Where Have all the Newspapers Gone?

Just an amazing article in this weekends WSJ that highlights the rise and fall of newspapers. Success came to those that saw diversification and change and recognized new opportunities. Those that held on to old beliefs couldn't adapt. An interesting perspective on the change in reading habits from the evening paper to the morning news, the Walter Cronkite effect and the new readership in the morning with the addition of more female users. Ultimately, expense accounts get slashed as owners seek to improve the bottom line, no longer is first class travel acceptable, and soon the leak becomes a downpour as revenues drop as well. Reading habits continually change and the successful entrepreneurs look ahead to the new paths. Read Paul Steiger's entire article. Well written and eye opening.

The cable industry should pay heed to this industrial change. It too must adapt to technological change as video streaming changes how users receive their content. The cable line-up may simply fade away as the user ultimately decides how, where and when to receive its content. The cable pipeline may become measured in usage as customers stop buying separate cable packaging to make their pc their TV screen.

Video Aggregators - Does You Tube Survive?

When Google realized it couldn't beat You Tube, it felt it had to buy them out. The You Tube phenomenon has become so big, that this year NBC chose to remove its content and bring it in house. NBC and Fox created HULU to showcase their content, while Time Warner and CBS have partnered with VEOH and Viacom with JOOST. Each content provider wants to retain their control and while I see the ad revenue opportunity of long form programming, the short clips seem more valuable as a promotional tool. Wouldn't it be in the content owners best interest to allow You Tube to show clips provided that the clips were from the source and not user generated and were tagged in a way to communicate the linear show and the long form availability on their own platforms. Can't You Tube become more a platform to expand the value of HULU, JOOST, VEOH and others.

It doesn't seem that You Tube will lose its luster. In fact it can become the search engine to support the business. Of final note, these same content owners are not helping these new businesses to grow when the writers strike has stopped more original content from launching on TV and the web. The strike needs to be settled for these sites to grow. For now, no more new Office clips or SNL digital shorts. If the content isn't there, the user will go elsewhere. And while HULU offering Alfred Hitchcock Presents is nice; if viewers weren't watching when it was on TV Land, why should they watch on HULU.

Report Puts Another Digit On TV Writers Strike, But Main Issue Is Digital

Bear Stearns reports that the writers ask is negligible but that the producers are more concerned by the impact on future negotiations with the other parties - SAG, DGA, etc. "The potentially small financial impact suggests that studios (Alliance of Motion Pictures and Television Producers) are more concerned about setting a precedent in new-media revenue sharing." And while there has been no movement for the two sides to get together again and restart negotiations, the viewer is left to watch leftovers. Obviously this programming has lower costs attached, but it most likely comes with less viewers also. And this programming may be a short term bandaid but will hurt more when the program pipeline is empty in the Fall.

There are two main issues: "Even with residuals from online streaming and paid downloads at the top of the writers' agenda, there's another issue. Bear Stearns notes that the studios (AMPTP) fiercely oppose. The WGA wants to expand its membership to include writers for reality series, hoping to gain bargaining power."

This strike is approaching its 8th week. I am fascinated to see what the late night talk shows will look like without writers. Jon Stewart and Stephen Colbert especially will be most interesting to watch; that they are required to come back but rely on their writers for provocative content - what they do the first night will demonstrate which side of the fence they stand. I'm hoping for a frank expression of the facts followed by boring interviews to fill the time and contractual obligation.

At the end of the day there are no winners, only losers.

Facebook is like Hotel California, but you might want to leave

My conversation with a friend over the holiday was whether we were over the hump with Facebook and no longer enjoyed sharing ourselves online to the same extent. I have previously wondered whether Facebook knows what to do with an account when you die and per this writer, you are always listed, long after you decide to check out, figuratively or spiritually.

Have I grown tired of Facebook; not sure yet. It reminds me of friends birthdays so I know to send a note, but so does Plaxo and others. It lets me share meaningless tidbits of my activities or thoughts, like twitter,and it lets me be a voyeur to what others are doing, especially when they don't recall who has access to their info and who doesn't. And while it still remains a point for social interaction, it has lost for me a bit of its thunder. Share info with my friends, fine; share with the world, less fine. Use the info against me, absolutely not.

So my activity on Facebook becomes more a time waster than purposeful. The sharing of my info can be done just as easily with my email address; writing on my wall, simply graffiti with no legitimate point.

Is Facebook losing its luster, will it be surplanted by something more interesting. Or am I simply the wrong demographic, less naive to the openness of all the interconnections. And when I decide to leave for good, can I really check out.

StumbleUpon + Wii = Killer App for New TV?

Wait...interactivity, TV, gaming, Wii. Having just bought a Wii for the kids, but not yet at the point of letting it do more than it was initially created to do, I have to say the Wii is great. Exercise for the whole body, not just the thumb or forefinger. My daughter is copying dance moves from Hannah Montana, my son, olympic sports with Mario. And while it is too cold to go outside and run around, the Wii lets couch potatoes become more fit.

Combine the game playing on a big screen TV with interactivity and social networking. Sprinkle in silly extra from You tube, an app I don' care as much about, and the Wii has the potential of being the giant killer. I'm wondering if Steve Jobs sees this opportunity and works his Apple magic into the plan. Macworld is less than a month away.

NBC 'Wrestling' to Fill Strike Schedule

Has the changing entertainment landscape sunk this low...wresting. Are we back to the 1960s and Gorgeous George wrestling? I hope not! The new digital landscape is meant to enhance more creativity, not less. And the old adage of what is old is new again simply means that if you don't learn from history you are bound to repeat it. Hence the writers strike in the late 80's and the lessons that were supposed to be learned, weren't. And here we go again. Are viewers flocking to the web, of course. Cause nothing good is on TV anymore and the old classics can be found on hulu and funny clips on you tube. Get us more creativity on TV again and the viewer will return! I for one am not watching wrestling.

Writers making Deals with the Web

Worldwide Biggies, a start up internet site devoted to online video, and started by a former MTV/Viacom exec Albie Hecht, smells opportunity from this writers strike. His company has just announced that they have signed three writers to produce a new web series titled "The Void", and obviously has offered them revenue sharing from this new media venture. "Observers have speculated that the striking talent could move to the Web in the case of a prolonged strike. This week, former News Corp. executive Ross Levinsohn expressed interest in funding the writers through Velocity Interactive Group, a new-media funding company he founded along with former AOL CEO Jonathan Miller and partners from the now-defunct venture capital group ComVentures."

NBC, with nothing to offer their viewers but reruns, reality, and news, has signed a deal to bring a series, Quarterlife, to the network. FYI, this was a show originally rejected by the networks. When you are scrambling for content, I imagine anything will do.

Jack Myers recently wrote that the advertiser community should consider getting involved in settling this strike by offering a tax to support the writers share. The issue remains how much will it take and how many groups will want a piece of that share - WGA, SAG, DGA, etc. Still an interesting idea. The advertising community are also feeling the heat of this strike, especially when NBC and the CW are returning ad dollars instead of make goods. They are involved and should be pushing both parties to re-enter negotiations and find a settlement.

Top Hulu Videos

Valleywag has just shared the top viewed clips on HULU and not surprisingly sexy type content leads the list. Top two include Wear A Bra from 30 Rock and Keeping Up With the Kardashians. Even more interesting, Saturday Night Live clips also lead the list, with 7 of the following 8 clips listed. SNL is one of the best examples of TV content that can be repurposed and utilized across the other screens - mobile and broadband. For a show 30 years old, it is most forward in its potential.

The web augments the value of the TV product; it encourages viewers to tie back to the full shows they love. And while Hulu also shows full length videos, when given the choice, consumners would opt to watch these shows and clips on the big screen. broadband allows for mobility; TV allows for a sit back experience. My advice, duplicate Hulu as VOD!

From Jib Jab, the year in Review

Saw this on Jib Jab, the year in review...Funny Pictures at JibJab

FCC Adopts 30% Cable Ownership Cap

The FCC is certainly baring its teeth against the cable industry. It sees no problem with allowing a media company to own multiple newspapers, TV and radio stations in the same market, but cap cable company ownership to no more than 30% of the market. Whether this is intended against all cable or primarily against Comcast, who currently reaches 27% of the market, is anyone's guess. Still it makes one wonder the intentions behind these decisions. You can own the bias of the news in the market but not how it is distributed.

Comcast is certainly a powerhouse at 27% so while they may not be to hurt in the short term, competing effectively with telcos and satellite, which have a more national footprint, may be problematic. At the end of the day, let free market rule or turn cable into a utility. Competition has never been more active in the market, among cable, telco and satellite. All have occurred without the FCC imposing their weight in the market. Why a cap now is unclear, other than to make a point, a spiteful one at that. Not talked about is whether the idea of Direct TV and Echostar merging would be allowed. While those discussions are no longer active, this decision by the FCC would seem to indicate that it would not be possible.

Could a denial to merge for Sirius and XM Satellite be far behind?

Tivo, Wii, PS3, XBox - Should we bring back the console

Just a few thoughts. Does anyone remember the stereo console. We didn't buy components like a receiver, cassette player, tuner, etc; rather, we bought the all-in-one player that could do anything in one box.

So I am wondering, is it time for some of the above devices to combine and morph into something bigger. How many plugs can you put into the back of your tv set before you have to manually keep switching from pulling out the DVD plugs to insert the Wii. Should Tivo incorporate a Wii into its device and offer video and game downloads? Should the device also be your cable box, too capable of getting all your digital channels and VOD? Would you rather have one real expensive box or multiple less expensive ones? It seems that some combination of the right boxes might make for a very marketable next generation box. As each of these boxes individually become more interactive, they become duplicative. And those tangle of cords in the back of the set will get problematic. The combination of technologies may lead to an even better consumer experience.

Striking writers in talks to launch Web start-ups

The writers strike is destined to forever change the broadcast model. The death of the upfronts, TCA, season premieres in the Fall, will all go away. And once they end, it is unlikely to see them return.

What the writers may have learned is that the new medium of digital downloads and streaming may have lowered the barriers to entry. Combine their creativity with the financial support of venture capitalists, and mix in a consumer's insatiable desire for well produced, original content, and finally share the pot amongst the players, and the writers may find that the strike has created more potential opportunities. And if the broadcaster wants to play, they will have to change their way of thinking.

Notice how the network schedules are dominated by game shows, reality series, and news. Movie hours will become more the norm in broadcast again; do you remember the Tuesday and Wednesday Movies of the Week. With so many different needs, it is unlikely that all the unique companies that make up AMPTP can ever agree. Writers will create independent production companies, like Letterman learned to do with Worldwide Pants, and negotiate more carefully the kind of rights they allow. By being independent, they will retain control.

So this writers strike will change the business and if venture capitalists are smart, they will embrace the chance to own content and perhaps prove that you can bypass networks and sell to independent cable companies and directly to the web. And then watch the ad dollars follow!

Letterman Seeks Deal With Writers’ Union

A brilliant move by David Letterman's production company Worldwide Pants, as an independent agent, to negotiate its own deal to return The Late Show and The Late, Late Show to air. While the other late night shows must deal with ownership issues from the broadcasters, Letterman can negotiate his own interim agreement and return live to the air. Competitively, that will give those shows a big edge. In fact, ratings last week showed ABC's news program Nightline beating the repeat runs of Leno and Letterman. Viewers want to watch original shows, not repeats.

Perhaps the lesson learned for the WGA, should an agreement be reached with Worldwide pants, is that you can't slay an 8 headed dragon at one time. Work on individual deals/heads and keep your demands reasonable. The more you succeed, the more the others will have to follow.

Hollywood warned 'writers will move online'

Timing. That is the secret of comedy. (Wait for it).........Tiiiimiiiing. Timing!

An interesting perspective by the writers and quickly countered by Rupert Murdoch in an interview with Cavuto. But truth be told, Fox, the internet is already changing the face of television and the writers strike is simply hastening the speed for which people seek alternative content. Look at niche networks delivering original content to the web audience, from humor on Funny or Die, to financial info on Wallstrip, to an aggregate site of unique niches on NextNewNetworks. The world of entertainment and distribution is changing rapidly.

What determines the speed of change still relies on technology. Apple TV tried to bring web content to the TV screen, but has not proved effective. Tivo ties in to Amazon to download content, as does Vudu. The writers point will be seen as true only if the technology improves and the consumer rushes out to purchase. The success of the Wii and the rush to the store indicates that a good product gets purchased.

The writers threat is not just to the producers, but may prove bone chilling to the distribution model as well. Cable companies and telco have a stake in this writers strike too. Consumers will downgrade their service to basic broadcast only or drop all together and upgrade their broadband speed to improve the quality. News weather, sports, entertainment only from streaming; the broadcast model turned upside down.

So while Murdoch may not take the writers threat of going straight to the web seriously, he should be cautious. Barriers to entry are coming down and content in the hands of professionals may take the web to a whole new level. Don't believe me, just watch some of the videos the writers have created to stress their point. They have the tools to succeed. Now if only technology follows.

DVR Software Firm ReplayTV Sold To DirecTV

Direct TV's purchase of DVR company Replay TV, is the clearest signal yet to Tivo, that their relationship is over. Soon Direct TV will announce that their partnership with Tivo is over and they will no longer offer the Tivo box to their customers. Now that Tivo has learned how to work under OCAP and continues to rollout across the Comcast footprint, hopefully other cable companies make the decision to use the Tivo brand inside their DVR boxes. I believe that Tivo, marketed correctly, can be a competitive tool for cable companies to use to compete successfully against satellite and telcos. It is a superior product.

Strike may change network landscape

Don't let it be said that the producers aren't equally worried about a long writers strike. Tonight, NBC airs 3 hours of alternative programming, 2 hours of Deal or No Deal, followed by 1 hour of Dateline. And be sure to watch the same Deal re-aired soon on CNBC. Hard to expect the ratings to soar for NBC tonight. And if history repeats itself, NBC will hurt the longevity of its Deal franchise just as ABC destroyed the show Who Wants to Be A Millionaire.

And now, word comes down that the networks will borrow from their sister cable channels. CBS announced earlier the plan to use Showtime Channel shows like Dexter and Weeds, while NBC will borrow from USA and Bravo. Of course NBC has already repurposed the Law and Order franchise on these cable nets, so the circle is complete and we can enjoy Psych and Queer Eye on NBC. How long will this filler last; hopefully not too long as each party realizes they need the other to create quality content that fills the multiple pipelines.

Showtime may seem some initial gain; with a smaller premium audience who has seen these shows. Showcasing them in edited form on CBS may gain new viewers willing to upgrade to the premium channel to watch current episodes uncut and commercial free. But NBC does not have this advantage with their basic nets.

Without original scripted content, there is nothing valuable to showcase across the other screens. No one will download Deal or Dateline, especially after you repurpose them so many times.

FutureThink: The Media & Entertainment Industry 2008 and Beyond

I attended today's NY:MIEG breakfast featuring David Poltrack of EVP of CBS Television. Mr. Poltrack is EVP and Chief Research Officer, CBS Corporation and President of CBS VISION. David Poltrack oversees all research operations at CBS encompassing audience measurement, market research, program testing, advertising research, and monitoring of the national and international video marketplace. And he was brilliantly interviewed by Garrick Utley. Mr. Utley is the President of the Levin Graduate Institute of International Relations and Commerce of The State University of New York. For forty years Garrick worked as a broadcast journalist on NBC, ABC, CNN, as well as Public Radio and Public Television. With a primary focus on international affairs he has reported from more than seventy-five countries.

The conversation centered on the 3 screens: TV, Mobile, and Internet, and the explosion of choice and exponential growth of content. The TV screen continues to be the medium of choice, and while becoming highly fragmented do to the number of cable and broadcast channels, it is still experiencing strong growth. It expects to continue to grow because of retrans consent, international opportunities, and of course Hi Def. Along with technology, TV continues to reinvent itself as noted by the rise of new types of alternative/reality programming, which began as low cost summer programming, has now become a more important staple for prime time, especially now with a prolonged writers strike.

Mobile is still finding its legs in the US. Over 35% of users have phones with video capability, but currently less than 5% of them watch video. The rise of the iPhone and technological change means better video viewing opportunities. That it is still subscription based means that there is revenue attached, but the future is dependent on how this business migrates to a free, ad supported model and the portable viewing benefits. While many look at the Europe and Asia use of mobile, it was noted that they rely on this type of viewing because there is not as much TV content available for them to view.

The third screen, internet or broadband, has seen huge change. As little as 2 years ago, the first streaming of long form content occurred with Lost and Desperate Housewives. Today, broadband penetration is at 45% and their is more upside. Also, the ad supported model is being tested although its impact at the moment is small. But it offers more cross-over strengths with the TV screen. The internet has lowered the barriers to entry for content creators and has become a "virtual workshop to find new creative talent and bring them to the bigger screen." Mr. Poltrack looked at how CBS has made its distribution accessible on all sites so people won't go to the trouble to illegally download. Mak eit easy to get and you just have to watch the ads.

Mr. Poltrack spoke also of the research center in Las Vegas, able to reach immediately a cross section of America. When asked what was the biggest profound change in television, the answer was not the colorization of the tv picture, but the growth of the DVR. Now 40% watch shows in playback and growth of the DVR has also been explosive as more consumers use the fast forward feature to bypass ad spots. It has change the ad model, with advertisers now paying on the audience watching commercials. It has also caused advertisers to seek new ways to get the message communicated - bugs, product placement, sponsorship, etc.

As to the future, Mr. Poltrack says the challenge is for the user's attention and time. What it will take these screens to continue to be viable to the viewer, "make me laugh, make me cry, and inform me."

Will Cable Cos. Ever Enjoy Their ROI

It seems every time cable companies have invested lots of money into their plant, it is because of the expected windfall of revenue they will receive. But they never seem to get the chance to rest as new technology and new uses continue to require them to continue to invest in more bandwidth. Just 15 years ago, cable companies were happy to offer 30 channels, then just 10 years ago, "digital" tiers were built and 8 analog channels could fit into one digital spot. And more usage was found with hi speed. New cable boxes emerged and more investment. Just 5 years ago that same pipe saw more usage from telephony and VOD and again more capacity was needed to satisfy the increased volume on the pipe. Today, the talk is about Hi Def and again the cable pipeline is showing signs of cracking. Talk of "switched digital" has become more necessary so that the pipeline can be more efficient, allowing only one stream at a time to go down the pipe as opposed to all pushing down to the TV simultaneously. But investment is still required on cable plant to handle more streaming of larger files of internet activity at the same time.

And now competition from telcos and satellite even more threaten cable's ROI by taking away large chunks of customers. Can cable succeed on smaller profit margins? Who gets hurt as they try to squeeze down costs and raise prices? And what is the next application after HD to require more bandwidth on the pipe? Stay tuned.

Keep an eye on: Media industry job cuts

As the economy continues to shake out and unemployment rises, another industry is going through a shake-up. The writers strike will enable producers to cut back its budget and reduce head count. Today, NBC has announced job cuts across their news division. And a few days ago, the purchase of Oxygen Cable Network by NBC resulted in loss of jobs for a majority of that company.

And while other industries have gone through these similar changes as their businesses have matured, media has previously seemed protected by this tightening of budgets. New media may be what you want when you want it where you want it, but it still needs talent behind it to make the content valuable and purposeful. You can't keep asking for more work from less staff.

Comcast sees customer loss in 2008

That the stock market hasn't already taken into consideration into the price of cable stocks, the effect of competition for cable subs from phone and satellite companies, is surprising. That it takes comments from Comcast affirming that competition does exist to cause todays drop in stock value is simply reactionary and hopefully short-lived. Competition is here and it should be a surprise to no one that existing cable company subs will move to phone.

Cable companies like Comcast and Time Warner have been living the good life, competing only with satellite and offering a more robust and technically superior product. But the moment cable entered into the phone business and Verizon and AT&T recognized that to retain their wired customer they too had to offer TV, the marketing wars would begin, pricing would become competitive, and eventually the swing of subs would have to shift back to the middle; consequently, an initial loss of basic subs. Convergence of technologies and selling the bundle brought more competition, not less.

But rather than bemoan the loss of customers, cable should look at the opportunity that the pipe offers to go further into new businesses - commercial businesses, security, e-commerce, and continue to find new uses and new users to the cable pipe.

Cable has had the monopolistic grasp through exclusive franchises and lack of competitive threats till now; the phone companies have been aggressively pushing to gain a foothold into the cable business for more than a year. Their intentions have been obvious. The stock markets reaction and price drop is either short sighted or based on other issues not yet fully announced.

DVD Sales are Declining

When is the last time you bought a DVD? Like the cd and the music business, Video and the DVD are affected by technology. Should it be a surprise to anyone that DVD sales are declining. The rise of VOD, streaming, Slingbox, and even Netflix and Hulu means that the days of buying a disc are over. And those download streams are easy to copy and save a personal copy withour purchasing. The only dvds I tend to buy are kid oriented and soon will come the day that even those sales will slow down.

Unless DVD distribution finds enough of a reason to encourage buying, purchase behavior will continue to shift. DVDs do allow for mobility and can provide extra footage (deleted scenes, bloopers, commentary)that the rabid fan may fine important. The rise of the HD format may improve those sales figures, but the manufacturers have made it hard for consumers by coming out with 2 competing products; so except for the early adopter, the majority wait till one manufacturer goes away. Can you say Sony betamax!

FCC wants to set a 30% cable ownership limit

What is going on at the FCC. First they try to impose a la carte rules and contend a 70% cable penetration and now they are trying to limit a cable company's ownership. What is there underlying motivation? If it is to promote more competition, I am hard to understand how this strategy makes sense.

I am a true believer of economics and the ideal notion that normal market forces will find equalibrium. As an example, look no further than cable and the role economic forces are playing. The rise of the phone companies into cable, the growth of satellite, and the technological forces that wireless and high speed. Rather than limit cable, allow the market to be open. Let technological change bring in more competition; perhaps finally the electric company will find a way to push programming and information through their electric wires. It is true competition that will create supply and demand and set real prices. It is the FCC and franchise exclusivity that limits it.

As a second example, look at the Sirius and XM Satellite merger. Again technology and market forces should be more at play than preventing their merger. The growth of ipods, wireless, and even over the air radio, is enough competition to not interfere. Consider if Direct TV or Dish make a play for mobile and the free market rules.

My advice, sometimes hands off is the way to go!

From United Hollywood re Latest Writers Strike Info

Copied from United Hollywood:

The companies put out a press release today, thus ending the media blackout to which they and the WGA agreed. So this is what we no know:

That big, amazing proposal that the companies hinted to Nikki Finke was coming? Well, it came.

Turns out their exciting, groundbreaking proposal is... a residual rollback. And not just any rollback, one of the biggest in the history of the Guild. Then, stunningly, the companies have the balls to say their plan gives us more compensation. Well, I'm sorry, but If you take away a dollar and give me a nickel, the nickel ain't a raise. Somewhere, Nick Counter's first-grade math teacher is embarrassed.

So we decided to do some math of our own: We broke out the cost of the WGA's current proposal to the conglomerates into yearly figures. We found that the TOTAL payment yearly -- the total that ALL the companies would make under our proposals -- is $50.54 million. And that, we realized, is about one-third the budget of TRANSFORMERS. We are asking IN TOTAL, for the equivalent of the cost overrun on a summer event movie.

Instead of agreeing that that is a fair and just offer, they've proposed this:

When an hourlong episode of television is streamed on the Internet, writers would get a flat $250 payment for one year of reuse. That's $250 as opposed to, for example, $20,000 per episode when it's reused on network television. They proposed nothing new on downloads, it's still the DVD formula for those (ie. two-thirds of a penny for an iTunes download). For theatrical movies, they're offering exactly $0.00 on streaming. Oh, and they want to be able to define any content they like as "promotional" -- for which they would pay zero dollars. Even if they stream an entire film or tv episode, and even if they sell ads on it, they can call that promotional and pay us nothing.

THE AMPTP claims their deal is worth $130 million over three years. But what they don't mention is how much we'd lose under their proposal. As all media distribution transitions to the Internet before our eyes, their proposal takes away far, far more revenue than it provides.

A bold, new relationship? Sure, an abusive one.

Patric Verrone sent this letter to membership a few minutes ago:

To My Fellow Members,

After four days of bargaining with the AMPTP, I am writing to let you know that, though we are still at the table, the press blackout has been lifted.

Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a "done deal." In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers.

Thursday morning, the first new proposal was finally presented to us. It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

From streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year's reuse of an hour-long program (compared to over $20,000 payable for a network rerun). For theatrical product they are offering no residuals whatsoever for streaming.

For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15 minute episode of network-derived web content for a script fee of $1300. They continued to refuse to grant jurisdiction over original content for the Internet.

In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse "promotional," and pay no residual (even if they replay the entire film or TV episode and even if they make money).

The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us. We are scheduled to meet with them again on Tuesday.

In the meantime, I felt it was essential to update you accurately on where negotiations stood. On Wednesday we presented a comprehensive economic justification for our proposals. Our entire package would cost this industry $151 million over three years. That's a little over a 3% increase in writer earnings each year, while company revenues are projected to grow at a rate of 10%. We are falling behind.

For Sony, this entire deal would cost $1.68 million per year. For Disney $6.25 million. Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million. MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year. As we've stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

The AMPTP's intractability is dispiriting news but it must also be motivating. Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public. We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together.

Best,
Patric M. Verrone
President, WGAW

Michael Winship
President, WGAE

_______________________

Negotiations start up again on Tuesday. The only good news is that they are agreeing to continue to talk, but are they both interested in resolving this strike or is this just further delays and more a giant production spectacular, all glitz but no substance!

Hulu or Hula

Have you tried googling the NBC/Fox site for video content and found yourself calling it H U L A and not H U L U. Where one is a Hawaiian dance, the other is the offical website. As it relates to building a brand message, I wonder if that confusion will help or hurt the site. Should Hulu buy the hula website and redirect people to the correct site or has some entrepreneur already picked it up in anticipation of that economic opportunity.

By the way, the correct site is Hulu! :)

Networks set for $120m from web ads

According to the article, the big four networks, ABC, NBC, CBS and Fox are in line to earn $120 million in ad revenue this year from online advertising. And the growth continues to skyrocket. What is not mentioned is whether the same networks are seeing a decline in ad revenue from their video product. And while ad dollars have moved from broadcast to cable, each of these networks own multiple channels in each space as well as building or acquiring web space. So it is likely that this $120 M in online revenue is incremental growth and not cannibalization from other products. "The total online video advertising market will be worth close to $1.3bn this year after doubling in size in 2006, according to Accustream, the digital media research company."

And with content needed to fill all of these buckets, it is clear that it cannot be done without strong compelling content. I hope that the news blackout on the current negotiations between writers and producers is indicative of a real attempt to find a solution.

And with stories like these, the writers' point is clear; there is revenue being produced from this hard work.

Web bubble 2.0 for social networks?

Is social networking more fad than future? How do the applications of social networking converge with the entertainment media? ABC has just announced a relationship with Facebook and Fox and My Space are adding more newsfeeds to their site. So it is hard to imagine a bursting bubble, but more change is coming. levels of sharing of personal information must occur. I for one am not sure I want to mix my business social net circle with my personal circle.

The best opportunity for social networks to change is with video applications. As IP TV becomes more a reality, this convergence should become even easier for the consumer to enable and enjoy. Opinions registered right on the screen and easier interactivity for the average non-tech consumer to handle.

Also from Media Week, "Worldwide shipments of multimedia-enabled mobile phones will exceed 300 million units next year, surpassing shipments of television sets, according to a research report by MultiMedia Intelligence. By 2011, about 9 of 10 mobile phones will include capabilities such as video playback" Technology is enabling more social networking, not bursting it.

The End of Print Newspapers?

It seems that Tom Brokaw has made an interesting prediction, that in 10 years, print newspapers will go the way of dinosaurs. That must be welcome news to Amazon's Kindle and other portable devices. And as we begin to get more and more environmentally friendly, the reduction of paper use must be a welcome relief.

As a fan of newspapers and magazines, I will find it hard to completely move away from the tactile feel of turning the news pages and cutting out coupons. And the ability to lighten my load of the paper, once read, from my briefcase to trashcan. And how many devices must I constantly carry - cellphone, PDA, and now reader. Plus all the unique chargers to keep these devices working. My briefcase is getting heavier just thinking about it. And the paper reduction now leads to more electronic consumption. Will global ecology efforts ever improve.

Yes, digital consumption continues to grow and the print media will no doubt be affected by this convergence. But we will always need content and journalists, no matter what the media they write to (cave walls, newspaper, electronic), is what we will always consume. Professional, intelligent, thoughtful content. This too is what the writers strike is all about. I just wonder ultimately what the device will look like to feed our reading passion.

Writers Strike negotiations to resume Monday

Great video from SNL's Will Forte and Kristen Wiig. Lets hope both the writers and producers come to the table with the intent to find a win-win resolution. I want to see professionally produced content come back. Reality TV has its limits too. Happy Thanksgiving!

Kindle update

From Valleywag - great comparison!

Amazon creates Kindle for a Digital Read Experience

Last night on the train ride home, as I was reading my book, I noticed my seatmate trying out her new Kindle reader. And as a technophile, I was intrigued by its sleak look and its readability, even from my sideways angle.

And yet, I did not feel compelled to keep looking over her shoulder. As a fan of reading, I love the feel of a book. And I love the chance to share what I have read to others. In fact, my current book is a recommendation from my wife who passed on the book from her to me. I am thoroughly engrossed in its story.

At some point, books stack up on the shelves. Some are shared with friends and family. Some remain to be re-read and enjoyed again; others sent to the local library or book fair for others to enjoy. Is Kindle the reader that changes that dynamic? At some point it will. Chnage is inevitable; when did you stop using the yellow pages to get your business phone number and went to the web instead.

But I don't think Kindle is the answer to the book reader yet. In today's environmentally friendly world, it may make most sense to replace the daily newspaper or weekly magazine, which tend to be read and recycled quickly. But for now, I don't think the book reader will find Kindle advantageous.

How many friends can you have

Terrific article in today's WSJ about the social networking phenomenon. And while business networking sites like Linked in may be more effective the larger your contact base, it, like Facebook and My Space, does lose its effectiveness as the number of "friends" increases.

At some number, those friends have to be divided into groupings - Best, good, and once in a blue moon. In the beginning, it's great to be linked to everyone, but as the number of contacts swell, I find myself not even looking at some of those friends updates as often. And as the article suggests, these sites are simply passive connections; real friends physically keep in touch.

So is social networking a fad or future. How we take back our lists and determine our core relationships from our secondary ones may impact its value. I just hope the sites don't inform you that you have been "DE - LINKED" or "UNFRIENDED"!!

Writers Strike continues to Stop Production

It looks to be a loooooong strike and as more productions stop, NBC has already pulled out of the TCA press tour. It sounds like other big studios will follow and call this season a do over. The shame is that corporate and shareholder responsibility take a front seat, while social responsibility takes a back seat. Should the writers have gone on strike as opposed to work without a contract, I had hoped so. But they didn't, and the studios are using it as an opportunity...yes, an opportunity, to lay off many people and save costs. Will they get hired back when the strike ends? Who knows. But likely, staff will be reduced and budgets cut on EVERY show. And yet, it is these people, formerly employed by the studios, that they should have protected. It is them that will help them get into the digital age, doing the actual production dirty work to get the content looking great. The studios should have treated their own production crews as allies, rather than after thoughts.

Digital media is changing the world. The only thing constant is change. But as traditional revenue sources shift because of new technologies like Tivo and DVRs, cellular and wireless, VOD, streaming, and downloads, it opens up the mind to endless new opportunities for new revenue streams. The potential is there for Hulu and Joost and others to succeed. The shift has already started and the writers don't want to lose their fair share. And studios deserve to earn their profits. The pie's slices may be different sizes, but they are changing every day. Get back to working toward a resolution; treat the slices as one pie and decide on a fair percentage regardless of how the pie is cut.

There is enough to go around; if you work together, the new doors will open wide and all will win!

Big Screen vs Little Screen

Today, I met a person who said he didn't own a TV. He relied on the web for his news and public establishments when watching a game. And does he watch episodes through players like Hulu, I asked. Not really, was his reply.

I happened to watch a :30 Rock episode recently on Hulu, and while I like the quality of the video, I missed the intimacy of watching on a bigger screen TV. if I could have watched the same video on VOD, I would prefer that format. But I wonder if I am unique in my preferences. And until the big screen TV is simply a monitor for streams from the computer, how I differentiate the two.

I see Hulu and You Tube as a secondary way to stay close to my favorite shows. There value to promote the brand, not replace. It keeps you close to the show until the next episode is ready to air and lets funny, or interesting, water cooler moments be shared across the web.

Let's get this writers strike settled, let's get everyone back to work, and let's put on great content.

Writer's Strike, Who Benefits, Who Gets Hurt

Some may argue that the writers strike actually benefits both the writers and the producers. For each continues to have alternatives to make money while the strike continues. For the producers, some have argued, that the strike enables them to fire all, cut costs, and get a do-over. Some believe that they are so disappointed with this year's crop of new shows and some old ones, that they can clean house,and use reality and news to offset their loss. For the writers, shows that are in the can and being aired new or in syndication, the writers, and even actors, continue to receive royalties. So the income continues to come in. Thus no need to settle early and leave potentially lucrative new sources of income on the table.

So who gets hurt, first all the behind the scenes people, who work tirelessly to make the creative side look good. They have been the first laid off, without a layoff package, potentially without healthcare, and truly with an uncertainty whether to wait out the strike and hope to be rehired or seek other employment. It is a no win.

The viewer loses, but not nearly as much. Unlike the last writers strike, there are new opportunities to view old shows missed the last time, or start watching their dvd collections or further embrace web based programming. And so the crux of the writers motives. Viewers, writers, actors, producers will all survive. For production and back office, it is another story.

Hulu looks great

I put my email address on the hulu website and was fortunate to get a password sent to enjoy the beta version. And while I can't understand why the investment in hulu to promote NBC shows, when nbc.com should be that resource, I do have to say I like the easy navigation that hulu offers. The nbc.com website comes across too cluttered and hard to navigate. Think you clicked a link to full episodes, but find your self on another general page. To many clicks to hard to get what you want quickly.

Hulu, on the other hand, has created a nice clean player, easy navigation, and at the moment, no full frontal assault of advertising. And while the NBC and Fox partnership may have created a nice new business, I continue to wonder why you couldn't take all this same learning and simply apply it correctly to your own network website. Hulu doesn't easily roll off your tongue and too many times I want to type H U L A. Thank goodness for bookmarks.

I like the concept of Hulu, I just don't like the clutter of a hundred different websites offering the same things, or each site offering something slightly different: one for downloads, one for streaming, another for clicks, a fourth for fan user generated versions. Rather, organize one website cleanly with easy search and quick access. Do we need hulu, no; but we do need the kind of thinking that makes for better synergistic use of the web and TV.

Data: U.S. Internet Advertising to Double to $42 Billion Over Next Four Years

Why are the writers striking - well with announcements about the growth of internet advertising, it's no doubt that everyone, writers included, want their "fair share" of the pie. Still,the number not mentioned is the overall growth of advertising spent, regardless of where. Does more choices for viewing, TV, DVD, broadband, mobile, equate to growth of viewing or simply redistribution of the same pie? Are the dollars moving to internet coming from something else? Is the overall growth simply inflation? My advice to both parties, find a fair % of the action regardless of the distribution method. You get paid a lot, the percentage is bigger; if you say there is no revenue, the percentage of nothing remains nothing.

Yes the times are different and consumers can flock to other resources to be entertained. But quality content still requires quality writing. How long this strike will take will depend on how soon the viewer gets bored with user generated and amateur videos and keeps asking for new fresh professional content on these new distribution outlets.

With the writer's strike everyone loses

There is truth in the line, "Those that forget history are bound to repeat it". The lessons of a strike hurt everyone, including the ones that are striking. And while it is a tactic in the fight for a better contract, it is far better to stay at the table and bargain in good faith, then hit the strike lines.

The repercussions of this strike go farther than just the two sides. Its economic ramifications hit far. Those other folks working on the show, are no longer working either. it takes many talented people, beside the writers, to turn the words into a show or movie. The networks, cable, and even new distribution platforms like Hulu and Joost are affected. No new shows, no new advertising revenue. And as consumers and viewers, we fall out of the pattern of watching these shows. That means that the shows lose their loyal base. Viewers find other things to do with their time and once they leave, it is harder to win them back.

And so there are no winners to a strike, only losers. So lets hope for a quick and equitable resolution.

Writers Guild Negotiators Eye Monday Strike

Just an absolute shame if the writers strike. it seems that the writers feel shortchanged from their last deal and their negotiated DVD percentage of payments. What is clear is that as technology has created new distribution platforms, new revenue opportunities exist and all people involved in the creation of original content deserve their "fair share" of the profits. I only hope that they come to agreement quickly.

NYT Site Unveils Revamped Tech Section

The New York Times seems to get it. Revamping their technology website and aggregating content from across other multiple sites along with the Times own expertise. It is taking the power of the New York Times brand to bring people to your site, the synergy with the press edition to market it, and the variety and depth of content to keep users inside its pages. And with compelling content and strong promotion, I have no doubt the Times will see longer page views and more users to their technology website. Now instead of accessing multiple web pages, the user gets all the editorial from other sources pulled onto one page. The same principal should be employed across all the other sections of the NY Times website. While the paper has always been a must read, providing access to related content from outside their site, will make the online edition a must read as well.

Marketing Rules Apply: No Joke: NBC Expected to Shutter DotComedy

The news that NBC is shutting down a small website - Dotcomedy - should come as no surprise. It has nothing to do with the quality of the site, although I don't recall ever looking at it before today, but to classic marketing. There are too many internet sites, many that look like each other, and so has become too fragmented for its own good. The NBC brand is very powerful and to dilute it with other brands that don't connect back to a bigger brand makes no sense. It would make more sense to push the individual brands like SNL in these new spaces, a strategy Comedy Central is employing with its content, including the Daily Show. People know and love these brands and tend to expect them to house their own content.

And what of the content original to the web. They gain by attaching them to those better known brands. It's the Mall strategy; get them to the big box stores and once they are there, encourage them to visit the boutique stores in the space. And so, my advice, make the NBC brand the home page that aggregates all the other brands. Push your viewer inside the NBC mall and from there make it easy to find the content they seek; oh and why they are visiting, check out the other smaller content sites too.

Hi Def Confusion Reigns - How Big Is It

Is High Definition the next greatest thing? According to Nielsen, and contrary to the CEA, Hi Def penetration is low, only 13.7% of TV households. And most likely, those homes may have multiple TVs, but only 1 may be HDTV. It seems to suggest that content owners need not rush to convert their programming or their channels to the HD format.

More interesting is the fact that the Consumer Electronic Association has measured that same penetration at over 32% of all households. That difference amounts to over 21 million homes that may or may not be HDTV homes.

The CEA believes that difference between their figure and Nielsen is how to define a HDTV household. Those with an HDTV set, but not connected to a converter box able to show an HDTV signal would not count in the Nielsen number. Per B&C, "The CEA’s own research, in fact, indicated that in 2007, only 44% of HDTV owners are actually receiving HD programming."

My own household falls into that mix. We have a HDTV set in the kitchen, but connected directly to the cable wire to the wall; no box. Why - the converter box takes up too much room, and the picture, even if not HD, looks great. In fact, if I could network all my sets to one HD server in the garage, I would upgrade all my sets to HD now. The boxes are space hogs and unsightly.

Most importantly though should not be how many are out there now, but how many will there be in 3 months, 1 year, 5 years, etc. Consumers love the thin ergonomic look for the HD screen, they love the improved picture, and they will continue to purchase HDTV sets. So I would be most interested in the expected growth, because HD is not going away.

Verizon's FiOS TV Bulks Up on 3Q Subs

The fact that Verizon Fios TV is growing should not surprise anyone in the cable industry. As cable companies have tapped the hard wire phone market, Verizon recognized the consumers were less reliant on their hard wire and more reliant on wireless. It stays true to the mantra, what you want when you want it, and the mobility of consumers has led to this revelation.

What the cable industry should be most concerned with is how Verizon intends to build better synergies with Fios with their wireless business. Remote programming of their cable box. Remote access to home security, and other applications that connect the mobile user to their home base.

And so the rumor that Comcast and Time Warner may partner together to purchase Sprint makes sense for strategic reasons. But if this purchase does occur as a partnership, can they mutually agree on the direction of their business without co-opting their unique cable business plans.

Verizon will continue to grow subs - some as customers find dissatisfaction from the service problems of their current provider, others because of an upcoming price war. No matter what marketing cable employs, subs will continue to leave the establishment to try the new guy. That's the battle. But to win the war - to keep them or win the cable customer back: unique programming through VOD channels and web to TV programs, better synergy across the triple or quad businesses, and exceptional service.

My advice turn your service people into the Geek Squad. Offer that expertise to the home on 24 hour notice. Spend the time and effort making each customer beholden to your company for setting up and maintaining their working home network universe of cable, phone, wireless, high speed, security, etc. That is true convergence.

Hulu Readies Its Online TV, Dodging the Insults

Why Hulu? It's the question many will ask. What does Hulu do that neither NBC or Fox can do separately. Whether Hulu can offer to NBC or Fox what You Tube can't is the ultimate answer. The other networks are employing different strategies to provide program access on the internet.

To me, while the web can act as a VOD method to catch shows that you missed on the TV, it should also be used to provide relatable content that augments the show, interactive games, additional footage, background info, that furthers the experience of the show itself.

So if the show is 30 Rock, the episode can certainly be repeated on the web, but how about additional footage of the secondary characters, like the writers of the faux show, to feel immersed in the 30 Rock experience. Now why this experience needs to be accessed thru Hulu as opposed directly through NBC.com or 30Rock.com, will determine whether Hulu as a new business lives or dies.

Net Neutrality a Hot Topic

Inside sources continue to affirm that Comcast has been involved in interfering with hi speed downloads, most notably with file sharing sites like BitTorrent. And this story will continue to grow as I'm sure other ISPs will acknowledge that they do the same. As hi speed data subscribers continue to grow and data files get larger, as in more movie sharing across the web, the broadband highway will get too crowded and bit speed will slow. And while Comcast may be engaging in some shady work, their intention, to allow the majority of other smaller files, like e-mail to flow more smoothly, seems to be their intention. But net neutrality means that all files, no matter how big or small, get equal access across the web.

So either the internet highway has to grow larger to accommodate more traffic, or technology has to adapt to "zip" or "packet" these files into something that reduces the traffic congestion.

Comcast's disruption activity has merely exposed the bigger problem.

Next New Signs Deals With YouTube, TiVo

It was exciting to read the news that one of my favorite video websites, NextNewNetworks.com, has inked distribution deals designed to give a few of their channels wider distribution reach across the web, including YouTube, TiVo, blip.tv, Joost and Veoh. These initial web channels include IndyMogul, Channel Frederator; and Fast Lane Daily. On Indy Mogul, you can find BFX, Backyard Special Effects, with an inside look on how to recreate classic effects like staging a gun battle, making zombies or ripping off a limb. On Channel Frederator, you find great animation, like The Meth Minute 39, and Fast Lane Daily is the latest car news.

And while these and the other NextNewNetwork channels continue to work to find an audience, I am hopeful that either technology or a smart cable company considers ways to get this content off my little screen and onto my big TV. While FCC rules require satellite delivered networks to be sold to all distributors, cable, telco, Direct TV; these web channels could actually negotiate exclusivity deals with only one TV distributor as a unique differentiator in the fight for cable subscribers. And VOD would be a perfect place for these channels - with promotion to tout their availability. Rentrak just announced that VOD usage grew 44% during the first six months of 2007 to over 1.4 orders.

In fact, Comcast just announced its quarterly earnings and basic subscribers dropped by 65,000 homes, because of competition, primarily Verizon coming into their markets. And while pricing is always a differentiator, unique programming exclusively on a platform can be a big plus. So take a look at their shows and imagine watching them instead on a big screen TV.

Verizon Wireless Reaches Deal in Marketing Probe

Interesting to note that as we are dismayed to learn that Comcast may have affected downloads of large files, that trend may not be limited to cable. On the wireless front, Verizon, which had been advertising an unlimited usage plan, also limited high bandwidth usage of its service. ANd while they have agreed to reimburse customers for their false advertising, Verizon has not agreed to end the practice.

As consumers become more adept in their understanding of the wire and wireless space, and content owners offer larger, higher bandwidth programs and files, the communication highway will get more and more crowded. Customers want net neutrality to assure that all content can get through to them; service providers want more bandwidth to handle the content and more rights to manage the utilization of the pipeline. Can both sides co-exist? Movie downloads, HD formats, bigger files - it will only get more crowded. How the highway is managed will be a growing issue.

CondéNet Uses Facebook to Draw Users, Ads

From Media Week: "In June, CondéNet acquired from an independent developer a program called What Are You Wearing? that lets users alert friends about their daily sartorial choices. The app, which is not CondéNet-branded, has landed over 90,000 users thus far, adding 1,000 per day, according to executives."

What a great idea and one that other brands should emulate. CondéNet is attracting like-minded consumers with a common interest through Facebook and helping to increase their interest and passion. What is missing from this set up is the synergy to a CondéNet brand. Shouldn't these like-minded users be a perfect fit back to the Style.com site. They have discovered a passionate audience and their are creative ways to make them more mindful of your brand.

This tactic of using social networking sites like Facebook and My Space to grow a passionate audience harkens back to the days of building grassroot members. The web makes the process that much more efficient and effective. And other brands should seriously consider this method to reach out to its passionate audience.

When Does a Social Networking Site Know Your Not Being Social

Just wondering... What happens when you stop using a site you've registered for. You tried out your own Brightcove Channel, you posted a few photos on Flickr, you registered an avatar on second life, you built a My Space page, and then you stop visiting the site. Are you still counted as a member? Is your site still considered active for metric info or ad sales purposes? How long do you continue to exist on the web before someone or some program notices that you are inactive and finally deletes you from the web. And while all this stuff is virtual, the memory it occupies is real and could be better utilized.

And so the easy answer might be, is to be proactive. Unsubscribe from the respective sites and delete the information. But what happens if you die first, leaving so much clutter. Does your Facebook info stick around for 10 more years? Just wondering...

Comcast Blocks File Sharing

So the recent news that Comcast may be blocking the download experience should not be considered a one-time situation, or even limited to just Comcast. It is most likely a case for all ISPs. As more users stay online and continue to download large files, bandwidth issues will cause latency and error messages. While not acknowledged, ISPs must continue to grow bandwidth space while at the same time watch usage patterns on their system.

Does this give them the right to block access? No. It speaks to the heart of net neutrality and the equality of all sites to the respective user. What might concern ISPs like Comcast is that the pipeline access will eventually lead to removing them as the middleman. Why pay Comcast for access to your programming if you can stream or download them directly to your PC or TV.

In the short run, it is unlikely because these cable networks on the cable line-up receive a monthly license fee for carriage and then your cable company aggregates them and bills the cable customer for access. Cable networks like AMC, Discovery, ESPN, and all the rest do not want to give us those fees, which can add up to 30 % or even more of their revenue stream, the rest made up from advertising. That can be quite a large amount. Technology doesn't yet get you or them ideal programming placement, and these companies would try to find unique ways to make up any shortfalls if they gave up that revenue stream for direct access.

For those video networks without current access to the cable line-up (programmers like NextNewNetworks, Wallstrip, or my new favorite Wine Library TV, etc.), the license fee roadblock doesn't affect them. These new programmers need viewing eyeballs and web streaming/downloads lowers the barriers to entry to get on the PC or TV set. So the blocked access accusations do affect their opportunities and our increased viewing pleasure. Today the issue may be about large movie files on BitTorrent, but take the same issue to other types of internet traffic, and this blockage is a big concern.

HD Battle Lines are Fierce

In the fight for the customer and their pocketbook, cable has been winning the fight through the triple play and cost benefits. But while that tactic has proven successful over the last few years, the battle lines are changing again. Product differentiation, in the form and quality of High Def channels, and the number of HD channels being offered to the home, is the new key win. As the cable channels are agnostic to the platform, the operators must tout the picture quality along with most number of HD channels to attract the customer base. And so the most recent in a series of lawsuits citing false advertising and misleading ads.

But this battle can't last long as each side continues to bulk up on HD programming and quality. Sure, HDTV sets are being sold like hotcakes, and the consumer buying these TV sets wants the most channels to play on them. Still, the long term win in the marketing battle shouldn't be numbers and quality. That should be automatic; the real battle should be at service. Overserve the customer. Fix the problems quickly by over delivering support. Most customers want all the technology in their homes, but they don't know how to assemble or integrate it. Be the geek squad. Make it part of the monthly subscription. Get to the home within 24 hours, not 3 days. Connect their wireless network, demand 24/7 reliability of the connection. Stay proactive. Put the customer first.

Yes HD matters; but the winner will be the one that delivers best service!

Beyond the world of HD and DTV

So many announcements by cable, telco, and satellite touting all their HD programming. Fios TV adds A&E HD and Fox Business HD, Cablevision and others are adding TBS HD, AT&T U-Verse is offering over 30 HD channels, and now in print ads, Direct TV is boasting more than 70 HD channels. As the holidays approach, more and more people, myself included, will be shopping for the next generation HD screen, 1080p, to enjoy all this programming.

But as I have come to learn, it is more than just having the TV set. Your converter box must be HD ready, the channel you are watching must be HD, the programming on that channel has to be HD. So many consumers today are watching HD sets, but not truly watching HD TV. There is an education process to inform the viewer what truly is HD. And with any technological transition, this too will pass, as every channel finally goes HD 24/7 and non HD viewing is a thing of the pass.

And then what else is on the horizon. As the crystal ball heats up, I am interested what will TV viewing look like 20 years from today. The black & white to color TV transition is foreign to most younger audiences; others still fondly recall getting their first color TV in the house. So in 20+ years, what is next for enjoying our entertainment at home. Size of screen continues to grow and some might speculate that video walls are destined to be next. Just look at an HD control room and imagine the ability to customize a wall in your home with 1 screen or multiple screens; shots of sporting events or of the outside of your house. Others speak of the Star Trek approach. We've watched ST communicators, an imagination of Gene Roddenberry become today's mobile phone. Could the holodeck, and 3-D and interactive be a possibility?

But getting back to today, In the competitive world of cable, HD is being touted as the big fight. Which provider offers the most HD channels. But perhaps for marketing purposes, the real message should remain service. Which provider will do the best job to install, maintain, and satisfy the expectations of their customers and keep them loyal as the quantity message continues to blast us for attention.

Fox Business News Open For Business

A number of years ago, new TV channels launching on cable were being announced by the truckload. TV Macys, Horse Racing TV, Reelzchannel, and others; some have actually found space on cable line-ups, others not so lucky. And even others, like Trio, found their lights go dark. Recently, new channels are finding launches either as VOD channels or even more likely directly through broadband or IP technology.

So it is interesting to note, that what is old is now new again, as Fox Business News starts its first day of business on the cable line-up. Obviously, the financial backing of Fox is at play to get this channel a foothold on linear TV; but if their success with Fox News Channel is a guide, they understand the formula to gain viewers and build a successful business model. Who would suspect that business news would spawn the type of competition that you only expect to see for other genres, sports, movies, etc. With competition from CNBC and Bloomberg, Fox Business Channel has their work cut out for them to win over an audience and move loyalty viewing over to their product. Should CNBC and Bloomberg be concerned; yes and no. Competition splits the audience further but als raises the interest and brings in new viewers as well. Competition keeps you challenged and forward thinking. Competition will make for better TV.

And as Fox continues to grow their linear TV stable of channels, it demonstrates one other thing. That the power of the big screen is still relevant and vital and that content can still be best served by the TV screen. As Fox Business grows, it will be interesting to see how they build synergy with their online components to create a more unique and accessible viewing experience.

Is NBC for Sale

Why does GE want to sell NBC/Universal. Actually, why does GE even keep NBC. For a company whose core business is to "bring good things to life", GE does most of its business outside of media. Their investments are more likely to be found in defense, in jet engines and aircraft, in industrial and consumer manufacturing products, and in the financial arena. So as the owner of NBC, GE has never been seen as a good fit. Can you remember when David Letterman, once a staple of NBC's Late Night, when he tried to visit his new corporate owners after NBC was sold by RCA, and the GE security through David out of their building. Great TV and typical of the bad fit between GE and their new acquisition.

So now the talk is who the likely buyers of NBC might be. Two titans mentioned in the article are Time Warner and Google. I'm surprised to not hear Comcast mentioned given their run for Disney a few years ago. Certainly any one of these companies offer a better fit than GE, but is this best for NBC or the GE stockholder. Would it make sense for GE to spin NBC/Universal off as its own company? While some consolidation makes sense, I would hope that NBC and GE could be better served as separate entities and NBC have the creative freedom to grow in this new technological age without another corporate parent. And of the two possible new owners, if that is still the direction GE seeks, I hope for Google. Their business model offers more synergy while Time warner brings more overlap.

CBS Interactive Scares Up Web Series

CBS is certainly working hard to be a player in the interactive space. Their latest announcement, an on-line series with a Halloween theme, sounds fun and interesting. And as a stand-alone opportunity, another video in a crowded field.

My question though is what is CBS's strategic plan. What does this series bring to the space that supports their bigger objectives. Yes it is consistent with their plans to be distribution neutral, allowing its content to be seen inside many different distribution portals, AOL, Comcast, Verizon and many others. But it is the content itself, the choices they are making of what to include, that has no common thread.

Unless CBS is considering buying The Horror Channel, or perhaps AMC and the Monsterfest brand, The series, "How to Survive a Horror Movie" does not bring more to the CBS brand other than as filler. In fact, this series should have been picked up by those nets to expand the value of those brands.

I'm surprised that CBS is not looking for web product that is synergistic with their TV and Radio brands and keeps the user moving among the CBS properties. What does CBS expect the viewer to do after they watched the webisode; what next CBS product might they move the viewer toward? The inclusion of this program on the CBS.com website just looks disjointed and out of place. It is listed as a web exclusive; so what. As CBS looks to monetize the web, consider shows that bring your viewer from web to TV and from TV to the web. Unless your trying to tie in "Survive a Horror Movie" with " Ghost Whisperer", your viewers will be hard pressed to care.

Can individuals make money on the web

I recently added a widget to my blog that offers to pay me every time someone clicks on the ad. I think in the last 2 weeks, I have earned less than a first class postage stamp. In addition, I have embedded Google Adsense and yet to know what revenue I may have earned. Am I trying to get rich by these methods, no; I am simply trying to determine its longevity and value.

Today, Blinkx, a video search engine, has announced its willingness to share ad revenue with users that post their videos and allow them to include advertising, everytime the ad is clicked. Rightly so, the CEO, Suranga Chandratillake, realistically set the expectations according to the article, "Mr. Chandratillake cautioned that any income derived by bloggers and others agreeing to take the ads would not be much. 'Maybe enough to pay your Internet bill at best,' he said."

So why do it. For Blinkx, aggregating all the videos helps them gain revenue, but for the individual blogger or vlogger, the return is far far less. New companies that are looking to better monetize their video web business may seek Blinkx help, but may have more success building ad revenue themselves or working with another partner that offers a more generous split.

Content vs Technology

In the linked article, the blogger argues that main stream media (MSM) is looking to blame technology for its lost audience share and to not realize that the cure is content. As he constantly notes, "It’s The Content, Stupid". And while I have continually argued that content is king, I believe that his argument is misplaced.

The reason that the MSM share has declined is not because of technology alone, it is due to the fact that the audience embraces content that is convenient and readily available. Technology has simply enabled content to reach its audience faster and in a form that best suits the users' need. The NY Times example, that subscription is declining, as argued in the blog, because the content is not relevant, that because their stance on Iraq was not accurate, readership left.

I disagree. Regardless of the NY Times stance, readers left because they could receive similar content faster and more efficiently through other technology means. Breaking news is more relevant on the web, business news changes in moments and the web and mobile can deliver that news directly. The NY Times may see a declining readership, not because they may have gotten the story wrong, but because the content is being better served elsewhere. Yes, it is the content, but it is also how it is made available. And that is the value that technology brings to content. It lowers the barriers and expands the reach. The NY Times needs to change to reflect a changing environment. It's content needs to be more relevant in a print mode than a web mode.

His argument regarding Rosie O'Donnell and her departure from The View is also nonsensical How did MSM banish Rosie? And how can he argue that audience has eroded as a result. It is just not true. And In that particular example, it's not about content, it was simply about bad manners.

Facebook, My Space, Linked in - fad or future

Are My Space and Facebook an in the moment fad soon to go the way of the ham radio, or will the user base continue to grow as more and more users are "linked in". I have had the opportunity to join and use these various social networking forums and find myself enjoying them, but each for very different reasons.

For My Space, I find it offers more personal creativity in creating a web page, yet in that disjointed manner, find various pages too busy and hard to read. At the same time, most requests for friends come from strangers with sleazy offers.

For Linked in, I see it as a great business relationship tool to share your CV and learn more about other people's business skills and possible shared professional relationships. As a business networking tool, it is very impressive and has the potential for more business applications.

For Facebook, I enjoy its social networking strengths and its ability to passively share info, thoughts, common interests, and passions. Unlike Linked in which does not need to be updated often, except to add contacts, Facebook requires an increased level of interaction to keep the information relevant and useful. It begs the question, how often are you willing to keep involved, or will one find something better and just as quickly shift allegiances. Facebook seems to be to have the better staying power as it opens itself as a key "home" page for the user to start from in their launch of the web. That means that it needs to add additional features to be regarded as that key portal.

Open Internet Coalition Opens New Network-Neutrality Front

The internet has become a vast playground of words, music, video, personal thought, and sharing. And until recently, most people assumed that anything goes. But when last week, Verizon made a business decision to block a text message because of content, it opened up a Pandora's box once again. And not just about blocking, but also about determining which piece of content gets priority.

Should the company providing the pipeline be allowed to decide what it allows and thus charge perhaps for premium access, or should the consumer expect that every piece of data, no matter in what form, gets the same level of access and flow across the pipeline?

Private business will argue that they built the pipe and should have control over enabling its use. Consumers argue censorship or anti-consumer behavior for what was created to be an open pipe. And how much government regulation is needed when an open market would allow the consumer to economically decide which provider to use based on service, access, etc. It seems that one rule begets another and the FCC, through cable franchises, has limited competition in the marketplace. Open access to all communication outside government regulation. Stop treating it as a utility and let the consumer decide with their pocketbook which service best serves their need. Not happy with Verizon, switch to another provider. Open cable and wireless spectrum up and let the economy shape the landscape.

Turner Dips Toes Into Virtual Online World

I am a big fan of brand extension in new media. I believe that the synergies create advance the core value of the program or network brand and offers greater monetization opportunity. And while I frankly don't get Second Life as a stand alone social gateway, the Turner announcement intrigues me. And it was this quote in the article that made me think...“Through this opportunity, we hope to leverage the Kaneva platform to explore how users interact with our brands in a virtual world,” TBS vice president of new products Blake Lewin said, in a statement.

I can think of a number of interesting virtual worlds that a user might want to interact in; for TBS - walk in Seinfeld's apartment and Tom's Diner, hang out with the Ramones on Everybody Loves Raymond. For Cartoon Network, walk around Camp Lazlo, or for us old timers, hang out in Bedrock with the Flintstones. Applying a virtual world with social networking and popular entertainment is the key mash up approach to success. I look forward to what Turner and Kaneva have in store. It is these kinds of relationships that will make second life far more valuable in the new media space.

TiVo Launches Interactive Direct Response Ad Group

Always interested to read how TIVO, designed to speed through and ignore commercials, continues to find ways to embrace their commercials. I purposely use TIVO to make my TV viewing more efficient, to watch an hour show in 47 minutes. It seems to me that TIVO users are less likely to be impacted by a direct response message than most viewers.

Randy Pausch Last Lecture

An amazing story. His quote "Bricks are there for a reason: they let us know how badly we want things." So true, when things come too easy, we don't respect what we have. And regardless how good or bad things are, life is precious. His stories truly reflect the notion that one shouldn't sweat the small stuff. And when life gives you lemons, make lemonade! His honesty is real. An amazing man



His full lecture can be found on You Tube. Well worth watching.

CBS Creates 'EyeLab' To Woo Web Surfers

CBS splits from Viacom and it seems to be good news for that side of the company. CBS's efforts prove to me that they understand the space and are embracing the advantages that the web brings to compliment, rather than replace, their TV model. Additive programming built around shows, seem to me to be an ideal way to enhance the show's value, encourage more viewership of the TV show, and create synergistic revenue opportunities. Not clear in the article is how CBS plans to monetize the clips they have created, but I am confident that they have a business plan.

I also expect that they are not discounting the viewer interest in on-demand viewing of their long form programs. As the viewer has become more mobile and scattered, they may not have the time to come to the show. On demand and on line content enables the viewer to watch the programs and clips on their times and not per the whims of a network schedule.

The Growth of HD and its effect on viewing choices

Comcast has just announced that it is launching more Hi Def channels, including HGTV and Food HD simulcasts. Also today, Direct TV announced that they are launching 21 additional HD nets to bring their number of national HDTV channels to 31. Next month, an additional 18 HD nets are to be added. The distribution of a Hi Def signal is best served by cable and satellite and not yet by broadband. In addition, HD sets are flying off the shelf as more consumers seek a better viewing experience. The only thing that doesn't change is time. There is still only 24 hours in a day, and once you remove sleeping, and perhaps working, fewer hours remain for viewing.

My point is that the rise of Hi Def is a competitive tool to keep the viewer connected to the tv experience. The viewer must mull which matters most the convenience or mobility to watch a program away from the tv set, or the quality of the video and sound experience to watch on the HD set. And on a VOD basis, would you rather watch a SD or HD version of the program. Would you rather watch Heroes or 30 Rock on a 2" screen or on your 50" HD set with surround speakers. With sports and films, the choice is even more obvious. Circumstances may affect that decision, but in the end, I believe the experience of HD wins out. Networks need to embrace HD; consumers are preferring it. Add an interactive component to the HD set and we may just become couch potatoes for life.

Can the Long Tail be Monetized

VHF channels begat UHF, UHF begat more basic cable tv networks, basic channels grew and begat more basic tiered channels, more came along as basic channels repurposed themselves and created digital offshoots. And the number of video offerings continue to grow at an exponential rate as channels are created on the web. And while broadcast television has seen their audience drop and cable's share has flattened, they still represent the hump of viewing. So how do the rest of these networks survive? Have we become too fragmented in our offerings or do these ultra niches still have a profitable economic model?

Ultimately the real economic power lies with the big networks who can repurpose their content on the different distribution platforms and enhance their brand value with "extras" and more interactive access. The challenge for the small network is to be seen as the dominant brand in their small pond. And to hope that the size of that audience is still large enough to monetize though advertising, subscription, commerce, etc.

It seems that the ones who are making money are the individuals who come up with the great idea and then build it out to be sold to the bigger company. As businesses, they need the synergy of the larger network to become more efficient and effective as a network. So many examples exist: Classic Sports sold to ESPN, Court TV sold to Turner, Bravo sold to NBC, and rumors of Oxygen soon going to Turner as well. On the Cable Operator side, we no longer talk of Adelphia, Vision Cable, Falcon, Millenium, TCI, Telecable and others. The same will hold true with web programming.

Bundling vs a la carte

There have always been complaints from homeowners regarding purchasing a package of channels against the ability to only purchase the individual channels you want. And at first blush, it sounds like a good move for the customer, pay for only what you want. But in reality, that might not be the case. First, people really don't watch channels, they watch programs. So if they find themselves liking a new program, they will then start moving to a transaction type model to enjoy the individual show. The more you watch, the more you spend. In most cases, buying in bulk, whether at Costco or on your channel line-up, ultimately gives you more for less.

Yes, we get channels that we may not want to watch, but the reverse also holds true, others may not like the channels we watch. Ultimately, the aggregate purchase enables all to get access. Now some channels are placed higher up in tiers and force an additional purchase, and even others may not even be available on your particular cable company's line-up. It is not an all or nothing environment for channel viewing. But the system isn't broke, so does it need to be fixed?

So how does the issue get resolved. The answer I believe does lie in the world of broadband. Channels and shows can find distribution outside the linear cable line-up. VOD enables a subscription or transaction opportunity. That cable customer can get access to on-demand without purchasing any additional channels. And the opportunities with IP delivered programming and new platforms like Joost brings more choice to your fingertips. And isn't that what we really want, more choice. So this lawsuit shouldn't be about antitrust or program packaging; the effort of these litigious individuals should be about embracing competition from Direct TV, Dish, Verizon FIOS and AT&T U-Verse in the marketplace, the choice of programming on the web and on VOD, and fair and open access to the web. That will keep the pricing of programming reasonable.

NBC to offer free episode downloads

Is NBC's digital distribution strategy clear to anyone out there. Shows are available on Amazon Unbox, Hulu, and now on NBC Direct. Where does the user end up, hard to tell. What drives them to one of these sites. Also hard to tell. How does the consumer find out that the episode is free with commercials on one distribution platform, and available for permanent ownership on another. Beats me. Why did they create Hula in the first place and when we they end that partnership with Fox. (I'm guessing it closes in a year.) We are watching NBC go through a great big learning curve. And it will be interesting to see what they do next.

CTAM NY Panel explores broadband vs cable for content

Today's panel, from CTAM's annual Blue Ribbon Breakfast, asked the question, can broadband video be cable's newest opportunity. Perhaps the bigger question to ask would be Friend or Foe.

An "A" list of panelists that included Herb Scannell, CEO of NextNewNetworks, Matt Strauss, SVP New Media Comcast, David, Eun, VP Content Partnerships Google, Dallas Clement, SVP Cox Comm, and Bruce Campbell, President Digital Media Discovery, and moderated by Will Richmond, Principal of Broadband Directions, spent the hour discussing the changes in viewing behavior and the opportunities and threats that broadband viewership brought.

The cable perspective viewed it as an opportunity provided the infrastructure included them. Matt spoke of the infrastructure to reach the user however they choose to watch and that Comcast is committed to adapt to meet that changing pattern. He points to the success of VOD and the eyeballs they are reaching as one example. And Dallas's comment regarding Hi Def programming makes the cable platform more effective for watching this type of content. Google talks publicly of its partnership philosophy, but left unsaid is how they can enter the advertising side of the cable business and be the transaction arm on the cable platform. Programmers seek eyeballs, either through the synergy from existing linear brands or by distribution efforts. As Herb Scannell suggested, we can't expect the viewer to come to us; we need to put our content out to the viewer wherever they may be. Herb also noted that the mantra is no longer "content is king", but rather "the consumer is king". The conversation even ventured into the changing pattern of subscription content, as noted by the change at Times Select.

This was a terrific panel. I must note that I am currently VP on the CTAM NY Board, but was not responsible this year for this particular event's planning. The committee outdid themselves to create a panel that will be talked about for quite a while. How consumer viewing patterns change and how the industry adapts its infrastructure to remain valuable seems the key determinant. The interactive elements of video, data, and mobile into a cohesive service may be the key win for all parties.