Goizueta in the News: April 22, 2011

Notable comments from Goizueta staff, faculty and students will be shared each week along with news on alumni, programs and rankings. Click here to review previous media updates. You can also inform Goizueta Newsroom of media postings (email).

The Street: Citigroup’s Reverse Split Is Bad for Investors
“Aside from appearing to be a move made out of desperation, stocks typically fail to perform well after a reverse split is enacted. According to a 2006 joint study conducted by students at NYU’s Stern Business School and Emory’s Goizueta Business School, more than 1,600 companies that conducted reverse splits underperformed the broader market by about 50%, on average, in the three years after the split.”

Atlanta Journal-Constitution: Should raising taxes be part of the strategy for reducing the federal deficit?
“Jeff Rosensweig, associate professor, Emory University, wrote the “yes” position on this question.” [link unavailable 4/17/2011]

The Emory Wheel: Goizueta B-School Student Launches Website to Find a Date for an Upcoming Fraternity Formal
“As a marketing major and a strong believer in the power of social media, [Kirby] Liu decided to utilize his skills, acquired over his past two years at the B-School, to market himself as a brand. His website, www.findkirbyadate.info, allows interested parties to apply to be his formal date.”

The Emory Wheel: Students Create App For Digital Punch Card
“Four Emory students and a professor are collaborating to create PunchBunch, a free iPhone application that acts as a digital loyalty card, which will allow Emory students to record their purchases and redeem free products by scanning the barcode provided by participating vendors.”

FINS Sales & Marketing: ABC News Appoints Digital Head
“ABC News has appointed AOL’s Joe Ruffolo to head up digital at the company. Ruffolo was most recently vice president of AOL.com, where he ran both operations and editorial for the company’s homepage. He replaces Paul Slavin, a lauded former reporter, who left ABC News last week after 33 years.”

PR-GB.com: Brett Chepenik- An Active Member Of Donna Hicken Foundation
“Brett Chepenik, a fitness personality for the local Fox Action News Morning Show, is the president and creator of Timed Exercise, a revolutionary exercise program designed to improve the fitness of any committed individual in less than 30 minutes a day.”

Deccan Herald: Feeling at home at Emory University
“Her stint at Emory University in the United States, with its academic choices and professional order, has been an experience worth savouring for Swargajyoti Gohain”

The Emory Wheel: Mayor, Emory Launch State Case Competition
“Atlanta Mayor Kasim Reed and the Social Enterprise Program at Emory’s Goizueta Business School announced last week their decision to spearhead a statewide case competition at Emory to encourage the use of electric vehicles in the Metro Atlanta region, according to an April 4 press release from the Mayor’s Office of Sustainability.”

Goizueta Newsroom: Tests Remain for Music on “The Cloud”
“Amazon announced “Cloud Drive” recently, adding fuel to an always hot debate about licensing of digital music. According to Reuters, the service lets users “store about 1,000 songs on the [Amazon site] for free instead of their own hard drives…”

Goizueta Newsroom: Goizueta Third at Venture Capital Competition
“Nine regional champions competed recently at the 14th annual international finals of the Venture Capital Investment Competition at UNC Chapel Hill.”

Goizueta Newsroom: Student Carries Wine Project Forward
“Natalie Reese wanted her business education to be unique. She feared being seen as an MBA from a ‘cookie cutter’ program with a resume lacking passion. Now, less than a month from graduation, she can look back at an experience that included world travel and — perhaps — front line input on a poverty-fighting wine industry in Ethiopia.”

Tests Remain for Music on “The Cloud”

Users can now access their music from Amazon's cloud, listening to tunes without taking up space on hard drives. PHOTO: Combined Media/Flickr.com

Amazon announced “Cloud Drive” recently, adding fuel to an always hot debate about licensing of digital music.

According to Reuters, the service lets users “store about 1,000 songs on the [Amazon site] for free instead of their own hard drives and play them over an Internet connection directly from Web browsers and on phones running Google Inc’s Android software.”

Legal challenges and strategy questions loom heavy over the service says Ramnath K. Chellappa, associate professor of information systems and operations management at Goizueta Business School. His work as a PhD student in 1997 led to the scholarly definition of “cloud computing.”

“There are many dimensions to this,” Chellappa said. “In this case, the data happens to be music. We have the ability to pull stuff from the cloud… You have iPads and all these devices that are working so easily with 3G and WiFi available in a number of places. The cloud concept of having things reside somewhere else and bring it down on demand is very much a possibility.”

Chellappa, who consults on digital media in the entertainment industry, said some current liscensing agreements don’t explicitly cover this type of use but it’s a natural progression considering how the industry evolved with the explosion of iPods, iTunes and digital music retailers.

He said most music purchased can be copied by the user except if it’s a determent to the industry (creating mix tapes, burning CDs, etc.).  The professor said music subscription services like Rhapsody had little to limited impact on music consumption, but Amazon works in the song-purchase model.

“The question of where this is going is that if you put things on the cloud and people can get these things on demand…” Chellappa said. “What does it mean to actual purchase of music?”

Licence to stream the music itself raises more questions as, according to Chellappa, multi-channel consumption isn’t fully realized.

“At some level the labels will say we don’t license streaming of music… Amazon is saying it’s all the same thing, they don’t need a separate agreement,” the professor said.  ”This has been playing out in the television industry already [with Internet viewing].”

Even if legal matters resolve, it’s unclear how consumers will respond. According to the Reuters report, there will be no iPhone app to stream music from Amazon’s cloud. There will be functionality on Apple’s rival Android (Google) operating system.

Chellappa didn’t rule out a similar platform rolling out on iTunes. He also said Google may look at music consumption on the cloud. But, regardless, strategy seems to lag behind technological advances.

“I’d wait to see what players it gets picked up on,” he said. “If it’s just going to be a web-based mechanism I don’t think it will be a big success.”

Finding What’s On… Online

Searching for television shows online can be a chore but a Goizueta alum hopes his company can help users clean up their viewing experience as the Internet becomes a more viable option for everyday television.

Former Ask.com CEO Jim Lanzone (JD/MBA98) told USA Today a soon-to-be 1-year old venture, Clicker, was built to address needs for the future of television. 

“We were looking at the next 50 years of television, and how it was merging with the Internet,” Lanzone, Clicker’s CEO and co-founder told the paper. “How would you navigate all of that? A daily calendar wouldn’t cut it anymore, which is what programming guides were in the previous 50 years. … It would need to be a lot more like a search engine.”

Clicker goes beyond regular search engines, which do a good enough job finding listings of programs available on the web. Take the hit show, Glee… The service, according to USA Today, lists “prime-time showing, plus the five most recent episodes in rotation on the Hulu website, as well as which Glee episodes are available for viewing via iTunes and Amazon.”

For more on Lanzone and Clicker, click here.

Will eReader Moves Pay Off?

Barnes & NobleEDITOR’S NOTE: This piece, formed by the Knowledge@Emory Staff, originally appeared here. For more on business news and faculty research, be sure to check out the Knowledge@Emory homepage.

Since 1971, when a young New York University dropout and textbook dealer named Leonard Riggio bought a venerable but sleepy college textbook store named Barnes & Noble, the company has often been at the cutting edge of bookselling: The first to offer discounts on best sellers in the US. The first to build a national brand out of what had been a local business. The first to sell books in a big box venue that offered more selection and lower prices than the competition. And the first bookstore chain in the US to think not only about price but also about ambiance, recognizing the advantages of promoting book-browsing as a leisure activity.

But after decades of remarkable growth, during which its 720 green-fronted superstores and 637 college bookstores have become a familiar part of the American landscape, Barnes & Noble faces two formidable challenges. First, more and more people are buying their books online, more often from Amazon than Barnes & Noble, and second, e-book reading devices such as Amazon’s Kindle and Apple’s iPad are taking millions of customers out of the market for physical books altogether.

“The store model is under pressure, whichever way you look at it,” the 69-year-old chairman of the New York company told reporters recently.

The most immediate danger is Amazon. The Internet giant claims to be “Earth’s biggest bookstore,” and not just in terms of volumes for sale but volumes sold. According to book sales statistics collected by Foner Books, more books are sold now on Amazon both in the US and abroad than by any other single outlet anywhere.

Foner Books’ statistics on the North American book market note that in 2009, Amazon’s media sales (including books, music, and DVDs) totaled $5.96 billion. By comparison, the big green machine sold $4.3 billion, plus $573 million online through BN.com. Nor does the balance seem to be stabilizing. In media sales alone, Amazon’s North American sales have risen by an average of nearly 15 percent per year over the last 9 years, compared to about 3.12 percent for Barnes & Noble and 4.75 percent for BN.com (at least as of 2008). Internationally too, where Barnes & Noble is not active—and in fact doesn’t even sell e-books—Amazon media sales are growing even faster. In 2009 Amazon’s international media sales reached $6.81 billion.

Click here for the rest of the story.