YOUTUBE MAKING NICE WITH ARTISTS: The entire global recording industry has its sights set on YouTube for the perceived underpayment of royalties Google (YouTube’s owner) gives to performers, song writers and record labels. At the heart of the disagreement is a loophole called the Safe Harbor Provision, which allows Google to pay a revenue share on all ads run within specific artists’ channels, instead of paying a flat fee per song the way the streamers do. The RIAA estimates that Google saves over $1B in royalty payments annually thanks to Safe Harbor, and they’re not happy about it. With that as the backdrop now comes the attempt by YouTube to cozy up with artists by inserting concert ticket promos while their videos play. As reported in the attached Musically link, YouTube is partnering with Ticketmaster to service the back end ticket purchases when listeners click to buy. Knowing Google there’s undoubtedly a profit angle to this – guessing they’ve cut a rev share deal with Ticketmaster on any purchases they refer. In the meantime YouTube gets to look like the good guys for once with the artists by promoting concerts for free. Smart move.
MICROSOFT TAKES OFF THE GLOVES: From 2000-2015 Microsoft was viewed as the evil empire of tech because of its hardware and software dominance on the enterprise side of computing. Then the competition caught up and even started to pass them in some sectors of tech. By 2015 there was a bit of a reset with the retirement of co-founder Steve Ballmer and the ascension of Satya Nadella as Microsoft’s new CEO. This transition timed well with the rise of cloud computing, and the fascinating story of how Microsoft handled the pivot ensued. First it was all about collaboration. Mr. Nadella pursued an “it takes a village” strategy by publicly pushing the tech players to work together to develop the data cloud. But then some of the other guys like Salesforce, Oracle, and Amazon started to out cloud Microsoft. So now elbows are being thrown again. Microsoft is going after existing Salesforce SaaS customers, Google is promoting it’s G-Suite as the next gen Microsoft Office, and Apple is still na-na’ing everyone else because it has cooler toys. This leads us full circle to where the Silicon Valley started back in the early 80s, with a rugby scrum of competitors who are all certain they know better than the next guy are happy to tell us all about it.
MORE PROGRESS, MORE PROBLEMS FOR PROGRAMMATIC: As programmatic ad buying begins to mainstream in digital media the industry continues to struggle with the dual challenges of making the transactions both transparent and efficient. Today’s last article in the attached Digiday link tackles these issues. Publishers continue to struggle with the best way to transact programmatically. Ad networks and open exchanges are so yesterday. Between the rock bottom CPMs, double digital impression fraud, and a lack of billing transparency anyone who still relies on networks for buying is stuck in 2012. As an alternative PMPs are solid, but they’re hard to scale. Unless you’re a top 20 publisher with enough inventory to set up a private deal with a large client there’s no way to make this efficient. And header bidding, which was supposed to be the great savior to get the most out of real-time bidding for publishers’ inventory, is as fuzzy on the back end reporting as the networks. All of this is creating frustration for an industry that needs to change, must change, through the process of automation. Here’s to hoping it won’t be as painful going forward.
Have a great Wednesday guys!
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Your dedication to sharing knowledge is unmistakable, and your writing style is captivating. Your articles are a pleasure to read, and I consistently come away feeling enriched. Thank you for being a dependable source of inspiration and information.
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