In an event which for the video game industry is akin to the launch of a major television network or consumer magazine, one of the Big 3 console manufacturers, Sony Computer Entertainment, Thursday unveiled plans for a major ad campaign breaking next week to launch its next generation portable game system. That system, PlayStation Portable, or PSP, is the first in a series of new video game devices and consoloes that are expected to give new impetus to the burgeoning medium at a time when its growth had been starting to flatten out. The PSP will come to market on March 24, entering the fray against Nintendo's DS portable console, which launched last November in the United States and March 11 in the United Kingdom. Nintendo's DS has already sold over 3 million units in the United States and Japan, and sold 87,000 units in the first two days in Britain. The other major producer of video game consoles, Microsoft, has not yet released a portable console. The ad campaign--which will include television, print, radio, and online components--focuses on the PSP's multimedia capabilities. Unlike the DS, which doesn't play movies or music out of the box, Japanese users can buy a peripheral that allows them to download functions to play MPEG4 movie files and MP3 music files--the PSP offers a video player, which can play movies on a newly developed Universal Media Disc format, and can store and play music files as well. It also includes a Wi-Fi wireless LAN hookup for Internet connectivity and a USB 2.0 cable port. The online component of the ad campaign is focused on the PSP launch title lineup, which includes "Twisted Metal: Head On," a combat driving game; several sports titles; "WipEout Pure," and "Ape Escape: On the Loose." The ads will go live just prior to the product's launch, and will run through early May. They will be placed on a number of entertainment and technology sites, such as IGN.com, GameSpot.com, Gizmodo.com, ComedyCentral.com, and MTV2.com. The ads will feature interactive and streaming video capabilities, demonstrating the PSP's graphics and interface. Another centerpiece of the online ads will be the PSP's XrossMediaBar, the user interface on the PSP that allows players to navigate the media they have saved on their PSPs. The print ads purchased by Sony will run in major gaming publications in April and May, and the two television spots both feature "Take Me Out" by Sony BMG Music artist Franz Ferdinand. One of the spots was directed by Dave Meyers, who has directed music videos for artists like Britney Spears, No Doubt, and Jay-Z. They will run on prime time, late night, syndication, and cable from March 21 through April 17.
Weeks after reaffirming its commitment to the Media Rating Council, and during a speech in which its CEO unequivocally reiterated that support, Nielsen Media Research indicated that it may once again have moved forward with an important new measurement method without first completing an MRC audit. "I am pleased to inform you that on Thursday, March 3, the A/P Meter system was installed in our first sample home - in the Ft. Myers, Florida, Metered Market," Susan Whiting, president-CEO of Nielsen Media Research told attendees gathered at its national client meetings in Miami this week. "This household," she continued, "will begin contributing to the local sample on April 7." Whiting said the installation was a relatively easy process and that it represented "an exciting technological milestone for Nielsen." While few would argue with that point - the A/P meters are designed to measure TV viewing taking place via digital platforms such as digital set-tops and digital video recorders - Nielsen has yet to complete a "technical audit" the MRC is currently conducting on the A/P metering system, say sources familiar with that process. Unless the MRC has quietly granted Nielsen accreditation for that system, it would be the second time it introduced a major new measurement technology without first getting the MRC's approval. The other, of course, was the series of local people meter roll outs Nielsen has been conducting, which created its original rift with the MRC and forced lawmakers to begin looking into the relationship between the MRC and Nielsen. In the past several weeks, a number of lawmakers have sent letters to the Federal Trade Commission asking the commission to determine whether it has regulatory oversight of Nielsen, and implying that if it does not, they might draft legislation giving the FTC that authority. On Thursday, Nielsen distributed a letter sent jointly by Representatives Dan Burton (R, IN) and Jesse Jackson, Jr. (D, IL) to members of Congress warning that federal regulation of the television ratings industry is an unwarranted government intrusion that could possibly damage the accuracy of the ratings system. "Should it be the Federal Government's responsibility to inform Americans that 'American Idol' was last week's number-one show in its timeslot?," the letter stated. "Would it truly be a wise use of taxpayer dollars to create a Federal Department of Television Advertising just to set the price for Super Bowl advertising? We think not." The letter also recognized the effectiveness of the MRC to monitor the quality of research conducted by Nielsen and others. The letter also criticized the pressure coming from News Corp.-backed advocacy group Don't Count Us Out. In response, DCUO issued a statement saying it was not calling for creation of a "Department of Television Advertising," but that TV ratings nonetheless should be overseen by the federal government. "Nielsen is a completely unregulated monopoly. It is not subject to free-market competitive pressure, nor to any independent oversight. That is an inherently dangerous situation in any industry. It is all the more troublesome when the industry in question has such a profound impact on our culture and economy," said the DCUO statement.
It's becoming apparent that digital video recorders (DVR) such as TiVo lead to watching more TV overall, but new research indicates DVR users watch more of some kind of television than others: cable TV. According to the study of 400 consumers conducted by Horowitz Assocaites between November and December 2004, about one-third (29 percent) of consumers with a DVR or TiVo in their home say they watch more TV in general, while more than three out of ten (35 percent) say they watch more programs on cable now than before they had the device. "It's clear that networks will need to adjust their business models to take into account the potential impact of these services, say, on advertising," said Howard Horowitz, president of Horowitz Associates. "But the bottom line is that advanced digital technologies like DVRs are starting to make a real, positive difference for consumers when it comes to the perceived value and quality of TV programming and services." The study also shows that among all "multichannel consumers," three out of ten (27 percent) are digital cable subscribers and 22 percent are satellite subscribers. Overall digital penetration has reached 41 percent, with cable claiming a 56 percent market share and satellite a 45 percent share of digital homes.