tag:ulm.svbtle.com,2014:/feedMichael Kareev2015-02-04T11:00:02-08:00Michael Kareevhttps://ulm.svbtle.comSvbtle.comtag:ulm.svbtle.com,2014:Post/social-media-overseas2015-02-04T11:00:02-08:002015-02-04T11:00:02-08:00Social Media Overseas<p>A recent article on how young people use social media <a href="https://medium.com/backchannel/a-teenagers-view-on-social-media-1df945c09ac6">‘Teenager’s View on Social Media’</a>, by Andrew Watts - became so popular that it was reposted or mentioned by the likes of <a href="http://www.businessinsider.com/what-teenagers-think-of-social-media-2015-1">Business Insider</a>, <a href="http://techcrunch.com/video/teenagers-view-on-social-media/518596688/">TechCrunch</a> and <a href="http://www.reddit.com/r/marketing/comments/2rw9rj/a_teenagers_view_on_social_media_written_by_an/">Reddit</a>. The author soon published a <a href="https://medium.com/backchannel/what-teens-really-think-about-youtube-google-reddit-and-other-social-media-a7263924a506">second part</a> and then really grabbed the attention of analysts and media professionals. One of them, Danah Boyd, <a href="https://medium.com/message/an-old-fogeys-analysis-of-a-teenagers-view-on-social-media-5be16981034d">pointed out</a> some flaws in Andrew’s stories. Probably the most important problem Boyd diagnosed was the way in which Watts equalized users across various geographical, income and racial segments. While teenagers today are becoming more and more alike in how they communicate and act, new technologies penetrate markets at very distinct rates – depending on users’ existing habits, needs and sometimes the prevailing political regimes.</p>
<p>In this article I will show how disparity in incomes, access to information and differences in political views shape the popularity of particular social networks. While I am a little bit older that the audience I am referring to (I confess to being born in the mid-90s), I will try to depict this population at a whole, be stay unbiased and remain ‘above the battle.’ This is partly a skill developed by writing on various topics, but also partly due to the fact that I have been following these cases for a while and know how to separate the wheat from the chaff. </p>
<p>While the American market is undoubtedly the largest and the most attractive for research, I want to touch on a different one: Russia. Being <a href="http://blog.hootsuite.com/social-media-in-russia/">Europe’s largest market by number of users</a>, its growth is highly dependent on the relations that tech companies are fostering with the government, as well as on the information that governments are trying to communicate to citizens and other states. In the last couple of years the founder of the social network Vkontakte (‘In Contact’) <a href="http://www.theguardian.com/media/2014/apr/02/founder-pavel-durov-leaves-russian-social-network-site-vkontakte">was forced out of the country</a>, while other networks are either directly or indirectly controlled through pro-government structures. </p>
<p>Ok, let’s start.</p>
<pre><code class="prettyprint"> Odnoklassniki.ru
</code></pre>
<p>Odnoklassniki (‘Classmates’) was founded in 2006 and became the first ‘real’ social network in Russia. However, in following years it became technologically outdated and no longer met the current standards. Yet its audience appeared to be extremely loyal. Being older than that of other <a href="http://www.russiansearchtips.com/2014/08/odnoklassniki-ru-rebrands-ok/">projects</a> (29% of the users are in 25-34 age category, 22% – between 35 and 44, and 17% – between 45 and 54), it remained a resource despite of the changes to the space it occupied. It became so popular amongst less computer-savvy users that they caused problems. The well-known search web-site [Yandex](<a href="http://www.yandex.ru">www.yandex.ru</a>) used to run its own group in Odnoklassniki. And because in Russia, Yandex is Google’s equivalent, people started posting their web queries to the group’s wall, which was visible to everyone. Among advertisements of cheap flats for rent and inquires as diverse as ‘how to treat rhinitis’ or ‘porno for free’, one could find personal information like ID numbers and their expiry dates. It created a lot of <a href="http://tjournal.ru/paper/yandex-ok-group">hype</a> in the Russian segment of the Internet and repeatedly certified the status of Odnoklassniki as a network for elderly people living outside of major cities (essentially, Moscow and St. Petersburg) who were incapable of differentiating between totally different services. During Russia’s invasion to Ukraine, Odnoklassniki became a citadel of pro-Russian users fully supporting the existing regime and reposting pro-state TV messages. As a reminder, all television channels are currently controlled by the government and are extremely successful in brainwashing. There is nothing interesting there for citizens who are reasonably educated. <br>
And I can confirm this outlook. Odnoklassniki is considered out-of-fashion in the age group ‘12 to 17’. Nobody cares about it. Basically, you can assume that this social network is facing the same problems Facebook in encountering in the US: an exodus of younger generations. Why? While generation Z doesn’t want to see their relatives posting something awkward on their walls, Russians are just not getting features they can get in other ways: unlimited media in Vkontakte or the ease and speed of Twitter. In the last year, more and more people became less reluctant to accept what the government is doing on the international scene and how the country is perceived by outsiders. Odnoklassniki doesn’t provide this point of view.<br>
To attract users born in the 90s, Odnoklassniki rebranded the web site and changed the name to ok.ru partly in order to cater to mobile users (who tend to be younger). </p>
<pre><code class="prettyprint"> Vkontakte.ru
</code></pre>
<p>The controversial web site came through numerous changes and alterations but still remains the most lively and discussed: not only because of the recognizable founder Pavel Durov, <a href="http://www.nytimes.com/2014/12/03/technology/once-celebrated-in-russia-programmer-pavel-durov-chooses-exile.html?_r=0">famous for his liberal ideas</a>, but also because the network is constantly evolving, rebuilding itself and resisting the various adverse forces floating around it.<br><br>
In a last few years, VK found a balance by acquiring users across various social layers: from those who support a military intervention into Ukraine to hardcore anime fans. But the common denominator that still attracts everyone is an endless amount of illegal music and movies. Even in 2015, after numerous trials and investigations, one can find virtually any music album or movie that’s ever existed. The previous version of the mobile application allowed to stream everything on-the-go. Imagine – limitless and free Spotify and Netflix in one app!<br>
Moreover, recently a DIY approach led to emergence of <a href="http://w-o-s.ru/article/11808">dozens of pages</a> (they are called ‘publics’ in VK’s universe) devoted to topics as diverse as witch houses (with some high-quality playlists and reviews), moonscape photos or possessing the name ‘high-boots of a big sister.’ They virtually substituted traditional printed magazines and web sites with reviews responding to users’ demands quicker. VK, who initially copied Facebook and its interface but later reinvented itself thanks to the convenient API, gained enormous amount of content and a user-friendly interface that was much easier to use. With almost 55 million monthly users it is the most popular social network in Russia. </p>
<pre><code class="prettyprint"> MyWorld.ru
</code></pre>
<p>The network developed by Mail.ru, an Internet conglomerate, which started as a mail service, is the dark horse of this list. While this <a href="https://corp.mail.ru/media/files/issledovanie-auditorij-sotcialnykh-setej.pdf">report</a> shows that it is the third largest network (Disclaimer: the report is prepared by Mail.ru; however the data is provided by TNS), I cannot understand who the active users are. It seems to be an older audience that uses mail.ru accounts (which automatically provides access to the network) with interests centered around households and daily activities. To me, it is an analogue of Google+ - another social network that simply wasn’t able to gain traction among users. </p>
<pre><code class="prettyprint"> Facebook
</code></pre>
<p>While in the US Facebook is losing its popularity, in Russia its momentum is not yet fully discovered. Not everyone possesses an account here, and the network is still regarded as at least quasi-elite. After the death of LiveJournal, the majority of users willing to type lengthy topics flip-flopped over to Facebook. While this platform isn’t ideal for 300+ letter posts, you can frequently see lengthy messages and even more lengthy discussions. The range of topics is quite broad: from feminism in local suburban trains to the falling Ruble. Also, in the last couple of years, the generation born after 1985 became obsessed with startups and running their own businesses. Eventually therefore, Facebook became a place for informal advertising and bragging about not-yet-launched projects. And because Russian society doesn’t usually tolerate others’ success, lots of ironic and often jealous comments are being poured out in these threads. What starts as a friendly discussion often ends with contracts being broken because of dirty things accidentally exposed in public. The reason for such heated debates going online is probably that Russia - for a long time - was lacking public places for discussion, meet-ups, networking sessions or conferences.<br>
Such online interactions lead to another interesting case: people are adding their business partners as friends on Facebook. LinkedIn is not popular at all, so an active networker (her occupation should include the words “CEO” and “Co-founder”) might have more friends on Facebook than an average undergraduate student from, say, Ohio University. A tendency not to separate private from professional prompted a situation when ‘friends-only’ photos from parties aren’t perceived as something improper by a potential employer. <br>
All this puts Facebook into a category that is usually taken by LinkedIn outside of Russia. It also became a place for more high level debates, with a lot of opinion makers posting on it on a regular basis. <br>
The younger generation (from 1993 on) follows favorite musicians or computer games and participates in contests on Facebook, too. </p>
<pre><code class="prettyprint"> Instagram
</code></pre>
<p>Probably the only service that has usage patterns which coincide with those of the Western Hemisphere. It is basically on course to become the new Facebook: people post, comment and like various personal things here. A free plugin allows cross-posting to VKontakte (all other networks already have in-built support). In the last few months, I encountered more and more private profiles, which means that users are posting very personal stuff. Instagram remains the land of the young: this is strange, given how basic the interface is. Probably because most of the photos need editing in order to look good, less tech-savvy people are reluctant to use the service more often. Some users – primarily 17-26 year old females – have built their brand on Instagram. By acquiring tens or even hundreds of thousand of followers (for which you need to be in shape and be willing to post some provocative photos) such Instagram models generate interest from local fashion stores and sometimes even international companies that sign advertising contracts with the models (or at least support them with free product). Historically, Instagram has been free of advertising (and even now the occasional promoted posts do not really distract), but nowadays advertising comes from users themselves. Any popular Instagrammer might expect dozens of spammy comments such as ‘get a Schengen visa fast’ once they get enough followers. This might eventually turn someone away. Another obstacle that has grown from service’s popularity is a high level of entropy. Once you tag your photo using a popular hashtag (let’s say ‘New York’ or ‘Latergram’), you can be sure that your photo will go down the list immediately – so many snapshots are made and tagged every second that only a very relentless user is going to scroll down to your photograph. This makes it hard to build a fun base, because people might like your photos but still be hesitant to follow you. </p>
<pre><code class="prettyprint"> Twitter
</code></pre>
<p>Twitter is an instrument of the political sphere first and a mockery tool for high school graduates second. It is a powerful gizmo if you set up your newsfeed in the most condensed and compelling way, but kids usually utilize it for mocking others and retweeting jokes. Political activists, however, use Twitter as a messaging service, which allows them to quickly convene groups of people and broadcast information on the municipal and national levels. The revolution in Egypt became possible because of Twitter; Russia is in a similar situation. When access to TV and radio is fully controlled by the ruling party, and when web sites are shut down on the grounds that they favor overthrowing those in power, Twitter remains a relatively safe and fast tool to use. Recent street protests were closely linked to Twitter hashtags, and a lot of them made the “Trending” list of Twitter topics. <br>
While in the US Twitter is more popular among Afro-American users, there is no correlation like that in Russia, nor are there any gender and age spikes. Twitter remains a limited tool for those who are interested in tech and for politically and socially active peers. </p>
<pre><code class="prettyprint"> FourSquare
</code></pre>
<p>FourSquare enjoyed very limited penetration in big cities with developed infrastructure but has never grown into something more tangible. After the application was divided into two – FourSquare and Swarm – usage rates went down. </p>
<pre><code class="prettyprint"> Youtube
</code></pre>
<p>YouTube has never been perceived as a social network but rather as a point of access for shorter video clips (for motion pictures and music albums VKontakte works better, remember?). In the last couple of years new movies and TV shows have been released on YouTube, which has attracted the attention of older (22+) users that are more conscious about piracy. </p>
<pre><code class="prettyprint"> LinkedIn
</code></pre>
<p>One of the most powerful social networks has never taken off in Russia because of the cultural differences. While in the US the concept of networking is widely known, overseas simple cronyism is much more popular. Nobody would agree to have a phone conversation with an unknown person (even if you have common online connections). However, if you are introduced with a good word put in from a mutual friend, the connection can immediately lead to a job offer (even if you are clearly not the well-qualified candidate). Ultimately, such personal relations lead to connections on Facebook rather on LinkedIn. So who still creates profiles? Mainly high-achievers from strong undergraduate institutions (and mainly majoring in economics, accounting and finance), who land their first job in the investment banking or consulting industries and who are already targeting business schools as their next step. So, if Russia had an Ivy League, each alumnus and all prospective students would be on LinkedIn. </p>
<pre><code class="prettyprint"> WhatsApp
</code></pre>
<p>WhatsApp is a convenient app to use when one is travelling. About 82% of Russian citizens don’t possess an international passport (it means they can’t travel outside of Russia - not counting some neighboring countries), but WhatsApp became popular among international students and migrant workers. However, these seasonal employees don’t fall under the age categories we are interested in. </p>
<pre><code class="prettyprint"> GroupMe
</code></pre>
<p>It is a hit in every American university – GroupMe is available on any platform, has different settings and is easy to use at the same time. In Russian colleges, it is not so widely accepted. Why? Again, because of the cultural differences and contrasts in the study process. Education in Russia is not so group-centered, homework is usually done personally at home or a dorm, not in groups. That’s why those who are the largest category in the USA aren’t really covered in Russia.</p>
<pre><code class="prettyprint"> Communities and web sites that grew into networks
Sports.ru
</code></pre>
<p>An important sports web site, which developed a strong base of committed users that are creating a substantial chunk of material. Sports.ru showed that user-generated content could be a sound foundation for a prospering web site. In future I see sports.ru as a platform for over-the-top broadcasting, but clearly the social factor won’t be so critical for its success.</p>
<pre><code class="prettyprint"> Habrahabr.ru
</code></pre>
<p>Lifehacker meets reddit. Add some technological flavor. Get a Mecca of techie dudes. Questions about programming, APIs and web design attract skinny folks around the country that know how to deal with a machine much better than with a human being. I thought that the site’s popularity would go up in lights because of the widespread craze of learning how to program, but it didn’t happen. </p>
<pre><code class="prettyprint"> Look At Me
</code></pre>
<p>What started as a WDYWT blog, eventually inaugurated the era of ‘digital-first-and-only’ media houses. Initially, Look At Me wrote about concert tours and movie premiers in Moscow, but later broadened its perspective, launched additional web sites (Village – about events in major cities, Hopes & Fears – about entrepreneurship and business, FurFur – men’s magazine, Wonderzine – for females), started providing services as an ad agency. Lookatme.ru has lost some of its communications features (editors turned off comments under looks posted in the WDYWT section – it was the most discussed one, often with hundreds of haters) but obtained a digital chic with its classy design and topics like ‘The Fermi Paradox’ or ‘Scientist answer your questions about soils.’ But what’s important is that the LAM team created a number of products that attract and engage a huge chunk of uses between 15 and 25 years old across the whole country – the most loyal, optimistic, energetic and funky audience – given how disperse and localized Russia is, it is an unthinkable achievement. It is something that GQ, Esquire, Cosmo PlayBoy, Rolling Stone or MTV have never achieved – unlike a startup that started with a couple of street fashion photos. </p>
<p>Here is why research and analytical think-tanks get paid: You can never extrapolate from your own common knowledge all the way to other regions and countries. In the cases described above, the local social network surpassed Facebook because of illegal content, Twitter is a political instrument but GroupMe has never become really big. Before nailing any audience, make sure that you understand its habits and background. </p>
tag:ulm.svbtle.com,2014:Post/the-new-republic-blame-the-youngest2014-12-10T06:23:37-08:002014-12-10T06:23:37-08:00The New Republic: blame the youngest<p>Chris Hughes is blamed (and this is pretty reasonable) for breaking apart “The New Republic”: <a href="http://www.nytimes.com/2014/12/06/business/media/new-republic-staff-members-resign-over-management-changes.html?module=Search&mabReward=relbias%3As%2C%7B%221%22%3A%22RI%3A6%22%7D">more than a dozen editors and staff members followed</a> the magazine’s departing editor Franklin Foer and its literary editor Leon Wieseltier in leaving the publication. They were all replaced by newcomers appointed by Guy Vidra, the newly appointed chief executive and Hughes protégé.</p>
<p>As a result, everyone is unhappy now. Contributors and editors accuse Vidra of being snobbish, using faulty language and having a weak understanding of TNR’s roots, while the owner and senior management have already given up their hopes of putting out a fresh issue of the magazine in time for the holidays or of turning the 100-year old behemoth into a profitable business.</p>
<p>While both sides have legitimate arguments in their favor, Hughes’ move was very shortsighted. And the reason for this is his refusal to appreciate the current state of modern journalism. Making money in this field is a troublesome task for any player. The New Republic is full of the traditions of “quality investigative journalism,” which means it’s full of long essays and doesn’t have a lot of space for advertising or special features. But Hughes imprudently determined that he would solve that problem by putting Vidra, a tanned former Yahoo executive, in front of industry legends who effectively invented this magazine and are not going to give up their habits and beliefs. Unsurprisingly, Vidra started <a href="https://www.facebook.com/judith.shulevitz/posts/10152796403051281?pnref=story">‘breaking shit and disrupting everything’</a> from his first meeting with the newsroom, instead of tactfully highlighting the importance of clicks and page views.</p>
<p>Both sides failed to understand that The New Republic <a href="http://www.nytimes.com/2014/12/09/opinion/joe-nocera-the-new-republics-rebellion.html?mabReward=RI%3A6">was losing money for years</a> and has never been a cash cow. The magazine’s previous owner, Marty Peretz, used it as a megaphone to draw attention to issues that were important to him. TNR lent influence and respect to its owners – that is how it ever was. And that major purpose hasn’t changed since the emergence of the Internet, but the magazine’s footprint has dwindled.</p>
<p>When you’re Mark Zuckerberg’s former roommate and worth $700M you can tell the world what you want through your Facebook page or Twitter account. You can speak to the audience you are most interested in reaching. But Hughes decided that a little bit of legacy publication influence never hurts. Currently, he is paying a high price for that legacy, by having to solve problems that still puzzle the finest brains of News Corporation, the NYT and Conde Nast. </p>
<p>The incompatibility of cultures is another problem Hughes didn’t care to think much about. As the Washington Post columnist Dana Milbank said of himself, <a href="http://www.washingtonpost.com/opinions/dana-milbank-the-new-republic-is-dead-thanks-to-its-owner/2014/12/08/ae80da42-7ee0-11e4-81fd-8c4814dfa9d7_story.html?tid=pm_opinions_pop">‘he left the Wall Street Journal to join TNR in the 1990s, taking a 50 percent pay cut and a 95 percent reduction in subscribers for the pleasure of joining what felt like a family.’</a></p>
<p>Apparently, Hughes didn’t expect such a high amount of camaraderie among the New Republic’s authors. He simply didn’t develop enough business nous after he quit Facebook to his own startup, Jumo, which later <a href="http://betabeat.com/2012/03/good-paid-62k-for-jumo-chris-hughes/">was sold for a sum close to just $65K</a>. As George Parker of the New Yorker writes: <a href="http://www.newyorker.com/news/daily-comment/real-crisis-journalism-new-republic">“the crisis in journalism is a business crisis, and it’s been going on for twenty years; the outcome remains far from obvious. Writers and editors at magazines and newspapers live with a perpetual sense of foreboding, which leads to plummeting self-confidence in their own work and a tendency to overestimate the new digital enterprises, or the new digitally rich owners of the old enterprises.”</a>. </p>
<p>It looks like that there is no right answer to how anyone can make a legacy paper or periodical profitable again. You either accept that fact and follow the existing rules, or you try to start taking incremental steps, instead of adding widgets to the web page and asking middle-aged authors to rewrite their articles in a “10 reasons why X is better than Y” format (a la <a href="http://www.buzzfeed.com">www.buzzfeed.com</a>). As the old saying goes, if it ain’t broke, don’t try to fix it. In TNR’s case, the thing you have to try not to fix is the editorship. And that is also something that started to resist any attempts at fixing it much earlier than some had obviously expected. </p>
tag:ulm.svbtle.com,2014:Post/how-to-unbundle2014-10-31T10:39:13-07:002014-10-31T10:39:13-07:00How to unbundle?<p>Recently HBO <a href="https://gigaom.com/2014/10/15/hbo-will-unbundle-from-cable-tv-in-2015-but-ceo-hints-at-internet-bundles">announced</a> plans to start offering its service directly to customers – without requiring them to use cable providers, such as Time Warner, AT&T, or Comcast. While HBO’s step has been a topic of discussion for months (if not years), the company has a myriad of ways to enter this new market. The article discusses which ways will make the most sense, and how they affect the industry in general. The effect of HBO’s decision on other players is expected to be enormous: CBS <a href="http://investors.cbscorporation.com/phoenix.zhtml?c=99462&p=irol-newsArticle&ID=1978514">is starting</a> its own Internet subscription service, while FX and Showtime – no doubt – will also respond sooner or later.</p>
<p>When thinking about how to sell a brand new service, HBO has to keep the commercial interests of its most powerful allies, the cable companies, in mind. They are currently contributing the lion’s share of HBO’s revenues. Unquestionably, they won’t be happy to deal with a new player invading their currently fertile ground. On the other hand, Netflix and Amazon Prime are becoming more and more HBO-alike, by not only delivering content but by also producing it from scratch. In return, HBO has to step onto new ground. HBO’s options for that are as follows:</p>
<p>1) Make all content available online without any restrictions. That is what all fans are praying for and that, which, probably, is not going to happen. Considering the already existing contracts with cable operators or contracts that have to be signed. Also, if implemented, this package will cannibalize the existing subscription base more than any other way of online delivery. However, if properly advertised, this option will attract the largest number of never corders, primarily a younger generation born in late 80s and 90s that has never paid for traditional TV. Giving them a convenient all-in-one method to consume TV shows, the media conglomerate can safely charge way more than $15 per month (this is the amount HBO receives from cable operators today). All of this requires higher upfront SG&A expenses – but those should not be a problem in light of almost <a href="http://seekingalpha.com/article/2572605-hbo-and-cbs-set-to-cut-the-cord">2 billion dollars of operating profit</a>.</p>
<p>2) Make all content available with a time lag, let’s say, 1 to 2 days. Die-hard fans of “The Game of Thrones” cannot afford to miss the latest episode, while other users will happily turn to such a delayed service. I assume that in this case, negotiations with cable companies should not be as tough as in the first alternative above. </p>
<p>3) Make only specific shows available. This alternative doesn’t make sense to me: the pricing of this package might be complicated; as well as the ways in which customers will be able to choose what shows to see. A trial period could probably work, but this opens loopholes for possible fraud using changing IP addresses. When the New York Times erected its paywall, there were numerous ways to get access to as many articles as one wanted. </p>
<p>4) Divide the content or even start producing ‘HBO digital only’ shows, and tailoring them to the tastes of the younger generation. HBO’s content creation group has enough competencies and experience to film series that might be watched on mobile devices or in smaller chunks. Shorter episodes (think of a 20+ minute long ‘Californication’) might be a good starting point. If we want to look even deeper, consider <a href="http://www.slideshare.net/sparksandhoney/generation-z-final-june-17">the 7.6% projected increase in the population of Hispanics teens over the next five years</a>. While they are expected to be fully integrated into our multiracial society, their heritage will still have a considerable impact on tastes and preferences. Also, HBO could pioneer interactive TV (when viewers can vote on the outcome a show). The problem there will lie in cannibalization and scheduling: HBO won’t be able to utilize prime time slots on both channels. The same problem used to face sports leagues, until they made this a priority over and above the interests of teams and players. In HBO’s case, nobody wants to make any sacrifices. </p>
<p>Another question is if HBO will replicate Netflix’s monthly subscriptions or opt for longer plans of, let’s say, 12 months. Analysts and financial departments will root for the latter to ensure the stability of future cash flows, while newly converted customers would like to try such a new offering without a burden of annual contracts. </p>
<p>HBO chose the right moment to introduce the service: after <a href="http://seekingalpha.com/article/2576695-update-netflix-q3-2014-earnings">the Q3 Earnings call</a>, Netflix’s shares went down in light of slow subscription growth, while Amazon is just preparing for the next step <a href="http://www.nytimes.com/2014/09/01/business/media/amazons-bet-on-content-in-a-hub-for-gamers.html">by purchasing Twitch.TV</a>, a web site where you can watch others playing computer games online. As always, the major goal of the online behemoth is to bring as many consumers as possible to Amazon Prime. Various Twitch.TV perks might become free for Prime subscribers. In this case, Amazon won’t be so concerned about not having a big blockbuster under its belt. </p>
<p>The content quality of series produced by Netflix and Amazon cannot be compared with those of HBO in terms of viewers’ appreciation: Netflix has only one definite blockbuster, ‘House of Cards,’ while Amazon hasn’t yet discovered a recipe. If content is still king in eyes of the younger generation, then HBO is well positioned to charge higher fees.</p>
<p>Moreover, it should not be forgotten that Time Warner still owns and cares about its most praised asset. Historically the conglomerate gave enough decision power to HBO, but nowadays it is taking some amount of autonomy back requiring hefty returns and calibrated decisions in the process. That said, HBO might postpone giving digital access to the markets where Time Warner Cable has the biggest piece of the pie in order not to harm itself. Some rumors say that initially HBO won’t be selling content directly but just allow cable providers create bundles such as one of ‘the lowest tier of channels + HBO’ – without making Americans pay for another dozen of shows they don’t care about. That also seems to be the most logical way to comply with the <a href="http://www.fcc.gov/guides/consumer-options-selecting-cable-channels-and-tier-buy-through-prohibition">1992 Cable Act and the buy-through prohibition</a>. </p>
<p>Customers should feel relief about having more flexibility, while their total monthly dues might not decrease significantly. Instead of paying $80 to $100 to a cable provider, the consumer will divide that sum among Netflix, HBO and other soon-to-come channels. But it will be a conscious choice, and, after all, the concept of free will is one of the most important in the western society. </p>
tag:ulm.svbtle.com,2014:Post/fox-and-time-warner-what-was-it2014-07-22T19:14:48-07:002014-07-22T19:14:48-07:00Fox and Time Warner: what was it?<p>The generous offer made by Fox became the first step for Rupert Murdoch, a media executive famous for his deliberate way of pursuing companies he wants to put under his belt, in building the largest vertically integrated media company. But what would Time Warner bring to Mr. Murdoch should this deal finally come through?</p>
<p>First of all, let’s think about the challenges and problems Fox is currently facing. To do that, we need to depict the whole production cycle of bringing a new show to life. The interests of Fox are much broader, but they complement the major product. </p>
<p>Development→Pre-production→Production→Post-Production→Distribution and delivery→Programming and scheduling on-site</p>
<p>Twenty First Century Fox is extremely strong in elements such as Pre-production, Production and Post-Production (which is obvious given they are one of the most successful Hollywood studios). On the other hand, HBO has built the reputation of a solid powerhouse that knows how to turn things around and has made blockbusters out of every screenplay the company has decided to pursue. The most successful franchises revolutionized the way modern people perceive TV by <a href="http://www.slate.com/articles/life/ft/2011/09/its_not_just_tv.html">making it fancy and genteel again</a>. Having this asset in their hands, Twenty First Century Fox would turn into a vertical conglomerate that would be able to offer major providers a solid number of potential blockbusters. </p>
<p>But other side of the spectrum (delivery) is also somehow troubled. In addition to emerged players – Comcast, Dish – that require better and better financial terms, Netflix, Google and Amazon (historically they played a role of pipelines) are becoming more interested in investing in TV production. And what they already have is the obsession of the younger generation as well as ready-to-use delivery channels that can stream the content not only on prehistoric TV sets but also on iPhones and iPads. To battle with these competitors, Fox is in need of leverage that might come along with the vertical integration.</p>
<p>That said, I see these goals in the deal: </p>
<p>• Better economies of scale will help to negotiate preferred terms with cable providers and with the Producers Guild of America. </p>
<p>• Cost savings from streamlined processes and layoffs. In recent years, the majority of big production firms were concerned with day-to-day expenditures and inefficiencies. Supposedly, the combination of different approaches should give rise to a new conglomerate that learns from the mistakes of others. </p>
<p>• Access to sports assets of Turner Broadcasting. It owns rights for NCAA, March Madness, PGA, NBA and NFL games. Fox Sports was trying to compete with ESPN, an unquestioned leader in the segment. Usually, sports rights are sold in advance, and channels fiercely compete with each other. Turner has good relations with NBA dating back to 1984, and is expected to bid for a [new deal that will allow to air games until 2021](online.wsj.com/articles/nba-seeks-to-double-rights-fees-from-disney-time-warner-1405387769). <br>
A recent <a href="http://www.nytimes.com/2014/07/18/business/media/fox-challenges-espn-with-pursuit-of-time-warner.html?emc=edit_dlbkam_20140718&nl=business&nlid=66647688&ref=business">survey</a> made by Harris Interactive shows that live games keep customers loyal and is possibly a reason why they refrain from cord cutting, one of the most critical problems that will need to be mitigated as soon as possible.</p>
<p>• This merger can be considered a warning to Amazon and Netflix: don’t intrude into our territory. I don’t think that these companies will follow the advice, but showing muscles is one of the most ancient war tactics. Alternatively, Google has enough cash on hand to outbid virtually any proposal either by Fox or any other firm. However, I don’t see any reasons why the Mountain View giant will do this in the short-term unless it will be put in an awkward “have-to-respond” position.</p>
<p><strong>The problems that the merger will face:</strong></p>
<p>It is still unclear whether antitrust regulators will allow the deal. One of the most recognizable assets, CNN, is expected to be put on the auction: the government will never allow having two major channels, Fox and CNN, under one roof. Among potential bidders such companies as ABC Network, CBS and even Yahoo <a href="http://nypost.com/2014/07/16/if-fox-wins-scrum-over-time-warner-cnn-could-sell-for-8b/">are mentioned</a>. Analysts predict that the channel can go for as much as $10 billion in a sale.<br><br>
The notion of a fair price is another question. Murdoch is famous for paying hefty premiums if he wants to pursue a deal. It is not in question that he will readily increase the sum he is willing to pay. And he will have to, because some authors <a href="http://www.reuters.com/article/2014/07/18/us-time-warner-fox-whiteknights-idUSKBN0FN0DQ20140718">suggest</a> that Time Warner realizes that the current state of the market is not ideal for transactions like this: very few companies are able to make a counter offer. In this case, Time Warner will choose to wait and drive the acquisition price even higher. Additionally, Fox is expecting to pay 60% of the purchasing price with its own stock. Surprisingly, this announcement moved the stock price down. It makes the financial part of the deal even more intricate. In any case, Rupert Murdoch will overpay. Cost efficiencies of $1bn from consolidating back-office operations are expected but not guaranteed. </p>
<p>Another fear I cannot get rid of is that the deal will trigger a snowball effect: other majors will rush to make acquisitions, sending shockwaves through the whole industry. Google, Facebook and Amazon were already mentioned above: and these are just some examples of companies sitting on piles of cash. They are not technically ready to engage into new business, but the whole environment prompts them to do it. </p>
<p>Lastly, I need to mention Mr. Murdoch’s personality. He is a man who <a href="http://www.newyorker.com/online/blogs/currency/2014/07/behind-rupert-murdoch-urge-to-merge.html">“enjoys competing.”</a>. It might be one of the last deals the aging mogul is administering, and he wants to conclude it on a high note (read – make an acquisition) no matter what it takes. It won’t make the decisions more balanced to plunge his financial advisors into a few months of sleepless nights. <br>
It is obvious that we will see a new wave of industry restructuring. The legacy players that are still out there are too desperate to conserve their power, and they will take on risk in future and go ahead with acquisitions – even if these don’t make sense at first sight. </p>
<p><strong>Update:</strong><br>
As I said, 21st Century Fox won’t give up. It sells its <a href="http://dealbook.nytimes.com/2014/07/25/bskyb-to-buy-italian-and-german-units-of-21st-century-fox/?_php=true&_type=blogs&emc=edit_dlbkam_20140725&nl=business&nlid=66647688&_r=0">German and Italian business units</a> to, supposedly, get money and pull into the Time Warner deal.</p>
tag:ulm.svbtle.com,2014:Post/the-cable-tv-industry-in-the-us-and-an-hbo-case2014-05-13T10:08:35-07:002014-05-13T10:08:35-07:00The cable TV industry in the U.S. and an HBO case<p>Preparing for an interview with one of the largest TV companies, I decided to consolidate the material I read and ideas I came up with in a short <a href="http://www.slideshare.net/nastyhaterz/cable-networks-in-the-united-states-and-an-hbo-case">presentation</a>. Some parts are not self-explanatory and require additional insights. I hope I will post a different article going through each slide. </p>
tag:ulm.svbtle.com,2014:Post/major-sports-leagues-in-the-us2014-05-03T10:29:35-07:002014-05-03T10:29:35-07:00Major sports leagues in the U.S.<p>I was going to make some research on the media side of the major sports leagues in the U.S. and present it using prezi.com. But it appeared that I had to gather basic information about the leagues first. Here is the <a href="http://prezi.com/dha9iuzrflxu/major-leagues/?utm_campaign=share&utm_medium=copy">link</a>. First, I am talking about the whole ecosystem of the professional sports in the United States, then am covering every league highlighting its challenges and important points they deserve closer attention. <br>
Next time I am going to work on my initial idea of covering the media aspect of the leagues.</p>
tag:ulm.svbtle.com,2014:Post/what-i-read-use-and-follow2014-03-24T13:55:15-07:002014-03-24T13:55:15-07:00What I read, use, and follow<p>Almost every day I open new web sites, test fresh <a href="http://www.quibb.com">platforms</a>, and try to cruise this constantly growing media world. But on a constant basis, I keep an eye on a few web sources. Some of them are popular and don’t need to be introduced, but some deserve closer attention. As always, here is my list of various pages, projects and web sites dedicated to the media, news, IT, TV, finance and governmental industries. </p>
<p><a href="http://www.wsj.com">The Wall Street Journal</a> sends me around 20 emails every working day (on weekends this number drops to 8-10). But this is because I subscribe to all stock news, The 10 Point, European updates, and closing stock reports, not to mention media newsletters. One web site can satisfy one’s needs for any kind of political, financial, or general interest information. Be aware that everything will have a conservative flavor.</p>
<p>We turn now to emails, don’t forget to subscribe to the awesome newsletter from <a href="http://www.qz.com">Quartz.com</a>. A startup backed up by <a href="http://www.atlanticmedia.com">Atlantic Media</a> and launched in September 2012, it is a digital-only outlet <a href="http://www.atlanticmedia.com/brands/quartz">“designed to serve business professionals who travel around the world, are focused on international markets, and value critical thinking”</a>. In other words, qz.com wants a piece of the WSJ and FT pie. The editorial team (professionals who worked for decades at “The Economist, and "Forbes” among others) distills and gathers the most relevant news and packs it into a beautiful, functional and clear email. No paywalls, no restrictions, a minimum of banners (in their place – advertorials) and a mobile-native platform (the web site looks the same on any screen). The site is growing and has a potential to create a number of B2B projects. But right now it is the most effective and efficient way to get your dose of world news. </p>
<p><a href="http://www.cir.ca">Cir.ca</a> also provides a convenient mobile user experience. One can register in a minute and start getting news from a crystal-clear application. It is one of the most convenient applications for consuming information on-the-go. Ironically, this thesis is inserted by the company into its <a href="https://twitter.com/Circa">credo</a>. Even the content on the screen is divided into a few parts (text doesn’t take up the whole screen), which makes it easier to read on a treadmill or bike. </p>
<p><a href="http://www.economist.com">The Economist</a> is famous for its mission of finding a proper theme of the week, as well as conveying an immutable hate of Eastern Europe, the Middle East and emerging economies in general. But it still provides an example of quality journalism covering a huge variety of topics and geographies, using probably the best written English publicly available. It is arguably the last magazine in the world that can publish a 3-page article about the history of salt (!) without the author’s name on the byline, while still selling the following two-page spread to Chanel or Rolex. For me, reading the Economist is like going to the opera – you probably don’t want to do it initially, but once you get in, it becomes a real pleasure. </p>
<p><a href="http://www.newyorker.com">The New Yorker</a> invented a “long read” years before this format appeared for Kindle on Amazon’s web site. Because average New Yorker articles are longer than those in any other magazine (think “Atlantic”), they read more like a case study or an investigative essay full of details and colorful allusions. The New Yorker is one of few periodicals still publishing poetry in every issue, and reading poetry is, as Joseph Brodsky said, <a href="http://www.brainpickings.org/index.php/2014/02/17/joseph-brodsky-how-to-read-a-book">“The way to develop good taste in literature.”</a> </p>
<p>Wiki Answers <a href="http://wiki.answers.com/Q/What_is_the_most_influential_newspaper_in_the_world?#slide=2">proclaimed</a> <a href="http://www.nyt.com">the New York Times</a> the most influential newspaper in the world, while its <a href="http://en.wikipedia.org/wiki/List_of_newspapers_in_the_world_by_circulation">circulation is far from the world’s largest.</a> The reason, probably, is its elitist left-wing position with a strong emphasis on New York events. Its “Arts” section and the Book review on Sundays are concise and intelligent, whereas the editors manage to sustain the balance between the regular news and story-telling content. Having both NYT and WSJ on your table, you might get two polar points of view on a business enterprise or the latest political crisis. You will still need to mix and shake up information in your head, but at least you are likely to get stories of favorable quality. Again, as I said, the NYT’s weekend issues are unparalleled and getting at least a Sunday paper will definitely enrich your weekends. </p>
<p><a href="http://dealbook.nytimes.com">Dealbook</a> is a stand-alone sprout of the NYT devoted to M&A, IB, PE, VC, and IPO news and rumors. All these subjects are covered with religious scrutiny, while the site’s founder, <a href="http://en.wikipedia.org/wiki/Andrew_Ross_Sorkin">Andrew Ross Sorkin</a>, is still engaged in its day-to-day operations. The Dealbook’s newsletter is a free and convenient method to keep up with the latest news in the industry, and provides a good starting point for further research. </p>
<p>I have written about <a href="http://www.npr.org">NPR.org</a> numerous times, but still am sure that it offers an example of how a radio conglomerate should position itself and function in the 21st century. It actively engages with tech companies (from Ford to Google) in order to deliver its message through the all-pervading Internet of things. The next most logical step to me is to partner with public transportation and mass transit companies to distribute radio shows to commuters for free. In terms of the content, NPR holds a reasoned and well-grounded position.</p>
<p><a href="http://www.quora.com">Quora.com</a> in the last couple of months has completely replaced Wiki, in what I consider to be the ultimate victory of Web 2.0 over Web 1.0. One might argue that Wiki is also from the ‘consumer-creates-content’ era, but that is not a topic of this article. Quora answers majority of my questions, and the quality of its responses is really high – they are detailed and succinct. However, not every industry or field of expertise is covered, the content is media and tech-centered, and this is something the company should work on, if it wants to attract advertisers. </p>
<p><a href="http://www.brainpickings.org">Brain Pickings</a> is run by Maria Popova, a Bulgarian writer and blogger, who created something close to another “New Yorker” in a just couple of years. Literature, poetry, fashion, travel – themes are sporadic, and weekly newsletters might be intermittent, but the web site builds up tolerance, and surfing it, you might lose track of time. </p>
<p><a href="http://www.niemanlab.org/">Nieman Journalism Lab</a> is a Harvard institution that should promote journalism but became one of the most prominent resources of knowledge about big data, new media and media trends, newsonomics and mobile applications. As I am extremely passionate about abovementioned fields, for me Nieman lab is the reliable source of opinions and forward looking statements. I don’t read it every day, but follow on the weekly basis.</p>
<p><a href="http://www.mashable.com">Mashable</a> has grown up from a blog about social media to the most recognizable portal about mobile, entertainment and gadgets. Currently Mashable is Buzzfeed.com of the tech-oriented Internet. Nowadays, Pete Cashmore’s kid can leverage its influence and obtain insights from companies as big as Twitter and Facebook, and host annual conferences. </p>
<p>These are the web sites worth your attention and time. For years, they proved to be reliable sources of information, no matter how biased it might become months before the new election cycle. </p>
tag:ulm.svbtle.com,2014:Post/media-you-will-be-using-in-2014-and-probably-20152014-02-19T19:14:16-08:002014-02-19T19:14:16-08:00Media you will be using in 2014 (and probably 2015)<p>No matter whether you are just an “average” user checking your Facebook news feed two times per day, or a disillusioned communications manager, these platforms will attract your attention during 2014. Using the term “platform,” I assume that communication channels and web site that aggregate and/or deliver information also fall under this category. </p>
<p><strong>Facebook</strong>, a few weeks after the New Year, launched <a href="https://www.facebook.com/paper">“Paper,”</a> an application that could replace Dashboard in mobile devices of those willing to consume information in a traditional “article-like” format. On Paper’s side, algorithms that are presumingly better aggregate topics that are important for a user. Currently they are not active, and the selection is done by anonymous editors, but the social graph will definitely show what it is worthwhile.</p>
<p>What to expect: new optimistic earnings in light of the growing mobile advertising (looks like FB figured out how to seamlessly place ads into your mobile device) and new accusations about safeguards for personal data (<a href="http://qz.com/173093/why-im-finally-joining-facebook-on-facebooks-tenth-anniversary">by the way, some longstanding opponents have given up</a>). I don’t think that the <a href="http://mashable.com/2014/01/16/teens-leaving-facebook">teen exodus</a> will have any influence on the way Mark Zuckerberg and Co. manages the company. </p>
<p><strong>LinkedIn</strong> is probably one of the most overlooked popular platforms in the world. Because of its business model (users have to pay to get access to most of the features), a lot of members abandon LinkedIn after creating a profile. Actually it is a powerful tool to reach out to people you won’t otherwise connect with. It is one of a few applications that is worth every penny spent on it. The company isn’t afraid to experiment and <a href="http://vator.tv/news/2014-02-08-linkedin-shuts-down-intro-six-months-after-launch">shut down features that do not work</a>. Currently LinkedIn focuses on small and mid-sized businesses, which helps to differentiate from other social networks. </p>
<p>What to expect: the company will continue strengthening its presence moving even further away from all the potential competitors and <a href="http://mashable.com/2014/02/06/linkedin-to-acquire-bright">squashing</a> new promising startups. </p>
<p><strong>Instagram</strong> is probably close to its prime, but not to earnings. For <a href="http://www.forbes.com/sites/clareoconnor/2014/02/13/starbucks-and-nike-are-winning-instagram-and-your-photos-are-helping">some companies</a> it is a sort of a magic wand: Nike integrated this app into its marketing toolbox so smoothly that can boast of having the largest community there. Starbucks and its cups with Grand Latte became a symbol of a new photo era (remember: snowflakes and cups of grand macchiato?) that foresaw a “selfie generation.” </p>
<p>What to expect: more sponsored posts in your news feeds: Instagram, after it was acquired by Facebook, became much more revenue-conscious. In the past couple of years Instagram is the main harbor for teens annoyed by parents’ attention on Facebook. Seems that Instagram can go offline and start making campaigns with brands outside of the Internet. But will Facebook allow it to grow in this unexpected direction?</p>
<p><strong>NPR</strong> will become an integral part of the “Internet of Things” sooner than you might expect. Sound needs a much thinner bandwidth, and even a 4G network can transmit the required amount of content. The company, which is still considered a non-profit organization, secured contracts with <a href="http://www.npr.org/services/mobile/fordsync.php">Ford</a>, Google, partnered with Quora <a href="http://www.mediabistro.com/10000words/npr-partners-with-quora-to-cover-sochi-2014_b25953">to cover the Olympic games in Sochi</a>, while its former employees <a href="http://www.current.org/2013/10/former-npr-head-vivian-schiller-joining-twitter-as-head-of-news-partnerships">occupy executive posts</a> in Twitter. Penetration of mobile devices made radio sexy again, because this channel is widely available, free and convenient. </p>
<p>What to expect: I won’t be surprised if NPR will be able to repeat the success of Netflix with creating its own “big thing.” Decades ago, in the Soviet Union, radio theatricals were extremely popular. Probably, NPR will cook its own radio show that is doomed to become a new “House of Cards?”</p>
<p><strong>Medium.com</strong>, a blogging web site that returned interest to reading without interruptions and switches between various open tabs in the browser. And it is no coincidence that the only metric Medium shows to users is how many minutes is needed to read a post. It is possible that Medium will become a good repository of information, as for now the majority of posts are written in good English and very articulated. <br>
When I think about such platforms that accentuate only one type of activity, 90s and early 2000 come to my mind when AOL and other “multi-everything” portals ruled the party. Ironically, years after that the paradigm turned 180 degrees, and specialized web sites are running the show.</p>
<p>What to wait next: Medium <a href="http://techcrunch.com/2014/01/28/blogging-platform-medium-reportedly-closes-25m-round-led-by-greylock">raised</a> $25M from Greylock and Google Ventures, and the next logical step would be to create some revenue streams. Except obvious advertising, Medium has a lot to offer to thoughtful brands aiming at an intellectual audience. <br>
Also, the competition in this field is intensifying, and <a href="http://svbtle.com">Svbtle.com</a> probably the main competitor, just <a href="http://techcrunch.com/2014/01/28/low-overhead-blogging-platform-svbtle-opens-up-to-all/">concluded its “invite-only” period</a> and became available to everybody.</p>
<p><strong>Quora</strong> has potential to become a more credible source of information than Wikipedia (because answers come from industry professionals, and <a href="http://thenextweb.com/insider/2014/02/07/quora-reveals-secret-organizes-content-popular-topics-qa-service/#!v3IRy">the special algorithm</a> pushes such topics up), but is stuck in the middle without a clear growth strategy. I see some growth potential in a close collaboration with corporations allowing them to use Quora’s assets and provide <a href="http://qz.com/174076/quora-replacing-press-release">a platform</a> to cooperate with employees. </p>
<p>What to expect: However, advertising looks <a href="http://memeburn.com/2014/02/quora-ready-to-monetise-will-likely-to-start-pushing-ads-by-2015">more appealing</a> to Quora’s executives. As one of the project’s advantages, they mention a “long tail”: “Eighty percent of our views happen a month after an answer is written,” - states Adam D'Angelo, a co-founder of the project. No doubt, it is a strong competitive advantage as only few web sites experience users’ recurrence to old web pages. </p>
<p><strong>Netflix</strong> will conclude this list as the most powerful and influential media channels of 2014. Not only it <a href="http://qz.com/177549/netflix-is-outdoing-hbo-and-showtime-with-its-buzzy-original-shows">surpassed</a> HBO and Showtime and became a topic of president Obama’s <a href="https://twitter.com/BarackObama/status/434108103789793281">tweet</a>, but is also planning to spend as much as $3B on content acquisition in the next years. Such hefty expenses prepared the ground for numerous case studies: MBA students currently learn about Netflix’s financials in accounting classes. “House of Cards” is already extended for the third season, and the company became the major reason why providers <a href="http://www.washingtonpost.com/blogs/the-switch/wp/2014/02/12/netflix-speeds-are-down-but-dont-blame-verizon">were allowed</a> to prioritize network traffic. Who knows, probably in a few months we will see new internet tariffs where we will pay not only for the amount of content consumed but also according to what we spend the megabytes on. </p>
<p>What to expect: new franchises, entry into new markets (especially China, India and Russia) and possibly increase in price (investors expect to see returns, finally). The major competitors, Hulu and Amazon Instant Video, have their advantages, but Netflix was fortunate to become standard ‘de-facto’ in the industry.</p>
tag:ulm.svbtle.com,2014:Post/my-own-sort-of-procrastination2014-01-21T16:11:09-08:002014-01-21T16:11:09-08:00My own sort of procrastination<p>I was going to write this article over the winter break, but I’m typing these words on January 19th, and am still happy with this result. Why? Because a year ago, I wouldn’t have finished it at all. But, thanks to New Year resolutions, I finally categorized the best methods to get the job done and started to use them in a real life. </p>
<p>As a disclaimer, I believe that 9 times out of 10 procrastination is a bad thing that swallows your resources, emotions and leave a bitter feeling of worthlessness. However, <a href="https://medium.com/creative-business/8b51018ef20d">somebody</a> suggests calling it “investigation,” “exploration” or “inspiration.” In my life I never gave birth to a new idea surfing buzzfeed.com. But I came up with something new late at night, and luckily jotted ideas into a notebook behind the headboard.</p>
<p>It seems that this problem became much more common with the diffusion of the broadband Internet. Never before has procrastination been so comfortable, fast, and close to your finger tips. Because the information flow in the Internet never ends (unlike that in a newspaper, magazine or even a TV show), you can effortlessly waste hours of your life in a moment. A decade ago you had to get up, go to a different room, grab a book, come back and redo this consequence of actions once again later. Nowadays, the Netflix app sits next to iTunes.</p>
<p>First, I decided to disconnect from my major distracters. I usually have 2 browsers open, Chrome with different pages, including Facebook, and Firefox for my studying matters with the school email account. Luckily, I logged into all social networks only in Chrome, and I don’t remember passwords. I just close Chrome – for some reason I can handle the pressure of opening an application, but cannot handle that of just pushing Command-Tab. Ultimately, I should close Firefox as well, but I am in love with thesaurus.com. </p>
<p>Second, I turn “Airport mode” on on my phone. Because of the well-established culture of leaving voice messages, I am not afraid of missing an important call. Voila, no more Instagram and Pinterest! Recently, the switch button on the iPhone stopped working: to turn it on I have to find a charger and plug the phone in. “What a headache,” – you might exclaim. “What an additional challenge to my distracters,” – I confess. </p>
<p>Third, I am strongly convinced that morning persons are better people. If you are not an early-riser, please switch your biological clocks ASAP. It might be harmful for a couple of weeks, but later you will return thanks to me. Also, almost every professional athlete did it at some point of time, so it is definitely possible. Once you are ready to make things happen, do the most terrible, hard and unpleasant assignment of the day. Not only will it free your day, leaving with snazzy itsy-bitsy things, but will give a delightful feeling that you have accomplished something noticeable. It is some sort of rewarding yourself. An additional bonus is that you will either be surrounded with people sharing the same attitude or will be working on your own in an empty office or gym. The whole office and athletic environment in the US allows for that. Weight rooms are open at 5am, most companies allow flexible schedules, and you can work 7am-3pm, for example.</p>
<p>Fourth, I have encountered a lot of people that get distracted by… food. Yes, every 30 minutes they run to the kitchen to check what they have in the fridge or to grab a snack. It creates problems not only for their job, but also for a waistline. The easiest thing is not do stuff at home. In my first year at business school, I lived in an apartment without Internet (I just saved money) and survived. I spent a lot of time in the school’s library far away from nuts, strawberry jam and cranberry juice. I took only apples, Gatorade or protein bars with me knowing exactly how much I was going to eat and that it would take only few minutes. As an additional perk, my electricity bills in November and December of 2013 (and I live in Michigan; it means rain, cold and snow) were about $11-14 per month. Nobody believes it is true, but it is. <br>
The whole method that works for me is not trying to fight procrastination, but leaving no opportunities for it to bite off your time. It is like being drug-addicted but not buying drugs instead of curing yourself. At the first sight, it might sound stupid. But here a HABIT comes in. <a href="http://www.brainpickings.org/index.php/2014/01/02/how-long-it-takes-to-form-a-new-habit">There is a lot of controversy out there</a> how much time exactly it takes to create a habit, but all researchers conclude that it can be created. And the most important thing here is that once you start doing something automatically, it becomes a part of you, and it feels natural to focus on the text you write, to do all the reps you planned in a gym or not to update Twitter every 15 minutes.</p>
<p>P.S. I typed this article in iA Writer, and the only thing I distracted on was googling “iA Writer and competitors.”<br>
P.P.S. I want this article to become the last one you ever read about procrastination, as it can become a part of nature as well. </p>