14 October 2009

Microsoft Sells Razorfish

From eWeek

Microsoft has finalized the sale of its Razorfish digital-advertising subsidiary to French advertising company Publicis Groupe SA. Under the terms of the closing, announced on Oct. 14, Publicis Groupe will pay Microsoft some $286.8 million and 6.5 million shares of stock.

In return, Microsoft will gain a 3.3 percent stake in Publicis Groupe.

According to a joint statement released on the Publicis Groupe Website, Razorfish “is the second largest interactive advertising agency (Ad Age) in the U.S. with approximately FY June 30, 2009 revenue of $380 million.” Previous clients have included Nortel, Disney, McDonald’s and Mercedes-Benz.

First acquired by Microsoft as part of its $6 billion takeover of aQuantive in 2007, Razorfish was originally intended to bolster Redmond’s efforts in building a substantive online advertising platform. Other advertising and publishing tools acquired as part of the aQuantive deal included DrivePM, which matched ad campaigns to publisher inventory.

However, Microsoft’s search-and-advertising partnership with Yahoo, which will see the latter take over worldwide search-ad sales for both companies, may have transformed Razorfish into something of a corporate misfit. On Aug. 9, Microsoft announced that it would sell the division to Publicis Groupe for $530 million in cash and stock.

As originally laid out, that deal will give Microsoft access to Publicis Groupe clients and offer them display and search advertising "on favorable terms" for a five-year period.

"We are grateful for the contributions that Razorfish has made to our online advertising business since joining the company," Microsoft CEO Steve Ballmer said in an August statement announcing the deal. "We look forward to continuing to work with Razorfish as one of our agencies."

The original aQuantive deal came during a period in which Microsoft predicted it would purchase around 20 companies—ranging in size from $50 million to $1 billion—over a five-year period. The original hope was that Microsoft would be able to craft an advertising platform that would provide the company with a substantial revenue stream.

However, since 2007, a global economic recession and accompanying slump in PC sales has forced Microsoft to consolidate its holdings and re-focus its corporate strategy around certain key software lines, including the upcoming Windows 7 and Office 2010.

13 October 2009

EMI Deals With Music Streamer Grooveshark

From Media Memo

Well look at that: EMI Music Group, which had been working on a licensing deal with music start-up Grooveshark but ended up suing it instead, now has a licensing deal with Grooveshark after all.

This one isn’t a total shock, as EMI and Grooveshark had supposedly been close to a deal prior to the lawsuit. And it wouldn’t be the first time that a label sued a Web company: See Warner Music Group (WMG) and Imeem, as well as Universal Music Group and News Corp.’s (NWS) MySpace, among others.

No details on the deal from EMI or Florida-based Grooveshark, which offers free streaming music, a la MySpace Music, Imeem, Spotify and others. Unlike those services, though, Grooveshark doesn’t appear to have licensing deals with three of the big four labels and plays their music anyway. But with the exception of the EMI suit, it has remained unmolested. Interesting.



For the record, here’s the release:

Music streaming service Grooveshark signs deal with EMI Music and EMI Music Publishing Gainesville, FL–Today, digital music service Grooveshark.com announced it has entered into agreements with major label EMI Music and EMI Music Publishing that will give Grooveshark users access to content from EMI’s roster of current and legendary catalog artists and EMI Music Publishing’s songwriters. Grooveshark offers music fans the ability to stream songs for no fee from a vast catalog of music.

Fans can enjoy Grooveshark’s music without having to download client software or register. The basic service is free to fans and supported by visual advertising. Fans who opt for a $3 per month premium service can enjoy unlimited ad-free streaming music. The site was recently named the best way to listen to music on the web by Rolling Stone, and just surpassed one million registered users.


“EMI Music and EMI Music Publishing have collaborated with us to create a mutually sustainable deal which represents the future of digital music,” says Grooveshark CEO Sam Tarantino. “We will continue to deliver the best music service on the Internet to our users, and we will expand our capacity to strengthen fan-to-artist connections through our technology.”


“We think services like Grooveshark offer great music discovery options for fans,” said Mark Piibe, EMI Music’s Global Head of Digital Business Development. ”In turn, Grooveshark offers a new revenue stream for our artists and will help us learn more about how we can better connect different types of fans with artists.”

12 October 2009

Comcast Seeking Competition With ESPN

Story from the Wall Street Journal

Comcast Corp. executive Jeff Shell said at an industry conference in June that expanding the sports business at his cable networks was the "top of our list over the next five years."

If Comcast's bid to control NBC Universal succeeds, it would advance Mr. Shell's goal overnight, creating a potential new rival to Walt Disney Co.'s ESPN.

As the cable-TV giant and NBC Universal's parent, General Electric Co., work through details of a deal that would merge Comcast's cable networks with GE's NBC Universal, people close to the negotiations say the two companies see the creation of a combined sports business as a key benefit of a partnership.

The new company would marry Comcast's Versus and Golf Channel cable-sports networks and multiple regional sports networks with NBC Universal's broadcast-sports operation and rights to major sports events, including a Super Bowl and two Olympic games.

The talks seek to create a TV and movie company that would be 51% owned by Comcast, with GE holding the remainder. NBC Universal's current minority owner, Vivendi SA, would have its 20% stake bought out. Negotiations could still fall apart, but the merger appears to be the most likely outcome for NBC Universal, people familiar with the matter say.

Paired up with NBC, Comcast could get a bigger slice of a large sports TV market. Advertisers spent an estimated $10.6 billion for commercials in sports programming across U.S. broadcast networks, cable networks and local TV stations last year, out of total TV ad spending of about $68.4 billion, according to TNS Media Intelligence. Cable-sports channels raked in more than $9.2 billion of about $22.9 billion in basic-cable TV subscription fees for the year, according to estimates from SNL Kagan.

The expanded NBC Universal would combine both companies' rights to college football, hockey and golf. It would have NBC's rights to the Olympics in 2010 and 2012 and NFL games through 2013. A deal could also give NBC Sports access to cable subscription fees, which would put it in a better position to keep up with growing sports-rights costs.

Comcast's Versus and Golf Channel already receive about $400 million in yearly subscription fees, according to industry estimates. In addition, Comcast could try to push paid distribution for NBC's fledgling Universal Sports channel.

Among the possibilities for the combined company would be for Comcast to air football games simultaneously on multiple channels, with each offering different camera angles, a person familiar with the matter says. Comcast could also put large swaths of Olympics footage in its video-on-demand service, the person says.

"If this merger goes through, they become a much, much stronger competitor to ESPN. And they threaten to dominate CBS and Fox," says Neal H. Pilson, a sports-media consultant and former president of CBS Sports.

Spokesmen for ESPN and CBS both decline to comment. A spokesman for Fox says the company "has a big event sports strategy nationally, and we don't see that changing." Fox Sports and The Wall Street Journal are owned by News Corp.

ESPN is a dominant force in nationallytelevised sports that would be hard for Comcast to match, even with NBC Universal. Owned 80% by Disney and 20% by Hearst Corp., ESPN and its sister operation ABC Sports span seven TV outlets in the U.S. and hold the rights to air many baseball, football and basketball games.

While ESPN's ad revenue suffered in the recession, subscription-TV providers such as Comcast will pay approximately $5.8 billion to carry ESPN's U.S. networks this year, according to estimates from research firm SNL Kagan. If Comcast succeeds in building a stronger sports business, the company and other cable operators might gain better leverage when negotiating the fees they pay ESPN.

"To the extent that there are multiple places you can get big-time sports on a national basis, ESPN's growth in rates may be constrained," says Frank Hawkins, a media consultant and former NFL executive.

Mr. Shell, president of Comcast Programming Group, has pushed to expand his sports business. He has built up Comcast's regional sports networks. He has also focused on expanding Versus from niche sports like bull riding and the Tour de France to include professional hockey and college football.

Versus is in 75 million homes and averaged 125,000 viewers this year through Oct. 4, up 17% from a year earlier, according estimates from Nielsen Co. "We have a huge opportunity," Mr. Shell said of Versus at the June marketing conference in New York, to create "another sports brand in America," he said. Still, Versus's average number of viewers is less than a seventh of ESPN's, and just over a third of that on ESPN2.

Winning new sports rights would cost money on top of NBC Universal's already hefty commitments, including more than $600 million a year for its NFL games, and the $2 billion it has committed for the next two Olympics. Many packages of rights are already locked up for years.

But size could bring other advantages. College-sports conferences, in particular, want deals that cover multiple outlets to air more of their events. ESPN has been most able to do so, for instance, putting one game on ABC and another on ESPN2.

"It really gives you a substantial array of networks to throw into a package," Lee H. Berke, a TV-sports consultant, says of a potential union of NBC Sports and Comcast's sports networks.

11 October 2009

Social Media Switch-a-Roo



Story from the Wall Street Journal


Last summer, a Facebook page was launched in the name of MarkMonitor Inc., a company that specializes in helping businesses safeguard their reputations online. Only MarkMonitor didn't create the profile, making the company a victim of just the kind of fraud it helps clients stamp out.

"The page basically said MarkMonitor was a marketing and advertising company in Nigeria," recalls Frederick Felman, chief marketing officer of the real MarkMonitor, which is based in San Francisco.

Thanks to its own technology for identifying impostors on social media, MarkMonitor learned about the bogus profile within 24 hours of its appearance and quickly had it removed.

On social-media outlets like Twitter and Facebook, cyber criminals and pranksters are confusing consumers by creating fake profiles in companies' names. They're also reposting blog entries that companies put up on social-media sites and replacing the links they contain with ones to sites where they hope to scam users, sell them something or promote a venture of their own. At the same time, discussion boards and other user-generated forums on company Web sites are being infiltrated with posts linking to malicious content. Now, many businesses are fighting back by using new technology designed to detect and deter such tactics.

It's unclear just how widespread the problem has become. But Stephanie Giammarco, a partner at BDO Consulting, a risk advisory firm based in New York, says social-media sites are a natural target for cyber criminals since they're highly populated and users tend to expose a lot of personal information about themselves.

What's more, many of the outlets that cyber criminals previously relied on to con victims, such as email and copycat Web sites, have been exposed. "The old is getting blocked and this new social-media avenue can still be exploited," she says.

Kenton Olson, digital-media manager for the National Football League's Seattle Seahawks and Major League Soccer's Seattle Sounders Football Club, says people often used to change the links within the teams' blog entries on Twitter and Facebook when reposting them. The entries otherwise looked identical and the teams typically were identified as the original source of the information. Some of the changed links went to Web sites selling nonlicensed sports merchandise; others pointed to fans' personal photo galleries. "They [were] trying to use our brand to promote their own initiatives," Mr. Olson says.

Uniqueness Helps

The Seattle teams were using one of several free services that assign short URLs to Web links so that the links fit more easily in brief Twitter messages and other places online where space is limited. But the URLs provided by the service all started the same way, so there was no way for a reader to tell whether a link had been generated by the teams or by anyone else using the same service.

So the teams last month began using customized short URLs provided by Ez.com, a new service from Live Oak 360 Inc., a software firm based in Austin, Texas. Now, consumers who click on links that start with shwks.com or sndrs.com can trust that they're from the Seahawks or Sounders, respectively. Mr. Olson says he's spreading the word on Twitter and Facebook to let fans know they should click on links associated with the teams only if they start with the unique URLs.

Live Oak also sells a similar service called BudURL.com. As a bonus, the links both these services create can be tracked. Chris James, a social-media strategist for Advanced Micro Devices Inc., says this is helpful for determining which social-media outlets drive the most traffic to the semiconductor company's Web site and what time of day people click on them the most. While AMD has never seen the content it posts to social-media sites reposted with the links altered, Mr. James says, the company decided to invest in BudURL.com to be proactive.

Live Oak charges between $99 and $499 a month for access to Ez.com, depending on the number of unique domains a customer wants to use and the number of employees with accounts for the service. The fee for BudURL.com is $1,000 a month because the technology behind it is more complex.

Spam Trap

For companies that allow consumers to post content on their Web sites, software programs like Defensio from Websense Inc. detect entries that contain links a company wouldn't want its visitors following. "As soon as you accept user-generated comments on your Web site, you will get a lot of spam," says Carl Mercier, director of software development for Websense.

Praized Media Inc. of Montreal has been using Defensio for about two years, says Sylvain Carle, chief technology officer. The company develops and manages networking platforms for more than 50 company Web sites and publishers of online directories. Defensio notifies Praized Media whenever someone tries to post a suspicious link on a client's Web site, which Mr. Carle says is a common occurrence. "It gets trapped before it even gets published," he says.

Defensio costs $99 a month for organizations with less than 500 employees and $499 a month for those with more than 1,000 employees.

Impersonations Every Day

MarkMonitor, the brand-protection firm, scans social-media sites throughout the Web on a daily basis for unauthorized profiles in its clients' names, including ones with common misspellings and abbreviations. Whenever an impostor is identified, the company notifies the victim and helps it get the fake account removed. "At least one case of impersonation of a client is found daily," says Mr. Felman.

MarkMonitor also offers to create accounts on social-media sites for its clients, even if the companies don't intend to use them, to prevent impostors from hijacking their names. The company added both options a little over a year ago to its mix of services, which include defending against malicious software attacks, traffic-diversion schemes and other online threats, says Mr. Felman. MarkMonitor charges between $25,000 and $1 million a year, depending on the number of brands a company wants to protect, he says.

Companies also can search for unauthorized social-media accounts in their names on their own at no cost by going to KnowEm.com, a site owned by KnowEm LLC of Morristown, N.J. KnowEm also offers a range of paid services, including instructions for getting unauthorized accounts removed.

E-Mail No Longer King Of Communication


Story from the Wall Street Journal


Email has had a good run as king of communications. But its reign is over.

In its place, a new generation of services is starting to take hold—services like Twitter and Facebook and countless others vying for a piece of the new world. And just as email did more than a decade ago, this shift promises to profoundly rewrite the way we communicate—in ways we can only begin to imagine.

We all still use email, of course. But email was better suited to the way we used to use the Internet—logging off and on, checking our messages in bursts. Now, we are always connected, whether we are sitting at a desk or on a mobile phone. The always-on connection, in turn, has created a host of new ways to communicate that are much faster than email, and more fun.

Why wait for a response to an email when you get a quicker answer over instant messaging? Thanks to Facebook, some questions can be answered without asking them. You don't need to ask a friend whether she has left work, if she has updated her public "status" on the site telling the world so. Email, stuck in the era of attachments, seems boring compared to services like Google Wave, currently in test phase, which allows users to share photos by dragging and dropping them from a desktop into a Wave, and to enter comments in near real time.

Little wonder that while email continues to grow, other types of communication services are growing far faster. In August 2009, 276.9 million people used email across the U.S., several European countries, Australia and Brazil, according to Nielsen Co., up 21% from 229.2 million in August 2008. But the number of users on social-networking and other community sites jumped 31% to 301.5 million people.

"The whole idea of this email service isn't really quite as significant anymore when you can have many, many different types of messages and files and when you have this all on the same type of networks," says Alex Bochannek, curator at the Computer History Museum in Mountain View, Calif.

So, how will these new tools change the way we communicate? Let's start with the most obvious: They make our interactions that much faster.

Into the River

Years ago, we were frustrated if it took a few days for a letter to arrive. A couple of years ago, we'd complain about a half-hour delay in getting an email. Today, we gripe about it taking an extra few seconds for a text message to go through. In a few months, we may be complaining that our cellphones aren't automatically able to send messages to friends within a certain distance, letting them know we're nearby. (A number of services already do this.)

These new services also make communicating more frequent and informal—more like a blog comment or a throwaway aside, rather than a crafted email sent to one person. No need to spend time writing a long email to your half-dozen closest friends about how your vacation went. Now those friends, if they're interested, can watch it unfold in real time online. Instead of sending a few emails a week to a handful of friends, you can send dozens of messages a day to hundreds of people who know you, or just barely do.

Consider Twitter. The service allows users to send 140-character messages to people who have subscribed to see them, called followers. So instead of sending an email to friends announcing that you just got a new job, you can just tweet it for all the people who have chosen to "follow" you to see. You can create links to particular users in messages by entering @ followed by their user name or send private "direct messages" through the system by typing d and the user name.

Facebook is part of the trend, too. Users post status updates that show up in their friends' "streams." They can also post links to content and comment on it. No in-box required.

Dozens of other companies, from AOL and Yahoo Inc. to start-ups like Yammer Inc., are building products based on the same theme.

David Liu, an executive at AOL, calls it replacing the in-box with "a river that continues to flow as you dip into it."

But the speed and ease of communication cut both ways. While making communication more frequent, they can also make it less personal and intimate. Communicating is becoming so easy that the recipient knows how little time and thought was required of the sender. Yes, your half-dozen closest friends can read your vacation updates. But so can your 500 other "friends." And if you know all these people are reading your updates, you might say a lot less than you would otherwise.

Too Much Information

Another obvious downside to the constant stream: It's a constant stream.

That can make it harder to determine the importance of various messages. When people can more easily fire off all sorts of messages—from updates about their breakfast to questions about the evening's plans—being able to figure out which messages are truly important, or even which warrant a response, can be difficult. Information overload can lead some people to tune out messages altogether.

Such noise makes us even more dependent on technology to help us communicate. Without software to help filter and organize based on factors we deem relevant, we'd drown in the deluge.

Enter filtering. In email land, consumers can often get by with a few folders, if that. But in the land of the stream, some sort of more sophisticated filtering is a must.

On Facebook, you can choose to see updates only from certain people you add to certain lists. Twitter users have adopted the trend of "tagging" their tweets by topic. So people tweeting about a company may follow their tweet with the # symbol and the company name. A number of software programs filter Tweets by these tags, making it easier to follow a topic.

The combination of more public messages and tagging has cool search and discovery implications. In the old days, people shared photos over email. Now, they post them to Flickr and tag them with their location. That means users can, with little effort, search for an area, down to a street corner, and see photos of the place.

Tagging also is creating the potential for new social movements. Instead of trying to organize people over email, protesters can tweet their messages, tag them with the topic and have them discovered by others interested in the cause. Iranians used that technique to galvanize public opinion during their election protests earlier this year. It was a powerful example of what can happen when messages get unleashed.

Who Are You?

Perhaps the biggest change that these email successors bring is more of a public profile for users. In the email world, you are your name followed by a "dot-com." That's it. In the new messaging world, you have a higher profile, packed with data you want to share and possibly some you don't.

Such a public profile has its pluses and minuses. It can draw the people communicating closer, allowing them to exchange not only text but also all sorts of personal information, even facial cues. You know a lot about the person you are talking to, even before you've ever exchanged a single word.

Take, for example, Facebook. Message someone over the site and, depending on your privacy settings, he may be a click away from your photos and your entire profile, including news articles you have shared and pictures of that party you were at last night. The extra details can help you cut to the chase. If you see that I am in London, you don't need to ask me where I am. They can also make communication feel more personal, restoring some of the intimacy that social-network sites—and email, for that matter—have stripped away. If I have posted to the world that I am in a bad mood, you might try to cheer me up, or at least think twice about bothering me.

Email is trying to compete by helping users roll in more signals about themselves. Yahoo and Google Inc. have launched new profile services that connect to mail accounts. That means just by clicking on a contact, one can see whatever information she has chosen to share through her profile, from her hobbies to her high school.

But a dump of personal data can also turn off the people you are trying to communicate with. If I really just want to know what time the meeting is, I may not care that you have updated your status message to point people to photos of your kids.

Having your identity pegged to communication creates more data to manage and some blurry lines. What's fine for one sort of recipient to know about you may not be acceptable for another. While our growing digital footprints have made it easier for anyone to find personal information about anyone online if they go search for it, new communications tools are marrying that trail of information with the message, making it easier than ever for the recipient to uncover more details.

A Question of Time

Meanwhile, one more big question remains: Will the new services save time, or eat up even more of it?

Many of the companies pitching the services insist they will free up people.

Jeff Teper, vice president of Microsoft Corp.'s SharePoint division, which makes software that businesses use to collaborate, says in the past, employees received an email every time the status changed on a project they were working on, which led to hundreds of unnecessary emails a day. Now, thanks to SharePoint and other software that allows companies to direct those updates to flow through centralized sites that employees can check when they need to, those unnecessary emails are out of users' in-boxes.

"People were very dependent on email. They overused it," he says. "Now, people can use the right tool for the right task."

Perhaps. But there's another way to think about all this. You can argue that because we have more ways to send more messages, we spend more time doing it. That may make us more productive, but it may not. We get lured into wasting time, telling our bosses we are looking into something, instead of just doing it, for example. And we will no doubt waste time communicating stuff that isn't meaningful, maybe at the expense of more meaningful communication. Such as, say, talking to somebody in person.

09 October 2009

Monthly Billers Have Weathered The Market

From the Economist

Subscriptions have succoured media firms during the recession. That may not last

VIACOM, a media conglomerate based in New York, has an unusual response to the downturn: it is launching a television channel. This month Epix will begin showing films from Paramount and MGM, as well as original programmes. It may get off to a slow start, since it has not yet signed up many cable and satellite distributors. But its creation points to one of the media business’s few bright spots.

Having fallen steeply after the collapse of Lehman Brothers in September 2008, the shares of all the big American media companies have outperformed the market since March. But recession has struck some parts of the industry much harder than others, changing its shape. As a rule, media products that are sold in shops—CDs, DVDs and magazines—have suffered. Advertising is showing only tentative signs of recovery. The kind of media for which people pay a monthly bill, in contrast, has not only held up better but has in some instances prospered through the downturn.

Cable and satellite television was a good business going into the recession and is now triumphant. In the year to June 30th Britain’s BSkyB added more subscribers, obtained more revenue from each customer and reported more profit than the year before. Discovery Communications, which derives almost all of its revenue from cable, notched up a 13% increase in profits in the second quarter. In the past year the fortunes of big media groups have depended largely on the proportion of their revenues coming from pay television.

Cable networks obtain about half of their revenues from advertising and half from carriage fees paid by the firms that distribute their channels, which in turn get paid by subscribers. In the past year increases in carriage fees have outpaced inflation, offsetting weakness in advertising. At Time Warner’s cable networks, for example, advertising fell by $30m in the second quarter compared with a year earlier. Income from distribution rose by $144m. “People would sooner unplug their refrigerators than their cable boxes,” says Craig Moffett, an analyst at Sanford Bernstein.

As pay television has soared and just about everything else has fallen, even the most diversified conglomerates’ accounts have been transformed (see chart). News Corporation’s cable channels are worth more than broadcast television, film and newspapers put together. Although an advertising recovery will rebalance such firms somewhat, the underlying trend is clear. Media firms are investing in pay-television markets in Latin America, eastern Europe and Asia, which can be expected to grow. The number of channels in emerging markets is rising so fast it is actually boosting the firms that own the satellites (see article). Viewers and creative verve are drifting steadily from broadcast to cable networks. On October 5th Disney appointed Rich Ross, who ran its cable channels worldwide, to head its film studio—an acknowledgment of their success in producing lucrative new content.


A steady stream

The strength of subscription television has encouraged media firms to try charging for other products. Disney recently began selling subscriptions to its large online library of children’s books. Viacom’s chief executive, Philippe Dauman, said last month that the company was exploring ways of getting people to subscribe to its popular online games based on characters such as Dora the Explorer. The firm’s controlling shareholder, Sumner Redstone, once observed that content is king. But at the moment, subscription is king.

There has also been much talk of creating new subscription models for newspapers and magazines. As far as their online offerings go, this is still mostly talk. The boldest conglomerate is News Corporation, which sells online subscriptions to the Wall Street Journal and will begin charging for the newspaper’s smart-phone applications. This week the firm announced plans to charge for membership of rewards schemes run by Britain’s Times and Sunday Times. More quietly, but just as profoundly, many newspapers and magazines are stepping up their home-delivery efforts as newsstand sales falter.

The best model in media has its limits, however. The fact that nearly all newspaper websites remain free suggests how hard it is to charge for content that has been commoditised. Successful subscription models for music have proved elusive for a similar reason. Spotify, a music-streaming service created by Swedish programmers that has grown at an astonishing rate, is trying to move from dependence on advertising to subscriptions. Whether it succeeds will depend partly on the record labels. At the moment they view such upstarts as a handy way of weaning customers from illegal file-sharing websites. If they come to view them as competition for CD sales and digital downloads, the music-streaming sites are in trouble.

Even the mighty pay-television business is showing signs of strain. Cable and satellite operators have tolerated the shrinking margins that come with higher carriage fees so far, but will not do so for ever. Yet they may find it hard to pass price increases on to customers. Mr Moffett reckons the finances of the poorest 40% of American households have been so stretched by the recession that they have little money left for entertainment. Unemployment in California has reached 12%; in Michigan it stands at 15%. It may be that people will have to unplug both their refrigerators and their cable boxes.

Then there is the looming threat of the internet, with its tendency to disintermediate content from carrier. Consumers can already obtain many broadcast-television programmes online, and the worry is that they will eventually drop their cable and satellite services. Jeff Bewkes, the head of Time Warner, is leading a charge to prevent that. He envisages an authentication system that could be used to restrict access to some online content to those who subscribe to multi-channel television. The fear of “cord-cutting” may also underlie Comcast’s ambitious and, given the dismal history of media mergers, risky attempt to acquire a controlling stake in NBC Universal, a content company now owned by General Electric and Vivendi.

For a glimpse of a brighter future look at Denmark, where the biggest cable company not only allows subscribers to watch some television on their computers but also allows non-subscribers to pay a monthly fee to watch some of its programmes online. YouSee offers 18 channels at present, including biggish ones like CNBC Europe and Nickelodeon, and the number is rising. So far there is no evidence that this is cannibalising YouSee’s cable business, according to Anders Blauenfeldt, its head of product development. Anyway, he says, “It is better to cannibalise yourself than to lose customers.”