Monday, January 8, 2007

When Worlds Collide

Merrill Lynch reports that VOD and DVD rentals are headed for a death match. As reported earlier today in Merrill Lynch analyst Jessica Reif Cohen says that VOD is coming into its own, offering better quality films and gaining a foothold in consumer homes with the wider adoption of digital. VOD releases are now timed closer to theatrical release windows, leaving less time alone for DVDs on rental shelves. The two big winners: Comcast, the country's leading provider of VOD, epxected to have 40% of VOD subscribers by 2011 and to capture 40-50% of total VOD revenue (projected to be $2.8 billion) at that time; and, the studios who have not fared well by rentals over the last few years. Rental revenues will rise 10% in the next few years, due to VOD.

Funky Media

Crain's New York Business reports that poor local radio and television revenue figures for 2006 have left broadcasters "glad that 2006 is over."

Unfortunately, 2007 isn't looking much better. Television insiders are predicting a low single-digit drop in ad billings this year as the Internet continues to steal advertisers.

Stay tuned....

Good News, Bad News

The good news, according to Forrester Research is that mobile consumers are beginning to adopt other services, creating audiences for mobile marketing. The bad news is that 79% of consumers find the idea of mobile ads annoying.

As reported in the Boston Globe....

To avoid the perception of mobile spam, marketers must work with the unique elements of the mobile channel itself and the relevance of their message," Forrester Research principal analyst Christine Spivey Overby said in a statement. "In contrast to other channels, mobile is highly integrated into people's daily activities and physical environment. This means marketers can embrace the real-world connections with relevant location-based services and campaigns that tie mobile and on-premise advertising."

One Nation Under a Groove

At the risk of losing whatever credibility I may have, I suggest you check out Bootsy Collins. Bootsy helped to redefine the James Brown sound ... Do you promise to funk, the whole funk?