Social Media’s Enterprise Moment

The recent troubles at Twitter, culminating in the announced departure of CEO Dick Costolo has occasioned all manner of postmortems and punditry as to “what went wrong” and what should be done now to fix it. Most of the suggestions have focused on fixing Twitter’s dreadful UI and discovery tools to make it easier for ordinary web surfers to use, and figuring out how to better measure ROI for marketers.

All of those things could help. But they’re also premised on the idea that the key to success for Twitter is to behave more like Facebook: expand its user base, increase user engagement, then sell that engagement to marketers looking to target consumers based on their interests.

youtube_newswireThat would be a reasonable strategy — and in fact has largely been Twitter’s strategy  — were Twitter really suited to competing with Facebook. But it’s not, and shouldn’t try to be — or shouldn’t only try to be.

In contrast with Facebook, Instagram and Tumblr, Twitter is far-less about its users than it is about the information they exchange there. Like many Twitter users, I suspect, I follow and am followed (under @ConcurrentMedia) by hundreds of people whom I’ve never met and probably never will. We are not “friends” in real sense, or even in the attenuated Facebook sense. We follow each other because we find the information we provide each other useful in some way. Read More »

You say goodbye, I say Hello Music

The artist & repertoire (A&R) reps at a record label are like reporters at a newspaper: a cost center performing an inherently inefficient task that generates no direct revenue of its own but is nonetheless critical to the operation of the rest of the enterprise. Without reporters to gather the news, publishers couldn’t aggregate reader eyeballs to sell to advertisers; without talent scouts, record companies couldn’t break new acts.

The two job descriptions also face similar dilemmas in the digital age: the high profit margins their enterprises once enjoyed, and that subsidized their inefficiency, have been undercut on new digital platforms. But digital technology has done nothing–or at least not enough–to make those functions any less inefficient. Both remain time and labor intensive and you sink a lot of dry holes in each.

That doesn’t necessarily mean digital technology couldn’t do more to make those functions more efficient, however. Or, if not more efficient than perhaps directly monetizable. The problem has been a lack of digital business-to-business tools to facilitate commerce and capture the value that functions like news gathering and A&R create for other enterprises, or for other parts of their own enterprises. Read More »

What media companies could learn from OpenTable.com

UPDATE: OpenTable successfully sold 3 million shares in its initial offering Thursday at $20 a share–well above its target range of $16 – $18. The shares closed up nearly 60% in their first day of trading, to $31.89.

We’re a long way from the heady days of a decade ago when justaboutanything.com could go public almost before it launched and in spite of having no profits, few assets and no idea how to make money.

Good times. Read More »