16 October 2009

Sirius XM: Looking Back 5 Years

From the Motley Fool


Five years may not seem like much when compared to the nearly 25 years that Bob Edwards served as a morning-show host on National Public Radio. But a lot has changed for Sirius XM Radio (Nasdaq: SIRI) since he arrived.

Edwards was a pioneer. He migrated from terrestrial radio before bigger media icons Howard Stern, Oprah Winfrey, and Martha Stewart inked their big satellite-radio deals. Now Sirius is celebrating the fifth anniversary of Bob Edwards' arrival on satellite radio this month. The distinguished radio newsman joined XM shortly after it hit the 2-million-member milestone. Sirius was considerably smaller at the time. In fact, Sirius and XM together accounted for just 3 million subscribers.

Times have certainly changed. Even though this has been a rough year for subscriber acquisition and retention rates, Sirius XM still manages to claim 18.4 million subscribers. It's hard to think of any other premium subscriber-based industry that has grown sixfold over the past five years. Comcast (Nasdaq: CMCSA) and DirecTV (Nasdaq: DTV) have broader audiences, but they definitely weren't as small as Sirius XM was in 2004.

Today's subscribers are also paying more for access, and that's important when you consider the scalability of the satellite-radio model and Sirius XM's need to beef up margins to command the market's respect.

After all, margins and profitability are crucial for any business. Five years ago, Netflix (Nasdaq: NFLX) had 2.2 million subscribers. Its user base has grown quickly, but it's a far cry from Sirius XM's audience. One of the reasons Netflix is a market darling while Sirius XM trades at a fraction of its 2004 price is that a lack of cash flow has forced Sirius XM into printing new shares to keep creditors away.

Now that Sirius XM has gotten its financial act in order, its hope is that the stock gains that failed to materialize during its subscriber-growth heyday can show up and help create a positive-cash-flow story. It would be ironic to see Sirius XM's stock rise as its user base flattens out or possibly even declines, but that's what the market needs to see before it buys into the satellite-radio model.

Enjoy the birthday cake, Edwards. Let's see how rich dessert tastes in five more years.

15 October 2009

Sirius XM: Beam Me Up, SkyDock

From Sirius Buzz


The XM SkyDock App is ready for download on iTunes. SkyDock, which turns an iPhone or iPod Touch into a virtual satellite radio receiver when docked, has been highly anticipated for some time. The new app represents the second official full satellite radio app for Sirius XM on iTunes. Apps for specific content have been produced in the past.

The company smartly calls the new app “XM SkyDock”. This should avoid customer confusion, and ensure that potential subscribers download the proper app when they are seeking out the great content offered by Sirius XM.

Satellite Radio subscribers hoping to get the most value and content should opt for the “Best of Sirius” on their subscription, thus enabling all that XM has to offer PLUS Howard Stern, and the NFL. With Baseball in the playoffs, and football ramping up, this is perhaps the best sports content solution available to consumers.

Interestingly, this app, combined with the many other apps and features represented on an iPhone could become a one stop fits all solution even for those with a factory installed satellite radio receiver in their car. No longer is your subscription tied to the dashboard, or a portable device that serves only one purpose.

The XM SkyDock app will not work without attaching a subscription to a SkyDock. SkyDocks are now available through various retailers such as TSS-Radio. sers as a free download from the iTunes store.

California to Ban Energy-Guzzling . . . TV's?

From the L.A. Times

Reporting from Sacramento - The influential lobby group Consumer Electronics Assn. is fighting what appears to be a losing battle to dissuade California regulators from passing the nation's first ban on energy-hungry big-screen televisions.

On Tuesday, executives and consultants for the Arlington, Va., trade group asked members of the California Energy Commission to instead let consumers use their wallets to decide whether they want to buy the most energy-saving new models of liquid-crystal display and plasma high-definition TVs.

"Voluntary efforts are succeeding without regulations," said Doug Johnson, the association's senior director for technology policy. Too much government interference could hamstring industry innovation and prove expensive to manufacturers and consumers, he warned.

But those pleas didn't appear to elicit much support from commissioners at a public hearing on the proposed rules that would set maximum energy-consumption standards for televisions to be phased in over two years beginning in January 2011. A vote could come as early as Nov. 4.

The association's views weren't shared by everyone in the TV business. Representatives of some TV makers, including top-seller Vizio Inc. of Irvine, said they would have little trouble complying with tighter state standards without substantially increasing prices.
Switching to more-efficient TVs could have an estimated net benefit to the state of $8.1 billion, the commission staff reported.

"We're comfortable with our ability to meet the proposed levels and implementation dates," said Kenneth R. Lowe, Vizio's co-founder and vice president.

Last month, the commission formally unveiled its proposal to require manufacturers to limit television energy consumption in a way that has been done with refrigerators, air conditioners and dozens of other products since the 1970s.

"We would not propose TV efficiency standards if we thought there was any evidence in the record that they will hurt the economy," said Commissioner Julia Levin, who has been in charge of the two-year rule-making procedure. "This will actually save consumers money and help the California economy grow and create new clean, sustainable jobs."

Tightening efficiency ratings by using new technology and materials should result in "zero increase in cost to consumers," said Harinder Singh, an Energy Commission staffer on the TV regulation project.

California's estimated 35 million TVs and related electronic devices account for about 10% of all household electricity consumption, the Energy Commission staff reported. But manufacturers quickly are coming up with new technologies that are making even 50-inch-screen models much more economical to operate.

New features, such as light-emitting diodes that consume tiny amounts of power, special reflective films and sensors that automatically adjust TV brightness to a room's viewing conditions, are driving down electricity consumption, experts said.

The payoff could be big for TV owners, said Ken Rider, a commission staff engineer. Average first-year savings from reduced electricity use would be an estimated $30 per set and $912 million statewide, he said.

If all TVs met state standards, Rider added, California could avoid the $600-million cost of building a natural-gas-fired power plant. Switching to more-efficient TVs could have an estimated net benefit to the state of $8.1 billion, the commission staff reported.

Consumer Electronics Assn. officials disputed that figure, arguing that it was based on out-of-date numbers that fail to account for recent industry innovations. "With voluntary compliance, manufacturers can meet the targets over time, managing the cost impact, yet not in any way impeding innovation," said Seth Greenstein, an association consultant.

CBS Enters 42nd Year Of '60 Minutes'

From L.A. Times

As the news show begins its 42nd season (the first since the passing of creator Don Hewitt), it's hot again. They're still using the same recipe, but now there are more cooks in the kitchen.

"60 Minutes" executive producer Jeff Fager, left, goes over a story with
correspondent Scott Pelley.
(Carolyn Cole / Los Angeles Times)



Change creeps slowly through the ninth-floor newsroom of the West 57th Street high-rise that houses "60 Minutes," CBS' storied Sunday evening newsmagazine. For decades, the office assignments on Correspondent's Row, a bank of glass-walled rooms facing the Hudson River, were sacrosanct, with the biggest space next to the executive producer belonging to Mike Wallace.

But Wallace's office has been largely empty since the 91-year-old became correspondent emeritus three years ago. Last month, executive producer Jeff Fager quietly decided that it was time for Steve Kroft, the longest serving of the full-time correspondents, to inherit the space.

"This is hallowed ground," said Kroft on a recent afternoon, still surrounded by boxes, the walls empty save for a row of gleaming Emmys lining a high shelf.

What may seem like minor office shuffling is freighted with the symbolism of a generational shift at "60 Minutes," which begins its 42nd season tonight. While Fager stresses that the broadcast is an ensemble effort, he acknowledged that Kroft, a 64-year-old, squared-jawed reporter who got his start sending dispatches from Vietnam, emerged in the last year as the face of the program, in part because of his reports on the financial crisis and his much-watched interviews with candidate and President Obama. "I don't think anyone can tell a story better," Fager said.

Kroft's rising profile is not the only change on the broadcast, the most-watched news program on TV and arguably the only one that still commands a mass audience on a regular basis. For all of its endurance, "60 Minutes" has quietly entered a transitional period. This will be the first season without creator Don Hewitt, who passed away last month at age 86 and had remained a lively presence in the newsroom, even after his retirement in 2004.

And the ranks of correspondents have grown with a batch of younger contributors, bringing the number of reporters to 10 -- almost the size of a football team. The influx troubles the program's veterans, who fret that the program's identity is being blurred.

"I think that the public gets a little confused sometimes," said correspondent Lesley Stahl, sitting in her tidy office down the hall from Kroft.

That's only amped up the famously intense competition among the staff. "We are all trying to find the most compelling stories on Earth, and I think that's something that drives the energy of the broadcast," said correspondent Scott Pelley.

The addition of new contributors is an acknowledgment that there's a limit to "60 Minutes' " reach. For the last decade, the median age of viewers has hovered around 60. (That's a year younger than that of the three evening newscasts, but several years older than other network newsmagazines, according to Nielsen.) One of the show's most recognizable figures is 91-year-old essayist Andy Rooney.

"The cultivation of this new cast of characters is an attempt to lure a younger audience," said Richard Campbell, director of Miami University's journalism program and the author of "60 Minutes and the News: A Mythology for Middle America." The risk, he added, is a dilution of the brand once emblematized by the likes of Wallace and the late Ed Bradley.

The show has long been CBS News' most prestigious property, and last season it managed a rare feat, reversing a nearly decade-long trend of ratings declines. The audience grew to an average of 14.3 million people, up 10% from the year before and the biggest in seven years. The increase came as most other newscasts lost audience, including both "CBS Evening News" and ABC's "World News." Viewers came not only for Kroft's Obama interviews but Katie Couric's exclusive with Capt. Chesley B. “Sully” Sullenberger and Pelley's sit-down with Federal Reserve Chairman Ben Bernanke.

The boost in ratings was particularly sweet for a program that has stayed true to the format that Hewitt hit on four decades ago: a weekly menu of meaty interviews, exhaustive investigative pieces and whimsical features. One of the few big changes was last season's conversion to high definition. In a modern flourish, producers also added a boom camera in the studio that zooms in on the correspondents as they introduce their pieces, seated on a stool instead of a chair. "Whatever the ethos of this broadcast was, it still is, and I think that's the most important thing," said 77-year-old correspondent Morley Safer, who joined the program in 1970, puffing on a cigarette behind his desk.

Competitors such as NBC's "Dateline" and ABC's "20/20," originally modeled after "60 Minutes," now largely pursue crime stories and celebrity interviews. (ABC recently trumpeted Barbara Walters' sit-down with La Toya Jackson.) They average about half the audience of "60 Minutes."

Not all its competitors enjoy the consistent time slot or the lift "60 Minutes" gets from its NFL game lead-in. But above all, it's the program's fervent embrace of hard news that has made it singular -- and the most sought-after platform in television.

Case in point: In early February, weeks after Obama took office, the White House told "60 Minutes" that the president might be available for another sit-down with Kroft. But producers didn't pursue it, because the broadcast already had a big story for that Sunday: Couric's exclusive with Sullenberger. (Kroft interviewed Obama a month later.)

Now the pressure is on "60 Minutes" to keep delivering those kind of must-watch hours, without the benefit of a historic presidential election. "More than ever, people are looking for us to have a big story on Sunday," Fager said. "With that, you create certain expectations."

On a recent cloudy afternoon, Fager sat in his corner office, anxiously mulling which pieces should be featured in the season-premiere episode. The no-nonsense producer with closely cropped hair scanned a run-down that included a story by Kroft about the earning potential of dead celebrities. For all the program's success last season, he worries about it losing its perch.

"I fear it all the time," he said. "I know that we have a huge amount of support from CBS, but you can't ever take that for granted. We're in the business of drawing audience. You're only as good as your next broadcast."

He was leaning toward leading with an exclusive with Gen. Stanley A. McChrystal, the top U.S. and NATO commander in Afghanistan, whose classified assessment about the need for more troops was recently leaked. The piece is a classic "60 Minutes" get: an in-depth profile with a powerful figure, timed for maximum impact. (The McChrystal interview is scheduled for tonight, along with Kroft's "Working Stiffs" story and Safer's interview with Irving Picard, the government-appointed liquidator of Bernard Madoff's assets.)

Fager, who worked as a producer for Kroft and Safer before serving as executive producer of "CBS Evening News" and "60 Minutes II," said he plans to make Afghanistan a major focus on the program this season, eager to challenge the conventional wisdom that the public has tired of the war. Several correspondents spent time in the battlefield this summer, but the McChrystal piece was done by David Martin, the network's national security correspondent, part of Fager's effort to broaden the number of faces on the program by drawing from the entire news division. .

This season, he brought aboard chief national correspondent Byron Pitts, who joins chief foreign affairs correspondent Lara Logan and CNN anchor Anderson Cooper as the program's new generation of contributors. (Pitts is 48, Logan is 38 and Cooper is 42.) "They add a spark to the broadcast," Fager said. "And it's nice to have someone in every age group. That's important -- we have to be thinking about what's happening in the years to come."

Couric, 52, and PBS interviewer Charlie Rose, 67, also contribute to the show, along with the program's regular correspondents: Kroft, Stahl, Pelley, Safer and Bob Simon. (Couric would like to do five or six pieces a year, but Fager said her busy schedule as anchor of "CBS Evening News" makes it difficult. On a white board outside his office listing the staff's current story assignments, she was down for just three.)

Some are unsettled by the burgeoning ranks.

"I think you can go too far in the variety of people," Safer said. "I think to some extent, not just the die-hards, the people who view it pretty often, like the comfort of knowing the people who are reporting."

Kroft was blunter. "I don't like it," he said. "I think the show ought to have a set cast."

Pitts, the newest arrival, said he understands that anxiety. "It seems to me that part of the historic greatness of '60 Minutes' was you have that core of outstanding journalists that the American people can rely on and depend on, and I think that formula has been successful," he said. "But just like every great news organization, you need some arms in the bullpen."

Fager said he's not concerned that the broadcast is overbooked, noting that about 80% of the 100 stories produced each season are by the five main correspondents. Still, the expanded staff has intensified the already-fierce competition to get on the air. Such battles could descend into shouting matches during Hewitt's time; nowadays, the atmosphere is less volatile. The mood in the 75-person newsroom is one of brisk efficiency. "There's very, very little blood," Pelley said. "It's a friendly competition, but each and every one of us really likes to win."

Stahl said she's relieved that the internal jockeying is no longer accompanied by "screaming and yelling" that marked Hewitt's tenure. "Jeff runs a calmer shop," she said, adding that he "is doing a sensational job. It's never easy to come after the genius."

That's not to say Hewitt isn't missed. Last season, he made a point of popping in the office every Monday to congratulate the staff on the previous night's broadcast. "There really is a little bit of him in all of us," said Fager. "I think the reason we're able to maintain our consistency is because he taught us so well."

14 October 2009

New Advertising Study: Custom Content And New Media King In 2010

Reuters

A new study released today by King Fish Media finds that a structural change in the world of media is driving marketers to rethink the business of reaching customers and prospects. The
King Fish Media 2009 Survey on Marketing, Media and Measurement, conducted in partnership with HubSpot, Junta42 and the Upshot Institute, reveals that where traditional advertising was once a foregone conclusion and a focal point of all marketing efforts, companies are now revising old formulas and creating new ones.

Above all, their ability to use new media channels to reach audiences directly and to measure the value of their response and interaction is advancing a trend: companies are abandoning other's media platforms in favor of creating their own original channels and content for natural website optimization.

"Marketers have been aware of the effectiveness of building relationships and trust with content since long before the Internet," said Gordon Plutsky, Director of Marketing and Research, King Fish. "Technological change has rapidly increased media channel options and the patterns of information consumption among consumers. More and more marketers are abandoning old media -- and traditional advertising -- to venture out on their own with original content."

Among the key findings of the King Fish Media 2009 Survey on Marketing, Media and Measurement:

-- 86% of respondents' companies are currently creating or plan to create original content for their customers and prospects in the coming year.
-- 81% believe that brands and companies can create content that is as engaging and informative as content created by media companies.
-- 74% feel that original content and media are most effective for generating marketing ROI.
-- 70% are spending more today to reach customers and prospects directly with branded content than they did three years ago.

Methodology

The survey was created by King Fish Media and hosted online from June 15, 2009 to August 25, 2009. King Fish Media and its three co-sponsors -- Hubspot, Junta42 and the Upshot Institute -- attracted participants through a number of different media, including newsletter blasts, multiple blog posts, twitter, Facebook, LinkedIn and personal email invitations. The survey was completed by 230 respondents primarily split between corporate management and marketing/sales management.

Peter Griffin: Spokescartoon For Windows 7

Story from AdAge

To sell people on the merits of its latest operating system, Windows 7, Microsoft has employed good old-fashioned PR and the saccharine sweetness of young Kylie. Now it's counting on Hollywood for a big push.

The software giant has signed a deal with Fox to sponsor a variety show produced by "Family Guy" creator Seth MacFarlane, voice of the family guy himself, Peter Griffin, and actress Alex Borstein, who plays wife Lois Griffin. The show will air Nov. 8 without commercial interruption -- because it will instead feature Windows-branded programming throughout the program.

The branded-entertainment deal is a collaboration between Microsoft, the brand-friendly Mr. MacFarlane and Crispin, Porter & Bogusky, the ad agency responsible for the multimillion-dollar worldwide Windows 7 push. Microsoft's media agency, Universal McCann, was also involved in brokering the deal. Mr. MacFarlane and Crispin have worked together before on "Cavalcade of Comedy," Mr. MacFarlane's online-video series that ran on YouTube and Google's AdSense network and was sponsored by Crispin client Burger King.

The Microsoft-sponsored variety show, whose working title is "Family Guy Presents: Seth & Alex's Almost Live Comedy Show," is a mix of live-action "Family Guy" musical performances, animated shorts and celebrity guest appearances, and is part of an all-Seth MacFarlane night on Fox. The software company wouldn't elaborate on what exactly the Microsoft integrations would look like or possible scenarios in which Windows 7 could play a starring role, but said Crispin's copywriter and art director on the Windows campaign were working closely with Mr. MacFarlane and Ms. Borstein.

"You'll see us deeply integrated into the content ... you'll hear a lot about how Windows 7 can help you simplify your PC -- it's simple, fast and easy to use," said Gayle Troberman, general manager of consumer engagement and advertising at Microsoft. She went on: "Think about metaphors and examples we might use, talking about how simple things are. We'll be evoking the cast of 'Family Guy' in some interesting ways that integrate the product messages."

Ms. Troberman, who headed branded entertainment at Microsoft's MSN before assuming her current post, said Microsoft turned to Hollywood for content integration and programming for the launch of the search engine Bing and saw "some phenomenal results," which is why it's employing the same strategy for Windows 7. Specifically, she said, they noticed that branded entertainment helped amplify traditional-media buys.

"Consumers exposed to both branded entertainment and advertising have more positive reactions," she said. Some of the branded-entertainment elements will extend to the web as well. But working an operating system into content isn't as easy as, say, talking about an energy drink or even a search engine.

"As much as [an operating system is] a product you interact with every day, it's not something most people can put a definition around," she said. "What we've found is seeing is really believing. ... That's a lot of what you'll see us do in the advertising and the branded integration ... give people a chance to see the product and interact with the product."

The MacFarlane sponsorship is part of a broader deal with the News corp.-owned network through its Fox ONE multiplatform sales group and also includes 20th Century Fox Television, Fox Licensing and Merchandising, Fox Sports, FX, Fox Sports on MSN and Hulu. Another part of the Fox deal has Microsoft working with its licensing division for a 12-week college tour that will let students try out Windows 7 and receive custom content, such as outdoor movie nights hosted by "Family Guy" characters Stewie and Brian.

The push around Windows 7, which officially launches October 22, has largely fueled by TV and will also lean heavily on digital. So far, the reaction to the marketing has been mixed. It's been boosted by largely positive reviews in the marketplace, to which Microsoft has smartly been calling people's attention in TV spots. But a five-minute web video promoting in-house, Tupperware-style Windows 7 launch parties has for the past couple weeks been the butt of many a joke, even making it onto Ad Age's Viral Video Chart twice.

Ms. Troberman wouldn't comment on the size of the deal but said the overall Windows 7 push is one of the "largest consumer-advertising investments the company has made."