Media Mix | Media Hunter

The Economics of Netflix: How to Make a $100 Million Show

There has been a lot of buzz about Netflix in the last year, even here in Australia where the video streaming service hasn’t officially launched (yet is watched by many who find ways around the geo-blocking).

Award-winning new programs like House of Cards, Orange is the New Black and Lilyhammer, created and aired on Netflix have transformed the one-time DVD mailing service into a new media force to be reckoned with, causing yet more anxiety amongst TV networks and subscription television and acting as a pointer to what could soon trouble the major movie studios.

Netflix is now so popular that it gobbles up a third of peak internet traffic in North America.

So how does this brave new world of streaming content work and how does Netflix make money? This new infographic explains the economics of Netflix. Read the rest of this entry »

Why Cory Bernardi is like Miley Cyrus and how you’re helping them

South Australian Liberal Senator has taken a note out of the Miley Cyrus (insert any other publicity whore here) book of self promotion and the interwebs have rewarded him in spades.

Let us compare….

Miley Cyrus, according to most judges of musical taste, is a fairly talentless girl who has cashed in big time on none-too-subtle gimmicks to take her fame to another level.

Miley Cyrus hard at twerk

Miley Cyrus hard at twerk

Miley gets on stage at some globally televised music awards and “twerks” her arse all over another fairly talentless performer (yes you Robin Thicke) and creates outrage and news around the world.

Oh…and she had a new album coming out next week. A bit of outrage and controversy certainly helps album sales.

Miley had another trick up what turned out to be her non-existent sleeve when she released a video for the album’s lead single. Licking hammers and riding naked on a wrecking ball.

More outrage. More publicity. The interwebs go bananas. Miley sells more records than her talent deserves.

Miley Cyrus doesn’t care that most of us think she’s a talentless tramp using cheap tricks for publicity. Her audience is teenage girls who want to feel rebellious. They love that their parents are outraged.

Then there’s Cory Bernadi.

Cory is best known for his extreme right wing views and 19th Century values. His political career appears to be limited to saying things that even his own (conservative) party don’t agree with. They make him sit on the back benches. Even conservative PM Tony Abbott won’t give him an important role.

Cory Bernardi (centre) equates homosexuality with beastiality

Cory Bernardi (centre) also likes to get naked for the cameras

Cory does a few interviews in which he describes abortion as a “death industry” and equates “non-traditional families” with “criminality among boys and promiscuity among girls”. He also has an “obsession” with gay people and bestiality.

(Understandably) outrage erupts and the interwebs go nuts. Cory trends on Twitter for several days and the media spread the word.

Oh….and Cory has a new book out. Nothing like a bit of outrage and controversy to shift units.

Once again the interwebs helped out by flooding the book’s Amazon reviews with hilarious comments and the media duly reported it.

I’m not sure how the book sales are going but there is no doubt that Cory has achieved more publicity and column inches than his talent and position deserves.

Cory Bernardi doesn’t care that most of us think he is an irrelevant twat pedaling intolerance and 19th Century attitudes. His audience is ultra-conservative nutters who think the Tea Party in the USA is a  good idea. They love that open-minded people are outraged.

The thing is, Miley and Cory are trolls.

Trolls need attention to stay “relevant” because their talent is not enough to do the job. The internet is the perfect platform for trolls because its fast, fluid and viral. Social networks are the perfect echo chamber for trolls to suddenly seem bigger than they actually are.

DON’T FEED THE TROLLS!!!! Without you they are irrelevant.

PwC predicts advertising market to lift, led by online

Source: Adnews

The PwC Entertainment and Media Outlook 2013-2017 has predicted the overall ad market to lift at an compound annual growth rate (CAGR) of 2.7% to $13.18 billion.

Pay TV and digital will track the highest growth as online advertising is set to overtake free-to-air TV as the highest revenue-generating sector. Newspapers and consumer magazines will continue their downwards trajectory.

(click on each sector headline to read full details from Adnews)

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Massive shift in advertising spending continues as social networks stake their claim

It is hardly breaking news to hear that there has been a massive shift in advertising spending in the last decade. Many traditional media outlets, especially directories, newspapers and magazines were affected early by the rise of online. Others, such as free-to-air TV, subscription TV and radio have seen more gradual erosion of their bases, but erosion nonetheless.

The problem for most traditional media is that the shift is far from over. In fact, its still only early days and the social networks are just getting warmed up in the advertising market.

The following chart is compiled by Borrell Associates and displays the ongoing migration to online advertising in the USA at the expense of many traditional media. There are some sizable falls in ad spend for some media here…and that’s just from last year to this year.

The initial growth of online advertising was in the areas of display (basically replicating magazine and press advertising) and the early online classifieds.

The launch of Google’s Adwords service saw search engines become major players in the advertising market. And they were different, a lot different. Suddenly advertising could be more contextual, more relevant, more cost-effective and much more measurable. And they were self-serve. Anyone could suddenly build and launch their own online advertising campaign in minutes. As a result, Google now owns 44% of the global online adverting market.

But now the social networks are ready to stake their claims.

Last year Facebook had 3.1% of the global online advertising market, despite never having been in a hurry to build their advertising business. Now they’re starting to take it seriously. Anyone who has used the Facebook Ads Manager tool will know it is very easy and intuitive compared to Google Adwords. Facebook’s Promoted Posts feature is even easier and can deliver great micro campaigns in the click of a button. Their new Graph Search feature is a clear signal that Facebook is about to step up even more in the advertising market.

Then there is Linkedin, quietly bubbling along with another easy-to-use advertising product aimed squarely at the employment market. Last year advertising on Linkedin accounted for 25% of their revenue, and that’s before they opened their API to marketers at the end of 2012. That will grow substantially in the next few years.

Now Twitter is muscling in on the action. The new Twitter Advertising API is a way for companies to automate more of their ad spending. The initial list of advertising partners isn’t very long, but is expected to grow quickly. The API, combined with Twitter’s self-serve ad platform, will allow advertisers to promote tweets based on what is trending and where the activity is.

In effect Twitter is heading in a very similar direction to Facebook. Google+ is presumably not far behind.

For social networks, in which the content generated by users is almost indistinguishable from the advertising offering tools that let advertisers automate their spending based on hard data will be far more lucrative than another generic banner ad.

The rapid rise of mobile usage is also another reason the social networks will grab even greater slices of the advertising pie. Their “integrated” advertising solutions are well suited to mobile display, whereas the display advertising of other media are not.

The shift away from traditional to online advertising will only continue to grow in the next few years as the social networks refine their offerings and mobile becomes our main screen.

Take your mark, get set…..Tweet! The social media Olympics

Usain Bolt. Image via

When the Olympics start in London on Friday, 27 July they will be forever known as the social media Olympics. At the last Olympics in Beijing in 2008 any news from there may have found its way onto the Internet via blog posts and the occasional video being posted and re-posted on YouTube.

Since then the explosive growth of Facebook, Twitter and Pinterest has changed the media landscape dramatically and this time around the impact of social media on the Olympics will be huge. In the past people may have sent text messages, e-mails or commented on forums and chat rooms about the most interesting aspects of the Olympics. Can you imagine the volume of traffic that will be going through all the social media sites as soon as an event has taken place?

As soon as Usain Bolt crosses the finishing line there will be thousands if not millions of posts on Facebook, Twitter and Pinterest. People will be posting on Facebook to get interaction from their friends about the race. Twitter will be buzzing with all sorts of comments, jokes and anecdotes about what just took place. Pinterest will be awash with folk pinning a whole variety of photos that have been lifted from news sites all around the world.

What kind of impact do you think that the social media Olympics will have on newspapers? By the time a journalist has written their piece, the editor has chosen the relevant photos and the rest of the newspaper printed and delivered, there will be very little in the newspaper that has not already been seen, discussed and dissected by the vast majority of the civilised world. The impact of social media on the Olympics could render newspaper coverage superfluous.

Many people will be watching the Olympics not on TV but on iPads and various other mobile devices. Every single bit of news that comes out of the Olympics will spread through the social media like wildfire. It is going to be very difficult for the media to compete against the more popular social media sites. It will be interesting to see the increase in the volume of traffic that is generated by the social media Olympics.

A lot of the athletes themselves will be posting comments on Facebook and Twitter and it is here that most people will go, rather than tune into TV to see any interviews. People now expect news to be delivered immediately and are impatient. If you want to see results, comments, quotes or photos of any of the events it is most likely you will go to one of the social media sites for instant gratification.

2012 will be the first true social media Olympics. The data that emerges over the next few weeks will be telling. Take your mark, get set…..Tweet!

The numbers behind the paywall: The Australian reveals digital subscription take-up

by [me]

In October 2011 the executives at News Ltd announced that “the ten year free trial is over” and they were launching digital subscriptions for some of their publications beginning with The Australian.

Naturally, they were plenty of cynics prepared to predict the pay wall gambit would fail, and I certainly had my doubts. Its still only very early days and long term success is far from assured but News Ltd have just released their first round of figures for digital subscription. They appear to be very encouraging.

Here’s the announcement:

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Rethinking media consumption for improved productivity

originally uploaded by

Ok, I’ll admit it….I’m a little bit addicted to social networks. Using Twitter, Facebook, LinkedIn and Google+ is an important part of my work, but it probably fair to say that over the course of a day I am exceeding what is needed to effectively get the job done. When you add the many different blogs and websites I check daily for great content and industry news, I am beginning to consume an amazing amount of media.

And then it becomes a default habit, something that can easily fill the day and lead you down endless clickable rabbit holes.

I’m sure I’m not alone. These days we’re consuming more media than anytime in history. Its accessible 24/7 and sometimes it seems that we are too. The lines between work and play have become so blurred that we tend to suffer an inevitable burnout.

This year I am totally rethinking how I consume media with the aim to improve my productivity and put some more space between work and play. The approach I am adopting is based on dedicated devices and apps for different functions:

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New study: Information overload is the roadblock to effective communications

Almost six out of ten consumers (59 per cent) have stopped engaging with four or more brands as a result of poorly targeted communications, according to research released today by Experian. The report, titled ‘The future of multichannel marketing: marketer and consumer perspectives,’ shines a spotlight on disconnects that exist between marketers and consumers and highlights the opportunities available to marketers to minimise the impact of poorly targeted communications.

The Experian figures show that, as a result of poorly-targeted communications, eight per cent of consumers have stopped engaging with 20 or more brands. A further 27 per cent of Australians have gone as far as creating a separate email address to receive this information to avoid other email accounts from being inundated.

However, marketers are also making strides to change traditional marketing practices demonstrated by a significant 89 per cent of marketers now using a customer segmentation strategy.  In addition, 69 per cent are becoming more selective about the channels they use to engage with customers.  A key challenge identified by half (50 per cent) of Australian marketers lies in cutting through the white-noise to get messages through to the consumer.

It’s clear that many marketers are investing in tools to get the right message to the right audiences at the right time, yet the findings suggest that they may not be applying this strategic segmentation across all marketing disciplines, particularly among newer channels such as social media.

The evolution of social media

The findings show that consumers are least trusting of newer marketing channels such as social media, SMS and LinkedIn for direct communication with brands.  Almost three in 10 (29 per cent) consumers ranked social media as among the three marketing channels they trusted least when receiving information about a brand.  While just four per cent said it was the channel they trusted most.

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URGENT FEEDBACK REQUIRED: What is the future of media & music culture creation?

Tomorrow I am speaking at the Digital Culture Public Sphere consultation run by Senator Kate Lundy and Minister Simon Crean in order to form a collaborative submission on digital culture in Australia to the National Cultural Policy consultation.


I’m covering “The future of media culture creation in a digital world” but the Public Sphere wiki hasn’t had many contributions. Here’s you chance to contribute to a 10 year strategy for Australian digital culture, and the broader national cultural agenda.

There’s plenty of ways you can get involved via the Wiki, but for expediency and to help me easily deliver your ideas could you please either write a comment here or via Twitter using the hashtag #publicspheremedia so I can collate.

This is fairly urgent. I will be presenting the collated ideas at about 12.30pm tomorrow (6 Oct 2011).

Ideas to address include:

  • How do you imagine the sector could look in the future? How could Australia excel? What would a 10 year plan look like?
  • What are some tangible ways we could measure progress in this area?
  • Ideas to achieve the vision for Australia.
  • Add your thoughts and references for where this sector is going, emerging business models, opportunities for commercialisation
  • Any additional information you think might be useful, including case studies, success stories, research papers.
  • Leading case studies from the sector to help contextualise Australian innovation in this area


SBS shows the way with their Tour de Force

For the last 20 years I have been glued to SBS during July watching their coverage of my favourite sporting event, le Tour de France.

In recent years our multicultural broadcaster has upped the ante by introducing live coverage of the race, initially on key stages and now every night.

This year they’ve taken it a significant step further again. Not only can you watch the Tour live every night from 10.30pm (AEST), or 10pm if you want some recaps and Gabriel Gate’s food segment, but now you can follow the race via the SBS Tour de France website, Tour Tracker or iPad (update: plus Android and LG connected TV) apps with latest stats and high resolution streaming video. It is wonderful.

But wait there’s more…..

You can also follow the SBS Tour coverage via Twitter, Facebook and Youtube.

Rather than detract from the audience’s attention to the TV screen these various options enhance the overall experience. We can watch the SBS coverage anywhere (no audio), get some real-time insight from various experts and commentators and have bit of fun comparing your stage picks versus the experts.

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