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June 9th, 2011 by Wadds

Financial Times leads the way with changing content models; Kaiser Chiefs less brave

There have been two announcements from content creators in the last week, each making an effort, to innovate their business models, and generate profits online.

In my view the Financial Times has been brave in its attempt to circumvent Apple, whereas although the Kaiser Chiefs has repackaged its new album in an innovative way, it remains shackled to a music publisher.

The Kaiser Chiefs published a new album called The Future is Medieval on Friday. It consists of 20 tracks and potential purchasers are invited to mix their own album of ten tracks for download. Once you select and album cover and buy an ‘album’ and you get the opportunity to resell it to your friends via a personal web page for a £1 cut.

It’s a smart move you might think; an attempt to revive album sales and halt privacy. But it still has a music publisher, Universal in this case, underpinning the operation and taking a slice of the action.

If the Kaiser Chiefs had wanted to be truly innovative they would have set up the web infrastructure themselves and sold direct to their fans taking a larger slice of sales.

That would have been truly media disintermediation. After all it’s what Radiohead did. The British band famously parted company with its record label EMI in 2007 and released its album Rainbow directly to fans via the internet.

The Financial Times meanwhile has announced an Android app based on an open web standard to rival and usurp its iPhone app. Pearson, owner of the Financial Times, has long been critical of the non-negotiable 30 per cent that Apple demands for the carriage of iPad apps on iTunes.

The Financial Times will almost certainly maintain both Android and iPad apps but the threat to bypass Apple could not be clearer.

 

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July 7th, 2010 by Wadds

Media monitoring beyond the paywall

PR agencies and brands needing to see what has been written about them on national newspaper web sites face a quieter couple of months given the new News International paywall and The Financial Times (FT) digital archive.

Content from News International titles has been withdrawn from media monitoring agencies and aggregator services and won’t be available until the launch of the Newspaper Licensing Authority’s (NLA) eClips platform, expected sometime in September.

NLA channel partners such as Cision, Durrants and Precise will provide their clients with News International content via the eClips platform as part of their monitoring services.

Meanwhile, the FT has pulled out of the NLA scheme and has launched its own digital searchable archive. In future media monitoring agencies and their customers will need to purchase a licence direct from the FT once their current NLA licence expires.

Is this the thin end of the wedge for the demise of the ‘pay once and you’re protected’ approach to media copyright management?

“The FT has been developing a direct licensing philosophy for some time. [It] wants a direct customer relationship, so that whilst the channel (aggregator or press clipping agency) may charge for its service, only the FT can charge for its content,” said David Pugh, CEO of the NLA.

“Collective licensing is valuable for publishers and clients alike – but the FT feels that it has a unique position as a global brand with niche content and expertise – and their view is that this is best managed by them directly,” he added.

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March 28th, 2010 by Wadds

NLA web licensing won’t make a dent in online losses for newspaper industry

Revenues from the Newspaper Licensing Authority’s (NLA) web licensing scheme will make little impact on the losses being racked up by newspaper publishers online.

The NLA’s own estimates put annual revenues for the scheme at £2 million. Meanwhile, the Guardian alone is reportedly losing £36m per year, or £100,000 per day.

Under the NLA’s leadership the newspaper publishing industry believes that it should benefit from any income generated by third-parties that sell products or services based on content generated by NLA members.

The Financial Times and The Times have opted out of the scheme and plan to implement their own independent licensing models.

The NLA scheme has seen aggregators, clipping agencies and PR firms subject to a levy from the start of the year. But the NLA isn’t charging Google claiming that it is aiming its scheme solely at business-to-business users.

The PR industry body PRCA and clipping agency Meltwater are challenging the NLA’s scheme via the UK Copyright Tribunal with the claim that effectively charging from links is an affront to democracy and the openness of the web.

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March 3rd, 2010 by Wadds

BBC Strategy Review: BBC 1 – commercial sector 0

Almost every speaker during the last two days at the FT Digital Media & Broadcast conference has spoken of their plans to grow their digital business.

BBC Director General Mark Thompson was the exception. In his strategy review of the BBC set out yesterday he proposed that the BBC pull back its online effort. The review calls for a 25 per cent reduction in the budget for bbc.co.uk and half the number of sections on the site. Savings will be reinvested in the generation of content elsewhere within the BBC under five new editorial priorities.

Whether or not this will be sufficient to pacify critics in the commercial media sector only time will tell. John Ridding, CEO, Financial Times, said that the BBC web site hadn’t helped publishers in their bid to build revenue around news online.

James Murdoch has traditionally gone further. He has been fiercely critical of the scale of the BBC’s free-to-access new web site.

Speaking at the conference yesterday Thomson said that the proposed strategy review will “create spaces for others to fill”.

The proposal also calls for the closure of the BBC Asian Network and BBC 6. Both measures have already resulted in fierce opposition from the audience with a variety of forums, Facebook groups and petitions already in circulation.

By attempting to pacify the commercial sector with its proposals yet also keep its audience onside the BBC has created a smart leadership platform for the ensuing three-month consultation period.

The Financial Times chief media correspondent Ben Fenton has suggested yesterday that the timing of Thompson’s review is incredibly shrewd.

The three-month period of consultation on the proposal means that it has been kicked out beyond the date of the UK election meaning that the BBC charter is unlikely to be an election issue.

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