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e-commerce, for better or worse

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On Wednesday morning last week, a few more people than usual were probably interested in picking up the morning paper.  However, the New York Times was nowhere to be found at many new stands here in Manhattan.   The new parallel online economy was making itself felt – papers were bought in bulk throughout the city long before rush hour, and now that historic front page can be yours, suitable for framing – Buy It Now for only $99.99.

Similarly, a CNN story this morning aired regarding the online sale of Obama inauguration tickets ,  which are intended to be distributed free of charge through members of the incoming congress (currently, VIP tickets are going for the low five figures).

These two end-runs around the intended distribution mechanism put me in mind of the situation my wife faced earlier this summer when attempting to surprise me with birthday tickets to the much in-demand iMax showing of The Dark Knight during the first week of its release (I know: best. wife. ever.)  It turns out she had been trying to buy them for days via AOL’s Moviefone service , but strangely the tickets (released in maximum lots of 5) were constantly sold out: regardless of how often (or when) she checked, there were just never any tickets available – for that particular movie, the AOL site was essentially broken.  She then checked craigslist and found out where all those tickets went: a thriving business in (drastically marked-up) iMax Batman tickets.  ‘Entrepreneurs’ were grabbing all tickets within seconds of release and were reselling them on craigslist for 3 to 4 times the original price – depending on your point of view, either a complete hijacking of the system by a unnecessary additional layer of middleman, or a shining example of capitalism at its finest.

To someone who’s just paid $80 for two tickets to a movie, it seems more the former – although of course, with the power and convenience of the internet comes the occasional disruptive gaming of the system – so chances are, this kind of thing will be with us for a while.

I still like my internet.

  

dailies’ digital balancing act

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Business Week recently ran a telling article about the state of the German dailies industry.

The magazine argues – despite dropping ad sales overall – “special interest”-focused print media seems to do reasonably well in an otherwise hotly competitive marketplace for news.

Compared to many of its ailing US peers, popular dailies such as Berlin-based Bild apparently knew to focus on exclusive content, and embrace (rather than fight) innovation early enough to succeed. 

What’s more, Bild and other dailies managed to benefit from German readers’ somewhat slower flight to online media alternatives. Turns out, in an increasingly crowded field of German dailies publishers, readers seem to find solice in established print media brands they have known for years.

Still, competition remains tough; with increasing pressure not just from semi-professional and user-generated news sites, blogs, and online video, but also from at least 600 branded online editorials trying to compete for diminishing audiences and a shrinking ad revenue pie.

In the US a similar “doom-and-gloom” scenario persists, but the “pain” of market share loss felt by state-side newspapers seem more urgent compared to their German peers.

Seeking a solution to the mess, the Newspaper Association of America recently published its own state-of-the-industry stats, and, along with that, recommended 8 steps towards dealing with its own challenges of dropping circulation and ad sales.

Meanwhile, over in Germany, Bild intuitively took some of these recommendation to heart, yet went beyond its US peers’ 8-step plan.

Among other things, it partnered with Germany’s #1 consumer online portal, Deutsche Telekom-owned t-online.de, and later, started selling pre-paid mobile phone services at newsstands, right where its dailies sell.  (The service affords customers unlimited online access as long as they are reading bild.de online).

While the former provided instant traffic boost to its first branded online site, the latter helped to make up for revenue losses from ad sales moving to the Web. 

Of course, Bild is infamous for its daily coverage of sex and crime. Unlike in the US, nudity not a problem to the extend shown (think topless models on the cover looking for a date), maybe its the oldest trick in the book that does the trick for Bild.

I doubt this would be an option for Bild’s US newspaper publishing peers.

UPDATE:

What’s good for the goose is good for the gander. Today, the New York Times reported about BusinessWeek’s planned launch of BusinessExchange.

The Wiki-meets-social networking sites seeks to amalgamate professional and user-generated news into a new and (hopefully) successful online news experience.

Clearly this is BusinessWeek’s own attempt to fight off lagging ad sales from ongoing audience fragmentation and ubiquitous “anytime, anywhere” content competition.

  


The articles posted on digitalmissive.com reflect the personal views and opinions of Brian Ales and/or Andreas Wuerfel, and as such do not necessarily reflect the positions of our employers, clients or their affiliates. Furthermore, any views or opinions expressed by visitors commenting on articles posted on digitmissive.com are theirs and theirs alone, and do not necessarily reflect ours.