Posts Tagged ‘subscriptions’


Rise in Ad Spending Contributes to Media Companies’ Strong Q3 Earnings Led by Fox News Corp, Time Warner, and CBS

Monday, November 8th, 2010
Image Source: Positive Real Estate Professionals.com

Image Source: Positive Real Estate Professionals.com

I was about to write my post on how the latest and greatest technology is changing media – until I saw last week’s earnings releases start to roll in from the media sector. Time Warner (TW), Fox and then CBS all posted double digit increases: 

  • CBS saw a 42 percent increase in third quarter profits.
  • Fox cable network unit’s quarterly income improved by $146 million compared to the same period a year ago.
  • TW’s better than expected earnings contributed 62 cents per share, compared with Wall Street projections of 53 cents.

(Source: New York Times, “Profit Rises at Time Warner and at News Corporation,” 11.3.10)

The media giants earnings from last quarter are not only good news for shareholders, but for an industry that has seen its share of challenges over the last two years – battling online sites, cord cutting (customers canceling their pricey pay-TV subscriptions), falling TV ad revenues, not to mention the economy. According to this Reuters article, TW and Fox reiterated they saw no signs of cord cutting, a term adopted from the telephone companies to describe the shift from land lines to cell phones. “’I don’t get this cord cutting issue,’ News Corp Chief Operating Officer Chase Carey said on a conference call. ‘I feel it is a fundamental service that for American households is a fundamental part of what they do with their time, and what they value in their life.’”

The biggest reason for their strong earnings could be the most telling – and hopefully sustainable – number of all. All three media giants saw very encouraging increases in ad revenue in 2010. Both CBS and TW were up 10 percent, while Fox News Corp was up a whopping 16 percent from their domestic cable channels. (Source: Reuters, “WRAPUP 1-Media Sector Wrings Hands on 2011 Outlook,” 11.3.10)

Political ad spending was a nice shot in the arm for TV, with 2010 being an election year. In fact, political ad spending, for this year, is predicted at three billion dollars and may top 4.2 billion dollars, notes this Adage Age article.

Any numbers from 2010 should come in higher compared to a dreadful year in 2009. Last year TV ad spending was down by nine percent, led by a shredded car industry with the sectors TV ad spending down 23 percent compared to 2008. However, the increase in ad spending this year is still very impressive and driving revenue for a hard-pressed industry.

As quoted from this New York Times article, “’The takeaway is that advertising is strong,’ said Michael Nathanson, an analyst at Nomura. ‘The video ecosystem of affiliate fees and advertising seems to be holding up well.’”

This earnings season is proving to be a rebound year for media companies and is confirming what I have been writing about for the last two years – the same idea Sumner Redstone expressed before delivering very impressive earnings – “Content is King!”

The recipe seems simple for big media: provide great content; find a way to monetize the content; keep costs down; and let the content fall where it may. Then kick back and watch the revenue streams flow regardless of which platform audiences use to consume the content. It certainly is good to be king…at least for the moment.

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Newspaper Apps Changing the Way Audiences Consume News

Tuesday, September 21st, 2010

Lauren Shapiro* 

Rumors of iNewspaper, the new iPad application, have begun taking center stage with Internet chatterboxes. With its new app, Apple would create digital versions of publications by selling subscriptions on behalf of the publishers (and taking a cut of the profit, for sure!). However, the iPad friendly newspaper is not a new idea by any means.

Flickr Image Source: Byrion (Byrion Smith)

Flickr Image Source: Byrion (Byrion Smith)

The biggest names in publishing have already established themselves on the iPad including the New York Times, BBC News, Wall Street Journal and AP News. Some downloads, such as the Wall Street Journal, are even free; however for access to exclusive content, a subscription purchase is required. According to PCWorld.com, WSJ users can even create a custom “watch list” of their stocks and funds.  For BBC iPad readers, you can view articles in several languages including Spanish, Russian and Arabic. But, the real niche of online news subscriptions is the customization options. BBC News allows users to personalize the content they view based on interest. While offline, the application will search and locate stories for the next time you turn your iPad on.

Will the iPad subscription based model help drive revenue to electronic publications? The answer is, probably, yes – especially as free views of online articles become more limited by publishers. But the momentum and accessibility of online publications will likely urge readers away from the classic hard copy publication (e.g., commuters who rely on a good paper to read while taking a bus or train to work).

The trend toward an iNewspaper product is a sign of the times as the world becomes more reliant on the Internet than ever. Apple seems to have found itself at the forefront of this technology and has placed itself comfortably in the middle (as publishers learn how to better monetize their content) likely allowing Apple to earn quite a few pretty pennies in the meantime.

As a communications professional, do you think that e-publications will ever take the strength away from hard copy publications? How do you think this will impact your public relations, marketing, and advertising efforts? Please share your thoughts with me and the readers of BurrellesLuce Fresh Ideas. 

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*Bio: Soon after graduating from the Richard Stockton College of New Jersey, in 2006 with a B.A. in communication and a B.S. in business/marketing, I joined the BurrellesLuce client services team. In 2008, I completed my master’s degree in corporate and organizational communications and now serve as Director of Client Services. I am passionate about researching and understanding the role of email in shaping relationships from a client relation/service standpoint as well as how miscommunication occurs within email, which was the topic of my thesis. Through my posts on Fresh Ideas, I hope to educate and stimulate thoughtful discussions about corporate communications and client relations, further my own knowledge on this subject area, as well as continue to hone my skills as a communicator. Twitter: @_LaurenShapiro_ LinkedIn: laurenrshapiro Facebook: BurrellesLuce

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Paid Content vs. Free Content, Apple vs. Google, Web Browsers vs. Apps…as we enter a new phase of digital media who will emerge victorious?

Monday, September 13th, 2010
paperboy

Image: www.aftermathnews.wordpress.com

In March 2009 I wrote my first blog post, here on BurrellesLuce Fresh Ideas, about how emerging technologies and platforms were changing the way we consume news – supported by input I gathered from a media summit I had attended that featured panelists such as Joe Scarborough from MSNBC’s Morning Joe and BBC’s Rome Hartman.

I wrote, “And with the rise of ‘citizen journalism’ and this ‘Pro-Am’ partnership that is developing with media, the panel agreed that consumers will have a stronger need for trusted brands, filtering, and editing to help navigate the media.” A year and a half later, the cream seems to be rising to the top in this fragmented media universe.

Today the “trusted brands,” such as The New York Times, are beginning to abandon the old business model of offering free content in exchange for paid advertisements. They are instead looking to generate additional revenue by putting their text, audio, and video behind pay walls or by offering their content as an app for a small fee. “I think we should have done it years ago,” said David Firestone, a deputy national news editor commenting on the NYT’s decision to put some of their content behind paywalls beginning in 2011. “As painful as it will be at the beginning, we have to get rid of the notion that high-quality news comes free.”

The Times Co. Chairman and publisher Arthur Sulzberger Jr. added, “This is a bet, to a certain degree, on where we think the Web is going…This is not going to be something that is going to change the financial dynamics overnight.”

In fact, no one is sure where the web is going; this undeniable shift away from free content will certainly make life more difficult for the Googles of the world who rely on free content to fuel their search engine. Consumers may turn to company’s like Apple for their media, who adopted the “paid content” model early on by making content available for small fees through iTunes and more recently showing consumers how convenient it is to access a magazine or newspaper digitally for a small fee on their iPad.

 Fox News this week launched its new iPhone political app, available through iTunes for 99 cents. “The idea is that this is your essential guide to daily political news,” says Chris Stirewalt, Fox News digital politics editor, “to put power into peoples’ hands to give them the opportunity in this history making, nation shaping election, to have the tools at hand so that they can really understand and add to the depth of their experience.”

With more people opting to have their media pushed to their smart phones and iPads rather than retrieving information over the Internet it will be interesting to see how this affects web browser traffic. As free content slowly disappears, news websites and aggregators such as the Drudge Report and the Daily Beast may have a tougher time filling their sites with the hyperlinks that contain the raw material that drives much of their sites traffic. Instead the eyeballs will be looking in other directions – with more people willing to pay for content this may ultimately prove to be the antidote that saves a hemorrhaging newspaper industry.

It appears we are on the verge of coming full circle on how we get our news. We’ve gone from relying on newsstands and subscriptions to searching and accessing free content online, only to return to paying the publishers directly once again for their content through app fees and online subscriptions.

Paperboys and newsstand operators may be on the verge of extinction; however, content providers like newspapers, network, and cable TV and movie studios may have the final say in how their product is consumed after all.

As public relations and marketing professionals, how are you getting your news? How do you think the evolving media landscape will affect your ability to successfully conduct media relations and assess the value of your efforts?

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PR’s Digital Dilemma: When Can ‘News’ Be Spelled T-w-e-e-t?

Wednesday, April 29th, 2009

Gail Nelson
For marketing pros, especially those with PR responsibility, the quantity of news is mushrooming. Reading everything you need to know about your clients and products, along with everything you want to know about the industry, takes more time than ever before.* 

In such frenetic circumstances, we’re all asking ourselves how we can best set priorities. One approach many PR practitioners are taking is to communicate in formats such as Twitter. In fact, last week I put out a Twitpoll asking my Twitter followers the source of their PR news. It’s hardly a scientific endeavor. So it’s no surprise that as of this writing, the Twitpoll indicates that communication professionals get most of their PR-related news from Twitter. But content is not on Twitter – it surfaces as links to the sites of content producers. (I recommend reading Monica O’Brien’s recent post on “The Resourceful Marketer” to streamline the process of striking it rich in content on Twitter.)

I’ve been thinking about how many of the concerns facing the macro world of media hold for news purveyors in the PR industry. Can the quality of the content hold up? As you may know, PRWeek is changing its delivery model – switching from a weekly print publication to an email publication and requiring an annual subscription. A new monthly feature magazine will appear in the product line-up, along with a re-launched daily email blast.

In, “It’s Still Called PRWeek, but It’s Going Monthly,” a New York Times article published on April 26, author Stephanie Clifford postulates that it may be too confusing to dub a monthly print publication PRWeek. I contend PRWeek is a bankable brand and produces a range of products – such as webinars and live events. (As head of marketing for BurrellesLuce, I purchase sponsorships for these products, and must say I am impressed by the way the publishing staff is handling the change.)

PRWeek is betting that people will be willing to pay for content on the web that was previously available free of charge. PRWeek’s move is a brave one, especially if it is looking to expand its subscriber base and not merely slash production costs. I am hoping it comes out ahead. People trust its content, and its journalists know how to break and communicate news.

So, what do you think? Where are you getting your content? What are you willing to pay? And will the new PRWeek model take hold?

*  This is why a holistic monitoring service – one that delivers content from both traditional and social media – delivers so much value these days.

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