Monday’s Musings . . .

SITE TRIMMING TO BECOME A TREND?:  As a follow up to the story I first reported on Friday, check out the industry’s reaction to Chase’s disclosure about trimming their advertising footprint from 400,000 to 5,000 websites.  The real benefit to trimming is that it gives brands the ability to handcraft a “Run On” list of websites and apps, which will effectively black list any site which doesn’t make the list.  While the point about no increase in cost for the Chase experiment is very attractive, this disclosure could unintentionally create a price spike.  Because if many clients rush to the top quality sites at once demand will skyrocket on a fixed inventory supply . . . and you know what happens to pricing in that situation.  I’m sure the premium publishers would enjoy testing the laws of supply and demand if site trimming becomes a real movement.  🙂

TARGET TO GET IT’S EDLP ON:  In what’s setting up to be a Retail clash of the titans, Target is considering challenging Walmart’s low price leader position.  This is in reaction to Target’s lackluster Q4 earnings, and subsequent 15% decline in its stock price.  Here’s the back story . . . Walmart, which has always run its business on the principle of Every Day Low Price (EDLP), is starting to see its eCommerce investments in Jet and Modcloth start to pay off, because they now have a robust omnichannel footprint in mass merch and grocery.  Walmart has done this to compete toe-to-toe with Amazon, who continues to grow at the expense of traditional B&M retailers.  This has created a two-horse race between Walmart and Amazon, while leaving everyone below them further behind.  As a consequence of this Target is now faced with a really complex set of market dynamics and potential strategies to pursue.  I’ve flipped the commentary article from chainstorage.com into a pdf so that you don’t have to sign up for an account.  And no, I didn’t spend my weekend reading chainstorage’s website.  That honor goes to Pandora’s Dave Soller for digging this one up!  Target-Walmart Price War

IT’S OFFICIAL . . . STREAMING IS KING:  Finally today, streaming’s ascension to the pinnacle of the music world is now official.  On Friday the RIAA released it’s full-year 2016 revenue stats for the US Music Industry.  Streaming revenue now compromises 51% of total label revenue after jumping an astounding 17 points in just the past year.  Streaming’s growth propelled total music industry revenue +11.4% over 2015, which is the largest single year increase since the CD’s heyday in the early 1990s.  Interestingly most of the streaming growth is coming from the on-demand side.  Keep in mind the US’s the lead royalty payer Pandora began diverting some of its payments from Sound Exchange to the labels directly in the Fall, so expect that trend to continue.  The two charts below paint a pretty picture indeed for the streamers and the music industry alike!

Have a great Monday guys!

 

 

78 thoughts on “Monday’s Musings . . .

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