Wednesday, February 18, 2009

From Champaign IL.

Greetings from Urbana-Champaign IL. and the offices of Illinois Ventures and One Llama Media Inc.

I apologize for the delayed post. A bit of travel, a lot of work, and family chaos.

Music Librarians Association http://www.mla2009.org/

Tomorrow I am giving a presentation to the Music Librarians Conference about Music Search which relates to many of the discussions I have had over the last two days about data and metadata and The Semantic Web.

This teases my lecture about music search.

When you do a typical Google search you are looking for string matches, that is a simple match to a string of letters usually in the form of a word or phrase. There are almost always far too many matches for all but the most unique words or phrases to possibly explore so Google uses some mathematical sorcery embodied in its page rank algorithm to rank order the results by relevancy. Google doesn’t know if by U2 you mean the video, the concert tour, the MP3, the JPEG of Bono or a submarine. It would be nice if somehow the concepts, aka the categories of audio files or biography or concert or rockstar or vessels were contained within the web pages themselves and reported to Google’s query so that it would be able to cluster around such things. In a Semantic Web universe web pages not only contain keywords, they tell search engines what the context of the keywords are and if there are special vocabularies to consider.

News
To follow-up on my Moguls and Megacorps lecture, Viacom reported its Q4 Profits down 69%, Pioneer announced its laying off 10,000, most of the chipmakers reported decreased demands. We discussed the change in Facebook’s TOS last week and sure enough it triggered a firestorm of criticism, which has resulted in FB backtracking on the the policy of “keeping” user data in perpetuity even after it has been “deleted”. This inspires me to re-read Huxley’s BIG BROTHER.

Rhapsody subscribers landed at 775,000 by the end of 2008, up 29 percent from a year-ago figure of 600,000, but still far less than needed for success. Sirius XM is saved by John Malone and Liberty Media, the holding company we learned about last week. Could be a blocking strategy against Charlie Ergen and DISH Network’s takeover intent. Why do you think satellite radio is important to DBS? I believe that the only long term economic solution for the Music recording industry is bundled all-you-can-eat DRM-free, or light-DRM subscription services along with broadband and / or mobile services.

What Would Google Do?

As Mr. Jarvis Jarvis told us last week, Google is always in beta. What would Google Do? Know when to hold em, know when to fold em. Over the past few weeks Google nixed at least 7 projects/companies/experiments.
Jaiku.com: Competition to twitter but was advertised as a multimedia activity stream. Google acquired this in October of ’07. Never reached critical mass. Why twitter and not Jaiku?
  • Lively.com: 3D Vitual World
  • Dodgeball.com: Location aware app that knows where your friends are. This was another acquisition only a few years old.
  • Radio Ad Program: Based on dMark which Google also acquired.
  • Print Ad Program: As we discussed
  • Catalog Search: Searched print catalogues and was pretty handy.
  • Notebook: I never heard of it before the news if its demise.
Random Spottings
  • A very interesting Digital Supply Chain company:
    http://www.nstein.com
  • An online MTV-Like network
    www.lp33.com

Have a great class tonight without me!

Don't forget to sign up for your presentation spot! Sphere: Related Content

Monday, February 2, 2009

PGA West Panel Summary: Crossing Over, Bridging the Gap Between Traditional and New Media

I learned two new terms at the PGA seminar at the Egyptian Theater in Hollywood last night, Transmedia and Retail Media Network.

Jeff Gomez, the CEO of Starlight Runner Entertainment characterized his company’s work as developing Transmedia properties. His case study was the Coke “Fun Factory” commercial (http://www.youtube.com/watch?v=NwCn-D5xFdc ). The most popular commercial ever for Coke featured an animated fantasy universe populated by whimsical characters who create a bottle of Coke for delivery through a vending machine. After the Ad Agency of record failed to deliver, Starlight took the characters and narrative threads and expanded them into a universe with back-stories, characters, myths and legends along with a 7 year rollout plan for all media to exploit for Coke which could include animated features, shorts and games. Starlight’s has also created such transmedia extenstions for Mattel, Hasbro and Acclaim Entertainment. This concept of extending story and character into all dimensions is a fascinating aspect of advertising, marketing and new media. Properly done it can imprint a brand in new and compelling ways.

Adam Sigel is a Writer / Producer with a special skill set for adapting materials across platforms. TV, Film, Internet. Afterworld.com is an example of a “universe” that could be a TV series, or feature film but exists as a 30 episode animated Internet series with a website that immerses fans in characters, backstories and mysteries about this dystopian world. Adam reminded us that on the Internet you could create and distribute unfettered by corporate media citadels and go direct to the audience.

Jason VanBorsum is Executive Director of Director Digital Content Acquisition and Strategy at Sony Picture Television’s Crackle.com. Jason emphasized that Crackle specializes in releasing original episodic content onto the Internet. One can easily spend several evenings browsing dozens of shows in almost every genre. Crackle acts like a sort of farm league for programs, some of which may graduate to Sony Televison for “traditional” production and distribution. Jason emphasized that Crackle does not rely on “supersyndication” which he felt de-values original content too much. Supersyndication is the practice of publishing content on sites such as YouTube, Bebo, Veho and others. Although simply posting content on YouTube is enough to reach a about half of the Internet audience. Mr. VanBorsum could not reveal audience statistics on Crackle so it is left for me to speculate on how the audience for original entertainment online will shakeout. From viewing eps on Crackle, it is obvious that these are low budget productions. It is also obvious that there is an explosion of creativity and experimentation here, full of programming that gets a chance to find an audience that it would not get on traditional TV.

Anne White is VP of Content and Strategy & Development for the Premier Retail Network, which reaches an astounding 300 million people per week! PRN creates the in-store, AKA, out-of-home, TV networks that you see in retail chains including Best Buy and Wallmart. It was interesting to hear her talk about how content is developed for these networks and how precisely it targets shoppers with relevant content for their demographic and their shopping mindsets. Using IP, networked technology, shoppers can now interact with screens to get specific information about what they want when they want it. Programmers can instantly adjust content at the network, store, department and even the screen level! The classic example shown is rain gear goes on sale and is advertised the instant it starts raining! Sphere: Related Content

Friday, January 30, 2009

UCLA Media Tech Class Winter Quarter 09 Class #4

Guest Speaker Next Week
I am happy to announce that next Wednesdays guest will be Deedee Gordon founder and principal with Look-Look (www.look-lookmagazine.com) . This is an ethnographic market research company with a global network of over 30,000 “correspondents”, and a true innovator in trend-spotting. I think it relates to our topics because she focuses on youth culture and we can discuss her observations about behaviors and trends related to technology.

News
We discussed Piracy and if it really cannibalizes DVD and BD sales as much as the studios say it does. We also delved into how much digital downloading and streaming will impact DVD sales and how quickly. That thread was triggered by news of Netflix 45% quarterly earnings boost and why it happened. More “cocooning” during hard times? A bump from BD? A bump from Netflix deals for online delivery including via some Samsung TVs and via set-top-boxes. News form NATPE is that this was much discussed. Israel is posting clips of missile strikes to show how “surgical” they are. I watched some hair raising videos of other ops as well. Oh, and the Vatican now has a Youtube Channel too. There were over 27 million streams of the inauguration.

Lectures
History of Content
Mark covered the macro timeline from the dawn of radio through to broadcast TV, CATV and the multi-channel universe of today. As an aside, a fascinating historical novel on the dawn of radio and Marconi is THUNDERSTRUCK by Erik Larson. It really shows just how revolutionary the invention of “wireless” and the first transatlantic transmissions really were.
Trends Part 3
OK, I’m really almost done with the trends already. I got through how advertising is transforming to being hyper-targeted and budgets are shifting online at the expense of traditional media. Sphere: Related Content

Monday, January 26, 2009

UCLA Media Tech Class Winter Quarter 09 Class #3


Diaries
Thanks to Stephen, Annie, and Gary for breaking the ice on discussing diaries. Stephen discussed his rather conventional scheduled TV viewing habits while in stark contrast, Annie watches no scheduled TV at all and relies on her DVR. Gary uses On-Demand services from his DirecTV however he goes live for sports. Others in class mentioned they are two or three screeners; keeping their PCs, Laptops and / or Mobile going in the background as they watch TV.

The point of this exercise is to understand how media consumption behaviors are changing and fragmenting and thus, changing nearly all aspects of media and entertainment businesses.

Please continue discussing you diaries over the next several classes.

News
  • Down the thread of Tracy’s story last week of how Google wants to help newspapers, several of noticed that Google announced that it’s shuttering its print advertising division because the revenues were too low!
  • Sony opened a BD factory in China, in spite of rampant piracy. Could it be that consumers WILL pay more for better quality? I mentioned that I thought that BD was more difficult to pirate than DVD and I was promptly contravened. Sure enough the AACS DRM has been cracked ( http://arstechnica.com/news.ars/post/20080325-blu-ray-drm-definitively-cracked-update.html ).
  • Clearchannel was discussed via a vis its layoffs and its constant push to economize, standardize and centralize “local” terrestrial radio.
  • Virgin Records gave up its Times Square location to Forever 21. Another music industry landmark bites the dust.
  • The 3D TV superbowl presentation carried lots of interest. It is jointly sponsored by Pepsi, Intel and Dreamworks for a commercial, a trailer and cartoon episode.

Although I risk pre-empting some discovery on Wednesday, I can’t help but notice that today’s NYT is almost a reader for the class:
Lecture
Social Networks, Social Media and Internet Video
We introduced the rise of social networks and the most recent ascent of Facebook. We began the comparison between Facebook and MySpace to find the reasons for its success. I introduced the Social Media trend exemplified by Imeem, Ilike and Playlist.com with latters spectacular hockey stick ascent to the 20 plus million user level over a year. People like sharing their tastes, collections, and playlists as a form of self-expression and communication. Embedding into social networks or using open standards such as Open Social and Facebook Markup Language and Facebooks API enable “plug-in” Apps like Imeem to succeed. Imeem succeeded in making the uber deal with the majors so that users have access to the full pop song library.

Ben Mendelson
Our guest speaker Ben Mendelson, CEO of the Ineractive Television Alliance (http://www.itvalliance.org/ ) presented a succinct history of the Interactive TV including some of the seminal companies like Open TV, Microsoft TV, TiVo, NDS and many others. Ben talked about the sea change in TV advertising including the changes in the “Upfonts” and how targeted advertising is on the rise while advertisers feel a decreasing need to commit to expensive network spots (The increase in informercials on prime time TV is evidence of the increase in avails). Ben described the ITA’s activities and 4 annual events: Queen Mary Conference, Tech Walk, Ad Lab, Content Lab/Incubator at NAB. To Ben and the ITA we extend out thanks!




Commentary
Co-Opetition? Search for SNL on Youtube and watch a Saturday Night Live video clip. First see the HULU front billboard, then as the video plays, in the lower third appears the copy: “Hulu offers full episodes of current hit shows … 30 Rock, House, Family Guy, The Office, ….to classic shows like Buffy the Vampire and hundreds more TV episodes, movies and clips.” The end HULU billboard boasts: “Watch your favorites. Anytime. For Free. This is weird for several reasons. First Hulu was put into business to compete with Youtube. NBC and Newscorp wanted their vids off Youtube and on to their own Internet Real Estate. Why should Google benefit from NBC Uni/Fox content? Second, is Google/YouTube sowing the seeds of its own downfall by directing traffic to Hulu, which is a much better viewing experience? Third, Hulu is not using the Google/Youtube pop-up / overlay ad methods. Rather, the ad is embeded into the video. Maybe Hulu and Youtube need each other? Maybe they will each find long term niche. As mentioned in todays NYT Article, $200 Laptops Break a Business Model,
“Mr. Title, a 35-year-old new-media manager at a film production company in New York, has dropped his cable subscription and moved to watching most of his television online — free.” Indeed, so have I.
Form more reading on Internet TV/Video, read my article: YouTube and The Revolution in Internet Video Sphere: Related Content

Tuesday, January 20, 2009

UCLA Media Tech Class Winter Quarter 09 Class #2

Sorry for the delayed post.

I watched the inauguration this morning at a the Church in Ocean Park with a couple hundred cheering people. Of note is that it was on CNN projected on to a large wall out of a laptop connected via WiFi to the Internet. A complete end run around CATV and DBS and there were very few hitches.

Also notable was the parnership between CNN and Facebook whereby about a million folks could "share" on screen concurrent with CNN's coverage. CNN cut to Facebook's offices periodically to get the "Facebook" report. Another shift in media tech and an attempt at synergy.

Class #2 was mostly devoted to my brief on CES which I posted last week.
Thanks for your participation and the news contributions:
Tiffany discussed www.youtube.com/senatehub and www.youtube.com/househub .
This is amazing. A mashup map UI allows you to visually drill down to your state and find your Senator or Congressman and then you get a lineup of videos on them. So simple yet so profound. A direct line to these politicos on-demand. Of course they only post what they want, and you could probably watch Cspan all day, but this is still a major end run around traditional TV and a yet another part of the social media wave.

Stephen discussed AOLs reorganization into a variety of verticals with its formation of MEDIAGLO (http://news.cnet.com/8301-13577_3-10141044-36.html) . We can debate how well their strategy will work. Are these verticals synergistic? The Time Warner, AOL Merger was obviously one of the great failures of M & A history. Maybe AOL will yet find a way to thrive. Its still mystifies many, as well as me, why they paid $850 million for Bebo! As an aside, be sure to listen to an excellent interview with Stephen about the THRs 100 most powerful women list on KCRW’s THE BUSINESS podcast (http://feeds.kcrw.com/~r/kcrw/tb/~3/510272329/tb_2009-01-12-182216.mp3 ).

Tracy brought up a story on Google’s CEO Eric Schmidt attempting to aid the print media business! It was commented that Google needs print because it is a driver for online searching. Even though Google has sapped the guts our of print advertising, they still need print and they need competition. They don’t want antitrust. Interestingly, Google just announced that it is shuttering its 2 year old Print Ad division (
http://www.nytimes.com/2009/01/21/technology/internet/21google.html?emc=eta1 ) due to poor revenue!

Reed pointed out the imminent arrival of 2TB SD cards within 5 years. Indeed I saw this as well at CES. Look for 100GB sizes this year. All this to say that there is a quiet revolution in personal cheap storage that will no doubt elicit new applications.

To follow-up on the question about the palm sized D.J. rig it was the Pacemaker from Tonium:
http://www.tonium.com/ out of Stockholm Sweden. Sphere: Related Content

Tuesday, January 13, 2009

CES 2009 Briefing


A few thoughts on CES 2009

My Photo Gallery form CES

Storage
A shift happens when something becomes so plentiful it is almost free. New applications and economies erupt. So it goes with digital storage. Thanks to MP3 compression, cheap micro hard drives and plentiful flash ram, iPods, and even a few other digital music players proliferated. Movies and TV, especially HD needs an order of magnitude more space than music. NAS or Networked attached storage was something known only to Network engineers a few short years ago. They have been part of the storage solution for professionals for nearly over decade, offering a simple way to add mass storage, without new servers and even more expensive arrays. Over the last couple of years these devices have migrated to the consumer level and this year they are poised to become an essential appliance for millions of homes swimming in digital media. Offerings from HP, LinkSys, LG, Samsung, Sony and others, provide consumers plug-n-play mass storage for all media types on their home networks. Many feature removable drive bays so that you can reload anytime with better, bigger and cheaper devices.

Most impressive is the progress in flash memory in the form of memory sticks and SD cards. There is a shift going from gigabytes to terabytes that makes it viable for the consumer as well as the professional to record, shoot, transfer and go mobile with an almost unlimited canvas.


Connected Consumers
FCC Chairman Kevin Martin was quoted in USA Today (August 8th 2008) in an article entitled Martin wants broadband across USA quotes Martin: "There's a social obligation in making sure everybody can participate in the next generation of broadband services because, increasingly, that's what people want." Of course one persons broadband is another persons super-slow. Ask your average Internet user in Seoul about the “broadband” speed in the US and they will wonder why our Internet is broken.

However it happens, I am betting that the US is well on its way to nearly ubiquitous Internet access at relatively high speeds wired or wireless. WiMax is being rolled out via Sprint and Clearwire under the Xohm brand (www.xohm.com). It will be a less expensive ($35/month for home service, $30/month for mobile) alternative to DSL or Cable ISPs and will be able to provide access in areas not yet reached by DSL or digital CATV. Cheap wireless broadband fuels the need for cheap mobile internet devices beyond the current gen of smartphones and laptops. The iPod Touch is an example, which is found a bevy of bedfellows although iPhone-like smartphones will continue to enjoy double-digit growth. The LG DARE, Vu and VOYAGER hold up well to any iPhone with additional tactical feedback and mobile TV capabilities. That last point is not to be overlooked. Mobile TV can use a separate radio band and deliver 20 some channels of crisp TV to a handheld device. They are common in South Korea, which uses the DMB (Digital Multimedia Broadcasting) standard. In the US Qualcomm’s Media Flo has gripped some traction. I will bet that Mobile TV will catch on to sustainable degree. Other companies such as MobiTV (www.mobitv.com) are delivering TV content re-formatted for mobile IP delivery. This will be slow to catch-on in the US because we are already immersed in TV. But inevitably I believe it will find a critical mass following via mobile Internet devices or very cheap dedicated receivers.

Of greater significance to me this year is the connected home, moving beyond simple WiFi to seamless interoperation between a wide varieties of devices. DLNA (Digital Living Network Alliance, www.dlna.org ) has caught on as an industry standard. According to their representative, about 4,000 devices have been certified. Once one of these devices is on, it automatically senses the network and can share functions and files with other devices. Music players, phones, storage devices and yes, HD TVs become connected with now set-up beyond a password. Watch your phone on your flat screen and play your music collection from your laptop to your WiFi music player. Add this to the mix with broadband and the promise of convergence is substantially fulfilled.

Convergence Delivered
Nothing is one-thing, everything is many things. Phones are full blown 8 megapixel, GPS aware cameras (LG Renoir) and, music players are mobile TVs, TVs are Internet Appliances. Witness the offerings of connected Blu-Ray Players with IP onboard. They Stream YouTube, Netflix, Pandora and other content services via wired and wireless Ethernet. The Samsung HT-BD8200 Home Theater in a Box includes a sound system and optional WiFi. Panasonic’s Viera Cast lineup has a connected BD Player as well as LG BD300 Network Blu-Ray Disc Player. Samsung has partnered with Yahoo to add “Widgets” to its TVs for accessing Internet content without leaving your couch. Sony has a full lineup of new, connected “Bravia” HDTV’s with both built, and outboard optional IP.

HD TV
Brighter, bigger, clearer, sharper, better contrast, more vibrant colors, endless options price points, HD TV is still being touted as the centerpiece for convergence in every home and almost any budget. Panasonic, LG, Samsung, Toshiba and Sony all have a mind numbing selection of sets at nearly every size, and price. New brands have come on the scene such as China’s Haier, which made the leap from white goods and digital music players. At a nominal $1,355 for its 47 inch HL47K, you will be likely to find this alongside the Vizio 47’ SV470XVT at $1,399 at Wall Mart, where you won’t find Sony’s top of the line Bravia KDL-46XBR8 46 inch. For comparison, and to illustrate the range, the latter model’s MSRP is $4,699. It will take an entire class session to analyze the specs on HDTV’s. In summary, they will continue to offer better value, better imagery, leaner profiles and more connectivity via direct Internet access and home networks.

3D TVs were also gaining momentum and are clearly headed towards some degree of commercial viability. The 2009 Super Bowl on Feb 1st will feature the first 3D Superbowl spot form Pepsi (The SoBe Lifewater Lizard), Intel and NBC. There will also be a 3D trailer for the Dreamworks Monster Vs Aliens movie. 125 million 3D promotional glasses will have been distributed, possibly giving some folks a taste for more 3D TV.

Philanthropy
www.smallthingschallenge.com
“At least 80% of humanity lives on less than $1/day and 75 million children worldwide are not in school.” So says the promo for the Intel sponsored Small Things Challenge. The Chairman of Intel, Craig Barrett, and Chairman and CEO of Cisco, John Chambers, presented their views of the world and how appropriate application of technology can help developing countries. Both agree that the highest priorities should be education and health care. Without those societies are not sustainable. Barrett showed off the durable cheap classroom PC (Save the Children Foundation) and how Intel has funded mobile bus computer classrooms in India. Both Chambers and Barrett demonstrated cost effective telemedicine health care solutions. Mr. Barrett using a live video conference to a remote clinic in India, and Mr. Chambers showing off the Cisco telemedicine “Booth” complete with consulting physician in Africa.\

Misc. Random Standouts
  • LG 3G Watch Phone
    (http://www.lge.com/about/press_release/detail/21062.jhtml )
    LG hits it out of the park with one designed by PRADA. This thing is sleek with a touch screen and a Global dual mode (GSM and UMTS) transceiver along with 7.2 Mbps HSDPA. If you don’t know about those acronyms, take my class. Who cares, its still amazingly cool to have a real Dick Tracy / Star Trek watch. Of course it has a built-in still / video camera for making video calls to the mother ship.
  • Rhapsody Ibiza personal multimedia player (http://www.haieramerica.com/en/ibiza )In the challengers to the iPod / iTouch category The Ibiza. Made by Chinese digital media upstart Haier, this has WiFi, FM Radio, touch pad, bright clear screen, 30GB HDD and 4/8 GB Flash RAM. Coupled with Rhapody, you have almost any song anytime anywhere.
  • The Tonium Pacemaker
    An all-in-one palm sized portable music player and D.J. Mixer! Complete with a community to share you mixes at www.pacemaker.net . Its like holding two turntables and a mixing console in one hand.

I always balance out CES with a day on the rocks...

Sphere: Related Content

Monday, December 8, 2008

Adapting to Massive Media Change Seminar UCLA Extension: Summary

An excellent cross section of industry professionals attended the annual one day Seminar on Adapting to Massive Media Change held at UCLA on 5 December 2008.

Keynotes, and other related materials, are available from my Executive Briefing Web Page.

Special thanks to our three outstanding guest speakers:
  • A Producer with MTV Networks, and an experienced film and video maker." (name withheld )
  • Hannah Bubis, Director of Business Development, The Search Agency. The Search Agency was recently named as one of the ten “Rising Stars” on Deloitte's 2008 Technology Fast 500.
  • Dominique Shelton, Partner, Wildman, Harrold, Allen & Dixon LLP
The class began with my view of the 10 major global trends in the media and entertainment sector:


  1. The Internet is becoming the dominant platform for media, entertainment, and communications worldwide.
  2. Wireless broadband is becoming a dominant distribution platform for the Internet, especially in the developing world.
  3. Convergence of industries and devices continues and consumption habits are changing. Gaming is a large factor. Blu-Ray will hang on as the last physical format.
  4. Everything is becoming available on-demand.
  5. YouTube, Internet video, social media and social networks are becoming important platforms for distribution, promotion and communication and are competing with search as ad platforms.
  6. Digital production, and digital distribution are increasingly important economic and business factors in the TV and movie industry.
  7. Advertising and branding are being transformed as budgets shift to contextual, hyper-targeted internet platforms and brand integration.
  8. The Music business has been transformed.
  9. Hollywood / Media Power is shifting and consolidating as the audience fragments and conglomerates grow.
  10. Digital Piracy, Cybercrime, organized crime, and the “Darknet” remain ominous clouds over the new media horizon.

    A recent case in point:
August 2008, Internet Business Law Services (www.ibls.com) : The U.S. Department of Justice filed charges against 11 individuals who allegedly obtained identity information over wireless networks from nine major U.S. retailers, resulting in the theft and sale of more than 40 million credit and debit card numbers. The hackers apparently garnered tens of millions of dollars from a broad-based scheme that involved citizens of the United States, Estonia, Ukraine, China and Belarus. Attorney General Michael Mukasey said, "so far as we know, this is the single largest and most complex identity theft case ever charged in this country, which they then allegedly sold to others or used themselves. And in total, they caused widespread losses by banks, retailers, and consumers."

I delivered a lecture on the music business presenting a Cartesian grid model of digital music services with on a continuum on the x-axis from user in complete control as in an audio CD, to the programmer in control as in terrestrial radio, and a continuum on the Y-axis from Paid to free. Along the continuum have bloomed a variety of “interactive” music services including the likes of Pandora, Last.fm, Ruckus, Slacker, playlist.com and iMeem. These personalizable, interactive services confound the traditional boundaries between performance royalties paid by traditional radio and mechanical royalties paid for downloads and physical media. The Copyright Royalty Board sets the statutory rates for Internet Radio.

MTV’s digital evolution was discussed and how it evolved into one of the coolest brands in the world, became tired and less relevant and has reinvented itself through aggressive youth market research and by diversifying away from music videos.

Launched in 1981 as a VJ guided music video channel, it has grown into a global media empire and the crown jewel of Viacom’s media properties (NYSE:VIA). According to Viacom’s website, MTV Networks includes over 342 million households viewing 150 channels in 17 languages around the world and 300 interactive properties. Sometime in the late 90s and early 2000s MTV began to break its own first principle; “don’t let your marketing show”. The antithesis of cool is commercial and corporate.

We talked about the youth culture research MTV does and how the network evolved away from Music videos into original programming and sponsored, brand integration. From programmed for the audience to being more controlled by the audience as in the late great TOTAL REQUEST LIVE. We then discussed the evolution of MTV online including the ill-fated milestone 2004 re-design, and the launch of the “Overdrive” site, which worked well with the equally ill-fated Windows Media Center Edition. MTVs partnership with Microsoft and its Zune digital audio player has also met with demise in the face of the iPod/iTunes juggernaut. Despite MTVs best efforts, those initial “portal” sites fell flat. MTV’s online strategy has rapidly evolved into a plethora of blogs, podcasts and videocentric websites. Of particular note is the “Twilight Effect”. MTV deftly capitalized on access to the set of Summit Entertainment’s TWILIGHT and created an online sensation as well as a new line of business for MTV in movie blogs. MTV Networks is an example of media adaptation at its best.

Hannah Bubis dove right into the nitty gritty of Search Marketing, first making the important distinction between organic search and paid search. The former is driven by search engine optimization or SEO and determines what comes up, in what order on the search engine results page. The latter is where budgets are rising almost as fast as complexity. Otherwise known as “pay-per-click”, this form of advertising circumvents traditional media buying by creating algorithmically run hybrid auctions whereby advertisers bid on prime placement. Yet no matter what the high bid, relevancy as measured by click-through rates, comprises a significant factor in determining placement. Hannah described how The Search Agency works with clients on there online strategy and to navigate the complexities of this new world. She emphasized that the greatest benefits of pay-per-click are measurability and that the advertiser only pays for actual clicks and not impressions. Hannah touched on the advanced methods of contextual, hyper-targeted advertising whereby click-streams are captured and analyzed in order to put the right message in the right place at the right time. Some of the class noted that there is a backlash to hyper-targeting when consumers get the creepy feeling that they are being cyberstalked!

I contend that inevitably more overall dollars from the finite ad budget pie will find their way into Hannah’s domain. Many questions remain, especially how pay-per-click combines best with video / IPTV viewing.

Dominique Shelton provided an expert briefing on some key aspects of the Digital Millennium Copyright Act (DMCA) focusing on the four safe harbors. This corpus of law is what keeps many Internet companies in business by indemnifying them from a wide variety of Copyright in infringement and other crimes.
  1. Transitory communications
    ISPs are carriers and can’t be liable for the unexamined bits traversing their pipes.
  2. Caching
    At some point almost everything you have access to online must be stored or at least temporarily “downloaded”.
  3. Storing information at the request of users
    This covers UGC sites like Youtube. The users put the infringing content up not deep-pocketed Google.
  4. Information Location Tools (aka Search)
    Without this one Google could not make its billions by pointing users to copyrighted content.
Safe Harbor comes with caveats pointed out by Ms. Shelton. First, you have to respond quickly to takedown notices via a registered agent, and second, you are still responsible to the Communications Decency Act.

Dominique regaled us with some case law including the “Perfect Ten Trilogy” that has tested various aspects of Safe Harbor including:
  • If you show copyrighted images in a search is that infringement? No.
  • If you are Visa and enable billing for the purchase of unauthorized copyrighted material are you guilty? No.

We were also lucky to get one of the best explanations Fair Use I have ever heard.

Many questions will remain unanswered for years to come regarding grey areas such as interactive music services and the extent of UGC liability, such as in the cases of Warner Music Group Vs. Seeqpod, and Viacom Vs. Youtube. Many of these situations may be better left to creative business agreements than to the courts. Sphere: Related Content