Have We Finally Seen The End Of The Yellow Pages On Our Doorstep

They still get delivered to our door but for how much longer.  The last time they have been opened or even touched is when I recycle the older one and replace it with the recent arrival.  Today, any searches for information is online and the  yellow pages directory has become a distant memory.  "But now Yell wants to go one step further. Like so many other fundamentally challenged businesses, it wants to break with the past and move on, by rebranding the company 'Hibu'."

It seems that the Yellow Pages, or the various names that it has been called, has been dead for quite a while.  Online websites have not only provided me with the names and numbers of businesses that I needed to call, some sites have also provided "local" recommendations based on user message boards and feedback.  Convenient and helpful.

While I have not been able to control the curbside delivery of the yellow pages, I have been able to feed it directly to my recycle bin.  For me, the yellow page transition has been too little, too late.  Can they start from scratch to recapture this lost marketplace; doubtful.

Facebook Wants To Build A Phone

Want more competition in the mobile space?  Consider this, Facebook wants to be more than a pretty face in the software space, they want to be in hardware too.  Following the  Google lead, Facebook seems to be gearing up to produce its own mobile phone.  While Google bough Motorola Mobility to make its own phone, Facebook "has hired more than a half dozen former Apple software and hardware engineers who were on the iPhone, and one who worked on the iPad, to build the Facebook Phone, The New York Times reports."  First a phone, then an app store.

Is there room for Facebook and can they bring something new to the table?  We love competition so any new entrant means more innovation and that keeps the industry fresh.  Whether they can succeed or not is another question.

My Home Could Use The iHub

We are an Apple household, with a desktop mac, laptop, iPad, iPods, and iPhones.  But as we use them, each product has become more a single user experience and it is hard to share notes, calendar items, specific photos, and other information easily within the family.  We are missing that hub; a device that incorporates the family information and manages it among our individual data.

Now according to Forrester Research analyst James McQuivey, such a product may be next to emerge from the Apple labs.  As " McQuivey wrote. 'Instead of selling a replacement for the TV you just bought, Apple should convince millions of Apple fans that they need a new screen in their lives. Call it the iHub, a 32-inch screen with touch, gesture, voice, and iPad control that can be hung on the wall wherever the family congregates for planning, talking, or eating.'”  I want one provided it can do the things I need to manage.

My ideal screen would be iPad like but easily hung on the wall.  A constant connection to a wall plug to assure it is always on.  It would replace our monthly calendar where we still hand write kids school activities, school lunches, little league games, and other obligations, like the dinner out, bbq with friends, street fairs and more.  How nice to write it once and share it among all the apple devices.  Integrated with the notes app, but separated for various ongoing lists like supermarket, Target, and Costco, a quick press of the button and we can tell Siri which list to add certain items.  Need to jot a note to the family that someone called or an immediate to do reminder, the screen could be turned into a wipe pad.  Easy to use, simply to work, and practical for the family in so many ways.And when not in use, a great screen to display photos of the family.  Sign me up; I already have a place in the kitchen to hang it up.

Who Wants To Own A Video Library?

At a Paid Content panel, the question was asked, "Is a vast video library worth the time and money?"  From the different panelists came different answers.  For some, the answer is no as a ton of video is old and dated, for others, the historical capture of clips offers a rare peak back in people's careers and growth.  And for others, the choice to even build and organize a digital video library of older content is too expensive and  brings little return. It seems one person's crap is another person's fortune.  Perhaps it all depends on how it can be merchandised and used.

And it seemed that discussion led to the rise of web based platforms verse older video platforms like cable.  “'To launch a cable channel, you need a satellite, a sales staff … you’re in the hole $50 million to $100 million before you even know you have an audience,'” he said Brian Bedol, CEO of Bedrocket Ventures). “'With YouTube, you can be distributed everywhere overnight, and you don’t need to make those binary decisions.'”  True, yet brings more pitfalls.  The lower the costs to enter the market, the easier it is to compete and the harder to break through the clutter.  And certainly the increase in video content across multiple platforms only makes it more difficult to be discovered and watched.

But back to the question of the video library.  For me, the value of a video library depends on its use.  For print publishers seeking to make an impact in the web and tablet space, video is needed to create greater interest in these brands as multimedia platforms.  Libraries of video content that relate to an article augments the value of the printed material and brings synergy between the print and digital platforms.  Video libraries of older content are also a great promotional tool, able to bring viewers up to date on older seasons of shows and move them to watch current episodes on other platforms.  Older videos bring context to newer ones.  And in some cases, older videos become treasure troves of insight as new appreciations emerge.  Of course there is time and money spent initially to categorize and organize the past; but once completed, they are then available and accessible to utilize as the timing, situation, or opportunity fits.

Apple May Be Stealing Ideas From Star Trek

Sometimes I wonder where Apple gets all its great ideas.  Perhaps all the tech geeks are using Star Trek as their inspiration to turn science fiction into science fact.  "There's a chance Apple's new version of Mac OS X, called Mountain Lion, will allow voice dictation from Siri, reports 9to5Mac."  And so the next iteration of the Mac will be able to type reports without a keyboard.  


It reminds me of a scene straight out of Star Trek IV: The Voyage Home, when Kirk and the gang are in present day San Francisco, finding a humpback whale to save the future earth.  In one scene, Scotty attempts to dictate to the computer by speaking into the mouse.  When nothing gets typed and he has to resort to the keyboard, he responds, "How quaint".  As Siri becomes more embedded in all our Apple products, we may find ourselves saying the exact same thing.  I mean, why type when we can speak exactly what we need.

MSO Success Will Result From More B2B Engagements

That cable wire strung across communities, and initially aimed for residences and neighborhoods, might just make greater sense on main street, malls, and other business areas.  While consumers may be cutting the cord and relying more on their mobile phones, businesses need landline phones and web access to meet their business needs.  And cable companies are seeing the  benefits of marketing to the  business community.

"Cable operators' share of the business services market could double to as much as 21% in the next five years, according to a panel discussion at The Cable Show Tuesday."  Good news for cable operators coming in with a competitive product and more to compete with the current telco offering.  In some markets, online required a DSL or dial up, especially when connecting with credit card machines; cable brings an always on connection to improve processing speed to the transaction.  Add that broadband connection with a hard line phone connection and cable can bring more value to the business.  And for those companies that would also like a video connection, cable operators provide that, too. 

TiVo To Add Slingbox Feature

The Mercedes of DVRs is finally adding a very useful feature for the mobile consumer, a Slingbox-like feature to stream live and recorded programming to another device.  Do I sense a patent suit from Dish to follow?  Finally, an easy authenticated device that enables cable subscribers to watch their favorite shows or live sporting events when they are away from their home.  Cable MSOs should be embracing this new TiVo box as they promote their cable subscription, yet few have truly embraced TiVo.  Perhaps because they are an agnostic box, willing to work with any and all providers, cable, telco and satellite.  And that is why the big MSOs have not made it easy to add a TiVo box to the house or to enable it to also access the cable operators on demand features.

"TiVo will debut both products at retail, or through partnerships with multichannel TV service providers including DirecTV, Charter Communications, Suddenlink and the UK’s Virgin Media, later this year."  For those providers that do partner with TiVo, this new Slingbox-like feature is a great added value.

Is Online Video Consumption A Zero Sum Game?

As online video consumption grows at a double digit pace, one wonders if this growth is at the expense of other activities or specifically other television viewership activity.  Are these viewers bypassing traditional TV time for online or tuning in outside the window when they tend to watch TV?  For me, I don't yet believe it is a zero sum game yet.  With access to the internet, employees that never had TV access in their offices now can consume online video on their lunch breaks and other down times.

While some of that video consumption may be at the expense of TV, it is  not yet a 1 for 1 tradeoff.  In fact, some of the  growth by folks like You Tube are at the expense of other online video platforms.  "Music video giant Vevo, for example, saw its unique viewers plummet 10 percent to 49.5 million over the same period, while its average viewership time declined by 41 percent to 57.9 minutes. (The comScore report doesn’t track mobile usage, so it’s hard to tell how many viewers are migrating to mobile platforms.)  Also, Viacom digital, the leader among traditional media companies in the digital video realm, saw its average viewer time drop 27 percent to 58.9 minutes (unique viewers were flat year over year at 41.2 million)."

For content creators, the rise of online video consumption means that the content you create for one platform, television, needs to be accessible on other platforms too.  Where consumers once followed content, content must now follow consumers.  Whether that availability is a subscription experience, an authenticated one, or even free, is part of the broader video strategy a content company sets to fully monetize its video content.  And that is more than just cable license fees; it is also video ad revenue, syndication revenue, promotional support, e-commerce, and integrated banner and overlay revenue.

Today video consumption is not a total zero sum game, but it is certainly leading to that level.  There are only so many hours in the day and only so much time that can be devoted to watching videos.

MSOs Add Another Benefit To Their Broadband Subscription

While cable subscription growth continue to evade the MSOs, broadband subscription has been rising.  To add incremental value to an ever increasing mobile population, the major MSOs will now be sharing access to their WIFI hotspots.  "Under the banner 'Cable WiFi,' Bright House Networks, Cablevision, Comcast, Cox Communications and Time Warner Cable will be able to access WiFi hotspots outside their home market." And as these MSOs cover most of the major DMAs, this shared access is certainly good news for its subscribers.

So a quick look at the list and the notable missing MSO is Charter Communications.  Was Charter even approached to join the group or purposely excluded?  And what about the smaller MSOs, fighting hard against the same competitiors as these major entities.  Will folks like Mediacom, Atlantic Broadband, and others get an invite to this WIFI table?

Certainly, for this initial group of 5, a shared WIFI approach is a smart marketing move to compete against its rivals.  As we utilize more mobile devices, access to WIFI is critical; especially, as cellular data usage plans causes us to seek WIFI alternatives so as to not go over our plan limits.  And with profit margins high on broadband subscription, this added value should be actively marketed to assure even more consumers subscribe.

Microsoft Follows Apple Into Retail

Microsoft seems to have Apple envy.  While Apple leads and innovates, Microsoft seems to follow and do things second.  When Apple decided to open retail stores, Microsoft must have been chuckling at such an expensive and off brand goal.  Apple proved wrong and turned their retail business into another strong revenue stream.  So now Microsoft is following the Apple playbook and opening stores as well.

As I've learned, Microsoft tried a decade or so ago to enter retail but didn't succeed and the business closed.  "Two years ago, Microsoft decided to get back into the brick and mortar retail business. Now, it is preparing to open its first New Jersey location on the second floor of the Bridgewater Commons mall, right down the corridor from an Apple Store."  Can they get it right the second time around, who knows.

I also wonder, why open locations when your recent investment in Barnes & Noble offers an opportunity to bring Microsoft stores into well trafficked locations.  I see great synergy should this model prove effective.  Microsoft's other challenge is that they are software, not really hardware.  While Apple is a closed technology, Microsoft puts their software into multiple product lines.  Hopefully Microsoft can find the magic to make their locations inviting and profitable.

Could You Tube Replace Cable TV?

The competition for viewer eyeballs continues to ramp up. Programming is moving off TV and being watched across multiple platforms via IP streams.  And the long tail of broadband programming is growing, not just with user generated content, but with professionally produced, high quality, long form shows.

Both Hulu and Netflix have announced original programming to bypass linear TV and go  directly to the web.  You Tube has been busy building original channels that follow the classic cable niche model with web networks devoted to specific interests.  "Which is why the Food Network and Cooking Channel veteran has checked out of network TV to oversee the launch of YouTube's latest original content channel, HUNGRY. The channel, which goes live on July 2, is expected to feature a freewheeling blend of how-to and celebrity-driven food videos."

Cable, as well as broadcast, programmers have noticed a drop in aggregate viewership.  Viewers are spending more and more of the video watching time on the web.  While some of it may be shows that originally aired on TV and other views are still with viral UGC content, more time is being devoted to watch professionally produced web channels.  Should Scripps be worried that their Food Network viewership could fall as consumers move to these competing channels?  Is that enough motivation to make sure that cables's linear and on demand product is accessible off the set and on the web?  Or will costs of cable subscription hurt the authenticated, TV Everywhere model, as cord cutting shifts off cable subscription to web subscription?

As more professionally produced content with more known talent invade the web space, a shift of viewership seems inevitable.  For pioneers in the web video space, this could just be the next web "golden age".

Does Facebook Offer A Strong Revenue Model?

With Facebook's IPO happening while simultaneously General Motors is pulling out their advertising dollars raises an interesting question.  Does Facebook have a long term growing revenue model?  GM says their ads didn't work on FB and so they are being pulled off.  "GM will continue to promote its products on Facebook, but without paying the social-media company, the GM official and other people familiar with the matter said. Many companies maintain free Facebook pages."  But will other companies follow suit or are they seeing a ROI that GM could not?

At the same time, FB announced that Q1 revenues declined this year from the previous quarter, although they are higher than Q1 of last year.  Personally, I can't say I recall any ads on FB although I sometimes chuckle when I see one of my friends saying they "Like" a product or company.  Should ads get more intrusive on FB, it may cause users to seek alternative social media sites.  One must wonder if an ad revenue model is enough to keep FB a long term "buy".

With its IPO, FB should be flush with cash and might consider acquisitions that expand its reach.  As the editorial in the WSJ suggests, they could consider entry into other businesses.  "The bold approach would be to buy a bunch of media properties as an outlet for targeted ads that the Facebook engine makes possible."  Another push might be into more e-commerce businesses and to be the central place to both buy and share your feedback about certain purchases.

Should consumers prove fickle and grow tired of FB, the concern may be that this is simply another example of the internet bubble.  Premature excitement but not enough tangible results.  As an investor, I am staying on the sidelines, as a FB user, I have watched my usage shift as I've grown weary of some of the changes to the site.

LightSquared Loss Means Less Competition

If only LightSquared could have solved the problems with GPS interference.  If only the FCC actually wanted more competition.  If only more could be done to encourage competition in the broadband and wireless space.  It seems that we have a limited number of choices for broadband and wireless providers.  While not a monopoly, there are clearly only a handful of choices for communication and data.

So it was with great hope that another entrant to the space could shake up the incumbents and provide high speed service to the masses.  But with LightSquared entering Chapter 11 bankruptcy, their time gets less and less.  Can they rebuild or simply sell off assets?   "Bankruptcy 'is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network,' Chief Financial Officer Marc Montagner said in a statement. Reaching agreements with U.S. agencies may take as long as two years, he said in court papers."

For now, there is less competition in the space.  Can LightSquared rise from the ashes or will another emerge to take its place?  For the sake of competition and a free economy, more competition is better for the consumer seeking faster wireless and broadband speeds at lower prices.

Should Apple Make A Television Set?

Yes, Apple revolutionized the digital music space and yes, Apple, did the same with the tablet business, and yes, Apple owns the smartphone space too; but, does Apple really want to become a TV manufacturer?  Sony, Sharp, Panasonic and others are all having horrible years because of the tablet and smartphone space.  So is the TV set space the ideal market to enter?

Could Apple best be served concentrating on their Apple TV box?  Can Apple truly make enough content deals with cable networks to get access to their best programming?  And will consumers trade out their current Hi Def screens for an Apple TV set.  Consumers haven't embraced 3D.  And connected sets are working as a result of other boxes like Xbox and Wii.  Can Apple really revolutionize the TV manufacturing space?

Here's Johnny, Carson Back For One Night

I miss Johnny Carson.  He was water cooler television.  His Tonight Show was the epitome of late night talk.  So  I am excited to watch tonight's premiere on PBS of American Masters showcasing the career and life of Johnny Carson.  Talk about appointment television.

People loved to talk about who was on the Tonight Show and what they watched.  One of Johnny's idols and mine too, Jack Benny, gave Carson great advice.  Let your guests be funny.  Johnny followed Jack's style of the long pause, but never tried to out joke his guests.  The results were great television.  Yes, the guests got the greater laughs but everyone who watched always  referred to what happened on Carson's show. Johnny knew how to interview a guest and how to get the best out of them.   He, like Benny, really understood comic timing.  But as I am sure this documentary will show, there is more to Johnny Carson than what we saw on TV.

Watch Johnny and Ed on PBS. See more from American Masters.

So for those, like me, that miss Johnny Carson, this documentary may bring us back to those golden days and provide us richer context about the man.

Karmazin Feeling Hit on Many Sides Of Sirius

Mel Karmazin, CEO of Sirius, has been feeling quite a bit of heat lately.  With Howard Stern suing him for breach of contract to his former white knight, Liberty Media, trying to wrestle control from him, Mel has been having some bad days.  Of course the first round of the lawsuit went to Sirius, but Howard is pushing back on appeal.  And initially Liberty was told they couldn't take control but have now gone and bought more shares to increase their ownership stake.  The heat has been turned up and it appears that Liberty Media will shortly get their asset and Mel may find himself looking for the next big thing.

Time To Hop Over The Commercial

The VCR was first invented to play pre-recorded programs but became a great opportunity to tape and watch later your  favorite programming.  Some consumers had a hard time setting the clock feature; rather the clock always seemed to be blinking.  The DVR and TIVO made it even easier with no clock to pre-set.  Still, we had to manually skip through commercials to get to the programming.  Now comes from Dish, a new DVR that when set, automatically "hops" over the commercial break to the start of the next program segment.  No additional remote touching necessary.

Certainly, the  rise of technology to enable skipping commercials may rise from the number of commercials and the length of breaks on TV shows.  In most cases, non-programming time is 25% per hour.  The "Golden Age of TV" certainly never had so many commercials.  Consumer and business ingenuity created the solution with the DVR to counter the problem of too many commercials.

And yet, even with DVRs, I notice my own kids too lazy at times to skip ahead.  Despite heavy use of the DVR, once the show is picked, it runs through, commercials and all.  Adults are most likely more fed up with commercials then kids.  They still get information from them, toys to buy, movies to watch, new shows to record.

The "Auto Hop" feature on Dish DVRs just might appeal to those same consumers to lazy to manually skip ahead and willing to pay a bit more for the opportunity to have it done for them.  Heck, my kids sometimes yell out for me to come in to the room to skip ahead even though the remote is within their arms grasp.  So there just may be a market for those that want skipping done automatically.

And how do the content creators and advertisers survive? Better creative, less commercial breaks, product placement and in-program promotion, overlays, and all sorts of technological tricks.  The cat is already out of the bag with regard to the DVR.  "Auto Hop" is just another  feature.  These are results of too many commercials in programs and less time devoted to the actual show.  Why do viewers also like to watch online; less commercials.  Consumers are telling you the problem; it's time to pay attention.

An iPad In Every Size

Despite its share price being off its all time high, Apple continues to deliver. Every quarter, it beats its estimates as demand surges and revenues rise.  The latest speculation that ultimately will make investors smile is the arrival of new products in the phone and tablet line.  "Apple’s next iPhone will reportedly launch in September, and a 7-inch iPad mini will land in August, according to Digitimes."  Rumors also on the next model Macbook and when the Apple TV set will arrive, this year or next, as well as some next innovation that is yet to emerge.  And so the guesses will continue until the formal announcement as to what these next versions will include, faster processor, sharper screen, HDMI connectivity, and better streaming are all in the mix.  All we can do is stay tuned.

Has Content Lost Its King Status To The Audience

Terrific editorial questioning whether Content is no longer the king.  Once content left the linear world and became reachable on demand across platforms, the answer, according to the author was clear.  "No; because content is no longer enough. Content has always been a means to an end. And the end has always been audience."  An interesting analysis now that distribution is becoming ubiquitous and content can be accessed anywhere.  It becomes then the choice of the viewer which content and which distribution platform is to be used in order to be consumed.  And for the ad buyer, seeking to reach a particular segment, knowing where the audience is or how it is being directed to content, becomes the ultimate priority.

But wait, hasn't that always been the case.  The content may not have been everywhere, but it was still the draw that the audience desired.  Deals for distribution platforms are all about having the content that best fit its audience.  Distribution offered potential viewers; content offered the sustenance and the nutrition to consume.  Whether it is food, videos, data or something else.  Add to the mix pricing, packaging, and positioning and you have the basis of marketing.  But content or product is essential to the mix.  Distribution seeks content and audiences seek content where it is convenient and affordable and available to get.

Is knowing your audience essential; a resounding yes.  But the article assumes that content is ubiquitous and that is not the case.  Content remains king because it is how it is packaged, positioned, and priced that will drive the audience to it.  Ultimately, it is having the right content ergonomically accessible with marketing to draw attention to it that drives the audience.

Rutledge Magic Rubbing Off On Charter Communication

As the new COO of Charter, Tom Rutledge had a lot on his plate when he started at the end of 2011.It seems that whatever skills he brought over from Cablevision has paid off.  With Rutledge at the helm, Charter announced  "an increase of video customers in the first quarter of 20,000 subscribers, the first time the cable company has reached that milestone in about five years."  Make that a triple play growth as high speed and telco subscriptions also grew for the quarter too.

Whether it was the direct impact he had or simply the energy he brought to his new company, Charter is looking recharged, coordinated, and ready to tackle its mission.  The hope is that the momentum continues and it is not an anomaly to future subscription losses.

How Many Social Networks Do You Belong To?

As Groucho Marx liked to say, I wouldn't join a social network, or club, that would have me as a member. Of course we all like to belong to the club and for social networking, it is easy to sign up and join.  But is too many, too many?  With so many around and more being created, are we being spread to thin in our social network membership?

We use different social networks for different purposes, LinkedIn for business contacts, Facebook for friendship, Pinterest for scrapbooking, Twitter for random thoughts and links to interesting articles.  And of course there is MySpace, Google+, Ning, Meetup, Plaxo and many many more.

So how many is too many?  If we spend all of our time social networking, do we spend enough time doing?  Can we possibly manage all these social networks or is it time to cut back to a more manageable number?  And can the long tail of social networks exist?  Obviously the answer is yes.  To every unique interest or hobby or passion, there is a social network to share with other like minded individuals.  Within the category of interest, whether it be business, family, arts, dating, etc. there will be the leader and the rest of the pack.  But as long as there is a revenue stream, either subscription or advertising or e-commerce, that can keep it thriving, the multitude of social networks will continue to survive.  Groucho may not have joined the club, but for the rest of us, there are plenty to find, join, and participate.

Why Is Dish Dropping All AMC Networks?

As cable, satellite, and telco cable providers seek to keep subscribers signed on, the concern by some may be that they shouldn't have to compete against web offering the same content. For networks, offering access to programs on other platforms brings new revenue streams but is also argued as a way for viewers to "catch up" on series that they haven't watched from the beginning.  Missed Season 1 of "Mad Men"; rent on Netflix, or others and be caught up to watch the latest season from your cable provider.

So why is Dish Network threatening to drop all of AMC Networks, including AMC, WE, IFC, and Sundance,  channels from its line up? Is it because: 1)  the rates are too high, 2) their shows are available on competing platforms, 3) viewership is too low across the networks, or 4) Get back at their ownership for the court loss they faced regarding the Voom lawsuit?  AMC claims it is #4, while Dish is arguing that it is the first three.

Certainly the first three arguments can be applied to every cable network on Dish and every other cable provider. Arguments regarding rates, exclusivity of shows, and viewership affect every contract negotiation.  Unique to these proceedings is the previous relationship between Dish and Cablevision regarding their Voom partnership, a satellite service that offered 100% original  HD channels. Unfortunately it was a failed business model that was structured in a way that  limited additional distribution.  With our regular channels finally offering HD feeds, these original channels were deemed less valuable and Dish pulled out.  So the  fight with AMC, even though it has spun away from Cablevision, may be a way to get back at its common owners, the Dolan family.

Regardless, these fights between networks and distributors are common place.  They tend to take longer and longer to work out, but eventually they all do.  A fight like this one may take even longer though as it may not be about the business but about personal feelings.

Cablevision Empire May Get Even Smaller

Cablevision is spending more money to retain subscribers and while the cost is high, they did report sub gains while other operators posted sub losses.  But their low cost pricing strategy and high marketing costs were not kind to the bottom line as profit and cash flow dropped.  The result perhaps of a strategy that former leadership chose not to follow and thus have been departing from the team.

Cablevision, once known as both a programmer and distributor, has been spinning off assets to concentrate itself as a pure play cable operator.  First came the spin off of MSG Network, followed close behind by Rainbow Networks, renamed AMC Networks.  And now comes word that its Clearview Cinema movie chain is being pushed out next.  "Chief Financial Officer Gregg Seibert said on a conference call that the company planned to explore strategic alternatives with its Clearview Cinemas movie theater chain, which had 45 theaters in the New York tri-state area including the Ziegfeld Theater in New York City."

For a company that once owned Nobody Beats The Wiz stores, today's Cablevision is looking quite different.  Will Newsday be the next asset to be discarded?  And is all this being done to make Cablevision easier for selling it to another cable operator?  All I know is that there is always something interesting going on at Cablevision.

Content's Long Tail Gets Longer And Longer

New content is competing for consumer attention thanks to the rise of the web.  As broadband speeds get faster, content creators have found they can bypass the broadcast and cable distribution model to get their content viewed.  Many have entered the fray already, from NextNewNetworks, which was acquired by Google to My Damn Channel. Hulu and Netflix has announced new original shows exclusive to their platform.  And You Tube has been churning out more original content as well and now Amazon has announced plans to create new content.  "Starting now, Amazon is accepting ideas for TV shows from anybody who has a pilot script, an idea for five or six episodes, and an Internet connection. Amazon says that it wil be selecting one idea per month to put into development."

But with all this clutter of content, a two-fold challenge remains for viewers, how to find out about shows (recommendations and marketing) and where to find them (which distribution aggregator or unique website). Like our TV line-ups, we will have to surf or find guides to help us learn what is on and where it is located.  The audience to watch all these programs will only get more and more fragmented.  The likely winners should continue to be cable networks, provided they expand their linear and on demand viewing to a TV Everywhere, multi-platform  approach.  But they will see lower ratings as the fringe viewership is swayed to the growing pile of programming now being created for web consumption.  Hence a longer and longer tail of content choices.

The web has clearly lowered the barrier to entry for distribution of content.  It has led to cord cutting and new ways to watch content.  Like broadcast changed  the radio model, and cable changed the broadcast model, so too will web programming change the cable model.  History ultimately repeats itself.

For Comcast, The Growth Comes From High Speed Subscriptions

Just last week, my post on Time Warner discussed the growing value on the pipeline for broadband and telco subscription verse the cable subscription.  Today's news from Comcast strengthens my point.  While cable subscriptions dropped in the quarter, both high speed data/broadband and telco subscription grew.  Like Time Warner Cable, Comcast is watching their cable subscription business decrease as viewers seek lower cost alternatives for video consumption.  Their own broadband pipeline being the ideal means to watch their web based programming from Netflix, Hulu, and others.

As a content producing company, Comcast sees growth from its content creation business, NBC.  With double digit revenue growth, NBC benefits by getting business from its parent company's rivals including DirecTv, U-Verse, and FIOS, as well as from streaming deals.  Comcast subs may be dropping but NBC viewership can be gained from these competitors and other platforms.

Still, for Time Warner Cable, Comcast, and other cable distributors, the value of the business is the pipeline.  While it was initially built for cable subscription, it will one day be overtaken by high speed and telephone subscription.  Taking advantage of the pipeline, cable companies must invest in other businesses that can take advantage of these connections between home and plant.  And adding value by supporting home connections with WIFI mobile hotspots will only increase its demand.

As cable subscription costs continue to rise, consumers will seek ways to lower their bills.  It may be smaller packages of services; it may become a la carte.  As programming license fees continue to rise, the old cable model is breaking apart.  Subscribers will continue to flee the cable model as costs continue to rise. The future is the broadband pipe.

Content Producers Look Like Winners

Earning reports are coming out and the big news seems to be that companies creating and selling content are big winners.  Time Warner is doing well because of its film and TV units. NBC's unit inside of Comcast is also reporting higher than expected earnings.  And even CBS has reported huge earnings increase from streaming fees for its television content.  Content is king.

Perhaps it also reflects a better economy that is pushing rates higher and the  rise of digital platforms and new streams of revenue.  Still, as more content producers like ABC, Fox, and others report, we can truly say that it is good content that is driving the bus.

Is Cablevision In Trouble?

More defections at Cablevision as another top executive leaves the team.  The latest is Barry Frey, EVP of Advance Advertising, who is following David Kline, President of Media Sales, who left last month.  Will the revolving door ever stop?

Also announced the team of Rutledge and Bickham have reunited.  The former Cablevision COO is joining the former Cablevision CEO at Charter Communications. Both now have their same titles at their new cable firm.

Will the reunion at Charter shortly include Kline and Frey?  As the Cablevision senior team members depart, one has to wonder if it is time for Cablevision to finally put up the For Sale sign.  Should Time Warner Cable come in with an offer and try to complete its ownership of the NY DMA?  Or will the arrival of Rutledge and Bickham to Charter give them reason to want an pick up their old system to add to Charter's system list?

Somethings happening at Cablevision to lead to such a mass exodus.  Perhaps we should soon get a whiff of what the trouble is that  is causing all these departures.

Will Microsoft Sell Products In Barnes & Noble Stores?

There are obvious gains for Microsoft to partner with B&N.  It gets a footprint in the e-book space, it offers an app store to compete with Apple, and it eventually puts its new operating system into new devices.  But it also gets access to retail space, in bookstores and especially in college bookstores.  But will Microsoft take advantage of the brick and mortar side of this partnership or are all efforts directed strictly to the digital business?

Just as Apple has gained great traction with its stores, Microsoft now has a retail partners to offer a similar relationship.  Areas can be built up within these locations to sell all sorts of Microsoft products, including its new Nokia phones and XBox systems.  And B&N stores need diversification as physical book sales are declining.  A Microsoft presence gives another push to enter a store.

Shareholders like to look strictly at value that is perceived by spinning off and combining assets. Whether the Nook business is spun off or not for unlocking value may be a financial goal; but, for the overall health of the  business, the synergies of the store and digital presence are key to their mutual survival.