Thank goodness someone explained to everyone why tweeting how much you’d pay for HBO Go is a useless exercise:
Think about it: Every time someone signs up for cable or satellite service, one of the inevitable perks is a free six- or 12-month subscription to HBO. And those free subscriptions are rarely, if ever, cancelled once the trial period ends.
What would happen if HBO no longer had the pay TV industry’s marketing team propping it up all the time? The results would be disastrous, and there’s no way that HBO could make up in online volume the number of subscribers it would lose from cable. Which is why, even though some users would actually pay more for access to HBO GO without all the other cable channels, you won’t see it show up as a standalone service anytime soon.
What’s more, I find the whole attitude that HBO must be stupid to not offer this to be the most obnoxious part. Are we really to believe that no one inside HBO has considered this? There are a lot of complexities to any market and the reason a company isn’t doing something that seems obvious is hardly ever because they haven’t thought of it. Or, if you don’t believe me, listen to what Dan Frommer has to say.
And actually, whenever I read anything about this topic I think back to this piece from 2007 by Joe Nocera about a la carte cable.
Ha. I love this story of a Nook publisher accidentally replacing every instance of the word “kindle” in their Nook edition of War and Peace with the word “nook”:
The Nook version of War and Peace had changed every instance of “kindle” or “kindled” into “Nook” and “Nookd,” not just on Philip’s copy, but on ours too.
The Superior Formatting Publishing version isn’t a Barnes and Noble book, so this isn’t the work of a rogue Nook marketer from B&N. Rather, it’s likely that Superior Formatting Publishing ported its Kindle version of War and Peace over to the Nook — doing a search and replace to make sure that any Kindle references they’d inserted, such as in the advertising at the end of the book about their fine Kindle products, were simply changed to Nook.
Rei Inamoto, who’s in charge of creative at the agency AKQA, has an interesting piece on how agencies need to act more like startups. While I don’t agree with everything in there, I have always been interested by the relationship between the advertising and startup world described by Cindy Gallop:
This contradiction, and this identity crisis, however, doesn’t just exist within the ad industry. Gallop points out a core contradiction inherent in the startup space: just about everyone in the tech world hates ad people’s guts. They all believe that advertising is a very bad thing and that ad people are very bad people. Yet, their entire business model in many tech ventures is built around advertising. Take Facebook, for example. The bulk of its $3.7 billion revenue comes from advertising. Google, a company that shunned advertising for many years, built its business around advertising.
This is a fascinating concept:
ReDigi opened last year with a novel, if controversial, business concept: let consumers resell their old digital music files. Relying on the “first sale doctrine” — the legal concept that someone who buys a copyrighted item like a book or CD has the right to sell it or give it away — ReDigi operates a marketplace in which fans can upload unwanted songs and buy others at a discount.
Obviously they’re now being sued (on the grounds that they are not actually selling the original, but rather making a copy), but the broader question on whether you can have a used digital good is very interesting. Does the ability to instantly copy something kill the idea of used? What about something that’s 3D printed?
Russell Davies is a very smart dude. I love the conclusion to his short essay on post digital:
And then, this morning, when struggling to think of a good ending to this, I heard a brilliant talk by George Dyson – describing the early history of computing unearthed from correspondence between Turing and Von Neumann. And I thought I heard him cite this quote from Turing. I wasn’t quite fast enough with my pen to be 100% sure and I can’t find it on Google, but I think this is what he said. And, if it is, it’s exactly what I mean and we can leave it at that. What I think he said is this: “being digital should be more interesting than just being electronic”. I’m sure that meant something slightly different in the middle of the last century but the words are useful and simple now, they’ll do for me as a tiny rallying cry; being digital should be more interesting than just being electronic.
Shiv Singh, head of digital at Pepsi, makes some points I agree with (and a few I don’t) in his thoughts about the future relationship between TV and the web. One I’m with him on is this: “When TV ads become teasers for digital experiences, the ROI on the investment will improve significantly as the digital experience will stretch out the brand experiences beyond the 30 second clip.. The ROI won’t be measured by the impact that the TV ad has when it’s aired but also by its residual influence on engagement in other mediums in the weeks that follow the airing.” I think this is going to spell a big change for the agency landscape and spell the first real opportunity for digital shops to bite off a larger piece of the advertising pie.
Also reminds me of something one of my favorite internet thinkers, Duncan Watts, wrote a few years ago about how brands could use “viral”:
Imagine, for example, that an advertising firm makes a standard ad buy on the Web, or directs TV viewers to a Web site, or uses an e-mail list to contact potential consumers directly. Regardless of the method used, the campaign will yield some large number, N, of conversions—people who are sufficiently interested to click on the Web ad or embedded link. Traditionally, that’s all it would be expected to achieve, but imagine now that these N viewers can also share the ad easily with anyone else. In other words, what would previously have been the entire audience for the message also becomes the big seed for a viral campaign in which the newly added people can forward the message to their friends, who may forward it to their friends in turn, and so on.
Thought Watts is a lot more academic, the point is the same and the science is simple: If you have a big enough seed, your odds of seeing something catch fire is higher.