Monday, April 11, 2011

How Much Will People Pay for Music?

A new survey by Nielsen suggests there is reasonable hope that some percentage of users will pay for online or mobile music. The bad news is that an overwhelming majority of consumers in every age category say they are not willing to do so, over the next three months.

It isn't clear whether the percentages would be meaningfully higher if the respondents were asked whether they would be paying for music any time during the next 12 months.

Especially among digital music’s early adopter 20 to 24 year old segment, the mobile phone is fast becoming the mainstay of how they stay connected to the world and how they listen to and increasingly buy music.

The good news is that nearly one in four (24 percent) of the 20 to 24 year old segment globally indicated they aer prepared to pay to download music videos on their mobile phone. According to the Nielsen survey, males aged between 20 to 24 clearly are the global early adopters for digital music consumption.

The bad news is that more than 75 percent of respondents claim they will not pay for any online or mobile music, streamed or downloaded, over the next three-month period. Up to this point, buyers have proven comfortable with a 99-cent price for a single song, extrapolated from, or to, roughly that same amount per song, for a compact disc.

But lots of executives in the media business still see more hope for subscription products of one sort or another, compared to any form of pay per view or downloads.

Twitter Investor Says Twitter's Valuation Is "Ridiculous"

Henry Blodget, who doesn't think we are in the middle of a tech bubble, says he asked a Twitter investor what the Twitter investor thought of Twitter's current private-market valuation.

"It's ridiculous," the Twitter investor said, given that private market benchmarks put the company's value at between 30 times and 50 times revenue. But Twitter is not your run of the mill application startup, either. Lots of other firms with "social" as part of their pitch will never amount to anything. If you had to bet, and clearly some people are, you'd likely think Facebook and Twitter will be survivors, after the inevitable shakeouts happen.

"Mobile Wallet" Tutorial

Apple ewalletThis "mobile wallet" tutorial points out why application providers, mobile service providers and traditional payment providers all are working on mobile payment and mobile banking applications, at least in terms of the "payment transaction" parts of mobile payments.

Some of us are pretty sure it is all the other stuff that ultimately going to be more important. In part that's because the current business of making money supplying payment services using credit cards and debit cards is likely going to face regulatory pressure in any case, shrinking the total size of that business.

But there are lots of substantial businesses that can be transformed by better application of smart phone capabilities, ranging from advertising and promotion to loyalty programs and in-store promotion, not to mention actual retail shopping.

read more here

Best Buy Lags Online Sites

It probably was inevitable that Best Buy would start to feel the impact of competition from online sites. It now appears as though the serious pressure has arrived.

While Best Buy remains the largest electronics retailer, consumers these days are used to having multiple options for everything, and many of the other retailers are rapidly encroaching on the space. It goes without saying that the competition is online.

uvs bestbuy amazon apple target walmart

Simplicity, for Sprint Means Unlimited Usage

Sprint has been pushing the value of "simplicity" for its unlimited usage plans. It still is.

Survey Shows Growth of Brand-Sponsored Media

Ignoring for the moment the somewhat odd way of displaying trend data, for which the convention normally is to display chronological data left to right, the amount of money brands are spending to create original content of various types keeps growing.

If you hadn't thought about it much, this shift is part of the broader shift in "media." Where once it was publishers, film makers, record labels, newspapers and other traditional entities that created media, these days it is that, plus millions of consumers creating videos, blog posts, Facebook entries and Twitter posts that also are a new form of media.

Among the other changes, brands themselves are becoming more active content creators, blurring the line between traditional and new forms of media.

read more here

Google Buys PushLife

Google has purchased PushLife, a Canadian company that provides Apple iTunes functionality. Presumably the assets will be used to create a more robust music store capability.

Verizon Launches New Mobile Streaming Platform

Verizon is unveiling new "content-to-consumer" delivery capabilities, allowing content owners to distribute live and on-demand, personalized video content to users of smart phones and tablets. Verizon Digital Media Services automates manual workflow processes associated with formatting, managing and delivering digital media to virtually any device or platform on a large scale.

Verizon Digital Media Services will ultimately enable high-quality and reliable "unicast" (individualized video streams), though initially it is multicast content that the service will support.



http://www.prnewswire.com/news-releases/verizon-unveils-advanced-digital-media-management-and-distribution-platform-for-entertainment-industry-to-capitalize-on-new-content-to-consumer-experiences-119578669.html

Coupon Factory Launches Small Business Coupon Platform

Rockfish has launched CouponFactory, a coupon platform for businesses that combines the coupon creation with distribution and analytics. 

CouponFactory is a platform that gives brands and small businesses a simple way to create coupons. The service includes an easy-to-use web interface , customer data collection, no set-up fees, detailed digital coupon analytics, coupon fraud control, as well as mobile, web and social embed options. The service also lets companies place their coupon widget wherever they choose.


CouponFactory from Rockfish on Vimeo.


CouponFactory launches coupon platform

Netflix Is 2nd-Largest Pay Video Provider, by Subscriber Metrics

If one were to add Netflix to this chart, it would rank about second, with some 20 million subscribers. Granted, there is a significant revenue magnitude difference. Netflix gets something on the order of $12 a month per subscriber, while Comcast gets about $118 a month. On the other hand, Netflix offers a product that competes most directly with premium channels such as HBO, Showtime and Starz.

Those channels cost between $10 to $16 a month, typically. We are some ways from the possibility that Netflix or YouTube could actually become a competitor in the "basic cable (ad-supported channels)" segment of the business. But 20 million paying customers is a huge advantage.

Facebook's "Open Compute Project" Will "Commoditize" Data Center Facilities

Open source projects almost always represents an effort to take something that is essential for a business and reduce its cost of acquisition. In other words, a firm benefits if it can bring much more competition to the businesses that supply its inputs. Firms try not to do this with respect to the core values companies believe they bring to the market. Open source tends to level the playing field while marginalizing competitive advantages others might have had.

Microsoft commoditized PC hardware because its software needed a home. Companies that contribute heavily to open-source, such as modern-day IBM, commoditize software because they sell consulting and support services.

Google commoditizes applications, platforms, and web technologies because it needs places to put its ads and people to see them. (Google also tries to commoditize anything required to get online: web browsers, DNS, and in some cases, even internet connectivity.)

Apple commoditizes apps to make iPhones and iPads more attractive. That's why telecom and other capacity and access executives hate the notion of "dumb pipe" so much. It is essentially an effort by other players in the ecosystem to reduce network services to a commodity.

RIM Gets "No Respect"

SAI chart Android iPhone iOS market share iPod touchResearch In Motion co-CEO Mike Lazaridis is frustrated about investor concern. “Why is it that people don’t appreciate our profits? Why is it that people don’t appreciate our growth?"

"I don’t fully understand why there’s this negative sentiment, and I just don’t have the time to battle it," he said. The quick answer is probably jitters over recent market share losses.

Apple Keeps Lead, but Android to Grab 39% of Tablet Sales in 2015

Gartner said it expects 70 million media tablets to be sold this year and 108 million in 2012, compared with 17.6 million in 2010. Apple's share of the market will gradually decline to 47 percent in 2015 from 69 percent this year, while Google's share will rise to 39 percent from 20 percent now. 

Startups Use Free WiFi to Limit Expenses

Small business owners are notably parsimonious when investing in information technology, so you might not be surprised that many startups take advantage of free Internet access in public locations as much as they can.

In some cases, very-small business owners even use the public spaces when they could otherwise simply use the connections at their home offices.

Tablet Role in "PC" Market?

People disagree about the role tablets play today, and might play in the future, in the consumer computing device market. Some think the tablet can, and will, displace other PC devices as a "primary" device. Others think the tablet is an ancillary device primarily to be used for media consumption. Some think "consumption" will remain the primary usage mode, while some think "content creation" capabilities will grow, over time.

Up to this point, the center of gravity likely remains "consumption," however. Recent surveys suggest users play games, check and respond to email and surf the web and watch videos on their tablets. But that doesn't mean they can't be used, and are not used, in a "business" or "work" context. As in the past, where some business people when traveling relied solely on a smart phone, rather than carrying a notebook PC with them, so tablets seem to be used in settings, where the actual work activities mostly consist of checking email and surfing the web.

For sales personnel, the tablet likely represents a more-convenient way to make presentations, as well.
"Easier to use" seems the key, in that regard. As it turns out, for many users, most "PC" activities take the form of consuming content, with the exception of responding to email. The tablet then represents a more convenient way to use the apps that actually are important in many settings.

PCs still remain necessary for "content creation" and other work tasks. In that sense, tablets represent a new element in computing ubiquity and pervasiveness, rather than a direct replacement for "primary" PCs, much as smart phones do not generally replace PCs, but extend web and Internet access to a wider range of settings.

Enterprise Apps Need to Become AI-Native Faster than AI Rearchitects the User Interface

The phrase “ Netflix wants to become HBO faster than HBO becomes Netflix ” captures a classic dynamic in technology-driven industry change, ...