Generator of Business

By: Institute for Media and Entertainment in Uncategorized

Is online TV streaming about to displace traditional TV viewing? If yes, what consequences could we expect?

Recent data from media and communications analytical firm SNL Kagan shows Pay TV is losing customers for the first time ever, with subscribers dropping down from 100.4 million in Q1 2010, to 100.1 million in Q2. While it’s still too early to pinpoint the real reason for this decline, the growing ease with which viewers can access traditional cable and satellite content on their computers is raising two key issues that the TV industry needs to resolve, says IESE Business School Professor of Information Systems Josep Valor, who also teaches the Advanced Digital Media Strategies program at IESE's Institute for Media and Entertainment.

One of these issues is emission rights. Restricting access to content by blocking IP addresses as a way to protect and manage broadcasting rights worldwide (wherever those rights are sold) is fast-becoming inefficient.  This is because more and more services, such as “TV to PC” or Internet “proxy” services, allow users to mask their IP addresses and access cable and satellite content online, no matter where they’re located. This means content owners would likely need to forgo “territorial exclusivity” in their contracts and start negotiating some sort of revenue-sharing agreement with these new “channels” as a way to cope, says Prof. Valor.

Another potential issue is the challenge to net neutrality. Prof. Valor believes that the enormous growth in Web traffic could lead to a battle for bandwidth, especially in countries where bandwidth is limited and many networks still rely on copper infrastructure to transmit data. If this scenario makes customers and companies willing to pay more just to ensure smoother and faster access to their chosen content — e.g., the streaming of live events — it could open the door for telecom companies to demand more “control” and to “discriminate” over which and what type of content they prioritize on their pipelines.  This would especially allow them to set more profitable bandwidth-pricing schemes.

Read more about Prof. Valor’s analysis here.

 delicious  

Top-ranked IESE Business School's Institute for Media and Entertainment (IME) is the leader in media and entertainment executive education. Our intensive programs for executives and thought leaders include Advanced Digital Media Strategies, and the world's first global Advanced Management Program in Media and Entertainment (Media AMP). These programs attract executives from top media companies around the world, including Time Warner, Google, Disney, Fox Entertainment Group, NBC Universal, MTV Networks, and many others. IESE-IME helps media professionals gain industry-specific business knowledge and real-world insight to help them think like CEOs and advance their media and entertainment careers. For more information, visit www.ime.edu

By: Institute for Media and Entertainment in Uncategorized

This July, Facebook began beta-testing its new Q&A feature, joining the likes of Yahoo!, Answers, Ask.com, Quora and Aardvark (recently acquired by Google) allowing users to seek answers to their questions from their social network or the online community at large. Indeed, as more and more Q&A services enter the market, businesses should pay attention and get into the conversation.

Here’s why:

For one, online search is evolving. To optimize their rankings in search results, businesses must keep up with the latest keywords to use, as well as where to use them. Search engines like Google and Bing now include “social search” – a type of Web search that aims to deliver more relevant results by drawing content from a user’s social network – including Q&A forums, blogs, subscribed RSS feeds, status updates, tweets, etc. This gives businesses plenty of opportunity to build and manage their brand presence online, especially considering the huge amount of data shared on social networking sites (Note that as of June 2010, Americans now spend most of their online time on social networks compared to other online activities like gaming, e-mailing and watching videos, according to research firm The Nielsen Company).

Secondly, while users are indeed amping up social networking activity, they are also searching for advice from credentialed sources, not just their peers. According to The 2010 Edelman Trust Barometer (a trust and credibility survey by public relations firm Edelman), when it comes to getting information about a company, trust in “conversations with friends and peers,” along with trust in traditional media, declined over the past year in the U.S., U.K., France, Germany and the BRIC countries (Brazil, Russia, India and China). On the other hand, trust in a CEO as company spokesperson is recovering, while academics, industry experts and financial analysts continue to be seen as the most credible sources of company news.

This means that so long as companies don’t appear self-serving and don’t resort to market-speak, they might earn “brownie points” by offering their knowledge and expertise in Q&A forums and by cultivating a wide network of expert spokespeople who can address consumer questions regarding topics that relate to the company, its products and the broader industry in general.

Third, Q&A discussions can reveal consumer preferences and other valuable data that companies can use to generate leads and provide targeted advertising. Facebook’s “self-service ad system,” for example, already allows companies to deliver ads to a targeted group of users, based on their profiles and the stuff that they “like.” Facebook’s new Q&A feature, which will allow users to add polls – e.g., Which is better for your 8-year old cousin: Nintendo Wii or Xbox? – can only enhance the site’s algorithm and improve product recommendations, benefiting advertisers and consumers alike.

Of course, as in any good conversation, listening is key. Businesses that want to make the most of social search and Q&A sites should take the time to understand not just what’s being asked, but also why, so as to provide the best service to consumers, and to make the most sense when they do speak up.

 delicious  

Top-ranked IESE Business School's Institute for Media and Entertainment (IME) is the leader in media and entertainment executive education. Our intensive programs for executives and thought leaders include Advanced Digital Media Strategies, and the world's first global Advanced Management Program in Media and Entertainment (Media AMP). These programs attract executives from top media companies around the world, including Time Warner, Google, Disney, Fox Entertainment Group, NBC Universal, MTV Networks, and many others. IESE-IME helps media professionals gain industry-specific business knowledge and real-world insight to help them think like CEOs and advance their media and entertainment careers. For more information, visit www.ime.edu

By: Institute for Media and Entertainment in Uncategorized

Planning a trip or raring for a night out in town? Wherever you go and whatever you do once you get there, you’ll probably find a location-based mobile application to make the experience more rewarding and personal. By 2014, location-based apps are expected to reach more than $12.7 billion in revenues, according to a recent report by technology analyst firm Juniper Research. Location-based apps pinpoint your and/or your friends’ geographical position and then use the data to provide all sorts of services. Sounds promising, but what exactly does this mean for the travel industry?

One: Improved ease and efficiency for users

Using apps downloaded on their smartphones, travelers can now book reservations and automatically check into airports and hotels, get online maps and driving instructions, organize their travel itineraries, keep track of expenses, network and locate nearby friends and businesses, get up-to-date travel alerts, check the weather forecast and currency exchange rates, take advantage of personalized concierge services, and more. Indeed, a report released in 2009 by travel industry research firm PhoCusWright found that 67 percent of travelers and 77 percent of frequent business travelers with Web-enabled phones have used the mobile Web to find local services and attractions. The report also predicted mobile travel bookings to reach $160 million by the end of 2010. Examples of travel companies capitalizing in on this trend include Southwest Airlines, Hilton Hotels, and Kayak.com.

Two: The rise of “layered” information

Forget traditional guide books: There are now location-based apps that provide travelers with “audio walking tours” and even immerse them in “augmented reality,” wherein they get additional information about whatever sight or place they’re visiting by simply pointing their smartphone cameras to whatever they’re looking at. The phone’s camera basically “recognizes” the object or place and proceeds to “overlay” data (for instance, historical backgrounds and images, Wikipedia descriptions, travel reviews from other users, a list of nearby attractions and their distances, deals and promotions, etc.) onto the phone’s screen. Examples of travel companies capitalizing on this trend include travel publishers like Conde Nast and Lonely Planet, and Malaysia Airlines.

Three: Increased opportunity for targeted, “real time” ads

Users of location-based apps are likely more receptive to receiving targeted ads relevant to their current location and activity. A May 2010 survey by mobile audience media company JiWire found that 76 percent of mobile app users prefer free apps that have advertising over paying a fee for the same apps. Additionally, 84 percent would be just as likely or more likely to engage with an ad relevant to their current location; 53 percent are willing to share their current location to receive more relevant ads; 52 percent acted on an ad in an app in the last 30 days, while 18 percent made a purchase because of it. Examples of travel companies capitalizing on this trend are InterContinental Hotels Group, and JetBlue Airlines (in partnership with GateGuru).

The challenge?

While location-based apps are indeed getting lots of attention lately, they still lack mainstream appeal — at least for now. A 2010 report by technology and market research firm Forrester Research notes that less than 5 percent of U.S. online users have ever used a location-based mobile app, and almost 85 percent said they were not familiar with location-based apps at all. So while location-based apps can and will likely transform travel as we know it, we still have quite a way to go before we “get there.”

 delicious  

Top-ranked IESE Business School's Institute for Media and Entertainment (IME) is the leader in media and entertainment executive education. Our intensive programs for executives and thought leaders include Advanced Digital Media Strategies, and the world's first global Advanced Management Program in Media and Entertainment (Media AMP). These programs attract executives from top media companies around the world, including Time Warner, Google, Disney, Fox Entertainment Group, NBC Universal, MTV Networks, and many others. IESE-IME helps media professionals gain industry-specific business knowledge and real-world insight to help them think like CEOs and advance their media and entertainment careers. For more information, visit www.ime.edu