Hulu Prepares Public Option

August 19th, 2010

Hulu plans to introduce an initial public offering as early as this fall.

  • Although Hulu gets a lot of traffic, it has had difficulty turning its popularity into profit. It hopes to change things by making an initial public offering.
  • An IPO could have the additional benefits of increasing confidence in the company, possibly luring back content producers like Viacom, which recently removed popular shows like The Daily Show and The Colbert Report from Hulu.
  • However, with many other companies poised to go public and a lack of confidence in IPOs in general, going public may not solve Hulu’s problems.

Facts & Figures

  • The planned IPO could value the company at more than $2 billion.
  • Hulu reported that it made $100 million last year, but it is also on track to make that amount again in the first half of this year.
  • Hulu produced more than $566 million ads this past June – more than double YouTube’s amount.

Things Are Looking Up For Greece

August 19th, 2010

Greece, after plummeting into an economic black hole a few months ago, is slowly crawling back to more stable territory.

  • Greece is in the process of implementing their austerity program, which includes civil service pay, reduced pensions and increased taxes.
  • The initial success of this program allows Greece to receive the next installment of its bailout package – a $9 billion boost.
  • Though the progress of Greece’s economy is overwhelmingly positive, there are still large economic glitches to overcome.
  • In the first half of the year, tax collection was below target and local government spending was over budget.

Facts & Figures

  • The Euro, which dropped to $1.19 in June has rebounded to $1.32.
  • Greece is trying to dig itself out of a $400 billion budget deficit.

Best Quote

“You have a government here that is clearly determined to move ahead. This program is off to a very good start. I would say a very impressive start.” – Paul Thomsen, Head, I.M.F. Delegation.

TILE Announcement: Bloomberg Article on SpendGrowGive

August 18th, 2010

Word about TILE is spreading! Check out a recent bloomberg.com article about us here: http://bit.ly/9XFgjZ

Indian Billionaires Reluctant To Give

August 18th, 2010

In a country wrought with poverty, giving to the poor becomes a challenge in its own right.

  • Bill Gates and Warren buffet, two of the wealthiest individuals in the world, recently pledged to give half of their net worth to charity.
  • The pledge has been replicated by 38 other American billionaires, but in India – home to two of the richest people in the world – wealthy individuals have not made the same commitment.
  • Those billionaires contacted regarding the challenge evaded commenting on the subject.
  • Experts say that Indian billionaires donate less because the opportunities for giving are fewer and often tainted by corruption.

Facts & Figures

  • Indians collectively donate 0.6% of their country’s GDP to charity. While Canada donates 1.3% and the U.S. 2.2%.
  • Just 10% of charitable giving in India comes from individuals or companies, compared to 75% in the United States.

Best Quote

“Indians just don’t trust the organizations that want money or that they could give to. Often they find themselves in the position that even if they want to give, there is no mechanism available to them by which they could give.” – Emily Harrison, Founder, Innovaid

Improving The Quality Of Internet Service

August 18th, 2010

Satellite companies attempt to improve their technology in order to provide better internet service to consumers, especially those  for whom satellite connection is the only option.

  • Two satellite companies, WildBlue and HughesNet, have big plans for the future of satellite and internet service.
  • These companies claim that their new satellites will allow them to provide consumers with internet service that rivals the speed of their broadband competitors’ but costs far less.
  • Terrestrial internet providers argue that fiber-optics are expensive to install but much easier to update as technology improves, an advantage satellites lack.

Facts & Figures

  • An estimated 14-24 million Americans currently live without broadband internet service.
  • WildBlue argues that a $28 million grant aimed at extending fiber optics to 420 schools in North Carolina could instead have supplied 70,000 residents in that area with satellite service.
  • The average lifespan of a satellite is 15 years–a statistic that helps explain why the industry has advanced so slowly to date.

Best Quote

“One advantage satellite has is ubiquity. The cost of reaching you with a satellite dish is independent of where you are. Fiber or cable is labor-intensive and dependent on distance.” –Arunas G. Slekys, Vice President, Hughes Network Systems

Financial Regulation Shifts The Focus Of Wall Street’s Leaders

August 18th, 2010

It’s a new world on Wall Street and banks are looking for leaders who can handle the unfamiliar territory.

  • The new financial regulation measures deter banks from trading simply for their own benefit and push them to focus on riskier investments that directly serve customers.
  • As a result, choosing the head of an investment bank can no longer be based solely upon a person’s level of financial success and leadership skills.
  • Chief executives of banks must also be astute risk managers who can handle varying business lines.

Facts & Figures

  • Citi is scaling back trading and expanding advisory business.

Tony Blair Turns Profit Into Charity

August 17th, 2010

The former British Prime Minister cleans up his image by donating millions to injured soldiers.

  • Tony Blair plans to donate millions in earning from his forthcoming memoir to charity for injured troops.
  • The proceeds will go to the “Battle Back Challenge Center”, a facility that will provide sports and rehabilitation services for wounded personnel.
  • Despite Blair’s donation, he is still under scrutiny. Families of some of the hundreds of British troops killed in Iraq and Afghanistan have criticized him for earning millions from the sale of his book and public speaking since leaving office.

Facts & Figures

  • Random House paid and estimated $7.5 million for his book, “A Journey”.

Best Quote

“I am delighted to accept this very generous donation.” – Chris Simpkins, General, Royal British Legion

Recession Benefits The Employed?

August 17th, 2010

Although the recession has produced a large number of the long-term unemployed, there are, ironically, some benefits for those who have been able to keep their jobs.

  • Though wages usually fall during economic downturns, this recession has seen a growth in salaries.
  • Some regions have been hit harder than others but areas in the central US are relatively unscathed.
  • Although blue collar jobs suffered most at the beginning of the recession, we’re currently seeing a downturn in white collar jobs instead.

Facts & Figures

  • Nearly 45% of unemployed workers today have been unemployed for 27 weeks or more.
  • Since the recession began, real average hourly wages have risen almost 5%.
  • The unemployment rate for college graduates is still only 4.5%, and the disparity between their pay and that of non-graduates has never been greater.

The Growing Market For Online Shows

August 17th, 2010

Although the market for internet shows declined during the recession, it is now attracting increasing amounts of sponsorship and advertising.

  • Interest in Web-based shows has waxed and waned in recent years, but it’s now on the rise again. As people continue to spend more time online, traffic for these types of shows is expected to increase.
  • The new faith in these programs comes from the realization that online shows won’t replace TV shows anytime in the near future, but they can provide an alternative viewing experience with different standards.
  • Many funding deals for these shows come from increasingly popular branded entertainment deals, where a company sponsors a show in return for having its brand somehow incorporated into the show itself.

Facts & Figures

  • An estimated 86% of users in the United States watch at least one online video per month.
  • Last month, YouTube put up $5 million in grants for online producers.
  • Commercials for professionally-produced internet shows cost $15-$35 per thousand views; banner ads cost $5-$15 per thousand views.

Best Quote

“I often think of my daily business life as a guy running a cable network in the early 1980s. There is, no matter how you slice it, a timeline for any new industry to grow.” –Rob Barnett, Chief Executive, My Damn Channel

Philanthropy As A Badge Of Wealth

August 16th, 2010

Philanthropy becomes a symbol of wealth as more billionaires pledge their fortunes to charity.

  • Warren Buffet and Bill Gate’s philanthropic challenge to the wealthy encourages more wealthy families to give.
  • As a result, philanthropy is rapidly becoming a status symbol.
  • Not only is there a growing expectation for wealthy families to give their money away, they are expected to be actively involved in philanthropy.
  • Some are worried that if philanthropy is seen as a privilege of the wealthy, it will devalue the charity endeavors of regular Americans.

Facts & Figures

  • Individual Americans gave more than $227 billion in 2009.

Best Quote

“Clearly pressure on the elite is high right now to say that they are giving money away and that will make it trendy. People who have enough money to give away but maybe haven’t thought about that… those folks will want to do what Warren Buffett and Bill Gates are doing.” – Stacy Palmer, Editor, The Chronicle of Philanthropy

« Older Entries
Newer Entries »