Every morning I listen to the radio while I’m getting ready for work. Today was kind of interesting in that there were several sound bites from the president and would be presidents about various ideas to solve the “energy crisis.” While I have chosen a specific candidate for whom I am rooting, I have to say that my candidate’s response did not impress me. In fact, none of the proposed suggestions impressed me. Each seemed to be a half assed suggestion designed to get votes that would end up costing us more money in the long run and would not present a real solution to the problem.

After the politicians got done railing about things government could do to solve the problems, there was another story that caught my attention. It seems the Rockefeller family is demanding that Exxon Mobil invest more money into research on alternate fuels sources. You see, the Rockefeller family has a $4 billion stake in Exxon Mobil and they have this crazy idea that maybe the company should do a little work to develop potential revenue streams in case the public has actually gotten the notion that dependence on a finite resource for all of their energy needs is sort of a bad idea, or in case that finite resource reaches the ultimate fruition of its finiteness. While this is obviously an instance of the Rockefellers wanting to remain rich (and who can blame them?), it is refreshing to see someone stepping up and saying “Hey, you know what, we have a few billion dollars in record breaking profits this year, let’s get ahead of the curve, stop waiting for government subsidies to support this research and let’s just knuckle down and build something.” In other words: getting America back to the business of doing business, instead of hiding in a corner bitching about foreign competition, waiting for someone to hand them a subsidy, a tax break, and a tariff to cover their ass…

By now you are sitting there thinking, “What the hell does this have to do with electronic retailing?” Well, hearing about the Rockefellers take action made me wonder: Although I don’t have $4 billion invested in a single chunk with a company I can influence, let alone $4 billion, I started wondering if there was stuff I could be doing that would make a little dent in the fuel situation. The consensus seems to be that fuel prices are being driven higher by demand. So, the solution would be to stop buying gas. Well that’s all well and good, but I already use public transportation to get to work (a luxury we have in DC), so the only reason I ever really use my car is to go shopping.

That was when it occurred to me that shopping online or over the phone is the equivalent of carpooling to buy stuff. Here’s the scenario: on my street there is never a parking space… (more…)

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That is to say, after a 50 plus-year reign of supremacy, has broadcast media begun to slide down a slippery slope to be consigned to history with the telegraph and Morse code? More and more evidence seems to be mounting that broadcast is facing troubled times. First, the market was segmented when cable came of age. The “Big three” were suddenly faced with actual competition and they lost significant numbers of eyeballs. This didn’t do a lot for programming initially, the song “500 Channels and Nothing on” sort of summed up the early cable landscape (with the possible exception of MTV, in the early days). But eventually, the industry found its footing and went the way of the magazine industry with channels dedicated to niche markets—think the History Channel for old men, the Food Network for people who like to eat, the Travel Channel for people who want to see the world without leaving their house, and Animal Planet for people who can sit through six hours of Ron Reagan commentating the riveting action of a dog show.

And while radio has always been a bit of a wild-west environment, the world reacted to the homogenization of content with satellite radio and our friends (soon to be friend) XM and Sirius (maybe Xirius, quick run out and register that URL). Once again we have channels that are designed to appeal to a much narrower demographic based on the inescapable logic that there may not be enough of an audience to make a radio station devoted entirely to the delta blues genre in any one metropolitan area, but if you take all of the people from all of the metropolitan areas in the country and add in the smattering of people in between those places, suddenly you have a potential audience that rivals the legions of Britney Spears fans that used to exist. And Clear Channel had to go running to a judge to make sure its leveraged buyout isn’t plagued by nit picky questions from a lot of bean counting bankers.

So, we see the broadcast universe moving to a model of medium-casting, with content appealing on different channels to smaller groups of people. But where do we go from here? (more…)

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In my role as editor of the e-weekly news from ERA, I end up reading a lot of articles about retailing statistics (I know, heady, glamorous stuff) and there are two things that keep popping up: retail sales generally are growing at around 4.8 percent while online purchases are making up a bigger percentage of sales this holiday season (20 percent to $39 billion, according to Jupiter Research). If you extrapolate that to figure out total holiday sales, we know that Americans will be spending $195 billion. But there is one factor that is lurking in the background that throws the whole equation into turmoil. Thirty-three percent of consumers planned to buy gift cards to the tune of a staggering total of $26.3 billion

You may be asking yourself, “Why should that matter?” Well, for one thing, $26.3 billion is not being recorded as part of the holiday shopping season, because that revenue is not recognized until the gift cards are redeemed. Or to look at it another way, the actual total collected by retailers if you throw in the gift card number will be $221.3 billion. So if $195 billion without gift cards represents a 4.8 percent increase, the math says that $221.3 billion represents a 19 percent increase in revenues over last year. Of course, that doesn’t include gift cards from last year. So while the analysis of the holiday shopping season is all glum and foreboding, the nay saying should be taken with a $26.3 billion grain of salt. (more…)

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