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.