Tuesday’s Topics . . .

THE DOJ COMES CALLING:  Oh boy . . . as if the controversy around agency fee transparency wasn’t challenging enough, now comes news that all four of the major holding companies have received subpoenas from the DOJ over potential bid rigging.  These allegations center around the practice of inflating production or post production work costs to create more revenue for the Holding Company.  In simplest terms think of the HC’s lead AOR winning a piece of business by offering a lower fee structure than the competition.  Then to make up the money on the back end the AOR sublets work to a production company which is owned by the same HC.  That production company then jacks the price up, usually through increased billable hours.  Since these costs are harder to quantify they’re easier to inflate.  Keep in mind these are just allegations, and nobody has been found guilty of bid rigging yet.  Regardless, it’s not exactly the dirty laundry these HCs want to have out on the line.  (link)

APPLE’S PODCAST PROWESS:  Yesterday Apple released some stats around their 2016 podcast footprint.  The 10B # they’re quoting is a combination of downloads and streams, as those are the two primary ways podcasts are distributed.  According to Podtrac, Apple’s 10B podcasts represented 65% of the total podcast listening worldwide in 2016.  For context I’m including two articles from RAIN.  The first is the story itself, and the second is a deeper analysis of the attempts to standardize podcast measurement across downloads and streams, and reconcile uniques by episode vs. total podcast series.  Given the momentum podcasting has picked up in 2016, we’re sure to see continued growth (and attention) on this topic in the years to come.  (link 1)  (link2)

RIP 2016:  Towards the end of every year you start to see the post mortem on people or things we’ve lost over the previous 12 months.  This year Digiday is jumping on the trend with a summary of the brands we lost this year.  Hard to believe Meerkat is already gone.  Seems like yesterday (at SxSW 2015) when they debuted.  I can vividly remember an over-served client suggesting Meerkat would be the “Facebook of live video”.  Just 20 months later FB actually has live video, and Meerkat is DOA.  The demise of others on the list, like Vine and even Sports Authority, have been well-documented throughout the year.  But it’s still remarkable to see these companies on a list together.  And I seriously have no idea how the “OG” made it on this list.  Did the Russians just hack Digiday?!?  (link)

AND ONE MORE THING . . .   Speaking of ditching things which were once hot, here’s an extra nugget for you today.  Remember about 4-5 years ago when the entire world was moving from URLs to QR Codes?  Well check out the image below – from a real (but anonymous) digital agency white board.  Pretty funny!

Have a great Tuesday guys!

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