Reem With A View

"Names and attributes must be accommodated to the essence of things, and not the essence to the names, since things come first and names afterwards." – Galileo

There is NO recession in Online Ad Spend..regardless of what TechCrunch says!

What on EARTH is TechCrunch trying to do? It has put up an article (with a prominent link/graph) form homepage saying: “the online ad recession is officially here”

On first glance it looks HORRIBLE …with almost a 50% crash in ad revenues… ALL hell to be broken loose in the online ad world which due its performance measures was supposed to be “recession proof” at least to a certain extent.

But on closer inspection of the ridiculous “chart” tells a different story. The author of the post, Erick Schonfeld , has published a chart with the vertical axis zooming from  7500 making the 2% year-on-year drop look like almost 50%!!!

But when you take the data and start axis at 0, which is the RIGHT WAY, we find there is very TINY fall in ad spend..nothing to panic about compared to tv/print spends.

Here is the chart with the zoom as published (as yet uncorrected) in TechCrunch:

TechCrunch misleading chart

And here is how the chart must ACTUALLY look when plotted correctly:

correct_chart

Clearly the data is being misrepresented to “make a point” as the author confesses. WHAT POINT?

And why is TechCrunch not correcting the chart as many readers in the comments have requested?

This is not good journalism!

Filed under: Media & Entertainment, News, Business & Current Affairs, , , , , , , , , , , , , , ,

Paul McCartney is right, but is the Music Industry wrong?

First, lets hear from Sir Paul McCartney :

“Anyone who does something good, particularly if you get really lucky and do a great artistic thing and have a mega hit, I think you should get rewarded for that.

“I’m in favour of that sort of thing.

He added: “The problem is you get a lot of young bands coming up and some of them aren’t going to last forever so if they have a massive hit that’s going to pay their mortgage forever.”

Source: BBC

Now, please read the following comment from DAVE  in the Silicon Alley Insider which brilliantly analyzes the mistake the Music Industry is making. The comment is written in such a superb manner, am going to put it here verbatim (since the author has given express permission to release it to the public domain.)

Dave:

The real problem is that the industry in general has not adapted to the changing market, and the officially offered releases are monopolistically overpriced. Before the internet, music was a tangible commodity, either a product, (in the case of CDs, cassettes, 8-tracks, records, etc) or a service (in the case of radio broadcasting, and concerts). The nature of a tangible commodity is that it is both desirable and scarce, and is thus valuable. In the case of music as a product, the intangible music was desirable, and the tangible medium on which it was printed was scarce. In the case of music as a service, the intangible music is the desirable part, and the scarce tangible part is “bandwidth”. (As in, a single radio station or live group can only reach a limited number of people)

The internet changed the market, but the industry is operating today as if the old market rules applied. In today’s open market, there is no scarcity inherent in product-music with which to demand value. Music is still desirable, but it is not inextricably tied to any tangible item. Basic economics demands that in any situation where supply is essentially infinite, value is essentially zero.

If money were the only issue, we could conclude that record labels are nothing but manipulative, greedy bastards, out to fleece consumers by destroying the free market and establishing a de facto monopoly over music. But money isn’t the only issue.

The mega hits McCartney is talking about are only possible due to popularity. Restricting distribution in any fashion hurts this popularity. As the labels are well ware, popularity can be leveraged into revenue generating activities. Popular groups can compel greater ticket prices and greater merchandise sales in any market, and greater CD sales in a traditional market.

In a traditional market, failing to restrict CD distribution increases costs and decreases profits. Piracy is seen as a direct threat to sales revenues. However, in an internet P2P market, the cost of distribution is borne by the consumers, not the publishers. The cost to distribute a billion copies is no greater than the cost to distribute a thousand. Using P2P, the cost to manufacture popularity is fixed.

The music industry currently markets only one group: people who are willing to pay for music. They villify and alienate another market: people who share music illegally. They completely ignore a third market: people who would listen to music if they didn’t have to break the law or pay for the music directly. This third market is arguably the largest of the three, it is virtually untapped, but direct marketing of this group is virtually impossible. You can’t make direct sales to this group, but you may be able to convert them into willing buyers; you may be able to get indirect sales – tickets and merchandise, for instance. You can do this if and only if you can reach them.

And here is where we learn that not only are the record labels greedy and manipulative, but they are also massively stupid. They have at their disposal a group of people ready willing and able to provide a revolutionary service, one that can reach a market the labels could only dream about, and instead of working with that group, they try to have its members thrown in jail! (Of course, this only brings more attention to P2P, resulting in more piracy, and compelling every increasing responses by the pirate community… The industry shoots itself in the foot at least twice)

For the first time in history, de-monetizing music distribution can result in greater profits for artists and labels. One of two things can happen: either the labels can adjust their business strategies to adapt to this, or some enterprising individual will create a new label around this new strategy, forcing the rest of the labels to follow suit.

The question is who will accomplish the goal first: Indie artists, or the legacy labels?

(As the author of this comment, I release it to the public domain, free of restrictions)

So,  Paul Mcartney is technically right about artists being paid for their work. But the Music Industry is definitely not doing the right thing by killign an amazing source of REVENUE for those same artists to save an “obsolete” revenue model. Apple I-Tunes is proof that people are willing to pay for downloads, and artists like Prince are proof that by offerring free downlaods, they get to charge a premium to their concerts and earn MORE.

Filed under: Media & Entertainment, News, Business & Current Affairs, , , , , , , , , , , , , ,

Op-Ed Columnist Roger Cohen of the NYTimes.com beats Bono!

Never expected him to out-write Bono in the NYTimes op-ed, but his spoof on Billy Joel’s  grammy winning song “We didn’t start the fire” as a “tribute” to President Obama of the US is a must read (or sing?). Have reproduced the words below. Enjoy!

Start the Fire
By ROGER COHEN
January 19, 2009

With apologies to Billy Joel, who’s more of a chronologist, and in tribute to a president, Barack Hussein Obama, representing a new post-cold-war generation of 21st-century Americans.

We Didn’t Start the Fire (2)

Bill Clinton, Tina Fey, capitalist China, O.J.,

Asia rising, Facebook, Kareem Abdul-Jabbar

Dick Cheney, Rumsfeld, Ugg boots, Seinfeld

West Bank, Gaza City, Tupac Amaru Shakur

Mohamed Atta, W.M.D., Harry Potter, Reality TV

Tom Cruise, American Beauty, MP3, Oprah Winfrey

Schwarzenegger, YouTube, America’s got organic food

Armstrong, blogosphere, Monica Lewinsky

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire

No we didn’t light it

But we tried to fight it

Vlad Putin, Medvedev, Assad, Posh-and-Becks

The West Wing, Y2K, massacre in Falluja

Britney Spears, Spike Lee, Kurt Cobain, Sarkozy

Mia Hamm, Heath Ledger, Viagra, Napster

Lindsay Lohan, skinny jeans, Boston’s got a winning team

Lehman Brothers, A.I.G., subprime, Ponzi scheme

Rwanda, Darfur, Bosnia, and a billion poor,

Tehran, Hezbollah, trouble with the jihadis

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire

No we didn’t light it

But we tried to fight it

New Orleans, Bolaño, Sarah Palin no-go

TiVo, Hu Jintao, and the vegan-eco crowd

Tony Blair, Paris Hilton, Princess Di, Bin Laden

Pyongyang, the renditions gang, Roger Clemens in a cloud

ACT UP, Infinite Jest, O.J. Part Two, Johnny Depp

iPhones, Federer, Who Let the Dogs Out?

Halle Berry, cloned Dolly, and another Kennedy

Jon Stewart, American Psycho, tsunami, Danger Mouse

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire

No we didn’t light it

But we tried to fight it

Sedaris, Unabomber, Girls Gone Wild, Nasrallah

Jay-Z, Shanghai, shock and awe in Baghdad

Amy Winehouse, Imus, gases of the greenhouse

Kelly Ripa, Maureen Dowd, Ted Williams gone mad

Outsourcing, Mumbai, so many didn’t have to die

David Blaine, human rights, and Napoleon Dynamite

Mandela, Madonna’s ex, abstinence, safe sex

Rabin blown away, what else do I have to say?

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire

No we didn’t light it

But we tried to fight it

BlackBerry, global mall, Hillary Clinton standing tall

Tiger Woods, Barry Bonds, MySpace, The Corrections

Rushdie, Starbucks, Channel Tunnel, Spurlock

American Idol, Black Hawk Down, Miracle on the Hudson

Sopranos, Cougars, Da Vinci Code, life on Mars

Saddam hung, Mugabe, traumatic stress, mission creep

Social networks, match.com, iChat, Amazon,

Terror cells, endless war, I can’t take it anymore

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire

No we didn’t light it

But we tried to fight it

Hawaii, Kenya, Kansas and Jakarta

Harvard, finding God, social work, Axelrod

Red state, blue state, unity can no longer wait,

A time to reap, a time to sow, we will close Guantánamo

Iowa, Yes We Can, McCain was just an also-ran

I Have a Dream, Bush out, a black man in the White House

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire

No we didn’t light it

But we tried to fight it

We didn’t start the fire

It was always burning

Since the world’s been turning

We didn’t start the fire …

Filed under: Media & Entertainment, News, Business & Current Affairs, , , , , , , ,

Is the US Social Security system the world’s largest PONZI scheme?

I think this cartoon below by Gary Varvel published in the Indystar.com is worth a million words if not a lot of thought.

madoffsocialsecurity

Basically in the Social Security method, American which have retired  enjoy beneifts which are paid for by the Americans working today and today’s Americans by tomorrows generation. The problem is the you can’t forecast of Americans of tomorrow will inherit the same economy as today. This is nothing but a giant PONZI scheme. Except its much SIMPLER than the complicated Madoff scandal, and is so blatantly obvious that people miss it.

Filed under: News, Business & Current Affairs, , , , , , ,

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