Watch Out Linked In, Plaxo, WSJ WantsTo Create Another Social Network

Linked In, Plaxo, and others have been cheered as great sites for job seekers and business relationship builders. They provide an address book to keep in touch and opportunity to broadcast your latest and greatest news, and the chance to feel connected without actually calling each other constantly. I have found some of these sites to be very useful. Well it seems the Wall Street Journal wants a piece of this action. "They’ve been working on a new social network, to be called WSJ Connect, we’ve confirmed. And instead of building it internally, like they did with WSJ Community, they’ve enlisted the help of another arm of parent company News Corp."

Is there room for another player in the field? Sometimes I feel I am on too many social sites and I need to cut back. Still, if someone builds a better mousetrap, consumers will switch. This continues to prove itself out across every type of business. It is why internet access through Prodigy lost to AOL which has lost to cable broadband. There are tons of examples. So how will the WSJ build a better social network site and will consumers embrace it. Linked In, to me is the leader and they should here the wake up call. Continue to innovate or risk being swept aside by newer, faster, better.

Is Cablevision Finally Ready To Spinoff MSG

From a report on Bloomberg.com, Cablevision is finally pulling the trigger on their spinoff of their sports assets into a separately traded company. "Stockholders would receive one share of the new company, to be called Madison Square Garden, for every share of Cablevision they own, said the person, who declined to be identified because the plan isn’t public." As this isn't the first time rumors have swirled around this split, it is hard to know if it will actually occur. Many times Cablevision has gotten close to the alter but never signed the deal. SHould it happen, their is speculation that it is simply the first step to more changes. "Splitting off Madison Square Garden will let Bethpage, New York-based Cablevision focus on its more profitable cable- television business and may lure potential buyers for the company, such as Time Warner Cable Inc. or Comcast Corp., Rich Greenfield, an analyst at Pali Capital LLC, said earlier this month."

It seems once a year these rumors come up. I say it ain't so till the fat lady sings, so don't hold your breath. We will know when we know.

It's a Fight: Bing vs. Google

There's a fight a brewing in the online search world and the champ (Apollo Creed/Google) may have to worry. The kid out of nowhere (Rocky Balboa/Bing) has a new manager and business partner (Mick/Yahoo) to help train for the big fight. It's gonna be a huge fight. Bing created by Microsoft and Yahoo see more advantages by combining forces. "Through the pact, Bing will become the default search engine on Yahoo, creating a search player with close to 30% market share of search queries, compared with Google's 65%, according to ComScore data." Is Google worried; let's see.

So, do you have a preference for search engines? Do you use whatever is in your toolbar or are you willing to try the other guy and compare? Which one wins out. I may be leaning more toward one than another but I am still open. For many, asking the right question is the key to good results. Some though aren't sure how to ask and hope the search bar understands what they are asking and responds with the best matches first. For most, the process of searching can get long and cumbersome and these folks are ready for a change if it can be proved that the challenger is more adept.

I can tell you one thing, this fight will get more interesting as each site markets itself aggressively. Round One is officially on.

All Digital Means No TV Without A Box

My cable company sent us a letter informing us that even more unscrambled channels are going digital and the only way to view them is with a cable box. And that means the end of my Tivo box, unless I purchase a new one that takes a CableCard. Otherwise I am in need of a cable set-top box, a big, ugly, brick of a box that offers none of the great features that Tivo offers.

So why can't the cable company offer at least a fuller variety of options. Currently, they seem to be either ugly or useless. Nowhere in the mailing is their information on CableCards. Want more information, go to the website. Not in this case. And have you ever tried talking to a rep; it becomes extremely clear to me that they know less than I do about what they offer. Solve a problem; perhaps, but it is evident they are simply accessing a page in a book and reading me the instructions.

And so I have a month remaining before my Tivo becomes useless and I need to make a choice; put a cable DVR in my bedroom or confirm that my cable company has a Cablecard that can go into a Tivo box. Or I can hold my breath till Tivo is part of my cable company's options.

Amazon Apologizes But Still Has A Fight On Its Hands

Amazon may have apologized last week for pulling off of its Kindle versions of 1984 without notice, but it faces new competition and customer reaction. "A growing number of civil libertarians and customer advocates wants Amazon to fundamentally alter its method for selling Kindle books, lest it be forced to one day change or recall books, perhaps by a judge ruling in a defamation case — or by a government deciding a particular work is politically damaging or embarrassing." Will other content providers try the same thing, looking inside our digital devices and deciding whether we can keep something or not, no matter if it is owned legally or illegally. Doesn't the right of privacy matter in a democracy. Amazon may have admitted its stupidity, but it still demonstrates that a bigger problem exists.

The key concept here is D.R.M. or digital rights management, and it ultimately affects all kinds of digital content, print, video, and audio. It sets security measures that can limit how content can be owned, viewed, copied, and shared. "D.R.M. has created a new dynamic between consumers and the vendors of digital media like books and movies. People do not so much own, but rent this media. And the rental agreement can be breached by the manufacturer at any time, sometime with little or no notice." Where in printed form, a book can be handed over to a friend to read after you finished with it; with D.R.M. controls, that same digital book may be limited to the device it was sent to. More profit, no sharing, no illegal reselling.

And now, Amazon faces a new battle from Barnes and Noble and their Plastic Logic E-Book reader. How will this competition be received by current and potential customers and how will B&N address these issues? D.R.M. is a major issue that will affect all digital content; these issues will need to be more fully addressed by other content distributors as well.

Hulu Could Charge Subscriptions

News Corp isn't the only company looking at turning free content into pay. Disney's CEO Bpb Iger also thinks Hulu should become a pay site. "In addition, Iger said at a conference presented by Fortune magazine, Disney is developing its own Web site that would make available movies, TV shows and games to consumers who pay for a subscription, according to an Associated Press report."

Will the consumer accept or will they find technological ways around this. And once you give something away, will consumers be willing to change to payments; will they see the value. Or will it simply make viewers that much more driven to find new, "cheaper", viewership options. Perhaps it will ultimately force consumers to maintain their cable subscription in order to receive their video on other platforms.

News Corp Plans to Charge for Content

It doesn't pay to give it away for free and so News Corp thinks it can start charging for its content. But will the consumer pay? It seems that so much of the web is duplicative so that there are numerous ways to get what you need. If one site requires payment and another is free, it seems obvious which one the consumer will pick. What is not so obvious is how to make content exclusive and how to market its value in such a way that consumers also value it. Not so easy. The New York Times hopes it can, but we can only wait and see if they have the marketing skills to pull it off. To my knowledge, the Wall Street Journal, a News Corp business, has successfully built a fee based model for its business news, but it never gave it away to begin with. I am not sure that model is so easy to duplicate with its other web sites. Still, "News Corp. plans to increase revenue at its Internet businesses by charging customers for news and entertainment, according to Jonathan Miller, the company’s chief digital officer."

Record 589 Million Views Served, Up 15% Year Over Year

VOD views on a month over month basis are soaring! On demand views for June 2008 grew by 15% for June 2009. "For 2008, operators served 3.8 billion VOD orders (excluding adult programming), a year-over-year increase of 28%, according to Rentrak's annual report." This data from Rentrak represents data from the top cable operators covering over 70 million digital cable set-top boxes. Viewers love VOD!!!

It would also be valuable to get the research on unique user growth. Are more viewers using VOD or are the current users simply watching more VOD. And what the average number of titles viewed per set top box is and how much that is rising too. "This June, subscribers viewed an average of 16.5 minutes of VOD per day per active unique set-top box, up 10% from the previous month. Free VOD children's content had its best month of the year, with 106 million views, a 7% increase over May." I would expect to see a noticeable bump in new usage although there still remains a significant portion of the population hesitant to use VOD, especially on a transactional basis, as opposed to free on demand.

Comcast Teams With RealNetworks For Web Games

Can't get enough games, well more is on the way. Comcast is adding games through its internet portal as well. "Through the partnership with RealNetworks' RealGames division, Comcast.net users can download trial versions or buy full-version games. In addition, the site offers a subscription service, GamePass, that allows customers to purchase games for $6.99 per month." As a fan of casual gaming, it could be fun; but with so many other web sites and social networks offering gaming as well, I wonder how differentiated these games are from those. And would exclusivity on a game through a particular IP provider be another differentiation tool in the fight for customers. "Comcast also said it is using a tool from marketing-technology company Bunchball to provide broadband customers with "reward-based activities" that include earning points through game play and redeeming them for virtual goods." Are real rewards and prizes, like free movie rentals and premium discounts, the way to go. It might just further incent me to remain loyal.

Kindle and Amazon Have Got Some Competition

Barnes and Noble don't want to go down without a fight. As digital content becomes more accepted, book stores, like record stores before them will go away. To stay in business, Barnes and Noble needs to adapt to a changing business model. And you can't let Amazon and Kindle get all the book business. "The book retail giant just announced its new e-book strategy. It includes:
An e-book store with 700,000 titles and pricing competitive to Amazon's, including $9.99 bestsellers. An exclusive deal to provide e-books for the forthcoming Plastic Logic e-book reader, which will debut early next year. More than 500,000 public domain books from Google, which are free."

Will they beat out Kindle; hard to say. The Kindle name has gotten more awareness and buzz, both good and bad. Having not played with either device, it is hard to say which will come out stronger. My neighbor has a Kindle and raves about it. In fact, he was thrilled to show it off except he forgot to turn off the wireless and he drained the battery. No reading material for him at the pool! Still, it holds a lot of books and newspapers in a small package. I still believe that Apple should enter the fray. Their experience with the iPod and iTunes and their App store give them a competitive advantage to build and distribute a device that offers reading content. I hope they announce one soon!

The Price Of Connectivity - Big Brother Retains Control

Don't be mistake, this move by Amazon is only the tip of the iceberg. And how ironic that it affected a George Orwell novel, 1984, that literally talks about Big Brother. While Amazon may be all apologetic and thinking that they were protecting the rights of the copyright holder, their ability to remotely delete content from their device, without notice, and without customer knowledge, spells bad news. It demonstrates first hand the ability of a big company to take information away from the masses, to control what we can and can't own, and to take a piece of our privacy away, one deletion at a time.

"Amazon appears to have deleted other purchased e-books from Kindles recently. Customers commenting on Web forums reported the disappearance of digital editions of the Harry Potter books and the novels of Ayn Rand over similar issues." Without our knowledge and without our consent, it demonstrate oh too well that Big Brother is not only watching what we do, but controlling what we can or can't have. How will this affect Kindle sales and what will the on-going buzz be in the digital community. I'm eager to know how outraged the public will become. Or apathetic. And that is problematic, too!

Widgets And Web Video Added To Verizon’s FiOS TV

I am not a FIOS customer, but I do get the appeal of connecting the web to the TV. In my search for a big screen HDTV, one option that intrigues me is internet access. Some sets offer similar connectivity, others do not. And as a feature on a TV set, I wonder if I don't, will my HDTV purchase be outdated the moment I bring it home. As a cable customer, I have yet to hear what they are planning to do to improve the set top box and the user experience. Verizon/FIOS may have figured it out quicker. "Verizon’s FiOS TV is about to start overflowing with widgets. According to a recent press release, the company will be launching their Widget Bazaar later this month with a few free applications including Facebook, Twitter, and ESPN’s Fantasy Football widget." While they do not yet talk about downloading and viewing web video on the TV, it seems like a natural next step. Do consumers want to converge the web/TV experience or will it inevitable stay two screen but with interactivity associated with each device to the other. or a combination of both. That is certainly the direction it is taking.

1.5 Million Still Don't Have Digital TV

A month later and there are still over 1 and a half million people without TV, and the question is, do they miss it. Is this number entirely accurate? Do they even care? "According to Nielsen, 1.5 million TV households, or 1.3% of the country, remain unready for DTV as of July 12, a month after the June 12 transition date." It certainly is far less than the 5 million number that some thought would be without TV. Still, I wonder why those people have chosen not to get a DTV converter or access via cable, telco, or satellite. Perhaps they know more than we think.

VOD Growing, But Lags Behind DVR Use

VOD has incredible potential to outshine the DVR because it is a reactive device, not a proactive one. There is no advance decision to record a program so as to not miss it. The show or movie is simply available. The challenge, and the reason that VOD has not grown faster, is that the functionality and user friendly buttons are arcane. The tree and branch approach to access programming, the latency for buttons to activate, the occasional drop off, forcing the viewer to restart the search, all hurt its acceptance and appeal. "There are far too many buttons to push, and if you’re chugging through season 4 of Entourage, you have to navigate back and forth between menus in an irritating fashion." Until controls, speed, and userability improves, VOD will continue to lag behind Tivo and the DVR.

UPDATE - iPhone App Store Downloads Cross 1.5 Billion In First Year

Per Silicon Alley..."More than 1.5 billion applications were downloaded from Apple's (AAPL) iPhone App Store in one year, the company said today.

Calling it "the largest applications store in the world," Apple said its app store currently has more than 65,000 apps and 100,000 developers in its iPhone Developer Program.

Apple also said it has shipped more than 40 million devices -- iPod Touches and iPhones -- that use the app store."

Amazing!

MySpace To Become An Entertainment Portal

As Facebook has been clobbering My Space, the suits have come up with a way to differentiate My Space as an entertainment portal. They have hired the head of Sling Media, Jason Hirschhorn, and hope that he can bring back the magic. "That experience should help him figure out how to shoehorn Fox's entertainment assets, MySpace Music, and Hulu content into an entertainment portal people will actually want to use." But can it be done?

My Space seems to still have a core audience in the music space, including singers and bands promoting their own songs and albums. Does that home grown content fly in the world of more professionally produced material or does it augment the value of the community it serves?

I think the one thing these video portal sites lack is that ability to easily search by any number of key words and to recommend based on personal preferences. Viewers, when faced with too many choices, some times choose none of the above. A site that is perceived as delivering an expertise and simplified approach across an aggregate of content may just win over a number of viewers. Otherwise, these individual sites will simply be bookmarked and viewed without a My Space portal approach.

Apple's iPhone App Store The Hottest Gaming Platform

Apple certainly bested Microsoft and Google when it came to the rise of the iPhone and its App store. Obviously learning from its success with iTunes, Apple recognized that hardware sales is nice, coupling it with easy to download content is gold! And others have quickly tried to duplicate this model. Apple remains number 1.

My son recently upgraded his Nintendo DS to a DSi and while I am not one to use it, it needed setup and authorized access to our wireless home network. And then I saw that there is a Nintendo store capable of downloading games to his device. And yet his preference remains to go to Game Stop or Target to pick up new games. So how does Nintendo downloads compare to the Apple App Store; I am not quite sure. And is the iPhone and iPod really trying to compete with the DS. The former seems much more for casual gamers as time wasters; the latter device for more serious gaming. "Apple's platform has attracted heavyweight gaming shops such as Electronic Arts (ERTS), Gameloft, and Sega. And it has allowed important new studios to blossom from scratch, such as Ngmoco, whose Rolando franchise -- including the new Rolando 2 -- may still be the best example of iPhone-unique gameplay, via the phone's multi-touch display and motion sensor." Is Apple looking to push itself further down this path or will Nintendo see this as an opportunity to add phone capabilities to its hardware?

I have yet upgraded my iPod to the new iTouch nor have I purchased an iPhone. For me, its primary use, as a phone, is less appealing. I was once on the AT&T network and converted to Verizon because of better coverage and less dropped calls. And I have heard from other iPhone users that the phone capability still remains weak. Until Apple allows for iPhone to work in the Verizon network, I cannot yet make the switch. Still I appreciate its success and may just upgrade my iPod soon enough.

The success of the Apple App Store goes directly to understanding the consumer need for ease of use, inexpensive pricing, and ergonomic appeal. Essentially they have made it so easy that anyone can master it. And that is their greatest achievement.

Starz To Join Comcast's On-Demand Online Test

Comcast has come up with its own strategy to keep its customers happy in a multiplatform world. Partnering with cable programmers like Starz to allow viewing of content on different screens. "Starz Entertainment is in the mix for Comcast's On-Demand Online test, set to launch this month, with the premium programmer planning to initially make 300 movies and other original programming available through Comcast.net and Fancast.com to Starz subscribers for no additional charge." Starz joins other programmers like TNT, AMC, and Scripps to bring VOD like content to the PC.

It certainly provides additive value to the cable subscription. My biggest question is how do I watch when I am "on the road". Certainly I would rather watch these shows and movies on my big TV screen so having the choice to watch on a PC inside my house does little to whet my appetite. The ability to take my subscription on the go, whether on vacation or even in the office is much more appealing. How Comcast can authenticate me as a subscriber outside their wired garden will deem whether this strategy succeeds or fails. "Comcast will randomly select the 5,000 customers from across the U.S. in the coming weeks, with a focus on testing the company's authentication technology. The service will use a log-on system for streaming content and, in the future, will allow for download content to go." We will have to wait and see how well this works.

Should it prove successful, it could do what Hulu and TV.com cannot; keep cable subscribers from dropping their service to become a broadband only home.

Will Project Canoe Succeed or Fail

Came across this opinion and thought it was worth sharing. According to Phil Leigh, Senior Analyst at Inside Digital Media, Project Canoe is doomed for failure.



He argues that the web is better suited for interactive video and cable is late to the game. he also suggests that cable programmers are less than thrilled to support the cable operator's attempt at targeted advertising, as it potentially could hurt their own advertising sales activities. It is ultimately up to Project Canoe to disprove their critics.

Cable programmers have enjoyed a healthy license fee from cable operators and would be hard pressed to pursue a web based distribution strategy and risk the loss of "cable dollars for digital pennies." The cable financial model requires a two tier revenue strategy of subscription and advertising. As long as that remains healthy, programming will mainly be served through the cable box.

Best Buy And TiVo Partner

Great to read that a consumer electronics chain and a consumer electronics product are partnering. Why not partner with the store consumers use to purchase their big screen TV. "Best Buy will aggressively push TiVo's products in its stores and TiVo will let Best Buy advertise its in-store products and services to Tivo subscribers. Tivo also plans to give its subscribers access to Best Buy's Napster on their TV screens." Except consumers don't tend to buy digital video recorders.

Most consumers expect to get a DVR inside their cable set top box. As more channels become digitized and scrambled, the only way to get these channels is through a box. And how often do you see your local cable operator touting their cable cards so your TV or Tivo could work WITHOUT their box. Probably not. So while these partnerships are nice, the real return will come when Tivo partners with more cable operators. Its current partnership with Comcast has yielded an extremely slow rollout. Cablevision should soon be pushing a network DVR approach. As for the other cable companies; well, it's time for Tivo to close more of these partnerships.

Until then, or until more consumers are aware of the cablecard technology to bypass a cable set top box, I don't expect much to come from this Best Buy Tivo partnership.

Google Shouldn't Become A For Profit Library

Yes the world has gone digital and yes, that means that books and newspapers are also being served in that format. But, Google's plan to digitize every book and serve them to the public for a fee, may not sit well with the owners of that content. And while a settlement was reached four years ago between Google and publishers, the Justice Department believes there is more than meets the eye. "In a letter to the federal judge charged with reviewing the settlement, the Justice Department said it was reviewing concerns that the agreement could violate the Sherman Antitrust Act."

My kids each have a library card, although frankly we spend more time at the local Barnes and Noble than at our public library. Still, I view the library as a public institution that shouldn't be corrupted by big business. It would be one thing if this was a project done by libraries across the nation, another when done by Google with a profit motive in mind. Literature should be preserved and saved in any relevant form, and available for the public at large. Our forefathers created the Library as a means to open this access to all.

"Antitrust experts said the letter was the latest indication that the Justice Department is seriously examining complaints that the agreement would grant Google the exclusive right to profit from millions of so-called 'orphan works,' books that are out of print and whose authors or rights holders are unknown or cannot be found." How will it play out; more to come this Fall.

TiVo 'Confident' Patent Victory Over Dish Will Be Upheld

When is a victory not a victory; it seems when it involves the Tivo - Dish feud. Each time a court finds in favor of Tivo that Dish illegally used its patented technology, another court overturns on appeal, and forces another round in our judicial system. And who is getting rich in this drama, mainly the lawyers. Until the "final" ruling, Tivo will have to wait for its payout. Yes, I believe that Tivo is on the right side of this argument. And Tivo is confident that it will continue to come out on top.

"'We are confident that the District Court judge's thorough and well-reasoned decision finding EchoStar in contempt of court for violating the injunction and awarding further damages will be upheld once the Federal Circuit has the opportunity to review the merits of the case,' TiVo said in a statement released Thursday. 'The Court of Appeals stayed the District Court's order the previous time this case was heard on appeal and ultimately affirmed the judgment against EchoStar.'" Until then, Dish will still be able to use their DVRs. I say to Dish, pay Tivo and agree to a formal relationship. At the end, your customers will get a better DVR experience!

Operators To Miss Tru2way Deadline

Today is July 1 and without much fanfare, cable operators have acknowledged that they are not making today's deadline for tru2way delivery. Consumer electronic manufacturers seem to not be making a big deal although most new TV sets are being made with internet capabilities. Whether they work with the cable operator or not, these sets will be capable of downloading web videos, software, sports scores etc. The added appeal of two way must wait a little longer. "The tru2way specification, based on the Java programming language, lets cable operators deliver interactive TV applications and video programming to any compatible device, such as a set-top box or TV."

As TVs have gone all digital, cable companies have used the opportunity to convert analog signals to digital and require a cable box on TVs to get certain channels. In my home, those channels include TCM, MSNBC, AMC, Cartoon, and others. I expect soon that more will be added to the list. I need to add a box to every set. But I don't need nor do I want a big box in every room. I recently received a DTA device, but learned that while it gave me some channels, it wouldn't give me all my digital channels; Hallmark, yes, Disney or HBO, no. I am now waiting for a slightly bigger box that I am told can still "hide' behind my TV and not take up much space. This new box should have more capabilities.

I look forward to the day that I can work a TV without a box and still "talk" with my computer and other devices and provide complete access to all channels. The key for me is that it can be done without a box tethered to the TV set.

Hopefully, Tru2way technology is the first step to a home solution and interactivity. "The Consumer Electronics Association, which has continuously lobbied the Federal Communications Commission to implement rules requiring cable to open access to retail devices, declined to comment on the tru2way deadline. CEA 'did not sign on to this agreement and therefore we don't want to offer a comment,' said spokeswoman Meghan Henning." If Tru2way doesn't succeed, perhaps the CEA will.