Good reading from ACBJ — Feb. 21

Baltimore Business Journal — Comcast to unveil ‘ads on demand’

The Business Journal of Milwaukee — Wisconsin a test site for Volkswagen’s offer of free car insurance

St. Louis Business Journal — Switzer brothers’ relaunch of licorice empire tops $2 million in sales in first three months

Washington Business Journal — Ana Marie Cox: After a year of deflating the pomp and circumstance of Washington, political gossip Ana Marie Cox, aka the Wonkette, talks about blogging, bad-mouthing and getting paid for it

Media business model changing

Washington Post: News Media Grope for the Right Formula

It will take years of experimentation, involving companies of all sizes and vintages, for the news media to refine the new models and settle into a sustainable new structure. No doubt great fortunes will be made or lost in the process. But in the end, I suspect, our industry, like most others, will come to be dominated by a handful of national and super-regional news organizations that can offer readers and advertisers a full range of differently priced news products through a variety of media.

More on the dangers of distracted drivers

Live Science — Drivers on Cell Phones Kill Thousands, Snarl Traffic. New study finds that 20-year-old drivers using cell phones have the reaction time of a 70-year-old. The Human Factors and Ergonomics Society, publisher of the journal of the study, estimated that cell phones caused 2,600 deaths and 333,000 injuries a year in the United States. That estimate is from a 2002 study by the Harvard Center for Risk Analysis. Tip: Buzzworthy

Now just put cell phones drivers into an S.U.V. for a real threat.

Marketing Social Security reform

MSBNC — Social Security: A Daring Leap — President Bush makes his proposed private accounts sound like the opportunity of a lifetime. But the fine print shows they pose great risk for you—and the nation. Newsweek’s Alan Sloan takes a look at the numbers behind the push for Social Security reform and finds there has been more success in marketing the reforms rather than proposing reforms that equitable reform it.

If the president really wants to fix Social Security rather than pick a political fight — and the Democrats feel the same — it wouldn’t be difficult. They’d compromise by putting more money into the system by raising wage taxes a tad, taking less out by increasing the retirement age and trimming benefit formulas and setting up private accounts funded by wage earners, not by government borrowings. Put a few willing negotiators in a room and a deal’s done in a month. I won’t hold my breath, though.

Bush has marketed the pants off the Democrats by setting the terms of debate. Do you want to pay higher taxes or lower taxes? Clearly, lower. Do you want to pay estate tax or not? Do you want private accounts, or don’t you? He’s done a fabulous job of showing the goodies—and of hiding the costs. People, naturally, have opted for the goodies. The Bushies are in full sales mode, including sticking recordings on Social Security’s phone lines preaching that the system has to change. In the name of empowering my kids, he’s asking them to pay full freight for my retirement and for trillions in new borrowings, while forking over the same wage taxes for lower benefits. If he can sell this one, the Marketing Hall of Fame should start planning his induction ceremony.

Good reading from ACBJ — Feb. 14

Bizdemographics — Hartford carries the heaviest economic stress of any large city

Business Review of Albany — Spitzer: Good ethics key to free market

Atlanta Business — New company rolling out IP television

Austin Business Journal — Budding tycoon balances business with high school classes

Buffalo — Reverse mortgages are gaining momentum

San Francisco Business Times — SBC seeks a starring role in movies: $4 billion fiber push pits telecom giant against cable firms, Netflix

There’s no business like show business

The New Yorker — Gross Points: Is the blockbuster the end of cinema?

The movie Troy is considered a failure even though it grosses a half billion dollars. Sideways is considered a success with a gross of $22 million. The business of movie making is as fascinating as the special effects.

Interesting points in the article, which looks at several recent books about the industry, include:

* Foreign box-office receipts has exceeded domestic receipts since 1993. The entertainment industry is the second largest US export.

* Marketing is the major juice for movies. Average marketing costs have risen from $2 million in 1975 to $39 million in 2003. The push is to generate the buzz for the first weekend.

* It’s the first weekend that counts — typically 25 to 40 percent of its total gross is from the first weekend. Studios book the movie in thousands of theaters and keep 90% of the gross. Theaters don’t mind because they get 100% of the concessions, which is about 35% of their total revenue. Typically a movie will do only half the receipts in the second week.

* DVD sales, television rights and merchandise contracts are major sources of revenue for movies

* TVs hurt movie attendance. In 1947, average weekly movie attendance was 90 million It fell to 15 million by the 1970s and has risen only a little since then. Number of movie released a year has fallen to 200 in 2004 from 700 in 1946.

Tip — How to Save the World: How the ‘Free’ Market Ruins the Entertainment Media who has a comparison chart of 1946 and 2004.

Bandwidth guilt

BBC — Why I’m giving up broadband

Gradually, though, the novelty of a fast connection has worn off. Disillusion has set in. I’ve slowly come to a terrible realisation: there isn’t really that much I can do with broadband.

and

Having nothing much to do with your broadband gives rise to a curious sensation that could be termed: “bandwidth guilt”. When I’m not using it, I feel like I should be. I keep trying to find ways to utilise its sheer power – and justify the £30 a month fee. I feel bad if I don’t.

Looking at the article’s comments, he’s not the only one.

Tip: Techdirt