Will Apple Split Its Stock And Go Into The Dow?

Apple is sure in the news lately and not just because of its anticipated fall release of the iPhone 5 and Mini iPad.  And not because of their courtroom drama with Samsung over patent rights.  Now it is will Apple decide it is time to split its stock price and become a part of the Dow Jones Industrial Average.  According to Bernstein Research analyst Toni Sacconaghi, it is being discussed.  "The idea of splitting the stock does not seem to be a religious issue for Apple: the company has actually split the stock three times before, each time a 2-for-1 split – the previous splits were in June 1987, June 2000 and February 2005. One question is whether a two-for-one split would be enough to get the stock into the index without overwhelming other components; you could argue that the stock ought to split four-for-one, or even six-for-one, which would still make it one of the highest priced companies in the index."

Of all the tech companies out there, Apple has been the most fun to watch, both for investors and for consumers.  For now, Apple continues to be questioned on how long it can grow its momentum.  Once everyone has an iPhone and an iPad in their home, what is the next big product that every home and every consumer must have?  It could be the Apple TV or perhaps there is something else being secretly designed.

You Tube Channel Focus Building A Bigger Content Distribution Platform

Google's investment in You Tube continues to grow as it turns You Tube into an aggregated distribution platform of hundreds of channels.  More content, more choice, more eyeballs to online, and more ad revenue.  And perhaps secondarily, an alternative to linear cable distribution.  "The site has launched nearly 100 new channels so far this year, attracting talent such as actor Amy Poehler to create or star in original episodes in an effort to draw new audiences—and blue-chip advertisers."

It reminds me of the early days of cable, as networks tried to appeal to viewers to augment their favorite channels and give CNN or USA a try.  Over time, broadcast viewership has eroded while cable has gained.  Today, it is You Tube and other online platforms that are taking its slice of the share away from cable and broadcast.  Over time, their percentage will also become significant.

As cable programmers and now online programmers continue to learn, what you put on the platform needs to be interesting and it needs to be found.  "The channels themselves, meanwhile, are working to find their place, with a lot of trial and error along the way.  'Just because you build it doesn't mean they'll come,' says former television executive Larry Aidem, talking about YouTube viewers."  But being small allows you to make quick changes to adapt quickly to new information.  Learning what the viewer likes is a strange fickle business, just ask NBC and the other networks as they premiere new shows year over year hoping to find the next hit.  For online, there is less risk at stake so there is more opportunity to experiment.

You Tube and online has the  advantage of less barriers to entry.  It's easy to upload content.  The  bigger challenge is promoting it and helping viewers to find it.  With so much clutter, it is only getting harder and harder to get noticed.  The key is being featured and recommended so that you break through and become viral.  So far, my favorite channel on You Tube is the Above Average Network and my favorite series, The Front Desk.

Does Apple Need To Own A Social Network?

Some public speculation that Apple is considering a major investment in social networking site, Twitter, as a means to extend itself in this space.  Perhaps also to compete as much with Google who chose to build their own social site, Google Plus.  But is this the best investment choice for Apple?  "Apple and Twitter are logical partners in some ways. Unlike Facebook or Google, Twitter has no plans to compete with Apple in the phone business or elsewhere. And as Apple has found, social is just not in its DNA."  Still I wonder if there is  a profitable long term future in social networking?

Ask Facebook that question and the stock price today says no.  Trading below its IPO, Facebook is yet a runaway financial success.  Twitter is only as successful as the ads that  run on it; but those ads, like the ones on Facebook's timeline have started to become intrusive and unwanted.  And should Twitter fall out of favor, there are other sites eager to take a lead.   A financial investment in Twitter may be a defensive move, but Apple's success has been in being an innovative company.

Where I would like to see more investment is in products that improve and differentiate the security of their products.  And in products that enable more e-commerce and wallet applications.  For me, that could mean investments in PayPal and Square.  These companies and others are changing our purchase behaviors and improving the ease in which we transact business.  Apple's push to better security over our devices will also be an important differentiator.  And lastly, the battery that runs our devices and the quantum leap that is still needed to allow these products to run for much longer periods without a recharge, is to me a very valuable investment.

Twitter and Facebook and other social network apps should be enabled to easily integrate with other programs - photos, music, videos, etc.  That can happen regardless of a deep financial investment.  That Apple products remain a deeply integrated part of our lives, in our communication among family members as well as with our social circles, and the must have device from when we wake up to when we fall asleep remains the top priority.

Could Google Overbuild The Cable Operators

Kansas City is a buzz over Google Fiber and cable operators may be concerned that a new rival is in town.  "Google Fiber makes the cable-based ISPs look pathetic. It promises to offer speeds up to 1,000Mbps downstream and upstream, for only $70 a month." Bring audiences in at a faster and cheap rate and win them over.  "For Google, the main business purpose of Fiber is to give people faster Internet access, so they'll spend more time online -- where they're more likely to use a Google product and click a Google-sold ad. But just like Gmail unlocked an enterprise business, Fiber could unlock a whole new business as an ISP and TV provider."

And according to a Multichannel article, Google is also in talks with some large programmers, including Disney, Turner, and Fox.  How Google Fiber  tests in Kansas City could demonstrate the value to Google of rolling out this service across other cities.  Still the infrastructure to support such a rollout and manage the pipeline must be enormous, but if anyone has the deep pockets, it is Google.

Xfinity Means What To You

Branding is a tough game.  A new brand can cause quite a bit of confusion until consumers can understand its identity and value.  For Verizon, it was trying to explain how it was better than staying with Bell Atlantic or NYNEX as a brand.  For Radio Shack, it is wondering whether the name should be changed to reflect a changing technological environment.  And for Comcast, it means explaining why Xfinity best represents its bundle of products.

So far, consumers may still be unsure what Xfinity is, what it stands for, and why Comcast has introduced a new name.  "Comcast Corp. is launching a marketing campaign costing at least $170 million, to fix what Chief Executive Brian Roberts has acknowledged has been a less-than-successful two-old corporate rebranding effort."  Xfinity is meant to be far more than just cable, phone, and data.  It is how consumers live their lives in and out of the home.  "The new advertisements aim to show what an integrated Xfinity 'experience' feels like to a customer."  That the products actually work seamlessly together.

It may be the expectation, but I am unsure if it is yet the reality.  Do consumers know how to use the Xfinity apps to integrate devices? Do they see the synergy yet?  And most important how can Comcast get current customers to take full advantage of what they offer in order to unlock the value and improve customer satisfaction.  It is clearly a work in progress.

BSkyB Banking On Over The Top

The truth is that if you can't beat em, join em.  The rise of broadband and the fear of consumers switching to IPTV devices has cause BSkyB to consider new distribution strategies.  "BSkyB will spend £30 million cutting its own cord through Now TV".  The truth is clear; why let other platforms take away this audience, better to have a presence in the OTT space too.  "That gives us a clue how much BSkyB is investing to protect its heavyweight satellite and triple-play offering from disruption by new over-the-top (OTT), cord-cutting services and platforms, and to seek new online customers".  As a new platform it also allows more flexibility to create a low cost package of service and support a consumer preference to a la carte offerings.  From my vantage point, it is a very smart move.

What Is A Radio Shack?

Sad to say but it looks like another institution is on a path toward closure.  It seems that Radio Shack has not changed with the times.  We no longer build radios in our basement, we no longer seek wires and connections; technology has changed the process and Radio Shack has become less relevant.  Today it tries to compete with wireless phone stores, big box electronic companies, and even some toy stores; but what is Radio Shack?

"While RadioShack is suffering from industry-wide trends — including declining TV sales and consumers using their smartphones to compare prices, as well as an uncertain economy where shoppers shun spending on high-ticket items — analysts said the company has made several mistakes."  To me, the biggest one is its name.  It no longer connotes innovation but reminds us of older technology.  Second, it neither offers any real differentiated product or better price point to challenge its various competitors.  And third, its merchandise consists of  an "'overloaded product assortment,' including 'obscure items' such as magnifying glasses and soldering irons that make its stores hard to shop."  So frankly, the question to ask is, can Radio Shack be saved.

For one, a name change couldn't hurt, one that resonates a more future technologist approach.  A better mix of merchandise especially in the mobile and web space.   Build out an exclusive product line at a competitive price point.  And less reliance on big screen products that need larger merchandise layouts than Radio Shack can offer.  Perhaps its time for "The Web Shack" or Tech Shack" or "Digital Shack' to emerge.

Do We Expect Too Much From Apple?

Apple released their quarterly earnings last night and the analysts were disappointed in the actual verse estimate. Despite rising year over year, it just wasn't good enough.  The challenge may be in what lens we look at companies like Apple.  Is it fair to look at it so closely over a quarter, especially when product life cycles and new release dates can significantly affect short term buying behavior.  I mean why buy a new iPhone today when the rumors of a new model before end of year causes us to wit on the sidelines to wait.  And once the new iPhone, new iPad, and other releases occur, won't they tend to send unit sales through the roof.  I mean the first week of a movie release is always higher than the 5th week.

Financially, Apple is still a rising star. And while the short term bump on the stock price is part of the game, Apple continues to impress in the long run.  Knowing that there is product to be released, seeing how well the iTunes business grows as a result of these sales, and the impact Apple has on other companies and businesses, I still believe that Apple is a long term play.

Never Ending Saga - Content And Cable Distribution Clash Again

Just as the Time Warner Cable and Hearst broadcast agreement has settled comes word that a next fight is brewing.  This time it is between Time Warner Cable and Meredith Broadcast networks.  "On Wednesday the cable company could lose the CBS and MyNetworkTV affiliates in Kansas City, an NBC station in Nashville, and a CBS outlet in Springfield, Mass. if the companies don’t resolve their contract dispute."  And if it follows the same script, the stations will go dark for a period of time, negative advertising will emerge, websites will arise to send nasty messages to each party, and ultimately an agreement will be reached.  Unfortunately, we must watch all the nasty stuff first before either party will get to the conclusion; it starts to sound like a bad sitcom.

Going To The Movies Not So Worth It

Here's a basic question, are you going to the movies more or less times than you went say last year or 5 years ago.  Does the movie experience or interest in a title push you to go out and would you be willing to go back to see the same film again and again?  It seems that the cost of going to the movies, coupled with much shorter distribution windows and better home viewing experiences has hurt attendance.  "Attendance at the movies last year was the lowest since 1995, and per-person attendance fell to a 25-year low — in particular among younger consumers who frequent the cinema most often, a new report shows."  3D movies have grown, but the cost to watch and the experience in general underwhelms.  Imax screens help, but there are few around to make them convenient to the masses.  And the price to watch and the cost of refreshments make the total cost a bigger drain on the pocket books.

On the other hand, films released early in the year are accessible through on demand or online in less than a year.  With vastly improved HD TV sets and high resolution iPads, the cost is much less and the enjoyment more.  For a family of 4, a night out at the movies with popcorn is more than $60; the cost to watch on VOD with a microwave popcorn bowl, under $10.  It is that growing chasm between the two choices in a depressed economy that  strikes at the nerve of the movie industry.  When going to the movies becomes a more special experience, we go less and expect much more in return.

"Back in 2002, the average moviegoer went to the theater eight times a year; last year, it was fewer than six. In particular, younger viewers are going to movies less often. Attendance per person for consumers ages 12 to 24 is down 40 percent since 2002."  Blockbusters try to help, but the rising costs limit how many we choose to watch.  This trend is not limited to movie theaters.  Look at professional sports and see how few seats are being sold.  Yankee stadium as an example has rows and rows of seats empty; the New York Jets face similar issues trying to sell out its stadium.  As costs rise, less people can afford to go.  And once they begin to switch their viewing behavior, it becomes more difficult to win them back to your venue.

The Fall And Rise Of Yahoo!

Yahoo! has had some very public struggles lately.  But with the hiring of former Google exec, Marissa Mayer, we may start to refocus on the value that Yahoo! brings to the web.  Some may question what Yahoo! stands for today, but the more important question will be what does Yahoo! want to be.  Ad Age has it right.  "Yahoo needed to be a product company again, and media alone isn't a good enough product. Rather, Yahoo needs to build the tools and services that bind its 700 million users into its world, services such as Mail, Yahoo Finance and Sports. The debate of Yahoo as a tech company vs. a media company has been settled: It must be both."

Despite their failings, viewers still use their services; for me it is finance, sports, and news.  Continuing to push their content and their strengths as aggregators of content means we will still seek them out for our information.  But more is needed to drive use.Ad Age notes need to improve the homepage and mail.   "With those two products growing increasingly stale, and today's youngest generation of internet user gravitating toward social networks instead of portal pages or even email, Yahoo is facing a not-so-distant future in which it'll need to replace the core traffic-driving engines that create value in its media properties." Whether it through acquisition or refresh, Yahoo! needs to focus on matching itself to the future - from better mobile deployment and tablet usage to a best social network experience.

Can Yahoo! do it?  I think with the right leadership and renewed investment, the answer is a resounding yes.

Murdoch Resigns From Newspaper Boards

Ahead of the split of News Corp of broadcasting from print businesses, Rupert Murdoch has decided to resign from a number of British Newspaper boards.  "According to company officials who claim to be familiar with his thinking, the scandal has convinced Mr. Murdoch that the British newspapers, including The Times and The Sunday Times, which have been racking up tens of millions of dollars in losses in recent years, have become a financial and reputational drag on the News Corporation’s other holdings."  Whether it is also about removing himself further from the earlier hacking charges leveled on his publications, one can only assume that there is some connection.  The more separate he can become the lesser the stink.
 
Certainly these charges have seriously affected his ability to grow his media empire.  Rather than consider purchasing BSkyB, Murdoch has become a seller.  "The abandonment of a $12 billion offer to acquire the remaining shares in the company, announced as the phone hacking scandal grew last year, was part of the heavy price the Murdochs have paid for the tabloid scandal."  Once the empire has been pared back and the hacking drama has dies down, perhaps their investment in US businesses will increase.

DirecTV and Viacom Renew Their Vows

Someone blinked.  While deal terms were not announced, it is logical to expect that they did indeed rise and will continue to increase over the course of the new deal.  Consumers who subscribe to DirecTV will once again get their MTV, Comedy Central, and their Nickelodeon, and eventually find themselves paying more on their bills. Cable and satellite multi-video program distributors (MVPD) are still the primary aggregators for linear content.  And while they may temporarily drop a network or two, ultimately they still find themselves needing to carry everything.  At the same time, the growing costs of carriage may cause the subsequent rising consumer fees to further push consumers to cut the cord.

For DirecTV the new deal assures them programming for authenticated viewers in a TV Everywhere world.  "DirecTV subscribers will also be able to see Viacom shows on tablets, laptops and other devices using DirecTV's Everywhere platform."  One deal done.  Now we can focus on Dish and AMC, Hearst and Time Warner Cable.

REVISED:  Hearst and Time Warner Cable have just agreed to terms. Per Multichannel, the blackout has been lifted.

Should Facebook Buy Blackberry

Not my idea but I am certainly keen to it.  Gary makes a great point, no one remembers phone numbers anymore.  I couldn't agree more.  Listen to his vlog and see if you agree with his  idea for Facebook to buy RIM and Blackberry.

Who Needs FaceTime or Skype, Kids Like to Text

No matter the allure of video calls, it just never seems to find traction. And calling in general has lost favor to e-mails and texts. For younger demos, phone calls have become less relevant to their interactions.  And the research seems to back it up.

"A British study conducted by independent media regulator Ofcom found that among 16- to 24-year-olds, phone calls are being superseded by texts or other e-messages. Per the research, 96 percent use some form of text-based communication -- either though social networks (73 percent) or through traditional texting (90 percent) -- on a daily basis. By comparison, only 67 percent of that age group talks on the phone daily. Overall, total time spent on the phone declined 5 percent for Britons of all ages, the first such drop since the 1990s, according to The Guardian."

The trend, according to the article is the same in the US.  Our kids are not using their phones as often to make real calls or to embrace the new technology of face to face through Facetime or Skype.  Instead, the preference is to send short text messages.  Have we lost the ability to communicate and is this the new generation of one sided staccato messaging back and forth?  In the long run, my hope is that we have not lost our voice.

Networks Remain Off Cable Systems

Certainly not new stories, but networks continue to remain off the air of some cable and satellite providers as time goes on.  The  big story has been the loss of Viacom networks on DirecTv.  Even Jon Stewart wants Viacom to capitulate rather than see ratings continue to suffer and advertising revenue decline.  For Time Warner Cable, it is the loss of 15 Hearst broadcast networks in various markets.  And of course there is the loss of AMC Networks on Dish Network.

An interesting comment overhead is that the longer these blackouts go, the more likely the viewer is to find alternative solutions.  Whether it is switching channels and finding new favorites, or switching cable providers, or switching to different platforms like online networks, viewers adapt and ultimately change their preferences.  The longer you as a network are off the radar, the  more likely you will be replaced and forgotten.  It is a lot harder to win back loss subs then it is to grow incremental usage.

TiVo May Skip Ads, But It Also Measures Who Is Watching Them

The beauty of TiVo and other  less notable DVR technology is the  power it offers to easily copy and replay programs, whenever you are in the mood to watch.  No expiration of VOD assets to worry about; copy all the episodes of your favorite show and watch at your leisure.  Add to that the convenience of fast forwarding past the commercials and you are in control.  But surprisingly, we are sometimes too lazy to hit the button and we let the ads play through.

Ironic, but what leads to TiVo's need to take advantage of viewership data and match to the ideal profile when pushing ads to the consumer.  And in order to do it well, TiVo has found a partner.  "The television analytics company TiVo is expected to announce on Tuesday that it has acquired full ownership in TRA, a research company that has found success in recent years with a system that matches up television viewing with consumer buying habits."  With best information of household shopping preferences and show interest, ads can be targeted to the right audience in order to get the most effective reach.  And as DVR owners are not taking full advantage of the fast forward feature, they too are being reached.

Why aren't more cable operators offering TiVo technology in their cable box?  Wouldn't their local ad sales efforts be better helped with a collaboration with TiVo verse their own generic DVR?  I wait and wonder.

MSNBC.com and NBC News Split Up

If msnbc.com was a bookmarked favorite, you may want to reconsider where you get your news.  As of today, all of NBC News will be redirected to nbcnews.com while msnbc.com will be strictly about the MSNBC Cable Network.  Confused?  So will the users of the website and  the cable network.  Isn't the cable network also owned by NBC?  Yes, but the website was co-owned by Microsoft.  The challenge lies in the ownership and with it comes the revenue model as it relates to other non Microsoft owned properties.  So now NBC properties can get full value of their web based synergies with their TV brands.  Today Show info will no longer be on msnbc.com; rather, clips from the network will be on nbcnews.com.  And the result, NBC can keep 100% of the digital revenue.

So MSNBC the cable network, a left leaning political site will point to msnbc.com while NBC News, the Today Show, Rock Center and other news properties will point to nbcnews.com.  And hopefully, the web surfer will add a new bookmark and notice the change.  Otherwise, the concern will be how to recapture the lost web traffic.

One thing that I haven't seen addressed, what happens to MSNBC the cable network?  "Microsoft’s stake in the cable channel was dissolved in 2005. But NBC came to feel handcuffed by the Web arrangement; an increasing number of advertisers wanted to buy ads both on its TV newscasts and its Web sites, a strategy called cross-media sales, but it could not respond effectively because Microsoft ran the ad sales part of the business."  It seems the next step is a name change for the cable network itself, further distancing itself from MSN and embracing the NBC News brand.   I expect that a name change is sooner than later.

Nickelodeon Out, Disney Junior In At DirecTv

Does the launch of Disney Junior on DirecTv tell Viacom that they can expect a long, protracted fight for carriage of Nickelodeon and its other networks?  It certainly seems like a shot across the bow.  While Comedy Central and its other networks will be missed, DirecTv must believe that no one cries louder than children and if anything makes mom and dad switch providers, it is the loss of kid programming.  Whether Disney Junior characters like Handy Mandy and others can replace Sponge Bob and iCarly remains to be seen.  Still it appears an attempt by DirecTv to offer some substitution for their loss.

So what happens the longer this negotiation lasts?  What if DirecTv discovers that they can actually absorb a loss of subs related to the drop of a set of channels and still improve their bottom line.  If the impact of a drop proves negligible, could this be the impetus to start assessing the cost/value model of all channels to provide a better value model to the end consumer?  With the rise of alternative platforms to receive networks and shows, change is in the air.

Should Passwords Be Obsolete?

News that someone has stolen passwords and that your identity and information has been compromised have unfortunately become commonplace these days.  And the solution is always the same - change it, make it stronger, use different passwords for different sites, etc.  But most of us have a hard enough time remembering 10 different phone numbers let alone all the different passwords we are supposed to use.  So we come up with solutions; we post them on the wall in our office, we use simple passwords like "password" or we write them in a  document.  No matter what, they become compromised, either by the companies that require them or our own doing.

So why not make authorization something else, a fingerprint, voice recognition, eye scan, or some other means that identifies us without typing in a password. Is it even possible to make accounts impossible to hack without some safeguards in place?  With passwords proving more and more untrustworthy, it is clear that an alternative is needed now.

Our Future Is In Our Pocket

I believe that within 5 years, the smart phone will be formally inducted as the must-have wallet/communicator/connector in our lives.  It will be the instrument that we carry to identify who we are, update us on news, entertain us with music, text, and video, pay for all our purchases, and capture our life's moments.  Most of that is already happening today; we just will watch as it becomes the key device that we will rely on daily.

It is becoming evident that leading digital companies are finally figuring out what Apple saw five years earlier with the introduction of the iPhone.  So Google has bought Motorola Mobility in order to build its own smartphone and Microsoft is eager to get in the market as well, finally deciding that it too needs to build its own device.  And now we have learned that Amazon, a company leading the online shopping world wants to enter this competitive marketplace too.  "This news comes as several outlets including Bloomberg and The Wall Street Journal are reporting that Amazon is working on a smartphone to rival the iPhone and Android phones."

Notice that each of these companies are building hardware, no one is touching the digital pipeline to connect information to and from the smartphone.  Is it that there is less money to be made by investing in a wireless industry.  Is the pipeline seen as an unsexy business, unlike the hardware side of the smartphone with its fancy touch screen, apps, and tools?  But the pipeline remains a key attribute that can make the respective device run fast or slow, connect or freeze, complete the transaction or leave us "disconnected".

As to the rise of new competitors in the smartphone industry, it clearly indicates that the movement to make the smartphone the ultimate tool for each human being, young and old, is on.  And as a connected device, it provides us with many advantages.  At the same time, it has also caused us to lose a bit of our anonymity and privacy; we are tracked  and measured, targeted and attacked with ads customized to our behavior.  If we can accept that, the smartphone is well on its way to being the wallet in our pocket, the phone for our home, and the screen to be seen.  And that is why Microsoft and Amazon and I'm sure others to follow want their hardware to rule the pocket.

Magazines Aggregate a Digital Buffet

There is something about an all-you-can-eat buffet that consumers like. Its that one price that enables you to pick and choose from a wide selection to consume from repeatedly.  Cable subscriptions have been doing it for a while although the constant rise in their monthly rates have led to subscriber cord cutting.  Phone companies too with unlimited local calls and cell companies too with their all you can use minutes.  So it is now time for the print media to offer a similar aggregated offering.

"Digital magazine joint venture Next Issue Media is finally available for the iPad, three months after it launched for Android. With the app, users can read popular magazines like People, Vogue, the New Yorker and Real Simple for a flat monthly fee."  For heavy magazine readers eager to cut costs by switching to digital, this could bring instant savings to the household.  For light readers, it may be just the right price point to encourage adding a digital subscription to get some wonderful content from well known magazine brands.  Titles are being offered by Conde Nast, Hearst, Time Inc., and Meredith. A full list is available within the article.

For me, I haven't yet gotten much out of Flipboard and would find this kind of deal worth subscribing for my iPad.  I do find it unusual that the individual companies haven't already tried this type of model just within their own list of titles; still, I believe that the larger the choice, the easier it will be to market and gain consumers to subscribe.  Of course, how it affects print subscription losses will need to be measured to assure that a time frame to adapt to a shift in preference can be effectively budgeted.  At the end of the day, this model sounds like a winner.

Programmer v. Operator - The Never Ending License Fee Battle

The dropping of networks off our cable line-ups seems to happen more and more these days.  And as typical in these negotiations, networks threaten to be dropped and eventually are dropped for a period of time from the TV line-up.  Last month U-Verse threatened and finally settled with AMC Networks right before the deadline to drop their networks.  Dish Network actually dropped the AMC channels.  Today DirecTv is threatening to drop the various Viacom Networks - MTV, VH1, Nick, and others from their service on July 11 while Time Warner Cable has already dropped the Hearst Television owned broadcast networks in its various markets.  Perhaps we as consumers have become blasé to these battles having found ourselves turning more and more to alternative platforms for our entertainment and news.

Yes programming costs naturally rise, yes license fees rise to cover those costs.  And yes, ultimately the consumer must decide whether to keep paying or not.  For some of us, we remember broadcast TV as a free medium, paid entirely by advertising; for some of us, we have grown up paying for cable to get a better signal, more channels, and access to more commercial free premium programming.  And for some, anything we choose to watch can be found online, some free and some for a subscription price.  We gravitate to a model that best serves our need and our pocketbook.  But as cost of cable television continues to rise faster than the price of inflation, households are challenged to find ways to cut back.

Thus some may welcome the loss of some channels, even some they may watch, if only to keep their cable bill from rising.  Others may use it as a reason to finally cut the cord and embrace online.  Who needs their 11pm nightly news anymore if the same information can be shared via social networking and online news sites.  Who needs their Nick anymore if the same kind of shows are found on Hulu or Netflix.  The Programmer v Operator battle only helps to continue to push viewers away.

Has Digital Download Killed The Record Album?

The iPod might have saved the overall music industry by pushing song sales at a low price, but it may not have been a boon to the whole song album.  Single sales are increasing but album sales are down.  "Year-to-date cross-format album unit sales dipped by 3.2 percent (U.S.) and 13.8 percent (UK), according to figures released this week by Nielsen SoundScan and British Phonographic Industry."

Perhaps given the nature of digital, it is time to stop selling albums and start selling a different packaging of songs, combining song with video, photo album, concert footage, and other digital pieces into a whole new type of album.  Why does an album have  to be just a collection of songs.  It is time to redefine the album concept as a means to help push up growth.

Can Microsoft Find New Success?

A lot has been said these days about Microsoft and its attempt to adapt to a changing digital universe.  First they bought Yammer to make inroads in the social media space.  At the same time, their ad network purchase about five years ago, aQuantive, is proving to be a failed investment.  Now they are trying to compete in the mobile space with their own smartphone and tablet, Surface. But can they win against Google and Apple?

Not according to an ex Microsoft employee.  His take on the future of Microsoft sounds bleak.  "The not-so-flattering portrayal, titled “Microsoft’s Lost Decade,” is spun in next month’s Vanity Fair. The issue lands July 10." It sounds like it could be a very interesting read.

Yes Microsoft has been slow to market with new products.  Unlike others, they chose to keep with their current product line and have missed out on being ahead of new trends.  But given the ever changing fickleness of the consumer and Microsoft's efforts to regain the lead, there may be a chance.  As Microsoft knows so well, leaders sometimes fail to keep ahead of the curve.  It happened to Microsoft like it happened to RIM and others.  Even Netflix stumbled but seems to have bounced back.  Should Apple and Google stumble, an opening could emerge for Microsoft to rebound.  IF.

QR Codes Coming to Books

The mighty QR (quick response) code is expanding its reach as book publisher Simon and Schuster will begin adding it to the back cover of its hard and soft cover books.  With the QR code, mobile enabled readers will be able to access  "' the author’s mobile page on S&S.com where they can sign up for an email, browse the author’s other books and watch video'” according to their chief digital officer Ellie Hirschhorn.  But will it be successful?

Will print readers want this information, is it useful to their needs, or have they already decided, by not switching to an e-reader, that  they don't need today a connection between digital and print.  The challenge will be to communicate to the reader that their is real value being offered online, worthy of their time to scan and view.  I believe it has to be more robust than what was announced in the article.  For customers willing to link, how about a coupon to a discount to their next purchase of and S&S book or a link to a download of a movie.  The need for added value is essential to demonstrate a purpose for readers to actually read the QR code.  Still the challenge may be to make certain that they aren't being scanned prior to purchase so that the  value is there after the book sale.

What Happens When The Cloud Goes Down

Whether we like it or not, we all seem to be addicted to something.  Some may be more destructive than others, but in the end, we must be capable of living without.  So too is the case with the web.  We are addicted and when our networks shut down, we feel pain.  "The big news over the weekend was an Amazon cloud storage outage that took down services like Instagram, Pinterest, and Netflix in the wee hours of Saturday morning."  Yikes, for some, it may have felt like the world was ending.  No connection to Instagram, what will we do?

And not only did weather affect our websites, so did the decision to change our "official" time.  " To correct for minor decelerations in Earth's rotation, timekeepers added an extra second to the clock on Saturday – bringing Earth roughly four-tenths of a second ahead of the official time instead of six-tenths of a second behind. But one tiny little second change managed to bring down a number of the Web's more well-known sites, such as Reddit, Yelp, Linkedin, all of Gawker media's various Web properties, 4chan, Fark, Stumbleupon, and irate Bay, to name a few."  What will we do when a real catastrophe occur?

It makes me think of all the science fiction tv shows and movies out there that show what happens when we are no longer connected.  Remember  that Twilight Zone episode when a neighborhood is plunged into darkness, no phones, no electricity, and the neighbors panic and turn onto each other.  Will we become so addicted to our web connection that a loss in power will do the same thing to us?  Or can we remain calm and remember to breathe.  Sites may be down but it shouldn't mark the beginning of panic.  At the same time, shouldn't we have back up systems in case of emergency.  They always worked on Star Trek!