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November 30, 2006

New Media News

Yahoo Launches Mobile Social-Networking Service
"Yahoo has quietly launched an experimental site that offers mobile-phone subscribers the ability to send text messages and share videos and pictures among friends. The service follows a trend among Internet portals to offer mobile social-networking services." (via Information Week)

Sling Media hires former MTV digital chiefs
"The maker of Slingbox, a set-top box that lets viewers watch cable television on laptops and advanced cellphones, has hired former chief digital officer at MTV Networks Jason Hirschorn, and former vice president of MTV digital media Ben White, the company said." (via Reuters)

BitTorrent Signs Major Deals to Distribute Download-for-Pay Content
"News broke this week that the file-sharing technology creators have made deals with a variety of content providers to "legitimately" distribute TV shows and films for Paramount Pictures, 20th Century Fox, and MTV Networks." (via MIT Convergence Culture Consortium Weblog)

MTVN Developing 'Hyper-Programmed' Site
"MTV Networks' Music and Logo Group is developing over 20 new Web sites in what the company calls "hyper-programmed" vertical channels focused on niche viewers interested in topics ranging from old school hip-hop to spiritual music to “Your Momma so Fat” jokes." (via ClickZ News)

Posted by Lynne d Johnson at 2:47 PM | Add Comment

Managing Mistakes

It takes a lot of trust and honesty to talk about the plans that didn't work out, says entrepreneur, Chief Executive, and author Margaret Heffernan in her latest Resource Center column, "Mistakes." Behind every successful business, and every business person, lie many mistakes, she continues.

Heffernan shares a personal story of a mistake she made in her career, as well as how she recovered from it. She begins:

When asked about the meaning and impact of the French Revolution, Chairman Mao is reputed to have said, "it’s too early to tell." He might have been right but, in 1989, no one wanted to wait. Like all big anniversaries, the bicentenary generated a lot of television programs and it seemed like I was in charge of most of them.

I was a producer at the BBC, had made history films for years, and was a self-confessed French Revolution buff. No assignment could have pleased me better. A documentary series shot on location, a drama series featuring Alan Rickman and Simon Callow, a conversation with Simon Schama, even a comedy. And that was just the recorded shows. There was also to be hours of live TV covering fantastic celebrations across France. Jean-Paul Goude, Grace Jones’s collaborator, was in charge of the parade. He'd never done anything like this before. French TV was in charge of the live broadcast; they'd never done anything like it before. And, as if that weren't risk enough, I'd never done live television before.

(Read More)

Posted by Lynne d Johnson at 2:28 PM | 8 Comments

November 29, 2006

Paris Hilton Launches New Business Venture

Does anyone remember the old SNL skit advertising "Bad Idea" jeans? This hilarious parody of Levis ads portrayed the wearers of "Bad Idea" jeans making horrible decisions. People sporting "Bad Idea" jeans would say things like, "Now that I have kids, I feel much better having a gun in the house." It was funny stuff, but it made a good point: There are brands that are a really "Bad Idea."

Today I was horrified to learn of the birth of what may be the WORST brand in history – Paris Hilton. Parlux Fragrances, Inc. has signed an agreement to develop and market the Paris Hilton Cosmetics line. Based in Ft. Lauderdale, Florida, Parlux also plans to manufacture Paris Hilton watches. (Because it's important to be on time for hair extensions)

To top it all off, Parlux's CEO released a statement yesterday saying, "Paris Hilton is an extraordinary young lady with an ever-growing international following." Extrordinary? Well, that depends on your definition. Hilton was recently branded as a "partytard" by Defamer.com. and is well known for her porn star capabilities. Maybe it's just me, but I'm not buying lipstick from someone whose sex videos are all over the Internet.

I'm under the impression that when most women shop for cosmetics, they look for a solid name in femininity, class, and understatement. Last time I checked, this party girl is anything but. Just today, the New York Post headlined with a story of Paris and Britney Spears hitting the town without any underwear.

If Parlux plans to make a successful brand out of panty-less Paris, they should probably buy her some undergarments before she starts making public appearances. I'm wondering what market Parlux will target for the Paris line. Moms with tweens may be hesitant to purchase it, and the 18-24 market is already pretty comfortable with brands like Maybelline and Clinique.

What do you think? Is it possible to build a successful cosmetics line around Paris the party girl? Or is Miss Hilton the ultimate "Bad Idea" brand?

Posted by Kathryn Tuggle at 5:17 PM | 15 Comments

In Today's Papers

Reading and ripping:

• Eyeing a Billion Tea Drinkers, Starbucks Pours It On in China (Registration may be required)
  "Its Big Challenge: Creating A New Taste for Coffee, And Charging Top Prices"
• Hormel Struggles to Add Upscale Foods Without Alienating Lovers of Its Spam (Registration may be required)
  How do you reinvent your company without straying too far from your core?
• A Start-Up Fueled by Star Power
  "With Hollywood Help, Morgan Freeman's Movie-Download Site Is Set to Battle Apple"

Posted by Heath Row at 4:59 PM | Add Comment

YouTube and Revver Join Verizon's VCast

On the heels of yesterday's news that Verizon has bedded YouTube to offer selected YouTube content on its $15 per month VCast video service on mobile phones, reports are surfacing that Verizon has struck a similar exclusive deal with Revver.

The YouTube deal is reportedly for a limited period, which means that if the experiment is successful the other carriers will come courting. The Revver deal is said to be for a period of 12 months.

Revver, unlike YouTube, shares half of the ad revenue generated from users video clips with them. On Revver's site, ads are usually placed at the end of video clips. This won't be the case on Verizon's handsets. Instead, Revver plans to offer uploaders a share in the licensing arrangement, passing on half of the revenue it receives from Verizon.

Though Verizon reports that about 20 million of its customers have phones that could support Vcast, Ovum analyst Roger Entner says only about 10 percent of these phone users have subscribed to VCast. This could all change, of course.

User generated content could be the much needed boost in the arm that mobile video needs to take off. Though the $15 price tag on viewing only a selection of the content, that's available on the Web for free, might not be entirely palatable to consumers.

What do you think, will sites like YouTube and Revver experience as great a success on handsets as on the Web?

Posted by Lynne d Johnson at 6:26 AM | 1 Comment

November 28, 2006

Cyber Monday vs. Black Friday

We've all heard about "Black Friday", the Friday after Thanksgiving when shoppers still reeling from the effects of tryptophan wrench themselves out of bed at 6 A.M. to catch holiday shopping bargains. But what about "Cyber Monday"? This new term applies to the Monday after Thanksgiving when consumers return to work to take advantage of shopping online with fast broadband connections. Generally, 58 percent of all online shopping is done in the workplace, but 88 percent of Cyber Monday shoppers made purchases from the office.

This year's Cyber Monday sales totaled $687 million, up from $484 million last year. So, although Black Friday's storefront shoppers have slacked by about one million consumers since last year, Cyber Monday welcomed two million more shoppers to the Web this season.

Of course, consumer confidence plays a role in the success of shopping, too. Wal-Mart's early November sales were down by 0.1 percent, which led some retailers to fear a potential slack in sales for the rest of the year. However, Cyber Monday gave Wal-Mart.com its fifth biggest take of the year, proving that the Monday after Thanksgiving is becoming just as popular for shoppers as Black Friday.

Interestingly, December 11 is predicted to be the biggest spending day for online holiday shoppers this year. My guess is that date will give consumers just enough time to have something shipped and wrapped by the 25th. As for me -- I'm going online this year. I'd rather spend my off-hours strolling leisurely past Bloomingdale's on my way to the park.

Do you think that consumers' shopping habits are evolving? Are consumers more likely to purchase something online at work than braving the storefront crowds? Or do you think that consumers will opt to jostle for position outside the nearest bargain basement and help retailers meet in-store sales predictions for this year?

Posted by Kathryn Tuggle at 5:51 PM | 4 Comments

In Today's Papers

For the commute home:

• Recliners vs. Uprights: Tighter Seating Puts Passengers at Odds
  After reading this article, please return your seat to its upright and locked position
• The Socket Seekers
  For the business nomad, electrical outlets are the new watering holes
• This Is Your Brain on a Strong Brand
  "MRIs Show Even Insurers Can Excite"
• When Marketers See Double
  "As Digital Libraries Spread The Use of Stock Photography, Some Ad Images Are Recycled"

Posted by Heath Row at 5:09 PM | Add Comment

Gaming Console Wars

After first week sales, it appears as if Nintendo's Wii has beat out Sony's Playstation 3. As we reported in our online exclusive, "Sony's Risky Game," earlier this month, Sony faced serious challenges with meeting demand for its gaming system. Though both consoles sold out on their first day to market: Nov. 17 for the $500-$600 PS3 and Nov. 19 for the $250 Wii, Nintendo seems to be winning the battle because of a greater supply.

According to USA Today, New Media Strategies, a research firm that monitored Web activity related to the systems released a report that revealed: "Many gave up on getting a PS3 and opted for the Wii. And 38 percent who sought a PS3 and were subjected to sleep deprivation, lost wages, missed classes, the elements, and even muggings came away from the experience with a bitter taste in their mouths." About 49 percent of online discussions were favorable to Wii, compared with 27 percent for PS3. Says the firm's Sam Huxley: "The hype machine went too far."

Overall, Nintendo reported North American sales of more than 600,000 units of Wii in eight days, with about $190 million in sales. Meanwhile, though Sony has not disclosed total sales, the company says it will ship 1 millions PS3 systems in North America by the end of the year, compared to the 4 million units of Wii that will have been made available for consumer consumption. In comparison, reports reveal that Microsoft has shipped more than 6 million of its Xbox 360s since its launch in November 2005.

Though quality of each respective console will definitely play a part in consumer demand, supply and price point may end up being the determinant of which unit wins this war. Ultimately, this could mean the end of video game domination for Sony.

Posted by Lynne d Johnson at 5:05 PM | 3 Comments

Zune Flops on Cyber Monday

By most accounts, this holiday sales season is off to a good start for electronics retailers. Microsoft's Zune, however, was conspicuously absent from Amazon's top ten electronics list on Cyber Monday.

Today's Wall Street Journal notes that the MP3 player bounced around the top ten for a few days after its Nov. 14 release, then promptly dropped off. Yesterday's online shopping frenzy only took it as high as number 72, and this afternoon the 30GB Zune had fallen to the 92 spot. By contrast, six versions of the iPod were in Amazon's top ten, and even the iPod travel charger was selling better than Zune.

Still, the WSJ reported that a Microsoft spokeswoman said sales of Zune have been exactly within expectations. If two weeks after its launch, "expectations" mean being ranked behind virtually all of Apple's media players, it seems that Microsoft has a curiously dismal outlook for the product meant to compete with the iPod.

Continue reading "Zune Flops on Cyber Monday"

Posted by Peter Hoy at 3:50 PM | Add Comment

November 27, 2006

In Today's Papers

From the reading pile:

• After Decades, A Solar Pioneer Sees Spark in Sales
  "Mr. Ovshinsky's Roofing Can Generate Electricity; Other Ideas Lose Money"
• Books That Analyze Secrets of Success, Current and Historical
  Leading reads, reading leaders
• Firms give texting a thumbs-up
  "Want info on real estate, news or the local scene? Companies are gobbling up text-message codes to cash in on the craze."
• Lure of Great Wealth Affects Career Choices
  Do you make more than money?
• Peaceful Swiss Army Tries to Give Lessons In Corporate Warfare
  "Criticized as Unnecessary, Military Trains Executives; Bankers in the Bunkers"
• Seeking an Edge, Big Investors Turn to Network of Informants
  "Mark Gerson Assembles Web Of Moonlighting Managers; Applebee's Bars Practice"

Posted by Heath Row at 1:35 PM | 2 Comments

Keeping Up With the Vanderbilts

From the obvious headline department: a piece in today's New York Times called "Lure of Great Wealth Affects Career Choices."

It's an article about people who grew up dreaming of, and attending graduate school with the purpose of, becoming doctors and professors. Once they reached these positions, however, they decided that low six-figure salaries just weren't high enough. One man went from a $200,000 per year hematology-oncology practice to a seven-figure biotech consulting job at Merrill Lynch. A Dartmouth business professor left academia for multimillion-dollar positions in Wall Street firms.

Everything's all well and good if these people happen to love consulting and equity firms. But the problem here is that the Times' particular subjects don't especially love their jobs, or at least they don't say they do. They love medicine and education. The doctor still does hospital rounds on his free weekends and the former professor squeezes in one adjunct class a semester.

What do you think of the trade off? How much does one really need to earn? What would it take to make you quit your career for a more lucrative one?

Posted by Josie Swindler at 12:10 PM | 4 Comments

Black Friday Bolsters Retail Sales

It was a great Thanksgiving weekend for U.S. retailers, with fewer shoppers spending more. According to The National Retail Federation, an estimated 140 million people hit the stores and shopped online over the past four days, down about 5 million from last year. And Black Friday, which starts the holiday season for retailers, drew about 58.9 million people, down more than 1 million.

A similar pattern was observed on the Web. While Nielsen/NetRatings reports that 19.2 million Americans visited more than 120 online retail stores on Black Friday, up from 17.2 million in 2005, but that's significantly below a 29 percent growth in overall traffic to online retail stores from 2004 to 2005.

But with all of this spending, retailers are still concerned about consumer confidence. Considering that November sales were down by 0.1 per cent on the same month last year for Wal-Mart, the world's biggest retailer, gives some pause. It was only the second time in 27 years that Wal-Mart reported a fall in sales, and it was also the retailer's worst performance in more than 10 years.

Is Wal-Mart truly the bellwether for the entire retail industry? Should retailers have concern about Christmas spending and year-end sales given Wal-Mart's performance?

Posted by Lynne d Johnson at 12:07 PM | 1 Comment

November 22, 2006

Tracking the Tree

November 17th Gordy Grove, an independent owner operator for National Van Lines, left Seattle hauling the 65-foot Pacific Silver Fir tree that will be displayed at our nation's capitol this holiday season.

Thanks to Global Locating System technology provided by Sterling, Va.-based SkyBitz, the public is able to track Mr. Grove's ten day journey to Washington D.C. The trailer's geographic location is displayed every fifteen minutes on a Google Map that allows you to zoom in and out or display the entire route. As I write this, the trailer and tree are near Peoria, Illinois.

This combination of tracking technology that can provide up-to-the-minute location information and the ease of display of Google Maps started me thinking about the myriad of tracking Mashups that might be available.

A brief search turned up a map that shows where marathoner Dean Karnazes is on his cross-country run from New York City to San Francisco and another map that shows the current race status of competitors in the Baja 1000 off-road race.

But since it's the holiday season, what I really want to know is if a Mashup has been created that allows a person to observe Santa's path. Last year people could track Santa Claus using Google Earth beginning Christmas Eve.

Apparently, Mr. Claus also took advantage of a Google Maps Mashup last year. From the Google Blog:

To: "Google Support" From: claus@gmail.com Subject: Naughty or Nice Layer

I love Google Earth and have been planning a big trip with it. Now I'm wondering if you've ever thought about licensing data layers for "nice" and "naughty." If interested, I've got a really good list -- I've checked it twice. Rooftop accurate data!

Let me know,
S. Claus

If even Santa is using Mashups, clearly Google Maps Mashups have changed the way we think about location information. What are some fun or practical tracking Mashups you'd like to see? What are some potential applications that scare you?

Posted by Leslie Taylor at 1:35 PM | Add Comment

Not Everyone Loves MySpace

At a time when most music artists are embracing MySpace as an extension of their marketing plan, Jay-Z wasn't too delighted that MySpace served its site members a sneak preview of his entire new album last week. Kingdom Come, the artist's first album, since retiring three years ago, went on sale yesterday. On Friday, Jay-Z's record label, Universal Music Group, filed its lawsuit against MySpace.

Leading up to the album's release, there has been a heavy marketing push, including an exclusive sneak preview on Clear Channel's site. Apparently, the MySpace leak wasn't part of that plan.

Universal, fearing widespread illegal downloading of one of it's biggest artists' comeback album, decided to sue MySpace and its parent company News Corp. for $150,000, in federal court in Los Angeles. The copyright infringement is for every unauthorized Universal song and video that MySpace has on its servers, and seeks an injunction from future infringement. According to MTV.com, the UMG claim states:

"UMG also claims that MySpace — which it referred to in the suit as a "vast virtual warehouse" of pirated material — is aware that its many members have posted illegal bootleg videos and pirated recordings of Universal acts; among those cited are works by U2, 50 Cent, Mariah Carey, and the Killers."

Coincidentally, around the same time the suit was filed, MySpace announced plans to launch a tool that will make removal of copyrighted content easier and faster for its owners. Copyright holders will be able to digitally flag the unauthorized content, and it would be deleted from MySpace. Last month, MySpace also announced plans to utilize fingerprinting technology that would block the posting of unauthorized music on the site.

UMG and MySpace had been negotiating a deal for News Corp to pay a licensing fee for Universal content that has appeared on MySpace, but licensing talks between Universal and MySpace had reached a dead end recently, reportedly. The copyright infringement claim will not affect a deal that Universal's Interscope Records has with MySpace to distribute albums from its artists.

Posted by Lynne d Johnson at 1:19 PM | 2 Comments

The Butterfly Effect Hits Vending Machines

Earlier this week, the U.S. Mint announced plans to roll out new $1 coins, featuring each deceased president, at a rate of four per year. Mint officials hope this will a.) reacquaint Americans with some of our lesser-known presidents and b.) get people to use those doggone coins.

But it was one of those end-of-the-story factoids in this Reuters article that got me thinking.

According to U.S. Mint Director Edmund Moy, the U.S. vending machine industry stands to save $1 billion if consumers ditch their flimsy paper bills for $1 coins. The switch would eliminate maintenance on bill acceptance slots.

This was one of those moments that made me realize just how interconnected the business world is, and just how rarely I stop to think about that. What other examples of interconnectedness can you think of?

Posted by Josie Swindler at 12:42 PM | 10 Comments

November 21, 2006

The Corporate Gender Gap

An article in today's Wall Street Journal touts the fact that women in the business world are "breaking stereotypes about what women can and can't do well, and opening up new opportunities for women who will follow them."

The article points out the fact that women are increasingly found in top jobs at a wide range of businesses, as opposed to only companies whose products cater to female customers, which had historically been the case. It also mentions how women holding top jobs at nonprofits and regulatory committees are influencing how business is conducted.

No doubt, these are encouraging trends. But the overall statistics about gender in the business world remain dismal.

According to Catalyst, a New York, N.Y. research firm, only 16.4 percent of corporate officer jobs at Fortune 500 companies were held by women in 2005. That's only 0.7 percentage points higher than it was in 2002. Furthermore, only eight Fortune 500 companies had female CEOs and women constituted only 6.4 percent of the top five earners among corporate officers.

So before we get too caught up with the good news, remember that women make up 51 percent of the U.S. population, and no matter how you dress the numbers, that 16.4 percent seems more concerning than consoling.

What do you think the numbers will look like three years from now? What should be done in the next three years to address this discrepancy?

Posted by Peter Hoy at 4:44 PM | 7 Comments

Kramer's Racist Remarks Not Funny

Michael Richards, best known as Seinfeld's Kramer, entertained sitcom audiences for ten years as a zany, outspoken character who would do or say pretty much anything. This weekend at a famous Los Angeles comedy club, fans were shocked at his ability to do just that. During his show, Richards launched into a racist rant, confronting black members of the Laugh Factory audience with repeated use of the N-word and various other epithets.

Richards said he was prompted by the heckling of audience members who were disrespectfully loud and told him he wasn’t funny. He called black hecklers the N-word and told them that 50 years ago, they would have been "hung upside down" for such comments. A tape of his tirade can be found on TMZ.com.

Last night on the Late Show with David Letterman, Richards issued an apology stating that his outburst was a result of anger, not bigotry.

Check out the tapes. Is Richards sincere, and did he just let anger get the best of him? Or is he really racist? What about his career? Will it suffer?

Posted by Kathryn Tuggle at 4:18 PM | 24 Comments

In Today's Papers

Reading and ripping:

• Google Mapping an Offline Course
  "Major Internet sites are showing a strong and growing interest in the advertising business, and traditional ad firms are starting to get worried."
• In Web World, Rich Now Envy the Superrich
  The greenbacks of envy
• Missing From Internet: Avid Shoppers’ Sharp Elbows
  "How do you get to be first in line when there is no line?"
• Web-Page Clocks and Other 'Widgets' Anchor New Internet Strategy
  "Gadgets Give Marketers Access to Personal Sites Unreachable by Banner Ads"
• When 'Cringe-Worthy' Corporate Culture Shows Up on YouTube
  An argument against performing karaoke -- and other silly human tricks -- with your colleagues
• A Whiff of Notoriety Is All It Took to Sell An Alcohol Vaporizer
  "Politicians Got Wind of It, Prompting Legislation; Liquor Makers In a Huff"

Posted by Heath Row at 11:30 AM | Add Comment

November 20, 2006

Design's Growth

"Despite the growing demand for designers in the business world, there remains a dearth of qualified designers," writes Peter Lawrence, Chairman and Founder of the Corporate Design Foundation, and Fast Company Resource Center Columnist.

He continues:

"This is a good news/bad news story. The good news is that design is increasingly valued by the business world; the demand for product designers has never been higher. The bad news is that we're not producing enough designers with the right skills. The consequences could be significant."

Read Lawrence's latest column to learn more about this problem, as well as what some of its solutions might be.

Posted by Lynne d Johnson at 6:16 PM | 1 Comment

Socap's Class of '07

They're here: the 2007 Fast Company/Monitor Group Social Capitalist Award winners. 43 organizations that are changing the world with new ideas, incredible passion, and surprising management savvy.

Check out Hands On Network, which in 2005 worked with a host of big businesses to marshall 168,000 employee-volunteers to put in more than 1.4 million hours of service. Or look at First Book, which has put more than 40 million new books into kids' hands since 1992.

There's more -- 41 more winners, actually. We've worked for months with Monitor Group to identify the top social entrepreneurs in the nation. And you can follow the individual organization links to donate directly to the ones you think are having the most impact, thanks to our partner, Network for Good.

That's what the Social Capitalist Awards project, now in its fourth year, is all about: Identifying the social entrepreneurs most worthy of investment -- and holding them accountable for their results. Congratulations to all.

Posted by Keith Hammonds at 11:51 AM | Add Comment

November 17, 2006

Playstation 3 Prompts Real-Life Violence

Last night as I made my way across Manhattan in the rain, I had to push my way through 1,500 angry wet customers standing outside the Sony Plaza store on Madison Avenue. Some of them, I'm told, had been there for days, waiting for a Sony Playstation 3 . As the wind caught my umbrella and cold water lashed across my face, I thought to myself, "These people are crazy."

The angry mob on Madison was just one of thousands across the country. Eager Playstation worshippers lined up outside Wal-Marts, Best Buys and Circuit Cities to be first in line for the game console when it went on sale at midnight. The shoppers I witnessed began to push and shove when a store supervisor announced over a megaphone that only 400 consoles would be sold that night. Patrons at the end of the barricades began to shout, and before I could make it across the street, two men had come to blows, and a few had fallen into a gutter. Only this morning did I learn that what I witnessed paled in comparison to events in Connecticut and Kentucky.

In Putnam, Connecticut, two armed men demanded money from an entire line of customers waiting for a Playstation outside a Wal-Mart. One man, 21, refused, and was shot in the chest and shoulder. A similar situation developed in Kentucky, when four customers were hit by BBs in a drive-by shooting. In Wisconsin, the hysteria continued when a 19-year-old knocked himself unconscious by running full-force into a pole between a Wal-Mart parking lot and the storefront.

I understand that gaming is popular, but it's horrifying that people are getting shot in real life for something that allows them to shoot people virtually. Given Sony's announcement that many of the original Playstation games aren't compatible with the new system, I'm genuinely surprised that all 400,000 consoles released last night were sold for a retail price of about $500-$600.

Posted by Kathryn Tuggle at 1:16 PM | 11 Comments

Toyota Goes Texan

This morning, Toyota officially opened its new, $1.2 billion factory in San Antonio to produce a bigger version of its Tundra pickup truck.

Some observers are calling this big new plant a gamble. It's a huge investment in big trucks--an attack on the one market segment where U.S. automakers are still making money, and an effort that fights Toyota's longtime reputation for small, fuel-efficient vehicles.

Want to know why it's not that big a risk, really? Why Toyota will probably pull it off? Read "No Satisfaction", Charles Fishman's story in our new issue--a behind-the-scenes look at what it's like to work at Toyota's oldest U.S. factory. Toyota's success is all about a continuous improvement strategy that's not just bluster. It's real, it's pervasive, and it reaches every corner of the company. No doubt, it's making the new joint in San Antonio tick, too.

Posted by Keith Hammonds at 10:51 AM | 0 Comments

Smoking Guns

In Ian Fleming’s 1953 novel, British secret agent James Bond was a chain-smoking 70-a-day man. But in the new version of Casino Royale I hope to watch this weekend, the only smoke we'll see will come from 007's Walther PPK automatic.

Smoking is no longer welcome at the movies. Philip Morris's leading brand, Marlboro, is reckoned to have featured in 74 of Hollywood's top-grossing films in the past 15 years, but this week the world's largest tobacco manufacturer ran up a white flag. "We do not want our brands or brand imagery depicted in movies and television shows," reads an ad running this week in Variety, The Hollywood Reporter and other industry publications.

Is this what the endgame for Big Tobacco looks like? Here in Europe, home of the moody, espresso-primed drag, public policy and opinion are swinging decisively into action. Ireland, Italy, Malta, Norway and Sweden have all banished tobacco from the workplace, restaurants and even pubs. Spain's partial ban allows smoking only in tapas bars and cafés or lounges. Even in France, a coming decree will ban smoking in restaurants next year, and in all public places from 2008.

Now in Italy an association of personnel managers has this week recommended smokers' pay be cut on the grounds that workers who take smoking breaks do an hour a day less work than others.

Big Tobacco looks further east to China for a breather from this onslaught. But with the Chinese government promising a tobacco-free Olympics when the world's heaviest smoking nation hosts the event in 2008, it seems prospects for the cigarette business are finally being stubbed out.

Posted by Ian Wylie at 6:29 AM | 2 Comments

November 16, 2006

Any Story is for Sale

Any story is for sale these days: the more sordid, the better.

O.J. Simpson’s story must have been particularly tantalizing to Fox Broadcasting and HarperCollins, both owned by Rupert Murdoch’s News Corporation.

If you haven’t heard yet, O.J. Simpson has written a book recounting how he would have murdered his ex-wife Nicole and her friend Ronald Goldman. The book is tauntingly titled “If I Did It.” It’s all meant to be hypothetical -- simply, Simpson shares his thoughts about a gruesome murder of which he was actually accused, then acquitted in criminal court and later found liable for in a civil court.

The book goes on sale at the end of the month. However, if you need additional mouthfuls of sleazy drama to sustain you until the book comes out, please tune in to FOX on Nov. 27 and 29 for the two parts of an interview with Simpson.

So, you want to write a book, too? Well, if O.J. can, you probably can, too. Make sure to throw in bloodshed, sex, racial tension and seamy autobiographical elements (such as a murder trial turned media spectacle). You might end up with a page-turner or a shameless piece of self-promotion that crosses all boundaries of human decency.

Posted by Polya Lesova at 4:43 PM | 1 Comment

In Today's Papers

Reading and ripping:

• Embracing Koolhaas’s Friendly Skyscraper
  "If the five-million-square-foot building is one of the largest ever constructed, its architect sees it as a people-friendly reinvention of the skyscraper."
• More than Job Demands or Personality, Lack of Organizational Respect Fuels Employee Burnout
  "It is often not the job that burns you out, but the organization."
• Product Placement in the Pews? Microtargeting Meets Megachurches
  "Advertising has begun to seep into churches, and the phenomenon shows no signs of slowing down, say academic, religious and marketing experts."
• U.K.'s Pearson Tests The Group Dynamic For a 'Wiki' Book
  "The wiki book, produced by a community of business experts and managers, will be called 'We Are Smarter Than Me.' It will explore how businesses can use online communities, consumer-generated media such as blogs, and other Web content to help in their marketing, pricing, research and service."

Posted by Heath Row at 2:20 PM | 1 Comment

Communities of Commerce

When marketing people talk about "creating a community," writes Fast Company Marketing Resource Columnist, they are usually thinking figuratively. They mean the kind of togetherness you might find over coffee at Starbucks or the sense of connectedness that makes MySpace.com the online phenomenon that it is. But for most people, "community" is a deeply held value, not just a marketing cliché.

Read Manners's latest installment to learn more about community.

Posted by Lynne d Johnson at 11:27 AM | Add Comment

Leading Ideas: Work on the Fire First

"When you're on fire people get out of your way." -- Richard Pryor (1940-2005), US Comedian

Consider This:

While Mr. Pryor was referring to being on fire literally, I'm thinking more figuratively - i.e. to be lit up with inspired energy. Either way, I think the statement holds true. People get out of your way when you're on fire because your energy is undeniable. It's spreads quickly and it's tough to put out. For better of for worse, the fire behind your ideas is often more important than the idea itself when it comes to getting buy-in from others. Most people don't spend enough time building their fire. They make sparks and a few small flames, but they never fan them. The fire never burns hot. It never spreads far. And as a result, it can be stomped out easily.

Continue reading "Leading Ideas: Work on the Fire First"

Posted by Doug Sundheim at 11:15 AM | Add Comment

November 15, 2006

Much Ado About Jay-Z

Jay-Z, president and CEO of Def Jam and Roc-A-Fella Records, has become a universal brand in the past year. And don't think that any of it was by accident either. In fact, it's highly likely that it was a well-planned strategy, focused on creating hype for the hip-hop mogul's return to the rap game. On November 21, he'll release a two-disc deluxe set, "Kingdom Come," his first solo studio album since his retirement in 2003, and he's not relying on YouTube or MySpace, as other music artists have done recently, to garner sales. In fact, just three days before the album ships, Jay-Z plans to board his private jet and hit seven cities to perform 30-minute shows within 24 hours. Cingular is on board to sponsor the spectacle, and MTV will air a 30-minute highlight special once the tour ends.

The tour is just the latest hurrah in a year-long marketing play that has endeared Jay-Z to more than just hip-hop aficionados. Earlier this year, the rap icon called for a consumer boycott of Cristal champagne, a brand he once enthusiastically celebrated in many of his hit songs. But after a Cristal representative distanced his brand from any hip-hop affiliation in an Economist interview, the rapper vowed to remove shout outs to the champagne from earlier songs, never to cite the name again, and he also stopped selling it in his own sports bars.

We eventually realized the plan behind that play when in a recent video for his new song, "Show Me What You Got," the rapper was shown turning down a bottle of Cristal for a bottle of Armand de Brignac, aka "Ace of Spades." Jay-Z denies any stake in the brand, but it has assisted Ace of Spades with breaking into the American market. The move also further signified Jay-Z's influential position in the marketplace.

In another power move, Jay-Z used his part ownership of the New Jersey Nets to further push his personal brand. First he appeared headless in HP spots for "The Computer is Personal Again" campaign, and used his hands to illustrate how he does everything on his HP laptop, from editing new songs to handling his investments to planning logistics for his world tour. He even mentioned, '"the new Frank Gehry plans for my team in Brooklyn," at which point blueprints swimmingly turn into a spinning model for the Nets' new arena, that is planned to open in 2009. The commercial first aired during the NBA finals in June.

Taking the NBA relationship further, he also appears in a new ad campaign for the NBA, riding around Manhattan in the back seat of a limousine discussing rivalry, success, the spotlight, and stardom. There are five of these promotional ads in total, which promote the NBA and TNT, as well as the slogan for Jay-Z's upcoming release. Clever synergy, huh?

Jay-Z's marketing mission became more clear last month when Anheuser-Busch, Inc. announced that the "CEO of Hip-Hop," was being named co-brand director of Budweiser Select. This partnership first came to light during "Monday Night Football," on ESPN in mid-October, when a commercial featuring out takes from Jay-Z's video, "Show Me What You Got," featuring shots of NASCAR's Dale Earnhardt Jr. driving Jay-Z around the hills of Monaco in a race against Indy Racing League driver, Danica Patrick. The ad closes with the tagline, "Jay-Z is back, coming Nov. 21."

Anheuser-Busch plans to collaborate with Jay-Z in other TV ads, as well as radio and print campaigns. He's also expected to be an integral part of Bud.TV, an online entertainment site featuring both brand and user generated content.

He's even got a strong public relations arm, as evidenced when his face graced the cover of LIFE on November 3, and also appeared as one of the three covers representing GQ's "Men of the Year" this month.

And just in case opening day sales need a little more muscle behind them, Clear Channel Radio’s Online unit plans a full-length exclusive album premiere, enabling users to listen to it for one week, on demand, before its release. Also, Jay-Z will perform "Show Me What You Got" on the day of the album's release during the American Music Awards, to be broadcast on ABC.

Either Jay-Z's a shrewd business man, or he has a heck of a team behind him. Either way, will his various marketing extensions help him achieve success during a sluggish music economy? (Shhh..I know of at least five people who already have the album in digital format, and they obtained it free of charge.) Will the album even live up to its hype? And what about these brands looking to cash in on Jay-Z's appeal to the youth market -- how successful will they be? But what I really want to know is, who's whoring whom?

Posted by Lynne d Johnson at 9:01 PM | 8 Comments

Apple Takes Flight

In its most recent move to saturate the music market, Apple has partnered with seven of the major world airlines to make iPods an integral part of in-flight entertainment.

Beginning in mid-2007, Air France, Continental Airlines, Delta Air Lines, Emirates, KLM and United Airlines will allow passengers to connect their iPods to in-flight entertainment systems.The iPod seat connections will charge iPods in flight, and allow videos stored on iPods to be viewed on individual seat-back displays.

Of course, Apple isn’t stopping with just seven airlines –- the company is working with Panasonic Avionics Corporation to bring in-flight iPod connectivity to everything with wings. I wonder if passengers will still be required to turn off iPods for take-off? Maybe passengers will view and listen to the safety video via iPod. Or, better yet -- the Captain can offer a podcast of what he's doing at the helm.

This is the first time in history airlines have catered to a specific device. Until now, only universal electrical plugs could be found under most plane seats, and that was enough. I’ve gotten by just fine for the past few years listening to my iPod like a normal person, sitting in a normal airplane seat, and I can continue to do so quite comfortably. How many times has your in-flight entertainment experience been ruined because you couldn’t plug your iPod directly into your seat?

With over 3,000 iPod accessories on the market, it would seem as if the public could find enough Apple gadgets to entertain themselves in-flight without depending on the airlines. I guess we can blame the automobile industry for setting this precedent -- over 70 percent of all 2007 automobiles will come equipped with iPod connectivity.

Is Apple going too far? What happens when something better than an iPod hits the market? Will airlines be forced to rip iPod connection devices out of their seats and replace them with something new? Furthermore, will consumers see an increase in ticket prices just so Apple-decked pre-teens can watch the newest Gwen Stefani video on a bigger screen? I’m not paying for it. I think Apple is taking iPod entertainment to the height of ridiculousness. Give me a break.

Posted by Kathryn Tuggle at 1:16 PM | 1 Comment

In Today's Papers

From the reading pile:

• Baseball's Bigger Deal Man
  "Agent Boras builds empire by negotiating monster contracts for his clients"
• BMW to launch world's first hydrogen luxury car (Registration required)
  A short run of 100 short-term lease cars heralds the possibility of cars that emit only water vapor.
• Packed tech summits with vats of Yahootinis ring bubble warning bells
  Pros and conferences: Gauging the state of exuberance on the convention floor
• Revolution shifts from hippies to microchips (Registration required)
  "The spirit of the 1960s has resurfaced in the form of Web 2.0, social networking and user-generated content websites" (Registration required)
• Young hearts keep Casio ticking (Registration required)
  "The 79-year-old head of the firm believes lateral thinking, not age, is key to setting gadget trends"

Posted by Heath Row at 12:14 PM | Add Comment

November 14, 2006

Bread and Circuits

At lunch today, I passed by an Au Bon Pain. In the window, there was an advertisement for a new turkey with cranberry chutney on ciabatta bread sandwich--their Thanksgiving special, I assume. What caught my eye was the slogan above the picture of the folded lunchmeat and perfect berries, "Turkey in high-def."

Go ahead, read that again.

The disconnect between a television term and gourmet sandwiches is a large one. I suppose the marketers at Au Bon Pain feel that tech-geeks with huge home entertainment systems and foodies clamoring for artisan breads are the same demographic. Funny, I've only been to an Au Bon Pain once or twice in my life.

While this is a peculiar move for the bakery, it points to an interesting development. High-definition is going mainstream. Au Bon Pain expects that people other than techies will be familiar with this term. And they are mostly right, I suspect. High-definition is becoming a cultural phenomenon--between next-generation video discs like HD-DVD and Blu-ray or the video game competition between Microsoft's Xbox 360 and Sony's PlayStation 3, people are getting in touch with their inner videophile.

But, I still wonder, will the term "hi-def" become generic? Is it the next "google"?

Posted by Kevin Ohannessian at 3:51 PM | 1 Comment

Kentucky Fried Postage Stamps

Colonel Sanders might join the ranks of the historical figures and Hollywood legends that have had their faces endorsed by the U.S. Postal Service.

Kentucky Fried Chicken is petitioning the USPS to get the mug shot of its founder on a postage stamp.

"The Colonel's entrepreneurial spirit and hospitable nature made him an American legend," said James O'Reilly, interim Chief Marketing Officer for KFC said in a statement. "We believe that a postage stamp in his honor would be a fitting tribute to his memory," he added.

Story has it that in 1952, the 65 year-old Sanders used his $105 Social Security check to start the first Kentucky Fried Chicken restaurant. Within 12 years, there were more than 600 franchised stores in the United States and Canada. Today, KFC says there are more than 13,000 restaurants worldwide.

KFC is currently inviting people to write to the Postal Service in support of the idea through their website.

Is this grass roots activism for an entrepreneurial hero, or a cheap way to get the post office to do marketing for KFC?

And even if it is shameless self-promotion, isn't the good Colonel still worthy of a 39 cent piece of real estate on your envelope?

Posted by Peter Hoy at 3:33 PM | 11 Comments

November 13, 2006

McDreamy's Sweater

Have you ever been distracted from the melodramatic interactions between the attractive doctors on Grey's Anatomy with the thought "I wonder where I could buy that sweater?"

If so, than you are the target audience for a new website, SeenON, which launches November 15. Through partnerships with ABC Entertainment, NBC Universal, Twentieth Century Fox, CBS Paramount Television, E!, and Martha Stewart Omnimedia, SeenOn connects consumers with products seen on TV.

For example, if one evening you see one of the ladies from Wisteria Lane wearing something you admire you can read about it on the site. From the SeenON blog:

If you caught last night’s episode of Desperate Housewives then surely you didn’t miss Gabrielle in her undies. The revealing set was from the “Fifi” line of notoriously sexy lingerie house, Agent Provocateur.

Designers and stylists from programs such as "Grey's Anatomy" and "Desperate Housewives" will provide SeenON with information about the wardrobes, housewares, and sets shown on their programs. Users can search for products by show, movie, actor, or product type. The site directs users to websites where they can purchase the products mentioned. In addition, the site will offer shop-able video content that the company is calling Shopisodes.

Television advertisers will likely be excited about SeenON's service as it takes product placement to a whole new level. Sometimes product placement is done appropriately (Home Depot and "Extreme Makeover Home Edition") and sometimes not (the awkward and nauseating Oreo-centered episode of "Seventh Heaven").

SeenOn might allow advertisers to insinuate their merchandise into the fabric of a television show and get the exposure they want without interrupting the flow of the drama. Or, a service like SeenON could commercialize television and movies even more than they are today.

What do you think about SeenON's business model? Will viewers want to shop TV?
Is SeenON a great way to connect TV viewers with the products they admire? Or does it herald the end of entertainment for entertainment's sake and hasten the time when a TV drama or comedy becomes nothing more than an hour-long product showcase?

Posted by Leslie Taylor at 5:16 PM | 2 Comments

Fast Food Nation

This Friday, November 17, Eric Schlosser's best-seller, "Fast Food Nation: The Dark Side of the All-American Meal," hits the big screen. Directed by Richard Linklater of "A Scanner Darkly," fame, the film takes audiences on a tour of the real ingredients in American fast food, and none of them are beef.

Unlike Morgan Spurlock's "Super Size Me," "Fast Food Nation" is not a documentary, it's a drama. "Fast Food Nation" wasn't designed to make consumers feel good about indulging in the occasional Big Mac. On the contrary -- critics claim this film has the potential to change the fast food industry as we know it. I’m not ashamed to admit that as soon as the "Super Size Me" credits rolled, I ran to the nearest McDonalds to load up on artery-clogging (but otherwise totally harmless) burgers and fries. But "Fast Food Nation" portrays problems that are much bigger than the Hummers McDonalds passes out in happy meals.

Like the book, "Fast Food Nation" focuses on the human elements of America's quest for immediate gratification and transfat. Thanks to Schlosser’s book, transfat is now a four-letter word and is being eliminated from almost all restaurants and food products. Now, many say the movie's social commentary has the potential to quell the exploitation of illegal workers who fuel the fast food industry. Their struggles are portrayed by a young immigrant couple who come to America in classic Upton Sinclair “The Jungle” fashion -- full of hopes and dreams that crumble when the couple meets with horrific working conditions in a meat-packing plant.

What do you think? Are we, as Americans, comfortably resigned that fast food restaurants are trying to kill us as well as the American dream? Or must we stand up for our rights to guilt-free fast food? If Fast Food Nation changes people's minds about the industry, what will happen next?

Posted by Kathryn Tuggle at 4:49 PM | 5 Comments

The Old Kid on the Block

Where'd you watch your last movie? In the theater? On TV? It's increasingly likely that you watched it from your couch, after you pulled the DVD out of an envelope delivered by the U.S. Postal Service. And -- to Blockbuster’s dismay -- it's increasingly likely that the movie came from Netflix.

Continue reading "The Old Kid on the Block"

Posted by Josie Swindler at 4:27 PM | 1 Comment

November 11, 2006

Web 2.0's Special Dinner Guest

Lou Reed performing at Web 2.0 on Wednesday night. What else could you ask for?

The photo is a little fuzzy. Don't blame me, blame it on my Tmobile MDA's 1.3 mega pixel camera.

But here's a better photo from Dave Forrest.

Lou Reed at Web 2.0 Conference

> FC Now Web 2.0 Summit Coverage
> Slideshow: The Future of Web 2.0
> Slideshow: Jobs of Web 2.0

Posted by Lynne d Johnson at 12:37 AM | 23 Comments

November 10, 2006

A Social Networking Success Story

On Wednesday at the Web 2.0 Summit, Hyun-Oh Yoo, a CEO of SK Communications based in Korea, spoke about his company's social network, Cyworld, which he said was the largest social networking site in the world. Started in Korea, the site has attracted many first time Internet users who are in their 20s.

As reported by GigaOm, Yoo stated that "Cyworld2 has 20 million subscribers in Korea, which is 40 percent of the total Korean population, as well as more than 3 million users in non-Korean countries."

"The site has 22 million unique visitors per month, 20 billion page views per month, and $300,000 in daily sales of digital items. He also said the site sells 6 million songs per month and has 100,000 videos uploads daily (bigger than the publicly reported YouTube numbers)."

What's fascinating about Cyworld, is that it's a little bit MySpace, a little bit iTunes, as well as a little bit YouTube. It might even be said that it's a little Second Life, and even Sims, as users set up a virtual room where their avatar lives. Users exchange real money for acorns to purchase wallpapers, clothes for their avatars, furnishings, background music, banners, fonts, and other decorations.

Because of this, the social network's business model is not only an ad-driven one, as many other social sites in the US are, but it also incorporates the selling of digital tools that enable users to enhance their personal spaces. This is something that Wallop, a beta social network and spinout company from Microsoft, has embraced as a business model also.

The corporate world has also embraced Cyworld, setting up worlds there to accompany product launches. For critics asking where's the successful business model in social networking, Cyworld might be the answer.

> FC Now Web 2.0 Summit Coverage

Posted by Lynne d Johnson at 11:43 PM | Add Comment

Yepic Allows Bloggers to Sell Premium Content

There are many ways for bloggers to monetize content. Bloggers can make money by offering advertising on their site, or they can use their blog as a launch pad for their career. Now, a new service, Yepic, enables bloggers to earn money by selling their content directly to readers.

Yepic is a marketplace which allows writers to offer their articles for sale. Writers set the price for which they will sell their material. Right now, many articles on the service are free and the top per article fee appears to be $6.50. Articles on offer include "How to get into a top business school," "Writing JavaScript games using AJAX," and "Where to eat in Utah."

Yepic allows writers to embed images, video, and audio in their content. According to the Cedar Hills, Utah-based company's press release, Yepic will give content-creators "as much as 75% of the article price each time an article sells."

But will people really pay for content? My first impulse is to say "No Way!" The whole beauty of the Internet is its oodles of content--created by both amateurs and professionals--that is available for free.

On the other hand, the web is vast. Sometimes a lot of surfing is required to find out exactly what you want to know. Yepic offers a forum where potential content-consumers can post a request for content, designating "what I want to know and why" and who would be the "ideal author." A current content request is for an article about how to make the most of your Caribbean cruise. The ideal author is:

"Ideally someone who's been on a few cruises, preferably Royal Carribean ones to the destinations we're hitting. I'm not a penny-pincher, so if you are, please don't write the article."

If I was feeling lazy, or under time pressure, it might be worth $1 to me to have someone else compile information for me on my topic of interest--if there was no free clearinghouse for the information. Or, if I felt confident an author had expertise or a unique perspective that I could not find elsewhere online for free, I might pay for their content.

But, the diversity and enormity of the web makes it unlikely, for me, that a service like Yepic would have any content I wanted that I couldn't find elsewhere.

At a few dollars a pop, Yepic articles are cheaper than a book and certainly cheaper than an online course. If Yelp's content is comparable quality to a book or course, Yepic might have a successful business model. Otherwise, I'm skeptical.

What do you think of Yepic's business model? Do you think bloggers have a well of premium content for which people will pay? Would you use such a service as a consumer? As a content-producer?

Posted by Leslie Taylor at 5:38 PM | 14 Comments

"Borat" Provokes Lawsuit

“Borat” has already received an inordinate amount of buzz, but I couldn’t help writing this entry after reading that two fraternity boys filed a lawsuit claiming they were tricked into appearing in the mock documentary.

Judging from the movie’s box office proceeds, thousands of people flocked to see it. From Friday to Sunday last week, “Borat” brought in $26.4 million for 20th Century Fox from only 837 theater screens.

I waited in a long line to see “Borat” last Sunday. I found it hilarious, refreshingly irreverent, and at times off-the-wall outrageous (for example, the scene in which Borat, stark naked, fights with his grossly obese, also naked, producer). Since the movie was shot in Romania, a country neighboring and reminiscent of my native Bulgaria, I felt a conflicted, love-hate relationship with Borat’s fictionalized Kazakhstan.

Borat’s encounters with Americans from all over the country provided some of the most biting social commentary I’ve seen in a long time. One of the particularly memorable scenes involved precisely the fraternity boys who get drunk with Borat, making a variety of racist and sexist comments in the process.

In their lawsuit against 20th Century Fox, the frat boys said that they were tricked into participating in the movie, which made them “the object of ridicule, humiliation, mental anguish and emotional and physical distress...”

I can only imagine the shock of the frat boys when they saw themselves on screen, but I’m hardly convinced their lawsuit has any