Tag: Business/Finance

A Put Up/Shut Up Moment For McDonalds

The competition’s tough. Baby, that’s a pity.

Plain-McDonalds-LogoMickey D’s just announced a horrible quarter. Profits are down 30%. According to Reuters it’s because of “a food scandal in China and tough competition in the United States.”

The competition’s tough. Baby, that’s a pity.

Where were we?

How will McDonalds go about building its profit? Will it raise its prices? This is what the fast food industry has screamed any time the subject of raising wages comes up.

My guess is price raising is the last thing they’ll do. And, in spite of their kvetching, it would also be among the last things they’d do if forced to pay a more reasonable wage to the McDonalds crew.

I get it. Underpaying employees is fabulously profitable. It’s also reprehensible.

Let’s see how McDonalds goes about dealing with this crisis. It will tell us a lot about their honesty on the wage front.

McDonalds made over a billion dollars in this past quarter on revenue of seven billion.

Why Must I Wait For The Daily Show You’ve Seen?

Out here on the west coast we get mostly leftovers. If there’s voting in a show, usually we can’t. If the font screams LIVE, probably not for us.

Stewart Mocks Obama Can’t He Condemn Russia Just a Little Faster Mediaite

Like clockwork, every night asap Mediaite.com posts most/all of Jon Stewart’s first block. It’s 8:53 PM PDT as I type and what you see above is now online.

The Daily Show doesn’t air here for another two hours!

I’ll admit it, this is a first world, 21st Century problem. But it gnaws at me.

Out here on the west coast we get mostly leftovers. If there’s voting in a show, we can’t. If the font screams LIVE, probably not for us. Facebook and Twitter conspire nightly to spoil all the tube’s surprises.

This kind of TV worked 20 or 30 years ago. There’s no good reason to hold back now, except to protect someone’s outdated business model.

I’m waiting for the show. Stewart is best watched in context. He’d better be funny.

I’m Not Mark Cuban… But

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Mark Cuban, outspoken owner of the Dallas Mavericks, TV shark and luckiest Internet bubble buyout recipient ever made news with a tweet early this morning.

Cuban is talking about corporate inversions. That’s where a large company buys a smaller company then adopts its favorable headquarters location for tax purposes.

It doesn’t move. It just declares this new place its HQ. By virtue of this paper shuffling they stop paying most federal taxes!

Cuban will sell their stock.

I can’t do that. I own no common stock. However, I pledge to stop supporting businesses that do this.

I’m talking to you Walgreens!

From the Wall Street Journal:

Walgreen is currently thinking about leaving American shores, as part a plan to buy the rest of Alliance Boots GmbH, which operates a U.K. drugstore chain and is based in Switzerland. The move could help Walgreen lower its U.S. tax bill saving the company hundreds of millions of dollars a year—money that wouldn’t flow into the U.S. Treasury.

That’s my prescription bottle at the top of this entry. Walgreens–it will be my last and I’ll absolutely join the boycott of your stores which will surely follow.

I’m not concerned whether your move is legal. I just know it’s wrong.

Comcast And AT&T: Gobble, Gobble, Gobble

Comcast wishes to become a vertically integrated behemoth. They will dictate programming and technology because their fingers are in every pie.

Even today they double dip, charging Netflix for services I’m already paying for. That’s what monopolies do! How can you say no to the company that stands between you and your customers?

New Haven Comcast officeComcast is in the process of swallowing Time-Warner. AT&T has just announced they’re purchasing DirecTV. Maybe I just haven’t looked closely enough, but where is the benefit to citizens?

The biggest trend in American business over the past few decades has been consolidation. Much of it is subject to regulatory approval. It should be subject to regulatory scrutiny. That part seems sorely lacking.

Comcast wishes to become a vertically integrated behemoth. They will dictate programming and technology because their fingers are in every pie.

Even today they double dip, charging Netflix for services I’m already paying for. That’s what monopolies do! How can you say no to the company that stands between you and your customers?

Comcast as every incentive to do more of the same, protecting their legacy businesses through the terms they offer consumers.

Will programming and distribution deals be structured, as many are now, to protect Comcast’s cable TV business? Why do I even ask?

There was a time in America when bigger was better. Charles Erwin Wilson, nominee for Secretary of Defense in the early 1950’s famously tried to hold onto his GM stock while in office&#185.

Because for years I thought what was good for our country was good for General Motors, and vice versa.

att_logoAnd maybe, sixty years ago, it was. Employment scaled up as company’s did.

Is there anyone who actually believes the Comcast or AT&T acquisitions will have a positive outcome for America? More choice? More employment? More investment? Better technology?

“This compelling and complementary combination will bring significant benefits to all consumers, shareholders and DIRECTV employees,” said Mike White, president and CEO of DIRECTV. “U.S. consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace.” – AT&T press release

The important part is there in the last sentence:

a stronger, more competitive company, well positioned

We’re already dealing with companies treading very close to the anti-trust line. Take the bundling of cable TV services, where I have to buy loads of channels I don’t want to get the ones I do.

Typically, the “tied” product may be a less desirable one that the buyer might not purchase unless required to do so, or may prefer to get from a different seller. If the seller offering the tied products has sufficient market power in the “tying” product, these arrangements can violate the antitrust laws. – Federal Trade Commission

The system is being gamed and these mergers and acquisitions will only make things worse. It’s time to put a stop to it.

&#185 – He sold his stock before his appointment, but after his confirmation hearing.

Seinfeld And The TV Model

Louis C.K. Comedy Sex and The Blue Numbers Comedians In Cars Getting Coffee by Jerry Seinfeld

Jerry Seinfeld has an Internet show, “Comedians in Cars Getting Coffee.” Season three began today.

It’s a very funny show and very formulaic.

Start with Seinfeld. Add a quirky car. Fetch another comedian. Get coffee. Return.

This show is a radical assault on the conventional model for program production.

No network. No TV station. No cable company. They’ve all been eliminated from the food chain.

All Seinfeld’s show has is a website (and great word-of-mouth). Over time, as the net becomes our primary means of consuming media, will stations/networks/cable be needed at all?

CiCGC is sponsored programming. Acura wraps a commercial on either side of this 20’ish minute production.

The cost of production (not the quality) is well below network levels, but so are expectations.

I want to see more of this boutique programming. Media driven by creatives is good.

The TV Model Is Broken

I love television. I’m a student of the media. It was incredibly important in shaping who I’ve become.

TV’s model is broken.

There were seven channels in NYC when I grew up. Most cities had less.

No remote control. No DVR or VCR. You watched it when it aired. If two shows you wanted to see aired simultaneously–tough.

In 1960, Gunsmoke finished the season in first place:

1 Gunsmoke CBS 40.3 rating 65 share

That’s 40% of all homes and 65% of those homes where the TV was turned on!

Last week’s number one entertainment show was “Big Bang Theory.” It had a 5.1 rating.

In those more innocent days you had to be careful not to get hit by the falling bags of money! Not today.

Before WTNH was sold in 1985, Geraldine Fabrikant wrote this in the New York Times:

The jewel in the ABC-Capital Cities package is WTNH-TV, the Capital Cities station affiliated with ABC, that covers the New Haven and Hartford markets. Its 1984 net revenue was $24.9 million, and operating income was $14.6 million. That meant operating profit margins of 58 percent. During the past five years, the margin has never been lower than 58 percent, and it has been as high as 62 percent.

They took in $25 million at 8 Elm Street for an operation that cost $10 million to run!

Those days are long gone. Though the broadcast networks and their affiliates are still the dominant force, their audience is a fraction of what it was.

Technology has been the difference. The pie has been sliced into many more smaller pieces.

Whether they take advantage or not, most people are currently equipped to see shows without benefit of television. We’ve got computers and tablets and smartphones and they’re all very capable of video playback.

I knew Saturday Night Live was going to be good last night because I read tweets from the East Coast. Why did I have to wait to see the show? Only because it breaks television’s business model!

The same with this afternoon’s Cowboys/Redskins game. It wasn’t on in SoCal. I wanted to see it and did… don’t ask. Free and easy access to all the games breaks television’s business model.

We need local TV. We need local news and other local programming (scant as it is), but won’t have it for long unless TV stations find a new business model.

I can see a future where shows will stand on their own without a station or network. Netflix productions are a step in that direction, but why do you even need Netflix?

TV’s current model is broken. The more viewers realize it, the harder it will be to hold back the tide.

I Bought A Car

I bought a new car this afternoon. My fifteen year old ride will be retired.

What I bought is inconsequential, though I will admit it isn’t the sweet Tesla I drove a few weeks ago. I’m in SoCal. This seemed the wrong time to stop driving a convertible.

I attempted to buy the car the way I buy most everything: online research. I’d rather buy brick-and-mortar than online, but if two places have the same item, I buy on price.

I knew the model and options I wanted. That made it easier. The more done online the better.

Car shopping has given me the creeps. It’s impossible to know when you’re being taken advantage of. I always assume that’s the salesman’s goal.

I went to Edmunds.com and got a few quotes from dealers. Some weren’t anxious to deal online. They wanted me in-person to strike a deal. It’s 2013. I’m not giving up that leverage anymore.

Is it just me or is ‘competitive’ now a euphemism for, “You’ll find the best price elsewhere?”

Based on everything I can see, we got a good deal. In fact we paid less than expected. And, I eliminated the hassles.

We should pick the car up in a few days. I’m excited.

The Mysterious ITunes One Percent Tax

The funny thing is I wouldn’t have bothered looking had the tax not been as small as it is! What tax is 1%?

A few days ago I bought two games for my iPhone. EA had a 99&#162 sale. I couldn’t resist.

Today the receipt came via email (which Gmail thought was spam and not really from Apple). Added to my $1.98 purchase was 2&#162 for tax.

The tax rate works out to 1%. Connecticut’s sales tax is 6%.

Apple has a physical presence in-state. There are a few Apple Stores. That normally means they must charge state sales tax.

There’s no explanation on the receipt beyond “tax.” Something is weird.

I entered “iTunes tax” into Google. A few other people have asked the same question I’m asking, but with no good answer. Some were in states with no sales tax!

From the search results it’s also obvious lots of states would like to tax iTunes purchases, but as far as I see don’t.

A search on the iTunes support page also produced no info.

The funny thing is I wouldn’t have bothered looking had the tax not been as small as it is! What tax is 1%?

Now this 2&#162 charge will drive me crazy!