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Monday, October 29, 2012

Is Microsoft Buying Netflix?

With the release of their tablet, Surface, Microsoft may feel the need to have a content strategy, too.  For Apple, it is all about iTunes; for Microsoft, the rumor is that they are thinking of acquiring Netflix.  "Meanwhile, buying Netflix would be in keeping with Microsoft’s revamped philosophy on the Xbox 360, which treats the device more like an entertainment device and less like a video game console."  How Microsoft can use this for their competitive advantage remains to be seen.  Netflix has had a difficult time growing its streaming business while its DVD business drops.  That Microsoft can bring something new to Netflix is a big question mark. Netflix plays more like an agnostic player while Microsoft needs a content partner that can specifically make its own devices look and act superior.  My guess is that this is all rumor and not a strategic possibility.

Friday, October 26, 2012

All Hail The DVR

The must-have device in the home, it just might be the DVR.  For those of us that like to watch our shows on a big screen TV, the DVR is the ultimate device to watch what you want, when you want, and to be able to fast forward through the commercials.  In my home, the DVR is used regularly, except for watching news and sports.  Well, it seems my family is not alone.  " If the digital video recorder were a network — with you, the viewer, as chief programmer — it would rank as tops among total viewers and in the key young-adult demographics."  According to the report, DVR usage has jumped 30%, year over year.  And to measure the success of a TV show, it is now crucial to include  viewing post live, up to 7 days after the initial broadcast.  Sometimes longer in my household.

Of course the DVR requires us to be proactive.  To seek out and set a show or series "taping" in advance.  Yes I still say taping even though no real tape exists.  Blame my previous use of the VCR.  Still, it requires advance notice.  And when a time shifts due to unannounced changes in the schedule, the result is a missed recording.  Networks don't seem to care, they seem to purposely have their show run a few seconds if not a minute or two longer just saw the DVR misses copying the end.  Ultimately, each recording needs to be manually extended to try and catch the entire program.

Sometimes, the back up is the on-demand service that is provided.  For networks that have enabled their shows to be available on-demand, viewers have a second means to watch their shows.  Sometimes though, operators are required to disable the fast forward features so that we are required  to sit through the ads played.  Luckily the ad inventory seems to be less than on live TV; for now.

So all hail the DVR, our resource to watch TV on our schedule and not the networks.

Thursday, October 25, 2012

New York Times Sees A Digital Lift

The New York Times seeks a similar strategy as Gannett, pursue the digital business while managing the decline of print.  If costs can be contained, a leaner company can also be a stronger one.  With that, the NYT saw a double digit increase in digital subscriptions.  On the other hand, "Print advertising at the company’s newspapers, which include The New York Times, The Boston Globe and The International Herald Tribune, shrank 10.9 percent, and digital advertising across the company fell 2.2 percent."

Pushing great, exclusive content, only available behind a paid wall, that is of value to the consumer, should propel the company forward.  As more and more tablets get into the hands of more people, the desire for content becomes greater.  Marketing to these consumers the value of a digital subscription is essential.  Getting them to part with their hard earned dollars is necessary, especially as there is also so much free content to consume as well.  For those, like me that have grown up on the NYT, the value proposition to digital is an easier one to make; for the younger audience, the push to compete against other news outlets for share of the digital market may be a bigger challenge.

Wednesday, October 24, 2012

Netflix Not Growing Fast Enough

Netflix continues to face challenging times.  Unable to successfully transition from DVD to streaming, it faces a battle of watching its DVD subscriber rental base declining, but its streaming base not rising fast enough.  Add to that mix the higher costs associated with streaming verse DVD, and the profit margins are dropping faster then desired.  Still the streaming base is growing, just not as fast as expected, and certainly not fast enough for Wall Street.

Netflix has tried to recapture a higher revenue by raising prices on its streaming business, but consumer uproar nixed it.  "Netflix also needs more subscribers because it is sticking to its price of $8-a-month for unlimited video streaming. The company faced a huge backlash last year when it raised prices as much as 60 percent for people who subscribed for both DVD service and streaming. The company says its reputation has yet to recover."  Still, Netflix may have to keep trying to raise its prices.

It also faces a hurdle from competition.  Cable operators continue to push their on demand line-up as comparable to Netflix and as an added value to cable subscribers.  Amazon, Apple, and others are there to offer similar content as well.  The launch of new tablets and mobile customers may enlarge the marketplace and further grow the subscriber base.  Content feeds these devices and video is a perfect fit.

Can Netflix contain its costs and grow its streaming business?  Can it stop the excessive bleeding of DVD subscribers as it continues to transition to a digital business? Its CEO Reed Hastings sees great opportunities, both domestically and internationally.  That is certainly what investors are hoping for.

Tuesday, October 23, 2012

iPad Mini Starting at $329

iPad Mini is $329, iPad 2 is $399.  Did Apple price the mini too high to compete effectively against the Nexus, Kindle, and Nook?  Will you buy a Mini?

How Much For An iPad Mini?

Today is the big day.  The iTunes Store is down, the Apple devotees are waiting, and in a few hours the announcement will confirm what has been buzzing for months.  The release of a smaller version of the iPad.  But at what price?  "The Kindle Fire starts at $159, and the Nexus 7 at $199. Meanwhile, Apple sells the iPad 2 for $399 and the 4-inch iPod Touch for $199. Company watchers are pegging the price of the smaller iPad somewhere in between."    Will the iPad Mini be priced at a comparable value as Nexus and compete on price with Amazon, or price itself a bit higher expecting that consumers may pay a bit more?

If the Apple magic can extend to the iPad Mini, it could become the next huge holiday gift.  But the price must be right.  And what else will be announced today; new laptop, revamped iTunes store, are all a possibility.  Even as we wait for the announcement, questions swirl as to the next product innovation for Apple, the next new piece of hardware that we must buy and own.  Apple has struck gold with the iPod, iPhone, and iPad.  Will an Apple TV be next or something else?  Stay tuned.

Monday, October 22, 2012

Dish Settles And Former Cablevision Networks Relaunch

It seemed to take the threat of a witness stand to put the final nail into a case and cause Dish to settle with Cablevision.  Cablevision clearly won as Dish will pay a settlement fee and relaunch all of the AMC Networks, including AMC, WE, and Sundance, as well as finally launch the Fuse Network.  And as both sides begin to play nice again, the rancorous feelings between both companies and their respective leaders has most probably not subsided. Publicly, both sides are saying nice things, using the old expression, "it's just business, not personal".  But it is hard to believe that is true.

For Dish, the win may be that the $2.4 billion suit was settled for $700 million and saving four months of not paying for these channels.  For Cablevision, it was a recoup of some of the loss of Voom and to regain a healthy number of subscribers across its networks.  And for now, one more fight between network and distributor has ended; no worries though, another should begin again as we get closer to the end of the year and another contract is set to expire.

Thursday, October 18, 2012

Sprint Intends To Be A Player

It's amazing what a little cash can do for a company.  Softbank's investment into Sprint has enabled Sprint to take a majority ownership in Clearwire.  "Clearwire’s spectrum is crucial to planned high-speed upgrades to Sprint’s network."  Certainly the plan is to build the widest, most efficient next generation broadband communication system to rival its competitors, AT&T and Verizon.  As we become a nation requiring more access to wireless at the fastest speeds possible, a leap like this could propel Sprint well forward and continue to force its competitors to hasten its capital expenditures to manage an increasing demand.

With Softbank, a Japanese owned investment group with businesses in mobile and fixed communication, Sprint becomes an international player as well.  The world becomes a smaller and smaller place as companies entrench themselves, not only in the US, but across the globe.  We do indeed live in interesting times.


For Newsweek, The Digital Switch Turns Quickly

In a changing media landscape, transitioning becomes part timing, part luck, part skill, and part intuition.  No change is deemed right or wrong until after the fact when we look back and see who has survived and who has fallen.  Across industries, the past is littered with brands and companies that couldn't adapt to change  and are no longer in business.  For print, the media landscape is changing rapidly from physical to digital as consumers embrace tablet and mobile technology.

Gannett has  taken one path to the digital transition, embracing a subscription paywall as a means to increase its digital subscriber base and improve revenues.  At the same time, they continue to print and sell print subscriptions.  For Newsweek, now under the control of Barry Diller and IAC, is to pull the bandage off quickly.  "The last print edition in the U.S. will be the Dec. 31 issue, Tina Brown, editor-in-chief and founder of The Newsweek Daily Beast Company, said today on the company’s website. The all-digital publication, to be called Newsweek Global, will require subscriptions and will be available on tablet computers and on the Web, Brown said."  Cost to print and mail drop effectively to zero although revenues are also expected to drop.  Most significantly felt will be the loss of single issue sales off newsstands.

Can a leaner, meaner Newsweek survive as a digital only weekly magazine?  Is such a quick transition the best course of action or does Gannett have a better strategy?  Such are the questions and challenges facing these two companies as well as others in the print media space.  Perhaps the answer lies in how well marketing can attract subscribers and how valuable the content is measured by the consumer.  Wherever one is led to get access, the hope of these companies follow the famous line from "Field of Dreams", "If you build it, they will come."

Wednesday, October 17, 2012

TiVo Seeks New Revenue Sources Through Litigation

Ideally, TiVo would be able to take its superior product and integrate into each and every cable operators cable box to create a world class cable DVR box.  But that has not happened as quickly as possible.  Especially as the top cable operator have done little to embrace TiVo.  Instead, new revenue has come from another source, lawsuits.  With wins and settlements, TiVo has been doing quite well.

The latest source for funds may just come from another lawsuit.  "TiVo Inc. said it may be entitled to billions of dollars in damages should it win its patent- infringement lawsuit against Google Inc.’s Motorola Mobility unit over digital-video recording technology." Should this fight find a similar outcome as others, TiVo will once again see a financial lift from litigation.

It is certainly nice to see that TiVo is working over time to protect its patents.  It simply needs to work equally as hard to get its products in the home.  Perhaps the outcome of this latest litigation is that Google and Motorola make TiVo the official DVR of its cable box.  Thus cable operators  using Motorola set top boxes will automatically be using TiVo.  Perhaps.

Tuesday, October 16, 2012

Pay Wall Working For Gannett

Gannett may just be turning the corner on its business model as it takes more and more revenue from the digital side of their business.  With digital subscription expected to rise 25% this year and digital ad revenue rising, it seems that Gannett is transitioning well from a print to digital business.  "Digital 'now represents more than 25 percent of total revenues,' CEO Gracia Martore said in a statement accompanying the earnings release."  It is likely that as more effort is made to build out the digital model, costs can be reduced in the print model to build out a healthy profit margin.  Exciting times ahead.

Monday, October 15, 2012

Are Newspaper Paywalls Working?

One thing is clear, the success of media, be it cable, print, or radio, rests with multiple revenue streams.  As companies demand more and more return for their investment, a single ad sales model has a hard time generating investor interest than one that relies on revenue from subscription, e-commerce, and other streams.  In today's digital world, newspapers especially have suffered as free content on the web has cost papers their subscription base.  But the cure, putting content behind a subscription service or paywall may be the cure.  As today's Wall Street Journal asks, are these paywalls working?

Investor mentality certainly reflects the improvements and future expectations of the digital business model. If today's earnings from Gannett are any indication, then an improvement in revenue because of an increase in paid digital subscribers will be welcome news of the success of the web subscription business  "The big risk of paywalls is that by restricting online audiences, newspapers can hurt their ability to sell online advertising. Until recently, that concern had prevented many publishers—other than those with market-moving financial information like The Wall Street Journal and the Financial Times—from charging readers for online access."  But if the subscription model leads to a scalable business, then there is hope that the ad model also works.

Consumers are being asked more an more to pay for digital services.  Cable television, Sirius Radio, MLB online, Amazon Prime, Hulu Prime, Netflix, and others are pushing a paid subscription model.  Free on the web just doesn't financially work and the free ride of content may be harder and harder to offer.  We are getting more and more comfortable paying for digital content provided that it delivers for us a worthwhile value.  it is when we believe we are being charged to much, that we threaten with cord cutting.  And that opens the door for competition.

Friday, October 12, 2012

All I Want For Christmas Is An iPad Mini

Just in time for the holiday season.  That just might be some of the rational for the launch of the iPad Mini.  With a scheduled announcement date of Tuesday, October 23, iPad Minis may be on the shelf and ready for purchase for all those good little boys and girls.  Good news for consumers looking for something special to stuff in the stockings.  Of course there may be another reason Apple is announcing the launch of the Mini on October 23.  "It also happens to be just three days prior to the street date for Microsoft’s new Surface tablet and two days before Apple reports earnings for its latest quarter."  A great way to diffuse Microsoft's announcement; maybe too, to offset a not so spectacular quarter for Apple.

Broadcast And Cable Viewership Declining

Not that TV viewership is in a death spiral, but it should be noted that TV viewing through the television set is declining.  And while the older generation continues to watch at the same levels, it is the younger generations that are bypassing television for other platform consumption.  The Wall Street Journal notes that "The viewing slump suggests traditional television is being hurt by intensifying competition from online video outlets such as Google Inc's YouTube and Netflix Inc."  But according to the networks, the news isn't all that gloomy.  They believe that there is still DVR viewing that will improve these disappointing figures.

For content creators, it doesn't mean that viewers don't like what you are developing, just that they have found alternative platforms to use to watch.  Why watch AMC Network's premiere of Breaking Bad when you can watch it at your convenience at a later time through your cheaper Netflix subscription.  Except for live programming such as sports, there is less and less desire to watch at the premiere date.  Rather consumers can decide at any later point when they wish to watch and where and how to view it.

Should broadcast and cable be worried about this viewership drop.  For some, perhaps.  "Some big-name cable channels have also experienced sharp declines in the 18-49 demographic, with a 41% decline at MTV and a 27% drop at Comedy Central, both owned by Viacom Inc., and a 13% drop at News Corp's FX. Meanwhile, cable news channels like Fox News, CNN and MSNBC have drawn larger audiences as the presidential election approaches in November."  Live breaking news encourages television viewership, but shows like South Park or The Daily Show are just as easily watched away from the television.

And as radio changed as television became more rooted in the home, so too must television programming change as the web takes more of an audience.  Perhaps it means bringing back live drama and sitcom TV where the possibility of "an anything can happen" approach makes folks want to watch.  Or television has to build up some exclusivity of its content that limits how people can watch.  As web programming moves from more short form to long form shows, the threat to broadcast and cable will only get greater.

Thursday, October 11, 2012

For Sale: Premium Network Seeks Like Minded Partner

Liberty Media and John Malone are keeping pretty busy these days.  In one corner, they are actively buying shares of SiriusXM while planning a spin off and hopeful merger of Starz with another programmer.  "Speculation of a possible future sale ran high shortly after the spin announcement, with some reports that Time Warner Inc.’s Home Box Office unit or CBS’s Showtime premium channel could be possible suitors. Other possible suitors include Comcast (which controls the NBC Universal partnership), News Corp., The Walt Disney Co., and Netflix."

My question is where the value may be for a merger, in the content license deals that Starz owns or in the distribution of its service across cable operators.  Does HBO or Showtime really want to manage another distribution channel or do they like the content deals that Starz can bring to their respective premium channels.     For folks like Comcast and Disney, I think that it is the subscription revenue that Starz offers and the opportunity to build another vertical path from content creation to distribution.

I also wonder why is Liberty Media willing to sell their asset.  Does the premium window no longer interest them?  According to Malone, "Unfortunately, other than financial synergies, Liberty really can’t provide Starz with much in the way of operational synergies in this space in the U.S.” Doesn't the same hold true for its other programming entities like Discovery and QVC?  Clearly, there may be other reasons stoking this strategic change.


Wednesday, October 10, 2012

Slingbox Gets An Update

Do you travel frequently?  Do you wish you could watch your shows on multiple devices outside the home.  If you can't wait to watch shows when you are resting comfortably in your own home, then Slingbox may just be the right box for you.  And it's redesign includes an added benefit, the ability to push content from your smartphone and laptop back to the Slingbox and the TV set.  "Both products support up to full 1080p HD-quality streaming of live or recorded TV programming and Ethernet connectivity. In addition, the 500 -- which looks like a conventional set-top box that has been twisted in half -- includes HDMI inputs and outputs, plus dual-band Wi-Fi."  So Hi Def and a new design.

Echostar and Slingbox hope this new product will expand its audience reach beyond "sports fans and techno-geeks”, according to their VP of marketing.  Still, like TiVo, their biggest source of growth will be working with other cable operators to integrate their software into the cable box that currently controls the home.  If not, then the marketing push will be demonstrating just how easy the box can plug and play with the current box sitting under the TV set.

Tuesday, October 9, 2012

iTunes Meet Google Play, On Demand Meet Streaming

Movie night in America, when the family settles down in front of the TV to watch a movie together.  But that situation continues to take many twists and turns.  Today, the tablet and laptop allows more individuals to watch their personal favorite show and no longer need to let majority rule for the control of the content.  And on demand, cable's choice for movies and TV shows on the television set is being usurped by online streaming.  In fact, the rise of the connected TV means that these same web streaming shows can be shown on the television as well as on a mobile device.  The future growth of on demand will compete head on with iTunes, Amazon Prime, Netflix, and Google Play.  "Google TV launched initially back in 2010, a service co-developed by Intel, Sony and Logitech. Now, in an announcement on its blog earlier today, the Internet giant said it would be rolling out the content on its smart TV platform over the coming weeks, starting today."

Big news for Google, more competition in the streaming space for Apple and iTunes.  Certainly Apple fans have been waiting to hear more news about Apple TV.  As these competing services gain more content, they demonstrate that the iTunes model can be copied and their size can be matched.  With so much choice of content to view, consumers will have to decide which service provides the right assortment of content accessible, which service is easiest to navigate, and which service provides an ergonomically better usage and viewing experience.  All this while the cable box, and on demand struggle to compete for consumers with its clunky technology and difficult navigation. And with the rise of tablets, the edge may just to streaming media.



Monday, October 8, 2012

Online Channels Growing To Compete With Cable

Can the rise of online video channels disrupt the current model of cable TV or can both live peacefully together?  Certainly broadcast survived the growth of cable although eventually broadcast networks had to buy their cable counterparts.  With the growth in online video, consumers may be excited to have more choice or they may decide that they don't need cable TV and will continue to cut the cord to their cable subscription.

The disruptive change is coming from Google and their video arm, You Tube.  "Acting more like a TV network every day, YouTube says it will pay money to professional producers of more than 60 new shows it is adding through its YouTube Originals program in the UK, France, Germany and the US."  And You Tube is spending tons of cash to support these endeavors to create original content on their online distribution platform. And while the content quality will improve with professionally produced video, the other side of You Tube, consumer generated videos, may just be relegated to lower placement or worse, lose their place on the platform.

As these original You Tube programs become long form, 30 minutes or longer, they will truly compete head to head with cable television viewing.  With only so many hours in the day to watch, attention to cable will be diverted to online just as, years ago, cable TV diverted attention from broadcast channels to cable programming.  How will the networks respond?  Most likely, an even more truly integrated TV Everywhere approach to assure that all linear content is accessible across multiple devices, both inside AND outside the home.  Today, some cable operators only offer access to mobile devices inside their home.  Networks and Cable Operators may also have to consider buying up these upstarts in order to have more contact in the space. 

As online video takes root, the likely end scenario will be that the big broadcast networks will have the largest audiences as they will have a true TV Everywhere model. The best online video will most likely be behind a pay window and the cable model, if flexible to more a la carte, build your own line-up of channels type of model, could be most customer friendly and successful.  The content model frankly cannot live on advertising revenue alone.  The need for a second stream of revenue, like a subscription service, is necessary to pay the bills.  Without it, the online video model cannot continue to attract the top talent; eventually they all want to be paid more. 

Friday, October 5, 2012

The Washington Post Loves Cord Cutters

If you have successfully weened yourself from cable TV and the various news outlets, then you may have already found alternative sources for your news fix.  But if you haven't or need another push to cut the cord on your cable subscription, The Washington Post may have the answer.  "The Washington Post’s new daily news show The Fold is interesting for a number of reasons: It debuts on Google TV and was made specifically to be viewed on connected TVs, and its target audience are cord cutters who don’t watch cable news anymore."  Will a 15 minute news program satisfy your need?  For those that keep their TV tuned to MSNBC or Fox News, it frankly may not be enough.  But it may be the first step in a 24 hour, online only, linear news stream.

Blockbuster Has No Future

When Dish Network purchased Blockbuster a year and a half ago, the thought was that they would be able to build up a rival streaming business to Netflix.  And despite Toys R Us now announcing their entry into the video streaming space, Dish has decided their is no future streaming business for Blockbuster.  "Dish no longer has plans to use Blockbuster as a nationwide video streaming or DVD-by-mail service, (CEO Charlie) Ergen said."  An interesting decision considering Coinstar and Verizon are now developing their own video streaming business.  What has changed for Dish?

While Ergen did not say what those future plans are, one has to wonder if the plans are simply to shut it down.  "The company has other plans for Blockbuster on which Ergen declined to comment. Dish has spent 'a lot of time' talking with cable networks about an Internet streaming service for live programming, although the service is probably still 'years away,' Ergen said. 'Worst case, we’ll take our money after having wasted some time, not much money, and life goes on,' Ergen said."  As relationships in general between Dish and cable networks have been less than warm, it seems more likely that the reality is closer to a shut down or sale of Blockbuster.

Overall, the streaming space seems already crowded with platforms selling the same video libraries - Apple, Netflix, Amazon, Wal-Mart, Toys R Us, Coinstar/Verizon, etc.  While Blockbuster has a brand value, it may also suffer from being a brick and mortar experience with dvd rentals and not an online identity.  And the struggle of changing its value proposition from store front to a digital business is what ultimately hurt Blockbuster's chances for success.

Thursday, October 4, 2012

Toys R Us Continues Its Push Into Digital

The video streaming business just got more crowded with the arrival of a brand new service from Toys R Us (TRU).  On the  heels of its announcement of its own tablet, TRU will be streaming television and movies under a rental model.  " The site will be powered by Rovi (ROVI)Corp, a digital entertainment technology company." Future plans include apps for Apple and Android devices, as well as their own Tabeo tablet.

Unfortunately, it is a very crowded field already dominated by iTunes, Amazon, and Netflix, with Wal-Mart's Vudu pushing its service as well.  If the titles being offered are all the same, won't customers simply be motivated to seek the lowest priced streaming service.  TRU must also contend with building a video streaming library of comparable size as its competition.  It is hard to imagine that customers will want to use too many different platforms to serve their video consumption strategies.  Netflix and Amazon have built an all you can eat buffet of videos while Apple likes to sell a la carte.  How TRU differentiates its service is crucial to gaining a measurable market share.

Wednesday, October 3, 2012

Motorola Drops Patent Suit Against Apple

The news that Google's Motorola unit was dropping its suit against Apple must be somewhat attributable from Sun Tzu's, "The Art of War". There are times to attack and there are times to withdraw.  And Google must have assessed their chances and given the recent ruling against Samsung, determined that their best move was to retreat.  "In a brief filing with the International Trade Commission on Monday, Motorola Mobility said it was dropping without prejudice a complaint that Apple had infringed on seven Motorola patents."  And so another patent fight with Apple is over and points again to an Apple victory.

Of course The Art of War also says  that strategies continue to change and a withdrawal one day may only lead to a direct confrontation in other ways.  And in a competitive environment, there are differences in a battle victory and the entire war.  Competition between Google and Apple does not end with this patent fight; the war is still on.

Tuesday, October 2, 2012

What Makes A Popular TV Show

The new TV season is here and networks are pushing their promotional blitz touting the most watched, funniest, best show on TV.  And TV execs scour the ratings the day after their show airs to see just how popular and successful their show is.  For some, it may determine whether the show gets picked up for the year or cancelled after only a few episodes.  TV execs have become less and less patient to let a show find its legs and its audience.  Some shows get lucky; Seinfeld really took till its third season to become a hit.  It was the pushing of certain execs that kept it going when it would have been too easy to cancel.

Today, those same execs might want to practice more patience because it is not just ho many are watching their show live, but also how many are watching their show on a delayed basis.  " The biggest takeaway in the television business from the season’s first week is that first impressions of a new show’s success may mean next to nothing now. With about 20 percent of viewers watching episodes of network series on a delayed basis, the initial ratings have to be seasoned with much larger quantities of salt."  I count myself among those 20% and I suspect that number is higher.  Between DVR and on demand, there are many shows I want to watch.  Two of them are on my DVR and are almost a week old, but I intend to record them and get to them even if I fall two or even three weeks behind.

The pleasure of watching shows on my schedule and not the networks is appealing, both because I can watch when it is most convenient to me and that I can watch and fast forward through the commercials.  In fact, it is becoming rarer for me to watch live shows, except for sporting events and award shows.  And so networks need to take total viewing into consideration, not just live, not just 3 days delayed, but in much longer  periods than even 7 days.  Add to that the online and on demand viewing of previous seasons and shows can actually start to demonstrate a growing audience appeal.  Heck I still need to watch the first season of Homeland to catch up to this season's story.


Monday, October 1, 2012

When Will We No Longer Need To Carry Credit Cards

The latest Samsung smartphone commercial shows two people sharing a playlist, not songs, just a playlist.  Not as cool as it should be.  So when will a commercial show a person bumping phones with a store register to authorize a sale?  Now that would be pretty cool.  But we haven't gotten there yet.

Certainly, we are leaning that way and the discussion of mobile payment is a first step.  But most of the apps being discussed still involve a piece of plastic being swiped by a device.  Whether a credit card reader at a store or a device on a smartphone, a physical swipe is still a requirement.  For small businesses and individuals, an app like Square certainly provides a cheaper rate to process than dealing with credit card companies directly.  That rate must certainly rise or it will undoubtedly cause bigger merchandisers to complain about paying more more transaction, despite the large amount of business they deliver.

Can we find ourselves one day leaving our plastic credit cards in a drawer and not in our wallet?  The latest iteration of the iPhone decided not to add an NFC to the mix.  For Apple, it sees that the world is not yet ready for such interaction.  But it is heading that way.