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ISSUE 2 / JANUARY 2010
IN THIS ISSUE

Insight Out

Just Evolving? This Feels Different.
Everything evolves.  From the simplest organism to the most complex, the laws of nature dictate that eventually everything evolves to a higher form.  In the world of media and communications, evolution -- that is, change -- has been a true constant.  How often in our world has the common refrain been “the pace of change today is incredible?”  In any industry driven by technology the rate of change has been accelerating exponentially.  The last several years have been no exception . . . but this feels different.

We may be on the precipice of a seismic shift in our business; a big enough shift that it may be difficult to recognize the business when all the dust has finally settled.  Social forces are colliding with technological advancement in the media sector to drive new dynamics in consumer and corporate behavior.   Newspapers are scrambling to reinvent themselves.  The iPod has changed the way music is consumed.  Televisions have become flatter and smarter.  Bundled (triple play) service is the norm in cable and satellite.  Telcos are also in the video business.  The mobile phone is quickly becoming a centerpiece of all communications.  Programming is available anytime, anywhere and on just about any device, or soon will be.  Movies have gone 3D.  There’s Hulu, YouTube, Pandora and the iPhone.  PC, TV, phone – this time it really does appear they will converge.  The Internet is profoundly changing the game.

In the midst of all these changes the central players have been bobbing and weaving, looking to take advantage of the new dynamics or at least prevent premature decline.  Content owners and major distributors are battling it out over who brings more value to the party and how each should be fairly compensated.  This part of the game appears to be changing as well, and it will further define the new balance of power and ultimate survivors.  Add to the mix the president’s Broadband Plan, and questions it has spurred over how the nation’s spectrum can be most efficiently used, and what you have is perhaps the fuzziest picture (pardon the shameless TV reference) that has existed in the media business in decades.  The technologies are changing as are the dynamics of the supply chain.

At this point you’re probably saying, “tell me something I don’t already know.”  Obviously the challenge for all of us is to try and make sense of all of this change; to try and predict where it will all fall out.  No doubt this is easier said than done.  Where is the business of media headed?  Who will drive future growth?  In the absence of clear cut answers the key is to keep searching for valid clues.  Happily, there are places you can look for clues . . . and happily, the NAB Show is one of them.  No, I am not suggesting you will find all the answers there, but the NAB Show has always been about trend-spotting.  It is a perfect barometer of what’s changing and where all the players are placing their bets.  And we’re working hard to try and keep the show ahead of the curve; we’ve introduced Destination Broadband to create a home for the players driving the online video boom; we’ve continued to develop our Content Central initiative to bring major content developers and innovators to the mix; and we keep striving to build new audiences with specialized programming, like our Military & Government Summit. 

So in addition to approaching your participation in the NAB Show as a business development experience, don’t forget to approach it as a learning experience.  And don’t think of the NAB Show the way it used to be.  Don’t think of it in terms of one media platform; or one particular audience.  Think of it in terms of a new paradigm.  Think of it as broader-casting – the next generation of content and content distributors, not tied to a specific platform or content type.  It’s film, it’s broadcast, it’s cable and satellite, it’s online and mobile video, it’s film, it’s post-production, it’s corporate video, it’s military and government video, it’s church production . . . and more.  It is a show for the next evolution of media and communications.  It is a show that can and should reflect how your business is changing.  And if it that seems strange, that’s because we are moving through a time of unprecedented change.  This time it is different, and we’re all going to have to get used to looking at each other a bit differently.   


Brand Basics

You Can't Tweet Passion
Here’s one for Mr. Webster: Social Suicide — going out of business while relying on Facebook, Twitter, blogs, mass email and other forms of social media to sell yourself, your products or your services. Don’t get me wrong, these are all highly successful marketing tools when used correctly, but they are no substitute for a solid, in-person sale and close.

The future of competitive business is in relationship building and meeting potential customers’ evolving needs. Smart providers have already shifted their focus from traditional brand equity to “customer equity,” and it takes passion to pull this off. Sure, you can promote pre-show using all the powerful social media platforms you can get your hands on, but understand that these impersonal transactions are not a substitute for you and your best sales team onsite.

Electronic communications are as critiqued as they are admired. Today’s nearly-too-fast-to-understand technological advances have resulted in more productivity, but less passion. If you want to sell me, unplug and let’s get face-to-face. Instead of “friending” me or my company, stand directly in front of me and listen to my needs. Hear my problems and then offer your solutions. Yes, I’m very interested in hearing what you have to say — but I’m equally interested in getting to know you as a potential partner.

In my 24 years of marketing I’ve yet to meet with a company that has described their brand as impassionate. The passion you have for your products or services is one telling feature of a solid, mutually beneficial future business partner or provider. If you’re passionate about what you do it will show through.

I’ll be at the show this year, just one of the more than 55,000 potential buyers that could stroll into your exhibit space. And like most of my attendee peers, I’ll probably ask a question or present you with my problem. Before you direct me to your latest online demonstration on ‘YouTube,’ understand that it’s really ‘You’ that I’m interested in at that very moment. Show me that passion is part of your brand.


Article prepared by:  Don Schaaf, CEO, Don Schaaf & Friends
Don Schaaf heads up ds+f, a brand and marketing consultancy headquartered in Washington, DC. The firm counts Fortune 1000 companies and leading associations as clients.


Industry Trends

Consumer Mobile Platform Growth Driven by Video and Non-Voice Applications
Media companies, publishers, advertisers, agencies and brand managers all are struggling with their approaches to most effectively leverage consumer mobile platforms. On the media side, key issues include finding viable business models; understanding the mobile ecosystem well enough to make informed decisions regarding content, revenue models, technologies, services, partners and market opportunities. On the advertising side, brand managers, agencies and small and medium business (SMB) operators are trying to be smart with their media plans and spending allocations among multiple media platforms to drive the purchase funnel. Making the mobile platform even more challenging in the consumer environment is the fast pace of evolution not just in technologies but also in how consumers and businesses are adapting to the mobile environment.
BIA/Kelsey has conducted three waves of “Mobile Market View” (“MMW”) which is a consumer study of U.S. adult mobile phone users in the fall of 2007, 2008 and the latest results released in November 2009. One of the key emerging trends we see in the latest research is a solid consumer movement toward using the mobile platform for non-voice communications including search, text messages, email, video, social networking and mobile web browsing.  We see fast growth continuing in adoption of smart phones (29% of consumers now have smart phones) and data packages (37% of mobile users now have data plans).

Based on consumer trends, we see revenue growth for content, search, directory, ad networks and of course mobile service providers. BIA/Kelsey sees the fastest revenue growth occurring in local search and mobile video services. The high trajectory revenue growth model will be advertising but we also see subscription and content on demand services as strong components of mobile revenue mix.

For advertisers, agencies and brand managers, this growing use of mobile has significant implications for their media strategies. From 2007 to 2009, consumers have essentially doubled their use of the mobile platform for non-voice communications. This represents a fundamental and rapid shift in media use which needs to be considered in determining the appropriate mix and spending levels among local media platforms. Media companies that do not currently offer a differentiated mobile advertising option increasingly will find it difficult to satisfy advertisers drawn to mobile’s ability to drive brand metrics such as increased awareness of advertising campaigns and messaging. Ad messaging can include not just search and mobile web but also video as we see nearly a fifth of mobile consumers have received or sent videos each month.

The mobile platform is becoming integrated into consumer habits in a more pervasive and sticky manner than any other medium in history. It is fast becoming a mission critical part of the media industry for publishers and advertisers.

Article prepared by Rick Ducey, Ph.D., Chief Strategy Officer, BIA/Kelsey
BIA/Kelsey advises companies in the local media space through Research, Continuous Advisory Services, Consulting and Valuation Services and Conferences.


Social Media

Myth: Social media is Facebook and Twitter
Truth: Social media is web forums, e-mail lists, video, photo sharing, wikis, social networking and social bookmarking.

Many people falsely believe that 'social media' is defined by websites such as Facebook, LinkedIn and Twitter. Social media certainly includes these social networking services but also encompass other content channels.  Wikipedia defines social media as "media which are formed mainly by the public as a group, in a social way, rather than media produced by journalists, editors and media conglomerates."

Consumer generated content can be found in Internet forums such as Creative Cow, Yahoo! Groups e-mail lists, blogs, podcasts, YouTube and vimeo videos, photo sharing services such as Flickr, wikis, and social bookmarking websites like Delicious, Digg and StumbleUpon. Rather than broadcasting messages, social media outlets engage prospects and attendees while building relationships. In the new communications paradigm and shifting landscape, consumers create their own value through the use of social media. Some companies harness this activity and turn passionate customers into a public relations bonanza while others misstep in their approach and become negative case studies. 

Social media efforts should be managed by a stakeholder or someone with a vested interest in your product or service! Utilize all networking vehicles available but maintain a seamless approach so that conversations and relationships are woven together. Grow your relationships through social media by participating in conversations while listening. Let prospects and attendees help define your presence while driving traffic to 2010 NAB Show!

Article by: Mitch Arnowitz, Managing Director, Tuvel Communications
Tuvel Communications is an online communications firm that helps clients reach and engage customers by tapping into the power of the Internet.  Tuvel was contracted by NAB in 2009 to engage the production/post community and drive attendance to the NAB Show.  In 2010, our plans include the broadband and broadcast communities as well as inviting participation from our exhibiting companies.  For more information, contact Jessica Sheridan at jsheridan@nab.org.

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Global Q&A

The NAB Show is part of the Department of Commerce’s International Buyer Program.  Every year, the Commercial Service recruits more than 70 delegations through U.S. embassies abroad.  Leading the 2010 Columbian delegation will be Gabriel Ramjas, Commercial Specialist at the U.S. Embassy in Bogota. This Q&A highlights opportunities for exhibitors looking to reach this market. 

Q:  How many and what types of Colombian companies have you recruited for the 2010 NAB Show?  What kinds of products are they looking to buy?

A: We’re still early in the recruiting process for the 2010 show, but we brought over 90 entrepreneurs to this years’ show, and are expecting a good participation for the 2010 delegation.  Once again, our delegation will likely consist of broadcasting companies, telecom manufacturers, etc., and they will be looking for the latest technology solutions, including:  Antennas for Radio and TV stations, Broadcasting Automation, Cameras, Converters, Data Transmission, Digital Video, General Supplier of Equipment and Services for Cable TV, Management Software, Microphones, Microwave Systems, Monitors, Editing Systems, Professional Lightning, Reception and Transmission Equipment, and Satellite Operators among others.

Q:  Why should U.S. firms look at selling to Colombia—what makes the country a good market for U.S. companies looking to do business?

A: The broadcasting industry is very strong in Colombia. Also, there are many content producers and are always seeking state-of-the-art products for journalism, films, videos and soap operas. 

Q:  Do U.S. audio-visual and broadcasting products have any type of competitive edge over products from other countries?   What perceptions do your delegation members have about these types of products from the U.S.?

A: The U.S. offers high-quality broadcasting products that are in high demand; thus the perception is that U.S. audio-visual and broadcasting products are top-of-the line.

Q:  What are some tips for U.S. businesses looking to do business in Colombia? 

A: The business culture is largely based upon personal relationships. Companies will need a strong presence and must invest time in developing relationships. One of the best ways to enter the Brazilian market is by attending a local trade show.

Although some companies import directly from foreign manufacturers without local representation, in most cases the presence of a local agent or distributor can be very helpful. As in other countries, the selection of an agent requires careful consideration.

Q:  What are some benefits to U.S. businesses and foreign buyers in having your delegation at the show?

A:  All the participants are looking for new products / technologies,  and a trade show is the best place to see what is coming up for the sector.  The U.S. companies may do direct sales at the show or establish an initial contact with members of the delegation.

The U.S. Commercial Service, the trade promotion unit of Commerce’s International Trade Administration (ITA), has a network of offices in more than 100 U.S. cities and in American embassies and consulates in nearly 80 countries. Last year, the U.S. Commercial Service helped facilitate more than 12,000 export successes worth nearly $70 billion in sales, supporting jobs across the country.


Partner Spotlight

At the NAB Show, 3D@Home will host a 3D broadcast session, 3D Overview Forum, and partner the 3D Pavilion on the exhibit floor.

The 3D@Home Consortium is helping to speed the adoption of 3D technology into home entertainment media platforms. With members from all levels of the 3D supply chain, including, broadcast, transmission, component and display, members are utilizing the forum for defining user requirements, staying abreast of the latest standards activities and as a bulletin board for product announcements, demos and content development.


What's New in 2010?


Bringing the tips of the editing suite to the middle of the show floor action, the Post Pit brings together users, rock stars and creators of the most savvy and dynamic post-production software available.  During the day, post-production geniuses take the stage to give hot and exclusive tips, while a night, no matter your platform of choice, you can join together with fellow pros for a uniting reception.

In association with:    

Broader-casting Conference
As dozens of new technology trends touch the entire content ecosystem – from creation to consumption, across multiple platforms, broadcast and commercial applications; this conference gathers leading media executives, content creators and technicians for an in-depth examination of the intersection of creativity, technology and developing business models.

Three programming streams drill down into specific areas:

The Business of Media Track offers keynotes, topic-driven panels and case studies devoted to uncovering the strategies and business of digital media.

The Creative Track provides a sampling of in-depth curriculums provided by NAB Show partners and is specially designed for talented professionals from the entertainment industry.

The Technology Track covers most recent developments in standards in technologies driving the broadcast entertainment and information media industries with a focus on IPTV and broadband.