Categories
Business & Marketing Distribution Media Consumption New Media

What will replace advertising?

Over the last two years I’ve been thinking extensively, and speaking on, about funding new media. (Want me to come speak on the subject at your group – email me!) It’s become increasingly obvious that advertising probably isn’t the way the majority of media will be funded in the future.

In the (relatively brief) period of mass media – Television, newspapers, magazine and radio – the publisher or license holder built an audience and then sold that audience to advertisers to push unrelated products and services to the audience who mostly didn’t care. With 70% of Americans desirous of paying to avoid advertising (counting me among them) you have to wonder how long the tedium of irrelevant advertising will be tolerated by audiences.

Even the web is a horrible experience unless you are smart enough to enable ad blocking and Click2Flash (Flash blocking in webkit displays system wide – OS X only afaik). With those two add-ons enabled the web doesn’t burn my eyes with the pain of flashing, jumping, irritating distractions. If my failure to ruin my experience of a site by blocking the ad sends the site off the net, so be it. I didn’t ask for the advertising.

Technically, of course, it’s not all advertising that’s horrible, just irrelevant advertising. Like watching a 45 minute show on Hulu and seeing the same fabric softener ad five times!!!! And Hulu has the temerity to complain that I’m using ad blocking! People don’t really mind relevant advertising, but so little of it is! In fact, for me about 99.9% of advertising is irrelevant. In maybe 200-300 hours of in-car listening to KNX1070 (LA News radio) I’ve heard one ad that was relevant (Windscreen chip repair). That is the only ad that doesn’t carpet KNX wall to wall! (Figures!)

So, I have a fairly hard-and-fast rule that I don’t buy from anyone who advertises to me. Send me junk mail, go out of my purchase consideration list.

Anyhow, I’m not alone. Not only is advertising losing its effectiveness, it turns people off (and yes, I have references for every assertion I make, I just don’t want to clutter the blog) and that’s just not going to be a way to build an audience.

But there’s a much bigger problem. There’s not enough advertising for any “new media” and “old media” is losing advertising support in dramatic amounts.

But most relevant of all. Advertising in someone else’s show makes no sense. The biggest advertising brands would be much better off with branded entertainment, where they would pay for the content and integrate the advertising. American Academic Mark Pesce, now at the Australian Film, TV and Radio School, coined the term “Hyperdistribution” where a single sponsor integrates ads relevant to the show’s audience and in the style of the show, and then it’s distributed anywhere and everywhere it can be. P2P and Bittorrent distribution is welcomed!

My friend Cirina Catania worked on a very successful series of branded media (online video) for Chivas Regal and I believe that this is the direction of the future: useful, interesting content that is, in some way, relevant to the brand and hooked back to the brand. Why torture audiences with irrelevant advertising when you can entertain them and still get the brand message across in a relevant way?

I’m clearly not the only one that thinks this. I recently found a great presentation called (correctly) The Audience is always right. Check it out and then make a comment.

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Business & Marketing

Why do I love our customers?

As I transition into a role I never thought I’d have – software product manager/developer – I’ve come to love “pushy clients”! Although I don’t write the code for our products, I’m usually involved in the design and particularly user interface. Greg writes the code rather brilliantly.

Our first piece of software – driven by a strong idea of mine – is First Cuts - the assisted editing tool for long form documentary filmmakers. Finisher was the suggestion of Loren Miller during the beta period, and the use of Sequence Markers to force b-roll was the suggestion of Digital Production BuZZ producer, Cirina Catania.

The work we did there gave us a leg-up with FCP XML so when Ted Schilowitz of RED Digital Cinema asked if we knew someone who could, basically, create something functionally similar to Avid’s Autosync (part of Media Composer) for Final Cut Pro users, leading to Sync-N-Link a few months later.

Later than intended because we were about ready to release it and ran the concept past Jim Mathers of the Digital Cinema Society and he said that in the independent markets that he works in, editors tend to sync multi-track (dual system) audio after the edit. Dang a delay but Greg made it happen. That’s something you can’t do with Media Composer.

If, however, you compare Sync-N-Link then with the current version – set for a substantial update shortly – there have been so many new features added, and bugs fixed, that we could not have found without our early customers. We did try beta testing but found that few beta testers have time to put into testing, despite their best intentions. (Which reminds me, “sorry Boris for not much feedback the last two times I tested for you”.)

Likewise, the whole Sequence Clip Reporter application came about because I had demonstrated miniME and exceLogger at LAFCPUG. A friend said “what you really should do…” and we did. Then we had some great feedback from (yes) a beta tester and fabulous feedback from an early customer, who was “I love it but could it also….” and now it does.

Sequence Clip Reporter was only released about seven weeks ago, and yet it’s now at version 1.5, with an interface overhaul (more feedback) and a raft of new, customer-driven features.

So, if you use a piece of software and have a feature request, let people know. Everyone who develops software loves to know how people use it and how they can make it better – yes, even Apple, although they’ll never tell you. (Someone reads, categorizes and files every feature request and bug report.) In fact, FCP XML v5 has a bug fix for a problem Greg reported (from a customer) and a new feature that also came about because we couldn’t accommodate a feature request from a customer. (Sound reel was not being exported in the XML until V5.) So we know Apple do respond.

What I particularly enjoy is that we’re not a big company, where it takes time to iterate a new version, QA it and get it out. And thankfully none of our applications are (yet) anywhere near as complex as the simplest Pro App or NLE. It’s just so great to get a feature request from a (potential) customer and have the first (very rough) draft of the app by the next day. (There’s a huge gap between that working prototype and a full application, not all of which is to do with the function of the app.)

Or get a feature request from a customer – or a problem they have – and being able to push out an update for everyone within a day or two days. Or even solve a problem that isn’t caused by out software, but where Greg’s XML expertise is able to “save the day”.

So, provide that feedback. Tell people how you use their software (tell us for sure). It’s likely to gain you a feature, or even a whole application.

Categories
Business & Marketing Distribution Item of Interest

Why do I have two inconsistent positions about copyright?

Just lately I’ve been dealing with a content aggregation site (or two) that had articles from this blog listed in their articles directory. Worse still is that the site is designed to distribute articles to other sites. I don’t mind the idea: if a writer wants wider distribution, then it probably makes sense to syndicate the article there, than have it sit in obscurity.

I had to fight fairly hard to get my articles out of their system because I had not put them in that system and didn’t want the articles syndicated wildly. Now I do have some syndication organized (if you’re reading this on Toolfarm, thanks) but I don’t want this content distributed anywhere I haven’t directly authorized.

The articles were removed but only after I re-served the DMCA takedown notice on the owner of the domain name, as the normal site admins were not acting in according with the provisions of a DMCA Takedown notice. (I actually thought I’d have trouble when I realized, from the domain registration, that the company was actually in Israel, which isn’t actually covered by US Copyright law! Fortunately they did the right thing.)

We were talking about this over dinner and I realized I had a double standard going on. Not necessarily a bad thing but any internal inconsistency is alway s worth examining.

I was remarking that I am fairly certain there’s at least one school or college that’s using my HD Survival Handbook as a class text, which is not exactly being used in accordance with a single-user license that is the normal purchase. (BTW, we’re always happy to do very attractive bulk pricing for anyone that wants to reuse in a school or commercial organization, as we did recently.) But the thing is I wasn’t particularly upset by it. Sure, I would prefer that they made an arrangement with us for official distribution, but the thing is, I didn’t have any proof that they were doing something wrong. There may be a way that just the teach uses the work as a reference.

If I had actual proof put in my face – such as a student saying that the HD Survival Handbook was actually on a student-accessible server at her college – I would have to act. (In that case I sent a nice email to the original purchaser at that college stating what the student had said and he immediately made it right.) When I say “have to act” I actually mean it. Should an author not act on flagrant breach of the licensing conditions, there are circumstances where the author can lose the copyright exclusivity.

So I was struck with my apparent double standard. I am less worried about meticulously keeping the commercial writings only to those who purchased, than I am about these thoughts being widespread.  Partly that was because the instance with the aggregation site did not have link-backs to this site – the uploader had substituted links to their site, and the content was misused – wrong tags and confusing descriptions. My name even appeared on an article I didn’t write! But it’s also because a lot of what I write here are the beginnings of my thinking about something, or they’re going to be (or have come from) commercial writings.

Mostly, I think, it’s because the commercial products were written to be distributed widely. Plus, if there is a whole class or two that are using my work as their textbook, I’m still being compensated with reputation building. I’m not unhappy with the thought that a whole generation of student will grow up thinking that I provide accurate, understandable and useful information. I figure that will lead to some compensation some day. The portion that does pay for the downloads, and I like to think that’s the majority, make the project well and truly worthwhile, and frankly, I don’t think those students would have paid anyway! Whatever money a student has should be kept for the truly important things… 😉

Here though, I’m writing as much to clear my thinking or have a record of something I’m fired-up about as anything. I don’t have advertising on the site and don’t expect it will be a commercial return. I do hope that it’s reputation building, and when you reproduce this work without authorization, you’re taking my reputation and using it for your own purposes. And I don’t like that.

PS

What I consider highly appropriate is to make reference to a post, summarize the main points – perhaps quote a paragraph or two – and then link to the permalink for the article here. (Click on the article headline and the URL will be the permanent link.) That type of use is a compliment.

Categories
Business & Marketing Random Thought

Where is the value in $15 million a year for a spokesmodel?

I have to say I was horrified to read that Ryan Seacrest was getting $15 million a year to host American Idol. To host, not produce, not to book a studio, not to actually produce anything but to host. To read a teleprompter and walk without falling over.

I’ve never met Mr Seacrest and I have no personal animosity but $15 million  a year to host a talent show seems just wrong. Way out of balance with anything real.  This is a 3x increase in salary over what he’s been getting – $5 million a year – for the same job.

That same amount of money would produce six episodes of Mad Men including paying all the far more talented cast (hey, they can act); paying the crew; locations; editors; facilities and presumably profit for the producers. All instead of paying one person to turn up.

I cannot believe that any one person brings that much value to a show. It just seems way out of balance to anything reasonable and human and really, tells me why the whole industry needs to be made over anew.

Equally stomach churning are the  sums paid to the CEOs of the major media companies, even when the results they turn in are “disappointing” to say the least.  Disney CEO Robert Iger earned $30.6 million last year while presiding over a 26% drop in profit at Disney? Where is the shareholder revolt? Why are they not demanding an $8 million drop in salary package?

It’s not just Iger; the rest of the crowd of losing value media company heads are all paid outrageous sums of money for the value they (don’t) bring to the companies they head.

Here’s my solution. Set a limit to the maximum ratio the highest and lowest paid employees of a company can earn. You want to increase the CEO salary, then everyone’s salary goes up to share in the (obviously great) results. Set the ratio at 100:1 if you like, but set a ratio that cannot be broken.

Until there’s some sanity I’ll be putting my efforts into demolishing that industry to start over afresh.

Categories
Business & Marketing Distribution Random Thought

What if there was no copyright on “music and the arts”?

Over at Techdirt, Mike Masnick wrote an interesting article suggesting that copyright on “art or music” may be unconstitutional. Now, I don’t expect the Supreme Court to rule that way any time soon – there’s not even a case before them – but it did make me wonder what would be different if copyright didn’t exist on film, television, music, architecture and other creative arts.

I thoroughly recommend reading Mike’s article, but the gist of the argument is that the Constitution provides for a “Limited Period” (originally 14 years, not 50 years past the death of the author) for “authors” (only, no descendants or corporate owners) “To promote the Progress of Science and useful Arts”. Useful Arts apparently being the business of invention in the language of the day. No mention of almost all our current copyright system.

We wouldn’t have the RIAA suing its best customers. The RIAA, MPAA and their kind around the world would have to work out how to compete, which is simple: provide a good product at a fair price and provide it conveniently. Without the crutch of copyright to protect a dying business model (and a highly profitable one, so it’s understandable they don’t want to adjust to the new reality) they would have to compete.

After all, television has been giving its content away pretty much since day one. Of course others (advertisers) pay for the privilege of interrupting the program with something irrelevant, which is why I’d rather pay a fair amount for my ad free copies, thanks.

If there was no copyright, then digital copies would abound, and content creators would either have to add value to their official (paid) version; or bundle advertising so closely with the show that it doesn’t appear like advertising. (In fact I believe the future of advertising is branded media, but that’s a post for another day.)

Of course, it can be done. iTunes and Amazon’s music store sell music that is fairly readily available via various P2P mechanisms. Every one of the 4 Billion songs Apple has sold has been available free.

Perhaps content could be free after a period of time, and people will pay for immediacy. This is the strategy the Direct TV hoped would give them more customers by showing Friday Night Lights on Direct TV before their outing on NBC. (See my earlier article on how the numbers stack up for new media, on how that program is being funded and what a fair price would be for a viewer.)

People will pay for convenience and simplicity – both reasons why iTunes has been such a successful model, despite charging way too much for television and movie content.

There are dozens of ways that television, and new media production, could fund itself if there was the necessity and they couldn’t fall back on copyright. In fact in my “Making a living from new media” seminar, I outline 13 different ways that free media can lead to a decent middle class income.

If “Hollywood” wasn’t covered by copyright, how different would it be?

Categories
Business & Marketing Media Consumption

How has technology changed news reporting?

I’ve been thinking a lot over the last couple of months about news. In fact somewhere within me is brewing a book on the way that the Internet and technology has changed news so when the Digital Production BuZZ asked me to comment on the subject this week, it forced me to put some of the thoughts into a coherent form. Hopefully last night’s interview (my segment starts 20 minutes in) was, but I’d like to share those thoughts with you here.

I think most people are aware that the newspaper industry, in particular, is in trouble. The Internet and modern technology have changed the way we get and consume news. It’s also changed the way the way the news itself is gathered.

There are several ways that the Internet  and technology have changed news and I’m sure my thoughts here are going to only skim the surface. First, a little history. Back in the days PI (Pre-Internet) – really just on 15 years ago – news was hard to come by. We didn’t get information internationally, or even nationally, without the newspaper and to a lesser degree radio and Television but mostly the newspaper. The entire contents of an hour-long evening news bulletin would not take up the space of the front page of most newspapers of record, so it was to newspapers we looked for local, national and international news.

I used to be a 3-paper-a-day man back in Australia. The local newspaper for local news; the State-Capital based newspaper of record and the National financial news for, well national financial news. (I was a Fellow of the Australian Institute of Company Directors in those days, and had a keen interest in such things.)

I haven’t read a newspaper on a regular basis in 10 or more years! These days I get my news via RSS into an aggregator. My general (local, national, and international) news comes from eight major sources: AP, LA Times, Wall Street Journal, Washington Post, NY Times, CNET, Sydney Morning Herald and Yahoo Technology News across two countries. But I’m only interested in a fraction of what they report.

But these are just eight of the nearly 300 RSS feeds that feed me the news I’m really interested in. No newspaper would ever be likely to give me that personalized look at the world as it evolves. Plus, I don’t have to wait 24 hours to get “aged news” (as Jason Jones put it on The Daily Show).

Now, back PI we needed the same AP article reproduced in the local paper in each market because that’s how we got the news. These days we only need the source – the original source which is rarely a newspaper or AP – and a link. It annoys me that the same story appears 20 times or more in one set of news feeds, duplicated from the same AP article and rarely with any editorial influence or rewriting.

In fact, I think you’ll find a good portion of most papers are simple rewrites of press releases or AP stories, with very little real reporting being done at all.

Blog aggregators like the Huffington Post and to an increasing degree, AOL who has more than doubled the number of reporters in the last year hiring those discarded by mainstream media, are creating their own reporting and commentary networks. News is coming directly from the source. We don’t need an AP or NYT outpost in Iran during an uprising. We get news from Iran, from The Tehran Bureau or Global Voices Online (a blog aggregator who knows which bloggers to trust).

As an indication of how much the news industry has changed, The Tehran Bureau, published by volunteers out a small suburban house in Massachusetts, has had very accurate and detailed information about what is going on in Iran while the mainstream media have been sidelined by the officials in the country and not able to report. Their information was being quoted and “reported” by mainstream media who can’t get coverage from their traditional channels.

None of this could happen without the Internet infrastructure and specific technologies that sit on top of it, and sometimes link into other technologies like the cellular phone network’s SMS system.

It was a blogger who bought down Dan Rather by revealing that the papers purporting to reveal irregularities with President George W. Bush’s service in the Air National Guard were fake. There are dozens of such incidents where bloggers,with time and the Internet at their disposal, have broken dozens of stories, with more accuracy and greater detail than the mainstream media. (Frankly the accuracy rate of mainstream media is pretty appalling.)

It was a cell phone recording that affected the balance of power in the Senate in the 2006 mid-term elections when a Democrat staffer recorded George Allen’s infamous “Maccaca” comment that, arguably, lost him his almost certain return to the Senate.

It was the cell phone video of “Neda” being shot in the civil disobendience after the Iranian election that helped inspire more people to come out in opposition to the Government of the country.

With millions and millions of cell phones in consumer’s hands it’s now more likely than not that a camera will be at the scene of a major incident. The first picture of Flight 1549 in the Hudson was from Janis Krums’ iPhone on the ferry that was first on the scene to pick up the passengers. Naturally he shared the photo via Twitter. (It was 34 minutes later that MSNBC interviewed him.)

Twitter was first to break the news, again. People have sent tweets from within the midst of the news, including instances where people have tweeted their involvement in a disaster like Mike Wilson, a passenger on board Continental’s Flight 1404, which skidded off the runway at Denver airport and burst into flames. Mike tweeted right after he escaped out of the plane’s emergency chutes and posted a picture of the foam-covered aircraft long before any traditional media was even aware of the accident.

When a Turkish Airlines Boeing landed short and broke apart at Amsterdam’s Schipol, the first word to the public was a Tweet, sent out by a fellow who lives near the airport. (FlightGlobal.com)

Twitter has become a major news source, such that there are now sites, like BreakingTweets.com, dedicated to breaking news on Twitter as a news site in addition to Twitter’s own Breaking News page. If you want the up-to-the minute news, you follow Twitter it seems.

Even if newspapers and the Associated Press ultimately fail, as they are most likely to, I still see a bright future for journalism, just not in the traditional places.

There is one more aspect to “news and the Internet” and that’s the social one. Many of the source I subscribe to in my RSS reader are bloggers who write in the space. I may miss an article or resource but Scott Simmons (on his own site or at ProVideoCoalition.com), Oliver Peters, Larry Jordan, Shane Ross, Lawrence (Larry) Jordan, John Chapell, or Norm Hollyn are there to find the things I miss and bring them to my attention. (Of course, usually with some insightful writing in between.)

I don’t have to read everything or be everywhere because the social networks I participate in create a new network far more valuable to me than the best efforts of the Associated Press!

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Business & Marketing

What do you need to consider if you’re thinking about self publishing a book?

There was a time when the only way to get a book published was to interest a publisher and sign away your copyright to that publisher. There were definitely benefits to that arrangement, mostly starting with a nice up-front advance on sales!

However, most authors never see anything more than that advance and usually end up owing money (in theory) to the publisher as a consequence of insufficient sales to cover the advance. The per-book return to an author is so low that most authors make more money off the Amazon affiliate link than they do from the book sale!

When you self publish you get a much larger return-per-sale than from a publisher, because you’re taking on more of the work and risk yourself. With print-on-demand technologies and online sellers like Amazon open to all, it’s certainly practical to self-publish, but should you?

Based on my experience with The HD Survival Handbook; Pro Apps Tips collections; Awesome Titling, Simple Encoding Recipes (just rewritten last week for 2009) and most recently The New Now. This exercise started with simple downloadable PDFs and has led to a paperback now in Amazon.

That you will have to write your content and provide most of the illustrations is expected and pretty much the same whether you self publish or have a publisher. One intangible advantage of a publisher is that they are going to keep on your back for the book once they’ve paid you the advance, whereas when you self publish you’re responsible for your own scheduling.

You have to provide your own editor/proofreader

Everyone (whether they like to think it or not) needs a proofreader and someone who reads their material to ensure content accuracy and grammatical clarity. Believe me, my work is much better thanks to Greg Clarke’s careful read throughs and constructive criticism. Even better, he works to improve my work, not take my “voice” out of it.

My experience with publishers (two companies) is that they try to achieve this soulless bland style that could be anyone. I have, as you probably have noticed, a personal style and voice in my writing. I like that and it seems my readers like the style. By self publishing I get to keep my voice in the work – to keep the writing in my style not something generic and dull.

If you must edit your own work, or simply can’t find someone to fill that role, then read it out loud. Reading aloud takes a different path within the brain and you’ll recognize mistakes or lack of clarity much more easily if you read out loud.

You’re responsible for design and layout

Personally I like playing with illustration, layout and design. My font choices are probably boring and The New Now is probably a point-size too large (although my contemporaries like the slightly larger print for aging eyes). I totally enjoyed laying out and creating the illustrations for The HD Survival Handbook so this isn’t daunting for me. But if you’re not comfortable doing design, you’ll need to (probably) pay someone to lay out the book, whether you’re distributing a PDF or going to print.

Likewise cover design and cover copy. It’s all going to come back to you without a publisher, so be prepared to put in even more time, or pay someone to do it. For covers, Amazon’s CreateSpace has templates you can draw on.

You’re responsible for the printing

What once was one of the two primary reasons for having a publisher was to fund the expense of printing (typically) 5,000 books. (Not surprisingly, the advance when I was working with publishers was equivalent to the return from 5,000 copies. Few authors see any additional return.)

These days, with on-demand printing already very reasonable for B&W books and getting more so for color, printing is not an issue any more. (As an aside there’s a new generation of the print-on-demand technologies just announced that are twice as fast and half the cost of the current machines. This will reduce the cost of on-demand printing even further.)

I chose Amazon’s CreateSpace simply because the relationship with Amazon makes it a very simple choice. It solves three problems in one – printing, ISBN number and access to retail distribution. The process is simple enough even for a first time user. I had only one issue that appears to have been more a problem with UPS than with CreateSpace.

You can use CreateSpace as a channel to Amazon, or simply to print copies of the book to sell after presentations or from your own website. (We sell the PDF version from our site, all print copies that are not in-person sales are handled by Amazon.)

Now, when an order is received at Amazon, it’s printed at CreateSpace and shipped without any additional effort on my part.

It is a little more complicated to be listed in Amazon if you use LuLu or other on-demand publisher.

You need to provide an ISBN

While not necessary if you plan to only sell direct, an ISBN number is essential if the book is to go into any distribution channel or to a retail bookshop. Some places want to charge up to $250 for an ISBN to be allocated to your book, but CreateSpace include the ISBN for no additional charge. You simply leave a blank space on the cover design for where the ISBN will be imposed and printed.

Booksellers worldwide can order your book by ISBN.

You need to get access to distribution channels

Unless you plan to only sell in person and through a website, you needed a publisher to get access to the retail book channel. CreateSpace automatically offers listing in Amazon via a simple checkbox and price setting. (You set the price for Amazon, although they will tell you the minimum price you can sell and still get a return!)

Although there are other booksellers – who can order the book via the ISBN – I didn’t think there was value in seeking to be listed at Barnes and Noble or other bookseller. My book can be found on Amazon or ordered by any bookseller and that’s enough. I also figure anyone in our industry (loosely defined as Digital Production, Post Production or Distribution) will likely buy online rather than attempt to find any give book in a walk-in bookshop. Most likely they will go to Amazon where the book is listed.

Open, unmediated access to the Amazon retail site is one of the most significant changes that made self-publishing practical.

You need to do your own publicity and promotion

In theory, your publisher is going to promote and publicize your book. In theory. In practice what mostly happens is that the book is listed among all upcoming books in your category in a publication circulated to bookshops (so they will advance order copies). They’ll send out an email to selected, somewhat appropriate media and bloggers, and that’s about it.

You might get a 30 minute presentation spot on a publisher’s booth during a trade show but by-and-large that’s the publisher’s contribution to promoting your book. Most authors will expend effort to promote the book themselves anyway.

Which is another reason to consider self-publishing. If you’re going to need to promote your book yourself anyway, why not just promote your book yourself and leave the publisher out?

I wrote an article for the 2009 Supermeet Magazine (available shortly for download – check LAFCPUG.org) on growing a market for your independent production. That information would be equally valuable for building a market for a book, using modern PR techniques and (don’t hate me) “social media”. (There is more in The New Now on using the same techniques to build a business – naturally with a lot more depth.)

From my perspective self-publishing has been a positive experience. I get to keep my unique style and voice; I get to control how the book looks (not important to everyone but it is to me) and most importantly, I get to keep a larger portion of the return from my hard work. To date, we have done significantly better on the books than I would have had I gone down the more traditional path. Given the sorts of advances now being offered by publishers (trending toward half what they were five years ago and not enough to cover the time to write a book) I have done very, very much better from fewer sales than I would have had I published via the traditional route.

And here’s a final benefit. Author copies from CreateSpace are at cost. They are much lower, particularly for B&W/Grayscale books than you would think, such that my New Now book is often my new ‘calling card’. It’s a inexpensive way to keep people thinking of you and recognize the value I can add with consulting and other services.

As long as the six “You have to” issues listed here aren’t deal-breakers for you then I recommend you give it a go!  Got questions? That’s what the comments are for.

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Business & Marketing

How to get paid faster!

This is summarized from a small section of the “Work Smarter” chapter in The New Now: How to grow your production or postproduction business in a changed and changing world.

Never feel reluctant to invoice customers. You have done great work for them, helping make them more money (or you don’t have a future) so there’s no reason to feel the slightest bit embarrassed about wanting to be paid, and paid promptly.

Pay Fast

Let’s consider the other side of the equation: if you want to be paid fast, pay fast yourself. Unless you never want to do business with a supplier or subcontractor again, keep the relationship good by paying when due, or ahead of when due. Doing so will keep the business relationship alive and improve your reputation. You’ll become a valued client of theirs and get preferential treatment if it ever comes down to a choice of doing business with you, or with someone else.

You are not a bank – reset your status with customers

If you find yourself getting strung out for payment then you need to reset the relationship. If necessary, go to those customers who are slowing payment and point out that you’re a production company, not a bank, and since you won’t be getting a big bail-out you rely on customers to pay promptly.

Make sure you make it clear you’ll run through hoops for the customer but you expect them to pay in a timely manner.

Tip for the Paranoid: Watermark all preview tapes, DVDs or files before payment has been received.

Talk about payment terms up front

You’re going to have to talk about it sometime and before you’re committed to the work is the best time. Unless payment terms are part of the agreement, customers can always claim they “didn’t know” or “we can’t do that”. If there is a genuine problem that their company cannot pay on your terms, this is the time to negotiate it, not when the job is complete.

Know your profitable customers

Do you know how much each client’s payment cycle costs you?

In a post at Howard Mann’s Business Brickyard, Colleen Barrett – former President of Southwest Airlines – has this story to tell about examining the profitability of each customer based in part on payment history.

Send your invoice promptly

In a small production or postproduction business, it’s the video work that interests most of us. The fact that we have to run a business as well is kind of a drag. One consequence is that invoices don’t get sent out promptly. Realistically you can’t expect anyone to pay until they have the invoice, so get the invoice out the door as quickly after the client accepts the work as possible.

Important: I’m talking about tried and true customers here. If you’re working with a totally new customer stick to the traditional policy of 30% payment of budget when work commences; 30% at the completion of production (or suitable postproduction milestone, like first draft assembly) and the balance of 40% due on completion. For new customers it’s very unwise to let the master out to the customer until payment has been made (and cleared the bank).

Avoid the mail

Once you let the postal system have control over your invoice you don’t know when it was received unless you take out receipt confirmation, which requires a trip to the post office for each invoice. Not fun. Instead, email the invoice and ask the client to confirm receipt. If you don’t hear back within a day or so, follow up with another email or phone call to confirm that the invoice has been received and that there are no problems with it.

Know the client’s payment process

The larger the company, the more complicated getting paid is. Know their system so you can work with it to your advantage, or at least not make payment unnecessarily slow because of a mistake at your end.

Offer a discount

Depending on your jurisdiction many Utilities and Government bodies are legally obliged to take advantage of any discounts offered.

Make your invoices pleasant

Invoices are a fact of life but make them appealing. Get the person who designed your logo and stationary to design the invoice. Make it look attractive and look like your company.

If you have a relatively small number of customers, like we typically do in production and postproduction, then take the time to write a personal message with the invoice (in the email or an accompanying letter). Make it some funny quote, or poignant statement about the industry, or something relevant to the customer’s business. By including something pleasant you can eventually make people look forward to your invoice. It can be the same message on every invoice, although change it at least every month.

Systematically follow up every invoice

Simply sending out a ‘Past Due’ notice and subsequent monthly statements isn’t going to cause a company deliberately delaying payment any stress or pressure. We’re enabling their poor behavior!

Never let copyright pass until you’re paid in full

One of the things I learnt painfully, was to put a clause in the agreement (never a contract, that scares people) such that copyright in the work did not pass to the client until payment was received in full.

It’s a blunt instrument, and only really useful when the relationship has broken down and future work is unlikely, but it ups the ante because willful breach of copyright has penalties attached that inadvertent breaching does not.

Categories
Business & Marketing Distribution

What is the future of publishing and what does that have to do with production?

On Wednesday I more than doubled the sales of the paperback edition of The New Now. Since the paperback has just gone on sale, that’s not surprising. This is our first foray into publishing via paperback and we’re not certain how it’s going to go. We’ve had great success (for a book) via our PDF publishing efforts, but are only now giving paperbacks a go.

Apparently we’re not alone. Publisher’s Weekly has an article where it notes that there were more books published “on demand” last year than by traditional publishers. On demand is the method we use, via Amazon’s CreateSpace, and is most commonly used by self publishers.

It’s not hard to understand why. The deals being offered by publishers in our space are, frankly, insulting for the amount of work that goes into creating a book. By self publishing – and giving people a choice of an information-only PDF or the same information in a solid book form (well, paperback) – the author gets a larger slice per book. It’s not unusual for an author to make more money from the Amazon Associates commission on the sale than from the publisher. Seriously.

That means that books break even for the author much faster and the author retains the copyright. While in theory the author owns the copyright for a book through a traditional publisher, in practice, while there’s any outstanding balance due to the publisher, the publisher owns the rights.

The way a book deal works is that the author is paid an advance, based on the expected sales of a book. That used to be based on 5,000 units selling at full retail (because author’s don’t get a penny from remaindered and discounted copies). While there have been one or two breakout successes in the space, most books never reach that level of sales so the advance is never fully repaid from sales, and consequently the publisher owns the work. Since the standard contract also allows them to publish new editions with new authors (if the original author declines), effectively the author has lost control of their work.

Self publishing the HD Survival Handbook we reached the level of the currently offered advances with just 375 sales. The book became profitable (i.e. it returned a reasonable return for the amount of time that went into it) at about 600 copies and sales have been way above that.

It’s all possible because new printing technology prints soft-cover books very, very quickly (about 6-8 minutes) and remarkably cheaply, without having to commit to a large pre-order. This technology is going to get twice as fast for half the cost in the generation of printing/binding machines just announced. The cost of printing the book is almost inconsequential.

This is what digital technologies do when they disintermediate an industry. Like the record labels and (to a much lesser degree TV and Movie studios) the role of the publisher – the intermediary who traditionally made the most money – has faded.

An author would have gone to a publisher to: a) fund the printing of the physical books, b) give the book an ISBN, c) get the book into “the channel” – the bookstores where people can buy it, and d) promote the book. Through CreateSpace the paperbacks are printed as they’re ordered (a.k.a on demand) and CreateSpace assigns the ISBN so the book can be found by any reseller. The book is automatically listed in Amazon because Amazon owns CreateSpace. While, in theory, a publisher would promote the book, in practice for most books on production and post-production, that meant sending out a media blast to the usual suspects and from there it was up to the author to promote the book.

CreateSpace gives me all of those. I own the copyright; books are printed on demand inexpensively enough that the return from an Amazon sale is only slightly less than the return from a PDF sale (so the knowledge carries the same value). It’s listed in the only bookstore my customers are likely to use, although it can be ordered in by any bookstore – online or physical. Better still, I directly benefit from new sales, rather than simply promoting the book to recover money I’ve long spent (the advance).

The author is an independent in the disintermediated world. Similarly, digital video technologies allow writer/producer/directors to make their project without needing the backing of a studio. Budgets can be shrunk considerably when you take out the middle man. The most expensive part of an Amazon sale is the Amazon commission, which is more than double  the cost of producing the physical book.

Even using that third party distribution channel, the return per sale is way higher than from a publisher.

Similarly owning the copyright for a reasonably-budgeted production leaves margin to offer producers or allows the creator to go direct to the viewer. (The only thing I call New Media!)

When more money goes back to the producers more production gets done, because shows can be supported by smaller audiences, in the same way that a book can sell many fewer copies but still make a better return for the author than through traditional channels.

Categories
Business & Marketing

Why did Philip Hodgetts write a business book?

At the NAB 2009 Supermeet I revealed, and sold, the first copies of my new book - The New Now: grow your production or postproduction business in a changed and changing world.

This is a new venture for me for two reasons: as the title suggests, this is my first business book and this is also the first time I’ve used a print-on-demand service.

The second is easier to explain. I contemplated going with print-on-demand for 2008’s HD Survival Handboook (about to be revised for the 2009 edition) but the cost of a color book of that size made the selling price, I thought, unattractive. But The New Now is a black and white book only so the economics work out. For anyone interested I’m using Amazon Createspace who handle the whole thing – ISBN number, listing in Amazon, Print-on-Demand, Shipping and I still get a decent cut of the selling price.

I will be interested as to the balance of PDF vs Paperback purchasers there are given the price differential: PDF download is $9.95, while the paperback will sell for $18.95 plus shipping etc. 

As to why a business book this time. Because this knowledge needs to get to people in production and postproduction businesses. The principles would apply to any service-oriented business but the examples are for production and postproduction people.

I also wrote, in part, to force myself to focus on, and analyze the application of, a whole range of new communication forums – blogs, social media, twitter – and new ways to do branding, PR, marketing and advertising that don’t involve the cost structures of more traditional approaches (which still work well for those who can afford them). 

I’ve learnt a lot writing the book. Some of which I’ve been able to put in practice already, and some of which I still have to apply for myself. I could have waited until I had personal results to report, or I could get the knowledge out there so other people could start to benefit from it asap.

The current economic downturn just exacerbated changes that were already happening, but instead of happening over the next five years, they’re happening much more suddenly. The demise (or imminent demise) of newspapers foreshadows the dangers for television and production industries if we don’t adapt. 

I also think that I’m well positioned to write a business book for the production and postproduction industries because I’ve owned and operated businesses in those industries since 1987, and been digital NLE since 1994. We’ve adapted and will adapt again. One of the lessons I learnt along the way is the value of owning content. It’s the last section in the book but the most valuable lesson I learnt in business, other than to keep my prices higher, in some cases doubling the price on products we created and sold. 

So, I’ve bundled up my 36 years of business experience – 22 years of them in production or postproduction – and learnt how to apply all the new techniques and The New Now is the result. It’s an easy read, packed with information that is guaranteed to grow your business, whatever the economic circumstances.