A Digital Life Means No Anonymity

We seem to mind less and less that we are being tracked.  Our movements, our likes, and yes even our reading habits are being analyzed over and over again.  "The major new players in e-book publishing—Amazon, Apple and Google—can easily track how far readers are getting in books, how long they spend reading them and which search terms they use to find books. Book apps for tablets like the iPad, Kindle Fire and Nook record how many times readers open the app and how much time they spend reading."  And yet for the convenience of e-reading, we seem to be okay with being tracked.

Now the argument is always that all the data is aggregated and that individual usage remains anonymous, but one has to wonder for how long.  The need for targeting may start out wide but eventually it will begin to move to the individual.  Should we be paranoid; probably not.  But we should be able to opt out.

Would Consumers Drop Their Cable Provider If They Didn't Carry Certain Networks

What if you found out that some of your networks were no longer to be carried on your current channel line-up? What if you were also told that as a good customer, you would immediately see a drop in the cost of your cable bill, say $10 a month, and a commitment to lowering your cable bill by only bringing you a smaller but more favorable line-up of linear networks?  Would you immediately call another platform provider that overbuilds your community? Would you yell and scream but ultimately do nothing with your current cable operator? Or would you thank them for finally getting that rates need to come down in order to keep their customers happy?

Well the test case could be just around the corner.  According to Multichannel, both Dish Network and AT&T U-verse could decide that rather than keep negotiating a lesser license fee increase that they will simply drop all the AMC Networks from their respective line-ups after June 30.  That could mean no AMC, no WE TV, no IFC, and no Sundance Channel.  For AT&T, it is about the license fee increases being proposed for the networks; For Dish, the issue is more than price, it is about the bitter relationship with its former parent company, Cablevision, and their VOOM business.

Could AMC Networks become the test case that cable operators will use to determine what channels they must carry on basic that may affect carrier switching or total cord cutting?  Are these operators willing to take the risk or will it end up like all other negotiations where eventually a deal is hammered out and the networks remain on the air?  AT&T may ultimately find a financial solution but I believe that Dish could just test a scenario of doing without.

Today Show Needs To Change Even More

Today Show finally officially announced this morning that Ann Curry will be stepping away from the anchor desk and pursuing more journalistic endeavors inside NBC News.  As an avid Today Show viewer, Ann never made a strong impression as a co-host, neither jelling with Matt Lauer new carrying well the softer, humanistic pieces. It was simply not a good fit and created some cringe-worthy interviews.  Frankly, not all Ann's fault, wrong person for the wrong segment.

But Ann isn't the only problem with the Today Show.  Look no further than their weather person Al Roker and there lies additional blame.  His personality overwhelms the broadcast, his segments too much about him and less about the weather.  Among his signature bits, "Sunday, Sunday, Sunday" and " These are my people" are annoying at best, but over the top mainly.  He is in fact, best enjoyed when he plays less bombastic and loud. Willard Scott may have been the role model for Al, but Willard never seemed to overwhelm the show like Al always tries to do.

Lastly, changes in the hosting should also go along with changes in the format back to a more newsy approach in the first hour, less so in the second hour.  Sure an interview with a guy that screams on a roller coaster is cute but not worthy for a first hour newscast.  There must be something better to put on.  Pick your segments more wisely and put the human interest and celebrity spotting into hour number 2.

Change for the Today may not be easy but it sure is necessary.  The moment people become disenchanted they break away from their routine and try another show.  Winning back viewers will not be easy, especially if they have found turned away.  Make us like you again, make us respect what you are telling us, and treat us to stories that define best what you want to become.  The Today Show has a long and storied history, let's get back to what makes it click.

Cable Networks Believe Movies Stop Cord Cutting

An article in today's Paid Content states that today's basic cable networks believe that movies on their network help to keep viewers from dropping their cable subscription.    And while I love a good laugh, I don't see any logical correlation between the two.  Here's the quote "As basic cable original series prove to be important product differentiators for over-the-top services like Netflix, some of the networks that produce these shows are actually relying more on high-priced theatrical movie acquisitions to maintain or increase their subscriber counts and drive ad revenue."  

Movies are indeed a comfort staple on TV.  Put a compelling one on and sure enough viewers will stop  and view; it may bring ratings, it may bring ad revenue, but it is not the stickiness that keeps consumers subscribed to cable.  With many of these same titles available uncut and commercial free elsewhere, viewers are not subscribing just so they can see an ad every 5 minutes or a constant bug in the corner of the movie promoting your channel, or worse, a pop up announcing that a new show is coming up next.  Those in fact make me consider dropping cable to find the same movie without interruptions or distractions.

What does keep consumers from cutting the cord, live programming, especially sports, that are not available easily on the web.  Exclusivity of a show not yet available online.  Differentiation is key and movies are not differentiated especially when they are available on so many other platforms.

News Corp To Split, Like Viacom and Time Warner

It seems that News Corp will be taking a page from the divestiture handbook and split itself in half.  Like Viacom and Time Warner, the notion that bigger is better is not paying off and value can be best derived from splitting itself in half.  So where to make the cut?

"News Corp. is mulling splitting its 20th Century Fox film studio, Fox broadcast network and Fox News channel from its newspapers, book publishing assets and education businesses. News Corp.'s publishing assets include The Wall Street Journal, the Times of London, the Sun and The Australian newspaper, as well as HarperCollins book publishing."  So on one side are the future growth businesses with high potential profit margins and on the other, the older print media, with declining revenues and unsure growth.  And by splitting out the two businesses, the hope is also that it unleashes higher stock market valuation.

And yet both sides are content creator businesses, one more in the video side while the other is in print.  But doesn't print hold future promise in digital once consumers fully adjust to the transition of receiving its printed content exclusively through tablets, readers, and other online platforms.  Won't News Corp be missing out on the synergy that each side of the business brings to the other or is it true that big businesses just can't get out of their own way in making this kind of synergy effective.

Perhaps the challenge of companies getting to big in size is that they lack the flexibility and the focus to adapt quickly to changing landscapes and adjust more quickly.  By trimming down, management can better focus on their business and respond more quickly to new opportunities.  Is splitting in half enough or should they split again into even smaller pieces?

The other thought is that News Corp owner, the Murdoch family, may simply be seeking to use a split as an opportunity to divorce the phone hacking drama of its newspaper empire from its broadcast and movie empire.  And once the two businesses are separated and values are unlocked, the newspaper side of the business could be sold for an attractive price.  For now, we focus on the split, but its what they do next that really matters.

Apple Motorola Patent Dispute

Despite the Federal Court's dismissal of the patent lawsuit between Apple and Motorola Mobility, " the International Trade Commission plans to review its own related ruling that the Mac, iPhone and iPad maker is infringing on a Motorola-owned Wi-Fi patent. ... With the ITC revisiting its own ruling, Motorola may find that it has lost yet another potential tool in its fight against Apple."  Does Apple owe any license fees for use of patents; are Motorola's claims untrue?   As technology continues to grow, we are seeing more and more of these types of claims.  And by the time they get settled, there is more chance that the technology has been replaced by something newer and different.

Forcing A la Carte Cable Programming Would Hurt The Cable Industry

Without the packaging of multiple cable networks at one monthly subscription price, most cable networks would fail to reach a large enough audience to succeed.  Not enough license fees, not enough advertising revenue, and not enough accessibility to build an audience and get a Nielsen rating.  "If the U.S. government mandated that TV channels be sold individually, only five to 10 traditional TV networks would survive -- destroying up to $300 billion of value, endangering some 1 million jobs and curtailing consumers' video choices, according to an analysis by Needham & Co."  So why can upstarts in the digital web space survive, less capital and fixed expenses, and small means more flexibility.  Their returns are smaller but such is the case of an upstart trying to change the system.

Consumers may desire paying less for cable, but it is the current system that pays for the content that ultimately finds its way from TV to the web.  Changes in programming are happening thanks to a free economy that  encourages competition and new forms of competition.  But this change must happen over time and not be forced by government intervention.  Letting natural market forces change the nature of how and  where people consume content will ultimately shift and move the content model to other technologies and pricing models.

Does Your Cable Operator Provide TV Everywhere?

According to the research, only one in five cable customers know that their provider offers a TV Everywhere experience.  What that means is that few current cable customers know that they can access TV shows through their cable provider's apps on mobile and computer devices.  Not a good sign for those providers that hoped that by finally offering a TV Everywhere experience, their customers would be less likely to cut the cord and go to the web.

For me, I do know that my cable provider offers shows through their app but I, like I assume most others, have gotten conditioned to look elsewhere for my TV Everywhere content.  With iTunes, Hulu, YouTube, Netflix, and others, my cable app is the last place I would think to go too find content.  Add to that my MLB  access and my TV Everywhere experience seems almost complete.  It seems the real challenge for cable operators is that they are so late to the game.  Dish delivers the slingbox experience which makes their access to linear and DVR programming appealing; other cable operators have been reluctant to offer a similar experience.

The other issue and one that really hurts the cable operator today is the rising costs of a cable subscription.  "It’s all about dollars and the perception of value. Cable subscriptions declined 2.7 percent in the first quarter, according to Bernstein data, as cash-strapped consumers look for less expensive TV viewing alternatives."  By not building a differentiated product, consumers can get a similar viewing experience at a much lower cost.  For them, cable programming is a commodity that can be served anywhere.

And so cable operators are facing some real challenges, a service that has lost its value proposition, a product that  is being served cheaper elsewhere, and a next generation consumer that is becoming more oriented to over the top programming.  For cable operators, they may soon find themselves considering a change in the business model, to a dumb pipeline with wired and wireless access for a monthly fee.  With declining profit margins the cable subscription business may finally be losing some steam.

ls The Microsoft Surface Priced To Fail?

The rumors continue to flow about the Microsoft Surface.  Where will it be sold, how can it connect, and how much will it cost.  So the news that a WIFI only version will be the first released and priced at a whopping $599.  Certainly not a price point that will excite too many possible consumers.  "Throw in the fact that one new estimate shows the battery life on the two tablets will fall short of the competition, and Microsoft's new tablets start to seem like a much tougher sell."  It starts to make the  tablets from Amazon and B&N far more attractive.

And what should Apple due to beat Surface to the punch; how about add apps that bring Microsoft Office to the iPad.  Already, Business Insider has an article on a free app called CloudOn that brings all those features of Office to the iPad and Android tablets.  For Apple to highlight and market that app on iPads prior to the release of Surface could just be its nail in the coffin and make the Surface DOA.

Forget The 7 Second Delay, Cursing Is OK

What is indecency?  A curse word, a little nudity; to some, it is acceptable, but to others it is not.  And while we as a society seem to become more at ease with public profanity and nudity on HBO, we still have the FCC trying to police the broadcast airwaves against their version of what is indecent.  Well, at least for the  moment, it seems that they have been overruled.  "The Supreme Court on Thursday declined to address whether the government still has the authority to regulate indecency on broadcast television, but it ruled in favor of two broadcasters who had faced potential fines for programs featuring cursing and nudity on narrow grounds."

Based on these indecency cases, some of which look to be a decade old, the fleeting use of cursing, some of which occurred  during live broadcasts are not subject to any FCC fines.  I guess that now means that there is no need to institute a 7 second delay on live sports or award shows.  So now that football star or celebrity can drop an F-bomb at will.  And Janet Jackson should have no trouble exposing her other breast at halftime; here that Madonna.

With technological innovation enabling video across multiple platforms, not just broadcast, but cable and the internet, the rise of language and nudity is everywhere.  So why should these cases even be heard.  The gate has been wide open for years.  “'In my view, ” Justice Ginsburg wrote, the Pacifica decision 'was wrong when it issued. Time, technological advances, and the commission’s untenable rulings in the cases now before the court show why Pacifica bears reconsideration.'”  In light of changing technologies and society morals, the FCC has lost its focus.  We may wish for moral decency, but free speech ultimately endures.  Perhaps the focus should instead be in campaigning for the return of civility.  Not in wasting taxpayer money on regulating cursing.  You missed that boat a long time ago.

Today Show Upheaval

While it does not yet seem to be confirmed by NBC, the rumor mill is abuzz that Ann Curry's days as co-host of TODAY are numbered.  Not since the days of Deborah Norville have we had such trouble with the morning show.  Consumers, heck most human beings are uncomfortable with change.  Only when it is shown to be better, faster, easier, that we finally let down our guards and make the change a permanent choice.  TODAY show is facing that challenge now; will whoever replaces Ann be a better fit and a more preferable host to keep its audience happy.  Or will it encourage sampling of other network morning shows.

For NBC, host challenges seem to be following them.  It's only been a few years since Conan - Leno was the  front page issue.  And while WNBC is a NYC station, its news program just wen through its own shake-up last week with the departure of Sue Simmons from the evening news, only to be  replaced with a younger, cheaper version of herself.  As change is uncomfortable for people and viewers like the familiarity of its hosts, the acceptance of a new host to replace the old always comes with possibility that  viewers won't stay through the switch.

For WNBC, the choice was perhaps a financial one; for the TODAY show, it may be more about the loss in viewership and the need to recapture them through a host switch.  It eventually worked for TODAY Show when Katie Couric came on board and the audience loved her.  For Ann Curry' successor, we can only wait and see if the same thing can happen.

Time Warner Cable Would Like To Kill DVR Functionality

Enjoy fast forwarding through the ads on your DVR recorded programming, Time Warner Cable may just be trying to thwart your efforts.  "The patent, which lists Time Warner Cable principal architect Charles Hasek as the inventor, details how the nation's second largest cable MSO may be able prevent viewers from skipping TV commercials contained in programs stored on physical DVRs it deploys in subscriber homes, network-based DVRs and even recording devices subscribers purchase at retail outlets."  Good news for advertisers, bad news for consumers.  And if successful, they could then license their patent to other cable operators and change the landscape completely.

Time Warner Cable may be reluctant to use too quickly, although they do disable fast forward on their exclusive "Look Back" and "Start Over" features. For overbuilders and satellite providers, the offer of a DVR with a more consumer friendly DVR could be the impetus to cause more subs to leave Time Warner.   In fact, it could make Dish's Hopper DVR that much more desirable.

TWC isn't the only operator trying to salvage the advertiser value in video programming.  "Comcast  recently submitted a patent application that details how it could deliver alternative commercials to subscribers that hit the fast-forward button on their remotes to skip ads."  Or an ad being placed over an ad being fast forwarded through.  We may need to go backwards and start recording again on a VCR so we can retain control over our fast forward functionality.

Is Nook Decline An Indication Of Trouble?

Sometimes it is hard to see the forest through the trees; with the latest quarterly decline of the Nook, one could ask if this is part of a product change or a consumer shift.   Sales for the year rose from the year earlier, but sales for their fiscal fourth quarter declined.  Was the decline due to the introduction of a newer model and consumers waiting to buy it or due to a shift from e-readers to tablets?  Now that digital has been broken out from the brick and mortar business, investors can see more clearly which segments are rising and which are hurting.

More interesting is the effect the future introduction of the Microsoft Surface has on the tablet industry this year.  With Apple, Amazon, and Barnes and Noble competing in the tablet space, Microsoft Surface could take away share from these guys.  With Microsoft's investment in B&N, should there be more synergy.  The Nook app store running inside Surface or sales of Surface at all B&N bookstores.  It makes me wonder, are they partnering or are they competing?

Cord Cutting Stats Show Rise in Free TV

Today's NY Post article continues to confirm that consumers are pushing away from cable subscription, especially given the current economy.  "Nearly 18 percent of all US households with TVs are watching old-fashioned broadcasts delivered for free over the airwaves, up from 15 percent of homes last year, according to research firm GfK Media."  This 3% rise from last year follows a rise of 1% from the year prior.  With cable costs rising and digital antenna and online providing a lower cost alternative, this may be the start of a growing trend.  Should we find that next year, the increase in over the air rises greater than 3%, then we can clearly say that this shift is becoming a growing trend.

But cord cutting is only one indication of trouble in cable subscription.  The other is cord shaving or cord shifting, the reduction of services to lower monthly charges.  "GfK’s report also found that 16 percent of households downgraded TV service this year through March, while only 11 percent of TV households said they had increased service."  Is this a trend too, probably so.  When the  economy eventually does improve, it will be interesting to see if these same households go back to cable again or have found enough satisfaction from over the air and online.  I suspect that they will.

Microsoft Announces Surface Tablet, But What Does It Do

The announcement of Microsoft's latest tablet, Surface, seemed to follow the Apple cookbook, little notice, no advance word, and then the talking heads.  Microsoft seems to be embarking on more of a follower strategy where once in their life cycle they were seen as more the leader.  In this case they are copying the Apple playbook and may soon decide they need their own retail presence.

What surprised me most about Microsoft's new tablet is that I get very little about what differentiates it from other tablets, most especially the iPad, and what unique benefits it offers to consumers.  "The software giant could incorporate its Skype Internet phone software in a tablet, which could make for a compelling rival to Apple's FaceTime video-calling feature on iPhone and iPad. And integration of Microsoft's popular Kinect camera, used on Xbox, could give a tablet an unusual twist — voice and motion controls."  But none of this seemed to be confirmed attributes of the Surface.    How strong will the synergy be to other Microsoft operating system PCs; how quickly will a back office app store be started to provide the applications to make the Surface function?  Will Microsoft hold off on an iPad friendly Office suite to give its Surface an extra edge?

Some speculate that the USB port on the Surface gives it an immediate edge.  Apple continues to believe that the cloud and wireless are the ideal connections.  As more and more devices come equipped with blue tooth, the need for any wired ports may become ancient history pretty quickly.  As for the future of the Surface, we will wait for its actual release to determine if it is the next Xbox success or Zune failure.

Microsoft Tablet - More To Learn Today

By later this afternoon, we should all finally learn what Microsoft's announcement will reveal and the plan for a tablet should be confirmed.  For now, speculation is that it will align with their recent investment with Barnes and Noble and synergy with their Xbox product.   The Xbox makes perfect sense as I speculated in an earlier blog.  What capabilities B&N bring are less known; could it be that it incorporates an app to read Nook purchased books, possibly.  Or that it will use the retail locations of B&N to sell its tablet; certainly not an exclusive relationship as I'm sure every other electronic retailer, Best Buy included, that will also want a piece.

Is Apple worried, of course not.  Without an engine of content behind it, like the iTunes app store, Microsoft will have a lot of catching up to do.  The Xbox angle will help, but I wonder if it will be enough.

Will A Microsoft Tablet Perform Better Than Their Zune?

Microsoft is scheduled to make a big announcement on Monday.  And the advance word is that it will be a tablet, competing with the Apple  iPad and others.  While historically, Microsoft has licensed it's software on other products, the  plan may be for Microsoft to manufacture its own tablet.  The question is, can Microsoft catch up to Apple or will this attempt be as unsuccessful as their Zune product, an iPod wannabee?  So far the track record for Microsoft hasn't been good, but the mantra must be, never stop trying.

"The problem with this strategy in the tablet market is that Apple and Google have disrupted the business model.  Google offers its software for free, and its hardware partners struggle to match Apple on the price and quality of the iPad."  For Microsoft, the challenge must be to bring something new to the product line that competitors haven't done before and to make it better.  I can imagine that one way to take a bite out of Apple would be to price its table noticeably lower than the iPad.  Second would be to build in unique functionality that interacts seamlessly with its Xbox product.  A second screen perhaps to make game playing even more immersive or controller elements from the tablet to the  screen.  Marketing their tablet to their Xbox loyalists could also help capture a significant share quickly, provided that a needed benefit is demonstrated.

So stay tuned for Microsoft's Monday announcement.  The tablet space is getting more interesting, indeed.

Sirius And Liberty Wrestle For Control

The fight for ownership of SiriusXM continues to play out as Liberty Media tries to buy enough shares of the stock to claim ownership of the asset.  Mel Karmazin, current CEO, has no interest in ceding control and is known for not liking to be less than lead dog in the fight.

"At the heart of the battle appears to be Mr. Karmazin's conviction that Liberty shouldn't get control of Sirius without paying for it."  Which seems to mean that Karmazin is happy to depart if he gets his fair share.  With options currently valued near $170 million, the higher Karmazin can get Liberty to pay for the stock, the more money he can earn.  And while financial reward may not be Karmazin's only win, it sure can lessen the blow of losing control to Liberty.

But it isn't all about the money and for Karmazin, perhaps the question would be, what would the next act in his career look like.  He may not want to start over again with another company and might hope that his work with Sirius can continue a while longer, provided that he can still maintain full control.  But should Liberty ultimately take ownership, that might not be possible.

Sign In With Facebook

It seems every time I open an app, I am given an option to sign in with email or sign in with Facebook.  From TripAdvisor  to foursquare to casual gaming sites, the option to use Facebook seems to overwhelm the page and choice.  And while I am happy to have a single sight to aggregate all my sign ins, I frankly don't want to post everything I do.  A vacation picture, yes; a blog, why not.  But searches for vacation sights, and announcements of high scores seems just too much information that I wish to share.  And frankly simply clutters the data landscape.

So when I do authorize Facebook, I feel the need to go the extra mile; turn off the postings, do not share, and do not reveal.  But sometimes you feel the need to look in from the outside to see that you are sharing only what you wish and controlling the information that you want to reveal.  It seems a tricky business and a fine line.  It seems to be why I prefer when I can sign in with the email address, I do.  Perhaps it leads to spam in my email account, but better than spam to my Facebook timeline.

Cord Shaving or Cord Trimming, It's About Reducing Costs

For a couple years, I've been talking about cord shaving, reducing the subscription fee to cable programming by downsizing.  Today's Paid Content article gives it a different name, cord trimming, but it means the same thing.  Whatever the name, the quest is the same, " if I’m watching my shows on my Xbox 360 and iPad most of the time, why am I paying for whole-home HD DVR service?"  As bills for cable, broadband, and telephone rise, consumers are fighting back.

The easiest may be to drop the wired phone.  If your wireless phone is always on and with you, why a house number.  Second, as the author has found, drop the level of service or negotiate with your provider on the threat of switching providers.  Last, take less premium movie services; let Netflix or iTunes provide you with the movies and shows you want to watch.  They may be last season, but they still entertain.

We may not be able to full cut the cord on cable programming, but we can find the ways to shave or trim our bills by actively seeking these types of savings.

Cable Companies Accused of Antitrust

Are cable companies practicing monopolistic behavior, driving pricing up while limiting smaller programmers and new video platforms from growing?  Today's Wall Street Journal article has the Justice Department looking deeper into these practices.  From talk of lack of net neutrality to pricing, it is reasonable to suspect that such behavior is in fact necessary to maintain the dominance over the customer in an industry that is rapidly seeking new means for distributing content and managing bandwidth.

The cable companies built these digital highways initially for a proprietary video platform; technological changes have enabled content to be consumed on this same highway.  The cable companies want these highways to be a toll road; consumers want free travel.  Cable companies want to control what you view and from whom, consumers like the a la carte choice and free to view model.  And so you have conflict.

Today, that means the Justice Department digging deeper into cable practices including contract requirements that may limit where a programmer can exhibit or how much, and pricing requirements that guarantee they get the same deal as other big distributors.  As the largest distributor, Comcast has the largest target on its back.  Along with this current probe, Comcast is facing additional lawsuits.  "The suit accuses Comcast of violating sections 1 and 2 of the Sherman Act by gobbling up competitors, then overbilling consumers for services."  Now this particular lawsuit appears to have been in the courts since 2003.  The wheels of justice may move so slow that technological change may find a solution before the courts do.

T-Commerce Taking More Shape

See something on your TV screen, click and buy with your remote.  Like the couch on the Mad Men set, click and buy from Crate & Barrel.  It seems that the idea of adding another revenue model off the TV set is taking form and Pay Pal is working hard to build partnerships to facilitate the sale.  Two separate announcements, one with Comcast and another with TiVo, each working with PayPal "to explore enabling new forms of payment on TV".  Exciting stuff.

Will consumers embrace this new method of shopping and purchasing?  "According to a PayPal survey conducted in October 2011, 49% of TV subscribers show an interest in purchasing goods and services linked to the content they're watching on TV, either directly from their television through their remote control, or on a smartphone or tablet."  For me personally, I would be much more inclined to make that purchase off my tablet and reluctant to use my remote.  Half the time, I am unsure where the remote is hiding while the iPad is next to me.  I also foresee the tablet becoming the ultimate remote offering second screen capability to what is on the big TV.

For these companies, working with PayPal seems a nice first step.  I am more intrigued by what Apple has planned for iOS 6 with Passbook.  As a virtual wallet, it could become the way to purchase goods off the TV set, too.  For the consumer, I wonder how many virtual wallets we will be willing to manage.  How interesting the timing of these two announcements.  Online purchasing is taking another leap forward.

Smart TVs Being Shipped But Are They Being Used

TV manufacturers are shipping their newest TV sets with internet capabilities.  These "smart TVs" are becoming the norm of the features of an HDTV set.  "Worldwide, nearly 20% of all TVs shipped worldwide in Q1 were smart TVs, with the highest penetration in Japan with 36% followed by China at 30% and Western Europe at 29%."  In North America, it accounts for 18%.  But just because a TV has these features, are they being fully utilized?

In our house, we are connecting to the web through other boxes attached to the TV.  In fact, for my son, his Xbox is the platform for that connection.  But his and our viewing habits are not limited to the big screen TV.  We are watching internet programming through our iPad and iPod devices.  In fact, for personalized viewing, these mobile devices are more ideal.

As more consumers see the variety, ease, and value of taking video through their smart TV, demand and viewership will increase, cord cutting will be greater, and a la carte choice will become the means for watching individual shows on demand.  At the end of the day, web content will be ubiquitous, across every device in the home, on demand, and easy to view.

Passwords Are Problematic

With the latest news that LinkedIn's security was compromised and customer passwords were obtained, we were again reminded to use different passwords for different sites, to make them a complicated assortment of letters, numbers, and symbols, change them often, oh and yes, remember them all.  And yet how many of us do this?  Worse, the ones we do use, we sometimes forget the password, log in name, or both.  And so despite the security breaches, most of us use one or two or at most three for most of our accounts.  Compromised at one site, obtained for all.

We need a better solution to passwords.  With new touch screens and front facing cameras, other choices may be around the corner.  From face or fingerprint recognition to voice, we need a different way to access our accounts and personal information in a way that cannot be used without us being present.  Are these new methods better; hopefully, so.  It is clear that as banks and financial institutions also find that their client passwords are also stolen, that  other means of verification are necessary.

Passwords don't work because we have a hard time remembering all the different passwords that we create, for work, home, email, bank, subscription services, etc.  The password system is compromised the moment we hand write the codes on our laptop, desk, notes app and other places.  It is worse when the institution that uses the password gets itself hacked and shares those passwords across the web.  So the race is on to find the next model of account verification online.  Hurry, we need it now.

Charlie Ergan Speaks

It's worth checking out the article on Charlie Ergan in today's Wall Street Journal.  There has been quite a bit of press recently on his company, Dish Network.  From his latest DVR that completely hops over ads to his fight with AMC Networks and their former parent company Cablevision over Voom, Charlie doesn't seem to mind a battle. 

Although the article speaks only about his Auto Hop service, he clearly has opinions on the future of TV and advertising.  "With the new service, Mr. Ergen aims to force the networks to develop 'more meaningful' ads, using, for example, demographic targeting of viewers."  But how can networks show more "meaningful ads" if ads are immediately skipped over.  What does Charlie really want?

Perhaps his real point is that the networks are offering the same content with less ads on other platforms, like Hulu.  Viewers, like his children, are bypassing cable subscriptions for the web.  "Mr. Ergen, 59 years old, says four of his five children have stopped paying for a TV subscription, and the fifth is living home."  Viewing habits are changing whether Dish is skipping ads or not.  His ploy may be to find ways to get networks to lower their costs to him so he can lower his costs to subscribers and win them back.  At the end of the day, he certainly has gotten the attention of the network executives.

So what is Ergan's next move?  He is also holding on to wireless spectrum with an opportunity to build out a competing service.  The costs to build are enormous and Ergan may want to consider a partnership with an existing mobile carrier.  AT&T couldn't do a deal with T-Mobile.  Perhaps Charlie can.  The future is two way wireless of voice, video, and data and Charlie Ergan seems intent to compete with a cost effective model. 

As to the networks, the Auto Hop feature is already out of the box.  You can't turn back technology.  Tivo and the DVR was the first step; consumers want to skip commercials.  As Ergan intimated in the interview, a new creative approach is needed.  Less breaks and more innovative and targeted ads could help.  Viewers are changing habits and it is time to take notice.

Tablet And Smartphone Over The Computer

Have you watched  your online usage changing?  Are you tracking how much time you spend on your computer verse the time you spend on your tablet or smartphone?  In a very unscientific approach, I have to admit that I too am trending to far greater usage of mobile devices over my computer.

"More than 2/3 of our time on mobile phones is now used for non-communication activities with the average American spending 94 minutes per day utilizing mobile apps vs. 72 minutes of web-based consumption. Mobile is poised to surpass television as the dominant consumer access point for all media. How we experience life, relationships, entertainment, education, exercise, and work have been completely transformed (for better or worse) because of mobile."

Sure during the day, the PC is on for a number of activities; but the smartphone and tablet become easier to travel with from meeting to meeting and faster to access documents and sites.  In our personal lives, these mobile devices are lighter, faster, and easier to use for search, navigation, and usage.  Our shared experiences still exist in front of the TV, But when we seek an individual experience, or even a shared experience through remote connections, the mobile device is better suited.  From watching a movie on Flixster or Netflix to accessing scores from different games, the smartphone and tablet are the ideal devices. And casual gaming on these same handheld devices only add to their value.

Can companies find the secret sauce to mine more revenue from these mobile devices?  " Today, we've already seen apps disrupt multi-billion dollar industries - gaming, retail, media, publishing, small business, photography, and travel."  The space is ripe for commerce, advertising, subscription, and other revenue opportunities.  And in fact, given the speed of growth, the timing is now.

Why HBO Go Can't Become A Standalone Streaming Service

You may love watching Game of Throne or Girls or any number of movies and specials on HBO.  But unless you buy the premium channel from a cable subscriber you can't get access to its streaming sidekick, HBO Go.  True, "People are sick of paying for cable they never use and want to stream everything on their smartphone and laptop instead."  But at the end of the day, it would not be likely to offer the service without the risk of losing cable fees.  Sure HBO shares its license fees with cable operators.  Once HBO offered a streaming service without a TV subscription, cable operators would seek to drop the channel ASAP.

Take it a step further, HBO is owned by Time Warner which also offers basic cable nets like TBS, TNT, and Tru.  Cable operators might take a vindictive approach, like Dish is now doing to AMC Networks, and move them to a hard to find position, or worse, drop these channels as well from the line-up.  For HBO and their parent company Time Warner, there is far more risk in upsetting the current apple cart for an unproven revenue stream. So wish all you might for HBO Go as a standalone offer, the risk of cord cutting is too great for Time Warner to make a move at this time.

Carriers Dealing With Less Calling, More Mobile Usage

It seems that the rise of smartphones have led to less talking on the phone.  These devices have not become less useful; rather, they provide richer alternatives than actually making a call.  We are texting more, watching more, searching more, and interacting more with our devices, but all at he cost of actually speaking less to others through the mobile device.  "In a sea change for consumer behavior, the amount of time spent making old-fashioned voice calls has fallen every year since Apple Inc. introduced the iPhone in 2007. The rub for carriers is that voice billings still account for about two-thirds of what they charge cellphone customers every month."  So now the talk is on how to continue to mine revenue from these devices.

If calling time is down, the carriers  are seeking unlimited calling as a means to charge high knowing that the average cost per call will grow as usage declines.  In addition, we are faced with data usage charges for are 3G and 4G usage.  If we can't find a WIFI hotspot to communicate through, we will soon end up racking more charges for our data plan.

But why are carriers so concerned about this possible loss of call revenue due to downsizing of call plans, it seems that the majority of revenue still comes from voice.  "The moves have helped data revenue increase quickly, but it still is dwarfed by voice charges. Data accounted for 37% of carriers' $169.8 billion in wireless revenue last year, compared with 12% in 2006."  I guess the expectation is that the rise in data revenue won't offset voice declines.  Still, carriers should be focusing on other revenue opportunities beyond voice and data. From ad revenue to e-commerce, carriers are the conduit to the consumer and as a result have a unique opportunity to communicate and promote new ideas.  It may be a cliche, but as one door is closing, it is important for carriers to focus on the new doors that are opening up in front of them in the mobile space.

Apple vs. Google, like Ali vs. Frazier

Don't we love to watch when two big businesses go face to face.  In the early days their was IBM vs DEC, Verizon Wireless vs AT&T, and now we have Apple vs Google.  Where once these two companies worked along side each other, each operating in its distinct world, today they are in full on assault mode.  "The rise of the iPhone and other smartphones changed all that. Mr. Jobs felt blindsided by Google's push into mobile devices with its own Android operating system."  Now they compete with hardware, apps, cloud computing, and everything in between.

And so to keep striking while they can, Apple is set to displace Google Maps with its own map app.  "In the short term, Google will lose some ad revenue and miss out on data about what local businesses people are searching for—which it uses to pitch retailers on buying certain ads. Longer term, it is likely to hurt Google's ability to generate map-related revenue".  Hitting at the pocketbook is clearly what Apple has in mind.  Once Google entered the mobile space, Steve Jobs was adamant that he would do anything it took to beat them.  Well even beyond the grave, the Apple organization is doing just that.

Once they update the operating software and consumers download the update, Google Maps should be replaced with Apple's own version.  Of course any war is made up of multiple battles.  With maps being the first line in the sand, the question is when will the next battle take place.  Could it be in search, against YouTube, or somewhere else.  The war is on, the first battle is set to begin.

For Fun, Let's Sue TiVo

Has TiVo become the Rodney Dangerfield of the electronic industry; no respect.  It seems that everyone loves to sue TiVo.  Although TiVo likes to sue others, too.  "Cisco Systems this week filed a federal lawsuit against TiVo, seeking to void four of the DVR maker's patents -- including the infamous "Time Warp" patent that Dish Network was found to have infringed -- opening a new front in the litigation battle over cable set-tops."  Is there a real case here or is it an attempt to continue to delay until frankly the technology becomes outdated itself.  If anything all these lawsuits will certainly keep the lawyers busy and happy.