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Disney/ABC were the first to offer television shows via iTunes on the day the video iPod was announced. NBC followed shortly after but raised the bar by adding more content and across more of its properties than ABC offered. Now Disney is bringing in some of its big guns like ESPN and ABC News to iTunes, which I think is great for Apple.
ABC News will be the first free content available and will include ads. It would be nice if this leads to the ABC World News being available every day immediately after airing. Segments from Good Morning America and World News will be the initial free news available, I assume they’ll add more if those get good traffic.
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Someone the other day said to me, “I realize the Web is a fast growing communications medium, but isn’t most of that growth among younger demographics?” Well, there is an easy answer for that: “No.”
The latest evidence comes from a Burst Media survey (see story in eMarketer). The survey shows a rapid shift among people age 55+ from time spent with traditional media to time spent online. Among the survey respondents in this age group, 60.7 percent said they used the Internet more this year compared to last year.
Also, according to statistics from the Pew Internet & American Life Project, 71 percent of Americans, ages 50-64, now use the Internet.
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The Dotcom Bust of several years ago was a financial response to an overhyped reality. This time it looks like valuations are based on performance metrics. Today, Piper Jaffray raised the target price on Google to $600...a 35 percent increase over its previous $445 target. Story here.
The entire Internet sector has risen about 22 percent in the last eight months. It has also risen almost 350 percent since “The Bust” low. Now that’s ROI!
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As a follow-up to yesterday’s post, the same Credit Suisse survey that raised online advertising growth estimates to 32 percent for 2006, also revealed that leading companies are now allocating more to online advertising than any other category...including magazine and television. Story here. Online advertising was in third place the previous quarter, but the new survey results would indicate that online has clearly reached the tipping point.
The survey involved 90 large companies with annual ad budgets averaging $22 million. The Bloomberg article quotes Rosemarie Ryan, advertising agency president of J. Walter Thompson’s New York office. “It’s a seismic shift for our business. Advertisers know they have to find new ways to get to people.”
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Bloomberg, a leading provider of business and stock market analytics, reported recently that Credit Suisse First Boston analyst Heath Terry upped the estimated 2006 growth rate for online advertising from 21 percent to 32 percent. Terry, who has a five-star rating from StarMine, has proven especially prescient at predicting growth in the Internet sector.
Online advertising will reportedly hit $16.6 billion in 2006. The biggest growth (65 percent) will be in online ads that utilize sound, animation and interactive features.
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