediation 2.0, where [...] [...more]
A collective snicker/groan radiated out through the interwebs today with the publication of this AdAge piece on how video is like the news business was in 1998, as legions of print journalists who have seen the number and budgets of the news outlets for which they once worked steadily dwindle.
Welcome to Disintermediation 2.0, where the content is video. It’s entertainment not news. And the stakes (at least the monetary ones) are much higher.
While everyone in online video is challenged by the reality that digital presents to any media — measurement, targeting, accountability — traditional “editors” are also being squeezed by the very same process that beset news in the late 90′s.
This has led to a new rating system, called either “C3” or “live-plus-three”; instead of only counting viewers who watch shows live, Nielsen counts anyone who records and plays back the program up to 3 days later. This captures more of the time-shifted viewing audience. By the end of 2010, McDonough says, Nielsen’s ratings will combine both DVR’d and online streaming content.
Kate Sirkin, executive vice president and global research director for Starcom MediaVest Group, sees the DVR, particularly the TiVo, as fundamentally changing the way Americans view television. “We have three in our house,” Sirkin says. “My 5-year-old doesn’t understand live TV; she’s always had a DVR.”
The other effect of DVRs, of course, is the commercial-skipping. Used to be that you had to hack your TiVo to be able to skip 30 seconds at a time. Now that comes programmed directly into the remote on the DirecTV HD controller (but I still prefer the TiVo, since it skipped you automatically 30 seconds forward in time, rather than making you watch blurred fast-forwarded action).
But the biggest eye-opener for me is that articles predicting that broadcast TV, the cash cow for so long for the advertising industry, is about to head into the abyss … well, that’s news. Because what took down newspapers was not that nobody was reading them anymore – in fact, the stats show that more people are reading newspaper content than ever before.
What has laid print newspapers low is that the revenue streams from traditional print advertising have dried up & blown away.
Most, if not all, of the major media buyers that I’ve run into over the last three years at various ad industry events, have all admitted that they know that advertising on TV really doesn’t work the way that it used to. The profusion of channels on cable and satellite, the DVRs, the growth of internet, all mean that they are getting less reach than they used to. Meanwhile, they’re getting charged through the nose for that same 30-second spot.
This relationship is inherently abusive, much like the relationship was between newspapers and their advertisers. When a viable alternative comes along, and you’ve managed to piss off your customers, guess what they do?
I had thought that Madonna and Michael Jackson were about as sophisticated as you could get when it came to figuring out ways to build up a juicy public image, and then squeeze it until rivers of cash started running out. Not so. Lady GaGa has rightly recognized that selling CDs if for chumps; anyone can pirate them, and pretty much does. [...more]
Her “Bad Romance” music video features prominent product placement for stuff she designs & sells – and has garnered 38 million views.
The song itself is kinda beside the point – it’s bubblegum synth-disco-pop, about as bland and processed as the stuff the taxi drivers in Moscow used to subject me to on the way back & forth from my gig there. Which may be why it’s getting so many views – this is the kind of stuff that works internationally, since the thumping beat and lyric structure make it sound pretty much interchangeable with everything else on the radio.
Can't wait until she starts marketing the exploding bustier shown here; Madonna's Wannabees all wore their undies over their shirts. Wonder if GaGaEttes are going to be lighting their smokes off their flaming boobs.
But the real action here is in the video to the song. Blew my mind. Didn’t think that people had budgets like this anymore. Costumes that would make Gaultier sick with envy — white latex with “Where the Wild Things Are” shiny plastic crowns, some kinda homage to LeeLoo’s orange strappy outfit in The Fifth Element and a Eastern European mobster/white sex-slave buyer with a steampunk-ish articulated brass chin. Looked to my eye like about a week in production, probably about $500K in total costs of models, locations, crews, lighting, post-production.
The plot seems to be that Lady GaGa wakes from her sleep the way normal people do – by sticking her hand out of a gleaming white Tylenol-shaped coffin – getting forced to drink high-end vodka and the gyrate for & be sold to a bunch of strange pervy dudes.I half expected to see Liam Neeson kicking someone’s ass in the backdrop and telling her, “Here’s the scary part. You’re going to be taken…”
Nobody does these kinds of elaborate music videos anymore, because there is no way to recoup that kinda cash from the moribund music industry.- at least, not until now.As Dan Neil points out in the LA Times
the “Bad Romance” video, which features placements for no less than 10 products: a black iPod; Philippe Starck Parrot wireless speakers; Nemiroff vodka; Gaga-designed Heartbeats earphones (via Dr. Dre); Carrera sunglasses; Nintendo Wii handsets; Hewlett-Packard Envy computers; a Burberry coat; those crazy, hobbling Alexander McQueen hyper-heels; and enough La Perla lingerie to choke an ox.
This isn’t a music video so much as the QVC Channel you can dance to.
I had thought that Madonna and Michael Jackson were about as sophisticated as you could get when it came to figuring out ways to build up a juicy public image, and then squeeze it until rivers of cash started running out. Not so. Lady GaGa has rightly recognized that selling CDs if for chumps; anyone can pirate them, and pretty much does.
No, you need to sell things that people can’t copy – or at least, if they do, it kinda defeats the purpose. So Lady GaGa’s come up with the list of high-end commercial goods to do “Hero Shots” of in the video and obviously done revenue deals with them.
As a business model, I have to say hats off to the Lady. She’s adapted to the draining of value from the content (i.e. nobody actually buys music anymore – at least, not like they used to), and migrated over to where the money still lies.
When advertising no longer works, when information is a commodity in which we all drown for free, then the only things that are left that have any value are physical objects that we can wear, eat, drive or plug in, as well as what cultural anthropologists call “fetish objects” that bestow special status because they signify that we hae enough disposable income so as to be able to waste a couple grand on some gaudy sunglasses.
I’m not sure if this is the way that all news & entertainment is going to have to go in the future. All of it sponsored, with big shout-outs to the guys footing the bills worked into the info-stream every 10 seconds or so. I do know that if this works, we’re going to see a lot more of these “branded videos” online.
It was a cinematic night, as event organizer Brad Nye looked like he was making an entrance in a James Bond film, and Jason Calacanis did a Q&A (thanks for taking my question first, BTW), and looked a little like Citizen Kane. It’s late and I’ve got a lot more post-processing to do on the [...] [...more]
It was a cinematic night, as event organizer Brad Nye looked like he was making an entrance in a James Bond film, and Jason Calacanis did a Q&A (thanks for taking my question first, BTW), and looked a little like Citizen Kane.
It’s late and I’ve got a lot more post-processing to do on the photos, so here’s just a couple of the images that I shot. The video of the discussions can be found at This Week in Startups.
Before the lights were adjusted, standing on the platform over the audience made the speakers look like they were either making a dramatic entrance - or having their identities concealed in some "60 Minutes" tell-all segment.
The energy of the old VIC was certainly present – a little too much, as techies on the make back at the bar made it a little hard to hear the speakers at the time. This, despite the overt threat by organizers to find the yapping networkers and toss them out.
Anyway, here’s Calacanis discussing what the future of social media sites is going to look like, and what smart companies should do in the next couple of years to try to adapt to the increasing pace of innovation.
As I said in an email to Nye, Jason would probably be secretly pleased at the whole Citizen Kane-esque imagery here. And then, of course, he'd feel conflicted about it and make a self-deprecating joke.
One of the more interesting areas of discussion – particularly since I just got back from Costa Rica – centered around virtual currency as being “the next big thing.” Certainly seems that way in places like Costa Rica, where you’re getting an increasingly large, tech-savvy and connected labor force. A lot of people either work in the internet gambling industry there – or have relatives/friends that do. The speed of internet connections in San Jose – and even out in the jungles on the Pacific side – stunned me. I’ve had much worse connections in the small town U.S.A.
One of the things that has stuck in my head the last week or so has been the stories coming out about how spammers are getting around the Captchas by simply hiring dirt-cheap human labor to fill in the blanks on the pages to stuff spam onto our hard-constructed sites. I’m not sure what the next step in trying to get rid of the spam is going to be – Calacanis lamented how from the very first days of blogs, spam started becoming a problem, and it has kept pace with our attempts to try to get rid of it. Now it’s starting to get into the social networking world (viz today’s Phishing attacks on Twitter), where the level of trust that we have for our social circle is going to make the impact of a malicious click that much heavier.
In which I get very "Meta" and write a blog post that aggregates other blog posts that were written about aggregation. The discussion in all cases gets heated very quickly. Insults are thrown around, fisking takes place in the comment threads, but a few actual new ideas & fact-based analyses sneak in here and there. The fact that some very smart entrepreneurs are actually interested enough to toss in some innovative thinking is rather heartening, actually. [...more]
In which I get very “Meta” and write a blog post that aggregates other blog posts that were written about aggregation.
I am also posting this over on the AIM Group blog, as part of what I think might become a regular feature, “This week in the paid content debate.” The best of the bunch is the back-and-forth between billionaire Mark Cuban, and the bete noire of many print publishers, Michael Wolff, who runs the Newser.com content-aggregation site. Cuban actually suggests something that shows that he’s put more thinking into the issue than the kneejerk “Up with the paywalls!” bunch. I note below the flaw in his plans – my ex-roommate used to describe for me in detail how impossible it was at Time-Warner-AOL to get the jealous VPs of Home Video, say, to play nice with the guys from HBO and pay-per-view. Why make someone else’s P&L sheets look good? That just means they are going to get the Exec VP slot faster than you…
This is an example of a newspaper that has developed multiple, reliable, alternative revenue streams. UOL in Brazil is doing quite well, thank you. They planned ahead, unlike so many complacent U.S. papers.(Click for larger)
Anyway, the discussion in all cases gets heated very quickly. Insults are thrown around, fisking takes place in the comment threads, but a few actual new ideas & fact-based analyses sneak in here and there. The fact that some very smart entrepreneurs are actually interested enough to toss in some innovative thinking is rather heartening, actually.
Mark Cuban gives some free advice to fellow billionaire media mogul Rupert Murdoch: http://blogmaverick.com/2009/08/08/my-advice-to-fox-myspace-on-selling-content-yes-you-can/ Basically, he advances the idea that to get consumers to pay for news, you have to bundle it up with other goods, services and content that exist within giant organizations such as Fox or Time-Warner. A “Newsjunkie” subscription would come with access to special sections of Fox News, a couple of books from HarperCollins, magazine subscriptions and DVDs of 20th Century Fox movies. Commenters point out that such “synergies” remain elusive in these big media conglomerates, as each of the divisions is still in its own silo, with its own P&L, jealously guarding its own turf. Cuban paid special attention to aggregators, suggesting that newspapers ban links from aggregators such as Michael Wolff’s Newser.com.
…leading to Mark Cuban responding with a schoolyard-taunt opus: I’m Rubber, You’re Glue http://blogmaverick.com/2009/08/12/to-michael-wolf-im-rubber-youre-glue/ Not sure what it means when the discussion over paywalls degenerates so quickly, even amongst intelligent and successful publishers. Apparently, Cuban takes umbrage to Wolff calling him a “big fat idiot,” and in turn, taunts Wolff by criticizing his “outdated model” of a site.
The fallacy of the Link economy: http://paidcontent.org/article/419-the-fallacy-of-the-link-economy/ This is another assault on the value of inbound links from Google and other news aggregation sites. Arnon Mishkin says that even sites that publish a headline and short description of a news story appearing on another site are destructive, because readers mostly skim stories, and therefore get the news content they need without having to click through. No word from him on what he thinks newspapers should do on newsstands – perhaps they should be like old-school porn magazines, in plain brown wrappers.
Ken Ellis responds on NP-Harder: http://npharder.wordpress.com/2009/08/14/the-fallacies-of-arnon-mishkin/He picks apart some of the assumptions as to what constitutes value from links, and concludes, “All that being said, I still agree in principle with his final three points. However reclaiming value from aggregators isn’t going to help publishers much. They need subscribers and a pay wall. Not an iron curtain, but a permeable pay wall along the lines of the Wall Street Journal. There’s no save-my-business-model pot of gold out there in the hands of aggregators to help you pay for all that good journalism.”
TechCrunch proclaims “The Media Bundle is Dead,” http://www.techcrunch.com/2009/08/16/the-media-bundle-is-dead-long-live-the-news-aggregators/ Erick Schonfeld addresses paid content by claiming that back when newspapers still enjoyed local monopolies on news, “80 percent of the stories in the paper sucked,” but that the audience was still forced to buy the paper because there was no alternative. Kind of like the argument that the music industry has failed because people are no longer willing to pay $15 for a CD that contains one song they like, and 9 others that are crummy.
Five Key Reasons Newspapers Are Failing: http://www.splicetoday.com/politics-and-media/five-key-reasons-why-newspapers-are-failingOnly the first point really addresses paid content, but the suggestions at the end of the piece on how to transform a newspaper into a web-based news operation that will produce the type of content that readers will actually reach into their wallets and pay for – is very instructive.
A post drawing an interesting parallel between Microsoft’s dilemma on how to compete with Google’s free Open Office product, while still maintaining its huge profits from its own MS Office suite http://www.pbs.org/idealab/2009/08/future-of-local-news-about-more-than-paid-content225.html
From “Scooping the News” a post entitled: Newspaper Access Fees Destined for Failure: http://www.scoopingthenews.com/2009/08/newspaper-access-fees-destined-for.html He compares the paywall solutions to pop-up ads. He lists five points that he claims explain why access fees will not generate that much revenue. Basically, the argument against boils down to the “internet readers are used to getting information for free, and they have lots of alternatives, so they’ll never pony up when newspapers start slamming down the paywalls.”
Another quick hit, this one courtesy of an article in AdAge about how the free-fall in the ad industry has at least stopped, but what’s emerging out of the wreckage is that things will never go back to the way they were. “This current economy has stimulated a new marketing consciousness,” said Laurence Boschetto, president-CEO, [...] [...more]
“This current economy has stimulated a new marketing consciousness,” said Laurence Boschetto, president-CEO, DraftFCB. “Clients are saying they want accountability for every dollar they spend, and they want cause and effect. Clients will continue to rally behind ideas that build business, and we as an industry have to accept that things will never revert back to the pre-recession mind-set that wasn’t totally focused on accountability.”
At every conference I’ve attended this year, especially OMMA and Digital Hollywood, I’ve sat in the room with media planners and ad buyers (AKA the guys in expensive suits who write the multi-million dollar checks to buy 30-second spots on American Idol), and listened to them piss & moan about their jobs.
“The goddam clients are calling me every day and screaming in my ear,” groused a Tums-chomping buyer for a major food company. “All they talk about is ‘The Board,’ and how everyone is shit-scared of winding up on the front page of the New York Times for blowing millions while we’re in a Depression.
“The orders have come down from on high that every nickel they spend has to be tracked, assessed, spreadsheeted and connected to a dollar in sales. Well, it all rolls downhill to me. I have to show results for everything, and when it comes to print and broadcast, that’s getting harder and harder to justify.
“Even if the scale and the reach aren’t there yet, when I’ve got a Google Analytics spreadsheet tracking the ad buy, at least I can walk into the client meeting with more than my dick in my hand.
“I’ve got a $300 million budget for the next year. Zero point zero zero is going to print. Nada. Nothing. I can’t justify it anymore. And broadcast TV is next.”
This is a 3-D animated tag cloud to promote the Adobe MAX conference here in LA; but I think they might want to regulate this a bit more, because some of the user-chosen tags are getting a little ... pungent. [...more]
I stumbled across this today while poking around at the new Adobe products, trying to decide whether it’s worth it to upgrade to CS4 for the new features in Premiere Pro and Photoshop, or to just hang on to CS3.
Anyway, this is a 3-D animated tag cloud to promote the Adobe MAX conference here in LA; but I think they might want to regulate this a bit more, because some of the user-chosen tags are getting a little … pungent. Hey. That’s pretty good. Maybe I’ll go there and add “pungent” to the mix…
I’m not sure if you can geo-anchor the text; if not, having “PORN” appear about where Chatsworth is located, is a stroke of serendipitous genius… (click to embiggen)
"We’re about to get another breakthrough, another interface leap. If I knew what it was, I would start a company there. But I don’t know what it is yet, but I have some ideas, and that’s what we’re going to talk about today." - John Battelle
[...more]
“We’re about to get another breakthrough, another interface leap. If I knew what it was, I would start a company there. But I don’t know what it is yet, but I have some ideas, and that’s what we’re going to talk about today.” – John Battelle
Battelle says he stayed up late one night (visions of the mythical college dorm room & heavy inhalation) to come up with this heavy information and interface theories, and worked up this speech to try to describe where he sees the future of the web going.
If what he said above is right, then there is about to be another evolutionary stage, and the current titans of search (i.e. Google, Yahoo, etc.) are going to be replaced by The New Hot Thing. He seems to be hanging his hat on “conversations” which sounds pretty good to me – the human urge to connect & trade information is one of the strongest forces on the web. I’m just not entirely convinced that the Facebook/MySpace paradigm is at all viable. We’re been waiting a while now for anything remotely resembling a business model to emerge, and the latest news is that Google’s shareholders are starting to get a bit bent out of shape about subsidizing the world’s inconsequential home videos, and that Emperor’s Missing Wardrobe-type questions are starting to get asked about the 1/2 billion a year burn rate.
Money quote:
YouTube will manage to rake in about $240 million in ad revenue in 2009, against operating costs of roughly $711 million, leading to a shortfall of just over $470 million. This half-billion dollar loss comes after more than a year of feverish experimentation in various forms of advertising, cross-product embedding, licensing and partnership deals. YouTube is adamant that ultimately they’ll find an advertising solution that will enable the ungainly behemoth to reach profitability. Looking at the math, it doesn’t seem likely.
Battelle’s take on where all this is headed is pretty complex, and not all that out of line with things that you’ve probably heard before. This is only the first part, so stick with it – it gets more rewarding as we go along.
Here’s some teaser quotes to get you to click over and watch the video – please excuse the camera movement, but Battelle kept pacing around on the stage, and I had to either go so wide that focus was a problem, or track him, making the camera movements a little jerky.
Every publisher is now a marketer … you have to engage the audience in a conversation … if you don’t know how to do that, you’ll die. That’s it. It’s over.
I call this the conversation economy. It’s kind of a sequel to the search.
The three-bump theory of how man interacts with technology … as Eric Schmidt is fond of saying ‘25% of GDP is fine with me.”
We all give Apple credit, but basically we know that Windows won. I call this the “hunt and poke” interface … that’s way better than learning a foreign language like FORTRAN. That’s also called the “I’m lost in a foreign country interface.”
We started having conversations at scale with our customers. All of a sudden every customer could talk to every company, and nobody was ready for the conversation. But around the turn of the century, we started to develop that interface, and that interface, I argue is search. This is the first time we have ever been able to have a conversation in our own natural language with a machine. People don’t see search that way, but I do.
Because surfing the Internet is like drinking from a firehose, David LaFontaine braves the torrent to tell you what trends and technologies to gulp down, swirl in your mouth, or spit out.
The article goes on to (correctly) identify the growth of highspeed broadband as the catalyst for the coming collapse of the traditional broadcast video model. I’d add to that the increasing popularity of DVRs, which are 
