Friday, September 28, 2012

News Corporation - Have I got news for you

The Murdochs’ scandal-plagued media company has proved surprisingly resilient

The entertainment division, which includes News Corp’s television and film assets, should thrive as a stand-alone firm. Cable TV is next year expected to contribute 62% of News Corp’s profits (a far greater proportion than the satellite broadcasting for which it is better known in Europe); it will be the main driver of growth over the next few years and is the apple of investors’ eyes. The company has positioned itself to benefit from pay-TV growth in Asia and Latin America. Around half of News Corp’s total revenue comes from outside America and Canada, double the proportion at its main rivals.

Wednesday, September 26, 2012

Eugene Kaspersky - A tech tycoon who values privacy

The co-founder and chief executive of Kaspersky Labs, the Russian internet security company, is proud of his high-level contacts – but says it is also worrying. “It is nice to be recognised, but it’s bad, too. The situation on cyber security must be so serious now if I am recognised as important.”

Mr Kaspersky was a cryptologist and officer in the Soviet army when he became fascinated with computer viruses in the 1990s. After developing antivirus programs for a civilian IT company, he spun out the division in 1997 when the parent company was hit by the Russian financial crisis. “I had no choice,” he says. “I had a family with two children and I was looking for a way to make extra money.”

Tuesday, September 25, 2012

How did a Russian mobile network get hijacked in Uzbekistan?

As a Russian company used to working in the thorny markets of the post-Soviet world, MTS hoped it would be immune from the shakedowns that have hit other companies operating in Uzbekistan. The Russian telecoms giant, however, has been forced to write hundreds of millions of pounds of cash and assets off its balance sheet after the ruthless pursuit of its Uzbek arm.

The criminal case, which involved over 60,000 pages of evidence, was heard in just two weeks, while the separate case that stripped MTS of its operating licence took just 14 minutes. Chaos ensued as millions of people across the country were left with non-functioning SIM cards. "I have worked in Russia and across the region since 1988 and I have seen a lot of things but I have never seen anything quite like this," said Mr Kozin.

Monday, September 24, 2012

Facebook raises fears with ad tracking

Facebook is working with a controversial data company called Datalogix that can track whether people who see ads on the social networking site end up buying those products in stores.

Datalogix has purchasing data from about 70m American households largely drawn from loyalty cards and programmes at more than 1,000 retailers, including grocers and drug stores. By matching email addresses or other identifying information associated with those cards against emails or information used to establish Facebook accounts, Datalogix can track whether people bought a product in a store after seeing an ad on Facebook.

For creativity, forget the funky office

Google wants all visitors to conclude that it is individual, quirky, fun, creative and, above all, deeply cool

All would be forgiven if it could be proved that this visual clamour made people more creative. We know that in offices where people don’t talk, creativity is lower.

I’ve just been watching a TED talk given by Steven Johnson, who argues that the best place ever found for ideas to mate was in the London coffee houses of the mid-17th century. A contemporary painting of the first one shows a floor made of brick, a table, some chairs, some coffee and a lot of people, and a lot of natural daylight too.

High-tech fashion - Burberry goes digital

A British fashion giant is banking on technology to lure back customers

Her most controversial plan is called “Customer 360”. The aim is to entice customers to allow Burberry to record their buying history, shopping preferences and fashion phobias in a digital profile, which can be accessed by sales staff using hand-held tablets. Using it, an assistant can tell what a customer in Brazil last bought on a stopover in Paris—and what they last said about Burberry on Twitter.

James Bond Appears in New 'Skyfall' Heineken Ad

Bond Girl Berenice Marlohe also stars in the video set on a train.

The release of Skyfall is still more than a month away, but fans can get another peek at Daniel Craig’s James Bond and new Bond Girl Berenice Marlohe in the new ad for Heineken.

Doritos offer chance to work with Transformers director Michael Bay

Competition to create advert to be screened during US Super Bowl could win aspiring film-makers role on Transformers 4

The overall winner will then be decided by USA Today's Ad Meter ranking of Super Bowl commercials, with the lucky film-maker awarded the chance to work with their hero, in an unspecified capacity, on his next production, which is Transformers 4.

Thursday, September 20, 2012

The Final "In the Spotlight" Column

This week is my last column for The Moscow Times after about six years of watching bad television and writing about Ksenia Sobchak. 

The idea of the column was basically to read a lot of gossip magazines and watch trashy television. Back then no foreign journalists ever seemed to write about show business and television, as if people spent every waking moment thinking about Mikhail Khodorkovsky. It seemed fair to write about who was on the cover of Russia's most popular magazine, 7 Dnei. And why they were all so keen to show off their new bathroom fittings.

CNN’s woes - Unbiased and unloved

Life is hard for a non-partisan cable news channel

In the year to mid-September an average of 577,000 people have watched CNN during primetime, 25% fewer than tuned into MSNBC and 69% fewer than Fox attracted. Ratings affect CNN’s two revenue streams: sales of adverts and the fees that cable operators pay them to carry the channel. CNN, which is owned by Time Warner, has a thriving international division. Yet America accounts for 80% of its revenues, so a slump at home hurts.

The business of sport

When muscular millionaires clash with brash billionaires

Sports broadcasts are growing more valuable. No other form of entertainment persuades viewers to tune in so reliably at a specific time, nor to watch a show live rather than recording and skipping the adverts. This means that sports teams are worth more than ever, says Will Chang, a serial investor in teams such as the San Francisco Giants (baseball) and DC United (soccer).

The Guardian’s future

No newspaper is having an easy time, but one faces unique challenges

The Guardian is now the third most popular newspaper website in the world, after the Daily Mail and the New York Times. Yet digital advertising is not bringing in nearly enough money to offset print losses. The Guardian’s digital revenues were £46m last year, but advertising accounted for less than £17m of that, with the rest coming from things like online dating and sales of iPad apps. Overall display-advertising rates have fallen as supply has increased. National news sites now fetch only around £7-9 for 1,000 impressions, down from £12-15 before the financial crisis, according to one estimate.

Twitter jokers ruin 'Why I shop at Waitrose...' promotion

A social media stunt by upmarket supermarket chain Waitrose failed spectacularly when people were asked "I shop at Waitrose because..."

Many of the tweets were derisory about the upmarket chain's reputation for catering for the middle-class shopper, typified by the 4x4 driving yummy mummy.
The Twitter teaser was released on Monday and instead of messages praising their ethical ranges and organic meat, they have received some upmarket put-downs.

Monday, September 17, 2012

5 notable deaths in the social media world

Ping heads off to the great social network in the sky, and we look back at once-buzzed-about startups that suddenly stopped

Last week, Apple CEO Tim Cook announced the end of Ping.

Ping, as you've likely forgotten, is the iTunes social network that sought to capitalize on people's love for music on an Apple-driven platform.

And attempts to create a new social media show no signs of wavering; over the weekend, it was reported that the Winklevoss twins, of Facebook litigation fame, are backing a social network exclusively for professional investors.

In light of the Winklevii's newest attempt and the closing of Ping and – though it hardly seems necessary – to forewarn others, we present the social web's top five cautionary tales:


Saturday, September 15, 2012

An A-Z of business quotations - Advertising

“In our factory, we make lipstick. In our advertising we sell hope.” Charles Revson, founder of Revlon (1906-95)

An A-Z of business quotations - Marketing

“MARKETING is dead.” So said Kevin Roberts, boss of Saatchi & Saatchi, earlier this year. Generating headlines for his company as it did, there was an obvious irony to his remarks. Still, the death of marketing is regularly reported in the academic literature; social media and the internet are usually cited as prime suspects in its dispatch. It is hyperbole, though. The channels may have changed but the underlying principles of marketing remain true. “The only way on earth to influence other people is to talk about what they want and show them how to get it,” wrote Dale Carnegie in 1936. It might be a strategy for a brand’s Facebook campaign today.

The Watch-Phone is finally here

Jonathan Margolis on the Italian made device

Первые в мире поистине интеллектуальные часы

Inside Obama's HQ

In the most tech-savvy campaign yet, the ‘big data’ push to keep the President in power uses technology to micro-target voters like never before 

When he was appointed the campaign manager for Obama’s re-election, Jim Messina didn’t rush out to sit at the feet of the political consultants who had done the job before him. Messina wanted to find out how to reach voters with personal messages to persuade them to turn out to support the president.

So the former White House deputy chief of staff went to Hollywood and Silicon Valley to see top executives at Apple, Facebook and DreamWorks to get up to speed on technology and marketing. Messina counts Eric Schmidt, the executive chairman of Google, as a mentor, according to Bloomberg Businessweek.


Thursday, September 13, 2012

In the Spotlight - The Call of Fate

This month, NTV launched a new reality show, "The Call of Fate," where sleazy "model producer" Pyotr Listerman helps a millionaire choose from a harem of young women.

The idea of the show is close to that of the U.S show "The Bachelor," where women compete for the affections of a man who has been deemed highly eligible. But NTV takes away any semblance of romance or gloss by picking Listerman as a judge.

The economics of watching TV

The irrationality of couch potatoes

The explanation that most fits, say the authors, is procrastination: TV viewers put off changing channel till the last possible moment, even if they prefer the other side. This is consistent with findings that folk do not cancel gym membership even when they no longer use the gym; and irrationally delay contributing to their pensions. The homo economicus model is defunct: in TV, as in other things, a little dose of paternalism may help.

Wednesday, September 12, 2012

Mega phone

What is the impact of the iPhone on the mobile market?

MILLIONS of iFans eagerly await the new iPhone, which is expected to be revealed on September 12th and to go on sale later this month. Analysts expect it to outsell Samsung's Galaxy SIII, its nearest rival, which has shifted over 20m units worldwide since its launch in May. Each new model of the iPhone has sold as many units as all previous versions combined. Since the launch of the original iPhone in 2007, it has brought in $150 billion in sales revenue, with $74 billion of that in the past year. The iPhone is Apple's biggest product, accounting for 53% of the company's revenue. Indeed, if the iPhone were spun out as a separate company it would be bigger than Microsoft, whose revenues were $73 billion last year.


Zuckerberg admits Facebook wasted years

Mark Zuckerberg, Facebook chief executive, admitted the social networking company had “burned two years” betting on the wrong mobile technology, in his first public comments since the company’s poor stock market debut in May.

Mr Zuckerberg emphasised that the company was now integrating mobile into every aspect of its business and had made several internal changes to product development to keep it in focus. He said these were based on data and his own intuition.

“We are a mobile company now.”

Tuesday, September 11, 2012

Andy Murray's US Open win should lead to global sponsorship millions

Tennis star's commercial income estimated at £7m-£8m. 'He could triple his earnings, it is that significant'

"Off court, he could triple his earnings on the back of this, it is that significant," says Nigel Currie, director of Brand Rapport, whose clients include Jaguar and Vodafone. "Golf and tennis are two of the richest and two of the most global sports, so when you reach the top in this sports, the possibilities are boundless," he said.

Currie believes companies such as Gillette, which has sponsored Beckham, Tiger Woods and Thierry Henry, make a bee-line for people such as Murray because their global recognition delivers eyeballs in every corner of the world.

"I think it will be the big global brands, like the ones we have seen in the Olympics – the Samsungs, the Visas, the McDonald's and Coca-Colas that go for it," Currie says.


Saturday, September 8, 2012

Can the Guardian Survive...?

Newspapers are in crisis—yet they have greater reach than ever before. And nowhere is this truer than at the Guardian, the paper that revealed the phone-hacking scandal. Tim de Lisle follows its triumphs and tribulations and talks to its editor... 

In terms of reach and impact, the Guardian is doing better than ever before. But its success may contain the seeds of its demise. Its print circulation is tumbling. In October 2005, boosted by a change to the medium-sized Berliner format, the average daily circulation was 403,297. By March 2012 it was down to 217,190.  Saturday sales remain sturdy, at 377,000, but, on a typical weekday, only 178,000 people buy the Guardian, while millions graze on it for nothing on their screens. In the financial year 2009-10, the national newspapers division of Guardian Media Group—which also includes the Observer, Britain’s oldest Sunday paper—lost £37m. The following year, it managed to cut costs by £26m, and still ended up losing £38m. In May, Rusbridger told me he was expecting a similar loss for 2011-12. So, for three years running, the Guardian has been losing £100,000 a day. This is not boom or bust, but both at once: the best of times, and the worst of times. 

Friday, September 7, 2012

Nokia apologise for 'faked' smartphone advert

Nokia has apologised for its Lumia 920 advert after footage that appeared to have been shot using the flagship smartphone was revealed to have been filmed using professional equipment.

Nokia issued the apology for leading viewers to believe the advert, which was intended to show off its new "PureView" image stabilization system, had been filmed using the smartphone itself.
Soon after the commercial was launched, eagle-eyed online bloggers spotted the briefest reflection of a camera crew in the new advert after 27 seconds.

Thursday, September 6, 2012

Political ads and media firms

The only sure winners of November’s elections are media firms

The bulk goes to local TV advertising—what David Axelrod, an adviser to Mr Obama, calls the “nuclear weapon” of elections. Local broadcasting stations are a cheaper way to reach specific audiences than national cable spots. Spending on TV will attract $3.4 billion in this election cycle, and 83% of that will go towards local TV. Most political ads appear during the local news.

Sanoma Independent Media CEO Quits

The chief executive of Sanoma Independent Media, Elena Myasnikova, resigned Thursday in what appeared to be an ongoing tussle between foreign owners and local management at Russia's biggest publishing house

Sanoma does not reveal separate financial results for Russia, but executives said the Russian operation was profitable and expressed bafflement over the motivations behind head office interference. About 50 publications are controlled by Sanoma Independent Media including Vedomosti, as well as the local editions of Cosmopolitan, National Geographic and Esquire.

Wednesday, September 5, 2012

Why Sony did not invent the iPod

As at Sony, Time Warner’s vision of the future was correct. But, as at Sony, it didn’t work for them. Amazon, a retailer, transformed the distribution of print media: just as Apple, a computer company, has transformed the distribution of audio-visual media.

The executives of music companies, film studios and book publishers did not rush to embrace the opportunities offered by new channels of distribution. They saw these technological developments as threats to well established business models in which they had large personal and corporate investments. And they were right to think this. So convergence was accomplished by groups such as Apple and Amazon, which had no similar vested interests to oppose change. These companies succeeded precisely because they were outsiders.

Tuesday, September 4, 2012

Obama campaign puts faith in online organising

Coupled with on-the-ground offices in battleground states, Messina says campaign is 'light years ahead' of 2008 effort

While Obama has put a large portion of his war chest behind the largest and best oiled ground operation ever seen, Romney and his Super PAC supporters have taken a more conventional approach of blitzing battleground states with largely negative television advertising. The outcome of the presidential race could in part hinge on this fundamental difference – a modern digital campaign versus a conventional TV one.

Augmented-reality advertising

More than just a Blipp on the virtual landscape

Users hold up their phones or iPads to an advert. After reading the layout of the image, and connecting it with the app’s ad database, Blippar then takes users to a website, or overlays video or game content on top of an image. According to internal company data, the average user engages with an advert for 4 minutes 36 seconds—significantly longer than television or print equivalents.

Many companies are testing AR’s capabilities in their advertising campaigns. Universal, Tesco and KFC have used Aurasma for marketing purposes. Unilever, Samsung, Nestlé, Nike and Cadbury have all enlisted Blippar’s help rather than creating their own branded apps, which generally have a shelf life of only 17-20 days. Now approaching its second year, Blippar is rolling out beyond Britain’s borders.

Monday, September 3, 2012

Star NTV Reporter's 'Mockumentary' Sows Discord

NTV has rehired star television reporter Andrei Loshak, known for his objective coverage on the network, to host a "mockumentary" series that plays on conspiracy theories and gets great ratings.

According to estimates by the TNS rating firm, almost a sixth of the nation's viewing public tuned in to "Russia. Total Eclipse" on average when it appeared around midnight five days last week.

The hour-long show, openly hyped as a "mockumentary" but closely resembling an investigative report, airs outlandish exposés such as a supposed U.S. plot to destroy Russian culture, ordinary household rugs with a mind-bending "matrix," and a baby fetus stem cell "injection of immortality."

The series was intended to make fun of such conspiracy theories, but with its host Loshak being commonly known as a credible reporter on the same network, the show itself has turned into a controversy.

Will.i.am: the player

Nasa, Obama, Intel, Coca-Cola: why everyone wants a piece of will.i.am

Since the Dr Pepper commercial he has thrown himself into an array of commercial deals and partnerships, working with companies ranging from Coors to BlackBerry to Best Buy. These are rarely straight endorsement deals and increasingly he makes the first move, contacting a company with an idea for a concept or marketing plan. In 2011, the Peas played the Super Bowl half-time show, one of the biggest gigs of the year for any band, given the huge exposure offered by being part of the most-watched event on television. The Who had played the year before, but the sight of the ageing rockers jumping around the stage did not do much for younger audiences. So Will approached the NFL.

Lucy Kellaway - Why I can’t ‘like’ Facebook popularity contest

About a week ago a new spoof arrived on Facebook – the Condescending Corporate Brand Page. It’s a send-up of the crass way companies try to get people to click on “like” and “share” on social networking sites by using cheesy pictures and moronic text. On its wall are cute animals and grinning multicultural employees as well as a picture of three slices of toast. Against the latter it says: “Who likes Toast? click ‘like’ on this post if you really like Toast to eat!”

But the winner of the unpopularity contest on Facebook goes to Goldman Sachs. The investment bank is so very superior that it has declined to try at all. There is only one image on its wall, and that’s its logo. Otherwise, there is a sentence saying it’s an investment bank, and a map telling you where Wall Street is. But the site is still “liked” by 16,295 people. Which seems an awful lot. I’ve just clicked on this number (as Facebook software allows you to do) and have found most of them live in Bhubaneswar in India. Which I understand even less than I understand any of the rest of it.

Sunday, September 2, 2012

Google Shuts Off TV Ads Business

After five years of trying to sell ads on television using the automated buying system that works so well for its signature search ads, Google has finally given up. In a blog post this afternoon from Shishir Mehrotra, VP of YouTube and video, the ad giant said it will shunt the group’s staff to other projects

The shutdown is clearly a disappointment for Google, yet another sign that its math-driven advertising systems don’t readily translate to traditional advertising. Back in 2009, the company shut down radio and print ad efforts for lack of interest.

Fashion - Russian Hour

Designers such as Louis Vuitton, Balmain and Valentino are taking folk prints and Fabergé patterns to the front row

It makes sense: Russia is a market with almost 150m people, a growing number of whom are able to afford international designer pieces. And London has been a magnet for wealthy Russians for years. Vadim Lapin, co-owner of the new Mari Vanna Russian-style restaurant in Knightsbridge, says: “There is huge demand from Russians for property in London and there are bookshops, restaurants and design agencies opening. Russian children go to English schools and universities. All of which strengthens the Russian influence. The city therefore becomes much less foreign to our compatriots and brings more Russians.”

Selfridges has seen a 10 per cent increase in Russian visitors since February, with an average customer spend of more than £1,000. In Moscow, the annual sales turnover for the luxury sector is more than $2bn, according to a recent report by the UK Fashion & Textile Association. Prada opened one of its largest European boutiques in Moscow in March. And luxury etailer luisaviaroma.com reports a 910 per cent growth in the Russian market in the past year. “The middle class has more money to spend, so the number of customers is growing,” says Andrea Panconesi, the site’s owner.

Lunch with the FT - Ksenia Sobchak

The TV host who has transformed herself from Russia’s Kim Kardashian to a political activist talks Putin and protest

The 30-year-old Sobchak is a woman of many iterations. The daughter of Anatoly Sobchak, a perestroika-era political reformer and early mentor to Vladimir Putin, she grew up with connections to the Kremlin elite. In her teens and early twenties she was the rich kid who rolled up to Moscow club openings in BMWs, wearing sable and chinchilla.

Those bloody Scandinavians

What the Nordic crime-writing boom says about globalisation

BUSINESS in the Nordic countries has suffered a series of humiliations in recent years. Nokia is a shadow of its former self. Volvo has been passed from one foreign owner (Ford) to another (the Zhejiang Geely Holding Group), and Saab Automobile has collapsed. Iceland’s banking industry has imploded. But in one business, at least, Scandinavia is sweeping all before it: the production of crime thrillers.

In the Spotlight - Spokoinoi Nochi, Malyshi

The nannyish law calls for age certification of all content and says that scenes of smoking and drinking beer or scenes encouraging violence should not be viewed until after the 11 p.m. watershed.

The show seems to feel obliged to inject a touch of glamour to justify its primetime slot, even if it seems a little wasted on the kindergarten crowd.

Former policewoman Fyodorova became a presenter after being disqualified as Miss Universe in 2002, hopefully encouraging fathers to bond with their tots over the show. She compensates for her wooden delivery with lots of mascara, but has also been physically absent of late.