My 1600th Post - Why Vinyl Matters ...

I always mark my centenary posts with a reflection of some sort.  This is no exception.  Here's my 1600th.  It's about vinyl.  Yes, vinyl.  And it's not simply a nostalgia piece.  It's about where I'm at. Right here.  Right now.
Here's the thing.  Although I am a "digital guy," I not only appreciate -- I crave (as we all do, more than we think) -- the offline physical world.  That's what this post is about.  A reminder of how important that physical reality is in this increasingly digital world where experiences and purported meaning become more and more virtual and, hence, remote.
Here's a reminder.  "Real" experiences matter most.  Touching.  Feeling.  Sharing.  Communing.  
At last year's Grammy's, I attended a gathering of music industry execs at a swank Beverly Hills hotel. But this was no typical event. It had some real meaning. Real appreciation for the power of music (something about which I absolutely believe ... because I feel it every day ... my therapy ... my chill).
After speaking with some of the guests for a few minutes at this event, a featured guest -- a young woman sitting behind a typewriter -- asked me to sit down.  She was an author.  A poet of sorts. And, her tool of the trade was a non-electronic Smith-Corona.  Remember those?  Old-fashioned typewriters that no one uses anymore.  As she typed, I asked her what spurred her, as an artist, to type with a manual Smith-Corona in our digital world.  She answered that it was precisely that -- the search for the physical ... the tangible -- in our increasingly virtual digital world.  And she told me that she was not alone.  That typewriters are making a comeback.  And, here's the thing.  This was no simple nostalgia.  This was not me talking.  She was young.  No more than 25.
Which brings me to music -- and to vinyl.  We all know that vinyl too is  coming back in a big way.  And the millennials are leading the way.
What's going on here?
It's simply this.  It is the search for something tangible.  Something that can be touched.  Something that has some kind of feeling of permanence -- a permanence that gives it increased meaning.  Digital doesn't have that.  You can't go to a digital store and flip through albums and discover great new music that way.  And, "that way" is very very cool.  And, fundamentally different.  You actually touch that vinyl.  You make the "connection" -- and it connects with you.  This is something that digital natives have missed -- and want to bring back.  Amazon -- the king of everything "e" -- recognizes this.  That's why they are bringing back physical bookstores in which we can all simply hang out, sift through stacks of actual books, and browse to our hearts delight.
We see this counter-reaction to digital in our interactions as well.  Music festivals have sprouted everywhere at an accelerating pace.  Millennials save up all year and spend millions (billions) to make annual pilgrimages to Coachella, Bonnaroo, Outside Lands, Life Is Good, and hundreds of other festivals all over the planet.  Why?  It goes beyond the music (although the music itself is tribal).  It goes to our core desire as human beings to have a sense of physical community in our increasingly disconnected (connected?) virtual digital online social media world where we have hundreds and sometimes thousands of friends ... but, how many of those are real ... or matter?
That's why vinyl represents a movement.  It is a search for something physical and a bit more permanent.  For gatherings of the tribes.  For meaning.  For experiences. 
And, after all, isn't life ultimately about real experiences and meaning ... and not just accumulating virtual "stuff" (or physical stuff for that matter)?

Magic Leap(s) To $1.4 Billion - AR Hype?

Magic Leap, the enigmatic augmented reality (AR) company tucked away about as far as possible from Silicon Valley (in Florida), just scored an astounding new round of $793.5 million (at a post-money valuation of $4.5 billion).  That brings its overall total financing haul to nearly $1.4 billion.  Insane, right?  A sign of a coming tech melt-down apocalypse?  Reason overtaken by AR hype?

Well, not so fast.

First, AR as an industry is expected to be globally massive -- research firm Digi-Capital pegs it at being $120 billion by 2020.  And, despite the tech and media world's current fixation with virtual reality (VR) -- which is here and now -- further-out AR is expected to dwarf the overall VR market (which Digi-Capital pegs at a comparatively modest $30 billion).  That means that AR ultimately will follow the 80/20 rule -- grabbing 80% of the overall "immersive" market.  Why?  Because AR's partially (rather than fully) immersive reality gives it much broader consumer and enterprise application.  Think of it as the AR market being analogous to the ubiquitous mobile market, whereas the VR market is more analogous to the more limited game platform market.  My firm, Manatt Digital Media, previously laid all of this out (and other important factoids) in a compelling VR/AR infographic that lays out the overall market opportunity and key players in it (and is worth checking out here via this link).

Second, with this "mother of all rounds," Magic Leap does much more than leap over competing AR players -- it catapults them.  How can other start-ups compete against that?  Mega-rounds of capital don't guarantee success, but it certainly doesn't hurt.  That kind of money empowers Magic Leap to grab the land in this global AR/immersive land-grab.  It also affords long-term experimentation and patience to "get it right."

Third, just think of the pedigree and diversity of Magic Leap's overall syndicate.  It includes Chinese e-commerce giant Alibaba (which led this new round), Google, Qualcomm, Warner Brothers, and J.P. Morgan (just to name a few).  Those are respectively behemoths in (i) international commerce and social media (among its many "talents"), (ii) search and video (well, all of you know who Google is), (iii) mobile, (iv) content and media, and (v) finance.  Now that's a well-rounded round of players that, together, are committed to freezing out any competition and drive overall success across all consumer and enterprise channels with their collective reach and influence.

Again, none of this guarantees product excellent, market acceptance, and overall success at mega-scale.

But, it certainly doesn't hurt.

So, hype or cold hard reason?

Yes, there may be some froth here.  But, with an endless string of potential suitors all fighting for some love in this hyper-competitive round and amidst this opportunity, this valuation was cold hard reality.

In other words, the invisible (augmented?) hand in action.

Yahoo Says "No Mas!" Officially Puts Itself On The Block

Well, ladies and gentlemen, Yahoo! is now officially on the block -- announcing yesterday that it is seeking "strategic alternatives" -- a move it signaled just a couple months back.  (Concurrently, Yahoo! also announced that it is "simplifying" its business -- translation, laying off 15% of its employees (essentially to ready itself for a sale)).
(Image to the left courtesy of Gizmodo.)


As I wrote not so long ago in an earlier post which is worth reconsidering here given the news, Yahoo!'s fate is a wake-up call for all of us in the digital media business (and presents an opportunity for the ultimate buyer, so long as it moves aggressively).

What happened here?

Well, Yahoo!'s media strategy certainly didn't help.  It failed, plain and simple.  I wrote a detailed post about this about one year ago (titled "Yahoo Kills Its YouTube Killer - So What's Still Alive?") when Yahoo! threw up the white flag to its long-rumored, but not-to-be, YouTube "killer."

As I wrote then, that move "demonstrat[ed] Yahoo!'s continued indecision and overall flailing (failing?) in the OTT video content space.  And, this certainly is not an opportune time for flailing -- for an unfocused/scattered/disrupted (you choose the word) video strategy (or complete lack thereof?) when the video focus/strategy/execution of others (behemoths like Facebook and Snapchat and others like Vessel) are ever more sharp, precise, resourced, abundantly clear ... and, with some, massively successful (by all accounts, Facebook is killing it)."

Sad indeed.  After all, Yahoo! had every opportunity to massively succeed -- it controlled uniquely compelling resources and ingredients (that I discussed long ago in a blog post from 2013) that gave Yahoo! the potential to drive real success as an alternative to YouTube and in the burgeoning OTT world.  But months (now years) ticked by and, alas, little came (except a revolving door of new execs and departing frustrated execs).  Yes, there was significant video activity, but no recognizable strategy to it all (nor any real reported success in those efforts).  As I reported back then, many senior execs with whom I had spoken confirmed overall frustration time and time again.  In the words of one respected digital exec -- and former Yahoo! senior exec on the content side who left in frustration -- "Yahoo!'s video strategy had been overtaken by confusing multiple layers of decision-making, internal conflict, and what some even called chaos."  Nor did it help that Yahoo! failed in its attempt to buy a controlling stake in Dailymotion, Europe's YouTube.  Not its fault (French regulators killed that deal), but still failure to launch.

Meanwhile, as Yahoo! flailed, the video world radically changed.  What once was, in essence, a YouTube-only video world for creators is now, of course, a world of multiple competing video platforms with massive competing players like Facebook, Snapchat, Netflix, Amazon, Hulu, Sling TV (and the burgeoning number of stand-alone OTTs like NBC's Seeso).  So, as I wrote last April, and faced with those realities, "Yahoo! is running out of time amidst the current great OTT video land grab of 2015."

But, even less than one year ago, I still felt that Yahoo!'s media strategy was potentially salvage-able if it "ha[d] a major Dailymotion-like acquisition trick up its sleeve that will soon come to light and finally catapult it into the OTT video big leagues (where it absolutely could belong if it had the will and focus)."

Sadly, that simply was not to be (although it could have been).

And now here we are ...

Comcast/NBCUniversal M-GO(es) For It! Fandango Becomes An OTT


Comcast/NBCUniversal.  Who knew?

As we closed out 2014 (about one year ago), that U.S. media giant stood where virtually all other global media giants stood when it came to digital -- i.e., essentially nowhere.

What a difference a year makes (make that more like 6 months).

Since August 2015, check out Comcast/NBCUniversal's digital mega-moves:

-- $200M investment in Vox Media
-- $200M investment in BuzzFeed
-- Comcast launches mobile and millennial-first, short-form driven "Watchable" service
-- NBCUniversal launches longer-form stand-alone OTT "Seeso" service
-- and, oh yes, don't forget NBCUniversal's continued joint venture partnership in Netflix competitor Hulu which, in 2015, turned on the cash spigot in a massive way to secure exclusives to Seinfeld and others -- and also to double down on originals.

And now this.  Just a couple days back, Comcast/NBCUniversal quietly entered the full-on OTT platform space all alone (and without any JV partners) when its Fandango service bought long-neglected M-GO out from under its owners DreamWorks Animation and Technicolor (financial terms weren't disclosed).

Bravo Comcast/NBCUniversal.  Bravo! (which is an NBCUniversal network by the way).  Comcast/NBCUniversal is now well ahead of the curve versus other major U.S.-focused media giants -- certainly the one to watch.  Time for others to take a look at what they are doing and, if nothing else, use that for inspiration to do something on their own ...  In most cases, finally do something, because the clocks on change are only going to spring forward faster.