Two major online news factors for young people

pew-readersNew Pew Research reveals that young people prefer to READ news online rather than watch it. This is being presented as a revelation (Younger adults prefer to get their news in text, not video, according to new data from Pew Research), but it’s really just another example of news organizations’ history of not paying attention to reality. The new report doesn’t tell the whys, and doesn’t even speculate. Please allow me to give you two important reasons why young people prefer reading news to watching it:

Over fifteen years ago, then J. Walter Thompson CEO Bob Jeffrey said, “Time is the new currency.” Many of us at the time applied the idea to online media, especially after we learned that viewers were using DVRs to avoid commercials, and the not-so-secret reason was that they “didn’t have time” for commercials. Therefore, the first reason young people would rather read news that watch it is you can do the former a whole lot faster. Don’t try to dazzle me with your storytelling genius; just give me the facts, so that I can determine (for myself) if I wish to explore further.

The reason media companies prefer video is the nice ROI on ads. Madison Avenue likes video, and that means media companies do, too. Unfortunately, nobody in either of those two chairs gives a ripple chip about what the audience might think and don’t think twice about irritating those viewers with pre-roll ads. Therefore, the second reason young people prefer reading to viewing is the annoyance and wasted time of advertising that is meant for a different medium.

All of this is doubly significant on mobile, which is THE go-to platform of young people (and beyond).

There are other factors. For example, prime time for news remains the hours at work, and the disruption to the office of someone watching a video is untenable.

Many of us have known for a very long time that news clips with attached (or detached) pre-rolls wouldn’t work to grow revenue, just like we knew that recorded newscasts on demand wouldn’t be a significant revenue source either. This is the Web, people, not TV. We’re not on a stage with a captive audience. We still need to get over ourselves and start honoring those eyeballs that we need so badly. And PLEASE can we stop feeding them ads that were created for TV, not the Web?

Passages: Put a fork in me, media. I’m done!

terrywhole2As I approach my 8th decade on the planet this summer, I’ve decided to move along in my professional life to something a bit different. I’d like to share it all with you, my friends.

It’s a heady thing when people choose to read the things you write, and I’ve always been extremely grateful and humbled by that. I’ve been writing The Pomo Blog for 15 years now, and we’ve covered a lot of ground in the posts and the essays. I’ve organized groups of bloggers, helped write the book on aggregation, helped originate the idea of unbundled media, wrote about data long before anybody could grasp the meaning, innovated the concepts of Continuous News (which is now everywhere), local ad networks, and advertising as content (aka “content marketing”), and identified things that are still influencing media and far beyond, such as the concepts of spectrum within spectrum and the evolving user paradigm. I’m also the only person who continues to study postmodern journalism and its consequences for tomorrow.

And for all of that, I’m broke.

And you know why? Because the industry that I’ve been trying to help for the last 15 years, local broadcasting, doesn’t give a ripple chip about any of it. Oh, the people in the trenches certainly do, but not those who live in the towers and write the paychecks, including mine. I’m tired of beating a dead horse, and that’s what local TV has become (thanks, Harry). What used to be a thriving industry of innovation, public service, and people who wanted to change the world has become the lifeless bones of an aging and smelly corporate carcass whose owners specialize in sucking the marrow to milk whatever profit is left. These wealthy bean counters, lawyers, and “managers” beat the drums of self-righteousness and the law, while picking the bones through cost-cutting, consolidation, and clout. Am I bitter? Of course I am, but not because I’ve been rejected, but because I actually believed they would want the industry to survive and thrive the disruptions to its core. That’s not the case, however, for the true inspiration of the people who run these companies is a comfy retirement, and the pathway is happy shareholders – the people who care ONLY about profits. Those people are also a part of the 1 percent, each seeking their own comfy retirement, too. I guess I’m angry with myself for ever believing something different was possible.

And so, I don’t care anymore now, and I’ve chosen to say “f**k it.” Effective immediately, I’m removing media and new media from the focus of my attention and moving on into other parts of culture, especially religion. I’m unsubscribing from all the newsletters, RSS feeds, and anything that has anything to do with media, advertising, etc. I’ve finished a new book, “How Jesus Joined the GOP” and while it’s being edited, I’m searching for the right agent and publisher. I was responsible for executing Pat Robertson’s plan to use television to “change America for Jesus,” and I know things about that process that are both fascinating and frightening, especially as it relates to today’s political landscape.

But the most remarkable observation to me is that I have studied cultural postmodernism through a different lens than those who’ve studied it in the name of “the church” and yet we’ve come to similar conclusions. I believe I have a lot to offer this world, and that’s my goal. There may not be much in the way of profit for me financially, but I’m used to that by now. What’s clear to me today is that life itself is changing before our eyes here in the 21st Century, and it goes far beyond the limiting scope of media. That’s where I want to be and need to be. It’s calling me – quite loudly, I think – and that’s where I’m going.

There are incredible events taking place in the world of spiritual understanding. It’s a transformation brought on by the same energy and innovations that are changing media, the kind of stuff that will shock and reinvent religion’s role in culture for the better. Its exhilarating and filled with people who really care about what’s happening. They need (and I hope they want) my eyes and the knowledge I’ve acquired as a cultural observer.

So I hope you’ll join me on this journey, but if you don’t, that’s okay. I’m very proud of the work I’ve done since I left the TV News business in 1998, despite the lack of proof that it has meant anything to the industry that was my life for so long. I’m alright with that, because the end of that story hasn’t been written yet, and who really knows where anyone will end up in the sands of tomorrow? I only know one thing for certain: I have touched The Unbroken Web, and that is worth any price I have to pay in this life.

May God bless and keep you all.

Broadcasting’s disruption on display in Raleigh

NBCWRALThe affiliate switch in the Raleigh market is BIG news and yet another harbinger of things to come for broadcasting. It doesn’t matter who initiated what in this remarkable event. WRAL-TV claims they did, because NBC is the best positioned broadcast network for the future. However, many observers, such as Al Tompkins at Poynter, are blaming the tough fiscal stance CBS is taking in affiliate renewal negotiations.

The switch was prompted by a disagreement between WRAL and CBS about how much revenue paid to WRAL from from cable companies should go to the network.

It would be easy to dismiss this as just another financial consideration on the bumpy road broadcasters are trudging, but that doesn’t go deep enough. The truth is that the broadcasting business model itself is hopelessly borked, and these kinds of events are simply guideposts along the way to its inevitable collapse. Nobody wants to talk about it, least of all owners, because there’s real money in maintenance of the status quo or at least the appearance thereof.

Local television is falling off the same cliff that destroyed newspapers, but it hasn’t shown up on the bottom line yet, because ever-increasing retransmission consent fees have shielded it from reality. There is no way it can continue for long. Consumers will simply refuse to pay for it when there are cheaper alternatives available. Mass marketing continues to take blow after blow from more cost-effective digital marketing, which is actually direct marketing disguised as mass marketing. Again, nobody wants to admit this, so we all just move forward basing our value on false assumptions of an archaic model. It helps no one except the executives charged with maintaining the hunky dory appearance.

How is anyone surprised that CBS wants top compensation for its top-rated programs? One day, CBS will be a kind of cable network, because it can gain the kinds of program compensation it deserves instead of splitting that money with local affiliates. TV program distribution doesn’t require broadcast affiliates anymore. Netflix and Amazon both won Golden Globes this year. This is all being forced by consumers who are now free to protest the gluttony of 5-minute commercial breaks in “their” programs. Are we really so foolish as to think the era of audience captivity is still moving forward? So much has been written about how the people formerly known as the advertisers are now functioning as media companies themselves that it’s hard for me to believe there’s a single person left who believes the ad-supported content model remains viable as a growth strategy.

The ONLY thing local broadcasters have left is news, and it’s never been more important to be number one. These locally-produced programs historically have generated half of the typical station’s revenue. But half the revenue will never equate to 100% of the expenses, so even the viability of quality local TV news is problematic. There will be cutbacks galore, and some stations just won’t make it. 15 years ago, I suggested stations might want to spin off their news departments into wholly-owned subsidiaries and let them find their own economic justifications. At the time, this would’ve also given local news efforts an opportunity to actually compete with web companies instead of relying on the brands of the TV stations for complete sustenance. Competing as a TV station online has never made sense, and yet that’s as far as most have gotten or will ever get.

In conclusion, the event Friday in Raleigh is stunning no matter how you look at it. To me, however, it’s just further evidence of a predictable future that doesn’t look so bright for my many friends and colleagues still toiling in the trenches.

And to paraphrase George Carlin, “These are the kinds of thoughts that kept me out of the corporate board rooms.”

CBS disses affiliates with Star Trek announcement

CBS announced today that it is creating a new version of Star Trek for distribution in 2017. It’s not a shock, because the show’s 50th anniversary is coming up next year, and Star Trek is one of the all-time greatest franchises, regardless of the iteration.

What is going to shock the universe in the days ahead is the announcement that the program is only going to be available “exclusively” via the CBS All Access streaming service, according to the CBS press release:

The premiere episode and all subsequent first-run episodes will then be available exclusively in the United States on CBS All Access, the Network’s digital subscription video on demand and live streaming service.

The new program will be the first original series developed specifically for U.S. audiences for CBS All Access, a cross-platform streaming service that brings viewers thousands of episodes from CBS’s current and past seasons on demand, plus the ability to stream their local CBS Television station live for $5.99 per month. CBS All Access already offers every episode of all previous “Star Trek” television series.

No reader here will be surprised by this, because it’s been inevitable since the dawn of the Web. Let’s face it: direct to consumers is the most efficient way to distribute programs, and this announcement will be just the beginning. Watch for major conflicts over this and what will ultimately become the preferred method by which the legacy networks speak to their viewers.

The broadcasting industry, however, is not going to be happy, and I expect its objections to be loud and often.

Online video discontent – a rant

Eleven years after Microsoft established the standard for pre-roll video advertising at 7-12 seconds, the online video “industry” is still stuck on the idea that broadcast standards should prevail. This is a sickness, my friends, and it’s killing opportunities for legacy media companies who cannot or will not accept that the Web is a different animal entirely. I am so angry about this that I could spit, so I apologize ahead of time for the rant.

My dander is up over a piece on Digiday (great website, BTW) offering quotes from its publishing conference in Miami this week. The issue is pre-roll advertising, and the article is The biggest hurdles publishers face in monetizing digital video:

What’s your biggest challenge in monetizing video? In short, too many agencies are still trying to recycle their 30-second TV ads for the desktop and mobile. There are viewability requirements to be satisfied. What works for the advertiser often results in a bad user experience.

Why, oh why is this still an issue for us?

Let’s review. Legacy media did NOT invent the Web. Microsoft, a tech company, was ahead of the game back in 2004 when MSN created its “Video 2” ad product and ventured forward in the field of online video. They may not have invented the pre-roll, but they studied it, pioneered it, and found in 2004 that 7-12 seconds was optimal length. Here’s the money quote from an article published in MediaDailyNews back then:

Hadley (Eric Hadley, director of marketing and advertising for MSN) said that ads on MSN Video 2 will appear “somewhat like TV ads,” except that only one 7–12-second video ad will appear for each piece of content. Hadley added that while consumers don’t necessarily need a broadband connection to view MSN video, the video capabilities are limited for narrowband users.

The day after I published my story on this, MediaDailyNews – at Microsoft’s request – altered the text of the article and changed that 7-12 seconds to 15-30 seconds. Why? Because that’s what Madison Avenue would go along with, and they controlled the money that would be spent via MSN Video 2. They wanted nothing to do with 7-12 seconds. I know this, because I investigated and spoke with Mr. Hadley and others, including those at MediaPost.

The point is that Madison Avenue is still calling the shots, while online legacy video companies are sinking fast, because people – as Microsoft knew 11 years ago – won’t sit still for anything beyond 7-12 seconds. Rather than accept reality, we chose to stick our fingers in the eyes of consumers, and now we’re upset because they’ve respond with ad blockers.

Here’s the thing. Corporations don’t have to change. They can do what they damned well please, including acting like fools in the face of compelling evidence of such behavior’s danger. If they do, however, they give up the right to whine – especially to the government – about matters that originate from this unwillingness to change, and that includes anything associated with the money tree they’re trying to protect.

I’ve begged people to open their eyes about this since even before 2004, but the industry would rather die than change, and that’s the truth!

End of rant.

Just sayin…

Dear people.

Once upon a time there was a writer who tried to present logical views of tomorrow in a rapidly-changing media universe. His words were rejected, and the reasons given were usually based in the idea that this prophet’s projections were a) not our business model b) too negative or c) my favorite: too out there (in other words, crazy). This was one of them: “Creating Spectrum Within Spectrum,” published in September of 2007.

I’m waiting (but not holding my breath) for an arrangement between all incumbents that allows them to move their competition between each other to a single platform on the Web, to operate as they wish within this specialized platform. Think of it as moving their existing spectrum to cyberspace and operating therein. If you want network television, for example, you go to the network television platform. If you want movies, you go to the movie section, and so forth. This could actually be done — and it would be useful for “consumers” — but it would require individual companies within these industries to work together, and that is very unlikely to happen.

For local media, the same thing could be done. If users wanted access to local news video, they would go to one place, where all local news video was available. This would create a form of spectrum within the whole, where individual players could duke it out just like they do in their own universe today. The problem, again, is that it would require separate companies to work together, and that’s highly problematic. The number one station would tell the others to go to hell, because they think they can a) do just fine on their own and b) it would “cheapen” them by putting their work on the same stage as their competitors.

Would this station prefer their work to stand alone as a blip in the overall spectrum of the Web or be a part of a bigger blip, a piece of spectrum designed specifically to better enable users to find their work? And this same number one station is stratching its head, trying to figure out how it can attract a larger audience.

For the answer to this dilemma, let’s go back downtown, to that piece of closed retail spectrum. As people moved to the suburbs, the retail world understood that it had to be where the people were. It could not expect the people to come to them.

And so the suburban shopping mall was created, and what is a mall but a group of competitors banded together for the convenience of shoppers? Would the number one department store refuse to anchor the mall, because its chief competitor was on the other end? Of course not!

Fast forward to today, where my friend Harry Jessell of TVNewsCheck and NetNewsCheck fame published an article: TV News Groups To Offer Local News App.

“In the ideal world, we aspire for it to be an iconic destination for people who care about local news,” says Louis Gump, the CEO who developed similar news apps for CNN and The Weather Channel.

“You can see multiple stations potentially in the area where you live and you can also get content from other places you care about, either because you are from there or you have friends who live there.”

…The charter station groups insure a large initial footprint for the service. Collectively, they operate 112 news-producing stations in 84 markets, including eight of the Top 10 and 17 of the Top 25. There will be multiple stations in 21 of the markets.

That’s just for starters. NewsON intends to sign on other stations or “affiliates” to stretch the footprint across the entire nation. “I would be ecstatic to see one station out of every market. We would like to serve everybody in the U.S. with content that it relevant to them. That a big audacious goal.

“I’m not assuming that every last station group will participate, but I want them to know that everybody is welcome to participate in some form or fashion.”

And so, once again, the writer rests his case. How do you judge a prophet? If the things he says come to pass.

Just sayin…