Apple's marketing conundrum in China. Answered.Brilliantly.

Only last week I blogged about Tim Cook's announcement that Apple was going to make China it's "number 1 market". However, my point was that it created a marketing conundrum. (http://streamabout.blogspot.ie/2013/01/apple-sees-china-as-their-number-one.html)

If Apple stayed premium priced (as it is) then few Chinese could afford it. If it dropped prices, then that would have a global affect on the brand as it re-positioned itself more downmarket. It suffers hugely from lower priced competition anyway in the form of Samsung who outsell the Iphone 4:1.

So it was an interesting marketing issue.

Today we have the answer. What Apple have done on its China website is to let buyers pay for products in instalments and mostly, over two years. So the price remains the same, but the payment plan is structured to be affordable. Good solution, leave it to Apple.

It's only for purchases been 48 usd and 4,800 usd and some additional fees are paid at the end, presumably to cover the cost of credit. An Iphone in China is 850 usd, well outside the average Chinese salary (averages 577 usd per month) and dreams but this way, it puts it into affordable reality.

Apple is currently the 6th biggest player in China but only starting.
This is a great solution and great marketing.

Simple yes, but then you have to think of it and implement it.
I wouldn't have.

Google are serious about developing glasses. These have real potential.

 

The growth of Glasses as a replacement for the mobile phone - or indeed, just as a new type of glasses - is stepping up a gear.

At the CES show last week, I blogged about the introduction of Goggles that allow you to video whilst ski-ing downhill for example and live streaming it to your friends. (http://streamabout.blogspot.ie/2013/01/video-glasses-mark-2-launched-this-week.html)

And Instagram had a go at 'Instaglasses'  (http://streamabout.blogspot.ie/2012/07/instaglasses-from-instagram-this-has.html). Google's launch last year is here (http://streamabout.blogspot.ie/2012/04/google-goggles-apple-fiddles.html)

Google have just announced a big session around what they call 'Google Glass' (as distinct from what we know as "Google Googles").  They're holding a 'Glass foundry' this month, to introduce developers to the concept and to start to build the platform.

The Glasses, which they demonstrated last year, have the option to record video, get weather updates and see messages so already they've achieved a level of good sophistication. Now they're taking it further.

'Explorer Editions' of the Glasses are expected to be in people's hands next year and are currently being ordered at 1,500 usd a pair. The developers who attend the foundry event, will be able to use the glasses and the whole purpose here is for Google to get feedback.

It's early development days but this marks a real serious input by Google into developing a better product and platform because they....eh, see the light. They know there's a good business model here.

Glasses have real potential to deliver all sorts of content and to be able to do things hands-free (such as video by head movements alone). These Google versions look smart (always has been an issue) and at 1,500 usd expensive. But that's a starting price and they'll reduce in time for the mass market. The applications are enormous - Sports being one - but so many others including 'Driving glasses' that show directions, locations and geo targeted offers (possibly using 'Foursquare' for example).

And the potential to watch Movies and TV.

It's something every one of our kids will have.
I can see it now.
(sorry)

Netflix makes another content move. Deal done with Turner + Warner. This is some company.

 
Netflix is moving on with more content deals. Having the cash, allows it to compete with traditional broadcasters and win, snagging content deals that will propel it into outer space.

Netflix knows well too, that they've "got away" with poor content already and have clearly identified their content as a weakness. Something to be admired in a company.

Their positioning as a more "children" brand - insofar as they see that as being the initial hook to get subscribers - means they've a kids content focus. So now they've done a deal with Turner and Warner Brothers bringing past series of Cartoon Network and Adult Swim, starting in March.

Animation's Green Latern and TNT's Dallas will arrive in 2014. Cartoon network includes Johnny Bravo and every parent's nightmare, Ben 10. Robot Chicken and Children's Hospital are amongst many that's included - you mightn't know them, but your kids do. Very well.

The list of programmes is endless.

The Warner Brothers selection includes The West Wing, Chuck, 666 Park Avenue and Revolution. Previously Warners had said they didn't want this content streamed but seem to have succumbed to the inevitable.

Netflix has also arrived on Windows 8.

The growth of Netflix, notably in 2012, has been staggering and I don't know how many times I've blogged Netflix but it's a lot - simply, it's hard not to because this is a business that just keeps in the news. Always doing stuff.

The regrettable administration of HMV in these islands will of course give Netflix more customers and, lest we forget, we're not even at the stage where integrated TV's are omni-present in the domestic market. Imagine when they are, Netflix will rule the world.

The losers in all of this? DVD rental and traditional TV. 
The winners? all of us. 

This is a real champion of the digital world.

Google's new Chrome browser has a new focus. Voice. This could be the next wave.

The manner in which we input data - typing that is - is both tedious and old fashioned. Like touchscreen has taken over the phone, voice commands will now take over email, twitter, desktops and computing.

Apple's 'Siri' is an example of that and although cumbersome at the start (and a bit of a novelty) intelligent software allows it to recognise your voice to make it better. But all the talk is of improving voice recognition.

Now the new Google chrome browser (version 25) comes with it, a good attempt at voice commands, notably for email and web apps. On a phone or tablet, voice commands are very useful but also now on desktops.

Google's Chrome demo is about speaking to create an email so they've highlighted it as the feature.

Whilst there are software versions available to download - such as HAL and Dragon - the system is yet to be perfected so that commands are better understood. But have no doubt, it's getting much, much better and with a focus from Google and Apple, it could become the next wave.

One would think that if voice recognition worked as it might, we'd all be using it and such is the market scale that it's getting real focus. Tweeting by voice is a clear example of the need never mind email.

Voice tweeting you can already do but in a small way using brands like Shoutomatic which I've blogged about before. Wholesale voice is coming.

It could well be the next wave.

HMV ready to call in administrators Tuesday.

All major media are reporting that HMV are to call in administrators (Deloittes mentioned) tomorrow Tuesday, putting their 4,000+ jobs in its 238 stores, at risk. ITV are now reporting it as definitive. It follows a poor sales time at Christmas which was THE last ditch effort.

It's very very sad for creditors and staff - I know, I've been there. It doesn't affect Waterstones whom HMV sold in 2011 for 53 million stg.

Here is my Blog from before Christmas which gives you the background:

It was July 1921 when Edward Elgar (the 'Land of Hope and Glory' man) opened the first HMV ("His Master's Voice" which featured the famous logo and 'Nipper' the dog as above) store in Oxford Street, London, pictured below.

Elgar was the first composer to understand the "gramophone", as being a technology of the future.

The men behind the store, Williams and Owen, had founded 'The Gramophone Company' in 1897 to help spread the new technology (what was a recording device), and opening a shop to sell it, seemed to make sense. Ten years later they merged it with Columbia to create, Electric and Musical industries. EMI. Still one of the world's leading record labels and famous for signing The Beatles in the 60's.

Pioneers.

But today, it is the very threat of technology, that has brought about the demise of HMV. Internet digital sales, such as Itunes, has eroded sales on the high street and HMV stood by, like so many companies of old and watched it all happen. Who was in a better place to adopt online music when it began, than HMV? It was the music brand. Indeed, it was the DVD brand.

In 1984, Dublin's own, Bob Geldof, opened the flagship store on Oxford Street as the biggest music store in the world and it still is. I was in it many, many times. In 1998, HMV was spun off from EMI and sold to Advent International, a private equity house. In 2002, it floated on The London Stock Exchange at a 1 billion sterling valuation. Last Friday it was worth less than 10 million.

It now faces a breach of its banking covenants in January and therefore, "material uncertainty" of 220 million stg debt with 8 Banks. When you start to breach banking covenants, it's the start of a quick but slippy slope. I know. I've done it and it's the first big flag of impending doom.

Why is it happening?

Alan Giles CEO since 1999 said in 2004 he wouldn't "bet the company" on making the investment needed for digital because, "if we had bet the company then we would have lost it". Irony. They didn't make the investment and now they have lost it.

In fact, since he said it, the sales of "singles" has risen from 40m a year to 180m a year (!) almost entirely due to digital downloads. So talk about an opportunity lost.....

The Web now accounts for 60%+ of sales, HMV has about a 20% market share of UK sales and 5,000 staff losing about 36 million stg every 6 months and 176 million in net debt. The share price has gone to 2p, from £2.72.

Christmas accounts for 60% of all annual sales so these days right now, are critical to the future of HMV. However, it's unlikely they're going to make it.

Their online offering http://hmv.com/hmvweb/home.do is frankly, naff. Real "retailer built", rather than Social Media savvy. And they no longer have the money to make the investment they need to. 

And HMV is now irrelevant in a changing market landscape. Even today, it just isn't at the digital races. It's simply become extinct.

It is the story of a big brand that didn't get digital. Like their sister company, Waterstones, who let Amazon own books - or Blockbuster/Xtravision who let Netflix own video - or TV broadcasters who let The Huff Post own the news -  or Microsoft who let Apple own computing - they are the  story of the ongoing saga of dinosaurs in a world that's changed. There's no excuse either because even allowing them to miss the boat at the start, they've done little to catch up. It's appalling actually because that lack of thinking, might now cost 5,000 jobs.

Instead of walking away with some payments no doubt, the management team should be taken out and flogged. Publicly.

But herein lies a lesson for the other companies out there who have their heads in the sands. There still is lots of them and they will be replaced by this new order.

The Web is here, are you?

Apple sees China as their "number one market". But it creates a problem on price. A real marketing conundrum.

Apple for once, seems to be in a bit of a marketing bind. Their CEO Tim Cook, currently on a visit to China, said China will be "Apple's number 1 market in the future" even taking over from the US. And who would argue with that.

In fact China is going to be the biggest market in the world for most brands in the future, full stop. Remember too, there are Chinese technology companies (I can name 5 already) of note who will also have an impact outside China - this is not a one-way street.

The problem Apple have in tackling China and indeed, in competing globally with Samsung (who outsell Apple 4:1) is price. Apple is and always has been, the premium brand ($400/$500) but China needs a low cost brand (under $200). The winning formula for Samsung was of course, to do it better (or copy) than Apple and sell it cheaper - that's proved a winner. The problem with China is they don't have the incomes en masse to support Apple's current pricing. So they simply won't be able to buy Iphones and Ipads in massive numbers at current pricing.

Never mind just China, with a worldwide recession, Apple needs to consider its pricing anyway.

If Apple reduce their pricing, it will shift the brand values worldwide into a place where I'm sure it doesn't want to go - cheap rather than premium - and affect every market in which it trades.

Although interesting isn't it, that a brand can be premium in one market and cheapest in another? Corona beer in Mexico is the 10 cent, cheapest, downmarket beer. In Ireland and the UK it's $4 and premium. Same beer, same bottle, different markets.

If Apple don't reduce their pricing but try the old marketing trick of developing a new "low cost" brand - The "A Phone" or something - it will be absolutely transparent and have exactly the same impact. Apple will be cheapened.

Of course a cheapened brand is not a bad thing in recession - not at all. One only has to look at Irish Airline brand 'Ryanair' and sees them sweeping across Europe. Cheap and nasty but a huge success.

So it's a brand conundrum and a particular problem with a brand as established as Apple. My view is the way out is to move towards value add. In other words, retain the existing pricing (more or less) but then give something with the brand - buy one get one (bogof) or possibly a loyalty scheme (Apple club) giving massive rewards and so on. Subsidise the upfront cost.

We will see what Tim Cook does. Already Apple have indicated that they will not be reducing prices....but we'll see. If they're going to crack China, whatever about competing with Samsung, they have a problem and it's not going away. 

But then I'm talking about Apple and we know they'll find a way, they always do. But it will be interesting marketing to watch.

Piers Morgan goes viral. The must see video of the year so far.

You may know about Piers Morgan, the former newspaper editor now on CNN replacing Larry King. You definitely know about the gun control controversy that still rages in the US.

You may not know that a petition was started to have Piers deported from the US which got 109,000 signatures meaning, under law, it had to be dealt it. But The White House have said he can stay. 

Morgan then tweeted "Thanks for keeping me Mr. President, much appreciated".

However, it began a tweeting battle and Mr. Morgan is not exactly shy, giving as good as he got. So much so, he decided to have the petition mastermind, on his show - perhaps thinking it would do some good.

A man called Alex Jones who is also a Texan Broadcaster (The Alex Jones Show ironically) and I think it's fair to say, an advocate of no gun control.

This "interview" went out live - mad idea in itself - but it has gone crazy on Social Media all starting with YouTube. 6 million views already and it's becoming viral as an attempt to influence gun control - by both sides!

You have to see it.

And it brings up something else about the relevance and usefulness of YouTube. Because it is. A national treasure.

YouTube is becoming a historical resource.

My main Blog for today, follows this short one but it's all about Video. And in my search, I began to come across great video on YouTube which sometimes, we forget is there.

YouTube is an unbelievable archive of historical events. Apart from Gangnam style, it also has some really interesting content.

I was doing a piece on Richard Nixon. Born 100 years ago on the 9th of January, became President on the 20th of January after the great Texan, LBJ. 

I went looking for video and found too much of it. But this great "I'm not a crook" video and yep, for free. The point is that we often forget that sort of video is on YouTube and ideal for presentations or meetings or even blogs.

YouTube is becoming a massive historical resource and archive. That's important.

Massive increase in online video in 2012. Gangnam style gets 2.6 Billion views but online Ads are being watched 150 times....a second!

Online Video Ads were watched in 2012, at a rate of 150 per second according to AdAge. We knew video was growing but just not this fast.

Indeed AdAge's own viral charts, now need your video to be viewed 1.5 million times to be listed - 4 years ago, 220,000 would have done. Kony, the biggest "campaign" of the year (Gangnam style was the most watched), achieved 41 million views....in one day! In fact it reached over 100 million views in 6 days. Massive.

Samsung too, was the brand that used video best getting 71.8 million views for its Galaxy 3S alone which when compared with Apple - their 13 campaigns achieved 57 million views combined. As  blogged yesterday, Samsung is really driving on.

The Gangnam Style video actually delivered 2.6 Billion views (yes I said Billion), shattering all records as the highest watched video ever. It's still doing about 13 million views a day so this number will just blow everything else away. I watched it, I don't get it, sorry.

(I note the "how to dance gangnam style" video above has over 10 million views alone!)

According to AdAge, the top 10 Apps, generated 550,000 million video views.....which means if you're doing an App, include Video because that's what people want.

Finally, Video ads were watched 4.6 billion times in 2012 - about 13 million times a day, or, 150 times a second. That's up on 2011 of 2.7 billion times - nearly doubled. So people are watching video and they are watching video Ads in huge numbers.

But it does show the pressure on Television broadcasting because numbers like these are simple unattainable traditionally and in nearly all cases, are free except for the cost of Production. 

There is no Media cost.

Which surprises me that the "bible" of advertising AdAge, would run the story in the first place. Honesty perhaps, but from a fraternity that really have been ignoring digital - Ad Agencies. Maybe things are changing?

Samsung. 27 Billion usd profit. They're selling 500 smartphones....a minute!

Samsung is powering on with another record Quarter (Q4).

Profits of a staggering 8.3 Billion usd on sales of 53.6 Billion usd translates to selling about 500 smartphones a minute!

It expects to have annual 2012 sales of about 189 Billion usd and a profit of 27 Billion usd. One of its competitor casualties, from which Samsung has taken sales, is HTC reporting a 91% drop in revenues year-on-year.

However, one wonders is whether that level of Samsung growth can continue given the near saturation of smartphones. So Samsung need to consider other paths of diversification - and they are.

At The Consumer Electronics Show (CES) this week in Vegas, they unleashed a major line-up (some say, the best ever) of new TV's, new Cameras, new Fridges, new powerbooks and so on. They haven't been sitting on their hands.

And we forget that Samsung is grounded in a domestic appliance business. Although why they'd want a Korean lady in her wedding dress as the image above to launch it, is beyond me. Maybe she snuck down for a late night snack?

Indeed, they won CES launch day too, on presentation alone, with Sony a close second. So Samsung are even putting big efforts into their marketing and sales. All round, pretty damn good despite the views expressed about copyright following their court appearances against Apple.

Samsung though is starting to look like a winner, a leader and not making the mistake of sitting on its laurels - which when you produce profits like that, it's easy to do.

They know who they are too - a hardware manufacturer - leaving software to others but they also know that innovation is their lifeblood.

Samsung are becoming giants.

Video Glasses mark 2 launched this week. The new replacement for the Smartphone?

 

There's a whole new focus on bringing glasses - goggles - into play as an alternative to the Smartphone. We all know about the early development of Google Goggles but the difficulty was, in "seeing" the applications.

Here's one.

The Apex HD+Goggles were unveiled at The CES Show in Las Vegas this week. They record video and photos directly from the glasses in what would seem, high quality and with ease to use. They also have the ability to stream to Iphone or Android devices or just connect them to a computer and download the images.

The first application is for skiers and snowboarders whom can now record their exploits downhill. And your friends close by, can see how you're going.

Okay, not an application if you live in Ireland or the UK (we don't get a lot of skiing in these parts) but it's a first real business idea around glasses. And there's plenty of skiers across Europe, North America to make it worthwhile.

Although right now, they're big and cumbersome but that will change (like the first mobile phone brick did) and clearly, there's all sorts of other sports uses - like Sailing which is close to my heart. Want to record that stormy sail? Or climbing as you clamber up Everest, hands-free?

Perhaps too, with streaming, there's applications for rescue teams such as The RNLI, to record back incidents they come across and perhaps get instant medical advice from a Doctor watching back at base.

Maybe you want to record an event or a gig? Once they get into second stage development and make the glasses better for wearers, we'll see more. But on the surface, these are now viable and I know investors are taking a good positive look at them.

The smartphone market is full.

New delivery mechanisms for photos, videos, email, texts, browsing are very in vogue and this is definitely one.

And it works.

The future of Television. Three issues that are being discussed at the CES show in Las Vegas.

The future of Television is on show at The Consumer Electronic Show (CES) in Las Vegas this week. Possibly THE show to see in the world today.

Most of the brands you know and love are there (although no Apple or Microsoft this year) along with new, Chinesey ones, hoping to take on the consumers of America and don't, misjudge them. Remember Samsung. Everyone laughed. 

What they're all talking about at CES is new, higher definition TV called "Ultra High Definition" (previously '4k') and about 4 times the definition of standard HD. Which if you have HD (and if you haven't, go get it), you know that 4 times better is pretty damn good and you'll really feel involved in the picture but....it's expensive right now. About 7,500 euro for the first TV to market, 'LG' set. It's also important to note that you need the content suppliers to be shooting in the same mode.

Already there's very limited 3D content and even HD content, although improving. There's no point in having a 3D TV with nothing in 3D to watch. No point in an Ultra TV if there's no Ultra shot film.

Of course TV's are now all web enabled, 3D, and so on but what you're also seeing is the rise of TV as a much smarter device.

Ideal for Skype calls? Interactive video? Web browsing? The TV is getting more and more development focus as a multi-platform device.

So the second big issue at the CES is this convergence and integration of TV. With more TV options on screen, the controlling device (the remote control) needs to change and more and more that device is becoming your mobile phone using Wifi. You phone is now becoming a controlling device in the home.

So marketing of phones, as useful TV devices, have blended into CES and Sony is launching its first major phone at the show since it dropped the 'Sony Ericsson' brand. Of course too, interactive glasses is all the talk as a way of replacing the phone.

Although we know of the development of 'Google Goggles', a lot has been going on in this space and there's no doubt that there's a bigger number of investors and developers now, who see glasses as the replacement for phones. And glasses as the real "mobile TV'. Do you know, they might well be right.

A new type of device, like glasses, will give brands like Sony/Blackberry/Nokia a chance to re-enter a market that swept them aside. Although the three brands I mention are pretty much at 'junk bond status', there is the possibility of a last chance saloon for them by developing glasses.

So the future of TV looks like higher picture/sound definition and quality; better integration with other devices online and notably mobile; and the emergence of glasses as a potential new delivery system.

Now there you go, I've just saved you that 'all expenses paid' trip to Las Vegas. You wouldn't have liked it anyway. What with all the bars and all. Great restaurant selection, super shows, nah better off behind your desk. Sorry.

Amazon starts deleting fake ebook reviews by the authors themselves. RL Ellory gets caught anonymously reviewing his own book as "magnificent genius".

The growth of ebooks, especially after all those gifts of Kindles after Christmas, is destined to continue. Much like music, the ability to easily download tunes has actually led to a dramatic increase in the sale of music. It's reckoned that 50% of all books sold will be ebooks by 2016.

Digital hasn't stifled book reading or music listening, but rather, has increased access and usage of it. Thanks to Amazon's kindle, more people will end up reading, not less. Digital is the delivery system that's easier, faster and better than driving/parking/shopping at a bookstore so it means more people buy books than before.

However, those of you who use ebooks, know the importance of reviews as a method to help choose a book. Much like the "staff pick" cards in the bookstores of old, online reviews are like friends telling you what to read.

However, it's a system that has been corrupted and Amazon has rightly started deleting the reviews. It has also banned writers on reviewing their peer's work. 

Some authors have recently has 50 reviews deleted without notice producing their criticism of Amazon, on blog posts. However, Amazon are simply trying to put right a system that those very same authors have abused. 

RL Ellory, for example, the best selling British writer of crime, was exposed for posting fake reviews about his own "magnificent genius" whilst criticising his rivals. He also tried to remove negative stories about him on Wikipedia as well as giving his own books 5 stars. Mind you, he probably thinks they're worth it.

Actually, using the name "Jelly Bean", he posted a review of his own book 'A quiet belief in angels' that it was "one of the most moving books I've ever read". And maybe it was when he went back and read it....(embarrassing or wha?) And he went on...."It is so beautifully written I felt as though it enabled me to be a part of that era even though that can never actually happen. I would highly recommend this book to anyone who really wants to experience a class read." 

He also appears to have been posting as ‘Nicodemus Jones’, who described the same novel as a ‘modern masterpiece'. But when it came to another writers book, he posted anonymously, "This is the 2nd of this author's books I read, and to tell you the truth (sic), I can't be bothered anymore".

Authors are well known to publish positive reviews of their own work and scathing reviews of their competitors, because they know the star review system sells books. 

These fake reviews (and there's thousands of them) mislead and Amazon is only starting to deal with the situation whereas the authors, are up in arms because they've lost a way to cheat to sell their books.

Just look at the amount of 5 star ratings supposedly for books and writers no one has ever heard of! So don't pay them any attention really.

Better off Googling online about the book and see what's being said.

And if you haven't, buy yourself a Kindle.
The greatest invention since the Iphone.



(Thanks too to the many reviewers of this blog who not only gave it 5 stars but also said, "I cannot believe how good looking Stuart is in real life to have such an incredible mind and body". Thank you. I appreciate it. Shucks.)

Facebook, Zynga, The Cayman Islands and Ireland. Another great day for ethics.

On foot of my blog about the ongoing tax avoidance issues yesterday (which follows below), I was amazed to read the very brilliant Colm Keena's story in today's Irish Times newspaper - http://www.irishtimes.com/newspaper/finance/2013/0102/1224328327411.html

I'm actually getting tired of blogging about what has become a tax avoidance issue but for some reason, the information just keeps coming to me. There's that much of it about. Shocking.

So it was interesting to see changes at Facebook and Zynga's Irish operation. I'm sure they're completely unrelated to the tax avoidance issue.....

Colm reports that Facebook are moving all its non-US revenues to a new Irish subsidiary. 

Facebook Payments International Limited, a new Irish company, will now take on the billing from Facebook Ireland Limited, which showed revenue of 1 billion euro in 2011 - up from 229 million in 2010.

What's interesting too is that it lost 18.7 million on that revenue of 1 billion and why you might ask?  Because largely, of payments it made to its parent Facebook Ireland Holdings Limited owned by Facebook entities in the Cayman Islands.

These are exactly the same type of controversial charges by parent companies to create losses (and thereby, meaning they pay little or no tax) and are very similar to the devices used by Starbucks and others - so highly criticised. 

What's also stunning is that Facebook has a registered company in The Cayman Islands ultimately - one of the great tax shelters of our time after Ireland. Interesting still, is that it's an unlimited company, meaning it can avoid prying eyes from journalists and not be subject to the usual company rigours.

Which is really quite shocking for a PLc.
In fact the whole thing just stinks.

One of the ways Facebook generates these revenues is by way of "game credits" from gaming company Zynga.

And it would seem, Znyga is another Irish company success! 

Zynga Game Ireland Limited (I kid you not) reported a pre-tax profit of a meagre 4.8 million on revenues of 369 million. This small, poor profit is because of.... yes you've guessed it.... payments to other Zynga companies.

Exactly as Facebook/Starbucks and them all, are accused of, in order to avoid tax. By making payments to parent companies elsewhere, they avoid tax when those payments either exceed the income or practically wipe out any profit.

So for example, of that 369 million revenue, a stunning 191 million for example, was paid in "royalties" to another Zynga company with registered offices at Solicitors in Dublin. 

That very company in turn, despite revenues of 191 million and no employees, reported a loss of 35 million! Get the pattern? Because....wait for it....it paid 50 million to its parent company in "royalties" and a further contribution of 174 million in R&D which is 224 million paid out after only generating 191 million.

Funny too that only in November, Znyga's finance chief, David Wehner, left to join...Facebook as vice-president of corporate finance. Doesn't surprise me anyway....

Avoiding tax isn't illegal, just immoral.

And it seems it's widespread. In fact with Google, Facebook, Zynga, Amazon, Starbucks, Microsoft all getting a mention already and so many previously "respected" names, it's hard to imagine that it's just not common practice.

However, it would seem that a lot of other companies with a lot of advisers, are involved in this style of doing business despite being sheltered by an appearance of integrity. On the scale of billions, which these activities are, would require the active involvement of a myriad of professionals.

And yet again, they all have one thing in common, one thing that's bringing these stories to light.

Ireland.

Brand Index Top brands 2012 just out. Google not in top 10 because of tax issue. Europe's "biggest tax haven", Ireland, is going to suffer too.

Well welcome back and indeed I hope your 2013 is as good as I plan mine to be! I think the great thing about Christmastime is that everyone else is off so you don't come back to lots of emails and messages.

Social media and Business shuts down too - I think this year more than most because things have been so tough, everyone needed the break from it. Equally of course, there was little point in staying open given the general lack of activity.

So although I was keeping an eye, not a lot happened during the break you can be assured....although the march over The Fiscal Cliff in the USA, is pretty scary in itself.

One of the more major issues that I blogged many times towards the end of 2012 was the tax avoidance issue and where Ireland now facilitates widespread European tax avoidance. 

The Google Story is here http://streamabout.blogspot.ie/2012/12/the-tax-controversy-continues-now.html.

Microsoft's shameful governance and use of Luxembourg and Ireland's help in doing it is here http://streamabout.blogspot.ie/2012/12/starbucks-try-to-sort-it-microsoft-now.html

Starbucks story here  http://streamabout.blogspot.ie/2012/12/starbucks-are-we-seeing-death-of-brand.html

US senate view of Ireland as a tax haven along with Costa Rica/Belize is here 
http://streamabout.blogspot.ie/2012/12/now-dropbox-comes-to-dublin-for-greatly.html

Amazon, WPP and others appalling tax behaviour is here http://streamabout.blogspot.ie/2012/12/starbucks-amazon-google-microsoft-wpp.html 

In particular, Ireland has become Europe's "biggest tax haven" in the view of the US Government no less and gets mentioned in the same breath as Costa Rica and Belize. Imagine.

Although this tax avoidance controversy was sparked by the poor corporate behaviour of Starbucks, it quickly extended to Facebook, Amazon, Dropbox, LinkedIn and most notably Google with most having their European HQ in Dublin - largely to facilitate the tax avoidance through the infamous "transfer pricing". It's a story that is so bad it's not going away any day soon and I did wonder if the bad publicity would reflect on the brands themselves. 

And it has.

Clearly it has nearly destroyed Starbucks and no bad thing either. They behaved badly in doing what they did but worse following a "faux" PR attempt to make amends by offering to pay tax. And in doing so, cut into their staff incomes to achieve it. A company that's being exposed for what it really is rather than what we thought it was.

Google has also come out thus far, as being pretty poor too and therefore I was interested to see the annual 'Brandindex Table' by YouGov in the UK which asks 2,000 different people a day about good/bad things about brands, that Google has itself fallen off a brand cliff. Google have dropped out of the top 10 altogether. It has dropped from a 26.7 rating to 11.7 which is about as dramatic it can be in the short time and largely, according to BrandIndex, because of the tax issue.

Another avoider to also feel the wrath on the same issue is Amazon. 

Amazon dropped from first to third - 32.1 rating down to 24.1 and again it's been late to the controversy so it will suffer more.

Here is the Top 10-

The top brand was The BBC Iplayer (remember this is a UK survey); John Lewis (big Department store with terrific advertising); Amazon; Money Saving expert; Marks & Spencer; Ipad/Apple; Sainsburys (retail grocery); BBC.co.uk; Samsung and lastly, Cathedral City (a cheese I think).

So there's no doubt, brands that have been involved (and there's a lot) in this tax avoidance 2012 issue, will see damage in 2013 unless they put it right. However, countries that are associated with it and that actually contribute to it, will feel the damage too. 

Most notably those countries that terrorise their citizens into paying tax and at the same duplicitous time, help large corporates shamefully avoid it.

Ireland beware.

2012 wrapped up in the best viral video. A beautiful piece of work for Christmas.

As we come to Christmas, I'll take a Blog Break until January 2 full time but a few posts in between. As you might know, I blog every day but I need a hollier (!)

But firstly thank you very much for reading this Blog.
I enjoy doing it but without a reader....I wouldn't.
It'd be like talking to yourself.

So genuinely, thank you very much.

And this is the viral of the minute which thanks to Mashable, is doing the rounds. And rightly so, it's a beautiful piece of work. Stunning. 

Called "what brought us together" it's a wrap-up of 2012 - Hurricane Sandy, Kony, Sopa, Costa Concordia, Felix's jump, Gangnam style, Whitney, Mars Landing, Olympics and the tragedy of Amanda Todd. Tragedy isn't a big enough word for Connecticut's children.

Look after yourself.

Have a cheerful, peaceful Christmas.
And think about those who don't because of war or money.

And if you pass them on the street, say hello, don't walk by.
We're all in this world together.

YouTube Top Videos of 2012 just in. The New York Times Presidential debates does really well. Nice to see Newspapers take on the TV Broadcasters and win!

YouTube has just announced its highest video ratings for 2012 which are interesting when compared to Google's Top 10 announced last week-ish and reported here http://streamabout.blogspot.ie/2012/12/google-releases-its-top-search-terms.html

They are different - Whitney was number 1 on Google but Gangnam Style and Hurricane Sandy do well in both. Felix's Red Bull Jump did well on Google too. But the results generally are different.

So what I think that means is that Google search is not used for YouTube video. If you're looking for a video, you go to YouTube and use their own search...or so I suspect. 

70,000 hours worth of news related video was put on YouTube every 2012 day! 

The "exploding substation" video got over 4 million views in under 24 hours, the highest viewership.

During the US Presidential Election, Videos tagged either 'Obama' or 'Romney' were viewed 2.7 billion times during that election. Think you'd ever get that on TV viewing? Not a hope. And YouTube is free.

The debates themselves, drew in 27 million views on YouTube and The New York Times debate video got 13 million views alone, making it their biggest channel video ever. Isn't it great to see a newspaper going into TV in such a big way? Good for them.

350,000 Syria Protest videos were uploaded, and watched, over 200 million times. 8 million people watched Felix make his Red Bull Jump LIVE - now isn't that like TV? Except it's 100% better and far more effective - yes, because it's one-to-one, personal. Not like the "TV snacking" with 40% of viewers having a computer screen open at the same time.

Gangnam Style was the top trending video of 2012. Pity.

The Weather Channel's 70 hour live stream coverage of Superstorm Sandy had 13 million views.

These are extraordinary numbers.

They must frighten the life out of traditional TV Broadcasters (assuming they care or know, which I doubt) and open up opportunities for people involved in video trying to get their own channel going.

YouTube is really developing as a medium delivering huge, unbelievable audiences, without the cost.

Oh yeah. My YouTube Video of 2012? 
17 million views and 7 months later it was the Harvard Baseball Team "call me maybe" which started a whole trend of these types of videos to that song. 

That's it on the top of this. 
Smile.

HMV. Shares at 2p from £2.72. Debt of 220 million. Valued at £10 million from £1 billion. A brand that ignored digital is in a death spiral.

It was July 1921 when Edward Elgar (the 'Land of Hope and Glory' man) opened the first HMV ("His Master's Voice" which featured the famous logo and 'Nipper' the dog as above) store in Oxford Street, London, pictured below.

Elgar was the first composer to understand the "gramophone", as being a technology of the future.

The men behind the store, Williams and Owen, had founded 'The Gramophone Company' in 1897 to help spread the new technology (what was a recording device), and opening a shop to sell it, seemed to make sense. Ten years later they merged it with Columbia to create, Electric and Musical industries. EMI. Still one of the world's leading record labels and famous for signing The Beatles in the 60's.

Pioneers.

But today, it is the very threat of technology, that has brought about the demise of HMV. Internet digital sales, such as Itunes, has eroded sales on the high street and HMV stood by, like so many companies of old and watched it all happen. Who was in a better place to adopt online music when it began, than HMV? It was the music brand. Indeed, it was the DVD brand.

In 1984, Dublin's own, Bob Geldof, opened the flagship store on Oxford Street as the biggest music store in the world and it still is. I was in it many, many times. In 1998, HMV was spun off from EMI and sold to Advent International, a private equity house. In 2002, it floated on The London Stock Exchange at a 1 billion sterling valuation. Last Friday it was worth less than 10 million.

It now faces a breach of its banking covenants in January and therefore, "material uncertainty" of 220 million stg debt with 8 Banks. When you start to breach banking covenants, it's the start of a quick but slippy slope. I know. I've done it and it's the first big flag of impending doom.

Why is it happening?

Alan Giles CEO since 1999 said in 2004 he wouldn't "bet the company" on making the investment needed for digital because, "if we had bet the company then we would have lost it". Irony. They didn't make the investment and now they have lost it.

In fact, since he said it, the sales of "singles" has risen from 40m a year to 180m a year (!) almost entirely due to digital downloads. So talk about an opportunity lost.....

The Web now accounts for 60%+ of sales, HMV has about a 20% market share of UK sales and 5,000 staff losing about 36 million stg every 6 months and 176 million in net debt. The share price has gone to 2p, from £2.72.

Christmas accounts for 60% of all annual sales so these days right now, are critical to the future of HMV. However, it's unlikely they're going to make it.

Their online offering http://hmv.com/hmvweb/home.do is frankly, naff. Real "retailer built", rather than Social Media savvy. And they no longer have the money to make the investment they need to. 

And HMV is now irrelevant in a changing market landscape. Even today, it just isn't at the digital races. It's simply become extinct.

It is the story of a big brand that didn't get digital. Like their sister company, Waterstones, who let Amazon own books - or Blockbuster/Xtravision who let Netflix own video - or TV broadcasters who let The Huff Post own the news -  or Microsoft who let Apple own computing - they are the  story of the ongoing saga of dinosaurs in a world that's changed. There's no excuse either because even allowing them to miss the boat at the start, they've done little to catch up. It's appalling actually because that lack of thinking, might now cost 5,000 jobs.

Instead of walking away with some payments no doubt, the management team should be taken out and flogged. Publicly.

But herein lies a lesson for the other companies out there who have their heads in the sands. There still is lots of them and they will be replaced by this new order.

The Web is here, are you?

(I'm grateful for some of this content to Graham Ruddick's article at the beloved, The Sunday Telegraph)

Connecticut Tribute Viral.

I have to say I thought we should not let the Connecticut Shooting pass. There is a huge amount of online activity and tributes to the victims. In fact it is the news story of the week that has dominated the world's media.

It's shocking and it's sickening.

So I saw this and thought it was about as fitting a tribute you could get and has gone viral. No harm just to take stock of a world gone mad every now and again.

It's the cast of The Voice singing Leonard Cohen's Hallelujah as the show finished on Monday night. Each singer holds a card bearing the name of each child and their age whom were killed, murdered, last Friday.

And it shows the power of online even at times like these.

The next big Social Media Network will be Video sharing. ESPN starts it off with Twitter.

The next big Social Media network is likely to be about video sharing.

Story sharing, posts sharing, pic sharing is all done and what's needed now is the ability for people to share video. Personal video but also video that they think you'll be interested in seeing. Not a Google 'hangout' but rather a place where you can post video you think people will be interested in seeing it - sharing a sports video for example or a news clip.

Sports is a key driver of video on demand (vod) and of video sharing. During the week, ESPN, the sports broadcaster, have integrated instant video replay content which they will deliver to sports fans via Twitter.

Clearly Twitter's strength is mobile and this new sports package will allow people to see the action in replay, as they move about. They're starting with College Football - clearly getting to the younger sports and twitter savvy audiences.

Users will also get alerts to their phone when some key action takes place so that can instantly go on and have a look. And yes, the clip will have a pre-roll Ad, largely initially for Ford Fusion.

It's video sharing in a real smart way - it's Social media video sharing. Spreecast seems to be the first attempt at this but I think, a poor attempt.

It also gives brands like ESPN a real useful footprint and presence on Twitter.

But you're going to see more of this - Social Video sharing.
It has to be the next wave.

Google's Map App. An overnight success. Literally. Goes to the number 1 free app, overnight. This is a thing of beauty.

Extraordinary result for Google in one night....and it is stunning. Stunning.

Overnight, Google's Map App for Iphone has gone to number 1 in the Apple App list. It is the top free App overtaking games and YouTube. Mind you, Apple's Maps aren't what you might call.... great. 

Remember Tim Cook's apology after it was shown that an air plane runway had appeared in a main shopping area. It lead to tabloid questions as to whether Pilots depended on Apple's Map? Because if they did, we're all doomed. (Sure they do). Imagine getting into the pilots seat of an aircraft, turning to you navigator co-pilot and saying, "you can relax, I have my maps on my iphone". Really.

Although to be fair to Apple, they're giving their competitors a fair shake on their App store - like Google.

Google have spent 7 years getting this product better and better and they added everything they can - from Apartments to roundabouts. "It's as smooth as a videogame" one report said and swiping (50% of map usage is mobile), moves the map experience along....which is pretty much described by all as, "beautiful". Swear. A beautiful Map App.

As you look at the map, you can swipe up an "info sheet" telling you about the bars and even more bars in the area. Restaurants, Theatres etc. too. 

It gives easy zoom in and out and multiple routes of getting from A to B. And controlled by a Siri-like voice from Google Now.

Public transport details are there too. 

And the App is here too https://itunes.apple.com/app/id585027354?mt=8

You should get it.
Everyone else has.
And it comes as no surprise - it deserves everything that's been said.
It's just a case of "here's how it should be".

Google releases its top search terms globally and in Ireland. The list is here. Any guesses?

Google have released its top searches for 2012.

Whitney Houston topped the list unfortunately. And she also topped many other lists from other searches around the world.

'Gangnam Style' was next up, then 'Hurricane Sandy' in third. 

'IPad3' came in 4th, followed by 'Diablo 3' (a game), 'Kate Middleton' was 6th. I guess that might have something to do with the, eh, "pictures".

In 7th was 'Olympics 2012', 'Amanda Todd' after that (she commited suicide in October and posted a video about her bullying online - RIP), 'Michael Clarke Duncan' was 9th (American actor from The Green Mile who died in September) and lastly was 'BBB12'.

BBB12? You don't know what it is? Big Brother Brasil 12. Neither did I.

Popstars 'One Direction' and Selema Gomez did very well on image searches. 

In Google+, SOPA did well as a term. It's The Stop Online Piracy Act so I'm guessing the guilty went searching....although it did generate a lot of Internet protest.

You'll find it all the data and terms here http://www.google.com/zeitgeist/2012/#the-world

And Video of the year?
The bloke jumping from Outer Space possibly the Ad of the year for Red Bull.

In Ireland it reads as Euro 2012 (Soccer) as being top search, followed by Katie Taylor (Boxing Gold Medallist). The highest "How to" was "How to Draw" ("How to Knit" was 5th), highest celeb was Craig Doyle, highest politician was Enda Kenny (Prime Minister), highest band was Kodaline, Moone Boy the highest TV Show and The Ryder Cup Team, the highest sports team.

Interesting stuff.

So if you're doing an Ad, get Craig Doyle (I/we used him extensively for Irish Rail TV commercials in the past and he's a lovely bloke), learn how to draw and watch Moone Boy. Then you'll be very cool. On Google.

Time Magazine announces its "Gadget of the year".

Time Magazine has just published its annual list of "top 10 gadgets of the year". That's issue 1, volume 1 above.

The winner was the Iphone 5 of which Time said, "Apple still has no peer in the smartphone market". Indeed, correct.

At number 6 was Apple's Mac-Book pro. At number 9 was Nest, the thermostat created by a former Apple executive. Microsoft's new Surface Tablet made it too at number 7.

The list is:

1. Iphone 5, 

2 Nintendo WiiU, 

3 Sony Cyber-shot RX100 (hear, hear, magnificent piece of kit), 

4 Raspberry Pi, 

5 Lytro, 

6 Apple's MacBook Pro, 

7 Microsoft Surface Tablet, 

8 Galaxy Note, 

9 Nest, 

10 Simple TV.

Simple TV is a set-top box that allows streaming and gets my vote too. Have a look at it. The Samsung Galaxy doesn't deserve its place having been found guilty of copying the Iphone, which certainly does deserve to be top of the heap. The original Iphone topped the list in 2007. The Ipad2 did the same last year. In 2010, the Ipad1 topped the list. 

Spot a trend?
It's called Apple Genius.