Logging On: The Virtual Workforce

In Medias Res was asked "What workforce trends is the industry experiencing?"

Now, we've been talking about the growth in online and social media weekly. But I guess, there's nothing really wrong with emphasizing our point, yet again.

The media industry does more than hiring actors and actresses. Whereas making it big in the 1980's meant moving to New York City or Hollywood, today- all you need to do to get out there is stay creative and online.

Mark Zuckerberg can tell you that, too. The Facebook team has to put a lot of work into their online community.

It's not just social media companies that need to focus. Virtually all parts of the media industry need a media workforce- a focus on their online community.

Today, companies in the media industry focus on their online communities- consuming and sharing the work that theses companies make available online (whether it's Hulu or YouTube videos or articles from the Huffington Post). And this community needs to be moderated and kept up with- it isn't enough that major newspapers and networks get online. They need to have a lot of effort focused on online traffic, the feedback issued by users, keeping the site clean and spam-free (hopefully), and coming up with new ideas and new discussions. In doing that, customer loyalty is being fostered- or at the very least, the online audience will grace the companies with a "bookmark" by saving their page on their computer.

The online newspaper is a different product than what we get delivered to our doorstep periodically. A level of interaction is brought in- just check out Newsmap, a site that gives readers access to top stories based on how much attention is given to the headlines in each country. The online reformation has created different jobs and has made media giants

To the Internet & Beyond!

At In Medias Res, we are racking our brains for opportunities for entrepreneurship in the media industry.

We had our Eureka moment when we stumbled upon this Wall Street Journal article.

Online advertising is opening up and is presenting itself as a very good opportunity for entrepreneurs.

"U.S. online advertising revenues rose: 3% in 2009 and 15% in 2010, and S&P Capital IQ estimates an increase of 10% in 2011," says Scott Kessler- quoted on NetAdvantage as a top analyst in internet software & services, a sub-industry of what we, here at In Medias Res, care about. The growing revenues from online advertising give investors a sense of security within the media industry.

And with thriving social media sites, like Facebook and Twitter, a lot of advertising space is being made available and is waiting to be snagged up. And because this is through the internet, many mediums are available for advertisers: from videos to pop-ups to promotional Facebook group pages with interactive games. Various ad-technologies are being developed and the growth of this industry shows many opportunities for newcomers. Online advertising is being redefined, with ad-technology changing hands and with the area re-consolidating itself, as the article suggests.

Hello to Hulu

When looking at the current events in the media industry, our team at In Medias Res always keeps an eye out for the many ways that media sources are available to viewers. Today, you don't need to TiVo a show in order to keep up with it. At least, not as long as you have Hulu.

Hulu. a website that has been making selected episodes (and sometimes entire seasons) of television shows available to the masses, is jointly owned by Walt Disney Co, News Corps, and Providence Equity Partners LLC. Its owners had decided to put it up for sale. And now... well, if you were dreaming of owning Hulu, your opportunity has passed. Hulu is off the market and will continue under the same ownership.

What's in store for Hulu? It's best put in this interview with Sam Schechner:

According to the Wall Street Journal, the owners are trying to re-draw the lines of their ownership. Imagine the way US, UK, and Russia drew lines around Germany and Berlin after WW2, and the way they designated who would be in charge of what. Well, hopefully, the overall process will be a lot more cohesive than that. The last thing we need is a "Cold War" of online videos!

Still, the owners (Disney, etc.) failed to find a high bidder that would agree with their terms. Dish Networks and Google were the last two serious contenders. Dish Networks was bidding around $1.9 billion and Google, while offering $4 billion, had its own terms in mind. So the whole deal was thrown out, and Hulu stays under the same ownership- perhaps with redrawn lines.

At In Medias Res, we are excited to see what becomes of Hulu in the long run. As they continue to add more and more content and to seek more Hulu Plus subscribers ($7.99/month gives subscribers more access to shows and movies). But it's still possible that it will change hands down the road. The website may be split between more global media giants when the licensing agreements will be renewed in a few years.

Going across the Pond and Beyond

In Medias Res was asked Do players in your industry manufacture overseas?

We chuckled significantly over this question because we can hardly remember when the media industry went global. It seems so long ago that it’s hard for me to picture a time when this wasn’t the case.

A lot of key players manufacture overseas and have divisions and branches in different continents. It is an especially smart move in the media industry, because to intrigue an audience, content must be relevant to them, and “giving the people what they want” is more easily done when you understand the culture and values of your audience. Therefore, it’s really essential to be setting up shop overseas in the media industry.

Let’s think about News Corp. Its net money flow currently is $17.84 million and that’s not too shabby. It’s in the top five of the global media giants. And News Corporation is careful to cover all its bases globally.

You may have heard that BBC (British Broadcasting Company) is the “largest broadcaster,” but News Corp has extended itself into more mediums and done so on a larger scale. For example, News Corp’s UK division, News International, prints many newspapers like Today and The London Paper. News Corp Europe television broadcasts specifically in certain countries- like Romania and Bulgaria. News Limited, which we could consider to be the Australian brand of News Corp, has great outreach too, offering many magazines and television shows.

Equally important in manufacturing overseas are the translations that are necessary for offering products overseas in the media business. TV shows are translated- in some cases, like cartoons, even dubbed over. Magazines and newspapers are reprinted- and it’s not as easy as “copy & paste”-ing everything into “Google translate.” News Corp owns the publishing house, HarperCollins, and while it is headquartered in New York, translating novels and published works is essential and a big part of manufacturing internationally. And it’s not just News Corp. Many do it, just to keep up with the global audience. Manufacturing overseas is part of the global aspect of this industry.

Social Networking FTW

This week, In Medias Res was asked, “What is the competitive landscape of the media industry in the US?” and we will be answering this question specifically in terms of popular social networking sites, like Facebook and Twitter, as they have been utilized most by other businesses implementing social media as a tool to further themselves.

That's because even established companies (Google, Time Warner Inc., Disney, etc.) seem to be rethinking their business models to incorporate websites, mobile functions, and social networking sites in order to make their products more accessible.

But what is the social media medium doing to the competitive landscape exactly?

The company’s branding, or the way it gets is name out, is done through the outreach it has online. The top social networking companies are as follows:

Facebook (700 mil. monthly viewers)

Twitter (200 mil. monthly viewers)

LinkedIn (100 mil. monthly viewers)

MySpace (80.5 mil. monthly viewers)

Ning (60 mil. monthly viewers)

Google Plus+ (32 mil. monthly viewers)

The viewership alone should not be telling of the competitive landscape of social networking sites in the media industry. It also depends how these web sites are used by other companies- outside advertising being how a lot of them make money. According to USAToday, Facebook, specifically, stands out as a promoter of small businesses, making coupons, special offers, and more available to followers/users.

The newer of these social networks, Google Plus+, has tried to revolutionize social networking accessibility by having "friend circles" and allowing Google hangouts (or video chats) for large groups of people. As a user of both Facebook and Google Plus+, I find Google Plus+ to be more fun and creative to use. But ol' reliable (Facebook!) is what seems to draw me in- simply because it seems like everyone uses it! It's hard to compare social networking sites when Facebook and, as of late, Twitter seem to be much more mainstream than the rest.

While Facebook is used by a lot of small businesses, Twitter is being utilized by some very smart companies, too. The online retailer, Zappos, and Comcast are using Twitter to further public relations and advertise their company.

When you get down to it, these popular social networks offer many different things: LinkedIn, specifically, serves as a way to distribute your resume to potential employers. All these unique groups come with downsides to them too: MySpace has a lot of spam and an outdated look to what used to be a site meant for artists to share their work and music; Facebook used to spam their users' in-boxes and many people are dissatisfied with the changing formats; Google Plus+ is very exclusive and you can't make an account without being invited by a current user. As for Ning, and other popular social networking sites like Hi-5, -they simply have not established themselves enough to make as much of a mark as Facebook and Twitter.

It would be interesting to fast-forward 5 years and see what we're still into. I don't know if Facebook will stay on top- or if a completely different player will take us by storm. So far, the competitive landscape of the media industry- as far as social media goes, is such that it is dominated by Facebook and Twitter, with some other competitors fighting for third place.

It's (Still) Elmo's World!

In Medias Res readers are wondering: "Which companies in the industry stand out in regards to their view and actions in CSR?"

Corporate social responsibility (CSR) entails of being mindful about the community, the environment, and the world. However, in the media industry, it also includes actively promoting these ideals. The products of the media industry are such that they portray the values or lack of values of society, and many expect to see movies, websites, shows, newspapers and books to be in abundance of their own moral fiber. If the consumer does not agree with the products on that simple level, there is less of a chance that they will be interested in them. Granted, there are people who will pay attention to something like a TV show whether or not it's educational- I hate to tell this to you, writers of “Mad Men,” but no one I know watches the show for an in-depth look at businesses in the 60’s. It’s because of all the drama and intrigue that Don Draper’s (Jon Hamm) love life provides. But having that moral fiber helps, and it is in the media industry's favor to hold on to it. So motivation for promoting CSR is there. The question is... which companies actually care?

You can't walk into a bookstore without seeing a romance novel. And television and movies are riddled with "Rated R" programs. Clearly, some publishers and producers don't need to appeal to the public on the CSR level. On the other hand, private nonprofit names like PBS and NPR are dedicated to stimulating creativity and media literacy as well as upholding ideals like conservation and environmentalism. In PBS’s mission statement,they underline the importance of reaching out to children.

PBS online and PBSkids has churned out interactive and educational programs that are accessible to children of all ages. And it stands out for its innovation. Look at Sesame Street: That show adapts itself to the changing social climate with guest stars like Norah Jones and Katy Perry, while also teaching kids basic things about asking questions, learning to read, counting, etc. And let's face it: Elmo is "da bomb!"

It makes sense that companies with a target audience made up of children should have positive messages. Seven years ago, Nickelodeon had the "VERB" campaign, about getting active and being outside. More recently Disney Channel went green, promoting environmentalism in a huge campaign that involved stars like Miley Cyrus and the Jonas Brothers.

Disney works in different mediums of media-just like PBS. From Online games, to IMAX Movies, like “Planet Earth” and “African Cats,” to music releases and TV shows, Disney promotes the environment in a good way and sponsors contests for its viewers. By engaging its young viewers to get involved in projects to save the planet (recycling, community compost, etc.) Disney is making itself a big leader in the media industry as far as CSR goes.

More companies should take note of what PBS and Disney are doing. By actively reinforcing the moral fiber of society, its viewership is growing and people are paying attention because they are being made to care.

All About the Buzz

In Medias Res staff was asked: "What drives revenue growth in this industry (i.e. more units sold, expanding geographic reach, lower costs for manufacturing, etc.)?"

It’s hard to chart revenue growth in the media industry when only some of the money comes from units sold (i.e. ticket sales, DVD-s, Blu-Rays, CD-s, books merchandise). According to RevenueRecognition.com, “newspapers get their lion’s share of revenue from advertisers.” The same goes for magazines and other periodicals, as well as cable TV broadcasting. A lot of the revenue growth comes from marketing the products on television and the internet and sharing ad-space for other products and industries. The more that the public pays attention, the more they are exposed to advertising. And so, the media industry grows.

But it’s not as easy as just having some well-placed ads. Back in the times of Charlie Chaplin, all you needed to sell out your show or newspaper was a cute, scrappy kid standing on a soap-box, calling all the ladies and gents to attention.

To draw a crowd in this industry you need to create a buzz. Today, many people are very vocal about their preferences- if only because to express views today, all you have to do is click the “Like” option on Facebook. Well, it is this sort of online acceptance that is giving branches of the media industry credit where it’s due.

On Paid Content, a poll is displayed (complements of Trendrr, a social measurement company) showing howoften companies are being mentioned on blogs or on Twitter. They compiled a tidy list of 50 popular companies and brands and how often they have been mentioned in the blogs of hipsters and Tweets of tweens.

This representation of “popularity,” while very non-traditional, seems to be pretty indicative of what’s on people’s minds. Of course, the data doesn’t show whether the comments on blogs and Twitter were positive or negative- which is ok, considering that, in this business especially, all publicity is good publicity! It’s buzz like this that brings in revenue to an industry that relies so heavily on advertisement.