AOL: It's Content Not The Platform

AOL has separated from the mother ship. It is separated from Time Warner and on its own. And while Time Warner also separated its content from its distribution platform, AOL's content wasn't deemed synergistic to Time Warner's growth plans. On its own, AOL is in the midst of building and buying content companies to own a robust line of online content. The latest is Techcrunch.

"TechCrunch and its associated properties and conferences will join the AOL Technology Network while retaining their editorial independence, further bolstering AOL’s position as one of the world’s leading providers of high-quality, tech-oriented content." AOL sees a world of online news and information and a revenue stream derived through the ad platform. But have they learned anything from their time with a cable company? Will they look to build out a walled garden of subscription services, building a license fee model (like the Premium Hulu model) to capture a secondary revenue stream? Will that be one of their next announcements?

I like the commitment that AOL has taken. I'm sure a number of folks are reading content pages and have no clue they are owned by AOL. Whether the corporate name needs to be more visible to the consumer or that synergies can push those consumers from one AOL page to another is uncertain. What is certain is that AOL has become a leaner, meaner fighting machine, hoping to once again become the leader in an ever changing, fast moving industry.

Blackbook To Be Called Playbook

The R.I.M. Tablet officially has a name and it is called the Playbook. No, not like an NFL Playbook, although the sports connection may have been intentional. It's intention to get in front of the Apple iPad with a tablet positioned to attract the business user. "Unlike the most expensive iPads, the PlayBook cannot connect directly to cellular networks. Users will be able, however, to connect to the Internet through a wireless Bluetooth connection to their BlackBerrys or by using Wi-Fi networks." At the same time, Apple is expanding the distribution through retail deals with Target and others.

The key for each is software and content that can run on their respective device. The Playbook will be Flash compatible; the iPad currently is not. In addition, "Amazon said that it would introduce a Kindle e-book application for the PlayBook." It's still Apple's fight to lose, but competition is what keeps innovation advancing.

Theatrical Movies Coming Even Quicker To Your Home

If a family of four wants to go to the movies, admission alone could be $40 or more. Add popcorn, candy, and drinks and that amount could double. We have become a society that can not wait; instant gratification is our mantra. And so the movie windows, the times when a film moves from one distribution platform to another, has shortened. We once had to wait a year to watch a movie go from theater to DVD. But the rise of on demand and the demise of DVD sales has shortened that time period. And now movies are coming to On Demand even sooner.

"Right now, theaters get an exclusive period — 120 days, on average — to serve up new movies. Then the releases appear on television video-on-demand services at a price of about $4.99. Armed with the new copy-blocking technology, studios want to offer new movies on video-on-demand services about 45 days after they arrive in theaters, for a premium price of $24.99." So that family of four can avoid the theater and not wait many months to watch the film. For a higher price, access can come quicker. For the family it translates to a savings of $15 and more when you add refreshments. For studios, it brings a greater share of the revenue split. And if the consumer still thinks the cost to watch is too high, they can wait for the next distribution window, when the On Demand price point drops back down to $5.

It will also mean shorter windows for movies staying in theaters. Why should theater owners show a film at the same time it is accessible at a lower price at home. Movies will rotate through theater screens quickly. Theater owners must improve their business strategy and do more to improve their business. 3D has proved successful. Better seats, better food, better overall experience is another. Cleanliness would also help. Customers want to leave their home for a night out. A night at the movies will now need t be more special to keep the customer coming back for more. Otherwise, theatrical dollars will fall and On Demand dollars will keep rising.

New Content Challenging Old Content

It must be thirty years when the cry of "I want my MTV" first began as the battle cry for consumers pushing cable TV over broadcast. The rise of cable programming has deeply affected broadcast operations and ratings. Finally, the only thing left for broadcast to do was to buy out these cable networks. Why is NBC and ABC healthy - their sister programming and cable channels.

Well nothing lasts forever and the evolution continues with the rise of non cable, online programming. Now we have an upstart going after a cable channel directly. "Vevo, the Web music-video service backed by major labels Universal, Sony and EMI, is moving onto MTV's television turf. As part of a plan to make its music-themed content as widely viewed as possible, Vevo is working to launch a regular TV network that would compete with MTV's music-video network, MTV Hits." And here is the key distribution move. "While Vevo has no deals with the cable or satellite-TV firms at this stage, it is working closely with Web-enabled TV manufacturers, set-top boxes and other devices."

As TV manufacturers are bypassing the set top box, they are incorporating web enable technology into their screens. Programming without a cable cord. Broadband access yes, cable no. Will Vevo and other succeed. The beauty of cable channels is that they discovered a two-tiered revenue stream that broadcast did not till recently. Subscription license fees and ad revenue. That capital enables expenditure in more expensive and hopefully more desirable programming. Internet programming has yet to capture a license fee model although Hulu is trying with its premium level of service. Vevo may not have high programming costs to start but as they grow, new revenue streams will be a necessity.

Blackpad vs iPad

Obviously, I haven't touched a Blackpad. But I can already tell you why it won't be as successful as the Apple iPad. The App Store. Ones has to look only as far at the success of the iPod to see why. Not only is the device simple to use right out of the box, it has the power of the iTune Store behind it to make it even more powerful. No other mp3 wannabe has come close to emulating the appeal of the device. And market share of the iPod confirms it.

Blackberry's new device faces the same problem. It has nothing to back it up. And as it tries to add features to get ahead of the curve, Apple will undoubtedly get to the market faster with its next generation. The iPad strategy will most likely follow its brother the iPod, with each generation giving us more while the past model is given a price discount to keep it on the market. "The BlackPad reportedly will sport as many as two cameras, with one pointed at the user for videoconferencing. " I'm confident that Apple has already planned for its next generation device to also have a camera.

The good news is that competition will keep Apple hungry, working its magic to bring better devices to the public.

Blockbuster To Declare Bankruptcy

Not verified, but likely, the news that today Blockbuster will announce bankruptcy. The end of the brick and mortar video store. The rise of digital and on demand. Buy the DVD at Target or Walmart or rent it inside the home. And while Netflix has been successfully transitioning itself to digital, Blockbuster found itself too late to the game. Once the leader and now looking like a footnote in history. Is it Chapter 7 or 13, I haven't heard. But with Blockbuster already closing stores, the end is near.

Is this a precursor to other brick and mortar stores where digital replaces hard copy. Should Game Stop be worried? Is Barnes & Noble on its last legs? The rise of new technology does not necessarily harbor the end of another. For B&N, it is the rise of the Nook. Being on top doesn't mean staying on top. The leader must continue to innovate and adapt or like Blockbuster, they will eventually fail.

Cable companies are facing the same threat from digital leading to cord cutting of cable and phone in the home. The same learnings apply. Innovate, adapt, or else.

Smartphones Leading Way to More Media Consumption

Need to check a sports score, go on your phone. Looking for a nearby restaurant idea, go on your phone. Catching up on Facebook, go on your phone. And in my case, blocked from reading personal emails at work, go on your phone. The cell phone is the connection to media and information, wherever and whenever. Convenient, compact, and always with you.

"And this rabid consumption only stands to intensify as second-generation devices become more ubiquitous. According to the study, 24 percent of people now own a web-enabled smartphone, while cellphone ownership has fallen from 81 percent to 65 percent since 2009." Also worth noting, consumption of media is not a zero sum game; that is, it is not simply being moved from one device to another. We are consuming more because it has become effortless to interact wherever we are. And the variety of content online continues to grow.

"Indeed, the barriers between traditional TV, DVR, and video-on-demand are rapidly vanishing. Watching television live still commands 78 percent of the total hours viewed, but almost a quarter of TV viewing today occurs through a mixture of DVR, VOD, and online video -- an increase of 49 percent year-to-year." This is good news for content creators developing valuable content for TV. That content can now being viewed live on TV, on DVR, through on demand, online, and on DVD.

And smartphones are being made better to support our media requirements. The iPhone from Apple took them a quantum leap forward with it's touch pad concept and now other device makers have followed with their own versions. Still, our next hump to overcome remains the power source. Longer battery life will only lead to even more media consumption.

Apple Finding Another Revenue Stream

The Apple iPad/iPhone and iTunes platform was not just smart, it was revolutionary. It has been a game changer in the phone business, music industry and book industry. As it has killed the music store and begun to cripple the book store, Apple has set its sights on its next target, the newsstand. Rather than buy your newspaper subscription from the publisher, you buy your annual subscription through Apple and get accessibility on your iPad and iPhone device. "Publishers are, wisely, worried that Apple's inserting itself as the go-to vendor for publications will make the publishers largely irrelevant, the same way it has made the music companies irrelevant."

Will publishers give up complete control? Will consumers want both print and digital version as they transition consumers. Will digital be the rebirth of the print industry and lead finally to consumers paying again for content and not just reading for free online. iTunes proved that a model can bring consumers back from stealing songs to buying them. Priced competitively with extras that are exclusive inside a walled garden of content, print subscriptions should find their subscription revenue rising.

The timing of new content with the next generation device is typical for Apple. It keeps them on the cutting edge and maintains Apple's leadership position. While Apple has never conquered the PC world with its mac line, despite being a superior product, it has found great success with the ancillary devices that we as consumers are becoming more dependent on. First the phone, then the pad. Apple is making them the must have gadgets for all.

Big Media Threatened By New Media

Scratch, scratch, scratch. Here that sound. That is the sound of streaming media taking away viewers from cable. Is it a new sound; heck no. Radio heard it from TV. Broadcast heard it from cable. And now cable is hearing it from new media. "The report said companies like Netflix were poised to see solid growth as consumers with moderate income switch to its low-cost, subscription streaming service potentially cutting cable service from companies like Comcast Corp (CMCSA.O) and Time Warner Cable (TWC.N)." It is change at its finest and brings new opportunities and new challenges. Internet content from Apple, Amazon, Netflix, My Damn Channel, Next New Networks, and many many others. ESPN.com isn't the only stream in town.

While Netflix sees growth, cable basic subscribers are declining. Right now, cable is watching its current customers either taking on more services or dropping completely. As customers figure out that they don't need digital phone, that they can downgrade their line-up removing premium services and high costing tiers for movie services that are cheaper and just as robust. And as that trend continues, that they can access broadcast still for free and don't need the cable access.

The world is broadband only and access to all of tons of content. The real worry of cable is that the triple play becomes one play again and that cable doesn't get to aggregate content anymore. TV makers are making internet ready TVs and content creators are selling shows to cable, Apple, and others. Cable must act to differentiate itself if it wants to remain competitive.

Disney, Nielsen team on Apple iPad app

Has advanced advertising on the set top box just got burned. Does interactivity on the TV screen matter when a device in your lap better augments the viewing experience. Has the Apple iPad proven itself again, beyond that of an e-reader to become the ultimate TV companion. The answer is yes.

While the show, My Generation, may not be the ultimate in water cooler conversation, it will simply be the future answer to a trivia question on which was the first show that had interactive capabilities. "Users who download the app can multi-task between the TV experience and the iPad, which will display polls, trivia and other content timed to be relevant to what is transpiring in the 'Generation' storylines." Rudimentary to start, but the future capabilities seem endless. I'd love to see what ABC and its sports counterpart, ESPN, do with a live sports game.

So how does it work; how does the iPad app know what is on the screen. To me, this is ingenious. "What Nielsen brings to the table is audio watermarking embedded in the broadcast that signals the iPhone {and iPad} through its microphone to trigger timed content. While the technology has always been used by Nielsen strictly for measurement purposes, a new mobile-friendly upgrade opened a new ancillary business for the company and Digimarc Corp., which is teaming up with Nielsen on what it has dubbed its Media Sync Platform."

Interactivity with programming without clutter on the TV screen. In fact, an iPad app seems less intrusive than on-screen. And so much easier to coordinate what you see on screen with an online purchase. The commerce opportunity could be more easily managed through your iPad than through a set top. As ABC and Apple test the partnership, I'm sure more strategic partnership opportunities will emerge along with more revenue streams. Regardless of when, Apple is certainly making its iPad a must have device in the home.

Cable Losing Shares

The story may be about Time Warner Cable announcing a loss of subscribers in the third quarter, but once the other cable companies announce their numbers, Time Warner will not be alone. But it is the second line in the NY Post story that really made me chuckle, "Poor home sales and the weak economy, which have families pinching pennies, are seen as the culprits." Perhaps there are other reasons at play too!

The cost of cable has risen faster than the inflation rate. Internet connections, whether tethered or wireless, are more valuable to the home than the cable subscription. And customers are tired of paying for more but essentially getting the same content. Customers are tired of exorbitant cable bills. My own relative recently informed me that their family recently cut the cord. A digital antennae, a broadband connection, and a Netflix subscription, and they estimate a savings of over $500/year. Sure, they are watching their pennies, but they are not doing without. They are getting all the content they want and need through alternative sources. It is competition through technology that is hurting the cable distributor. Yes price is a factor; but choice, convenience and ease of use are working against cable too. Technology is building a better user experience to compete with the cable model and at a lower price.

How will cable respond. Unfortunately, broadband pricing will begin to rise, again most likely faster than inflation. Heavier users will be penalized with additional fees. And cable will try to offset the loss of cable subs through higher pricing to their broadband subs. A wrong strategic move. The barriers to entry in wireless appear lower than cable. New competitors will rise and offer blanket coverage in your community and across the US. Content will continue to fill the IP platform and the consumer shift away from a tethered world will only grow.

The signs are there, Time Warner and the other cable companies. Stop blaming the economy and start changing your strategy to adapt to a changing entertainment landscape. Else your leadership position will fall.

Sirius Could Be More Profitable Without Howard

If Howard Stern chooses not to renew his Sirius deal, it may prove more beneficial to Sirius. Despite losing some Stern devotees, "Sirius can build sales with the money it saves on Stern." Or use some of that money to buy other talent needed to keep the content on Sirius looking exclusive and unique.

Whether it is an improving car industry or overall economy, Sirius subscriber numbers have been growing. Per the S&P analyst in this article, Sirius could add 1.1 million customers in 2010 and another 1.4 in 2011. Finally some healthy growth for them. Beyond Stern, Sirius' mix of sports, music, comedy, talk, and more may finally be appealing for consumers. With new cars including Sirius technology, the ease to subscribe is also a major boost. As Sirius uses free trial to demonstrate its value, the customer base rises. It may slowly becoming a must have feature for every car.

Is It Time To Buy An iPad

Fourth quarter is just around the corner and stores are gearing up for the holidays when sales really pick up. And in time for the holidays, the next release of the Apple iPad. "Apple is rumored to be working on a second generation of the iPad with FaceTime video conferencing ready by the holiday shopping season." Does a front facing camera on the iPad turn the corner from an intriguing device to a must have? Or, is it really necessary to rush a next version. "Apple has been racing to keep up with demand for the iPad, selling more than 3.27 million by late July and only getting to 24-hour turnaround on orders as of late last month."
With demand what it is why the rush.

I Want My MTV

Almost 30 years, the cry of "I Want My MTV" was both a song refrain and the longing of a new generation for programming geared to them. The rise of a channel devoted to music, another to news, and another to sports was the start of the 1000 channel universe of cable programming. New cable networks arose although the mythical number of channels was never met. The cry for MTV brought more programming choice to the medium we love - television, and demonstrated that niche programming can survive.

That is for a time until the desire for more profits outweigh the desire to remain true to the niche one serves. Each channel, MTV included, broadened its programming format to widen its audience interest and raise its Nielsen rating. Every channel started delivering movies, cartoon channels added live action, old movie channels added new movies and tv series. Even MTV stopped showing music videos. Not one channel today has stayed true to its niche.

But the cry for more continues to ring out and today it is in the form of on demand programming. There may not be 1000 channels, but there sure is almost 20,000 hours of on demand programming. But viewers also want to watch content beyond the four walls of their home. The cry today is now for wireless and access everywhere; and with it more choice. While on demand rises, the need remains for access to live programming remotely as well. The cry is for connection - across devices, across platforms, heck even across continents. ALL CONTENT EVERYWHERE. Perhaps we need a new song refrain today to hype our hopes for this next want. "I want my content now".

Viewers Prefer Local News And Miss Local Cable Companies

I read this short article today and it reminded me of what cable distribution initially meant. As people seem to prefer local news, cable was meant to be your local distributor. Municipalities would take bids and select their local cable provider in exchange for local channels and production facilities. Just check down in the lower numbers of your cable line-up for those channels. Yes they are still there. And cable companies built local offices manned by local management to respond to local issues. And they marketed their local presence as something unique, that the telephone company couldn't do.

Today, cable distributors have consolidated their management operations into regional or divisional levels. Most decision making has gone even higher into the corporate building. There seems to be no more local and cable distributors have opted to copy the telephone model today instead of differentiating from it. The local manager no longer exists; in fact, those local buildings may now simply be call centers or warehouses with no General Manager in attendance. Consolidation is king.

As for the story of local news still number one. people still live in neighborhoods and still want to know as much about what is going on outside their front door as in their state, country, and world. Local may have been a buzzword for the early days of cable, but local still does matter.

Apple Flashes New Apps

Apple's strategy of doing their own thing regardless of the competition has suddenly hit a sharp left turn. Their exclusivity with AT&T left Verizon open to do other deals and competition has moved down the pike fast. Along with products that compete, apps that work in one world, but not Apple's has been a real challenge. At first Steve Jobs said no to Adobe's Flash, but competition from Google has altered that position. "Apple Inc is easing restrictions for building iPhone and iPad applications, a move that should allow for the use of third-party tools such as Adobe Systems' Flash software and ease tension between the two companies."

So if apps co-exist across products, I assume the next challenge for Apple is to remain innovative with product design. That does not seem to be a problem. Apple has proven itself numerous times with the iPod, iPhone, and iPad. Files from one program easily get manipulated in another program. The fact is that Apple products are built well and function even better. It behooves Apple to open up its App development to enable even more functionality for its devices. Apple truly builds products with ergonomics in mind. Ultimately, Apple will continue to distance itself from Google in building devices that further improve the convergence of content across distribution platforms.

Ultimate Synergy - Marketing Owning The Medium

The worst part of advertising are ads that are perceived as ads. Low credibility, negative relationship, and an intrusion on the content. And while adults are more savvy (we hope) to ad messages, children are not. To them, everything told to them is true. marketing to children then is a tricky process.

So what may be perceived as smart marketing may also be looked at as deceptive and disingenuous; that is the ownership by a toy manufacturer of a TV network. "Discovery Communications (DISCA.O) and toy maker Hasbro Inc (HAS.N) said on Wednesday their new joint-venture cable network The Hub, to launch next month, would target an under-served market of children aged 11 and younger." Shows featuring toys ripe for purchase have that air of credibility but unlike an ad, doesn't necessarily differentiate between fantasy and reality.

So what is the difference between a manufacturer that owns a network airing shows of its characters and a network not owned, but whose characters were licensed to appear on a TV show. Probably not much. Perhaps the key difference is the ownership factor. Promotion of the toy may be more important than the rating of the TV program. Hence a 24/7 advertising model. Thus, the channel can afford less advertising "commercials" as the whole time is essentially a toy advertisement.

Still Hasbro and Discovery may have a point that they are not the first to enter this space. "Hasbro Chief Executive Brian Goldner said rival children's cable network owner Walt Disney Co (DIS.N) is the third-largest toy maker in the world while Viacom Inc's (VIAb.N) Nickelodeon is the fifth-largest." In those two cases, the content came first and the toy making came second; in this case, the toy is driving the content.

Can The Hub be successful? At the end of the day, TV content needs to be engaging and watchable, regardless of the toy it is promoting; otherwise, it won't be of interest. And without interest, toy sales will drop. Make solid programming investments, develop good stories, and high production values and the audience should grow.

The Merging of Broadcast and Cable

So what is the difference between say ABC and Bloomberg, or NBC and USA. To today's audience, they are both simply networks on their cable line-up. One may be more general interest, one may or may not be more niche. This merging into one box called TV content may signify the greater trend occurring. In fact, broadcast networks own cable nets just like NBC owns USA.

So that there is news that broadcast and cable news operations may combine is simply the beginning to full scale ownership of the operation. CBS and CNN sharing news resources, great; how about one corporation simply merging with the other. "It’s all understandable: With the news industry battered by a still-foundering economy and splintered media landscape, questions of whether such marriages of convenience and economic viability are the future for broadcast news become inevitable."

To me, it is inevitable that content companies will continue to merge to find their economies of scale. Both in news and entertainment content. Where there used to be many cable operators in the market, today the top 5 own a vast majority of the marketplace. For content companies, some mergers have occurred and more seem forthcoming. At the same time, the merging of contet companies with distributors may be the end result of this slippery slope. With a Comcast and NBC merger comes also the concern that too much power in the hands of too few will limit new growth and innovation, especially that Comcast owns the broadband pipeline as well as the cable connection. Or lead to the death of TV at the hands of a wireless revolution.

Sirius needs Howard, does Howard Stern need Sirius

There was once a time when all negotiations were done behind closed doors; but today, most seem to occur across the media. The same holds true for the Howard Stern and Sirius negotiations. "While some speculate that Stern on Thursday was merely beginning the process of negotiating in public, the shock jock also indicated that he has no desire to bash his employer like he did before he ditched terrestrial radio for satellite radio." Of course, his agreement doesn't expire till the end of the year, so all this could simply be posturing for the best possible deal.

But exclusive content can drive distribution and so it seems that Sirius needs Howard more than Howard needs Sirius. Howard has many more choices although restarting in a new medium requires more energy than perhaps even Howard isn't willing to give. Going back to broadcast for Howard may be fodder that Howard made a mistake going to Sirius and is in need to reclaim his "King of all Media" crown. I expect that at the end of the year, Howard and Sirius will renew their vows.

New TV Season

Okay, it's September and time for the TV premieres. I'm sorry, was that the sound of a pin hitting the floor. That now seems to describer the state of broadcast TV these days. Little buzz, little fanfare. While cable revs up in the summer, broadcast snoozes. And rather than push big messages about the coming of new shows, premiere week may simply drift by. Has broadcast given up? Will new shows be seen and quickly yanked because viewership didn't come quickly. Who knew they showed up in the first place. If broadcast ratings drop, they have only themselves to blame.

Net Neutrality Regulation

Terrific article in this Saturday's NY Times, and certainly worth the read. "Net neutrality, of course, is the principle that Internet service providers should not be allowed to favor some Internet content over other content by delivering it faster." And yet, as Joe Nocera describes it, "that this was a big mess?"

He presents a clear understanding of what is happening with net neutrality. Two points stick with me after reading it. One is that equal availability of content doesn't exist in cable, so why should it be equal in broadband. Your cable provider decides whether you can see a certain channel or not and prices it accordingly on a basic, tier or premium level of service. Think every home is capable of receiving a channel like Hallmark Movie Channel or Epix. The answer is no. But with competition, you can decide which provider you want for cable carriage. And perhaps part of that decision is predicated on a particular channel they carry.

The second point that is conveyed is that the consumer should have the ultimate power. "Consumers have come to expect an open Internet, and companies will violate net neutrality at their peril. That is just the way the Internet has evolved." Allowing a free market where businesses that offer broadband can decide how to offer it. Favor one content piece over another; why not. What is most important for the FCC is that their are low barriers to entry for providing broadband service. Encourage utility companies like electric and water to expand their offerings to also bring broadband into the home. Let telcos and other overbuilders ease of entry as well. Enable multiple companies through tax breaks to build the infrastructure to provide wire and wireless broadband everywhere. And then let free market decide how to proceed. One company signs a deal to give Hulu priority stream; another gives it to Netflix. The consumer ultimately decides which broadband service they prefer.

It seems an open market will solve the problem, not a heavily regulated one. Until then, Nocera is right, it is a big mess.

Disney and Time Warner Cable Deal Renewed

A done deal. No dropped signals. Consumers kept their ESPN. In fact, they get their ESPN3! "In the deal announced on Thursday, 12.7 million Time Warner video subscribers and 2.4 million Bright House Networks video subscribers will get access to ESPN3.com without an extra charge." I'm sorry, without an extra charge. This is not really truthful. For the moment, the consumer will not spend extra to receive this internet channel, but trust me, they will spend more. "Disney also won a cash payment for granting Time Warner Cable the right to retransmit signals from four ABC stations and secured carriage of a new 24-hour channel called Disney Junior, a rebranding of its SOAPnet channel, when it starts up in 2012." These "extra costs" will be quickly bundled together and the cable bill will go up by even more than the amount spent. Heck, you gotta keep those margins up.

It certainly helps position Time Warner as the aggregator for branded cable and web content, working through Time Warner to authenticate these users to watch their ESPN 3 on a computer or other mobile device. Perhaps it is how TV Anywhere will ultimately be monetized.

Apple Again Innovates

While still no news on the Verizon version of the iPhone, Apple did come to the press conference with a number of improvements. Apple TV is back with a Netflix rental deal, the iPod Nano has a touch screen, and Apple has launched a music oriented social networking site. "Unlike other social networks used with Web browsers, Ping requires iTunes software on a computer or an Apple device. Apple could face an uphill battle convincing customers who already invest time updating and keeping track of friends in other social networks to also do so through Ping."

But wait, doesn't My Space also go after the music fan. To me, the key here is the convergence of the music to the networking. This natural link could easily bring people over to Ping. As iTunes dominates the music listening space, the key benefit is in the simplicity of communicating while your listening. Will consumers embrace Ping? It seems the infrastructure already exists and that Apple has little to lose in trying.

As to the rest of the announcements, the biggest story had been the re-introduction of Apple TV. To me, Netflix online seems everywhere and adding one more distribution device doesn't mean much. Normally, Apple is first in to the market, but this makeover seems less exciting than his other announcements. Will consumers rush back to embrace Apple TV? Apple needs to tell its base all the impressive things that this device can do that others can't. I need a real reason to buy it and I don't see one yet.

Time Warner and ABC Still Negotiating

The bad news is that the renewal has not been completed; the good news, they continue to negotiate in good faith. And by that I mean, they have not resorted to shutting down channels. Time Warner Cable customers can still get their programming despite being out of contract. Let's hope that discussions don't turn acrimonious at the last minute and that either side leaves the table. Dropping signals does not help either party.

Content v Distribution - Another Channel Dropped

Sorry, the news today isn't about ABC and Time Warner as that deal appears to be done; no, in this case it is between an independent network, Hallmark, and a telco, AT&T U-Verse. And as a renewal couldn't be reached before expiration of the contract, the channels of Hallmark were taken off the air. "For its part, the programmer said the telco had dropped Hallmark Channel and Hallmark Movie Channel from its channel lineup at 12:01 due to an inability to reach a new carriage agreement."

AT&T did replace Hallmark with two other channels, but is dropping channels the expected choice of action. What of the consumer. Are negotiations always so acrimonious that the last resort, dropping signals, becomes the first choice of action. Couldn't they at least agree to keep on air for the sake of the consumer as a sign of good faith negotiation. Unfortunately, in this case, and a majority of others, the consumer comes last.

I do understand the negotiation process and I respect both sides; but this drama is bigger than both the two current combatants. it seems to be replayed with each negotiation as part of the playbook. At some point content creators will get tired of this dance and reach out directly to the consumer. And if they do that distributors will have a harder time getting linear and on demand product. It will simply be streamed directly to the viewer's device from Hallmark and others.

Distributors and Content have a symbiotic relationship that relies on each other to be successful. Aggregated content enables costs to be shared and provides more choice (hopefully) for a better price. Thus the argument against a la carte pricing. But technology shifts also lower the barrier to entry so that the content company can bypass distribution and talk directly to a customer. At the same time, Distribution can control the flow of streams and could favor one stream over another. Hence the argument for net neutrality. And so these content and distribution negotiations are all impacting a slippery slope. Better to work together than to push forward potential distribution alternatives.