Ged Carroll

Blog

  • Pepsi cola + more news

    Pepsi cola

    PepsiCo Gives Pepsi-Cola a Renewed Marketing Push – WSJ.com – You just can’t go dark on brands and expect them to hold their value (paywall). At a corporate level PepsiCo had tried to focus more on functional / healthy foods and so had under invested in Pepsi cola as a brand. Market share depends on market penetration and relative share of voice so keeping a steady investment in Pepsi cola would have made more sense, even if the ‘social good’ points aren’t earned. By comparison, Pepsi cola main competitor

    Ideas

    Phys Ed: The Science of Toning Shoes – NYTimes.com – is it about whether they work, or encourage people to exercise?

    Innovation

    Did Microsoft steal the Kinect? – Hack a Day – or is it like the light bulb which had about 8 inventors at the same time

    Nice try, Amazon: ‘One-click’ payment too obvious to patent • The Register

    TECHNOLOGY REPORT » Artificial Intelligence Pioneer Marvin Minsky on the current state of AI Research – a high tech research version of the ‘if you have a hammer, every problem looks like a nail’

    Japan

    Japan’s attention to detail is all in the delivery | The Japan Times Online – since security is no longer guaranteed, fun is a key decider in roles

    London

    Afternoon Tea – Japanese tourists love it apparently

    Luxury

    Prada Woos Young Chinese With Sister-Brand Miu Miu – WSJ

    Only In China: Paper Gucci Insert Causes Vogue China Buying Frenzy « Jing Daily – shows the power of the brand, however does this dilute the brand for purchasers?

    Watches Are Rediscovered by the Cellphone Generation – NYTimes.com – an interesting article. Watches aren’t only about what information they convey to the wearer, but also what they say to other people. I remember reading an article about stainless steel Seiko analogue watches being popular with Japanese job hunters who wanted to convey that they were punctual

    Security

    Microsoft admits Patriot Act can access EU-based cloud data | ZDNet – Can Microsoft guarantee that EU-stored data, held in EU based datacenters, will not leave the European Economic Area under any circumstances — even under a request by the Patriot Act? – This screws US technology sales in a number of areas

    Software

    Why Microsoft’s ‘single ecosystem’ for PCs and tablets carries huge risks | guardian.co.uk – unified user experience just isn’t going to cut it across the different user contexts

    Judge finds HTC guilty of infringing two Apple patents; could mean trouble for Android

    Amazon’s Appstore problems run deep: a developer speaks out | ExtremeTech – interesting that Amazon has had problems

    Telecoms

    I, Cringely » The enemy of my enemy – Bob Cringely on Google’s next likely move after losing the Nortel patent portfolio to an alliance of its enemies – RIM and Ericsson together put up $1.1 billion with Ericsson getting a fully paid-up license to the portfolio while RIM, as a Canadian company like Nortel, gets a paid-up license plus possibly some carry forward operating losses from Nortel, which has plenty of such losses to spare. For RIM the deal might actually have a net zero cost after tax savings, which the Canadian business press hasn’t yet figured out. Microsoft and Sony put up another $1 billion. There is a reportedly a side deal for about $400 million with EMC that has the storage company walking with sole ownership of an unspecified subset of the Nortel patents. Finally Apple put up $2 billion for outright ownership of Nortel’s Long Term Evolution (4G) patents as well as another package of patents supposedly intended to hobble Android.

  • Idea Man by Paul Allen

    Self-described ‘Idea Man‘ Paul Allen was the technical foil to Bill Gates’ when he founded Microsoft. Much of the Microsoft story is the story of Bill Gates – partly due to the way the company’s PR machine built Gates up as a software superman. The wheels came off the wagon with the Judge Jackson trial video testimonial. Allen dropped out of the story despite being instrumental in many of the key early products; instead he became known as a local billionaire who liked to jam with rock star friends and owned some local sports teams. Now he is trying to reinsert himself carefully in Microsoft’s story with Idea Man.

    Gates is now re-inventing himself has a modern-day Rockerfeller through charitable donations, trying to redefine his place in history as a convicted monopolist. With this change, Allen becomes even less significant. A cynical person may describe this book as Paul Allen’s attempt to write himself back into history, but without the Gates stigma. This view was reinforced by the books launch occurring round about the same time that Allen took legal action against many of the most successful technology companies for alleged patent violations.

    A student of Microsoft’s history would recognised the flawed human portrait of Bill Gates who is portrayed  as argumentative, ruthless, driven determined and petty. So in many respects Allen doesn’t add much to the Gates canon; Allen acts as an apologist for Gates in many respects being exceptionally tolerant of his faults; a co-founder equivalent of Stockholm Syndrome. Ballmer comes across as being a more decent human being, yet Allen’s accurate but unnecessary visceration of Microsoft’s performance feels as if it is aimed more towards liquidating Ballmer’s historic legacy.

    What I didn’t get from the book was the sense of Allen the person, what is he really like? What drives him? What are his demons? In this respect, Allen is absent from his own memoirs and the book comes across as two-dimensional because of it.

    There are sections on his relationships with famous musicians and sportstars, but it didn’t mean that much to me so I can’t comment beyond saying  that I didn’t find it that engaging.

    If you are going to read any book that touches on Microsoft and the PC era; I would instead recommend Robert X. Cringely’s Accidental Empires or Jennifer Edstrom (daughter of Waggener Edstrom’s Pam Edstrom) and Martin Eller’s Barbarians Led By Bill Gates.

  • News Of The World

    I was getting ready to give my presentation at the CIPR the other evening when the news broke on Twitter about the News of The World. There was a sense (which I personally believe to be wrong) that this was going to result in a revolution that would:

    • Take down News Corporation
    • Radically change the standards of journalism

    I want to hear a revolution out there

    When Karl Marx wrote his book The Communist Manifesto, he would have anticipated that the class struggle would have gone into revolution in the United Kingdom. At that time, the country was pioneering the industrial revolution and many members of society had every reason to be dissatisfied with their lot in life. Instead his writings inspired revolutions in the mainly agrarian societies of Russia and China. Whilst, the UK provides foreigners like Marx and Engel with the freedom to express their views in a manner that wouldn’t have been tolerated in their native Germany, the country also had an effective state security mechanism in the Special Branch of the police. But writers and thinkers have speculated that there is also something ‘counter revolutionary’ in the UK psyche.

    Probably the closest we came to seeing it was the economic induced Jarrow march and the industrial disputes of the 1970s; which were as much a kick back against useless management teams in companies and a lack of investment, as they were a rising up of the proletariat.

    Social rather than political movements didn’t get much further; the summer of love brought the modern fractured nuclear family. The backlash of punk ushered in the yuppie and the ravers of 1988 that were a reaction to the grim social and cultural reality of Thatcherite Britain with a bit of weekend hedonism turned into the controlling Big Society of today. All of these events felt as if the world was going to be changed; but it didn’t in any meaningful way. The UK hasn’t had a media industry equivalent of the Arab spring.

    Most of the noise around this is happening on Twitter and in the media of the middle classes rather than the heartland of the News of The World. They don’t speak for the minicab driver, the hairdresser, the plumber or the joiner; who are more likely to be worried about the latest antics of Cheryl Cole and where are they going to find the same quality of sports reporting in another Sunday paper?

    News Corporation resilience

    Rupert Murdoch has experienced many ups and downs as he built News Corporation and whilst the current News Of The World scandal is no doubt upsetting it isn’t the closest his business has come to going under. In terms of the organisation as a whole, the boiler plate on News Corporation press releases says everything that needs to be said:

    News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of March 31, 2011 of approximately US$60 billion and total annual revenues of approximately US$33 billion. News Corporation is a diversified global media company with operations in six industry segments: cable network programming; filmed entertainment; television; direct broadcast satellite television; publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America.

    As a business it exists pretty much as they present it, it is not a paper tiger like the investment banks or Enron and the current event is considered in the wider world to be a UK issue, so there is little likelihood of contagion to his other properties worldwide in terms of lasting reputational damage.

    Regroup, rebrand

    As the News Of The World shut down, rumours swirled around about The Sun going to a seven-day production. There is a strong business case for them to do this and the current phone hacking scandal debate just provided a great catalyst. Moving to a seven-day newspaper provides a number of opportunities for News International:

    • The Sun’s brand has been stronger and it simplifies the company’s brand portfolio; money is only required to support one brand
    • It allows News International to remove duplication, particularly at senior levels within the papers, so reducing the wage bill whilst increasing profitability

    Unlike the Wapping strikes of the 1980s News Of The World journalists being laid off would have little sympathy from the public at large; I doubt even the NUJ would be likely to back them in the face of the current scandal. This provides News International with a unique opportunity to rebrand and regroup around it’s flagship Sun brand. I think that it’s no coincidence that Rebekah Brooks said that News International would seek to ensure that as many of the journalists as possible were re-employed as soon as possible.

    Confluence of interest

    The proposed media revolution exposes too many interests to chaos and the system like a knitted jumper is too intertwined: pull one thread and the entire sweater would unravel leaving something useless behind. It is in no one’s long term interest to tug on that thread.

    In 1992, with the re-election of a Conservative government backed by News International’s media The Sun ran a headline ‘It’s The Sun Wot Won It’. Tony Blair worked hard to build a relationship with Rupert Murdoch and one of the factors that was seen to help him win power was the tacit approval of the News International papers. Like the political power masters of old, News International can move a bigger block of voters than the Guardian Media Trust papers or the Trinity Mirror Group.

    Secondly, for every story that gets run, there are ten papers that don’t see the light of day. What would happen if the media was threatened?

    Ethics: the thin end of the wedge

    There is speculation that the phone hacking tactics that News of The World employees and contractors have been accused of has also been practiced at other media publications and that evidence will come to light of contagion of dishonesty. A measure of how true that is, was the desire for British journalists to work on the US equivalent of the UK red tops because of their unique no-holds barred approach.

    • What about payments for stories? Do these induce whistle-blowing for profit, or computer hacking?
    • What about dumpster-diving?
    • Or getting people drunk to then interrogate them?
    • What about the use of blackmail to persuade sources to cooperate which was one of the allegations made in the Max Moseley case?
    • How ethical is if for the government or organisations to leak stories?
    • Will journalists now need to be completely transparent about ‘sources close to the matter’? This would mean that journalists couldn’t pad their articles out with speculation, but it also means that PR teams would have to restrict access to spokespeople as briefings couldn’t be done to provide context or background without attribution

    The interface between society and the media would fall apart with the media left out in the cold about hard news stories. The social norming around these issues would be shut down and the sausage factory would be put back under wraps before lasting damage is done or the ramifications in business, politics and even the arts would ripple through every aspect of society. It is an imperfect system as it is, but one that works for most of the people most of the time.

    The media marketplace

    The Romans used to talk about ‘bread and circuses’ to keep a population happy and there is still an element of truth in that phrase today. The News of The World and their peers fill that gap. A media that falls to deliver to that need, fails to sell to a large proportion of the UK population. Whilst lip service may be paid to high standards, journalists will have to deliver what ever is required to keep the printing presses running and the website online. Despite the moral stance of O2 amongst others in pulling advertising from The News of The World; advertisers generally follow the audience in terms of their media spend. More media related commentary can be found here.

    More reading

    Did Twitter kill a newspaper? Of course not – GigaOM

    Phone Hacking Scandal live updates – The Guardian

    Why did Murdoch close the News Of The World? Daily View – BBC News blog

    Message from Rebekah Brooks to all News International staff

    Statement from Rupert Murdoch, Chairman and CEO, News Corporation regarding the phone hacking allegations

  • MySpace

    This has taken longer to write than I would have liked since TalkTalk Business still has me living the analogue lifestyle at home. I wanted to put finger to keyboard because much of the coverage around MySpace acquistion focused on:

    • The difference between what News Corporation paid for the social network and what it then sold the assets for
    • The decline in MySpace as a social network, the sale was another milestone for the MySpace story to be repeated

    There was less attention paid to the Specific Media side of the story and what would they be likely to do? It’s probably easier filter this out by what they won’t do.

    • Revitalise MySpace as a social network. That dog won’t hunt: like a restaurant that is no longer fashionable or a nightclub that has lost its buzz – lightning won’t strike twice. You would be better off starting again, simply because you could get rid of a lot negative brand perceptions, rather than trying to get people to come back. This is pretty much the same fate for ideas around going back to being a music-marketing brand
    • Change the game. This is the path that Friendster is taking with its new Malaysian owners, who are keeping customers network login in details and their social graph, but positioning the site towards social gaming. Existing social network members had the opportunity to download photographs and other details from their soon to disappear profiles. MySpace could try that but it would need some social gaming content like Farmville…

    Do nothing but monetise it. I personally think that this is the most attractive option. At the time of writing this post, Demand Media has a market value of about 1.1 billion US dollars. But it has that valuation based on the growth potential in its content factory model, one which according to Business Insider isn’t making sufficient money. What MySpace allows Specific Media to do is flip the Demand Media model on its head.

    It is primarily a sale of people’s content to which advertising can be put against. Consumers generally leave MySpace profiles dormant. Drop them an email, talk about new features and at the bottom of it an opt-out option to make their blog posts public and ‘Hey presto’ instant content farm.

    What people didn’t realise about MySpace was that it wasn’t only music marketing and Tila Tequila pictures, but professional content from the likes of the CIPD and soccer mom’s photo albums. So there is a diverse range of material to be monetised. Well worth the 35 million US dollars that Specific Media has paid out for the moribund social network.

    Sure it’s cheap advertising, but it could be put against relevant content and it wouldn’t even have to split the profits with the content providers in the way Google has to. More related content can be found here.

  • Invisible birdcage + more news

    Invisible birdcage

    China’s Internet: The Invisible Birdcage | Sinocism – interesting article on the business factors driving the Chinese internet. Linguistic and cultural difference has created a vibrant domestic internet scene. The invisible birdcage in question is the Chinese eco-system of sites and services that mean China’s netizens need not stray far. Inside the invisible birdcage we see an active, lively online environment full of the kind of social activities one would expect on western platforms. The invisible birdcage confounds expectations of a censored internet experience.

    Feds to Launch Probe of Google – WSJ.com – but is this good for consumers, or just companies like Microsoft who have consistently been lobbying Washington and Brussels? The ironic aspect of this is that social search could finally shake things up

    High-tech venture capitalists to Congress: The PROTECT IP Act is bad for America – Boing Boing – which is why Silicon Roundabout turning to Silicon Britain is a pipe dream

    Luxury

    Chinese Media Giants In War Of Words Over Luxury Consumption « Jing Daily – interesting that this is on CCTV around about the same time as discussions on reducing luxury goods tax. Rui Chenggang is the Cheryl Cole of Chinese newsreaders

    FT.com – No longer a Cinderfella – fashion as a real-world attention economy. Luxury brands having to step up and provide decent men’s products

    From Alley To Airport: Beijing Urban Brand NLGX « Jing Daily

    Boutique Supermarkets Flourishing In China, But Is The Demand There? « Jing Daily

    Breaking Down China’s Booming Luxury Watch Market « Jing Daily

    In China, Women Begin Splurging on Luxury Items – WSJ.com – interesting change in purchasing power, much more egalitarian than North America or Europe

    Business of Luxury summit: Amex discovers a new luxury consumer | FT.com – gen-x new fashion buyers: electronics, home furnishings, holidays

    Media

    “Brands are over-obsessed with fans,” says Facebook adsales chief | FT.com

    Online

    Geosocial networking: The secret sexism of social media | The Economist – this feels a bit lazy. Whilst I agree that security and competition plays a role; its also probably because this stuff is early adopter in nature and that tends to skew male anyway

    Underpinnings of the Internet Shift – NYTimes.com – interesting the way governments are subverting the freedoms of citizens in developed countries. This is probably the most lasting legacy of Wikipedia, the wisdom of mobs and the lobbyists of the media industries who see UGC as akin to communism

    Retailing

    Jack Ma: we’ve got this covered | FT.com – interesting how the Baby Taobaos are specialising to combat competition, if Steve Ballmer had done this with Microsoft; they’d have been dangerous

    Security

    Hackers publish claimed Tony Blair contacts | FT.com

    Danish police proposal: Ban anonymous Internet use – Boing Boing

    Software

    Nokia’s Stephen Elop is still over MeeGo, even if the N9 is a hit – Engadget – this isn’t strategy its dogma

    Technology

    Gartner follows IDC’s PC sales cut forecast for 2011 and sees change ahead | guardian.co.uk