TV Watching and Internet Use Complement Each Other

"According to a new Nielsen report, the more Internet you use, the more TV you watch; 31 percent of in-home Internet activity takes place while the user watches TV. (emailed release)" I look forward to learning more about this report. I never expected to hear that this was a zero sum game; rather, it paves the way for more interactivity on the TV set. Today, I am able to size a TV screen on one portion of my monitor as I surf through the web or work on an excel spreadsheet, the sound of CNBC announcers on my speakers. When I need to answer the phone or watch a video, I simply mute the TV sound. I was raised to multitask and expect that the younger generation is even more adept at it. In fact, I am only surprised that the research doesn't indicate an even higher percentage of simultaneous usage.

Obama Ad Seen By 33.5 Million Viewers

I am not using this blog to endorse a candidate. What I find remarkable is that the Obama infomercial, airing on numerous broadcast and cable networks, delivered ratings that surpassed the normal fare on each network individually. It beat the ratings for Old Christine on CBS, it beat the ratings for Knight Rider on NBC, it beat the ratings on ABC who actually ran their show, Pushing Daisies opposite the Obama program. And on cable, it beat ratings for Keith Olbermann on MSNBC. Wow!

There is an incredible thirst to see and hear these candidates before Tuesday's election. That the interest level drove people to watch TV, regardless of the channel, tells me that interesting programming draws viewership. Does it also say that the current programming on TV today is so unappetizing that people have turned away from TV. Perhaps. I may be a big fan of SNL but how many times can NBC keep running the show on prime time. It may be topical but it may also be overkill. Or perhaps NBC has nothing else to present. "During a season where television hits are hard to find, one NBC executive suggested jokingly Wednesday that Mr. Obama might be invited back to fill the 8 p.m. Wednesday time slot on a regular basis." The writers strike may have done more damage to broadcast TV schedules than we could possibly imagine.

Back to the Obama infomercial, its rating success only lacked local commercial insertion to make it even more profitable. While the programming was duplicative, it is interesting to see where people chose to view the show. It was exactly the same show regardless of where it was watched. It speaks to brand preference and would be fascinating to learn why viewers picked the channel they did to view this show. For me, I picked Fox; Game 5 of the World Series would follow and I didn't want to miss a pitch of this Fall Classic.

New Media's Dirty Little Word...Revenue

Internet users have become jaded; we like getting our content free of charge. Perhaps it comes from being a free TV generation, expecting ads in exchange for shows. Cable television developed the notion of subscription and found that they could push this "membership fee" while continuing to take in advertising revenue too. And so it is not unusual to hear that websites are also looking at subscription to enhance their revenue model. But when usage has been free, what to do. The answer, create a premium account that incorporates added features "-- asking customers to pay for things. Namely: Pro accounts, plus accounts, premium features, enterprise editions, and white label versions." Examples being cited in this article are sites like Ustream.tv, Meetup, vimeo, and others.

Will this please the Venture Capitalists who have been financing these business - absolutely. Content is king...cash is god.

First Disney, Now Tivo Partners With Netflix

Just a week after announcing its deal with Disney, Tivo has announced another major partnership. Joining forces with Netflix to provide the digital distribution arm for movies. And Comcast has announced that it is expanding its rollout of its DVR with Tivo into the Chicago market. Tivo seems to be successfully turning itself into the preferred box for DVR and streaming content, enabling the TV set to access an infinite assortment of content. It seems the only thing missing for Tivo is a partnership with Hulu, followed by putting a Tivo into your PS3!

Back to Tivo and Netflix, it seems like a win-win relationship. "Under the partnership announced Thursday, the latest generation of TiVo's digital video recorders will be able to beam selections from 12,000 movies and TV shows offered through Netflix's streaming service, which must be piped over high-speed Internet connections. TiVo's DVRs will start catering to Netflix subscribers in early December."

At the same time, a number of cable companies have announced that they are raising their monthly subscription rates. In a recessionary economy, is this the right move. While Netflix competes with premium nets like HBO and Showtime, consumers may find that they need to cut back on their spending. One move might be to reduce your cable bill down to basic channels only and buy a Netflix subscription. The cost savings may just be worth the move.

Mourning Old Media’s Decline

David Carr of the New York Times asks an interesting question regarding his article, "Stop and think about where you are reading this column. If you are one of the million or so people who are reading it in a newspaper that landed on your doorstop or that you picked up at the corner, you are in the minority. This same information is available to many more millions on this paper’s Web site, in RSS feeds, on hand-held devices, linked and summarized all over the Web." I am in the minority, I guess. I still get the New York Times delivered to my house and still enjoy reading the newspaper. At the same time, as I share it with my wife, I tend to go to the web to read stories in sections that she may have taken. And when I am in full commuting mode, I just might consider a Kindle to support my reading habit.

Newspapers, like cable television, has enjoyed a two-tiered revenue model of subscription and advertising. The growth of new technology has moved content outside the gated, subscription window, into an open access model. Consequently, the subscription model has lost as it is no longer necessary to "pay to play". Cable operators should take notice of this trend. As video content leaves the gated walls of its liner channel for Hulu and online consumption, the consumer may stop paying for its cable subscription and devotes itself to a web based experience. Any monetization will come from advertising until the industry figures out a new media subscription model.

Web based advertising is cheaper than print advertising. It is far easier to measure hits and target segments. At lower CPMs, it is harder for the gain in web advertising to offset the loss in print advertising. For the print industry today, it has led to a reduction in costs to offset the lower revenues. Mistakenly, some of that reduction is coming in the form of editorial cuts, the writers and creators of content. But without content, what do you have to monetize? "At the recent American Magazine Conference, one of the speakers worried that if the great brands of journalism — the trusted news sources readers have relied on — were to vanish, then the Web itself would quickly become a “cesspool” of useless information. That kind of hand-wringing is a staple of industry gatherings. But in this case, it wasn’t an old journalism hack lamenting his industry. It was Eric Schmidt, the chief executive of Google." Content is king and branded, respected content has value.

Web Video Revenue Problem Solved

How do you monetize web videos; well, according to Silicon Alley its product placement. They cite 6 reasons why product placement works including anti-skip, always connected with the video, and measurable. At the same time, Silicon Alley warns in a separate editorial that product placement can prove embarrassing. Not sure I totally agree; none of their examples seemed horrible. What may be worse is missed opportunities. One example would be M&Ms choosing to not be featured in the movie, ET; instead, Reeses Pieces were substituted as the candy that attracts the alien.

For advertisers trying to determine where to place their brand, the key is that the brand name should already be known and its brand message understood. While an unknown brand may be featured, it may be unrealistic to expect that the viewer makes a connection to the brand and its value or preference. Product placement is not the only way to be successful with web video. Hulu's strategy that less is more, is also proving valuable. Less clutter means more likelihood that the message is heard and the message resonates with the viewer. "Fewer ads make the ones on the site more memorable, Hulu executives say, allowing the site to charge higher prices for the ad units."

Newspaper To Stop The Printing Press To Focus on Digital

The Christian Science Monitor, one of the oldest papers, has made the decision to shut down the newspaper presses by next April and focus its coverage with email and web. Circulation of their daily has dropped to 52,000 and deficits are rising. "The Monitor will announce today that come April 2009, it will fold its tab-sized daily and relaunch as a glossy, oversized newsweekly format, while beefing up its Web site with more original reporting and frequent updates. The globally-focused newspaper also plans to create a daily, paid, e-mail edition that will include top Monitor stories, links to other stories and an original editor’s column."
Perhaps the time is ripe to stop all printing and create an e-version copy instead. The advertising dollar is moving online and their readers seem to prefer getting their CS news from the web. Still for a printing company, it is hard to stop printing altogether. At some point, however, Kindle or the Sony Reader or some other digital device is the next step to enjoy a downloaded copy of the news. That is where this trend is heading.

The CS Monitor is not the first to shut down. "Two smaller dailies have made similar moves in the past year. E.W. Scripps kept Kentucky Post alive at KYPost.com after folding the 27,000-circ paper along with sibling paper Cincinnati Post on Dec. 31, 2007. And in April, the 17,000-circ afternoon Capital Times in Madison, Wis., dropped its freestanding daily edition and beefed up its Web site."

Verizon Q3 Strong, Now 7th-Biggest U.S. Cable TV Provider

In just a couple of years, Verizon has grown from a start-up cable operator to the 7th largest MSO in the United States. That is quite a meteoric rise and their quarterly growth indicates that they are looking to overtake 6th place within the next few years. Unlike satellite providers, Verizon offers consumers the first real competitive choice for cable, internet, and phone. Where the cable landscape emulated the wild west only a decade or so ago, acquisition and consolidation has turned cable from a land of many to a land of few. Former cable companies, Adelphia, Century, TCI, Lenfest, and others were once part of that world.

Now, the top 10 list looks like this:
1. Comcast Cable - 24.5 M Basic Video Customers
2. Time Warner Cable - 13.3 M
3. Cox Communications - 5.4 M
4. Charter - 5.2 M
5. Cablevision - 3.1 M
6. Bright House Networks - 2.3M
7. VERIZON - 1.6 M
8. Mediacom - 1.3 M
9. Suddenlink Communications - 1.3M
10. CableOne - .7 M

It is easy to see that the list size drops precipitously and that size matters. Verizon has grown by being the true overbuilder across these other cable companies. AT&T, as the other telco has seen less growth but is currently at .5 M and expects to reach 1.0 M at the end of the year, which would then rank them at the 10th spot, pushing out CableOne.

Cable companies have been seeing growth of basics despite this competition. Is this because the telco companies are taking the low hanging, least desirable customers first, or is it more customers switching from Dish or Direct TV. Either way, as the telcos grow their footprint across the cable landscape, this list may change as a result of downward shifts to the cable company while the telco numbers soar. Perhaps more cable consolidation is in order to survive the telco onslaught...eat or be eaten!

Disney movies on tap at TiVo

Disney is moving aggressively into new media. A couple weeks ago, they announced their deal with Netflix and yesterday they announced a deal with Tivo. "TiVo is set to announce Thursday that hundreds of movie titles, most significantly from Disney, will be available to its broadband subscribers courtesy of deals with CinemaNow and Jaman." It adds another level of value to the Tivo brand. And Disney produces great content and can continue to monetize its library every few years as new parents seek great programming for their new families to watch. Will Snow White, Little Mermaid, Beauty and the Beast and all their other titles ever grow old. I doubt it. It is that rite of passage to share our favorite movies growing up with our own children.

What does change is the method of distribution. Where once the only place to go was the movie theater then The Wonderful World of Disney on Sunday Night TV, we have moved through VHS, dvd, and now download. Disney is successfully driving that trend. These new families are technologically savvy and prefer new media to old. Whether it is download to own or rent, or continue to purchase dvd or cd, the flexibility to deliver the content in whatever form the consumer desires makes it worthwhile. And as long as a digital copy cannot be easily shared and drm is working, Disney can be assured that their content remains valuable for the next generation as well.

Oprah Endorsing Amazon's Kindle

Seems like I'm not the only one that thinks Kindle is the future of reading. Oprah also agrees and is giving Kindle her thumbs up today on her show. If Oprah's Book Club recommendations are any indication of her affect on book sales, her endorsement should spike Kindle sales. "In an email to subscribers, Amazon says its founder Jeff Bezos will be appearing on Oprah to talk to her about her new favourite gadget."

Still, it is a down economy and consumers are cutting back on their spending, even their Holiday spending plans will be reduced. For Kindle to succeed, it simply needs to demonstrate how quickly the consumer will save money with Kindle versus paper. Focus marketing on cost savings and you will ultimately drive sales. Throw in the trees saved and you hit a double. Add Oprah's endorsement and it appears to be a walk off grand slam!

Network Audience Keeps Eroding

Broadcast viewership is down. And even when you count delayed viewing via DVR, the total number is still down. Less people are watching network TV. So what does it mean and is it problematic. Perhaps not.

It does not infer that people are turning off their TV sets to, god forbid, read a book. (I'm kidding) But there may be a number of reasons why broadcast viewing is down.

1. Cable networks - more choices and not just reruns. Original series are airing on cable and getting Emmys. TBS is airing baseball playoffs. ESPN has Monday Night Football. And cable content has been regarded as a higher quality to its broadcast counterpart.

2. Writers strike - when shows premiering this year are reworkings of old shows (aka Knight Rider), its hard to say that quality shows are coming to broadcast television. The quantity of new shows this year is way down and cable offers more fresh alternatives.

3. Internet viewing - the numbers are still small compared to total TV viewing and most content is still short form. Most people may argue that internet viewing is additive and does not replace TV viewing.

4. DVDs - still popular and Netflix continues to offer a compelling service. DVD sales may be down but its number is still impactful.

5. VOD - still small but not necessarily being included in the DVR figure. Still it is a growing alternative to broadcast TV.

Once there were only a few broadcast networks and cable was repeat and unwatchable shows. But that was then. Today, the broadcast networks also own cable networks so they have more ways to reach the viewers. Broadcast viewing may be down, but I bet TV viewing, whether live, delayed, or on-demand, remains healthy and strong.

Netflix sees half million Blu-ray subscribers

Netflix continues to embrace the technological shift. Not only are they deploying a download strategy, they are embracing the Hi Def world as well. And while the numbers are small, they believe that 500k of their base, or a little over half a percent, will pay a premium for HD movies on Blu-ray. Will an incremental dollar per month be felt by the Netflix customer? Or will their customer feel that this extra charge is unfair. "Netflix said the additional charge, to reflect the higher cost of Blu-ray discs, will be added to billing statements on or after November 5 and only to members who have previously enabled Blu-ray shipping on their Netflix accounts." Over the year, the added revenue impact could exceed $6 million dollars annually!

As the cost of Blu-ray players decrease, so too will the cost of discs. How long will this premium last? And will their best customers feel slighted by this added cost. Or will this increase be barely felt by this niche audience. For Netflix, the timing may be right.

Actors Union Board Holds Off On Strike Authorization; Requests Mediation

SAG holds off on strike authorization...REALLY. With the economy in a downward spiral, networks like NBC cutting back on their costs, CBS/Viacom's owner Sumner Redstone, in need of capital to stay afloat, and new media barely making a dent into traditional platforms, you can't decide what to do about a strike. REALLY. You are going back to negotiators requesting mediation and continue to threaten to take a strike vote if you can't find agreement. REALLY. " The studios maintain that SAG members shouldn’t expect anything beyond what the other four major unions signed on to this year. AMPTP also pointed out that each of those deals were made in 'better economic times.' " So SAG still is considering a strike. REALLY...Really?...REALLY!

NBC Shows Content Usage Across Platforms

Using TAMI, or the Total Audience Measure Index, to count usage across platforms, NBC affirms that TV maintains a clear superiority in usage. It makes you scratch your head why the Writers Guild and SAG have fought so forcefully for its share, when its share is still a blimp. Makes you wonder why there was a strike last year at all. They truly were fighting over pennies. It demonstrates that a short term agreement would not have hurt their long term viability.

And while the information is valuable to ad monetization, it may not paint a completely true picture. Still, it is a terrific means to compare the platforms and get an aggregate understanding of how content performs. I also think that DVR usage should be measured and can only assume that it is being included inside Television. But is the information accurate and does it measure real usage. It is argued that it does not represent engagement-based measurement and that across platforms, usage measurement is not apples to apples.

But, it is a first step and represents a small leap in recognizing that content, no matter where it is viewed, has an impact on ad monetization. NewTeeVee makes an interesting point, "... because the data isn’t engagement-based focusing on total minutes, either for television or the streaming data, it’s mostly useless, but for including the download numbers we thank NBC profusely! The bottom line is, TV is still king, though streaming is growing. But, unless and until they provide minutes of streaming, it will be difficult to get a true idea of what portion of viewing of shows happens via sanctioned streaming channels." It does say that content is being viewed in many ways, across mobile, VOD, streaming, and download. Viewing patterns are changing and good content gets consumed many times over.

Panasonic Takes Tru2way HDTVs To Retail

Tired of your cable box forcing you to not be able to use your TV set's features. Wish the TV set could do all that it was built to do. Well the cable companies are listening and they have agreed on a platform to allow interactivity to be built right into the TV. Tru2way has been the solution and now the first sets are hitting the retail market. Unfortunately, in a bad economy, the rollout may have just slowed down.

"Panasonic's first tru2way-enabled Viera plasma HDTVs will be offered in 42- and 50-inch sizes. The sets include a tru2way cable receiver -- eliminating the need for a separate set-top box -- that should theoretically work in any cable system that supports the technology." These sets are being sold in two markets, Chicago and Denver; hopefully, it will become nationwide soon.

While fist generation products tend to need tweaking, its nice to see that Panasonic, Sony and Samsung are putting tru2way into their HD sets. If you don't like the cable box, your prayers have been answered.

Big Media, Bad Idea: Synergy Isn't Working

Once upon a time, bigger was better and synergy meant cost effectiveness and strategic efficiencies. But somehow, that concept seems no longer true. While conceptually synergistic relationships make sense; perhaps the human part of the equation offsets the logical side. Or so that seems to be the case today, especially with media companies. As measured by shareholder value, "Between last week and the same week a year ago, Time Warner shares were down 50 percent; Viacom was off 59 percent; G.E. had fallen 46 percent; News Corp. slid 65 percent; and Disney, the big winner, had tumbled a mere 34 percent."

Content connected to distribution is not a happy marriage; Time Warner is divorcing Time Warner Cable and continues to talk about pushing off AOL as well. Should Comcast Cable spin off its programming arm? What about Cablevision and Rainbow Media? The market seems to want these entities to separate in order to unlock more shareholder value. But will it also improve their operations?

In a recent move, Showtime and CBS are presenting content outside their distribution plant with You Tube. "Last week, it put Showtime content front and center in a new partnership with YouTube, offering the channel's most recent series premieres of Dexter and Californication to viewers for free." Would these deals be easier if Showtime spun off from CBS.

The biggest concern is how we measure success. What is more important, long term ROI or short term shareholder equity? Are they mutually exclusive or can they both be met? Clearly the market wants its value now but will that also improve the value of the content and distribution as separate entities as opposed to combined ones? It will be interesting to see which strategy works best.

Digital TV switch will be messy: FCC official

As February 17, 2009 gets closer and closer, the public will be inundated with the message, get a digital converter or you will lose your TV signals. But will they pay attention. As the country has been divided into the haves and have-nots, those that have a cable connection need not worry. But for those that don't, they may find themselves in the dark, literally.

"About 15 percent of U.S. households use only analog TV sets and could risk their screens going black as analog signals are turned off, according to the Government Accountability Office, a congressional watchdog group." So do those 15% matter or because they most likely fall into the have-not group, their transition is less a priority. I keep wondering whether the transition date won't be delayed. I put the odds on that it gets pushed back. "Congress ordered the switch to digital, effective February 17, to free up public airwaves for other uses, such as for police and fire departments." An added month may be needed as we reach the date. People tend to wait till the very last moment and thus an increase in requests for the digital coupon may not be fulfilled in time. In either case, the clock is ticking.

Sirius XM chief: Yes, we will be profitable

Mel Karmazin is optimistic and bullish on satellite radio. He talks the talk and walks the walk, and believes that his combined company will be stronger and more profitable in the long run. Mel is building up his size and he believes in content and when he does the numbers he still sees growth. "Today, Sirius XM has 19.5 million subscribers, which Karmazin said makes it the second-biggest subscriber base in the cable-satellite space behind Comcast, and is slated to keep growing. " Despite a poor economy, people are still buying cars and he is putting the Sirius option in most of them. With free months to taste the content, he believes he will convert at least half into long term customers. Along with Howard Stern and Martha Stewart, he also has NFL, MLB and much more. Will this be enough to keep people in their cars listening, I'm not sure, but Mel says "that between 94 percent and 96 percent of Sirius XM's revenue comes from monthly subscription fees, not advertising." So if the ad community sees measurable results, the profit upside can be strong.

Campaign Articles From Newsweek Become E-Books for Amazon Kindle

Talk about great synergy, repackage content and republish across a brand new media. That is what Newsweek is doing and I think it is a great idea. During this election period, voters are interested in knowing as much as they can about the candidates. Newsweek is taking these articles and putting them into a book series on the candidates. But rather than publish them with the risk of losing money on the cost of ink and paper and distribution costs, they are creating e-books for Kindle.

"This week, Newsweek will publish four books, one about each of the major presidential and vice presidential candidates — Senators John McCain, Barack Obama and Joseph Biden, and Gov. Sarah Palin... Turning this kind of collection into books is an old idea; what is new is to do it with such minimal production and distribution costs that even the most limited sales could be profitable."

I expect more publishers to follow a similar tact. If content can be monetized more than once, it becomes that much more profitable. The timing for this type of coverage at this moment in history is never better. And the Kindle technology gets a boost from this kind of increased awareness. Try reading these books on an iPhone and you may become a believer. Perhaps it is time for Apple to have its own reader in the marketplace.

YouTube starts running full-length CBS shows

Ask most people who watch video on the web where they go and they will surely mention You Tube. In fact You Tube is ranked first in usage and continues to lead others by a wide margin. As an aggregator of video content with the premium bran identity, it makes sense for You Tube to continue to grow to reflect changing usage factors. The rise of full length content on the web, the success of Hulu, and Netflix's recent partnership with Starz for online content has led You Tube to also present full length videos. Recently they showcased the second Presidential Debate. And now they have announced a partnership with CBS to stream old and new CBS shows on its platform.

"A mix of archive CBS shows, including "Star Trek," "Young and the Restless" and "Beverly Hills 90210," will now be available in full-length episodes of 20 minutes to 48 minutes. The shows will have a full-length badge to distinguish them from shorter clips, and will be available in a new 'theater' mode to improve the viewing experience, YouTube said."

Hulu, a joint venture of NBC and Fox, must be disappointed that CBS has not joined them; clearly, it would have given Hulu a much stronger impact in the race for eyeballs. The You Tube - CBS deal seems a perfect fit though, the blend of both short form clips along with the chance to watch the whole episode. Versatile, flexible, viewer friendly. "YouTube's audience size dwarfs Hulu. YouTube is the world's largest online video site with more than 330 million users in August, according to Web audience measurement firm comScore. Hulu by comparison had just 3.3 million users." For CBS, they went with the leader. If the eyeballs follow and the ad dollars get monetized, it will be a home run strategic move.

Good News For Stand Alone Tivo Fans

As a user... of a standalone Tivo, I have been a little bit concerned that the digital switch next year, coupled with Comcast moving to a switched digital technology, would make my Tivo useless. And while switched digital hasn't reached my neighborhood yet, it is being tested in Cherry Hill, NJ. The good news is that Comcast "confirmed Wednesday that it is making a new breed of Tuning Adapters for customers who use inherently one-way CableCARD-capable digital TVs and stand-alone TiVo digital video recorders (DVRs) that require help accessing channels delivered in the operator's switched tier."

Having used both the DVR accessed via a cable box and a Tivo, I absolutely prefer the latter. It's easy navigation, it's trick features, it's guide, it's suggestions, all appeal to me. These features and more make it a better DVR device. Today, it is not a big problem. Switched Digital Video (SDV) is not being deployed quickly, but as the pipe gets more congested, SDV is seen as a way to improve the broadband pathway. And so it is nice to know my Tivo will be safe.

Comcast and the other cable operators should see this as an opportunity. The cable box needs to be vastly improved to make a competitive impact in the market. For Comcast, that has meant putting Tivo inside their cable box ins some markets; for Time Warner, it is making the box more interactive through its ActiveVideo partnership. We are moving in the right direction. The question is how quickly.

Cable Taking Interactive TV To The Next Level

Perhaps one day, the cable box will be more responsive, more user friendly, more necessity than annoyance. Time Warner certainly is trying as they have inked a deal to give more web content and interactivity to their customers. Through a deal with ActiveVideo Networks, formerly ICTV, "Cable subscribers can play interactive games from TAG Networks, and get fully customized news, sports and children's programming through P:Mosaic, a personalized video navigation system." It is being rolled out first in Hawaii and hopefully more systems follow.

Frankly the cable box needs better navigation, a more logical and economically designed guide, and easier controls. And even more important an interactive opportunity to better engage with the viewing experience.

Convergence Alert - Hulu To Stream NBC Feed

Hulu is streaming tonight's second Presidential Debate, taking its feed direct from NBC, in a move that might just irk cable operators and local broadcasters. And while it is in the public good to enable access to these debates in whatever form, it demonstrates how content and the audience it serves, can bypass local broadcast stations and cable operators to reach its audience.

"The feed will be provided by NBC News and will run about 90 minutes. In addition, Hulu will live stream the final presidential debated slated to be held Oct. 15. In that case, Hulu will carry the Fox News coverage. Fox and NBC are joint partners in Hulu."

As Time Warner fights with LIN Broadcasting over retransmission fees, the argument gets strengthened when content can be accessed over the web. Per the NYT, "In the midst of a contract dispute with a local broadcaster last week, Time Warner Cable did something that was until recently unthinkable: it told its customers to hook up a computer to their television and watch their favorite shows using the Internet." And for cable operators like Time Warner who rely on subscription to their cable line-up, including broadcast channels, the concern is that consumers will stop paying for a cable connection and rely strictly on their internet connection for content. It is why Time Warner doesn't want to pay a fee for content that is free elsewhere. Thus, the Hulu move while applauded for its desire to bring this content to the web, is dealing with a very slippery slope.

Will The iPhone Kill Amazon's Kindle? No.

Silicon Alley Insider also has an opinion on this competition and does a great job of explaining why the iPhone and the Kindle are not competitive with each other. They include screen size, battery life, and content available on each device. Ultimately, these two devices actually encompass different spaces.

"We agree that Kindle might make more sense as a software application on many devices -- not just one Amazon gadget. But while Stanza/the iPhone is a neat toy, neither the hardware (small screen/small battery) nor software (can't read the books you want) makes it an attractive offering to a buyer in the digital reader market. (And there is a market, we have photographic proof.) If the Kindle dies, don't blame the iPhone."

Better to look at what the Sony e-reader is up to and when the next generation Kindle reader comes out. Even in a down economic climate, we like our technological toys.

IPhone Stanza Downloads May Top Kindle Sales

Apple iphone users love their phones. As new apps emerge, their value to their users increase. One such app, Stanza, turns the phone into an e-book reader, capable of downloading reading material on the go. And as their are more iphones than Kindles in the market, it makes perfect sense that this free reader has surpassed Kindle sales.

Short term, it shows the appeal of the iphone; long term, it demonstrates that their is real appeal for devices that can download written content for immediate consumption. Whether that device is the Kindle or another device that Apple creates, it still needs to be a screen large enough to read, but portable to carry, capable of presenting text and pictures in a full range of colors, and with a long battery life. And content is king; "And Stanza only offers books in the public domain, unlike the wide variety of reading matter available via the Kindle, including newspapers, magazines and bestsellers."

I'd love to own an iPhone; my problem is still with the primary function of a cell phone, to make and receive calls. Today, the AT&T wireless network in the NY area does not compare to the Verizon wireless network. I made the switch a few years ago because reception was so poor. I am still not impressed that their coverage has improved. It's time to make the iPhone available to all carriers.

How Many Boxes Can Fit On The End Of Your TV?

Dateline - The year is just a couple years in the future. Quick, check your connections; how many "boxes" are connected to your TV? In the past it was the cable box, a DVD player and perhaps still a VCR. And some TVs were just connected directly to the cable or even an antennae. But let's assume it is post 2/17/09 and most every TV is connected to either a cable box or digital converter box. In addition, their may be a Wii or PS3 or Xbox or all three. Their is still a DVR or even a Blu Ray, unless your happy with your "game" box playing your HD DVDs. And perhaps you have a Roku, Vudu, a Tivo, or some other box to connect to your internet downloads. And worse still, all those different remotes are lined up on your coffee table. Now which one turns the TV on and how do I switch from one device to another. It can make your head spin. The good news, Tivo is becoming available on your Direct TV and Comcast box, Roku attaches to the web and some of the new game consoles play your DVDs. Now if we can only simplify it even more.

Vudu Making A Splash

A number of articles on the new HD format now available through an internet connected device, Vudo, David Pogue of the NYT seems pretty impressed with the quality of the picture. "Vudu calls the service “HDX,” with video encoded at variable bit-rate in MPEG-4 H.264 in 1080p at 24 frames per second—the highest HD format currently defined." And while the download isn't instantaneous, iit iis certainly faster than the day or two wait that occurs to receive your DVDs in the mail from Netflix. We certainly have become a society that lacks patience.

One interesting discussion that Pogue makes is the 24 hour window that limits how long your rental lasts for. With Netflix, hold on to your DVD for as long as you like; although, their download policy is also one day. VOD has this same one day rule. Vudu offers the second day at only a dollar more. Still, Pogue has an ingenious thought, "The 24-hour window is absurd from the get-go — why should downloadable movies offer any less viewing time than a DVD rented from Blockbuster? It should be a three-day or seven-day window, period." Cable companies should consider this move as a competitive benefit.

Netflix Picks Starz's Online Movie Service

Starz has broadened its distribution by signing a three year deal to offer its films through the Netflix service. And while these titles are primarily seen on a PC, Netflix's deal with Roku means that these same films can be seen on your TV. SO how do the cable companies feel about this. Will cable customers who have Starz cancel their subscription and get their movies through their Netflix subscription. In fact a Netflix subscriber now has more flexibility about where they watch their movies DVD player, Roku player, or PC. Companies like Verizon have also signed distribution deals with Starz; perhaps with consideration to also offer mobile downloads as well.

"Starz last month scrapped Vongo, its consumer-facing Internet movie service, in favor of focusing on landing distribution deals with cable, telco and Web providers." But will cable want to make these deals only to have to compete inside its own platform with online distribution. Perhaps another reason why Comcast wants to limit downloads and Time Warner is looking to charge for heavy usage. Starz describes this online service as more limited than cable's product, “The services that we provide cable, satellite and telco are much more robust than Starz Play,” he (Starz president and chief operating officer Bill Myers) said. “It’s not a replacement product by any means. It allows us to get to customers who may not get Starz content in other formats.” But they may be a short term response as technology should make the distinction of the two services meaningless.