How do you get Web users to pay for content? Get an iPhone into their hands.
That’s one conclusion you can draw from a new survey showing that people who own Apple handsets are more willing to pay for stuff than the average Internet surfer.
Yesterday, Viacom told Wall Street that its third quarter had been better than most analysts expected. Today Time Warner delivered a similar report: Revenue was on track, but cost savings improved the bottom line. That won’t help hundreds of Time Inc. employees who face job cuts this quarter. Meanwhile, the company can’t ditch AOL soon enough: It has already spent $100 million prepping it for a spinoff this year.
Here’s another quick glimpse of the advertising market, courtesy of Viacom. The cable giant says ad sales are still down, but that the rate of decline is slowing. And in the fall of 2009, that constitutes pretty good news.
Is Hulu putting up a pay wall around its Web TV site? Nope.
Does Hulu want to charge people to watch Web TV? Yes.
Confused? Don’t be.
Here’s the explanation about what’s going on at the premium online video site.
Eric Spiegelman has a Web video hit on his hands. “Old Jews Telling Jokes,” a series of short clips featuring exactly what the name suggests, is popular, viral, and cheap to make. But he still can’t cover his costs with Internet advertising. Enter the ancillary products, like a new book deal.
Big, beautiful high-def TVs are so plentiful and so cheap that nearly everyone who wants one has one. So what can TV manufacturers do to goose sales? Add new features and hope consumers clamor for them.
Hence, Sony’s announcement that it’s making a big bet on…3-D TVs. CEO Howard Stringer is using the IFA Technology Show in Berlin to announce that Sony will make 3-D Bravia sets.
And 3-D Vaio laptops. And 3-D PlayStation3s. And 3-D Blu-ray DVD players.
So now that the RealNetworks attempt to get into the movie-copying business has been rebuffed by a federal court once again, I’ve got a question: Why, exactly does RealNetworks want to be in the movie-copying business?
Amazon’s Q2 was just what Wall Street was expecting–which in Wall Street’s perverse logic means that Wall Street will be disappointed. Amazon delivered net sales of $4.65 billion and earnings of 32 cents per share; consensus called for $4.67 billion and 32 cents. Jeff Bezos might have been able to allay investors’ worries, but he was a no-show for the conference call.
If you find yourself constantly cursing as your laptop struggles to stream a video clip, perhaps it’s time to consider a move. If you live in Delaware, you’ve got better odds at getting a high-speed connection than in any other state in the U.S. And if you’re really serious about speedy surfing, get yourself to Japan or South Korea. Bonus video: Break-dancing babies on rollerskates!
This is the soft bigotry of low expectations: Viacom saw its earnings drop by 70 percent in the last quarter, pushed down by a write-off and weak advertising and DVD sales. But compared to its big media peers, that’s really not so bad–at least it didn’t drop a bundle on a newspaper in the last year.
Back to grim news: A bad economy and bad timing mean that the DVD business, once a source of strength for Hollywood, is going to be a weakness. “Home entertainment revenue” may shrink five percent or more this year, which is particularly bad news for Viacom and Time Warner.
Want to watch nerd-favorite “The Fifth Element” via Netflix’s awesome streaming service? OK, but hurry up–the movie will disappear from the service on New Year’s Day. Want to rent the excellent George Clooney corporate thriller “Michael Clayton” via iTunes? Too late! The movie was there, but now it’s not. Wait a minute: Hadn’t big media finally gotten religion and agreed to give us, the demanding consumers, everything we want, whenever we want it? Nope.
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »
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