Harvey Weinstein trashes Google/YouTube for stealing content and making billions from it. This is going to run.

It's hard not to respect Harvey Weinstein one of the most powerful men in media.

He co-founded Miramax Pictures and of course, set the world alight with 'Pulp Fiction' but a man who knows his trade and was heavily involved in 'Live Aid'.

At this week's Creativity Conference, he trashes Google's youtube. Now I can't show you the video as normal (you'll have to click the link below - but it's only 2 mins long) because the video is not on YouTube. Which surprises me....somebody must have tried to upload it? Yet it's not there....hmmmm anyway here's the link:

http://fora.tv/2013/04/26/Harvey_Weinstein_The_Creators_Process_for_Storytelling/Harvey_Weinstein_Artists_Cant_Thrive_If_Theyre_Poor?utm_source=ForaSiteMaster&utm_campaign=37b98fe34f-Newsletter_05_1_13&utm_medium=email

What he's saying is that Google steals content - an argument a lot of Newspapers are starting to have with them too. He illustrates his point by referring to the show 'Chicago' where on YouTube 9 of the 13 show songs are available for free.

Nobody is getting paid for that - not the composers, the producers, the singers...nobody, except that is, YouTube through advertising.

So with irony he says that a very good business plan would be to use somebody else's content, for free, and then build a 500 billion dollar silicon valley company. And be very, very rich. And then have cool slogans, like "we just want to help the world".

He has a point.

And this will now come to a head with content owners.

HMV and Xtra-Vision. Who's next? Skype announces a cracking idea from Monday with Microsoft's outlook.com. So could it be telephony?

Given recent collapses of HMV and in Ireland this week, the Xtra-vision chain which went into receivership (like a 'Blockbuster' chain of retail DVD rental), it's clear that online played a major part in their demise.

Video and music downloads (legal in the main) through the likes of ITunes and Netflix which is surging ahead, meant that traditional retail DVD/Album sales went into spiralling decline. The point however should be made, that brands like HMV and Xtra-vision should have got into the online space but didn't.

They were, at one time, the dominant brands with the power to win online. Anyway.

One now has to ask, what's the next category or market segment that's now faced with the same challenges? And it's telephony.

Apart from "ordinary" threats of email, tweeting, texting and messaging which avoids the need for a quick (costly) telephone call, mobile operators continue to compete on price to woo subscribers. That in itself, is reducing margins and profitability.

It's a death spiral.

But apart from that, online operators are starting to each their lunch - exactly what happened in music and video.

Skype, the best known player (but there's hundreds) have just announced a roll-out of audio and video calling, with outlook.com in the UK from Monday and then the US and Germany this month.

All you need do is download a plug-in and login with your Microsoft account and you're integrated into the Microsoft email service. So that call, has just got a lot easier - it's part of your email. Merging the accounts will automatically merge contacts so connecting with friends will be easy as well.

It's phone calls at your fingertips.

Skype is part of Microsoft so furthering usage will also be pretty easy for Microsoft as Skype replaces their 'instant messenger' service. It previously partnered with ComCast bringing Skype to HDTV sets and Skype generates about 130 billion minutes of call a quarter - growing by 30%+. Microsoft also of course know mobile telephony with android phones.

It's hard to see the big global mobile brands compete with this and especially when we've seen so little sign of it to date. Perhaps they have had it too good for too long? like HMV and Xtra-Vision?

Unthinkable? Nope.

Netflix surges ahead. 3 million new subscribers last quarter. 36m to date. This is killing traditional TV viewership.

 

 
The surge of Netflix goes on and on.

They've just announced 3 million new subscribers in the first quarter (beating brands like HBO). That means they've over 36 million subscribers (of which 'm one).

Revenue for the quarter broke 1 billion usd and the share price went over 200 usd for the first time. Extraordinary stuff for what is, pretty ordinary content but the key is ease of access at a low cost. Their free trial, only resulted in 8000 people cancelling, a really low churn rate so generally people are happy.

Netflix are great at what they do and now lead the way in TV broadcasting and have developed their own shows. Nevermind killing high street video rental who were too slow at getting into the space.

They also know how to grow - market by market - with stealth. Pick off country by country.

The other beneficiaries of Netflix are brands like Sony who in allowing connectivity through their Xbox for example, generate revenue and indeed all connected TV's will do well out of this - provided, Netflix agree to allowing them take their content.

This is a case where such a strong content partner can now dictate who carries their signal and on what terms.

Whilst TV broadcasters continue to commission "reputable" research showing TV viewing still remains high, it is to say the least, dubious. They continue to try to hide the ongoing collapse of TV viewing habits but publishing data about the TV itself. In other words, claiming that those using are using a TV set to view content are "TV viewers" ....when in fact, they are watching other content such as Netflix. Or YouTube via their Television set.

These massive increases in online content viewing are helping to dispel the myth that TV viewing of traditional broadcasters content, is holding steady - when clearly it's not.

Simply, the Netflix numbers and the facts about usage of Social Media in the home from Facebook and others, are exposing the death of traditional broadcasting. 

They both cannot be right.
 

Boston Shootings. Twitter bringing in the news. Nobody can compete wih this.

Fairly extraordinary stuff going on in Boston as Police hunt a suspect in the Boston Bombings. One has already been shot, so too a Police Officer and one is on the loose.

What's also extraordinary (and thanks to Mashable) is the tweets and pictures that are coming from the scene.

Here is the page  http://mashable.com/2013/04/19/live-tweets-from-massive-police-standoff-in-watertown/

If ever you wanted to see Social Media in action for news, literally as it happens, this is it.

Extraordinary. 

No news organisation can compete with this amount of content simply because, every citizen with a smartphone is a journalist and they're all on scene.

YouTube open special news page for video of Boston explosions.

Following yesterday's explosions in Boston, YouTube have opened a page where they've brought together all the video into one place. It's here;

http://www.youtube.com/playlist?list=PLbpi6ZahtOH5T_nrvCoHfnYWbW1shGYYv

There's no doubt, watching an event unfold like this live last night, how Social Media is now fulfilling the news role. 

Twitter going out live from the scene with pictures (although some of them cruelly unedited) and YouTube video being posted. 

All well ahead of traditional news organisations.

I understand an 8 year old was one of those killed, waiting for his mum and dad to finish the run, both of whom survived. I too have an 8 year old son and it's impossible to understand the tragedy of those parents as they set about running a marathon on a sunny bank holiday Monday. God be with them.

EBooks now a quarter of all US Book Sales. From 9% in 3 years.

The American Association of Publishers, have reported that E-Books now account for nearly a quarter of all US book Sales (23%).

From 9% in 2009, it's pretty terrific growth and really interestingly, there's been a growth in books in general. Like ITunes has brought more music sales, so too has EBooks.

So instead of the Internet decimating Books and Music as predicted, it has brought a new life to them. Simply, the ease of access online has meant more people can buy more easily and they do.

At the time, the music industry particularly, instead of jumping onboard the download revolution, spent millions trying to stop it through law. When they should have encouraged it.

Interesting too that these stats on Ebooks show a real growth in children's/teen books which probably means, more younger people are reading - no bad thing. 

EBooks are a real success - if you haven't yet got a Kindle, go get one now. You'll resist it at first and then fall in love with it. Stunning piece of kit.

New writers will be encouraged by these numbers too. It's all in all, great news for literacy (if that's how you spell it).

Kobe Byrant V Lionel Messi. Turkish Airlines Video goes hugely viral. But it's great and worth a look.

Super Commercial/Viral Video for Turkish Airlines which has just passed over 110 million views and quickly. Actually faster than 'Gangnam Style'.

Kobe Byrant (he's a Basketballer of some note) Versus Lionel Messi (he's a footballer seemingly) vie for the attention of a kid on board. But the key here was by using such well known celebs, piggybacked their own following and so the Video immediately had traction amongst fans.

And critically, it was shared because of who they are.

Having said that, the spot is clever in itself and a good use of the talents on board. Unusually too for Turkish Airlines, not known for strong creative. Developed too, by a local Turkish Agency and local creatives, it shows Turkish airlines as a comfortable way to go - and celebrity endorsement does no harm.

Lovely idea and yes, the talent fees would be high but the shoot itself doesn't have a real expensive look about it. Still, if both players got a million each to appear and it has reached over 110 million people, that represents cracking good value.

In fact, at 5 million each, it still does.
Celebrity can be worth it.

North Korea have launched a missile. Japan's Government Tweets. By accident.

The Korean peninsula is on a knife-edge as we know.

One small mistake may unsettle everything. 

So the Japanese government officials got ready. On standby and had their tweets ready to go. All bases covered, all on alert.

One of the official Tweets was "North Korea has launched a missile" ready to send to advise the population to be prepared. All good preparation because Twitter is huge in Japan.

Until one donkey in officialdom goes and sends it, by mistake at noon on the official Twitter account. And leaves it up, for 20 minutes before replacing it with an apology.

It's one way to get re tweeted but another way to cause total havoc. And the sort of thing that really causes problems.

And the culprit? "The Crisis Management Office Affairs Bureau" of Yokohama in Japan. Irony of ironies.

(It wouldn't happen in Jack Dorsey's day.....)

It's back. Mad Men Series 6. Tonight.

It's back. He's back. Short sentences are back. Tonight. 10pm Sky Atlantic.

Advertising men like they used to be. Mad Men Series 6.

Fox threaten to go Subscriber only. Online re-broadcasting is causing problems (IPTV).

Fox, that great bastion of free right wing media (actually, I watch it a lot so I mean that tongue-in-cheek) are threatening to come off "free to air" and to move towards cable or pay-per-view.

In other words, just be available to subscribers.

And the reason? Online IPTV re-broadcasters (in this case 'Aereo' in particular) whom are offering live Fox and CBS and ABC and others online for free. They're simply, re-sending the TV signals online for a small fee. And the courts have upheld their right to do so. It would seem that these re-broadcasters have set themselves up exactly within the limits of existing laws.

So no need for an antenna or set-top box, you can now see Fox online through Aereo and that's what's bothering Fox. Aereo also allows you to record programmes in the cloud and of course, is available on multi-platforms to watch "as you go".

It means that traditional TV Companies are now losing control of their signal, their content and ultimately, their advertising. So if Fox became subscriber only, it would starve IPTV such as Aereo, of content. But then too, it would lose its advertising revenue because numbers of viewers would dramatically reduce.

It would also cause problems for affiliates of Fox (such as Sky) who may no longer get access to that content either. 

IPTV is a threat to broadcasters - of that, there's no doubt.
However, one wonders why they don't join the party and develop their own IPTV strategy? In other words, come together as an online brand and compete.

So many times, we've seen online destroy businesses who sat back and depended on legal action rather than, get into the space and fight. This to me, looks like another example.

Feels a bit like a Fox episode of The Simpsons.

Spotify. They've blazed a trail in music streaming and now face a huge challenge. So they turn to advertising and their first TV Commercial.

'We are Spotify, we are for music', sounds like the Pedigree Chum Campaign 'We are for dogs' and you can't help but see in Spotify's new, first, TV Campaign, influences from Apple advertising.

I have no understanding of their copyline either, "Music is worth fighting for"? Sounds like a copywriter trying to be evocative without making sense. 

However, the point is that this is Spotify's bid to get into US Homes through TV advertising, promoting its music streaming business before competitors enter the space. And the space is hotting up.

Apple, Amazon and most notably Google, are all primed to enter the Spotify space. Big players with big money.

Music Streaming is different to music downloading (as in ITunes) in that it allows you to listen to tracks for a standard subscription. 

Launched in Sweden in 2008, Spotify currently has over 20 million active members with about 6 million paying and has a valuation of circa 3 billion usd. So it's a relatively young start-up that has grown and has trail blazed a new segment of streaming music. All from a base in Sweden. Not bad at all really.

Its success hasn't gone unnoticed and hence they're now faced with big players coming into their market - always a problem for a start-up. If you're successful, others will follows. And hence therefore, this new TV Commercial to try to develop subscribers before the big boys get hold. Which is exactly the right thing to do, whether you like the commercial or not.

Spotify deserves the success either way. And turning to Advertising will help it now. But it's now faced with the challenge of its young life. 

Yoko Ono is 80 and wants more gun control. So she Tweets Lennon's bloody glasses. Scary stuff.

This is a Tweet from Yoko Ono and what makes it pretty scary is that they are the exact glasses that John Lennon was wearing when he shot outside the Dakota Apartments in NYC (where I saw for myself). That's his blood on the lens.

Scary too that Lennon was only 40, Yoko is now 80 and that he was shot 33 years ago. Yoko has 3.7 m followers on Twitter and she did this Tweet to enter the conversation on gun control. Pretty effectively I think.

Over 31,000 people die in the US every year from shootings. John + Yoko had always been involved in issues like this - the song Give Peace a Chance of course, symbolises that. So there's no doubting she wants more gun control and is using her celebrity with a controversial image to get it out there.

Newspapers have a new confidence. Recent NNI Video tells the story and journalists tell theirs. Newspapers are the ONLY Media people pay for. That means they want it.

The power of Newspapers and their power online. Real Social Media as shown at the recent NNI Awards night.

The point is that Newspapers are a trusted source for news. And now with the online/social media dimension, they can provide that news with video, just as well as any broadcaster. But perhaps more importantly, is that people actively pay for Newspapers. So they value it, they read it, they trust it. 

And that has real value to advertisers because they don't pay for TV, Outdoor, Radio.

It's the tradition of newspapers to break news and set the news agenda as you'll see. Story after story after story.

But importantly, they can do that "as it happens" so before traditional TV broadcasters who hold back their news for advertising lucrative evening broadcasts.

Newspapers are not threatened by the Web but rather, it brings new opportunities (such as subscriptions) without the massive cost of printing. And, they can enter the TV advertising arena through providing pre-roll commercials in front of their video news. Who'd have thought you can see a 30 second TV commercial in a newspaper?

Well done to The National Newspapers of Ireland who are pushing out the message with new confidence. And rightly so.

And along comes another, brilliant, simple, world class idea. Bluetooth Earphones.

Just when you thought everything was invented, along comes another great, simple idea.

Bluetooth earbuds.

Now I do know of wireless headphones like we all bought in the 90's for late night TV watching. And I do know of bluetooth earpieces for Iphones favoured by Taxi drivers. But bluetooth ear buds, as in the tiny earpieces we all have, I hadn't seen as wireless.

So no more chords to plug into your iphone, instead they're wireless over bluetooth. The ear buds just connect to a little device which links to your phone etc. So forget tangles, they're a thing of the past.

Elroy (I admit, a most peculiar brand name) is looking to raise funding on Kickstarter (crowd funding) and I think it's a real winner. Not only does it replace the mess of tangled chords but when you remove an earpiece (as in, someone says "hello" on the street), it pauses the music until you put it back in.

If you get a call, inserting the ear piece answers it and so on. Clever?

Really.

The mounts are also magnetic so when you're done, they simply stick to a box which you carry. 

Elroy were looking to raise 30k usd on Kickstarter and already they've past that mark. I'm not surprised.

This will be the way of headphones in the future (did I just say that?).
Well, I mean, it's a sure winner.

New Ad Agency launches. Brief them on Twitter, response in 24 hours, 999 dollars on PayPal. Dear oh dear.

A network of Ad Agency creatives in New York have just launched the fastest creative turnaround ever. Using Twitter briefs (that is, 140 characters of a brief, refreshing in itself), they'll respond with ideas (tag lines, communication platforms, stunts etc).

Claiming to be "the fastest Agency in the world" they say clients can say goodbye to "powerpoint decks, long lunches, meetings, to-and-fro emails, inaudible conference calls - I'm with that 100%, consumer focus groups" and so on. 

http://worldsfastestagency.com/ only seek 999 usd paid by 'PayPal' which I assume, you pay in advance. So goodbye too to billing/invoice queries and I assume, goodbye to any problems with the ideas seeing as you'll have paid for them.....

Founded by a 'Floyd Hayes', they're claiming clients including brands such as Unilever, Mini, Levis, HSBC, Vodafone and other blue-chip corporates. Also claiming to be "in short, I develop ideas to sell your stuff" which really does cut to the chase....

And if you look at the Video above, you'll see Floyd is pretty proud of himself. 

Of course, what this all does is further commoditises the work of Ad Agencies - rightly or wrongly - but one lesson that's clear in my experience is that good ideas require one thing. Time.

The longer you have, the better the idea or ideas. And it really is as simple as that. Good ideas rarely, come quickly and certainly in 24 hours, you'll not have something outstanding. Because with any idea, you need time to kick it around.

I can deliver an advertising concept in a minute, but how good will it be? (yeah, yeah, most will say I didn't deliver a good one in 20 years so okay then).

However, being the "fastest" Agency is a positioning which Agency's in the main, lack (they all appear "samey"). Or being the 999 dollar Agency is another positioning. And it grabs the headlines on the likes of 'Mashable' and Advertising publications. 

Fundamentally though, it damages the business of the Ad Agency and demystifies what they do. Floyd would say I'm sure, no bad thing and you know what, he might be right....even if this is a stunt in itself, pure and simple.

What it does point to is the need for big Agencies to stand up for themselves and explain clearly how and what their contribution is in the digital age rather, as they're prone to do, dismissing it. Or they'll keep getting hammered and hammered into a positioning as well-dressed money men with nothing to add.

Or else, Floyd will be rubbing his hands.

Turning buildings green. A classic piece of marketing for St. Patricks Day.

Accuse me of being biased but I do think the concept behind turning international, iconic buildings green, for St. Patrick's day, is a classic. Just as an idea, forgetting is has anything to do with Ireland.

But green is the Irish colour and internationally recognised as such - so a building lit up in green, means Ireland.

Sydney Opera House, The Burj Al Arab Hotel in Dubai, The Empire state Building (which I actually painted as a teenager, honest guv), The London Eye, Sphinx, Christ the Redeemer statute in Rio, Pyramids....all went green for Patrick's Day. A pretty impressive ad. And that great Irish city Chicago, where I once worked, as usual, turned The Chicago River green.

I have to say, I thought it was a stunning idea as well as all the Government Buildings turning green. At the launch of the idea, Streamabout interviewed Minister Varadkar who said the cost was 36,000 euro in total. That represents pretty good value then.

A lovely idea that actually happened. And yet again, simplistic thinking wins.

St. Patrick's Day. Ireland's gift to the English? Wayne Rooney.

Ah St. Patrick's Day....the celebration of all things Irish where we make a complete show of ourselves.

But there's one thing we do well - laugh at ourselves. No better man that Dara above to do that.

Now, where's my leprechaun hat.

Enjoy yourself.

The Underground Library. Turning the NYC Subway into a Library for all.

I'm big into books.

And what I like about digital books and ebooks is that they've actually brought in more readers. Like Itunes have delivered more music sales.

And at the time, you'll remember that it was thought that ebooks would kill reading and itunes would kill music, when exactly the opposite has happened. The web has been the saviour of the music business as it turns out.

Ebooks have also allowed virtual libraries where you "rent" a book (exactly as you do in a traditional library) and then after a time, it's deleted from your device. 

So the idea of students to make the New York Subway into a virtual library, is a cool one. After all, it's exactly the time when people want to read in transit. Through Ads in the trains, which look like bookshelves, they list a series of book titles, "best sellers". When a user scans the title with their smartphone.....

.....they get the first 10 pages for free as a sample. just enough to read on that commute.

Then they're reminded that the rest of the book is available for free, at the New York Public Library complete with GPS map as to how to get there.

Lovely, lovely idea, called 'The Underground Library'.
Still in concept phase, it deserves to be heard. And read. 

Amazing Cinema Advertising and Experience. Disruptive marketing for homelessness.

Smashing piece of work in Cinemas in Germany.

Simple idea - all the best ones are - which got cinema goers to experience for a moment, what it's like to be homeless.

Cinema goers sat in a cinema, were given an old blanket and the air conditioning was turned down, getting colder and colder. As it was, they watched a promo Ad/documentary by homeless people, about what it's like to feel cold. Even colder than the shivering audience.

It's disruptive, guerrilla advertising and of course, they were asked at the end to make a donation including by text and QR code. Which they did. So would you.

Experiential marketing call it, but effective advertising it is. Not only in creating funds on the night but by bringing home to people an experience that they wouldn't normally.

Watch the video and think how easy it was.
Big ideas don't have to cost big money.

Facebook pushes News through news feeds re-launch today. Newspapers take heart. This is your future too.

Facebook has gone through another re-design just as elaborate as the "timeline" changes in 2011.

It has overhauled its "news feed" interestingly, with Zuckerberg calling it "a personalised newspaper" not just with text but with imagery. It features blogger images, mobile consistency and multiple feeds.

This is a radical departure. The focus on news stories is more visual, images are much larger (taking 50% of the feed) and more centre positioned with an 'Instagram' feel. Of course, the key here is the ability to 'share' news.

More feeds, and more control of those feeds gives users more options, which you chose to 'follow'. Could be a news feed from family, from friends, about music and so on. Niche news that you want.

Being heavily mobile enabled too, is a good answer to criticisms of Facebook. 

The continuing journey for Facebook into online news is interesting and another competitor to traditional news orgs. But the fundamental issue around news, the fundamental issue around 'citizen journalism' is trust. You have to trust the source and are these Facebook feeds trustworthy? Not always.

News is pure gold as a content commodity. It draws people in and it retains them. The people in Pole position to provide trusted news are newspapers. And they'll get there with a little belief in themselves and with a mindset change that realises, their newspaper futures are online.

The biggest asset newspapers have, is not on a printing press, it's their websites. And it'll take time for Press men to get their heads around that, but get that, they will.

Do not despair oh ye of little faith.

Dove Real Beauty Campaign gets a controversial online download. Ad Agencies not happy.

Dove, the Unilever brand, is extending its "real beauty" campaign which launched in 2004 and came to prominence in 2007 at The Cannes Festival.

It's a campaign aimed in part, at the true illustration of women in advertising and in editorial - campaigning against "air brushing". It also seemed to align itself with a campaign against young women identifying with those images and consequently leading to eating disorders amongst teenage girls.

What they've done is to distribute a piece of software ('Photoshop Action') on Social Media sites. Whilst downloading the software pretends to offer better filter images (in an 'Instagram' kind of way) for the photograph, in fact, it reverts the photograph to its original - warts and all.

It is aimed at Art Directors and creatives in Ad Agencies who create advertising featuring beautifully retouched women. And it makes a point.

Needless to say, Ad Agencies aren't happy with the download because it doesn't do what it promised to do. They've hit back at Unilever claiming that the original Dove campaign itself, was photoshopped and they also point to other Unilever campaigns (such as for 'Axe' and 'Fair&Lovely' brands) which features.....beautifully retouched women. Or so they say. Basically, you can't have it both ways....

But the idea of using a download in this way, is clever. Or controversial.
It depends on whatever way you look.

Why you'll see good Video content coming off YouTube. Low Advertising cpm rates.

Now there is no greater fan of Google's YouTube (bought for over 1.6 billion usd in 2006) than yours truly.

It has, and is, a fantastic platform for Video and a great resource used by publishers and public alike. It has actually allowed and fostered freedom of expression and especially in countries where there's no other free media outlet. 

However YouTube is, and wants, to move into the TV arena and I've always said that YouTube will be the biggest global TV player when it gets structure.

However, that's the problem - structure.

In particular, what will make YouTube a broadcaster, is good content as it moves more and more into that broadcasting space. Attracting good content is now the issue as it tries to shift from what's called its "experimental" stage.

Content makers get paid by YouTube from Advertising and a lot are unhappy about the revenue they're generating.

Firstly, the problem is supply and demand. Simply as YouTube has more and more and more Video by the second (literally), the amount of Ad money to share around is less and less. Too much supply outpacing Advertiser demands. 

Secondly, and the bigger issue, is Ad rates.

YouTube's "cut" on ad rates is too high. At the moment it's circa 45% but that leaves content providers with a cpm (cost-per-thousand-views) of about 2 Dollars. Which in turn means that if your Video is watched 1 million times (very high), you generate 2,000 Dollars (very low). If you generate a thousand views (which is more likely and considered "good"), you make 2 Dollars.

Most of those quality video makers aren't happy with that revenue and with other Video sharing sites like Vimeo, are looking at those options especially when it's about quality content. 

The likelihood therefore, is that you'll see good content disappearing from YouTube unless they re-consider their rates. And that's a pity because, as I said, they're pioneers but Video makers have to eat too.

If it remains as a site offering cat and dog videos, it will never be the TV type broadcaster it aspires to be. And it will leave room for other video sharing sites to fill the void.

The Video market is maturing.

Apple Valuation dips below 400 Billion Dollars Shock!

Apple's market cap has dropped below 400 Billion usd, Shock! 
That's right....Billion.

Or at least, that's how it's being reported - as a shocker.

This week's decline in share value comes after a court judge has cut back, by 450 million usd, their award against Samsung for copyright infringement of 1 billion usd. 

Other uncertainty about profit margins on products (notably in China) and a lack of innovation, has reduced the market cap from 650 Billion in September (when the new Iphone 5 launch was impending).

It's still a staggering, unbelievable, valuation.

Google is worth a mere 270 Billion and Microsoft, only a tiny 230 Billion. So Apple is still way, way ahead.

And the ongoing coverage of CEO Tim Cook is generally pretty negative. It seems that if Apple sneezes, commentators get a cold, because their talk of Apple ("in decline", "losing confidence") seems to be deliberate for a company so strong.

And we know Apple is sitting on a pile of cash (which in turn, becomes a criticism that "Apple doesn't know what to do next with its cash").

It seems to me that few can ever get their head around Apple being without Steve Jobs. He seems to have been so pivotal, that his death has really damaged the company even still.

Always an issue for companies that are inexorably linked to people. When something happens to the person, it reflects entirely on the company. But he left it strong and so it is.

Talk of Apple's demise are unfounded. 
Worse than that, with a 400 Billion valuation.... they're silly.

Online TV and Movie Content. It's killing Television. It's killing Cinema. It could kill Advertising because it's ad-free.

Internet-only film businesses, have really declared war on Television. Netflix have invested 100 million usd in the remake of the British series, 'House of cards' with Kevin Spacey, as you'll probably know. 

A 26 episode series that's not on Television.

Rather too, than asking people to wait week-by-week for each episode, it was all released at the same time to subscribers. Viewers could then schedule it as required, as it suited them - something which kills the rigidness of TV schedules.

Indeed they produced 6 trailers. Each one targeting the particular demographic of the Netflix subscriber. So female subscribers got the weepy trailer, young males the fight scenes - another thing you can't do on traditional TV.

Online content is also not beholden to advertisers...rather, is driven by subscriptions and subscribers on fixed monthly rates.

Consequently programme viewership fluctuations, is not the issue anymore for online broadcasters - another gaping hole in the way TV works and is funded. Netflix, with nearly 30 million subscribers, just needs to keep attracting those subscribers to stay or join the service, nothing more. Whereas, TV stations have to keep reaching out to audiences, to get them to watch, to generate Ads, when we know, through second screen viewing, their audiences are shrinking. No, Collapsing.

Netflix has already commissioned another feature, a horror called 'Hemlock Grove' and because they're not advertising dependent, they need to simply feature on quality broadcasting. 

But online broadcasters will force change too. Voice control is the future too, for Netflix rather than "gesture control" being considered by other online broadcasters (like the Xbox function). So you simply "call out" your movie and up it comes and online will eventually create too many features that will just force TV stations to close because they simply haven't the technology to match.

Online broadcasting is affecting traditional movie-making too and not just TV.

Profits in the traditional movie business are down. Between 2004-2011, the big 5 studios profits were down -40%. Time Warner for example, in generating 12 billion usd in 2012 from film, generated 14 billion usd from TV/Online. And that balance is quickly shifting away from traditional movie-making towards content making that has subscribers attached such as cable/online.

Fees to cable/subscriber channels are estimated to be in the US, about 32 billion usd a year and growing +7% annually. And it's this steady income that content makers want to chase, rather than traditional TV dependent on advertising swings and thereby, focused on shows being popular (or not). Cinema revenue for film is equally volatile with "hits" and "misses". Content makers want broadcasters with steady income.

Film Theatre/Cinema attendance is not a growth business with too many distractions, such as Netflix, at home on multiple devices. 

DVD/Blue Ray sales are obviously down too, about -46% in the past 6 years. DVD Pirating in Russia and China has become an issue too nevermind general illegal downloads. Actor and Director salaries are being cut, as are the number of projects. 

It is the likes of Netflix that has been the lifeline for Hollywood, with big talent like Spacey/Hoffman/Jeff Daniels moving away from movies into online content. 

Equally too, Netflix and Amazon's Love film are competing for broadcast rights against traditional broadcasters and have the cash war chests, to win. It's estimated that Netflix spent 5 billion usd in 2012 acquiring content.

In terms of 'connected devices' such as smartphones, games consoles, laptops, ipads and so on, Americans own 2.6 of them in each household. So the "theatrical window" of holding back online movie release is now becoming defunct to allow movies access this online market. 'Arbitrage' with Richard Gere, was released everywhere at once and understood to have made 3 times the money because it had a massive global audience at once.

But movie makers don't like it (because they'll lose the cinema premium) and theatre owners don't like it either.

So digital programme/content provision is winning time and time again meaning traditional movie makers will switch (as will talent) into creating online content. It also means traditional TV stations are getting more and more stuffed.

They're being outbid for content; they're losing audiences; they're losing money (180m+ euro a year in Ireland for RTE) every year; their content is poor; and their model has a doubtful future. 

Even their anchor product - news - is being covered better and quicker (much quicker) by national newspapers online.

This game is over.

Mixed fortunes at daily deal sites LivingSocial and Groupon. CEO resigns and his letter is here. Both companies were stars....once.

Bizarre changes in fortune at Daily Deal sites LivingSocial and the original, Groupon, all on the same day.

LivingSocial announced today that it has raised 110 million usd in funding from largely, its original investors - so that sounds more like a "cash call" which might indicate difficulties at LivingSocial if it is. 

A memo from CEO Tim O'Shaugnessy (some Irish connection there I would think...) said it was to "build our reserves". And building they need given a loss of 650 million usd in 2012 up from a loss of 499 million the previous year. Over a billion usd in losses in two years.

It cut its staff by 10% (400) at the time with reports in December that it was "running dangerously low of cash". With losses like that, it's not sustainable.

On the other side, Groupon, the 4 year old, daily-deal-market-maker, fired its co-founder Andrew Mason who was also CEO (that's him above with the cat). It came just 24 hours after reporting bad numbers again for Q1 bring a 25% drop in share value. Now down -75% since it floated which 'Forbes' magazine calls 'The Groupon Disgrace' and said "talk about a CEO who no longer has any credibility with investors". Strong stuff.

Mashable posted his staff resignation letter which actually, I liked.

(This is for Groupon employees, but I’m posting it publicly since it will leak anyway)

People of Groupon,

After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today. If you’re wondering why… you haven’t been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that’s hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.

You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months, and I’ve never seen you working together more effectively as a global company – it’s time to give Groupon a relief valve from the public noise.

For those who are concerned about me, please don’t be – I love Groupon, and I’m terribly proud of what we’ve created. I’m OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. I’ll now take some time to decompress (FYI I’m looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe I’ll figure out how to channel this experience into something productive.

If there’s one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what’s best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness – don’t waste the opportunity!

I will miss you terribly.

Love,

Andrew

Groupon was the worst performing stock in the US market in 2012. Shares trade below 3 usd now, from when they floated at 20 usd. 11 billion of value has been wiped out. Groupon had turned down an offer of 6 billion usd some years ago from Google. And you might remember the accounting controversy at the time of the IPO.

What interests me in both of these stories is that you'd expect, in a recession, deal sites to be doing well. After all, it's in a recession that people want a deal and all the PR was, that this was what was happening. When clearly it's not and especially not for the segment leader, Groupon.

So I'm surprised. 

But then again there could be a more simple explanation. The market is good but these two companies were lousy. It could just be that, although that would surprise me.....

It seems that's what Forbes thinks who undoubtedly contributed to Andrew Mason's demise because they're such an influential magazine. Mind you, they seem to have forgotten that at the time before the IPO they were influential too calling Groupon, "the fastest growing company, ever".

Audrey Hepburn. She died in 1993 but she's back. Making one of the best commercials you'll ever see. Ever. Have a look here.

She may have died in 1993 but she's still making stunning commercials, beautiful Ads. Audrey Hepburn.

Chocolate Bar Galaxy (Mars), have taken footage from her film 'Roman Holiday' (1953 for which she won an Oscar) and starred with Gregory Peck. 

It wasn't her first film, but the role that made her and she got it after Elizabeth Taylor turned it down. In fact Peck got the role after Cary Grant turned it down too!

But they've created a new storyline for the commercial, on Italy's Amalfi Coast. Famous for a fairly breathtaking and a pretty hairy drive, the 'Amalfi Drive'.

Her family have agreed for her image to be used and just how stunning it is. Iconic. Watch and enjoy.

They've also picked a gem of a track - 'Moon River' - and in digitally restoring the footage, have added new life to it, new HD tones and it's truly magnificent to watch. 

Moon River was written for her and performed by her, in 'Breakfast at Tiffanys' (1961). Written by Henry Mancini, it was made famous by Andy Williams.

Of course it's not the first time footage has been restored for commercials,not by a long shot. That's not to take away from this imaginative, creative, stunning work.

The Griff Rhys Jones Holsten commercial (A Holsten for my Holster) stands out in my mind and the Steve Martin/Carl Reiner movie, 'Dead men don't wear plaid' is based around this very idea. You'll see 3 clips at the end and if you've time, have a look too, they're worth it.

But this one for Galaxy, is done well, really well. 

AMV BBDO London are the Agency and deserve the plaudits here.

So too, does it make the case for Video. Just look what you can do.

Only criticism is the endline about having silk not cotton which is just a pity. A real chance here to say something lovely, missed. 

But don't let that get in the way one bit. In fact I'm sorry I said it, because if you want to see that rare example of classic advertising in today's dross, this is it. BBH in their heyday would have loved to have done this.

It's just a classic in every sense and Audrey Hepburn looks so stunning, adorable. It will sell chocolate, of that, have no doubt.

(And while you're here...have a look....)

Is real advertising coming back?

Oscar night. Twitter night. 82,000 TPM's (that's 'Tweets per minute'). Oscars first ever online broadcast.

This was the first year the entire Oscar Awards show was broadcast online. 

Funny when I say that, because everyone goes, really? They expect it to have been done before which in turn shows that we need to remember just how new this digital age is.

The "Red Carpet" part of the show generated 2.1 million tweets with Jennifer Aniston's dress (in case you were wondering) the clear winner. Another 6.8 million tweets were generated during the show so an extraordinary amount of engagement on Twitter alone. It seems that viewers were more interested in the winners rather than the pre-fashion interview preview. Interesting.

The music numbers didn't disappoint with 'Skyfall' generating a lot of tweets according to Mashable. As they say, over 82,000 tpm's. TPM? Tweets per minute (I didn't know it either until tonight). Jennifer Lawrence's fall? 71,600 tpm. Anne Hathaway? 64,000 tpm.

That's per minute.......

Adele, who sings "Skyfall", is of course a big Social Media player anyway and maximises it. 

Of course Mo (that's Michelle Obama to you and me), announced the winner (as introduced by Jack Nicholson) of the Best Film (Argo) live from The White House and then tweeted this creating another Twitter stir; 

FLOTUS 

✔ @FLOTUS

It was a thrill to announce the #Oscars2013 best picture winner from the@WhiteHouse! Congratulations Argo! -mo

5:00 AM - 25 Feb 13

But generally this shows the interactivity between online and TV to full impact. It shows that online broadcasting is now a "standard" and that tweeting about content is pretty much old-fashioned, it is so popular and expected. The role of Social Media has now become as natural as email.

And big shows, like The Oscars, can really swing it into action.

Just a stunning night of glamour, celebrity and tweets.