The battleground for living room supremacy is about to heat up significantly with the promise of video conferencing using your HD television. The technology has been around since the early 80's with expensive wall phones, yet no company has successfully been able to monopolize it. There are expensive systems corporations buy that cost tens of thousands of dollars to hundreds of thousands of dollars and run on highly optimized network connections. None of this is feasible for the home [see the 80's for past failures]. Yet I imagine this week at CES a number of companies will unveil so called revolutionary devices that have the capability to finally make this happen...
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It never sat well with me that NASA doesn't hold the same clout it did during my adolescence. Whereas passing by Moffett Field during my childhood would cause our old volvo station wagon to tilt sideways from the weight of my siblings and I pressed up against the windows to perhaps catch a glimpse of the space shuttle, today seeing the iconic hangar only elicits thoughts of drunk Googlers getting off the party plane.
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2009 will likely bring a number of newspapers to terms with the drop
in circulation numbers and subsequent ad dollars. It is not uncommon
for these publicly traded entities to rely on their corporate
investment portfolios to keep their core business that of reporting
news going. At some point they will have to re-evaluate whether
reporting the news is profitable at all. Objectively this comes as a
surprise as it could easily be argued that more people (than ever
before) are actively seeking out and even reporting the news. Its
just that the mediums have changed (mostly in the form of smart
phones) and the traditional media companies have failed to monetize
the receiving/delivering of information on these devices.
The first wave of internet popularity was largely driven by the
democratization of information for free. All of a sudden anyone with
a connection (regardless of the service provider company) had access
to seemingly infinite information they searched for. Many companies
attempted to monopolize information by providing it in the form of
portals that users would choose to go to when initially connected.
Much like a digital newspaper, only it was free, and dynamically
updated throughout the day.
Yahoo! was particularly successful at this. Their ability to
categorize content in an aesthetically pleasing manner made them the
de-facto starting point (homepage) for many users.
But as users matured the information Yahoo had categorized for the
home portal was too general and increasingly irrelevant to their
needs. Quickly adapting, Yahoo! provided the ability to customize the
portal specific to each user though this ultimately failed due to a
time investment from users who hadn't yet developed the aptitude or
the appetite for digital information.
As such, a simplified more robust search engine (Google), allowed
users to find what they were specifically looking for, emerged as the
leader. Yahoo!'s portals posed no threat to newspapers who largely
ignored the internet as a medium for information distribution. Just
as users were unwilling to spend time customizing their portals, they
were just as unwilling to pay any type of subscription fee, making it
unattractive to pursue. However reading habits changed significantly
once users were able to find what they were specifically looking for
as did the attention of advertisers who were enticed by placing ads on
reliably accountable page views that sometimes dwarfed entire
newspaper subscriber counts .
As with any new technology the adoption rate of getting information
from the internet over time grew substantially with relative maturity.
The newspaper held on as there was still no replacement for the news
while in transit. The internet had yet to proliferate airspace. It
was once this became a reality that newspapers really started to feel
the pinch. The ability for users to read what they're specifically
looking when they want in the palm of their hands is tough to compete
with even for a technology [newspapers] that has stood the test of
time.
This reality should be looked at as an opportunity instead of a
determent for media companies. The simple fact that should not be
overlooked is, people are still reading the news, arguably in larger
numbers. The monetization of it just hasn't been effectively
executed.
Another point to note is that during the early days of the internet,
people were largely unwilling to pay for any software. The internet's
popularity was propelled by users ability to exploit their connection
for piracy of just about anything. While still a large aggressively
growing aspect of the internet, Apple's iTunes has shown that the
monetization of movies and music is very real and should not be
ignored. The lesson there is, if it is cheap enough, for example
$0.99 for a song, people are just as willing to pay for it. Using a
similar model, apple has done what was largely considered impossible:
monetized consumer mobile software applications. Many gimmick
programs, including iFart, iSmoke, iBeer, have made substantial
amounts proving that if effectively priced, people are now willing to
pay for things. The simplicity of the payment method (click to buy)
as well as the social acceptance of giving out iTunes gift cards has
fueled an unlikely industry.
The price of a daily newspaper [which I had to google because its been
so long since I bought one] is still less than $1 and presumably still
has 5 sections with approximately 20 articles in each. It could be
argued (of course simplified) that the value of each article is $0.01.
It is this minimal investment by readers that allow them to
carelessly dispose of them at the end of the ride or graciously offer
it to the person sitting next to them.
If in a similar fashion, one were given the option of seamlessly
paying for only articles they read it is conceivable for far less
content, physical manufacturing and production, a newspaper could make
the same amount (from daily readership revenue). If a reader spends
less than a dollar reading the paper (in digital format) they are
likely to not even consider the cost as long as payment is 100%
seamless to them.
Original newspapers won reader loyalty for outstanding journalism that
was one step ahead of the competition and worth the minimal cost.
Newspapers today are still the most reliable source of news
information, have the most thought provoking and important editorial
staff that users would be willing to pay for if the monetization of
the information went back to the basics employed by cheap newspapers.
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