Blog Readership 67% of Internet Users by 2012

Blogs are a new form of media, but they are "media." The number of people creating blogs in the United States will reach over 35 million by 2012, roughly 16 percent of the Internet population, according to eMarketer. But as is the case for most forms of user-generated content, most people are content to watch, listen or read, rather than creating content themselves.

By 2012, more than 145 million people, 67 percent of the U.S. Internet population, will be reading blogs at least once a month. That is up from a readership of 94 million in 2007, or 50 percent of Internet users.

Paul Verna, eMarketer senior analyst, says "U.S. blog advertising will reach $746 million in 2012, up from $283 million in 2007."

Like podcasts, blogs tend to appeal to specific audiences. Accordingly, much of the demographic targeting that marketers work so hard to achieve in the mainstream media is already done for them.

U.S. Wireless Data $24.5 Billion in 2007

U.S. wireless customers spent $24.5 billion on data services in 2007, with usage growing 55 percent, says consultant Chetan Sharma.

Growth increased steadily through the year, with fourth-quarter 2007 data services revenues hitting $6.9B. At current rates, the only question is how much above $28 billion will be spent in 2008.

Fourth quarter data revenue was up 7.8 percent sequentially. Average revenue per user .declined by $0.81 and reversed the trend of overall ARPU uptick of the last two quarters, though.

Average voice ARPU declined by almost $1.50 while average data ARPU inched up by $0.68, Sharma says.

Verizon and AT&T grew annual data revenue 64 percent. Overall, the top carriers earn about 19.34 percent of total revenue.

Non-messaging data revenues continue to be in the 50 to 60 percent range of toal data revenues.

MID Movement Good for 4G

Asustek Computer will launch its Atom-based 8.9-inch Eee PC 901 in June 2008. Hewlett-Packard recently launched a Windows XP version of its Mini-Note 2133. Dell is said to be readying its own version of a mini-notebook. Given the popularity of Linux-based Eee devices, and the addition of XP-powered machines, a class of devices--"mobile Internet devices"--is being seeded into the market that are precisely the sort of new mobile-centric machines fourth-generation networks are poised to serve.

Chatter: Best Buy Buying Netflix?

It's just one of those rumors that pop up, possibly because an investment bank thinks it can drum up some business by convincing a company executive a deal makes sense. But there's chatter, says Henry Blodget, that Best Buy is looking at buying Netflix. Some investors think there might be fire where there's smoke, and pushed share of Netflix up six percent on higher volume May 16, 2008.

Given that Blockbuster is being persued by Circuit City, what gives? The logic behind each transaction is that a tighter integration of software and hardware is good for both businesses. Sony, with a mixed track record, used precisely that logic to get into the studio business. And Apple uses a similar approach for iTunes.

The issue, perhaps, is whether there is enough ability to integrate on-demand video and DVD rentals and sales with the rest of the consumer electronics retail business. That might be hard to envision.

Still, each retailer, like Wal-Mart and Target, already is in the video content sales business. Software drives hardware purchases; and hardware purchases create the demand for software sales.

But mergers, in either combination, might not be the most-efficient way to create additional value. Either Blockbuster or Circuit City could sell subscriptions, provide kiosk support or otherwise heighten its software profile without actually buying a partner.

Still, the rumor does point out the increasing retail involvement in on-demand, time-shifted video. VCRs, DVDs, iTunes players and video-compatible mobile devices all are ways consumers "watch what they want, when they want it."

And since major mass market retailers are customer touchpoints for the hardware and software sides of those experiences, move movement, if not these particular deals, will occur.

Summer 2008 Voice Peering Forum Commercial

The next meeting is in San Francisco, June 23-24 at the Hotel Nikko. It will feature the most-extensive speaker line-up ever and will feature the biggest attendance ever

“From a bottom line business perspective, Voice Peering Forum Winter 2007 was hands down the most productive conference I attended last year." said Patrick Murphy, COO, The Thomas Howe Company, a leading professional services firm focusing on voice mashups and communications enabled business processes, and is widely recognized as one of the most influential firms in VoIP.

"The voice over IP market is booming, the Voice Peering Forums provide us with a great opportunity to discuss the different topics with a right set of players in a good size and focused environment." commented Carlos Da Silva, Director of Marketing Americas, Orange international wholesale solutions.

IPTV: Why Verizon is in No Hurry

For many telcos, IPTV makes sense as a delivery platform or transmission mechanism as much as anything else. Sure, IPTV offers more "hooks" to advanced services integrated with content. But the revenue battle now is over linear TV services that compete with cable and satellite-delivered fare, and that means the choice of "switched" IPTV, instead of a broadband digital delivery method (all linear channels delivered digitally) isn't perhaps as critical.

For Verizon, which has been its video using a method that is closer to cable TV than anything else, linear offerings seem to be fine for the moment. That's where the money is.

Even operators that have chosen an IPTV solution for its bandwidth efficiency still are making their money on the linear video service, not the new features.

Clearwire "Time to Cash Flow" Issues

Some observers continue to worry about Clearwire's prospects from a financial, rather than operational standpoint. At the very least, there remains an underfunded business plan. Clearwire says it is $2 billion or so. Assume Clearwire is correct. That money still remains to be raised.

On the operational front, early 60 percent of domestic markets are EBITDA positive. Of course, any veteran of the competitive communications business will understand what that means and doesn't mean.

It doesn't mean Clearwire is making a profit in those markets. New national networks, even of the more-affordable wireless sort, are hugely expensive. Cash flow is important, though, and a reasonable measure of progress.

The issue is that nobody builds a new broadband network these days expecting to survive offering a single service, no matter how compelling. Multi-service bundles are the necessary requirement when penetration levels are expected to be modest, so VoIP is getting more attention these days over at Clearwire.

The issue will be whether Clearwire can garner enough revenue operating essentially as a "3G with voice" operation or "broadband with VoIP" business until the next wave of applications and devices start to get traction.

Some of that Clearwire can influence, but not all. If I had to guess, I'd bet that robust wholesale services ultimately will make the difference.