Blog Archive

Making money from multiscreen

Posted on June 17, 2013 by Farah Jifri

As smart devices (tablets, smartphones, etc.) become ubiquitous, broadcasters are keen to capitalise on the small screen as an adjunct to the large. This is all well and good, and there are some very nifty bits of tech out there that will help them do this. However, the issue of how to make money out of second-screen services in the long term remains slightly hazy.

The evolution of streaming music services in the telco space could offer some answers. First there were online subscription music streaming services Spotify and Deezer in France, which as smartphones took off, made their way into the mobile space, offering app-based access to music on the go.

Several telcos and mobile operators soon tried to muscle in on the streaming music action – with varying rates of success. Vodafone Music, for example, is far from a household name. But it wasn’t all doom and gloom. Danish incumbent TDC was among the first to provide an own-brand music streaming service (TDC PLAY) free to voice (fixed and mobile), broadband and pay-TV customers – and more importantly to make a success of it. TDC attributed a 50% reduction in churn for broadband customers to its provision of PLAY, which more than justified the cost of running the service and investing in music rights. Portuguese incumbent TMN’s MusicBox service, bundled free to its broadband, telco and mobile customers, was also one of the more successful projects in this space. The operator now provides MusicBox as a standalone service which non-TMN customers can subscribe to – allowing it to monetise what has long been a free value-added service (VAS).

While some telcos decided that an own-brand music streaming service was the way to go, others sought to partner with a third-party. 3 led the way in this approach, partnering with Spotify – initially in Sweden and then in the UK and other markets – to offer the music service at a discounted rate as a value-add. Orange followed suit, partnering with (and acquiring a stake in) Deezer, which is now available at a reduced price to customers in most of its markets.

As the small screen becomes as important for accessing content of all types as the large one, the question of how to actually make money from these services is very much front of mind. Those broadcasters looking to get in on the second-screen action could do a lot worse than look to the example of how telcos have exploited streaming music as a VAS. Sports would be the ideal genre to act as a test bed to gauge if consumers will actually reach into their wallets for second-screen content.

Most sports broadcasters – Sky Sports, ESPN and Canal+ to name a few – already have companion apps, where they provide additional content such as live stats, aggregated Twitter feeds, highlights, live video streams and so on. At the moment these app-based content services are provided free to subscribers and used as a means of creating differentiation and stickiness.

The next logical step would be to operate a ‘freemium’ model where the basic service is offered for free, but additional premium content is paid for. TMN’s offer of MusicBox to non-customers is another option which would allow broadcasters to make money from a service they currently provide free of charge.

Once sports rights are broken up into TV and second screen – instead of lumping it all together – the issue of monetising second screen content will become much more pertinent. Broadcasters that already have second screen services up and running will be best placed to do this.

Should tech start-ups use a PR agency?

Posted on June 11, 2013 by Farah Jifri

Fiona Graham argued recently that a costly PR campaign is not really necessary for start-up technology businesses – as you can do a lot of PR-related activity yourself thanks to resources available on the Internet. Her argument rings true, but only to a certain extent. As a start-up funds are tight and there are better things to spend your money on than an expensive flashy PR campaign. But that’s not to say a start-up has no need for a PR agency. Once you decide to tell the world about your product or service, that’s when you need to think about PR – but of course exactly when this point is reached will vary from company to company and depends in large part on your marketing objectives, business plan and so on.

Having an agency on board allows you to focus on the business of running and growing your company as they can do a lot of the ground work for you. The right PR agency can help formulate messaging from the get-go, enable you to get your story out to your target audience efficiently and keep your brand front of mind. PR agencies already have strong relationships with journalists and the blogging community, which they can exploit for your benefit, and can also draw on past experience of taking start-ups to market in your chosen field. Another key advantage of having a PR agency is having an objective third-party view on tap; a well-informed sounding board that is able to take a step back and isn’t too close to your product.

Long gone are the days when PR involved firing off a couple of press releases and then taking a journalist out for a long liquid-heavy lunch in a bid to curry favour and get your story out there. The industry’s come a long way since then. PR is not as easy as it seems from the outside looking in – and this is certainly the case if your agency is on the ball. If you have visions of Absolutely Fabulous, then you’re way off track.

A good agency should be an extension of your company, on your wavelength, and always ready to give advice and guidance when you need it. They’re there to help you avoid the PR pitfalls, so it’s important to avoid an agency with a yes man attitude, with little in the way of two-way communication. This really does defeat the purpose, after all.

Is Tech about to become public enemy number one?

Posted on June 10, 2013 by Errol Jayawardene

Forget ‘Fred the Shred’, are we about to see Apple’s supremo renamed ‘Tim Cook The Books?’ Andrew Hill eloquently argued in the FT recently that, after bankers, technology executives could become the next public enemy number one.

His argument goes like this. ‘The tax avoiding, privacy flouting, cheap labour (amongst other) concerns about some of the world’s technology giants will become a bitter pill to swallow (or indeed one smartphone crack too far, as you might say) and consumers will begin to turn on them faster than a champagne-swigging banker at an anti-capitalist demo.’

So should the tech industry and its PRs really prepare for a major backlash? Well I’m not so sure. Yes, any PRs should be prepared (not to mention ethically concerned) if their company/clients are splashed across the news accused of being engaged in questionable practices. Strong campaigns like Buy Nothing Day which took on Amazon for its tax avoidance showed how it can hit them where it hurts – their bottom lines. And companies and PRs need to quickly react to these issues (real or perceived) with real measures to address the public’s concerns.

But it’s unlikely that tech’s big wigs are going to be lined up on a public dart board ahead of bankers anytime soon. For one, tech companies can count themselves lucky that other public figures – including politicians, footballers, pharmaceutical giants, estate agents and, dare I say it, PRs -  do far too good a job of vying for the number one spot. Also public anger at issues like tax evasion, pollution or indeed child labour aren’t just a tech sector problem. Just ask Starbucks, BP or Nike. Crucially people still trust tech brands and the value their innovations deliver – especially those that make our lives easier. And importantly, they also create shiny new toys for us to play with every couple of months!

I’m not saying that concerns about tech giants avoiding tax or selling our data are trivial; they certainly aren’t. As technology becomes a bigger part of our lives, tech companies that go against the public grain are likely to become bigger targets for public outrage. It’s just that the number one spot isn’t going to go to the tech industry any time soon.

Glasto gets the digital touch

Posted on May 31, 2013 by Farah Jifri

This year’s Glastonbury Festival is going to be ‘the most digital’ yet according to the Beeb. The 2012 Olympics gave us a taste for in-depth coverage accessible via multiple channels, online and via mobile devices – not to mention via over-the-top (OTT) services such as BBC iPlayer –including the new iPlayer Radio.

The London 2012 Olympics saw the highest consumption of digital data on record in the UK – Vodafone for instance saw its largest volume of data traffic for 40 years on Super Saturday alone. The BBC is putting its experience of broadcasting the event to use at Glastonbury, providing 34 hours of coverage via all four of its TV channels as well as 59 hours via Radio 1 and Radio 2. Online access to six live streams from the festival’s many stages will also be available via any smart device, including games consoles and connected-TV sets – and for the first time, mobile access via smartphones and tablets is being provided.

Essentially, if you’re not a fan of mud, endless queuing for the loo and a lack of shower facilities, then get yourself a tent (purely for atmosphere, you understand) and enjoy all the joys of the iconic music festival from the comfort of your own home.

The lorries ‘capture’ Vicon as their latest client

Posted on May 30, 2013 by Hannah King

Ever watched films like The Avengers or Iron Man and wondered how the characters look so lifelike? Yes, us too. Well it’s thanks to people like motion capture pioneer, Vicon, whose high-end cameras and 3D processing software are the creative force behind character movement in many animated film, TV and games productions. So we’re really pleased to be working with them both in the UK and US to help build their corporate brand and increase exposure for upcoming product launches. But it’s not just about films and games. Vicon technology plays an essential role off-screen too – innovative work in the medical field is helping to rehabilitate injured soldiers, while its solutions enable the aerospace and car industries to enhance design and motion.

Vicon CEO, Imogen Moorhouse, said: ‘We’re very excited about working with Red Lorry Yellow Lorry to help tell the Vicon story. Their enthusiasm, understanding, passion and knowledge for what we do really shone through at the pitch. Their broad technology experience and sector expertise in our key media and entertainment, life sciences and engineering sectors, plus their ability to run an on-the-ground integrated campaign in both the UK and US, made it a straightforward decision to choose them.’