Facebook tops Google as most visited site in U.S.

Congratulations to Facebook, the most visited site in 2010. "The social network site edged out Google.com (GOOG.O) with 8.9 percent of all U.S. visits between January and November 2010, while Google.com ranked second with about 7.2 percent of all visits, according to online measurement service Experian Hitwise." Usage across all websites continue to grow as we have become a nation of online users. And no worries for Google. When you consider all its related sites, like You Tube, and add them together,
the Google company leads all.

Happy New Year to all!

New Business Alert - Set Up Home Networking

The Consumer Electronic Show is next week and new announcements are expected. This one by Verizon FIOS seems to echo what Time Warner Cable demonstrated earlier this year at the NCTA Cable Show. "Verizon will debut a home-management service for FiOS next year that will let customers remotely lock or unlock their doors, check video cameras, adjust thermostats and power settings, and control lights -- via a smartphone, PC or FiOS TV widget." So much potential for cable to be the eyes and ears to the home. And a great opportunity for someone to come and offer both sales and installation to the home. While some may be able to connect remote cameras, new thermostats and other equipment, most consumers will prefer to hire someone to install it for them.

Theatrical Film Revenue Down

As the year is near its end, it may be worth noting that movie ticket sales and revenue are down for the year. Was it high ticket prices, a bad economy, or the technological impact of on demand, no word yet, but it would be hard to discount all three from having an impact. Per the numbers, ticket sales are down 12 billion tickets, the lowest number since 1996. Thanks to higher ticket prices, last year was a banner year for sales. This year revenue is below 2009 with 2 days remaining, but still above $10 billion, a healthy amount.

So less people are going to the movies but still paying more. Still they are watching movies, through on demand, DVD, and other means. So likely, the revenue coming to movie studios should be higher given the additional distribution streams selling movie views.

So what were the most financially successful films in 2010? According to The Numbers, Toy Story 3 is number 1, with Avatar close behind. Alice in Wonderland, Iron Man 2, and Twilight Eclipse round out the top 5. Clearly 2010 was the year of sequels, with 3 of the top 5 and 4 of the top 10. Sequels should once again top the list in 2011. And of course 3D also helped with more than half of the top 10 films.

So watch your wallets and choose where you want to watch. 3D is clearly helping to push consumers to the theater. Budgets also cause others to wait till On Demand or DVD to catch up. In either case, the revenue continues to remain strong.

Another Year End, Another Contract Negotiation

The year is almost over and once again a cable company faces another programming contract negotiation. This time it involves Time Warner Cable and Sinclair Broadcasting. "A blackout would affect 33 stations reaching more than 5 million Time Warner Cable customers and block channels such as Fox and ABC in Columbus, Ohio, and CBS in Portland, Maine, Sinclair said." Have we become hardened to such news. Typical stuff. And when it doesn't affect your own particular home, do we even care. Eventually every increase in fees eventually translates to higher cable rates to the home. And with no wall in sight, it looks like these rates will only continue to rise.

The solution, obviously is disruptive change. New technology, new service providers, new sources for content that cause us as consumers to bypass our current platform for a new one. Today, it is called cord cutting. Rates are only rising and consumers must either pay the piper or stop feeding it.

Apple 2011 Plans

Can Google of Microsoft beat Apple? It seems rather than innovate, they copy more to catch up than to lead. For Apple, the future is iPhone for Verizon, the next generation iPad, and new iPhone features. And let us not forget what Apple TV might finally emerge as a real must have product too. "Analysts are of the stern belief that 2011 will further have Apple’s domination in media headlines. Apple iPad 2, a revamped tablet with Apple FaceTime video chat and Verizon iPhone, a CDMA iPhone on the country’s largest cellular service provider Verizon Wireless will be the stars of 2011 for Apple." I know I keep waiting for the Verizon iPhone to be released although I have been told that I should wait till the 4G version is released, possible late in 2011. Till then, perhaps the iPad 2 is on my list.

While Google tries to be original, all Microsoft seems to do is keep releasing updates to its operating system. Their only recent success has been the XBox. But is that enough to continue or do they need some new blood to retake the technology lead. It seems they may have been resting too long on their laurels.

Star Trek Predicts The Future Again

It seems that Gene Roddenberry's Star Trek, made 40 some years ago, continue to predict the future. From disks to store data to mobile phones, the future was in the creator's mind and brought to life on TV. And now another reality emerges with the Universal Translator. On the show, languages spoken were translated into English. Today, what is written can be successfully translated thanks to new apps. "... the brand new TGPhoto app lets you take a picture of foreign words with your smartphone and translates the text for you. Developed by LinguaSys, a translation software company, TGPhoto works with 50 languages, including many that use non-English characters, including Russian, Arabic and several Asian languages." I can only suspect that developers are already working on apps that will record the language spoken and play back translations. Amazing how science fiction is now fact.

HBO, SHO, Starz Verses Netflix

As the year ends, some thoughts go to finances and budgeting for the new year. Certainly, the entertainment budget has been forced to grow, what with rising cable prices, movie tickets, online and more. And being home for the week, it is easy to pay closer attention to how we watch TV. And I must say, it is hard to justify the high cost of cable. As we scroll through the list of on demand movies, some free, some transactional, and some included with our premium subscription, I wonder if it makes sense to continue to buy my premium subscriptions. It seems that most choice exists through Netflix and I could not only drop my premium services and buy a Netflix subscription AND save money at the same time. Perhaps the biggest reason to make the switch is the streaming that Netflix offers. It is just as convenient as on demand. Instant access of movies and TV shows at a lower cost.

Will I go all the way and drop cable completely? Probably not, but it sure looks like a slippery slope. Certainly, it has been the original series on premium that keeps us buying, but if you can wait a year, they will end up on DVD and on Netflix. I haven't made the move yet, but I sure feel the pull.

Sirius Growing

Howard Stern is re-signed and sales are looking up. And so is Sirius' stock price! "Yesterday the satellite radio company announced it has teamed up with BMW to offer an introductory one-year subscription of the "Sirius Everything" package with every new model year 2011 BMW Mini and several of its new motorcycle models." Adding another car line will only help to improve its subscription base, making it easier for folks to sign up for the service. All good news as Sirius enters a new year.

Comcast-NBCU Tell Staffs Deal Won’t Close This Year

The train has been delayed, not cancelled, but delayed as the likely merger between NBCU and Comcast will not be closed by end of the year. Certainly for fiscal year reporting, not clean, but so goes the slow engine of the government. For fired staff members of NBCU, more days of employment, and for others, who knows.

"Despite considerable objection, including from the very vocal Sen. Al Franken, the merger still appears to be on track for approval but it also likely will come with strings attached designed to protect consumers from the consolidation." What will those rules entail and how will they impact the future business of this merged organization remains to be seen. But like we say in business, there is always a work around solution. And whatever the rules may be, solutions will be found to allow the business to move forward. Ahhh, the old loophole trick.

When will the deal close? Some speculation the delay may only be two weeks or less, others through January. Hard to imagine it going on too much longer.

Gaming Revenue - No Movie Required

It doesn't take a movie tie-in to make a game successful. And Activision's Call of Duty seems to hit the spot for gaming enthusiasts. Despite its Adult Rating of M for mature, Call of Duty Black Ops sales has exceeded 1 billion dollars in just 42 days on the market. "That's quicker than the company's previous blockbuster video game, "Call of Duty: Modern Warfare 2," which passed the 10-figure plateau in 64 days." It seems that the Call of Duty franchise is doing quite well, even without a movie connection. So will the game inspire a movie? I wouldn't doubt it.

More impressive for CoD - BO is that it is more successful then any movie, except for one. "'Avatar' -- the 3-D blockbuster ... wears the crown as the fastest entertainment property to ring up $1 billion in sales, having done so last year after just 20 days in wide release." Certainly in this depressed economy, entertainment still has its winners.

FCC poised to adopt network neutrality rules

It seems that the support has been found to pass the FCC rules on net neutrality, providing equal streaming access to all. "More than a year after FCC Chairman Julius Genachowski pledged to put in place so-called "network neutrality" regulations, the agency is poised to adopt those rules at a meeting on Tuesday." And while it seems black and white, these new rules may indeed still contain areas of gray. Will internet providers find the loopholes to work around the rules? And will the courts come in and be forced to rule on its constitutionality? Ultimately, the rules are meant to provide a level playing field for all content and lower the barriers for other companies to stream competitive content online. Good news for Netflix and Google? A new competitive landscape is certainly forming.

Hulu IPO On Hold

Is Hulu having troubles? Concerned about going public perhaps and opening up the books? Afraid that the model isn't working? Certainly lots of questions, but no answers. Only that the IPO may be off the table. "Online video site Hulu LLC has taken off the table the idea of going public, at least for now, and may consider other financing options, people familiar with the matter said." But will these owners agree to invest more of their money into this venture?

One wonders how well the premium subscription model is working. "Some consumers have complained that the Hulu Plus selection remains limited, and the company already cut its monthly price to $7.99 from $9.99 during the preview period. Many of Hulu's investors have been pushing it to consider other paid models that could help them earn more money from their content." Can more money be made licensing their product to companies like Netflix? Perhaps online is the new syndication model.

Google TV Delayed

Attention cord cutters, you may have to wait a little longer for your Google TV. More tweaks may be needed to build a consumer friendly platform and so Google is delaying its release. "Google has asked Toshiba, LG Electronics and Sharp to postpone launches of Google TV-based products, which had been planned for next month's Consumer Electronics Show, as the Internet giant needs more time to improve the software." First impressions are everything and if the Google software is problematic, smart to delay before the unveiling then try to fix later. By then, the damage would have been done.

Interestingly, internet connected TV sales are not doing well. "Last week Best Buy -- another key launch partner for Google TV -- reported weaker-than-expected sales for the quarter ended Nov. 27, blaming in part disappointing sales of Internet-connected TVs." Of course, why buy one if you already have a connection to the internet through your gaming devices like Wii, Playstation, and XBox 360, and DVD and blu-ray players. How many connections do I really need.

Can Google break into the game. Maybe not by CES, but 2011 should be an interesting year.

Facebook Troubles

We expect when we turn a light switch that the light comes on. We expect when we pick up the telephone receiver, the dial tone is there, we expect when we turn on our TV, our cable is working. And we expect when we type in our URL, that the website comes up. And when it doesn't, who do we blame. Our broadband provider, our computer, or the website itself. And so it seems with Facebook's website down for another period of time, something is up. And so while we cannot access our Facebook accounts, let us realize that we shouldn't trust any one site to hold us hostage. So climb down off the ledge. It should be back online soon.

Cablevision May Finally Spin Off Rainbow

The discussion to spin the assets of Rainbow, AMC, IFC and others, has been swirling around Cablevision for quite some time. In fact, they issued a tracking stock in the 90's before pulling Rainbow back into Cablevision. Well the results of the spin off of MSG certainly must have tasted good because the board of directors are moving forward with a Rainbow spin off. "The spin would be constructed as a tax-free pro rata distribution to stockholders and is expected to be completed by mid-year 2011." Good news to investors seeking to unlock more value for Cablevision stock and certainly healthy profits for the family and key employee stockholders.

From the article: "The new Rainbow's assets will include:
• National programming networks: AMC, WE tv, IFC, Sundance Channel and Wedding Central
• IFC Entertainment, an independent film business that consists of multiple brands - including IFC Films, IFC Productions and the IFC Center
• Rainbow Network Communications, a full service network programming origination and distribution company, delivering programming to the cable, satellite and broadcast industries
Cablevision would retain its cable and telecommunications businesses, Newsday, News 12 Networks, MSG Varsity and Clearview Cinemas.
Completion of the spin is subject to several external conditions, including receipt of a private letter ruling from the Internal Revenue Service, and final approval from its board of directors.
Cablevision reiterated that it is not considering the sale of Rainbow or its cable and telecommunications business."

Are iPad Apps Killing Newspapers?

Seems like a redundant question. The fact is that the digital age is hurting the print media. For newspapers and magazines, consumers have gone to the clouds to aggregate and access their information. And with an economy in trouble, the web has proved far less costly a means to view content. Readers have gotten more and more comfortable reading articles on their computers and smart phones. The iPad is simply another product choice for viewing.

It certainly doesn't take a survey to see what is right in front of our eyes. Still it does verify the trend. "The survey showed that 58 percent of respondents who use the Apple tablet at least an hour a day for news are very likely to cancel their subscription in the next six months. One in 10 said they had already done so and have switched to reading digital newspapers on their iPad." Still content remains king and newer delivery methods that are faster and cheaper always beat out their more cumbersome rivals. It is a natural evolution of our changing entertainment landscape.

Mark Zuckerberg Time Man Of The Year

Okay, so The Social Network movie did well with Golden Globe nominations. But Facebook has been around a few years now and nothing revolutionary seemed to occur this year. "For connecting more than half a billion people and mapping the social relations among them; for creating a new system of exchanging information; and for changing how we all live our lives, Mark Elliot Zuckerberg is TIME's 2010 Person of the Year." Runnerups were Julian Assange and the Tea Party, both interesting choices. I ask, what about Steve Jobs and the iPad. Revolutionary, I think so. Quickly a must have device for some businesses as well as individuals. I'd say yes. But I don't get to vote. So congratulations mark.

Comcast Testing New Set Top Box

As cable worries about cord cutters, those that prefer access to video over the web, cable operators have become nervous. So if you can't beat them join them. Comcast is testing a new set top box, internally called Xcalibur, that allows the TV to connect to both cable and web videos. "What little is known about Xcalibur. The device is said to bring a “smattering” of Web video and “basic connections” to social networks, but not access to the full internet. It also allows the user to search for content across live, recorded and on-demand options." Certainly anything is better than the current set top boxes used by cable.

A step in the right direction but the path has many pitfalls, including the merger plans with NBC. "A product like XCalibur would be just the kind of device where Comcast could conceivably promote its own online offerings (Hulu, Fancast, etc.) at the expense of competitors (Netflix)." Unfair competition is the crux of the concern facing the FCC and DOJ in approving this merger. But in developing a new set top box, is Comcast getting down to why it is needed.

Viewers aren't choosing the web because it is loaded with more content, or that it is in Hi Def, or that it is on demand. Cable leads in all these categories. Customers are choosing the web for two main reasons that I can see. Web access is far cheaper than a cable subscription and the web offers more flexibility across more platforms.

Today, cable is striving to provide authentication to mobile devices and computers. But to the issue of cost, cable must figure out how to lower its costs to stop the flow of customers from basic subscription. Does a new set top box do that? Not on its own. Lower prices is the real solution.

Time Warner Views Netflix as a Fading Star

Check out this article in today's New York Times. Per Time Warner's CEO, Netflix has "jumped the shark" and will become a fading business. he refers particularly to the deals that Netflix has signed. "The relationship between Netflix and the media companies will most likely change drastically, beginning next year when a deal between the company and Starz, the pay-TV channel, to stream movies from Sony and Disney expires." And while Netflix may have signed some sweetheart deals, it can't be so quickly assumed that they will not find common ground in their renewals. As their growth soars, they remain a powerful force that seems to continue to add a strong and loyal customer base. Should programmers see that their deals are additive to the revenue stream, I doubt they will want to rock the boat too much.

Are Time Warner and the other cable operators worried? Can Netflix continue to sign content agreements that work for their business model? Welcome to a new era of competition in the cable industry.

Another Broadcaster - Operator Negotiation

The end of year brings Santa, cold weather, and yes, another broadcaster and Operator negotiation. In this case, it is Direct TV and Hearst, who owns a number of local affiliate broadcast networks. "The Hearst announcement is the latest salvo in the ongoing battle between programmers and TV providers over carriage fees. Subscribers to DIRECTV, Dish Network, Cablevision and others have lost access to their favorite channels for a period of time this year because their providers could not reach a new agreement before the old one expired.' Markets potentially affected include Boston, Tampa, and 28 others. And for those markets, get used to ads touting alternate platforms to watch their channels. And like every other public negotiation, it will need get resolved until near or perhaps after the deadline. The result, a short term drop in carriage. But don't worry, this negotiation like the others before it will be resolved and order restored. And like every other agreement, the loser will be the customer.

Rainbow Changes Up IFC

When Cablevision and its programming arm bought Sundance Channel a couple years ago, the big question was why. Why add a second indie film network to the roster. One reason may have been favorable financial results. Another seems to be that change was in the air. It appears that IFC is becoming less film and sponsorship. "Instead of art-house films backed by sponsorship messages, IFC is increasingly running accessible indie movies, original series, reruns of cult comedies -- and traditional commercials." No longer saying this hour sponsored by, but offering 2 minutes of 30 second commercial breaks every 15 minutes in a traditional advertising wheel for TV. That means programming to a broader base, which translates to more viewers, more advertising minutes and thus more revenue. Obviously that change will be gradual in an attempt to keep the current viewers engaged while striving to attract new one.

This strategy is not a new one for Rainbow. It has been perfected before. When Rainbow owned Bravo Network (before selling it to NBC), they successfully moved it from a cultural channel with broader interest programming to a more general interest network. They also successfully converted it from sponsorship messages to the traditional ad model. It proved a successful transition that resulted in unlocking greater value from the channel. So most likely Rainbow has dusted off and reopened this playbook for IFC. And if they follow its action plans, they will have similar results. With Sundance Channel in their stable, they still have a network for more indie films and they can push those viewers over who still seek this programming. But don't get too comfortable. I suspect in another 10 years, Sundance Channel will also convert to traditional advertising, and indie films will only be available on demand.

Howard Stern signs new 5-year deal with Sirius

Well despite all the rumors, of Apple and iTunes, Howard Stern renews his deal with Sirius. "The deal, which runs through the end of 2015, provides that Sirius XM can now transmit Stern's show to mobile devices. No other terms will be disclosed, the company said." Good news to listeners and good news for Sirius.

The Color Nook Is Here

E-book lovers get another generation product to satisfy their reading needs, the color Nook by Barnes and Noble. To me it seems a cross between the Kindle and the iPad and blurs the line between tablet and e-reader. Which device to purchase. One that is devoted to reading or one that also serves up video and more. I guess the answer today comes down to consumer needs and price.

It reminds me of the days many years ago when buying my first stereo system. Did you buy the all in one that combined the turntable, receiver, and cassette player or did you buy components. Want to read a book, take out your reader, want to watch a video, take out your iPad. The challenge is that because these devices tend to be more mobile, carrying more than one can be cumbersome and heavy. An all-in-one device seems more appropriate although the fear is that once the power is discharged, you are done. The more you ask of the device, the more power it needs to consume and the shorter the usage between charging.

As the article says, the readers keep improving. and in 5 years, we will marvel at how much more complex they have become. Let's hope that in that time, the power issue is solved, too.

Will Broadband Become Another Utility?

As discussions on net neutrality rage on, one idea that has been pushed has been pay for play. The heavier the usage, like videos and movie streaming, the higher the fees. No more unlimited time. Well, the good folks at Comcast, in an attempt to move their merger with NBC forward, have declared, no usage fees. "Comcast Cable Communications president Neil Smit said the nation's largest cable operator won't push for hefty charges for heavy users of its broadband service, despite recent Federal Communications Commission moves that would appear to open the door for price increases." Great, but for how long? Until the merger is approved, for one year, forever? Sometimes you wonder if these types of pronouncements are more political than true. Just like a politician, much is promised, but less is delivered. Let's just not be naive to the rhetoric.

TV Advertising Not Dead

Despite multiple screens that access video programming, the big screen in the house (in the living room, bedroom, kitchen, or perhaps in all three rooms) remains the best experience to watch video programming. HDTV sets, DVRs, sound systems, and such all make the home viewing experience ideal. And the consumer agrees. "Mr. Wieser (Brian Wieser, global director for forecasting at Magna Global) said he foresaw no dire effects on traditional television from the growth of what is known as over-the-top TV, which is delivery of programming through the Internet".

And because TV remains popular, TV advertising is also doing well. "TV is, by his estimates, still gaining share of the overall advertising market, he added, to 40.7 percent in 2010, from 37 percent in 2005." Certainly, slow improvements in the economy are also helping other mediums as well, including print. But the fear that TV's share would erode from computers, smart phones, or tablets, may not be true. While these devices provide flexibility of viewership, they more likely increase viewership usage, not replace the TV set.

With tax cuts being extended by Congress, and more disposable income in the hands of consumers, more ad spending should occur to help push dollars from the wallet into business hands. And with more consumer spending should come more tax revenue. Television programming remains healthy; perhaps another reason Comcast wants to buy NBC.

Free HDTV

What is old is new again, especially with a tight economy. Consumers are rediscovering the rabbit ears, although this time it is to receive digital broadcast signals. "Some viewers who have decided that they are no longer willing or able to pay for cable or satellite service, including younger ones, are buying antennas and tuning in to a surprising number of free broadcast channels. These often become part of a video diet that includes the fast-growing menu of options available online."

Yes broadband is more important to the consumer than cable programming. And because of Hulu, Netflix, and other web video providers, there is satisfaction with the choice. To compensate, Time Warner has built a new tier at a lower price, offering connection to broadcast and some inexpensive basic cable channels. A downgraded customer is better than one that leaves entirely.

In a separate article in today's NY Times, ESPN conducted a study that proved that cord cutting was not a problem. "The research comes from the same sample that Nielsen uses to project TV ratings. Nielsen verified ESPN’s findings. Similarly, data from the research firm SNL Kagan found that 119,000 customers dropped their cable or satellite subscriptions in the third quarter of this year. There are about 100 million subscriptions nationwide."

Except, look deeper into the analysis, and perhaps there may be a concern. Today's consumers are leaving cable, for telco and satellite. Why? I imagine that their competitive pricing is lower. For networks like ESPN, a sub lost to cable is gained at telco and satellite growth. Subscribers will gravitate to better value. And as TV manufacturers and gaming platforms continue to build easy access to web programming, consumers will eventually gravitate to these choices in greater volume.

So today, the numbers looks low. But like the boy that stuck his finger in the dam to stop the flow of water, other cracks soon develop and the hole gets bigger. The flow moves from trickle to small stream. Programmers will be hurt less than cable companies in the current cord cutting analysis. But it is a trend that will only keep flowing.

Sirus Rumor

Not that I believe it or even think that it is a good fit, but the rumor is that Howard Stern will leave Sirius for Apple. "According to the rumor, Howard Stern is about to sign a contract with Apple for $600 million over three years to host a new internet show over iTunes." Perhaps too, this rumor is meant to encourage Sirius to renegotiate a competitive offer. We will jsut have to wait and see.

Netflix vs Hulu

The battle for online content continues to intrigue us, both for cable companies offering access and those outside the cable cord. The two most mentioned are Hulu and Netflix. Hulu is a partnership of content companies while Netflix works alone. And Netflix is seeing an opportunity through streaming to be more than a DVD provider. In fact, the real play is access to current TV shows not yet on DVD. "The company is in talks with studios about gaining access to current episodes of primetime shows and is willing to pay between $70,000 and $100,000 per episode, according to a person familiar with the matter. Netflix had no comment."

For content creators and distributors, more platforms likely equates to more revenue. Fox and NBC can sell their networks to cable, sell their shows to Hulu through their partnership, and sell again to Netflix. And while some consumers may cut the cord to cable for broadband only, others may actually keep their cable cord and own a Netflix subscription. Dollars are spent and content companies get richer.

Except sometimes new distribution platform upsets an old one. As an example, look at the shortening of the windows from theatrical to DVD to on demand. Fear arises that monies from one platform will simply move over and that additional dollars will not be generated. Or worse, that profits will fall. For the TV market, a similar problem exists. "The studios that supply the networks with shows argue they own the streaming rights to in-season shows. But the broadcast networks that make a profit from repeats -- and stand to lose audiences, ad dollars and syndication revenue if viewers can see those same episodes on Netflix -- argue they control the rights." The rise of streaming can hurt syndication. Still as we have learned from change, the transition is never easy. But if you don't you risk the loss of the entire business model.

Streaming is here and there is nothing to stop it. Syndication has already been hurt by the rise of cable networks, but it still exists. Streaming will coincide with syndication, it will just alter the playing field a bit more.

FCC Again Pushing Net Neutrality Proposal

A topic that will not go away, net neutrality remains a key issue to the broadband highway. "At the heart of his (FCC Chairman Julius Genachowski) proposal are two broad ideas: 1) ISPs can’t block content or favor one service over another, but 2) variable pricing based on consumer use is OK. So equal to all but fees can benefit some over others. Is it open or not. Or can ISP providers choose how to manage traffic flow. And ultimately, why can't the consumer decide which broadband provider best serves their need. Encourage more competition at the ISP level, whether wireless or wired, so that ultimately, competition not regulation, is the ultimate decider. By lowering these barriers to entry, through tax breaks and other means, a fair market run by many will favor the current monopolistic tendencies that exist today.

Sirius Shares Good News

Tons of good news coming out of SiriusXM recently. On the content front, the NFL deal was renewed for 5 years and a new personality joins the team, Dr. Laura Schlessinger. Hopefully a Howard Stern announcement will come shortly. On a subscription front, SiriusXM has surpassed the 20 million subscriber mark in the US. As the economy slowly improves and the Holiday Season is now around us, perhaps the gift of a Sirius subscription will push this number even higher.

Change Can Be Costly

That Barnes & Noble is trying to change its business model to meet a changing world is admirable. But change is difficult and sometimes costly. The consequences of doing nothing can be costlier, even resulting in bankruptcy. The landscape is littered with retailers that didn't change - Tower Records, HMV, Blockbuster, and many others. And don't forget those still mired in muck and likely to be added to the list - companies like Borders. So that B&N hqave invested in digital technology and specifically the Nook, is at least an attempt to stay relevent and around.

"The New York-based book chain -- headed by controversial founder and Chairman Len Riggio -- said yesterday the handheld device has quickly captured a 20 percent market since its launch last year, despite stiff competition from Amazon's Kindle and Apple's iPad. Nevertheless, the Nook's quick growth has come at a price. Yesterday, B&N reported a wider-than-expected quarterly loss, and said losses for the current fiscal year could surpass $50 million -- twice as steep as the previous forecast -- as B&N invests heavily in the Nook." Yes, success does come at a price. And a combination online and brick and mortar store can work. Apple is proving that.

B&N has invested in a new business model and must continue to follow strategies that merge the success of the Nook with its store. Game Stop uses free downloads when you visit their store with your game device. B&N can develop other motivations to assure that customers enjoy the advantages of both an on-line and in-store relationship. Other ideas might require a shift in inventory to include new lines, online couponing redeemable in store, gaming, etc.

Staying the leader is never easy, especially as external market forces change. The transition for B&N may be costly, but in the long run, it may be what ultimately keeps them alive and successful.