Thursday, June 24, 2010

Free Television on the Web: Thanks Hulu

According to Read Write Web everyone is looking to Hulu as the future of Internet TV. The joint venture between several major networks, Hulu delivers free, ad-supported programming via online streams - an untested model for long-term profitability, at least when it comes to television. While consumers have been enjoying the service since its launch in 2007, happily watching free TV shows and movies over their PCs and even their TV sets thanks to Media Center plug ins and other unofficial hacks, the company itself is still trying to navigate this new online landscape and effectively monetize their content. Now recent statements by a News Corp exec have people wondering: can Hulu make the ad-supported model work? Or does the company have other plans? One of the primary objectives behind Hulu was to put free programming on the Internet to combat the rampant pirating of TV content that took place on sites like the popular file-sharing destination, The Pirate Bay. As iTunes did with music, the idea is to make using Hulu's service easier than having to go out and seek the illegal downloads. Although iTunes charges for music on a per-file basis, Hulu, too has a business model that makes you pay - except in their case, you're paying with your eyeballs, not your credit card. Using video ads, Hulu has been attempting to monetize its service, but those efforts have been difficult at times. This spring, for instance, Screen Digest analyst Arash Amel claimed that Hulu had only sold about 60% of its ad inventory. "What we've seen is rapid growth in consumption, but the advertising isn't keeping up," he said. While these figures, if accurate, could be reason for concern, many feel that the profitability of an online video venture of this nature takes time to develop. Eventually, the ad-supported model would work for Hulu as it has worked for numerous other websites and services, supporters claim. Besides, more recent deals seem to bode well for the site. Case in point, this month the Publicis Groupe announced a multi-million dollar ad deal that involved targeted advertising to particular Hulu demographics. The deal is said to represent a "significant increase" in spending on Hulu. Despite the promises ad deals like this hold, there is still debate as to whether or not Hulu is going to stick to the ad-supported model or try something new. At a conference last week, News Corp. deputy chairman Chase Carey made a pronouncement regarding this point that raised more than a few eyebrows: "I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value," Carey was quoted in Broadcasting & Cable. "Hulu...needs to evolve to have a meaningful subscription model as part of its business." This seems to jive with earlier reports where News Corp. CEO Rupert Murdoch had also hinted at the site's plans to add premium services. "Are we looking at it with a view toward adding subscription services and pay per view? Yes we are," Murdoch had said. But "looking at" and "doing" are two very different things - where does Hulu stand now? Has their core philosophy - that is, their belief in the ad-supported model - changed? According to AdWeek, it has not. In the article the company claims their ad-supported free service is still the one that "resonates with the largest group of users" and that any additional models would just serve to complement that. Despite any official confirmations from the company, it is clear that Hulu has intentions to launch value-added services on top of its free, ad-supported model in the coming months. These may include pay-per-view options and some sort of subscription model. However, that subscription model would be there to provide users with value-added services that they couldn't get from the free model alone. Perhaps behind the scenes interviews? Sneak peeks? Actor interviews? Who knows...but the possibilities are endless. Why is this clear despite the company’s confirmation? It comes down to simple math: We've now seen three different statements about these premium services -Carey's recent remarks, Murdoch's quote from earlier this year, and anonymous sources quoted by Dan Rayburn in Streaming Media who hinted that Hulu's iPhone app won't launch until "Hulu rolls out a subscription based service." The iPhone app, in fact, may be the real secret the company is trying to hide. Imagine if the much-rumored and highly anticipated application was linked to a subscription-based model. That could downright revolutionize the way people watch TV. Providing streaming content over the popular Apple smartphone would easily bring in additional revenue and that new source could quickly outperform the profits made by the ad-supported model.

Monday, June 21, 2010

How to Deal With Negative Feedback in Social Media

This post appeared on Mashable and we thought it deserved to be re-posted. We often say that social media is a conversation, and what we mean by that is unlike traditional broadcast and print mediums, which are often one-directional, social media is very much a two-way channel. Not only can businesses communicate with their customers, but their customers can communicate with them and with each other, as well. By and large, this type of communication is a good thing — businesses can form more personal relationships with customers and customers can become part of a community around the brands and businesses they want to support. However, when you open the conversation up to anyone, you can also potentially invite negative criticism that you need to be prepared to deal with. Here’s a quick guide to dealing with negative feedback on social media. Identify the Type of Feedback The first step to dealing with negative feedback is determining what type of feedback you’ve received. Negative feedback comes in a few different flavors, each of which is best dealt with by a different type of response. Determining which type of feedback you’re dealing with, is an essential first step toward figuring out what is the appropriate response. Straight Problems – Someone has an issue with your product or service and has laid out exactly what went wrong. This type of feedback is negative in the sense that it paints your business in a poor light, but it can be helpful in exposing real problems that need to be dealt with. Constructive Criticism – Even more helpful is when the comment comes with a suggestion attached. Many customers — including some of your most loyal — will use social media to suggest ways in which you can improve your product or service. While this type of feedback may point out your flaws, and is thus negative, it can be extremely helpful to receive. Merited Attack – While the attack itself may not be merited, the issue that catalyzed it does have merit in this type of negative feedback. Essentially, you or your company did something wrong, and someone is angry. Trolling/Spam – The difference between trolling and a merited attack are that trolls have no valid reason for being angry at you. Also in this category are spammers, who will use a negative comment about your product or service (whether true or not) to promote a competing service. Decide How to React Once you’ve figured out which type of feedback you’ve received, your next step is to determine the type of response necessary. The number one rule when responding to all criticism, even the negative type, is to stay positive. Adding more negativity to the conversation by letting yourself be drawn into a fight with a customer or user will only reflect poorly on your business. When dealing with Straight Problems, a response is almost certainly necessary. Whether that response is personal or a broad public-facing message depends on how widespread the problem is and how many people reported it. Regardless, if a real problem exists, steps should be taken to fix it and customers should be notified that those steps are being taken. Remember that there will be times when such criticism is the result of a perceived problem rather than an actual problem (e.g., someone who just doesn’t like the method by which you do something). Even this type of complaint should be given a response, if only to say, “Thanks for bringing it to our attention, but here’s why we do it that way.” Similarly, Constructive Criticism also requires a response. Certainly there will be times when you won’t want to implement the suggestion given — probably most times you won’t — but you’ll build loyalty and trust by responding to criticism with a positive message. It is well worth the effort to thank those consumers who took the time to provide you with a suggestion or point out your product’s flaws. Merited Attacks are a bit tougher to deal with, because they’re more likely to feel personal. You should always try to keep in mind that this type of feedback, as harsh as it may be, has a basis in a real problem. It is best to respond promptly and with a positive vibe (e.g., thank the commenter for the feedback and assure them that steps are being taken to correct the issue or mitigate their problem, such as offering a partial refund). The final category is the only category of negative feedback that does not require a response. In fact, it is almost always best not to respond to Trolling or Spam. This type of feedback isn’t really feedback at all. It is designed either to bait you into an unnecessary and image-damaging fight, or to siphon off your customers using underhanded tactics. You should always ignore this variety of feedback, and when appropriate, remove it as soon as you spot it.