MediaFile

Online advertising catches up to newspapers in 2010

newspapersThe newspaper industry had a lot of bad knocks this year. Advertising revenue continued to decline, when just about every other media sector — like local broadcast TV, for example – rebounded beautifully. For newspaper companies  the term “moderating ad revenue declines” has become the new flat.

Now comes word from the research firm eMarketer that online advertising in the U.S. is expected to outgun newspaper advertising in 2010. For the year, online ad spending is expected to rise about 14 percent to $25.8 billion, while print advertising spending in newspapers is expected to decline about 8 percent to $22.8 billion. The research firm includes everything from Google and eBay to the New York Times in its online advertising category.

eMarketer also points out that total ad spending for newspapers including print and online will reach $25.7 billion in 2010, which it says is ”shy of the $25.8 billion advertisers will spend on Internet ads.”

Except it all depends on how you do the math. The $25.8 billion figure for online ad spend also includes Internet advertising spending on newspaper websites.  According to the Newspaper Association of America, newspapers online ad revenue hit about $2.7 billion in 2009. So taking out that figure, combined print and online advertising revenue for newspapers will still eclipse online advertising spending at all other websites except newspapers for 2010.

Yet, any way you slice it, the numbers still point to a worrisome trend: Any gains that newspapers make with online ad revenue is not enough to offset print losses.

Wall Street Journal snags another hotel chain

DOWJONES-NEWSCORP/Under the ownership of Rupert Murdoch’s  News Corp, the Wall Street Journal has made no bones that the New York Times is enemy No.1. But that hit list doesn’t stop at the Gray Lady. From time to time, the Journal pivots to set USA Today in its crosshairs — and its latest actions mark a move in that direction.

The most recent flag the Journal captured involves Choice Hotels. Earlier this week, the Journal announced it will become the “preferred newspaper”  beginning in January for guests at more than 3,700 Choice Hotel properties including Comfort Inn, Quality Inn and Clarion Hotel. What was the “preferred newspaper” before the Journal swooped in? That would be USA Today.

USA Today begs to differ. A spokeswoman for the paper emailed the following: “USA Today remains a preferred vendor for Choice Hotels in 2011.”

“Jackass 3D” tops “Avatar” on Viacom Chief’s movie list

Viacom Chief: Favorite 3D movie not Avatar

“My favorite 3D movie of all time is Jackass 3D,” Viacom’s Chief Executive Philippe Dauman said on Wednesday at  Reuters Global Media Summit. The movie, which grossed $116 million in the United States, according to Box Office Mojo was  “relatively low cost” and “significantly profitable,” Dauman said.  “You’ll see more of that coming.” 

What else might the future hold for Viacom in 3D? Possibly Snooki.

Reuters Breakingviews columnist Rob Cox asked Dauman if audiences can  soon expect a Jersey Shore in the third dimension.

“I’d love to see that,” Dauman said, “Gym, tan and laundry in 3D.”

Earlier this month, Viacom said it is selling Harmonix, the video game publisher behind Rock Band and this year’s  Microsoft Kinect hit “Dance Central.”  Dauman said the sale is proceeding swifty but declined to divulge details prospective buyers.  Media Summit  guest chief executives Bobby Kotick and Strauss Zelnick  from Activision Blizzard and Take-Two  respectively, said they’re not interested.

Time Warner says no advanced degree needed for device management

jeff bewkesTime Warner Chief Executive Jeffrey Bewkes stopped in at the Reuters Global Media Summit and shared his vision for a future where people will get all their entertainment needs on every device, like smart phones, tablets and computers– but said it must be easy for consumers.

“We don’t want in the future for people to have to have  a Phd in device management,” Bewkes told Reuters journalists, but stressed  that the future of the media business clearly lies on “more and more devices not less,” he said.

Bewkes noted Time Warner was the first company to come up with the idea of putting its network and programming out on demand on all platforms at no extra cost, referring to his TV Everywhere initiative that will offer streaming content free to customers who subscribe to cable.

GlobalMedia-iPad cautionary tale: What not to watch, up close

SINGAPORE/Media executives love to go on about their love of the Apple’s iPad. But the tablet isn’t suited for everything. Walt Disney’s Anne Sweeney relayed her recent experience catching up on an ABC  TV show using the  popular tablet.

Sweeney missed the season finale Grey’s Anatomy and, while traveling, decided to watch the show in her hotel room. The episode was particularly gory — several characters were picked off by a aggrieved man who held the hospital at gunpoint.

“It was a massacre,” Sweeney said at the Reuters Global Media Summit. “There’s nothing like seeing that on your pillow. There are some things you might not want to watch that close on your iPad.”

GlobalMedia-ABC News in talks with Bloomberg

MEDIA-SUMMIT/DISNEYThe news divisions at the big networks have been in a world of hurt lately as advertisers seek out younger consumers and viewers. This has lead to big cutbacks in staffing and resources over the years as the networks strive to keep profit margins from deteroirating even further.

ABC is certainly no expectation and has experienced managment upheaval when ABC News president David Westin announced in September his departure partly due to the financial situation and the pressure to increase profit margins.  

Speculation has persisted that ABC News parent company, Walt Disney, has been seeking to untie itself from the division– rumors that similary dog CBS.

Martha’s Vineyard Gazette sold to KKR co-founder Kohlberg

RTRQKOPI’ve always been thankful that my grandparents were good at playing the real estate game. Among their unlikely coups was buying a house in the 1960′s in Edgartown, the tony enclave on the island of Martha’s Vineyard, whose exclusive address had no correspondence to their income level. If they hadn’t bought it, there’s no way that my journalist’s salary would have been able to scoop up property like that. In the more than three decades that I’ve been going there, I’ve become a regular reader of the Martha’s Vineyard Gazette, the enormous broadsheet newspaper that has resisted the cost-cutting size reductions that many other newspapers in the United States have sustained.

That allegiance to the paper (and its weekly competitor, the Martha’s Vineyard Times), as well as my continuing nostalgia for my former media beat — the future of newspapers, publishing and journalism — made it all the more interesting when I read on Friday that the Reston family is selling the 164-year-old paper to Jerome Kohlberg. It’s the story that has it all for a business reader, really: Daily paper, read by rich and powerful residents who are captains of the financial world (and hopefully Reuters clients), sold to a true bigwig of the private equity world, and a strange connection to The New York Times to boot.

Richard Reston took over editing and publishing the paper, as the Times’s Jacques Steinberg relates in this 2003 story, after leaving the Los Angeles Times where he was a foreign correspondent with stints in Northern Ireland, the Soviet Union and  Vietnam. His family has owned the paper since 1968, as the Vineyard Gazette reports here, when the late James “Scotty” Restonbought it from Henry Beetle Hough. Scotty Reston, of course, was a top editor at The New York Times for many years. ((In a bit of Vineyard cultural trivia, the Gazette has long been seen as the newspaper of the tourists and the seasonal visitors, while many year-round islanders favor the Times).

New York Times introduces film club

Nothing else seems to have helped newspapers reflect the stronger economic recovery of the rest of media. Old films can’t hurt.

The New York Times forged another path to the club-based membership service — a trend that has grown in popularity among newspapers. Today the newspaper debuted the New York Times Film Club, created for “an audience passionate about movies,” according to the press release.

Membership to the club affords you two red-carpet screenings of remastered Hollywood classics as well as six preview viewings for upcoming releases. The yearly membership costs $100 for individuals and $175 to add another person.

FT hearts tablets so much, it’s spreading the joy among staff

SINGAPORE/It’s not hard to see why newspaper companies, saddled with plunging circulation and big iron presses , are so ecstatic over tablet devices. They bring a form of hope that hasn’t crossed this industry’s path since newspapers dominated classified advertising in the 1980s and 1990s making them fat with revenue and profits. Tablet computers, like Apple’s iPad and Samsung’s Galaxy Tab, just might spark renewed interest in wilted newspapers among consumers and help ease the legacy costs of paper and ink.

Consider News Corp Chief Executive Rupert Murdoch who has often expressed his love for the iPad and is busy building a team to produce a tablet-only newspaper The Daily.

The  Financial Times is just as enamored and is spreading the joy offering its employees a nice chunk of change to go toward the purchase of an iPad or other tablet.

Orb TV: the latest device bringing web to TV

Orb TV alonephotoAdd Orb TV to the list of devices that is attempting to bring the web to the TV. The Oakland, Calif.-based company launched the product on Thursday — a hockey puck shaped object (pictured on the left) that promises to deliver all sorts of content  available on the Internet straight to your TV.

Orb TV is selling for $99 (purchased only through its website)  and can help you find any show regardless of the source including content from Hulu, YouTube and CBS or from your computer like photos, according to Orb TV.  Users control the device through a smartphone app and can search simply by typing in a show like “Glee.”

“Our belief is that the evolution of digital media has been stymied,” said Orb TV CEO Joe Costello. “The whole premise it that it should be enjoyed anywhere, anytime and to make it simple. The last part hasn’t happened.”