Sunday, May 3, 2009

How to Auto-tune an Infomercial

I'm actually kind of a fan of the recent auto-tune fad. It's really starting to make its way into viral videos, such as Auto-tune the news, Winston Churchill Auto-tuned, and Martin Luther King, Jr. Auto-tuned.

The most recent addition to this craze is the Slap Chop Remix.

Even though there isn't too much auto-tuning in this remix, I think it really gives infomercials the extra kick they need. If every infomercial was like this, I'd probably stay up until 3am every night just to watch. Or I'd at least DVR them, and probably play them at future parties. Who knows? Maybe Vince could get a record deal out of this.

Slap Chop Remix

To Tweet, Or Not To Tweet?

I still haven't caught on to the whole Twitter phenomenon. I just don't really see the point. I mean I go on Facebook all the time, but I rarely use the Status feature. I don't know who would really care that I have a lot of work to do or that I'm going to the movies tonight. Chances are whatever I'm doing doesn't have much of an effect on other people.

So what's the deal with Twitter?

It seems like Twitter is catching on fast. And it's not just with self-involved people. Companies are starting to Tweet too.

So when I saw this video on Collegehumor.com I had to post it.

Enjoy!

Real Life Twitter

Pizza Revolution

I love pizza.

A lot.

I even have a shirt that states "Pizza Is The Best."

So when I saw this video I was immediately impressed (and a little bit envious of the innovation).

This new pizza box is going to change the pizza industry. It fits perfectly with the "go green" initiative that is currently taking the world by storm. The packaging is also incredibly convenient.

You see, the top part of the pizza box can be folded and torn into 4 plates. The other half of the box can be folded into a left-over container.

With all the pizza I've eaten throughout the years, why couldn't I have thought of this?

Sunday, April 12, 2009

Case #4: Netflix Pricing Strategy

Every year it seems as though I want to see quite a few movies that are coming out. Unfortunately, I only end up seeing probably 10% of them in theaters, leaving me to forget about them until my peers ask “Hey, did you see (insert movie title here)?”, to which I shamefully answer, “No… but I really wanted to…” A few months later I’ll start seeing commercials for the DVD release which often rekindles a sense of melancholy for surround sound, giant screens, and overpriced concessions. So, being a movie lover and a semi-frequent movie renter (when I can find the time), I wanted to investigate a company that I have yet to use for our last project.
Netflix: Making video rentals simple since 1998

Since its launch in 1998, the video rental industry was turned upside down with the launch of Netflix. This company developed a great business model for movie lovers. Originally, it started as a pay per rental business. Shortly after it changed to a subscription based model. You see, Netflix allows subscribers to select which movies they want to see. The subscribers select movies and put them in a queue. Netflix then send the subscribers whatever movie is next on their queue. When the user finishes the movie they send it back to Netflix, and then the company sends out the next movie on their queue. This allows subscribers the freedom to watch the movies they want to see, without the hassle of late fees or actually finding the movie in a rental store.

As far as pricing strategies go, Netflix uses a fixed pricing strategy. This means that the prices are the same for all customers. More specifically, I would say that Netflix uses a volume-based pricing strategy. This means that the company establishes separate price levels based on quantity purchased. The follow are Netflix’ Unlimited Plans:

$8.99 a month
1 DVD out at-a-time
(Exchange DVDs as often as you want)
plus
Instantly watch online on your PC or Mac or instantly on your TV via a Netflix ready device - all for no additional monthly fee. Instantly watch as often as you want, anytime you want.

$13.99 a month
2 DVDs out at-a-time
(Exchange DVDs as often as you want)
plus
Instantly watch online on your PC or Mac or instantly on your TV via a Netflix ready device - all for no additional monthly fee. Instantly watch as often as you want, anytime you want.

$16.99 a month
3 DVDs out at-a-time
(Exchange DVDs as often as you want)
plus
Instantly watch online on your PC or Mac or instantly on your TV via a Netflix ready device - all for no additional monthly fee. Instantly watch as often as you want, anytime you want.


Netflix also offers a Limited Plan:

$4.99 a month
1 DVD out at-a-time
(Limit 2 per month)
plus
Instantly watch up to 2 hours of movies (some new releases) & TV episodes (including current season) online on your PC or Mac for no additional fee.


These prices demonstrate how Netflix has created a service that can basically be afforded by anyone with an Intenet connection. Theoretically, a subscriber of the $16.99 a month package could watch 12 movies a month if they watch 3 movies every week. This is a steal compared to other rental stores. This would boil down to just about $1.42 for every movie.

Netflix financial history for the past 5 years

In quarter 4 (Dec ’08) Netflix had a net income of $22.73 million. In regards to yearly figures, the company had a net income of $66.61 million in 2007. The company jumped up to $83.03 million in 2008. The profit margin for Netflix has stayed around 6.08% for the past 2 years. The company also holds an astonishing market capital of 2.75 billion. (For more stats, visit http://www.google.com/finance?q=NASDAQ%3ANFLX)

Netflix is a ground shaking company. It even made Blockbuster reevaluate and redesign its movie rental strategy. I think that Netflix has also kept up with current trends. For example, since its launch the company has added Blu Ray DVDs, the option to watch moves instantly on a computer, and is currently developing a way for X-Box 360 users to watch movies on their gaming systems.

Netflix has created a model that is both affordable and convenient, which has ultimately allowed busy subscribers to indulge themselves in a movie rental bliss. Now if you’ll excuse me, I have some movies to catch up on.

The Warriors: A top 10 favorite movie of yours truly

Thursday, March 19, 2009

Case #3: iTunes as a Pure Play

Over the past decade, downloading music on the Internet has been transformed from a popular phenomenon to a cyber crime to an effortless social norm. The latest change in perceptions has been greatly influenced by Apple’s iTunes. Apple completely reinvented the way people purchase and listen to music with the unveiling of iTunes, and they continue to do so. The program is now basically a one-stop media experience. Through it people can watch movies and television shows, and listen to the music and the radio. The company also created a new type of media opportunity with the introduction of podcasts, which is basically a type of blog, but can be translated into almost anything. Even Apple’s iPhone is set up and managed through iTunes.

The iTunes Store probably has what you're looking for.

Now, I’ll admit that I was opposed to iTunes when it first came out. And I still think that there are a few flaws in the program. Don’t get me wrong… I love music. One of my favorite hobbies is marking when albums are coming out, and then making a trip to Best Buy, FYE, or a local record shop on the day the album drops to purchase it. I’ll even preorder the album from the band’s website if the package is appealing (a lot of bands have bonus tracks, posters, and t-shirts that are included with a preoder). I love supporting the bands, I love having something tangible, and I love the packaging and artwork that most bands include with their albums. You don’t get that full experience with iTunes. But when I know a store won’t have the album I want and I don’t want to wait a week and a half for the album to ship, it’s nice to know that iTunes has my back. Basically any album imaginable is somewhere in the iTunes database.

I will say, though, that I can’t thank iTunes enough for what it did for the record industry. Before iTunes, albums were being sold at $18 a pop. Which was absolutely ridiculous. Once iTunes introduced the option of buying a single song for 99 cents, many consumers no longer had to purchase a whole album for one song they heard on the radio. Since the introduction of iTunes, album prices can usually be found around $12.

iTunes operates on the pure play level. This means that it exists on the Internet only. This revolutionary tool follows the merchant web business model. Under this model, iTunes charges for each item that is exchanged with the consumer. However, iTunes does offer free songs, and bands can choose to let people download their songs for free. iTunes can also be called a bit vendor because the customers are actually paying for each download, whether that be for a song or for a whole album.

iTunes can make use of various performance measures to make sure they are at the top of their market. One such performance measure would simply be to check internal sales. iTunes should check to see what portion of sales pertains to music, TV, and movies. They could even break it down even further by seeing what types of music. TV shows, and movies sells the best. iTunes already has a method of suggesting music for users, as well as a most popular section for sales, so I’m sure the company has all of these figures.

iTunes could compare these figures to other businesses such as Tower Records, Microsoft’s Zune and related media purchasing site, and sales figures from record companies. If these other companies are selling more albums than iTunes, then the company should take a step back and figure out how to increase sales.
Apple iPod - The perfect companion for iTunes.
Note: This image does not reflect my music preferences.


iTunes may also want to keep track of media player sales. For example, if iPod sales begin to slow, and Zune sales increase, people may stop purchasing from iTunes. While this is possible, I don’t think it’s very probable.

I think that iTunes has done a great job of updating itself repeatedly and frequently. Anytime there is any slight problem with the iTunes experience, the company makes sure to make it better. I mentioned earlier that I loved being able to see the packaging that bands included with their albums. Over the past few years, iTunes has included album artwork and, more recently, digital booklets, which allow consumers to read the lyrics and dedications associated with the album. While iTunes is already incredibly popular, I can only see it becoming more and more prominent in the music market.

Bright Eyes - Cassadaga: Won best album artwork at the 2008 Grammy's

Sunday, March 15, 2009

GE's Windmill

GE has developed a new website to emphasize alternative energy sources. This website uses your computer's camera to track a piece of paper that you print out. The results are like nothing I've seen before.

Try it for yourself at http://ge.ecomagination.com/smartgrid/#/augmented_reality

It's pretty amazing.

If it isn't working, or you don't have a webcam, check out this video from the creative director at Ogilvy. He claims the website is Web 4.0. Which I think is pretty impressive.


Thursday, February 26, 2009

Case #2: Ethical and Legal Issues

Over the past few years the social networking site Facebook has been the center numerous privacy related issues and uproars. The sites introduction of its News Feed was followed with a plethora of complaints, various new nicknames (such as “Stalkerbook”), and the creation of a few new Facebook groups that called for immediate action from the site. After a few days of these complaints, Facebook responded with a post on every member’s home page clarifying that users would be able to edit what information would be posted to the News Feed and extended what seemed to be a sincere apology. This seemed to calm the angry waters of the Internet for a little while. However, Facebook has stirred up privacy troubles once again. This time they have transcended from not only broadcasting what users are currently doing to basically owning what users are doing.

That’s right.

Recently news came to light of Facebook’s new privacy policy. By agreeing to Facebook’s new policy, users basically allowed Facebook to claim the rights to anything that was posted on the site. This even included pictures. According to the privacy policy,

“You hereby grant Facebook an irrevocable, perpetual, non-exclusive, transferable, fully paid, worldwide license (with the right to sublicense) to (a) use, copy, publish, stream, store, retain, publicly perform or display, transmit, scan, reformat, modify, edit, frame, translate, excerpt, adapt, create derivative works and distribute (through multiple tiers), any User Content you (i) Post on or in connection with the Facebook Service or the promotion thereof subject only to your privacy settings....

You may remove your User Content from the Site at any time. If you choose to remove your User Content, the license granted above will automatically expire, however you acknowledge that the Company may retain archived copies of your User Content.” (Terdiman).

Has Facebook crossed the line?

Facebook CEO Mark Zuckerberg claimed that the licensing of such documents were a necessary step in order to share information with other people on the networking site. Licenses are defined as a method of intellectual property protection and allow the buyer to use the product but restrict duplication or distribution. Zuckerberg also stated,

“Our philosophy is that people own their information and control who they share it with. When a person shares information on Facebook, they first need to grant Facebook a license to use that information so that we can show it to the other people they've asked us to share it with. Without this license, we couldn't help people share that information.”

By Wednesday, February 18, Zuckerberg posted a blog entry on Facebook stating that the company would start to develop the terms, and they would return to the previous terms of use for a little while (Zuckerberg). A similar message also appeared on user’s home pages briefly on Wednesday.

Most recently, a message notifying users of their ability to help draft new privacy policies has appeared on home pages. Coming from a site that claimed to own everything users posted to one that gives users an opportunity to contribute ideas and help structure an integral part of an expansive site is a tremendous turn around.

Recent message sent to Facebook users

Personally, I think that Facebook stepped over the line with this issue. It’s one thing to inform people of user’s select actions. It’s entirely different to claim ownership of those user’s content. How can a company say that they now own photos and information that users have uploaded? The users put a certain amount of trust into Facebook. It takes a lot for someone to put personal information on a website that is used by millions of other members. These users are what make Facebook successful. Without them, the site would be nothing. When Facebook desecrates user’s trust, it could be difficult to get back.

However, users also have to be aware that they aren’t putting their information into a safe that’s locked and stashed behind a painting. While Facebook seems to be fairly personal, it’s still a facet of the Internet. People need to be aware that there is a chance that random people may be able to see private content. An easy solution to this is to not put content up that you may not want someone to see. If there’s no content to claim ownership to, then users can’t be worried about who owns that content.

I think that Facebook’s solution to the current problem may not fully rectify the company’s encroachment on user’s privacy, but it does give the company more credibility. Giving users the option to contribute to the company’s rules and regulations helps to make the users feel more important while at the same time giving Facebook an out for potential future problems. For example, if a future problem occurs, Facebook can turn around and say that these regulations were placed in part by the users themselves.

The troubling fact about Facebook users is that it seems like no matter what they are put through, they will still continue to use the social networking site. Whether this is because of love for the site, addiction to looking at glimpses of other people’s lives, or the need to feel accepted by receiving a flood of requests from other users, it seems clear that people will keep on logging in. Hopefully Facebook will recognize that the next time it messes up, its users may not be so forgiving.
Who wouldn't want to own the rights to this picture? (Kidding...)

References

Zuckerberg, Mark. February 18, 2009. Facebook.com. “Updates on Terms.” http://blog.facebook.com/blog.php?post=54746167130

Terdiman, Daniel. February 17, 2009.CNetNews.com. “EPIC readying federal complaint over Facebook Privacy Policy.” http://news.cnet.com/8301-17939_109-10166290-2.html