Bradley Howard's Blog

Views of digital media, innovation, loyalty and business in the real world

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I had a new hard drive installed in my laptop this week and when I re-synced my iPhone I lost all my MP3s.

I don't understand how Apple can produce such a great phone, with great synchronisation with a number of computers, but be so damn awful with keeping my music catalogue together. That's my frustration over and done with.

I decided once and for all to upgrade/buy Spotify so that I can use it on my phone. I've used Spotify regularly on my laptop and home PC (I should enter an award for the most varied music styles in a single playlist) for ages and even before wiping my iPhone, it was frustrating only have a couple of dozen, old MP3s available on the phone.

In fact Spotify is so good that I'm considering changing our in car stereo to one that accepts a line-in (i.e. from the headphone socket in the iPhone) rather than an iPhone specific connection - to make it futureproof.

A major advantage of the iPhone app is that it downloads the music to your phone rather than streaming it - which means you can carry on listening without an Internet connection.

The one remaining issue in the house is that with the kids starting to get MP3 players of all shapes and sizes (and budgets), Spotify is only useful to my wife and I. The kids still require me to buy MP3s for their devices.

We think of music as ultra portable nowadays, but in reality, compared to records, tapes and CDs from the past, you can't swap music as easily as you used to, when music really was social!


 

Hoping bad luck only come in 3s

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They say bad luck comes in threes - well the three came thick and fast this week in the Howard household.

We bought a dog from the RSPCA rescue centre in Peterborough 5 weeks ago and on Friday it developed a rare form of pneumonia and spent three nights in hospital at the Queen Mother Hospital for Animals in South Mimms. Lexi (that's the dog) is on the mend at the moment, however we suspect it will take a few more weeks before she's back to her normal self. The reason I started off with Lexi's background is because she's still within the first 'no claim' fortnight of pet insurance...

The next thing that went wrong is the family computer. We all share a single computer and use different accounts to log in.  Frustratingly I (promise) was planning to do a full backup over the Christmas break, however we had a physical hard drive error on Wednesday, and everything on the hard drive has gone. I bought a licence of the SysTweaks Advanced Disk Recovery to run on my work laptop over the holidays. ADR took 2 days to do a 'Deep Scan', then a few hours to restore the files I selected. All (100%) of those files are corrupted and can't be opened. It's been a very frustrating experience. And now, the hard drive won't even be recognised by my work laptop.

What has been interesting out of this experience is that the kids are totally unaffected - all of their work is stored on a variety of websites (aka 'the cloud'). A lot of my wife and I's 'stuff' like photos are also in the cloud at various places (at least, the good photos). It's some of the smaller stuff like wedding speeches that are permanently gone. I think I will take out a Spotify subscription in the new year (after paying off the vet bills and a replacement PC) because whilst we ripped all of our CDs last year on to the computer, when the hard drive went, I just thought it wasn't a problem because they'll all be on Spotify anyway.

The third piece of bad luck happened when playing my son on the (3 year old) XBox 360 yesterday and the game paused. No response. Switched the console off and on - and a three quarter red ring came on the power button. I've heard about 'the red ring of death', and we have now succumb to it. We need a new XBox.

Needless to say (but I'm quite depressed so I'll say it), it's been quite an expensive week. The vet bills alone could buy a family car, the new family PC will be my wife's opportunity to finally get rid of our old CRT monitor, and the XBox may be an opportunity to get Kinect...

Photo courtesy of tomasland.


 

Spotify Freemium rebalance

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I see that Spotify is trying harder and harder to convince more subscribers to pay for the service, rather than rely on advertising income.

Tonight the new Brandon Flowers album is only available to Premium users. Spotify are [perhaps rightly so] preserving many of the advanced features and new content solely for their tenner a month subscribers.

If I worked at Spotify, I would try and poach experienced ad sales people from traditional radio stations such as Absolute or Global Radio (owners of Capital FM, Classic, XFM and others).

Clearly those stations have a ad sales business model which keeps them afloat. Those radio stations would love to have the CRM information that Spotify has at their disposal, which would further help traditional sales people.

As many people in media have been suggesting for a while, New Media companies have a lot to learn from traditional media companies - many of the business models are the same.


 

Micro micro payments - the future of content

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Image courtesy of Joe Shlabotnik

Last September I gave an opening speech to the English Premiership clubs discussing loyalty and the future economy of content.

On the latter subject, my personal view is that content cannot stay free for the long term. Our children will look back on the web and ask us what is was like living in a bubble of free video (iPlayer), free radio (any radio station's website/ iPhone app), free high quality music (Spotify), free text content (over 99% of websites), free storage (YouTube, Flickr, etc.), free search (Google, etc.) - it's all free free free. I think we will answer our children by saying "Yes, it was a pretty cheap time - companies advertised on these sites, and we thought that covered the costs" - at least, this is the public's perception.

So what will replace this massive amount of free content and free applications?

At the Premiership event I said that in the future we will have some sort of e-wallet, and each web page that you navigate to, and each search will take fractions of a penny out of your wallet. Listening to music might cost a little more, and video might cost a little more than video. The funds from your e-wallet will be redirected in part to your ISP and a part to the content owner. A bit like local and premium rate phone numbers - some money goes to the telco provider, and some to the company who picks up the phone. My gut feel is that a regular user will spend £10-20 (in today's money) per month on this e-wallet.

That was all last September, and this week there was an article on TechCrunch (thanks to James at Endava for pointing this out) which described a new service called Flattr, which will adopt a similar-ish model. Flattr's model is more proactive though - the content owner needs to install a Flattr button, and the user needs to press the button for funds to go to that owner. It's a start though.


 

The future - live events funding free content?

Major League Baseball team the New York Mets are suffering falling attendances, despite the attraction of their new $800 million stadium, Citi Field..

The New York Times reports that the average attendance so far this season, after 22 home matches, is 31,892, compared to 38,744 last season. The 18-per-cent drop is puts the Mets second in percentage terms in falling MLB attendances this season. The Cleveland Indians are down 30 per cent on their last year's average, although this translates to a loss of only 6,585 fans a game, less than the Mets' 6,852.

Bad weather and poor performances by the Mets are being blamed.

“The problem is last year the tickets were really expensive and the team stunk and that can really stick with fans for a while,” said Jon Greenberg, the executive editor of Team Marketing Report, a sports industry research company.

Greenberg said a trend of new stadiums boosting ticket sales that was evident in the 1990s had tailed away.

“Stadium fatigue sets in much faster than it did before.”

The Mets cut ticket prices by up to 20 per cent after last season – their first at Citi Field – in an effort to pre-empt the “stadium fatigue”. However its monthly report to the MLB's commissioner’s office in March, showed ticket sales had dropped 40 per cent from the same period a year earlier.

With more and more content appearing free, or nearly free of charge - such as Spotify and iPlayer, there is a widespread opinion that live events will become more popular.

There are more music concerts than ever before, and these are likely to remain premium, high ticket cost (with a huge reliance on revenue from merchandise and other outlets at the venue).

However, American sport is the first report that I've seen which shows that even live events are being hit. This may be due to the recession last year, and this article suggests it's also to do with team performances.

If I was a media owner distributing my content for free, this article may provide some worrying evidence of having to find yet another business model.


 

Warner to quit free music streaming

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I have been saying for a while that we currently are at a peak amount of receiving free content on the Internet. We currently receive free news, music, radio, TV, books and podcasts.

This is not commercially viable in the long term. The concept of always finding advertisers to fund this is too risky - it's the continuous balance of finding an equilibrium of advertisers and content owners.

Today's news of Warner stopping licensing of free songs on Spotify and other services should come as no surprise. Quite the contrary - we should expect this to ripple through the rest of the industry.

However I will be interested to see if Warner do allow premium Spotify subscribers access to it's catalogue.

Maybe this is the start of the demise of the 'Freemium' business model.


 

Ten Digital Media Predictions for 2010

Here are my predictions for the coming year. In 12 months time, let's review what actually happened!

1. Reinvestment in Digital Media.

Based on a lack of investment in 2009, I think a lot of companies will see a website revamp, or a new product version appearing in 2010. This will be especially true of companies who chose to 'cut corners' in 2009, for example deciding to build their own proprietary CMS. This coming year, they'll choose to re-engineer the same site using an off-the-shelf, or even open source CMS.

2. Lack of new products due to R&D being slashed in 2009.

I'm not sure we'll see so many new Spotifys (Spotifies?) appearing in 2010, because of a lack of investment/R&D budget last year. Maybe we'll see new stuff appear at the end of the year though. The exceptions will be anything from Apple, with the imminent launch of their iSlate.

3. A number of live events on YouTube.

Yup, live is where the value is. And Google know this. So expect some new live events appearing on the platform in 2010.

4. More Flex applications, less Silverlight.

Flex will succeed because the creative agencies like Adobe and not Microsoft. This might change in the longer term, but for 2010, expect to see some sites migrate into very funky (I can't use the adjective flash here!) Flex applications.

5. SecondLife to further decline.

Yup, not many people are writing about SecondLife these days. My own personal view is that in the long term, the web will be accessible through a graphical interface probably not far off SecondLife, but for the next 5-10 years, the standard browser is very much here to stay. The LindeX (the market to sell real world cash for made up cash - quite remarkable really) is in a steady decline, and the data has been moved from publicly available to a free signup. Here's the graph as of today. Next yearm expect the graph to be totally unavailable, or in steep decline. A shame, but some technologies are just too ahead of their time.

6. The UK to start accepting blogging at the same status as the US.

In the US, bloggers have almost the same status as journalists. That's a bit of a sweeping statement, and my apologies to journalists who have had a turbulent couple of years, and an even bleaker future for a trade that's totally unfairly undervalued. Anyway, in the US, bloggers are often quoted by journalists and news organisations, whereas in the UK they are dismissed by the news organisations. Of course there are some exceptions such as The Guardian, but in the main, most people think that bloggers are nerds/IT geeks. This is a view which Twitter & the term 'microblogging' has helped to change slowly, but by 2011, I expect to see some famous UK bloggers be quoted by the press.

7. Offline browsers make a comeback.

My view of the Internet is that the same applications are constantly being re-invented. Facebook is like a modern version of Compuserve (a nice clean, walled environment); Skype is ICQ on steroids; Spotify is Real Networks (OK, just sort of!); Twitpic is like a billion free image sharing sites; today I even stumbled across a 'directory' of Twitter users - and directories kind of died off a few years ago! I remember installing offlines browsers on my Palm V in the mid 1990s, which effectively downloaded snapshots of a website on to my Palm, for me to read on the way home. I had a similar application on a few early mobile phones. Expect similar applications on iPhones, Kindles and iSlates to start appearing, so that users of the Tube and other areas can read articles on the move, outside of an RSS reader.

8. The FIFA World Cup sees huge use of video over mobile & broadband.

Put it another way, if it doesn't, expect to see broadcasters and mobile operators to pull out of mobile video for the foreseeable future. Expect some amazing stats for broadband use from Sky, ESPN & FIFA. In 2005 we were discussing a 10 deal for bandwidth that went into Petabytes, and everyone thought we were mad. Expect to see that word banded around a lot during the World Cup.

9. Expect ebooks to take off.

This has the potential for a huge market. I estimate football club programmes, concert programmes, manuals, etc. all to be available in ebook formats, either free or very low cost by the end of the year. It will be a mini-reinvention of MP3s...

10. 2010... the year of Web CRM

I have no idea why it's taken so long for a vendor to come up with a Web based CRM system. Facebook Connect, Windows Live signin & Google Orkut are the main contenders, but does a major website really want to release their list of customers to be shared with Facebook, Microsoft or Google? No. There are CRM vendors who charge a 'per user' model - which is useless for a free sign up model. A number of the newsletter systems are extending into this area - with Traction probably being the most attractive. But if you want a standalone web authentication and single customer view with Single Sign On (SSO), who are the sub $50k vendors? Exactly. So expect to see new players start appearing here.


 

Bradley Howard

Head of Digital Media at Endava, although all the views in this blog are purely mine and not necessarily those of Endava.

 

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