Posts Tagged ‘content’

From Mobile to Media: Two Quick Shots

Friday, March 5th, 2010

It sounds like a joke, or a scene from a TV (or perhaps YouTube) skit about our wacky modern world – shoppers inside a store using their smartphones to look up product information or comparison shop. Especially when it is a wine merchant, some snark is hard to resist.

But it is a hot new trend, says Bill Siwicki at Internet Retailer, and the merchants are jumping onto it. As usual there is a big generational divide; a quarter of mobile phone users under age 45 used their phone while shopping in a store; fewer than one in 10 older users did so.

Middle-aged fogie though I am, phone-a-friend (or product review site) while shopping makes a lot of sense. The only reason we weren’t doing it before is that we didn’t have the right gadgets. And now we do.

On another front, we all know that newspapers are hurting, and they do not suffer in silence. A whole genre had emerged decrying the death of newspapers and worrying about the future of news.

The worries won’t be eased by a new Nielsen survey reported at SFGate.com (the San Francisco Chronicle website). Internet users, especially in North America, are a tough sell when it comes to paying for news content.

But the same study shows that people are a good deal more willing to pay for movies, music, and games (and professional quality video, but not the user generated kind). The Kindle shows that they will also pay for books.

It seems that people are willing to shell out for content they regard as individually distinctive. If you want a particular song, or a particular book, you’ll pay for it.

The problem for newspapers is that people usually don’t care about a news story for its own sake – its sparkling style or dramatic mood – the way they care about a book or movie. They just want the news, and understandably regard widely available information as a commodity.

No, this does not lead me to a magic solution, but understanding the source of the challenge is a decent place to start.

Tech Execs Committing Truth

Sunday, February 21st, 2010

In an article unfortunately not directly available online, Roben Farzad of Business Week talks about ‘AT&T’s iMess.’ That is all you need to hear to know the basic story. iPhone users love their iPhones, but they hate AT&T and are quick to say so.

Analysts are paid to commit truth, and Rich Doherty of telecom market research firm The Engineering Group has some embarrassing truth for AT&T, ‘I’m not aware of any company in this country that has had so aloof a stance toward quality of service.’

I get my landline and broadband from AT&T, and have no problem with them. But I have none of the warm and fuzzy feelings I have toward my computer or software. Bandwidth is a classic commodity good, without distinctiveness, something you only notice when it isn’t available or reliable. But it can’t be good for a company when the only buzz it is getting is about bad service.

In other news, people talk about having thousands of tunes on their iPods, and they can’t have bought them all from the iTunes Store at 99 cents a pop. Lee Gomes at Forbes lets the cat out of the bag. Content piracy remains pervasive – and in fact the industry depends on it.

People find music to play on all those iPods. And Gomes cites one representative from a computer maker that produces high end home theater setups, who admits that they are used mainly for viewing illegally downloaded movies.

Also in Gomes’ sights, ’some newspaper publishers’ – read Rupert Murdoch – who complain about Google. People don’t need Google News to read stuff lifted from Rupert’s rags; there are a million gossip and political blogs happy to provide it. And if they didn’t, how many readers would pay for it?

The underlying truth is that we have no problem paying to use the Internet. Mobile or landline, we pay every month, and only complain if the service is bad. What we won’t do, except in exceptional cases, is pay a second time to see particular content.

And yes, my implied stance here, which is that of most Internet users, creates an impossible business model. But if content is king, the customer is emperor, and the users will likely win in the end.

Also the article is worth reading just for the wind-up quote from William Watkins, former CEO of disk drive maker Seagate, about the content his products are used to store. ‘We’re not changing the world,’ said Watkins. ‘We’re building a product that helps people buy more crap–and watch porn.’

Of course, that is a way to change the world, too. It worked for a tech entrepreneur named Johannes Gutenberg.