What we need is a good-better-best approach to digital content

Paramount is out with a new online service that lets customers purchase clips from films. As this New York Times article notes, it’s initially aimed at advertisers and marketers who want to use the clips in campaigns. Consumers will be…

Paramount is out with a new online service that lets customers purchase clips from films. As this New York Times article notes, it’s initially aimed at advertisers and marketers who want to use the clips in campaigns. Consumers will be let in on the action later.

I have a couple thoughts on this:

1. Kudos to Paramount for giving this a shot. It certainly can’t hurt, and we need all the experimentation we can get.

2. I think this is a fantastic opportunity to test good-better-best quality levels. I’ve long thought there’s a way to service different segments of the audience through resolution, features and convenience.

For example, writers, bloggers and others who simply want to reference a clip could grab a lower-resolution version for free (as many already do through YouTube). This boosts awareness and creates branding opportunities for the content provider.

One sidenote: The Times piece suggests folks on the low end — consumers, mostly — may have to pay a low per-clip fee. That’s the wrong move. These aren’t ringtones. Ringtones are a public expression of personality linked to an always-on, always-available device. Embeddable movie clips require placement within media forms, be it a website or a DVD. The all-important personality element is muted. I’m not going to shell out cash if that so-bad-it’s-good movie clip only broadcasts my ironic sense of humor to a limited audience. I need exposure, dammit!

But I digress …

Moving up the scale, companies that want to aggregate clips or make them available as part of another content product could pay a reasonable amount (likely a flat rate for a certain number of clips) and gain access to DVD-quality content. I can see utility here for the education world. A one-stop shop for clips could take a lot of the pain out of the copyright quagmire law-abiding teachers currently face.

On the high end, marketers and advertisers who need full-resolution (1080p, if available) and the absence of co-branding would pay a premium.

What won’t work is an “everyone must pay” declaration. I’m assuming that since this got written up in the Times, and given that a consumer option is part of the longer-term gameplan, Paramount wants this to be more than a back-channel marketers’ tool. Otherwise, why publicize it? This is clearly a public-facing product. As such, it needs to properly service the unique needs of all audience segments.

Judging Dell’s Twitter revenue against company revenue misses the point

If Dell turned heads last year when it claimed to have made $1 million through Twitter, its revised estimate for 2009 is going to cause nasty neck pulls: the company says Twitter revenue jumped to $6.5 million. (I’m assuming that…

Twitter and DellIf Dell turned heads last year when it claimed to have made $1 million through Twitter, its revised estimate for 2009 is going to cause nasty neck pulls: the company says Twitter revenue jumped to $6.5 million. (I’m assuming that spans multiple years.)

The Guardian has a nice bit of analysis on the announcement. It’s informative and interesting. It weaves in some contextual bits. But nestled amidst the numbers is the “drop in the bucket” paragraph that always pops up in these types of stories:

Although $6.5m sounds impressive, when you compare it with the net revenue of $12.3bn Dell reported in the first quarter of fiscal year 2010 it becomes clear that this is only a drop in the ocean …

Sorry. I guess that’s a ” drop in the ocean” paragraph. You get the idea.

I understand the need to insert this text. Its absence would surely raise a red flag for editors and consumers alike. But there’s an underlying perspective here that I believe is damaging, and I wish more analysts would call this out.

Social media exists in a space totally different from traditional business. Activity takes place at the edges, not the center. It’s ambiguous. It’s fleeting. Because of all this, judging social media efforts against traditional channels obscures the real analysis and the real opportunity.

What’s notable about Dell’s Twitter revenue is that it went from $1 million in 2008, to $3 million in June ’09, to $6.5 million now. That’s an enviable trajectory in any business, but it’s doubly impressive here because Dell is making actual money through a nascent system. It found a way to put social media’s tricky architecture to work.

That’s key. Digital disruption is wiping out the fat revenues from traditional models. Many businesses will get smaller simply because consumers have more power and more choice. The companies that find ways to make money within this new landscape — even relatively small amounts of money — have a better shot at adaptation.

Images courtesy Dell, Inc. and Twitter, Inc.

Here’s why digital is always better [Quote]

“Consumers are no longer tethered to a network program schedule, a wire, a single screen or device — a TV set, a game console, a physical newspaper, magazine, or book — for their information or pleasure. With choices, consumers feel…

“Consumers are no longer tethered to a network program schedule, a wire, a single screen or device — a TV set, a game console, a physical newspaper, magazine, or book — for their information or pleasure. With choices, consumers feel in control, putting an end to the old argument over which is king, content or distribution or technology. It’s the consumer.”Ken Auletta, Media Maxims

Want to encourage piracy? Netflix and the movie studios show you how!

Looks like Netflix and the movie studios are about to make piracy more enticing. Good move, guys. From TechCrunch: Here’s what this will do: It may drive sales of DVDs a bit short term. But soon, online movie piracy will…

Looks like Netflix and the movie studios are about to make piracy more enticing. Good move, guys. From TechCrunch:

Here’s what this will do: It may drive sales of DVDs a bit short term. But soon, online movie piracy will pick up to new heights. If the movie studios have nightmares about piracy now, their reality will be truly terrifying with this plan in place …

… with this new 30-day window in place, the masses would be driven online to search for more illegal content — and more importantly, it would begin to fuel a piracy ecosystem for Hollywood content. There would be more people downloading, but also more people sharing. That’s the key.

Take a look through any torrent site (looking is legal) and you’ll see that most of the activity occurs around new releases. And that’s happening under the current system where new releases are available for purchase or rental. Remove rental from the equation (you know, the lower priced, easier, less restrictive option) and suddenly pirates go from fringe-dwelling copyright violators to service providers. I’m guessing that’s not what the studios are shooting for.

“Twitter Effect” Story Covers Consumer Tech Without the Hysteria (… It’s About Time)

I was ready to rip this Twitter Effect story for being one of many “trend out of thin air” pieces commonly found in consumer-centric technology coverage. But I was pleasantly surprised to have my initial assumptions proven incorrect. The headline…

I was ready to rip this Twitter Effect story for being one of many “trend out of thin air” pieces commonly found in consumer-centric technology coverage. But I was pleasantly surprised to have my initial assumptions proven incorrect.

The headline teeters on hype, but the story itself asks a reasonable question — do rapid-fire Twitter reviews influence film revenue? — and (gasp!) presents multiple viewpoints that don’t glom on to comfortable conclusions. The piece, which is really worth a read, says Twitter might influence receipts for some films. It’s nice to see nuance for a change.