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February 20, 2007

Written by Bob Meyer, Editor of BarterNews

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From the desk of Bob Meyer...02/20/07

Global Financial Assets Hit New High

A new study by McKinsey & Co. has been released which showed the value of the world?s assets, through 2005, reached a new peak at $140 trillion. The figure was more than three times as large as the total output of goods and services produced globally that year.

Flows of assets across borders hit $6 trillion that year. The report also indicated that of the savings which citizens are willing to put outside their countries, the U.S. gets 85%.

IBM?s Worldwide Contest To Fund New Innovations

IBM will be investing $100 million over the next two years to fund business ideas generated by a worldwide innovation contest, named InnovationJam.

Contributions, some 46,000, have come in from 150,000 people from 104 countries, including employees of IBM and 67 of its client companies. Submitted ideas are being placed into ten application areas including real-time translation services, three-dimensional internet-based technology, and electronic health-record systems.

Barter Plays Role In High-Fashion Modeling Industry

The international economy is transforming the modeling world as a glut of high-fashion models has changed the economics of the industry.

With an influx of Brazilians, Russians and Eastern-Europeans, pay has plummeted at the highest echelon of fashion?the runway shows that feature top designers in Paris, Milan and New York.

Today it?s a client?s market with models accepting low salaries for the exposure, hoping it will lead to better paying jobs in the future.

At New York?s fashion week (in early February), most models will make zero to $1,000 to walk down the runway. In lieu of cash, many designers use in-kind trade...the models get to keep their outfits.

All back issues of "From the Desk...? can be accessed by clicking here.

(Please feel free to forward our newsletter to your friends and colleagues. We have a ?box? at the end of the newsletter for your convenience. See you next week. . .)

ESPN Strikes Barter Deal With AFL

Always on the lookout for additional sports programming, ESPN, owned by Walt Disney Co., has structured an unusual five-year agreement with the Arena Football League (AFL).

In what  could be an equity model for the future, the transaction not only gives the cable network national TV rights to AFL games, but also a 10% ownership of the league. (In essence, ESPN is now an AFL owner.)

In addition to the ownership position, ESPN gets football programming without paying a multi-million-dollar rights fee. The AFL will pick up production costs, estimated at about $3.5 million, and split advertising revenue with ESPN after various costs are absorbed.

Last season more than 65 million viewers tuned in to watch AFL games on NBC, which has televised AFL for the last four years. This year some 26 games, nine post-season, will be televised by ESPN/ABC.

Google's Competitors

In last week's article titled ?Google's First Year With DMarc Educational,? we did not include information on competition they face from other automated radio sales firms.

One such company is SoftWave Media Exchange which allows marketers to choose stations and schedule their campaigns well ahead of time. Likewise, station managers can set prices and review campaigns before they run.

These capabilities have helped SoftWave build a network of stations in the top 50 markets that reach about 11 million listeners on an average quarter-hour basis, compared with dMarc?s 947,000. Most importantly though, station managers are comfortable selling premium inventory through SoftWave, since about 70% of its traffic falls in this category.

Additionally, Bid4Spots, a Los Angeles-based digital clearinghouse, employs a reverse-auction model in which multiple stations compete to sell their remnant inventory to a single buyer during weekly online auctions.

Because stations have nothing to lose when unloading unwanted inventory, they drive prices down during the auctions...benefiting the buyers. There are more than 2,300 stations participating nationwide in the Bid4Spots system.

Barter Driven TV Network Scores With No Interruption Movies

White Springs TV is a television network that broadcasts via satellite directly to viewers? homes, to independent and cable TV stations across America, and video streamed worldwide on the Internet. The format is an eclectic mix of movies presented without commercial interruption.

White Springs does run commercials, but they air between movies and are clustered among cartoons, short subjects, two-reel comedies and vintage TV clips. The station?s satellite signal covers all of Canada, USA, Mexico and part of Central America.

Almost anyone in those countries can get the signal with a small dish and KU Band digital receiver. The dish and receivers cost about $150 to buy outright. Unlike Dish Network or Direct TV, there is no monthly fee charge for programming.

?About one out of five films we run is a Made-For-TV Movie, mostly from the 1970s, ?80s and early ?90s,? related Victor Ives, veteran broadcaster and founder of ITEX media in the ?90s, who started the network. ?An ABC Movie of the Week is a lot more enjoyable when it isn?t interrupted every ten minutes by commercials for abdominal machines, psychic readers or patent medicines,? Ives said.

?So far, the biggest viewer response is from classic and not so classic movies from the early days of Hollywood, including B-pictures from the so called Poverty Row studios,? he added. ?Another big hit is theatrical release cartoons and musical shorts called ?Soundies,? filmed in the ?40s with such music greats as Stan Kenton, Fats Waller, Cab Calloway, the Mills Brothers, Spike Jones, and Dorothy Dandridge.?

FTA (free to air) viewers have over 80 space channels to watch free. There are a number of ethnic and religious stations, also PBS (Public Broadcasting), some sports franchises, and a couple of the alphabet networks have become FTA providers. It is anticipated that as viewing options expand a rapid growth of people will switch to the free channels, rather than pay monthly fees.

In 2006 White Springs began contracting with TV stations and cable systems, becoming the first over-the-air television network to offer feature length movies without commercial interruption as a regular format.

White Springs now has outlets in areas of California, Connecticut, Maine, Virginia, Florida, Kansas, Michigan, Alabama, Washington, South Carolina, Oregon, and Nevada. There is a cable system as far away as Guatemala, and negotiations are underway for the network to expand to Canada.

Besides the usual direct and cable systems, thousands of viewers are watching the channel via internet-video streaming...with viewer reports coming in from England, Scotland, Australia and Dubai.

?In a few years,? Ives remarked, ?we can't see why our network ought not be on the air in every market in America. The construction (of Congress-mandated upgrading to digital channels) is going to cost stations plenty, so why wouldn't our no-cash barter option be a popular way to fill one of these channels??

The name White Springs TV comes from the name of a small town on the Suawanee River in Florida. That's where Ives and his partners purchased a satellite uplink facility that beams the programming 22,500 miles into space...then back to earth.

For television information see, and for the radio network, or contact info@whitesprings.TV.

 ?What we have here is a failure to communicate!?

Years ago, one of the most visible people in the barter industry said the #1 reason why the industry wasn?t farther along in its development was due to a ?failure to communicate? by those in the business.

This realization was the genesis of The Competitive Edge newsletter, now into its 18th year of publication. Trade exchange owners who use this powerful marketing and promotional tool are never guilty of ?failing to communicate.?

As the owner of a trade exchange you must stay in front of your clients. Informing, educating, and inspiring them, because your clients? bartering is a relatively small percentage of their overall business. So if you don?t keep their interest and enthusiasm for trade at a high level, you lose.

Your primary aim, like all other businesses, is to get your clients coming back for more. Every extraordinary business (and every trade exchange owner who wants to be extraordinary) knows that the customer you have, is a lot less expensive to sell than the customer you don?t yet have!

Want to take your exchange to a higher level? Use The Competitive Edge newsletter in your operation?it ?sells? the many benefits of working through your trade exchange like nothing else!

To learn more about The Competitive Edge newsletter and how it can help build your trade exchange, click here.

Hotel General Managers

Here?s The Easiest $100,000 You?ll Ever
Bring To The Bottomline!

Collect cash, as usual, from the guest accounts staying at your facility that require the use of professional AV services. And rather than shouldering your ongoing employee costs, or your current vendor?s cash agreement for AV services, here?s a much better alternative:

Work with a proven national vendor (a sterling 25-year track record) who will provide all of the AV services for your hotel on a 100% TRADE BASIS! (Payment to be in the form of hotel rooms and/or trade dollars.)

Your hotel?s annual AV billings must be a minimum of $200,000, and this offer is available only in the continental United States.

For a confidential introduction contact Bob Meyer via e-mail: (Please type in AV Services On Trade in the subject line of your e-mail.)

Attention Trade Exchange Owners:

If your member hotel(s) have a minimum of 10,000 sq. feet of meeting space and annual billings of at least $200,000 for AV services this is a great opportunity to earn substantial cash service fees on the hundreds of thousands of trade dollars your hotel member will be paying the vendor. Contact Bob Meyer at the above e-mail.


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The Growth and Use of Secondary Capital (New Money) Creates Unprecedented Wealth In Today?s New Age Of Possibility

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 We have 70 free, informative and inspiring, articles for you in our ?Secondary Capital Section.? Check it out...

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