Cablevision and Fox End Fight

It took two weeks, but the stand off is over and Fox is back on the air in Cablevision homes. "Cablevision begrudgingly ended its dispute with News Corp. Saturday after several weeks of contentious negotiations over fees, getting Fox 5 back on the air just in time for the first pitch of the third game of the World Series." And in getting to agreement, I am confident in saying that some increase in fees occurred. How soon that increase to Cablevision customers remains to be seen, but I will make a first guess and say that it will happen between January 1 and February 1.

And it is leading us down the path to a la carte pricing, for both networks and individual shows. As bundled fees get more pricey, the customer is cord cutting. Moving toward content that is less expensive. And asking to pay less to get only the networks and shows they want to buy. Consumers will pay less at the end, but get less at the same time.

But back to the present. Cablevision customers were without their content for two weeks and will still end up paying more. The end didn't justify the means. The result for them is the same, an increase in fees. And as predicted, the customer continues to lose.

Cablevision-Fox Duel Continues

The NLCS, 2 World Series games, NFL Football, and of course all the Fox TV shows have been unavailable to Cablevision customers for too many weeks. And in that time, customers have been asking for rebates, others have switched to alternative distributors like FIOS and Direct TV, and others have purchased a digital antenna. And others have learned to simply do without. This battle simply demonstrates that both sides are wrong. Putting the consumer in the middle is not smart and forges bad feelings. Both Cablevision and Fox may hope the public has a short memory and will soon forget once this ugly business ends. But others will see this as a wake up call to what is going on in cable. I am not taking either company's side in this argument. Both are wrong; but at the end of the day, regardless of the outcome, the only party hurt will be the customer. And that is ultimately who needs to be protected.

Is Print Media Dead In 10 Years?

It's October 29, 2020 and you are drinking your coffee and eating your breakfast. Or you are starting your commute on the train or waiting for your flight to take-off. It is during these and other times, that you find folks reading their newspapers, magazines, and books. But according to this new study, we will all be doing these activities on our digital reader. Print will be dead. "The 24/7 Wall St./Harris Poll on American Media shows that 81% of people believe that the use of print news will decline. That, however, is cold comfort because 55% of those questioned said that traditional media will no longer exist in 10 years."

Now it is very clear where the trend is headed, so no doubt, print media in its traditional form will decline. But I very much doubt that it will cease to exist in 10 years. So I guess I am in the minority. These same type of statements have been said every time a new item was displacing an old one. And yet we still listen to radio, we still use trains, and we will still read print. The truth is that any change forces the older item to adapt or die. But the need for print will remain albeit in perhaps other opportunities. And the transition to an all digital world will not be accomplished within 10 years. I suspect it will take another decade or two. And yet there will always be a need for a printed copy. Whether that printing is done at printers or directly in the home, some form of paper will still be around. We may eventually share it, move it around, and consume media digitally, but we will also still like some of it to be printed.

Comcast Profits Grow, Subscribers Fall

Comcast reported its earnings and the news seems to make one wonder. Profits grew, less than the previous period, but higher than analysts expected. And in this economy, any profit is a good sign. Still, when you dig deeper into the numbers, how they got there indicates a growing problem. "That was the underlying question about Comcast’s third-quarter earnings, in which an overall strong performance was clouded by the loss of 275,000 basic cable television subscribers." So less customers are paying more for cable service.

More cable customers are buying additional services including phone and internet access. And profits reflect that growth as well as higher cable charges. At the same time, a quarter of a million customers chose to disconnect. It is now assumed that those customers are cord cutters, leaving cable but accessing content through other online means. But Comcast executives don't think this loss reflects either cord cutting or competition. "Instead, they blamed the weak economy for the losses and said that many who cut service did not flee to a competitor — like Verizon or DirecTV — but instead opted for free, over-the-air television." Wow! So cable service is now the great indicator of the loss of the middle class. It is the dividing line between the haves and the havenots. As the cost of service goes higher and higher, customers must revert back to over the air access and use their disposable dollars on the necessities of life. Has television gotten that expensive?

The sad fact is that price is driving customers away from traditional cable companies and to alternatives. Current FIOS and U-verse deals are cheaper and in a weak economy, customers are going to pay less to save money. Others, mainly the younger generation, are more comfortable getting content online. They are saving money by cord cutting. They embrace new technology and alternative content platforms. And they are being driven at a faster rate because the price of cable has gotten out of control.

Comcast will continue to draw more revenue from a diminishing base. And at some point, the growth of dollars per customer will not offset the total loss of customers. You can't squeeze blood from a rock and more and more customers have reached the limit on how much they are willing to pay to their cable provider. Pay attention to this quarterly trend of lost basic subscribers. It is a bigger problem and trying to minimize the issue will not make it go away.

Barnes and Noble Update The Nook

Just in time for the holidays the Nook e-book reader has been updated with new features. "The new touchscreen Nook Color, priced at $249, costs about half as much as an entry-level Apple Inc. iPad—but almost twice as much as an entry-level Kindle from Amazon.com Inc. and Barnes & Noble's existing monochrome Nook device."

The issue for Barnes and Noble is to identify who its competitors are and what positioning strategy they are impacting. Kindle is seen as the leader in the e-book category and the Apple iPad may compete but may not fit how readers wish to access their books. For them the iPad is too much and too expensive. For the Nook, the question becomes, do these new features and price point drive market share. Should more attention be made on price or should the push be on the exclusivity that B&N can add to the Nook that aren't available from Amazon. Clearly having brick and mortar stores must offer some advantages that they can capitalize on.

Currently the numbers don't look good for the Nook. "Barnes & Noble, which first unveiled the Nook last fall, has had difficulty catching up with market leader Amazon. Forrester Research estimates that by the end of this year there will be 6.1 million Amazon Kindles on the market in the U.S., but just 2.1 million Nooks and 2.2 million Sony Corp." The question to B&N remains, does this new version do enough to capture a bigger piece of the market. To me it is more than offering color. Take a page from the Apple playbook and figure out how to drive more usefulness into your product mix. A device does not run without software and content that is of value to the customer.

It is exciting to watch how far the e-book category is growing. Clearly it is the next physical media being transformed into our digital landscape. Watching the changes in TV, movies, and music, may give some hints to these players in acquiring and retaining customers.

How Should Apple Spend Its Money

Stockpickers and shareholders continue to speculate with how Apple should spend its earnings. Its top executives are cashing out their restrictive stock options and shareholders seek even more ROI. So what should Apple do? Release a dividend like Microsoft started a couple years ago. Split the shares 2:1 or more to encourage more investors to the stock and push higher the stock price. Or grow through acquisition.

Well the speculation has started. "Shares of Sony Corp rose nearly 3 percent at one point on Tuesday, but later retreated as analysts dismissed speculation that the electronics maker could be an acquisition target of Apple Inc." But if not Sony, who? Should they consider a web company like Yahoo, a CE firm like Panasonic, or perhaps Tivo. How about a content creator like NBC or CBS. Should Apple expand beyond its core strength of developing products that others can build software that Apple can resell. The App Store and iTunes are working quite well.

Apple has stated it has over 51 billion dollars in cash ready to use. But according to Steve Jobs, he is not under any urgency to spend it quickly. So far he has made all the right moves while its nearest competitor, Microsoft, has had a number of disappointments. For those that trust what Apple is doing, surely more good things will come.

Cablevision and Fox: Still No Deal

It is more than a week, the NLCS series is over and done and the World Series on Fox begins tomorrow night. And still no agreement. I have already heard from friends in the area; some were able to switch to FIOS and others only wish their area had FIOS. With no end in sight, a dish or antenna seems the next best solution.

In addition, the NFL Network has voiced an opinion. Not about Fox, but about their own need for binding arbitration to conclude a deal. Does any network get a break with Cablevision? The proof is in the pudding. And now the government is involve. "A senior Federal Communications Commission official wants to know whether Fox and Cablevision are negotiating in good faith or are spending all their time running attack ads against each other." To what extent the FCC can impact remains to be seen.

It may also reveal an even bigger issue between programmer and distributor. Part of the hang up is online content. Fox is a partner of Hulu and Cablevision may see Hulu as more a threat than complement. It also illustrates the challenges a Comcast-NBC deal may bring to the industry should the merger be allowed to continue.

Many want this Cablevision and Fox business to go away; unfortunately, its public airing of dirty laundry only goes to further exemplify the issues of content and distribution owned by one entity. On the surface it is about license fees; but dig a little more and it is clear the issues are far more complex.

Goodbye Walkman, CD Player Close Behind

Sony has finally decided to stop producing their once revolutionary cassette player. What, you thought it was already dead; me too. But the official word has just come down. "Sony has sold 220 million cassette Walkman players globally since the product's July 1979 debut that changed lifestyles by popularising music on the go." Except, I was expecting to hear that the portable CD player had also been retired. It seems cassettes have been dead for a good three years.

Sure, stores keep selling CDs but with the number of digital devices in the market place, is anyone using a portable CD player? CDs first appeared only a few years after cassette players; In the late 80's they appeared as options for cars. You would suspect that within the decade, CDs will stop being produced and all music will be sold as digital downloads. We are watching a migration from physical media to digital to eventually cloud. We will no longer physically hold onto something but access everything from the network. It is the direction we are headed or all media as we demand what we want, where we want, when we want, how we want.

It's Hard To Keep The Verizon iPhone Secret

Verizon Wireless had a very good financial quarter, beating the analyst estimates and enjoying high earnings. At the same time, the fourth quarter looks uncertain. The reason, the Apple iPhone. While AT&T grows customers at a high rate, Verizon growth is seen as below average.

Consumers are expecting the iPhone to launch on Verizon in first quarter 2011. And many are waiting to update their phone or switch providers. I am part of that former group. My contract with Verizon has been up for a while and I have no intention of changing my phone till the iPhone is released. I have seen what is out there and know what I want. I believe the same holds true for others. "Verizon Wireless, a joint venture of Verizon and Vodaphone Group, could sell 9 million iPhones a year, Charlie Wolf, an analyst at Needham & Co., has said." And both Apple and Verizon will enjoy a very healthy and profitable 2011.

Networks Say No To Google TV

Cablevision is fighting to not pay for Fox broadcast networks. The networks are excited to be getting license fees from other MSOs to improve their bottom line. So why would the networks want to hurt their new revenue model with a product meant to increase consumer cord cutting. "The move marks an escalation in ongoing disputes between Google and some media companies, which are skeptical that Google can provide a business model that would compensate them for potentially cannibalizing existing broadcast businesses." And by that, the networks mean this new second revenue stream.

Still isn't that what access on a website of full length programming entails. Those not willing to pay for HBO and Showtime simply wait a year for True Blood and Dexter to be released on DVD and out on Netflix. Some buy it later on iTunes. Like the movie industry with windows on release dates to different platforms, a similar model may need to be built for broadcast shows and the web. Watch Modern Family now on cable or 6 months later on Web TV.

Still it is hard for the networks to put the genie back in the bottle. Ad revenue through commercials is not enough and the networks are finally enjoying a second source of revenue through license fees. The challenge is that the consumer is tired of paying more and is ready for ala carte to pay less. They would rather just buy the show they want to watch and no longer the whole network. With free content on the web, the consumer is moving away from the cable box to a cheaper alternative. As the adage goes, "Why buy the cow when the milk is free".

Can Sirius Survive Without Howard Stern

The simple answer appears to be yes; in fact, the savings that Sirius gets by unloading Howard could offset debt and pay for alternative talent. "The company might return cash to shareholders through buybacks or dividends, Karmazin said. Such a move will become increasingly likely as Sirius XM continues to lower its debt and build cash flow, though there’s no target date for such action, he said."

Still, Howard remains a great fit for Sirius and while some audience might defect without him, investments in other alternative programming could bring in a new audience. And "Sirius XM stations, such as Raw Dog Comedy and Playboy Radio, would help retain many of Stern’s listeners if he left, he said."

Howard's contract doesn't expire till December, so there is still time for Howard Stern and Sirius to renew their vows.

No Sports For You

Cablevision and Fox are still fighting. And Cablevision customers have lost three NLCS games and Giants Football game. Unhappiness reigns.

Interesting to note that a Calevision offshoot, MSG is facing the same problem with Dish. MSG is off the air as contracts remain unsigned. And in both cases, Cablevision and MSG are requesting arbitration as the solution. PR ploy or sign of a real attempt to settle, who knows.

What I do know is that the distributor - content relationship has soured in the last few years. It has become increasingly acrimonious and what I would describe as a win - lose relationship. Each wants to win by getting the other party to lose. This strategy has a negative long term result and makes each subsequent negotiation that much worse. And frankly, it is becoming destructive to the health of the cable industry.

Fox - Cablevision Dispute Means No Baseball, No Glee

Cablevision customers missed out last night on game one of the NLCS Giants - Phillies series. Despite ongoing negotiations, neither side could agree on a new contract. And rather than think about the customer, the signal went dark. "News Corp./Fox has argued that Cablevision has focused more on getting the two parties into binding arbitration, which Fox rejects, than reaching a solution." Regardless, Cablevision customers missed Fox's Saturday Night programming.

Of the voices complaining, the one that seems silent is that of Major League Baseball. It is a key time for MLB and they should be furious that the number one market in the country lost a chance to watch their programming. Yet I have not heard or read a word from MLB voicing their dissatisfaction with this outcome.

Now there is one thing worth noting, Fox is a broadcast channel and consumers could have just as easily gone out to their local store, picked up a digital antenna, and tuned in. Yes, it is a backwards step, but it was the fastest solution. The fact that Fox ads argue to switch providers may be nice, but the time it takes to get an installer into the home to switch to another company may take at least a week. By then the negotiations will likely be resolved and Fox will be back on the air.

Should consumers still switch? Well this isn't the first time a network went dark with Cablevision. Those tired of these shenanigans may switch anyway knowing that this scenario will only play out again and again.

30 Rock Live

I loved 30 Rock Live last night. I loved it for many reasons but mostly because it took the chance. The early days of TV, the "Golden Days" as they are now fondly recalled, were all about live TV. Mistakes happened, but the adage "the show must go on" was always present. Not that anything unusual occurred, but the show had fun with it, including Tracy breaking character and a picture falling off the wall.

And the show was performed twice, once for the East Coast and again for the West Coast. Well conceived, well planned, and well executed. With inside jokes and tons of punch lines, [“Why do people do anything? Because they’re rich or they have Attention Deficit Dis — Hey! Look at Lutz’s shirt.”] 30 Rock continues to impress. And perhaps this type of stunt becomes an annual event. I hope new viewers came along for the ride; they are watching another classic on TV.

Verizon and Apple Selling The iPad

It's not the iPhone yet, but we know it is coming; the first official announcement is that an iPad through Verizon will be here shortly. "The two companies announced that Verizon Wireless will begin to sell iPads in retail stores at the end of the month. Verizon will offer three bundles, all featuring an iPad Wi-Fi model and a Verizon MiFi 2200 Intelligent Mobile Hotspot, which will allow it to operate on Verizon's 3G network." No AT&T exclusivity to worry about. No 4G yet either. But that only means next generations with better visuals and faster connections.

So Verizon gets the iPad by November and perhaps the iPhone by March. Important to have done this deal as the upcoming CES Show in January will most certainly be about the tablet and Apple will have lots of competition. Not that I think Apple is worried. As the leader in the space, their devices continue to out perform the field. Heck, Microsoft can't even compete.

I would not be surprised if the iPad is called the must have gift for the Holidays. With its ever-growing number of apps, its retail presence, and now its multiple communication platforms, the Apple iPad is poised for being more than an early adopter toy. It is becoming the must have device for the home.

Even cable operators are getting into the act, building iPad apps to turn the device into a remote for the TV. From access of all on demand content, a trove of data and art on every tv and movie show, and the ability to order and call up the program to the TV, the iPad is gaining even more traction as both an in home and out of home device.

So congrats to Verizon and Apple for finally coming together. The future for both keeps looking brighter!

Will AOL Buy Yahoo?

AOL has finally separated itself from Time Warner and been slowly, diligently, rebuilding itself into an online content powerhouse. In fact, I bet most of us visit a site that is owned by AOL. We simply don't think of AOL that way yet. We still know them as an internet service provider. Well sometimes big steps need to follow small steps and a Yahoo purchase fits that latter category. "Yahoo Inc.'s inability to snap out of a financial funk may be about to turn the embattled Internet company into a takeover target for the second time in less than three years." And the timing might be right for AOL to make that offer.

Both sides deny talks and some wonder if AOL can afford to make this purchase. Should it happen, on the surface it looks like a great fit. Would both brand names survive, I doubt it. To me, the Yahoo brand has more equity today than AOL. And AOL's content sites don't use AOL to push their positioning. Where synergies seem to exist, both companies would benefit from greater economies of scale. And the online reach could start to rival Google and others.

So is the speculation true or just an attempt to start the consideration process? Regardless, the evolution of any industry, including online, is consolidation. The big need to get bigger. The big fish swallow the small fish, and that is how the game works.

Cablevision Fox Negotiations Are Why Comcast and NBC Shouldn't Merge

In three days, Cablevision customers will either still be enjoying their Fox broadcast channel and cable nets or will find static. Just in time for MLB baseball on Fox. The ultimate loser in the negotiation is the consumer. No signal, no programming, higher license fees, higher pass through costs on the cable bill. Bad for all, but even worse, bad for Comcast and NBC.

Assuming the merger went through, how could Comcast prepare to drop a broadcast channel like Cablevision is threatening. Won't cries of unfair trade be screamed from door to door and across the legal system. Can real negotiation occur? How else can Comcast be assured they are getting the best deal? Too much pressure not to be seen as monopolistic.

The solution of having the government negotiate carriage deals for Comcast seems absurd. The government can't negotiate their own deals without overruns, misspending, and other bureaucratic bungling. Owning a major broadcast entity seems ripe for bigger problems then Comcast needs.

And what about the other side of the business, Universal Studios. As cable operators fight for shorter windows to get movies from theaters into homes ASAP, is Universal's best interest being considered. And doesn't this vertical ownership from creation to distribution remind anyone of the days when studios owned the theaters. Back then, the concern was that smaller theaters would get squeezed out of films because they weren't owned directly by the studio. For a while, laws were enacted to protect theaters from this monopolistic activity. Doesn't this merger have a similar smell?

So Cablevision and Fox will fight to the finish. Most likely, a deal WILL NOT get done till after the networks are off the air. It happened with ABC, It happened with Scripps. It seems likely it will happen again with Fox. Call it squeezing any last drop out of the negotiation, call it acrimonious. But it is now the SOP, standard operating procedure for negotiation between content and distribution. And it is the biggest issue facing the Comcast NBC Universal merger as well.

Magazines Not Dead

Don't worry friends, magazines aren't dead. In fact, the ad market is showing a bit of a rebound. "Paced by automotive and technology ads, consumer magazines posted ad-page gains of 3.6 percent in the third quarter compared to a year ago, marking the second consecutive quarter of growth for the embattled industry." A healthier economy with more jobs will increase consumer spending and increase advertising. People still read and printed media will not go away any time soon, although usage patterns are changing.

At the same time, there will continue to be a shift of reading from print to digital as an ever growing number of devices hit retail. The iPad will be sold in Walmart and Target, Kindles and other e-book readers continue to make a splash too. and online subscriptions are increasing. The Financial Times just announced some intriguing results of their subscription base, "In the five months since its launch, the (Apple iPad) app has attracted 400,000 downloads and accounts for 10% of new digital subscriptions". That is a huge percentage for such a short period of time.

These are exciting times for media with new opportunities emerging through technological changes. Embracing change and adapting to it will determine which publishers excel and which are destined to perish.

Hulu IPO Would Benefit Some

GE, Fox, and others built this online content distribution service from scratch and appear ready to hand it off to the market place with a stock offering. "Hulu is ready to raise $200 million to $300 million in a deal valuing the company at about $2 billion, and could file a prospectus with the U.S. Securities and Exchange Commission before the end of the year, one source said." It also is an opportunity for its owners to reduce their ownership stake by selling stock to the public, too. So is the motivation to raise more capital and deliver an exit strategy.

Hulu's latest gambit has been to add a subscription package to its service, thus adding a second revenue stream to add to its ad model. As a private company, these figures don't need to be shared; as a public company, we would also be able to peek under the velvet curtain. An early IPO would come with the explanation that since the subscription service is new, a slow start could be easily explained. At the same time, investors would be able to quantify their ownership and perhaps even reduce their level of holdings. And if the Hulu model is shaky, a good time to take the money and run.

Will Hulu be a profitable company? Or is this IPO an opportunity to cash out their investment and play with just house money? Just wondering.

MGM To Enter Bankruptcy

When the Hollywood risks the loss of one of its once powerhouse studios, MGM, it is a clear sign in the sand that it is out with the old and in with the new. Old Hollywood rules are out, the new digital age of direct to home is gathering steam. If businesses don't change to meet the changing needs of their customer, then they will be replace by those willing to adapt in order to survive and excel.

And while bankruptcy won't put the MGM name into the grave, it will symbolize that the business model that once thrived is now outdated and studios must creatively find new doors to open.

Another Rumor on the Verizon iPhone

No confirmed news from either Apple or iPhone, in fact, just the opposite. Verizon announced no iPhone. It's just that no one believes them. Maybe to protect sales of current phones maybe to keep building the excitement for the eventual announcement. Regardless, the rumor of a Verizon iPhone won't go away. "The Wall Street Journal reports that the CDMA-based iPhone is real, the rumors of Verizon getting the device are substantiated, and an order has been placed with manufacturing plants for millions of the device."

So when does the AT&T exclusivity deal expire and when will Apple or Verizon finally make the "official" announcement. "One leading theory is that Apple and Verizon will officially make the announcement of a Verizon iPhone in early January at the world's biggest trade show, the Consumer Electronics Show in Las Vegas." Don't expect the announcement any sooner. Or just ask AT&T when their deal ends; perhaps that is the ultimate reason why an announcement is on hold.

Howard Stern: Will He Leave Sirius?

Will Howard sign his contract? Others at Sirius have committed. "Today, reports emerged that the latest on-air talent to re-sign with the satellite radio company are Opie and Anthony, who are said to have signed on for two more years. The company also appears to be close to finalizing a deal with the National Football League." It may be a negotiation ploy, but I think Howard will eventually re-sign. He can set his terms, develop new shows and reap the rewards of producing and not just being the online talent.

Check out the article and vote your prediction.

FilmOn Sued By Broadcasters

Historically, broadcasters have offered their signal over the air, free to homes. Their revenue came from advertising. Today, they still offer free, over the air, but they also are getting license fees from cable operators. So a site offering to redistribute free content to devices sounds promising for consumers, but problematic to the license fee model. "On Friday, CBS, NBC, ABC and Fox filed a copyright infringement lawsuit against FilmOn.com, which offers subscribers who pay $9.99 a month access to live high definition feeds of TV online. The suit follows a battle with another online streaming outfit ivi, Inc., dual moves that indicate the major broadcast networks are starting to get aggressive in policing the Internet for unauthorized transmissions."

Why let another company make money over your content? Broadcasters may be right in stopping and perhaps should kick themselves for not being more aggressive in bringing their content to online devices. Flo TV is dying, Slingbox is a stopgap solution. Broadcasters have not been proactive in getting their signals seen through wireless connections. FilmOn has simply discovered an opportunity to regain eyeballs for broadcasters. Perhaps better to partner with them instead of sue.

More Info Needed on Comcast NBC Merger

Comcast and NBC are hoping that before the end of the year, the FCC will approve the merger of these two media powerhouses. It seems, however, that the FCC is not in the same rush. "The Federal Communications Commission is requesting additional information from Comcast Corp. and NBC Universal as it reviews the cable operator's plan to acquire a controlling stake in the media company." Can all the information received so far, plus this new information, be analyzed before the end of the year so that the FCC can make a decision? And doesn't the Department of Justice have a voice in the approval process, too. I wonder if a decision could possibly be reached before the start of the new year.

As to the question, should NBC and Comcast be allowed to merge, many see negative consequences to such a move. "The combination has raised worries among satellite companies, rival cable operators and other subscription video providers that Comcast would use its control of NBC Universal to push up prices for must-have programming or even withhold it altogether." I too wonder the overall impact to competition and to content received outside the cable pipeline.

It seems NBC is closing those deals now, before the potential merger. New deals with Netflix and others enable NBC Universal programming to be viewed without a cable subscription. Should NBC and Comcast merge, could those future deals be denied by management. Does this merger do too much to hurt competition? And should their be a delineation between distribution and content? Time Warner separated its programming arm from Time Warner Cable. CBS/Viacom got out of the cable platform more than a decade ago and ABC has no ownership either. The Comcast NBC merger would be a first. And the FCC and DOJ have a lot to consider.

Sirius Subscribers Keep Growing

A friend of mine recently bought a new car with Sirius included. He took the trial membership and while his commute in the morning is short, he still enjoys his 15 minutes of Howard Stern each way. So I asked, "will you keep it when the free trial expires?" His answer, as long as he has the lease, he will continue to keep it. With the economy modestly improving, and car sales ticking upwards, Sirius' strategy of including in the car appears to be paying off. "The satellite radio company’s raised guidance means it expects its net subscriber growth for fiscal 2010 to be about 1.3 million, ahead of its August prediction of 1.1 million."

It seems Sirius is seeing an uptick. It most likely makes sense to assure your lead star, Howard Stern, remains part of the content strategy. He may not be the only reason consumers keep their satellite radio, but he does reach a very loyal audience.

Have You Seen Your CableCard?

Cable companies would have you believe that the CableCard program, designed to enable other devices to interact on the cable pipeline, was a success. But have you ever seen a CableCard? Do you even know that one is in your cable set top box? Heck, I haven't even bothered to look. In fact... "the 10 biggest U.S. cable operators have deployed more than 22.75 million leased set-top boxes with CableCards since the Federal Communications Commission's integrated set-top ban went into effect in July 2007 -- a rule the cable industry claims has cost more than $1 billion to no discernable effect. Meanwhile, those same cable operators have deployed approximately 531,000 CableCards for use in retail devices such as TiVo DVRs, according to figures supplied by the National Cable & Telecommunications Association to the FCC Thursday." That represents a little over 2.3%. Hardly a dent. And demonstrates that the cable companies don't want 3rd party devices touching their cable wires.

It is also why consumer electronic companies, fed up with the cable industry, have bypassed CableCard technology and put their efforts into internet enabled devices. Just go to Best Buy and ask for a CableCard enabled TV set. Good Luck. Now ask for a TV with internet connectivity and Netflix. Pick your model. Cable has made their bed and ultimately will face increasing competition from broadband connectivity.

Can cable catch up? Can they find a more meaningful solution that keeps the consumer tethered to their wire. Or will cord cuttig become that much more of a reality. At the moment, let's be clear, the CableCard model is broken. Consumers and competitors have found the workaround with internet connectivity; no set top box, no problem.