The Digitalists

New Perspectives on New Media

Archive for June, 2009

Study: 33 Percent of Digitalist Bloggers Would Pay Steven Brill to Just Go Away

Posted by Greg on June 26, 2009

I don’t want to keep blogging about paid content and micropayments; the concepts have been dumped on enough throughout the blogosphere, including right here. But when I read all the respectful MSM coverage still being given to Steven Brill’s Journalism Online, I start feeling like Will Ferrell’s character in Zoolander. I mean, why is anyone still listening to this guy? Am I taking crazy pills?

Brill had a couple business successes earlier in his career, including American Lawyer and CourtTV. But in the past two decades, he’s been far more famous for his flops: Brill’s Content, Contentville and, just this past week, airport-verification service Clear.

I don’t mean to suggest that people should ignore Brill because not all of his ventures have panned out; even the best entrepreneurs can’t be expected to bat 1.000. No, people should ignore Brill because, the more he talks about his plans for paid content, the more it becomes clear just how clueless he is. Read the rest of this entry »

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DHD website sold for $14M: Send finder’s fee check c/o The Digitalists

Posted by Daniel Granof on June 25, 2009

A bellwether for a digital economy turnaround?  Nikki Finke’s Deadline Hollywood Daily, which we featured only days ago, was sold for an estimated $14M to Mail.com this week, according to industry website TheWrap.  Coincidence?  I think not.  A mere mention on our venerable blog obviously would gild the site’s value by a factor of at least ten, so don’t we deserve some sugar?  No?  Okay, then we’ll settle for a good timing certificate.

So is this a legitimate benchmark for new media or an anomaly?  Seems like the latter.  Sharon Waxman from TheWrap had a great commentary on this issue three months ago: Read the rest of this entry »

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News Media Kicks Twitter Hyperbole Into High Gear

Posted by Dan Sachar on June 18, 2009

There is no question that Twitter is performing a heroic and invaluable service during this period of civil unrest in Iran. Reading Andrew Sullivan’s blog and the tweets it posts from Iran, for example, has been enthralling.

But it’s amusing to see the mainstream news media fall over themselves to praise the revolutionary aspects of Twitter itself when it comes to these movements. Part of the hyperbole stems from the fact that the CNN’s of the world don’t have good access and have essentially been shut down in Iran, so the drama of their news coverage has now been transferred to covering the social networking aspects of this story. And dramatic it is, and worthy of discussion.

But I can’t count how many times I saw pundits re-phrase a variation of the same question posed by Joe Scarborough from MSNBC (on Twitter, of course, so it carries “street cred”):

Will Twitter and the Internet prevent a Tiananmen Square-styled crackdown in Tehran? Will technology trump theocracy?

Almost every pundit I saw on the news asked the same question – and frankly, I don’t get it. A violent regime won’t crackdown on its people because of the people’s ability to get the news out via Tweets? If they’re going to crack-down or not, I promise you that social networking tools are not going to factor into the decision-making process. It’s the 21st Century. Word is going to get out one way or another about these things and the regimes know it. Twitter might help any protestors or even counter-revolutionaries organize themselves, but prevent a crackdown? Twitter is an important tool, but it’s not that powerful.

This news hype is, rather, a “perfect storm” of multiple phenomena coming together all at once. First, we’ve been hearing about this “Twitter” thing in the press for months now, so the hype had already been building (how many clueless executives read about it in the paper and called up their marketing agency to ask, “Are we doing the Twitter thing?”). Now, we have a dramatic and clear example of its usage in Iran that almost helps these news outlets explain what Twitter and its utility is.

The combination of these facts, the shutting out of the traditional media from access in Iran, the media’s trend towards general hyperbole and preponderant cluelessness about Internet technology all have brewed a concoction in which Twitter is now going to be the savior of peace and harmony in the galaxy.

Twitter has played a great role in this thing, but one of its side effects (or benefits) is to highlight the increasing uselessness of some of these traditional media outlets.

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To Hulu or Not To Hulu

Posted by Daniel Granof on June 17, 2009

Deadline Hollywood recently had a thought-provoking post about whether studios and networks are ensuring their destruction by putting their TV shows online.

Brief background:  for those who like their entertainment news served with a side of sauce, Nikki Finke’s Deadline Hollywood is the ultimate source.  It has breaking industry stories combined with insider gossip and some pretty smarmy commentary from Ms. Finke, who regards herself highly but with good reason:  she’s accurate and often provides dead-on and insightful analysis with her commentary.  The blog became the go-to place during the WGA strike for the absolute latest developments, with Finke clearly siding with the writers and other creatives.  Digital revenues were at the heart of the strike, and Finke has now added that topic to her inventory.

In her post she covers a Wall Street conference call that looked at a big-picture question:  are studios destroying their ecosystem by racing to make so much of their programming available for free on sites like Hulu?  The consensus was yes, they are, because their shows make significantly less in ad revenue when shown on the web   (64% less for a broadcast show, 36% less for a cable show, according to reputable analyst Spencer Wang).  They argue that such lower revenue can only lead to shrinking or negative profit margins.  And this growing problem will eventually require studios to figure out a way to charge web viewers for content, most likely through some kind of subscription system, or to place more ads on the content.

Such conclusions continue to amaze me because of their implied assumptions:

Read the rest of this entry »

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Craigslist, Classifieds, Correlation and Causation

Posted by Greg on June 15, 2009

I’ve heard lots of commentary about this chart from Silicon Alley Insider supposedly proving that “Newspaper billions become Craigslist millions.”

I’m not disputing the broader conclusion — clearly newspapers advertisements have lost a lot of value, clearly Craigslist has taken only a small percentage of that value, and clearly some of it has simply disappeared. But this chart proves nothing of the sort.

First, the notion that all of the lost value in newspaper advertising has either gone to Craigslist or vanished into the ether is ridiculous on its face. I would imagine that far more of the money that would have otherwise been spent on newspaper ads has gone to Google, Amazon, eBay, Monster.com, and many other media outlets. Second, all this chart actually shows is that a small, barely-for-profit company has revenues that are orders of magnitude lower than the sum total of a large number of companies in an established industry.

For a good illustration of how silly it is to draw conclusions based on such data, consider the following revenue comparison (which I threw together in about five minutes) between Facebook and GM over the past four years: Read the rest of this entry »

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Social Networks’ Missed Opportunity

Posted by Greg on June 12, 2009

According to a recent study, businesses find Twitter more important than LinkedIn. On the one hand, that’s not really a fair comparison; Twitter is a communications platform, closer to email or IM than social networks such as LinkedIn or Facebook. Still, the study raises an interesting question: Why haven’t social networks made more of an effort to provide value to businesses?

Compare and contrast: The other night, after dinner out in our neighborhood (Fort Greene, Brooklyn), we stopped by an ice cream stand that a local restauranteur had opened around the corner from our apartment. It was fantastic, with natural ingredients and exotic flavors that change daily (I highly recommend the Salted Caramel Pretzel). We chatted with the owner for a few minutes, and he mentioned that he had set up a Twitter feed to broadcast out each day’s flavors. The thing is, it’s not like the guy was some social-media geek jumping on the latest fad; he seemed almost sheepish telling us about it. More likely, in spite of his misgivings, he recognized Twitter as an effective marketing technique to drive repeat business. In other words, Twitter’s benefits are so obvious, even reluctant businesses feel they can’t pass them up.

Meanwhile, my current employer is a hybrid B2B/B2C company that should theoretically be able to use both Facebook and LinkedIn to connect with our users. We have cursory presences on both social networks, but we don’t get much use out of them. (In case you’re wondering, we’re all over Twitter, with numerous feeds and more than 30,000 followers) For awhile, I felt like that was our fault. But then it occurred to me that I really couldn’t think of any companies with whom I regularly interact on those networks. Nor, does it seem, has either one gone out of its way to make itself more useful to companies. In fact, they’re rather difficult for businesses to use effectively. Read the rest of this entry »

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