Saturday, April 9

Digital Revolution in Africa

The arrival of three submarine cables to Africa in the past year has quadrupled data speeds and cut prices by 90%. Since mobile-phone coverage is far better than fixed-line availability, the result has been that the cellphone is swiftly becoming Africa’s computer of choice. By some counts there are already 84m mobiles in Africa with at least rudimentary internet connectivity. A $90 smartphone made by China’s Huawei and running Google’s Android operating system sold out in several African countries in less than a month.

For those who want to sell entertainment, however, the future is written on tablets. Here, Samsung has stolen an early lead with its Tab. Though it now costs around $500 in Africa, Erik Hersman, a tech expert in Nairobi, expects its price to fall by half in the coming year. Apple so far shows few signs of bringing the iPad within reach of most Africans. Wholesale buyers in Africa think the market will take off once tablets drop below $200.

Read more at The Economist

A World no Longer Dominated by the PC

Among the trends (PC makers) are grappling with is the growing popularity of tablet computers, smartphones and other devices that let consumers work and surf the web on the move. An even more important trend sweeping the industry is the growth of cloud computing. This lets companies store and process vast amounts of data in huge warehouses of servers run by third parties. The data can then be accessed over the internet whenever and wherever needed. The emergence of the cloud is also partly responsible for a third trend, “verticalisation”. This is the increasing tendency of makers of IT hardware, operating systems and applications to move into each other’s area of business, This has created a free-for-all, with software firms swallowing up hardware firms and vice versa.

The PC is not dead, but its importance henceforth is going to be significantly diminished.

Read more at the Economist

Wednesday, April 6

Terrestrial Radio

Arbitron (ARB) and Edison Research released their The Infinite Dial: 2011 study. The end report shows that in face of competition from satellite radio, social media and other new media, terrestrial radio lives on.

First, the good news. While the percentage of people 12 years of age and older who listen to local AM/FM radio dropped from 96 percent in 2001, to 93 percent in 2011, the medium still holds sway with large numbers of the people advertisers covet. For instance, 77 percent of the 12+ population that is employed either full-time or part-time (24 percent of the general 12 + population) listens to radio stations on a regular radio while at work. Another 21 percent listen to streams of local AM/FM stations on a computer in the workplace. While the median age of "heavy" radio users is 41, that's 7 years younger than the median age of "heavy" television users. Forty percent of terrestrial radio's listenership falls in the 25-54 year old sweet spot for advertisers.

On the downside, 53 percent of 12- to 34-year olds look to the Internet to find out about new music. Only 39 percent of people in that demographic go to radio first. Forty-two percent of individuals who are 35 years of age and older turn to radio first, while just 19 percent go to the Internet. It's no surprise that radio skews older. And, for most forms of talk programming, it likely tends even higher.

One of the "implications" the study authors list from the report, which I agree with but am not married to, is that Radio is relevant and resilient.

Read more here

Tuesday, April 5

Facebook steps up efforts to Work with Journalists

On its media page, Facebook publishes success stories of how media organizations are using its platform... And now, Facebook is rolling out a similar page, but targeted to journalists.

Today we’re launching a new “Journalists on Facebook” Page to serve as an ongoing resource for the growing number of reporters using Facebook to find sources, interact with readers, and advance stories. The Page will provide journalists with best practices for integrating the latest Facebook products with their work and connecting with the Facebook audience of more than 500 million people.

Osofsky says they’re also creating a “Facebook Journalism Meetup” program, hosting “hands-on workshops on how to use Facebook as a reporting tool.”

Unkind Unwind

The once lucrative home-entertainment market is ailing. A steep decline in DVD sales has more than cancelled out growth in high-definition Blu-ray discs and electronic downloads. In developed countries, particularly America (by far the biggest home-entertainment market), people have switched from buying to borrowing. Since 2007 the number of films rented in America has grown by 10% even as spending on home entertainment has steadily declined.

All the big studios apart from Disney (once again going its own way) will start offering electronic copies of films that conform to a single format later this year. Buy a film, either as a download or as a Blu-ray disc that comes with digital rights, and a token will be stored in your account. In theory, you should then be able to play the film on television through your existing set-top box, download it to your laptop and your smartphone, and perhaps burn an extra copy to a DVD. Buying a film should begin to seem more appealing than renting it or downloading it illegally.

Read more at The Economist

Video Nasty

People are rapidly discovering new ways of watching films at home that pose a grave threat to the most profitable part of the film business. In America, by far the biggest home-entertainment market, spending on videotapes and discs has dropped by 29% since 2004... The big reason is the rise of cheap, convenient rental outfits like Redbox, which runs kiosks, and Netflix, which streams some films and sends others through the post.

Like music, newspapers and books before it, the film business has been disrupted by innovative, fast-moving distributors whose products have caught on with the public. Tinseltown’s attempts so far to see off the threat have fallen flat, partly because the studios have failed to co-ordinate their efforts.

Led by Sony, a consortium of studios, technology firms and retailers are working on a new way of distributing digital copies of films. The idea is that consumers will be able to buy the rights to films stored “in the cloud” and stream them to any device.

Read more at The Economist