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Showing posts with label TV Tokyo. Show all posts
Showing posts with label TV Tokyo. Show all posts

Monday, September 5, 2011

TV isn't Dead... It Just Smells Bad!

Just returning from a trip to the USA whereby I spent the last week trying to help out a primary caregiver with my very ill father on hospice. 


It was/is a terrible situation and I hope that you don't have to go through this with any of your parents soon. But many will, so before that, won't you take one minute to take a look at this short message concerning that subject?


While there, I made some observations about television. It wasn't hard to do. I was staying at a household with my now 80-year-old father and his 80-year old live-in partner and caregiver where the TV was on from the first thing in the morning to the last thing, besides the kitchen light, to be turned off at night before bed.


Observing these folks watching TV was painful. The primary caregiver was constantly talking to the TV as if the conversation were all hers (seriously) and my dad was constantly complaining about how idiotic the TV was... Yet, on the TV stayed.... 


The situation with the TV on forever drove me crazy!


That house is, in my opinion, the typical TV household of the year 2011 and beyond. It represents the core of who are TV's main viewers today and it also represents why TV, in its current configuration, is dead. I've written about it before in "Part Two: Why the Digital Conversion Will Kill TV Tokyo and TBS":


These are folks who have seen TV all their lives. The Internet is still a new thing to them. My in-laws are the kinds of folks who turn on the TV when they wake up in the morning and leave it on all day whether they are watching it or not. They are terrestrial TV's prime audience.

Why are these people the typical prime target for a station like TV Tokyo or TBS? Think about it.

Who has the time to sit around and really watch TV for 2 or 3 hours a day, everyday (like people did 30 years ago)? Well, the only people who do have the time to do so are either:

1) Inactive
2) Poor
3) Retired or aged
4) Handicapped or ill

Think about that. Now, if you were a sponsor, would you spend money on TV advertising for people who fit any of the descriptions above? No. You wouldn't.


That's one huge problem for these dinosaur TV stations that have thousands of employees and a dropping revenue base.



This problem is universal. Perhaps countries like India or China haven't (nor will they???) face these challenges... (But I know that in India, people still use 45 rpm records and cassette tapes, so maybe they will someday soon!)


Japan and the USA are in the same boat, though, when it comes to TV. Here are some things I noticed while in the USA that just confirmed and consolidated my opinion on that:


TV in the USA is now playing a defensive strategy that I have seen stations play in Japan. It is a strategy doomed to failure. I have seen this with my own eyes and even argued this point against program directors and station managers as far back as 1998.


The strategy that these stations are trying can't possibly work in the long run. It goes like this: The audience of TV viewers is shrinking. So, instead of pursuing an aggressive policy to reach out to younger people and gather new viewers and a new audience, the stations pursue a defensive strategy to prevent erosion of their current audience (old people). The stations will, instead of making efforts to attract new viewers, will make efforts to keep their old veiwers and prevent them from switching channels to the other competing station (who is pursuing the same policies). This might be fine, but when you realize that your core audience is numbers 1 ~ 4 above, this is not an audience that is growing. This is an audience that is dying off and shrinking.


Now, it doesn't take a genius to realize that this sort of strategy is a sure-fire way to fail. Most promising new business plans attack new, growing markets; not old and shrinking ones.


A good piece of evidence for this is the many FM radio stations that are still playing Bob Seeger, Journey, Foreigner and Steve Miller Band; the same music they were playing 30 years ago! The current sad financial state of today's FM stations - in Japan and the USA - is a testament to the failure of this policy.


My conclusions about network TV in the USA pursuing this policy were reinforced by the commercials I saw. They were very heavily geared to an older audience. One particularly memorable commercial was for a boxed set of DVD's of Shirley Temple movies. Now, I like Shirley Temple as much as the next movie fan (OK, maybe not that much) but for lack of a better description, when I saw the commercial, I thought, "This is not 'cool'!" 


Now, who in the world would want to buy a Shirley Temple boxed set of movies? Anyone under 50-years-old? No? How about under 70? How about 75? 


One of the stations that my ill father and his caregiver watched constantly was ABC. I surmise that their favorite TV show is Good Morning America that has been on since before I moved to Japan in 1984. This show has definitely declined in quality and popularity (I could deduce that by watching shots of the audience). The main host Regis Philbin is retiring so he has good timing. These stations are trying to do anything to pump some life into their lifeless format but it fails miserably. 


It used to be only on late night TV like David Letterman that when the station returned from a TV commercial, would the audience scream and yell while clapping. But now, even on the morning TV shows, they do that. It used to be just polite clapping on morning shows. Now, it's a bunch of people yelping and screaming like a high school sports match or American Idol (which is the intelligence level of this nonsense).




It might have been OK to have these people screaming loudly like a bunch of junior high school kids excepting that one time, on Good Morning America, they foolishly showed the audience and there weren't twenty people standing there. Probably most people don't notice that, but I caught it immediately.


Twenty years ago, it would have been a few hundred people trying to gain their 15 seconds of fame. Now? 


In a related note, as I predicted long ago, many Japanese have turned away from TV. I predicted that the digital conversion would see Japanese TV stations voluntarily throw away 20 ~ 30% of their core audeince. Some people scoffed. I had written in Why the Digital Conversion Will Kill TV Tokyo and TBS:

It seems obvious to me that there's no doubt about it...  Basically:

1) People with money do not watch TV
2) The only people who do watch a lot of TV have either no money or too much time on their hands; they are not active
3) Advertising to people with no money and who are not active is a waste of money.
4) When digital goes online fully, then the only people who don't have the digital equipment are poor people
5) Poor people are the only ones who watch TV Tokyo and TBS now (see #2 above)

The countdown has begun. The digital TV conversion will kill TV Tokyo and TBS.



People aren't scoffing about what I predicted anymore. The TV people are panicking. It has happened and is happening right before your very eyes. The end of an era is upon us. TV, as we have know it for decades, is on its last legs and there is no one in that business (that I have met) who understands he problem enough to fix it. It is too late. The audience is gone.

Japan has lost a huge slice of existing viewers by cutting them off from digitial. They will not return. The USA still has the fashionable senior citizen crowd on Medicaid and Medicare....  



Japanese Are Turning Off the TVs.


Tokyo-- The Japanese, once one of the most TV-addicted people on the planet, are drifting away from the tube -- forcing networks to scramble for other sources of revenue, from pic production, satellite services, Internet streaming sites and other new technologies.
Daily TV viewing time, which averaged more than five hours in the 1970s, shrank to 3 hours and 28 minutes by 2010, according to figures compiled by the NHK Broadcasting Culture Research Institute.
Males aged 10 to 20 are watching less than two hours a day.
Meanwhile, program ratings have been trending downward for terrestrial networks, pubcaster NHK and commercial rivals TV Asahi, NTV, TBS, Fuji TV and TV Tokyo, despite spikes for major sport events and other special programming.
In June not one show on commercial TV in the 7 p.m. to 10 p.m. "Golden Time" slot won a rating of 10 or above -- once considered the minimum for survival.
Even long-running shows that once seemed immortal have either been axed or are on the brink. One that recently got the heave-ho after 43 seasons is period drama "Mito komon," which bowed in 1969. At its peak, the show's ratings reached as high as 43.7, but recently it has struggled to achieve double digits. Its last episode will air in December on MBS, an affiliate of TBS.
Various causes have been advanced for the ratings slide. Like other countries, Japanese families no longer sit around the TV watching the same show, as viewers did in the industry's 1960-to-1990s heyday. The Japanese now consume entertainment on a range of platforms, including PCs, smartphones and game consoles.
Also, an estimated 100,000 households, including a lot of elderly "Mito komon" fans, failed to make the switch from analog to digital in July, and have effectively given up TV entirely.
But the biggest cause, says Hiro Otaka, a media analyst for the Bunka Tsushin entertainment news services, is that "the programs have become boring."
Otaka blames network execs who have responded to falling ratings by cutting costs and hedging their bets.
There is no media in the world who can survive when the under 30-year-old crowd do not care about it. Can't be done. And under 30-year-old in Japan definitely do not care about TV... Come to think of it, why should they?


TV isn't dead... Yet. It just smells really bad.

Tuesday, January 4, 2011

TV News Viewership Sinks...

More proof that major station TV - with their 1000's of employees - is heading to the end of the road...

I've written (again!) repeatedly about the demise of TV in Japan. Some people think that I mean that TV is going to disappear off the face of the earth forever. That is not the case. TV will be around for many more decades to come, I'm sure.

What won't be around for many more decades to come are these over-sized bloated TV networks that employ thousands of people.



Think about it: A TV station like TV Tokyo targets a very wide audience of ages from 6 ~ 86. TV Tokyo employs well over 1,000 people.

A station like Fashion TV in Tokyo targets 20 ~ 45 year old women.  Fashion TV employs about 40 people so their overhead is nowhere near as high as TV Tokyo.

Let's say you are a women's shoes manufacturer. Fashion TV targets your main audience. Yet their advertising rates are less than 1/20th the price of TV Tokyo. As a sponsor who wants a prime audience, do you spend hundreds of thousands of dollars on TV Tokyo advertising, or do you specialize and only go for your core audience?

Of course, you go for the core audience.

Today, again, more data has come out on the quick collapse of TV. Specifically TV News.

Mashable reports:

In 2010, 65% of people younger than 30 cited the Internet as their go-to source for news, nearly doubling from 34% in 2007. The number who consider television as their main news source dropped from 68% to 52% during that time.
Of all 1,500 American adults surveyed, 41% say they get their national and international news from the Internet, up 17% from 2007. Sixty-six percent cite television — down from 74% — indicating the trend is spreading among other age groups.
Forty-eight percent of those 30-59 cite the Internet as their main news source, up from 32% in 2007, while television went down from 71% to 63%. Though the number of those in the 51-64 age group who consider television their main news source (71%) is about the same, those who turn to the Internet (34%) is nearly equal to the number who cite newspapers (38%). The amount of people 65 and older who get their news from the Internet has risen from 5% to 14%, but television remains the chief source for 79% of respondents. 

News is the bread and butter of television.  So, to extrapolate on the figures above... If 65% of all people younger than 30 cite the Internet as their main news source - and TV is losing money now - what's going to happen in 10 years?

Like I said, there will always be TV stations... But the day of the hugely staffed stations is soon coming to an end.

Monday, January 3, 2011

Terrestrial TV Stations Getting Cold Feet?

All the major TV stations in Japan were supposed to stop broadcasting in analogue on July 24, 2011. There was one piece of information that wasn't made public until now, and that is that the Japanese government wanted the TV stations to stop broadcasting regular programming on June 30, 2011.

The government plan called for the TV stations to air only a notice that TV sets that cannot pick up Digital would only receive "snow."

As Yomiuri reports:


Commercial TV stations are likely to continue analog TV broadcasts until noon on July 24, deviating from a government plan to phase in terrestrial digital broadcasts and end regular analog service by the end of June, sources said.

This means the TV stations will not participate in a planned June 30 to July 24 transition period during which the government hopes analog broadcasts will be reduced only to a notice saying terrestrial TV broadcasting will go exclusively digital at noon on July 24.

After the changeover is complete, TV sets incapable of digital reception will display only "snow" on their screens. TV stations plan to start broadcasting an image of a snow-filled screen repeatedly in announcements to begin as early as this month to avoid confusion among TV viewers after the full transition.


The government is so unorganized that it is not even funny. Here we are 7 months from D-Day for these foolish TV stations that agreed to go into huge debt to go digital and the government - as is par for the course - hasn't got their ducks in order.

Hell, they stopped giving people so-called eco-point discounts on these digital ready TV sets already! (Now, don't get me wrong, I think these eco-points discounts, are a sham and the government has no business offering people discounts for products on the free market...) But if they are going to do it anyway, you'd think they would continue to allow credits to people to buy a digital set for at least a year after conversion... But no!

The government can't fill in a pothole in the road on time and on budget; who thinks they can control and run an entire country switchover to digital smoothly?

Let me make a prediction right here. When the stations stop broadcasting in analogue, they will lose viewers in huge numbers and they will receive a massive amount of complaints. This will affect their sales. I predict that the government and the broadcasters will start to quarrel and, before April 2012, some of the TV stations will request that they be allowed to broadcast in analogue also.

This will cause even more confusion and complaints amongst the people, manufacturers, broadcasters and the government. And that will, in turn, make TV an ever more undesirable method of advertising. This will also hurt TV viewership ratings.

The Japanese government will realize that they made a mistake by making digital broadcasting mandatory and then they will try all sorts of "fix-it" remedies - all of which will fail.

These sorts of events will help lead to TV Tokyo and TBS's bankruptcy by 2015.

Saturday, January 1, 2011

Major Television Stations in Japan on Death's Doorstep

The major terrestrial TV stations in Japan are in big trouble. On July 24, 2011, they will stop broadcasting analogue and start digital broadcasting. On that day they will lose at least 30% of their viewing audience. If they are losing money now, what will they do when the estimated 30% of the people who do not own a digital tuner drop off?

I have written extensively, during 2010, about the coming collapse of TV Tokyo, TBS TV and TV Asahi in Japan before. Read those articles here, here and here.

Now, after spending five days at my in-laws house this New Year's I can definitely attest to the coming demise with anecdotal evidence.

Booooooooring

My father in-law is 72-years-old. My mother-in-law is 68. These folks are typical prime target audience for a station like TV Tokyo.

These are folks who have seen TV all their lives. The Internet is still a new thing to them. My in-laws are the kinds of folks who turn on the TV when they wake up in the morning and leave it on all day whether they are watching it or not. They are terrestrial TV's prime audience.

Why are these people the typical prime target for a station like TV Tokyo or TBS? Think about it.

Who has the time to sit around and really watch TV for 2 or 3 hours a day, everyday (like people did 30 years ago)? Well, the only people who do have the time to do so are either:

1) Inactive
2) Poor
3) Retired or aged
4) Handicapped or ill

Think about that. Now, if you were a sponsor, would you spend money on TV advertising for people who fit any of the descriptions above? No. You wouldn't.

That's one huge problem for these dinosaur TV stations that have thousands of employees and a dropping revenue base.

In fact, I was told that, in TV Tokyo's case, their sales are dropping by 5% a month and they are losing more than one million dollars a month.

But there's another, more subtle problem that I have discovered during this New Year's visit that makes me want to share it with you; it used to be, that coming to the in-laws house drove me crazy as they, like I mentioned, would watch TV all the time.

At my house, we do not have a TV and I do not want my 7-year-old son watching it. So, it would pain me whenever we visited the in-laws as the TV was on constantly....

Not this year. We have been here for 5 days now and they only turned on the TV 3 times that I saw, and each time was just for 10 or 15 minutes. Then they'd turn it off. After coming here annually for the last 15 years or so, this recent behavior had me curious so I asked my father-in-law what was going on. I asked him why they hadn't been watching TV like they did before. I was wondering if they were being kind to us as they know we don't watch TV and don't approve of our son watching it either...

Well, it wasn't anything like I was expecting. My father-in-law told me that they didn't watch TV like before because he said, "The Internet is more interesting."

I was so surprised. Of course, I'd agree. Yesterday, when my family and in-laws all went outside for a few hours, I grew curious. I mean, they have this expensive new-fangled system, yet they don't watch as much as they used to? Hmm....I sat here doing some work and then I watched TV for 20 minutes or so to see what the new system was like.

My in-laws have a brand new plasma TV and they get all the analogue channels and Chidigi (the analogue stations on digital) and both BS and CS digital. I flipped through the stations for a while and thought (as I usually do with TV) "Who'd watch this crap?"

I think the BS and CS stations have a chance to survive as most of these stations are small and have staffs that number under 100 people. But the Chidigi stations, like TV Tokyo or TBS, that have well over 1,000 employees are dead.

Just because their signal is digital, people are not going to watch the same old crap. Hello TV Tokyo, TBS and TV Asahi! The problem is not your platform, the problem is your content; it sucks and is boring.

On top of that, some of the channels asked for "pay per view" yet they were showing movie like "Kramer vs. Kramer." No joke! No one is going to pay for that! Why not rent it or watch it on Youtube? At with those you can watch it when you want - with no commercials!

I did watch a bit of some other movie about the CIA but gave up after 20 minutes because of commercials.

After flipping through the channels a while and seeing lots of Shopping TV and commercials, I turned the TV off. Not only was the content the same old boring stuff, but, the tuning system is confusing... Instead of one block of channels to pick from, you now have three...

It's not convenient at all.

If older folks like my in-laws have turned away from TV; if 30% of the TV audience is dropping off this July; if the content is going to be the same old thing; and Japan's economy stays in the doldrums - which it will. Then I stick by my predictions:

TV Tokyo, TBS and TV Asahi will not survive 2015 in their current configuration. Expect TV Tokyo and TBS to go bankrupt first.

What happened?

1) No one has time to sit around and watch TV anymore.
2) TV demands that you adjust your schedule to fit theirs. That doesn't work anymore.
3) Minor stations only have to support 40 ~ 80 workers. Big stations need to support thousands. There is no revenue base for that anymore.
4) Other forms of entertainment are much more satisfying and time-flexible.

Considering the above and now, throw in the older folks coming to the conclusions that TV isn't interesting anymore then, there you have it.

Are there any stations that will do well? Yep. I predict that Cartoon Network will always do well.

Friday, November 5, 2010

Cable TV Stations Lose Over 500,000 Subscribers

This article is not about Japan, but I think it points to what is going to happen here very shortly concerning major television stations .

I have written extensively about how the digital conversion in Japan on July 24, 2011 is going to destroy TV Tokyo, TBS, and then TV Asahi. In that order. This is because these stations are last in ratings and losing money now. When the digital conversion happens, they will lose another 30% of their audience.

They aren't making ends meet today. It is inconceivable that they will do better when their audience shrinks by 30% overnight. I wrote about that here and here.

In an article that came across my desk today, I see that Cable TV stations in the USA lost over 500,000 subscribers in the 3rd quarter of 2010. They, too, cannot survive this kind of bleeding of audience.

The Daily Tech reports:


Cable companies have traditionally increased the cost of their TV services each year, often with no improvement in the offerings. As people start looking to save money, many are leaving cable providers. Gigaom reports that it has cobbled together the number of cable subscribers lost for four of the top five cable companies around the country for Q3 2010 and the number of folks leaving cable is growing.

However, Gigaom reports that over the last few quarters the number of subscribers lost from cable and gained at satellite and IPTV firms is not matching up. Many people are just walking away from paying for TV. This is getting easier to do with most major networks offering their programs online free and services like Hulu offering old shows for fans to watch.


What is written here is true but I think the writer is missing out on something else that is going on. There are now services popping up all over the world that offer satellite TV for a one time fee. Here's one called Satellite Direct.

How does that song go? "3,500 channels and nothing on..."

Satellite Direct sells their service for a one-time fee of $49.95 (Ask for a discount and they'll sell it to you for $24).... These sorts of services offer you a download to your computer and give you thousands of channels. Of course, I am not selling this to you. I think TV is brain damage and a complete waste of time, so I don't recommend it. My point here is to illustrate how these pay TV services have a business model that is now broken.

The moral of the story is that this is what is going on now and this also shows why these huge TV stations like TV Tokyo with over 1,000 employees (and the overhead that goes with that) are dead.... How in the world will they compete with a music only - or a fashion channel, sports channel, etc, TV stations that only have 20 ~ 40 employees?

They won't. They are dead.

Read more at Daily Tech.

Thanks to What Really Happened.

Monday, November 1, 2010

Bizarre Japanese Surveys: 72% of 20-some-year-old girls would date men over 40!

In Japan, surveys are very popular. The Japanese love to know just what percentage of the population they fit into. Be it where people like to go or what they like to do or what they think about this or that, the average Japanese, it seems, finds comfort in knowing that they are not alone in their views... No matter how silly the surveys get.

Here's one that was done by the Japan Times that had two things that I thought were interesting. See if you can find the two:


Of course it is the first two. Really? 72% of women in their 20's would consider a relationship with an older man between 44 and 62 years old!?

Maybe I should start going back to the sport gym! Do you think my wife will give me the money so that I can run around with a girl younger than my own daughter?

"Really? You'd date me?.. Ok, well, can you also lend me a dollar?" 
(writer's image girl - left)

And the second one: 71% of those surveyed said that they had already bought digital equipment to view digital TV. Aha! That is another piece of evidence that verifies what I wrote a few months back that the digital conversion is going to bankrupt TV Tokyo, TBS and TV Asahi.

Sunday, October 10, 2010

Japan's Upper-Management Sells Middle-Management - and the Company - Down the River

As Japan's economy has continued to crumble over these past years a trend has become visible amongst many companies in this country; And that is a trend where the older, upper management has sold the companies future and the well being of middle management down the river so that the company can show better performance in the short term to the harm of the companies long-term health.

The catch all phrase that has been passed down from upper management to middle management was that major mass media was to begin targeting the 50 ~ 60-year-old audience. This idea began about three years ago. The rationale was that the 50 ~ 60-year-old people were the ones with the money. Yes. That seems like a good idea on the surface, but a 62-year-old today is 65 in three years and then retired and has no more discretionary income.

This was madness at the beginning. And the drop in ratings and sales proves my point. To take a station that has targeted 20 ~ 40-year-old's for so many years and to then, suddenly one day, switch to people over 50 just didn't make any sense to most of us. (Especially since most of the 50 ~ 60 years old people were not targeted with any sort of campaign alerting them to the station's existence).

Besides that, it is against all common sense and completely against the rules of branding and marketing. Imagine, say, a youth fashion maker like Tommy Hilfiger deciding one day to start selling golfing clothes for the over 6o crowd? Wouldn't that ruin their business really quick?

Like I said, this didn't make sense to a lot of us.

But it does make sense when you consider this situation from the point of view of a 63-year-old president of one of these broadcasting stations. Here's the story: You get a fat cushy retirement pension as long as you can keep the company profitable until you retire. You are no fool; you hear the news about the bad economy and worry like everyone else. With this in mind, do you take the time to correctly brand and marketing a slow growth, long term strategy? Or do you call in all favors from old buddies and do whatever you can to float the ship? Remember, all this time you are hearing on the news about the world-wide financial collapse.

I think most people would look out for themselves first. It's human nature. And that's one big reason Japan is so messed up today.

The fact that the upper management are deliberately selling the future of the company "down the river" so to speak in order to get better short term sales at the expense of long term profitability.

Why would they do this?

Because, if a, say 62-year-old company president can keep his company floating for a few more years until he reaches retirement age, then he will get a full-pension for life.

Think about it. Here's a guy who has worked for 40 years for one of these broadcasting companies. He sees the writing on the wall. He sees the risk to his retirement. Will he sell off the future to make sure he gets "his"? I think he would.

I'd like to say that I would never do such a thing, but I think that 97% of all the people over 55-years-old would do the same. Why? They worked hard and suffered and the company always promised them that they would be taken care of. In fact, this sort of problem is everywhere in Japanese society today; all through the "economic miracle" the companies and the Japanese government promised the people that, if they worked hard, they'd be taken care of... But then the bubble burst and after twenty years of bad government policies the economy is wrecked and so are the savings of so many people.

I wrote on related subject to that here.

The others, in Japan, who might not do this sort of thing of selling out the company, could possibly take another way out. In fact, and this is conjecture on my part, but the 48-year-old president of Warner Music Japan committed suicide last week. You know he didn't do that because things were going well.

Groove Asia Reports:

Takashi Yoshida, the 48-year-old CEO and president of Warner Music Japan, suddenly passed away on the afternoon of October 7. Some sources are reporting that Yoshida hanged himself in his own home, and police are currently treating the incident as a suicide.


This is all part and parcel and symptomatic of Japan's slow decline. Once again, this is conjecture on my part, but if Mr. Yoshida were over 60, he wouldn't have done this.... He would have kicked the can down the road, like all other over-60-years-old Japanese management is doing and leave the problems for their next in line.


Japan is falling down. We are no longer #2 in economy and it looks like Taiwan will surpasses Japan in real GDP this year.... Couple all this with the government continually making the same mistakes with "stimulus" and buying of yen and - the older folks trying their best to hold on to the old way to the detriment of the future - and we are headed down a long slippery slope.


So when you look at the situation involving TBS, TV Tokyo, InterFM and many others keep this in mind.


The other day, one of my good friends who is a program director at TBS told me that several of the middle management producers at TBS told him, "We are really worried. We don't think TBS can last seven more years."


I asked my friend what he thought about that and he replied, "I think they are way too optimistic."


I do too.