The WWW and the Holy Grail

Adolph Ochs in 1896 put his slogan on a newspaper, “All the News That’s Fit to Print”. It still survives. Only just barely.

Sound arrived to movies in the late twenties, the silent-film industry and the Broadway theater industry were both broadsided. They never saw it coming. It was a running joke to them.

Radio was king for years. No one thought it would be overcome – there was a radio in every home throughout America.

radio

Then television started to gain traction in the late forties. Radio scrambled to adjust to the newer media – TV. Then, TV began to replace the radio in homes. Orders for TV sets were up 400 percent in 1949, many of them sold by the most popular shows of their time, (i.e. Milton Berle). Supply could not keep up with demand. Free television was for decades considered an American right, rabbit ears, ghosts and all.

images-5

Then broadcast TV scrambled to adjust to newer media – cable TV. For a while during the reign of ‘Free TV’, “Pay TV” was a joke.   Americans now pay for 24/7 foreign news networks in their cable and satellite packages, news, weather, sports, movies, etc. That which used to be free on broadcast TV was no longer free.

images-6

Then the hammer dropped for everyone. The Internet dawned, the digital revolution.  The Holy Grail of media. This was a change as great as the invention of electricity and the construction of transcontinental railroad. It was large, transformative and caused massively sweeping changes. No one was prescient enough to gauge even remotely how big this change was upon the whole planet.

images-7

The recording industry became the first to fall in the digital pipeline. They thought by suing Napster in court they could stop their declining bottom line.  Movies and DVD’s became next to fall in.

images-2

And then 2 large social media behemoths came along; Facebook (2004) the more social of the two and Twitter (2006) the most current up-to-the-minute form of news delivered to us not by a news anchor but by a neighbor.  Twitter made CNN, NBC, CBS, ABC, FOX ancient delivery mechanisms of news overnight.  We don’t select publications anymore, we select links.

images-8

An ecosystem of “group journalism” in which consumers with a cell phone eyewitness reporting of the news submitted by ‘US’ rather than actual reporters in the field, changed everything. Witness Captain Sully on the Hudson river. The proliferation of the Internet made every publicly available source of information in the world openly available to everyone. This change in and of itself has altered the landscape for everyone forever. The NYT’s and CNN no longer have a lock on exclusive. Exclusive is old news – we are now the prevailing ‘exclusive’.

images-1            images-3        images-4

Within all of this history of media, the largest companies, the ones we can name by brand have been caught sleeping by transformative change. From newspapers and magazines to Hollywood, aging media executives resistant to technology became overnight ostriches.  It was easier to take a paycheck, stick their heads in the sand then risk being ‘wrong’ about how future technology could transform their own business. Status quo was ‘safe’ harbor.  A herd of dinosaurs.

The decline and the fall of old media. It was inevitable and unavoidable. Casualties were and are in print, TV and soon cable channels. Yes, even cable TV will be falling (cord cutting: Aereo TV and Otoy). Old media will scramble to adjust just as before, but it will not be enough. The fall of old media is unavoidable.

And for us the consumer, the ‘hippie’ stage (freemium) of the Internet is over.  We will pay for more for media then ever before – not in print but whatever form it comes in. The trees will love us once again. However, the cost for this will be higher than it once was.  What is less talked about are the adjustments that consumers have to make. Paying for media that was free or easy to access is now the norm.

images-9

And still only 65% of the country has broadband Internet access. What Google fiber offers is just a beginning and will become the norm. Google fiber speeds will knock cable TV off its legs.  We wont need coaxial cable – just access to the Internet.  And it won’t have to be coming from the white coaxial cable coming into your home – it will be wireless.   TV channels will be become specific apps downloaded on a phone or tablet.  Bundles will be forgotten. The ‘triple play’ of a phone, cable and the internet that we all familiar with for $ 150.-200 a month will soon be broken down.

Perhaps even the app store will disappear too. The potential disruptiveness of Otoy (http://goo.gl/aQZSl ), as a breakthrough streaming service could, in the near future, could end the need for app stores and computer upgrades.

Advertising will never ever again subsidize any old-media news organizations in the style to which they (and their audiences) have been accustomed.

News organizations used to be able to overcharge and under-deliver in their deals with advertisers; the pizza place and the car dealership had nowhere else to go, and no one knew how many people saw, or acted on, a given ad anyway.  Not anymore. Nielsen, one of the old guards struggles to stay relevant – even if they purport to have new measuring technology. There are at least the 10 other companies who are in the process of eating their lunch.

We are in for years of re-adjustment. Transformation from print and paper to digital – cable TV to Internet TV, YouTube, social apps and the like. Consumer adjustment will take time. But less than you think. Our kids are growing up ignoring cable and television, without radio and traditional print media. The norm:  downloading of apps, mobile phones, tablets and no desktop computers. It’s different and disconcerting for the parents. It’s happened before – it just happened without the Internet. How we used to do things in the seventies, eighties, and nineties is no more – change is good.  Breath in – breath out.

Advertisements

The year the CD died, RIP 2008 (and the DVD is not far behind).

The reason? Many. But the trend seems to be a little like the advent of FM radio back when all there was to listen to was AM. The migration was almost immediate. And like FM radio, streaming is free to listen to for the most part.

“Nearly half of U.S. teens say they listen to music on social nets, which is an increase from 37 percent a year ago; among college-age web users, the percentage rose from 30 percent in ’07 to 41 percent last year.”

ohyesitsfree

Read on:

As Virgin Megastores get their “going out of business signs” pinned up, the loss of a major brick and mortar music retailer will certainly hasten the demise of the CD and the continued rise of online downloading. The latest research from market analyst NPD group is hardly a surprise: there were 17 million fewer CD buyers in 2008 compared to the year before.

—More paid downloads, less total buying: And while the number of internet users who paid for music increased by 8 million to around 36 million last year—purchased music downloads grew by 29 percent since last year, accounting for 33 percent of all music tracks bought in the U.S.—NPD’s report could not mask the dire circumstances the music industry finds itself in. Without CDs, it seems that many people are giving up on buying music entirely. In ’08, the number of total music buyers fell by 13 million in the U.S. The decline in music buyers was led by a 19 percent drop in CD sales. Only 58 percent of web users said they bought CDs or digital music downloads last year, versus 65 percent in 2007.

—Less buying, more listening: Asked why they hadn’t been buying music, the 4,000 respondents to NPD’s online survey said they were spending less on entertainment in general due to the recession. Meanwhile, web users are becoming more aware of free streaming services. In the case of online radio company Pandora saw its recognition double, NPD says, as 18 percent of web users were able to identify it. The introduction of MySpace Music is also appears to be having an affect on listening habits, the study said. Social net usage climbed from 15 percent in Q407 to 19 percent in Q408. Nearly half of U.S. teens say they listen to music on social nets, which is an increase from 37 percent a year ago; among college-age web users, the percentage rose from 30 percent in ’07 to 41 percent last year.

Thanks to PaidContent.org for this article and info.