Sirius XM to Go Global?

It seems that John Malone's Liberty investment in Sirius XM brings new revenue opportunities to the business model. Liberty's recent rescue of another international satellite company, could enable Sirius to expand around the world. "...speculation has run rampant that perhaps Sirius and WorldSpace could work to bring Sirius XM's programming abroad." Expanding its reach worldwide could significantly impact usage, provided that the programming offered is relevant to the marketplace. More investment in content would be necessary to capture those consumers.

As Sirius' stock price hovers around the dollar mark, it will be interesting to note the effect this news may have on the price. Sirius needs a boost, in an ever struggling economic market. Perhaps other sources need to be considered. Can anyone say Apple iPad app?

Can Tivo Survive As A Stand Alone Box?

Tivo announced its first quarter results and the news was plainly bad. Its deal with Comcast has not blossomed. Other cable companies have yet to license their technology. The courts stayed the Dish ruling and other patent fights are years away from resolution. So what is a company with a great product suppose to do?

Well one deal announced is with best Buy, but surprise, it is not to about its DVR capabilities. "The latest adopter is Best Buy, which will add the TiVo platform to its Insignia house brand of HDTVs at an unspecified date. (The exact phrase is “development is underway.”) Unfortunately, the press release announcing the deal explicitly states that the sets will be using the 'latest TiVo non-DVR software and advanced television service.'”

Will this business model offset the core revenue losses? Will Comcast, Time Warner and others recognize the value of the Tivo software and embrace it into the box? Doubtful. Most likely, they will do an end around. Use web software on mobile and wireless devices like the iPad, laptop, and mobile phone to provide a remote scheduling process that provides all the flexibility, ergonomics, and ease of a web page and then talk to the headend which in turn will program the home's DVR box. Search, recommendations, highlights, and colorful marketing on devices we have made invaluable in the home. Then the choice simply has to be "programmed" to record at the head end and updated in the home machine. And so no need to embrace the Tivo technology at the home set top box.

Can Tivo adapt to this type of future. Can they write the software that runs the engine at the headend. That it seems could be the next home run.

Is Facebook Losing its Luster?

Yes, Facebook dominates the social network scene. Yes, every marketing plan seems to include a social media component involving Facebook. And yes, Facebook got Betty White to host SNL. But is Facebook jumping the shark? Are consumers growing tired of their information being shared too easily. Younger consumers don't seem to mind sharing; older consumers are more wary. Some love posting every thing they do, including what they ate for breakfast, others act more as voyeurs of their "friends" lives.

I believe I have grown my friends list too quickly. Some are not really my friends, more acquaintances. Do they really want to see pictures of my kids? From Zuckerberg's WSJ Op Ed piece, "The challenge is how a network like ours facilitates sharing and innovation, offers control and choice, and makes this experience easy for everyone. These are issues we think about all the time. Whenever we make a change, we try to apply the lessons we've learned along the way. The biggest message we have heard recently is that people want easier control over their information." As Facebook simplifies its privacy features, perhaps it will allow us the opportunity to segment our friends so we can determine how "friendly" we want to be with each and which posts get seen by different segments of friends. It is time for a change. Consumers should get more control back into their lives.

Are We Watching The End Of Broadcast Television?

GE is selling NBC to Comcast and now there is speculation that ABC and CBS are also for sale. Obviously everything is for sale, but the greater question may be what does a potential sale indicate. "Among bankers, CBS appears to be garnering the most attention amid signs (Sumner) Redstone these days isn't dismissing out of hand the notion of selling CBS." As cable companies begin to pay retransmission fees for carriage, the cash flow looks strong. At the same time, ratings for broadcast erode as the cable model becomes more efficient. Will we be looking back and sale that the GE sale of NBC was the beginning of the end for broadcast television?

"While audiences will still show up in droves for tentpole events like the Super Bowl or an awards show, the increased popularity of cable is eating into broadcast networks' bottom line, which is further hampered by the high costs associated with producing series, steep sports-rights fees and expenses tied to owning a news operation. Also weighing on broadcasters is their ownership of local TV stations, which have been hit hard by the ad slowdown. Experts said the networks' real money-making opportunities lie in ancillary businesses, such as international syndication, DVDs and other merchandise, and ownership of a network isn't necessary to reap those benefits." So one day soon, the Super Bowl like other shows before it will move from broadcast to cable to potentially PPV. Affiliates will turn into local cable channels and national broadcast channels will be a distant memory.

Another Reason For Cable To Worry - Google TV

Truthfully, you don't need Google to connect to web content. But as more entrants develop tools to bypass cable and bring easier controls and choice through the web to the TV set, why bother with cable.

Today's TV sets are being manufactured with web connections, so are ancillary devices like blu-rays, game consoles, Apple TV, and others. One thing that is not being built into these devices, CableCards, or any other authorization device to unscramble cable programming. As consumers grow tired of cable company's iron grip on access, they will move toward the web. Will Google TV be the answer. Doesn't seem that revolutionary based on the above clip. But the fact is that the solution is in the web and cable companies must do a better job of embracing it; else, the consumer will cut the cord.

Cable Beware, Another Reason To Cut The Cord

From Cynopsis:

"Cord cutters will delight in the new Clicker.tv site unveiled at Google's I/O conference yesterday. It's similar to the online Clicker service, which provides cool search and discovery tools such as highlighting "headlining" and "trending" TV shows, movies, web shows and news clips that are catching fire online. But this version leverages the HTML5 video format and streamlines the interface (much bigger icons) to make it perfect for browsing through a PC-connected large screen TV. Navigate using keyboard arrows or a configured remote to find just about any video online. The Clicker engine does a great job of categorizing some 650,000 (legal) episodes of 10,000 shows. It's designed with Google's Chrome web browser in mind (hence the I/O demo), but it also works with other browsers and thankfully doesn't require any troublesome plugins to work. Now what's needed are more customization features and social recommendation tools that have become a great differentiator for Boxee from your boring old cable guide. After all, when it comes to TV, too much is never enough, notes Clicker CEO Jim Lanzone. "As Americans we already watch 37 hours of TV a week. I have no idea how we're going to fit more viewing hours into each week, but we're going to be given every possible freaking opportunity to try!," he writes in a blog post unveiling Clicker.tv."

As consumers look to other sources for TV programming, Clicker seems to offer the popular shows from Fox, NBC, Comedy Central, and others. On the computer and available whenever and wherever you want. With the ability to connect PCs to TVs, these same shows can be seen on big screens or small. Why are they cutting cable's cord? Why buy the cow if the milk is free.

Forget The Triple Play, It's Now The Quad Play

What do the telcos have that the cable companies need, a cellular leg. "AT&T is completing the grand slam with a price break of up to $60 per month on a four-service bundle -- with U-verse TV, phone, Internet and wireless phone -- which the telco emphasized most cable providers can't match." Not really that revolutionary; Verizon has been offering the same packaging with Fios. And cable has shown that packaging of services that demonstrates savings to the consumer is a big winner. And as consumers drop their wired line for a purely wireless phone, the telcos have the advantage. So what is cable to do?

One solution in the works is building out wireless inside their footprint so that consumers can remain connected away from the home. As mobile devices connect through wireless hot spots, as opposed to cellular, cable could offer phones that bring all its content as well as communication to the consumer. Skype represents one such avenue. And it enables the user to offer video capability with the phone call if they choose.

So quad play, like triple play may soon be a misnomer. In the end, consumers want a wire and wireless solution for the home and on the road. Show the consumer that complete connection and own the marketplace.

Another Reason For Cable Companies To Worry

Consumers aren't happy with their cable companies. This relationship is eerily reminiscent of the 1970's when consumers hated the phone company. Eventually it led to Ma Bell's break up and a more competitive telephone landscape. Consumers seem to dislike their cable company just as much. And younger consumers are leaving cable for alternatives.

Well UFC has given another reason to look beyond cable for programming. "Ultimate Fighting Championship announced a multiyear deal with Internet set-top maker Roku to feature all major UFC events, starting with UFC 114: Rampage vs. Evans on May 29.... Roku, whose Internet set-tops start at $80 for standard-definition and $100 for HD, also provides access to streaming-video services from Netflix, MLB.tv and Amazon Video On Demand."

Through broadband connections, content can flow from other providers. And competition can hopefully bring more competitive pricing. As Roku and others acquire more content, cable companies must realize that the broadband pipe is bother their friend and their foe. Pricing, content differentiation, ergonomic controls, and consumer satisfaction will all be needed to keep the customer connected.

Here Come The Broadcast and Cable Upfronts

Remember last year when NBC said they were no longer going to do an upfront; rather , they would visit each agency and personally present to them. Well this year it is out with the new and back with the old. The upfronts are here. And with jay Leno back in the Tonight Show, NBC has figured out another way to piss off its audience and New York City. The cancellation of Law and Order, one season shy of tying Gunsmoke, is making news. In addition it is being replace with L&O, Los Angeles. Now New York actors have lost both soaps as a means to get work and L&O. Wow!

So which network will make the biggest buzz and can broadcast nets beat their cable siblings in ratings. It used to matter when they were owned by different companies. Less so today. Will they learn how to embrace technology and make social networking work in their favor? Or will they continue to forget that DVRs and VOD can be their friend and Facebook can grow ratings.

The Upfronts are here. Like a horse race, it will be fun to watch which shows win and which are cancelled early.

Courts Give Tivo Another Delay With Dish

Why are the courts so backed up? How many times can a court order be affirmed and then reviewed. "The United States Court of Appeals for the Federal Circuit in Washington gave Dish a chance for a better outcome in the litigation, which it has consistently lost to TiVo." What will it take for Dish to finally pay Tivo for its DVR technology. And when will Dish and cable operators finally incorporate Tivo's DVR inside their cable box.

For now, Tivo must continue to fight Dish in a court of law and not partner with them in the entertainment landscape. And while the lawyers get rich, these two companies must spend their monies on court challenges and not on innovation and marketing. And while Dish claims that their DVR does not infringe, the courts have disagreed and told Dish to pay up. Until yesterday. And so it goes on and on.

Dish Network faces DVR shutdown, Thanks to Tivo

Tivo won the DVR and Dish must pay the fighter. "Dish Network Corp. reported a 26 percent drop in first-quarter net income as the satellite TV company stepped up promotions to reel in customers." In an even bigger move, Dish may be forced to shut down its DVRs to customers to comply with the patent infringement order. If they do, customers will be extremely unhappy. So what should Dish do? Pay the money, license Tivo, buy Tivo? Currently more appeals have been written but is this a fight of egos. Is Dish simply throwing good money after bad. Isn't it best to move forward and find a relationship with Tivo that works. ANd if they don't could another court loss kill Dish.

FCC Sees Broadband As A Regulated Utility

Should broadband access be treated as a utility? It may provide equality of content on the web, but at what cost. "The Open Internet Coalition, which includes Amazon.com Inc., Google Inc., and EBay Inc. applauded the approach because it will “preserve a level playing field for all participants,” the group wrote in a letter addressed to Genachowski today. Reclassifying Internet services could subject the cable operators to regulations including 'fair and reasonable pricing' and the filing of 'tariffs' ahead of all pricing changes, Moffett (Craig Moffett, an analyst with Sanford C. Bernstein & Co. in New York) said in a report. Moffett calls the action 'the nuclear option.'" But is it the answer.

I propose pushing more competition as a goal to assure equal access to content and fair pricing. Encourage and enable other companies to offer broadband access to the home, thus competing with cable and phone's grip. Lower the barriers of entry and turn the industry from oligopoly to a more open marketplace. Through both wire and wireless, broadband access should be easy to get and the choices of provider larger. Then you won't need to call it a utility and require more government regulation. An open economy is a stronger economy.

FCC To Turn Broadband Into a Utility

How much was your water bill last month? Your gas? Your Electric? Your Broadband? That certainly may become the next regulated service. And with it, a move from one month price to per kb consumed. Read your email, that's 2 kb, download a song 10 kb, a movie 10,000 kb. Watch the charges grow. That pipe to your home may have a counter attached and charge per byte.

Quite a slippery slope. That is not what the FCC says will happen though. "But Julius Genachowski, the F.C.C. chairman, said the approach would specifically forbid the commission from regulating rates charged by telephone and cable companies for Internet service and would not allow the commission to regulate Internet content, services, applications or electronic commerce sites." But isn't that what cable companies want to do, charge for usage.

And what about competition. Will other utilities be able to bring broadband to consumers as well. Could I decide whether to get my broadband service from my cable company, electric, gas, or even water company. Will the FCC encourage more competition in this space to maintain consumer friendly pricing. Will further regulation truly help the consumer or hurt us.

CBS News and CNN May Share Resources

The economy is slowly emerging and deals are in the air. Literally. Comcast and NBC, Continental and United. And while this news of CBS and CNN sharing resources is not technically a merger, it makes us wonder if there could soon be one. Cost savings and economies of scale are not new and as revenues have yet to bounce back, cost cutting keeps profits up. It is also the scond pairing of two media giants. First, just months ago was that CBS Sports and Turner were sharing the NCAA Basketball Tournament. Today, that they want to share news personnel and stories. "CBS could presumably realize considerable cost savings if a deal enabled the network to rely on more of CNN’s extensive news-gathering resources." And Turner gets similar savings and more awareness of its brands as well.

So what is stopping CNN and Turner and their corporate parent, Time Warner from buying CBS. Disney has ABC, NBC Universal has NBC, why shouldn't CBS have a corporate parent with multiple cable networks as well as a Hollywood studio. It seems like the right fit of content. And since Time Warner is now separated from its cable distribution company, none of the issues that face the merger of NBC with Comcast. "CBS and Time Warner are partners in several other areas of the television business. They co-own the part-time broadcast network CW (the C is for CBS, the W is for Warner), and the Warner Brothers television studio supplies CBS with a host of its top-rated prime-time shows". A merger would also force the reconciliation of union and non-union news workers that is described in the article. And it establishes control by one owner.

In this age of cost cutting, a combined news team does make sense; a full fledged merger of the two organizations even more so. Would Sumner Redstone agree to sell? Who knows. Would he consider buying...

Consumers Cutting Cable's Cord

Hey cable company, see that tree a mile in front of you, but in your path. If you don't start to act, you will run into it. Hey cable company see that tree, a half a mile in front of you. If you don't react, you'll plow into it. So how come the cable companies are driving smack down into that tree. As their revenues rise, their digital customer base appears to grow, and their average revenue per subscriber increases (ARPU), the cable companies watch as their stock prices rise. It seems all is well.

But trouble is indeed looming on the horizon. "One in eight Americans will cancel or cutback their pay TV service -- either cable or satellite -- in the next year, because it's getting so expensive, according to a major new study." In fact, basic subscriber numbers have consistently been dropping every quarter for cable. Some argue that this group is not spending much to begin with; dropping them makes their ARPU rise. Some are going to the competitors, others are dropping cable altogether.

The rise of mobile devices, iPad announced they sold their millionth unit already, along with wireless, signifies a change in direction for consumers. And while cable companies may need to up the price of broadband to offset the loss of cable, wireless opportunities should bring new competition to the market. I foresee utility companies looking at opportunities to easily expand their reach. Electric and gas companies could tap into this space and provide wireless coverage to entire towns.

As that tree finally gets right in front of cable's path, it may just prove too late. Customers will seek cheaper alternatives from new broadband sources. Today it may be 1 in 8, tomorrow 1 in 3. Cable companies must better adapt to TV Anywhere. It is not authenticating a different signal; it is allowing the home's set top box (or server)act as the gateway to multiple devices, wired and wireless. let the cable box talk to the mobile device, the iPad, the laptop, etc. Use technology like Slingbox and Tivo and others to your advantage. The time to act is now; else, you will be reacting too late to the tree and regardless of what you do, there will be a collision.