DirecTv Producing Content

For distribution companies, the need for quality content to put in the pipeline is essential.  And for content companies, having a strategy of placement to assure a nice return on investment is essesntial as well.  For DirecTv, it has led to a couple of attempts, most notably, trying to buy Hulu and its content deals.  But that attempt failed as Hulu pulled back its for sale sign and DirecTv has been looking for other alternatives. 

While not as big a deal as Hulu, they have found their next opportunity in the indie film arena.  "The satellite operator struck a deal with startup movie studio A24 Inc. to partner with it in acquiring independent films in exchange for rights to offer them exclusively on its video-on-demand services 30 days before they hit theaters."  While that might do A24 any favors with movie houses, it does guarantee them a premiere window and access to its huge subscriber base.  Add to that the marketing muscle of DirecTv and all you need is a potential hit film to dangle to consumers as "only available on DirecTv".  Of course to be realistic, very few indie films break through; in fact, some don't get their true notice till after their theatrical run when they hit the premium and/or DVD window.  Still, for DirecTv, its a good first step.

For those of us that believe that Content is King, it becomes crucial for distribution companies to secure exclusive content agreements to differentiate itself from others.  Its been done in the premium window with HBO, Showtime, and Starz and its been done in the streaming window with Netflix, Hulu, and Amazon.  And as my last post stated, it is why Intel Media has yet to move ahead.  Content is what viewers tune in for; it is why they are willing to buy cable subscriptions, premium subscriptions and streaming subscriptions.  And the value of these subscription deals are improved when the content becomes accessible across multiple screens.  But for me, it is most importantly the quality or the perception of the quality of the content. 

So DirecTv's decision to partner with A24 makes sense. But it can only be the tip of the iceberg of more exclusive content agreements.  I expect more such deals for DirecTv as they and others compete aggressively for subscribers.  That means that demand will continue to grow and the cost for content acquisition will as well.  And that is good news for content companies.

Intel Media Having Trouble Starting Up

What if you built potentially the best mousetrap but couldn't find either the cheese or the locations to place it.  Well that might just be the troubles facing Intel Media, a business inside Intel building its own OTT box and platform.  According to the article, the box was built and it looked and worked great; problem was that there are no content deals to run through the platform.  So, according to Peter Kafka at All Things D, it is time to either find a strategic partner or close up shop.

I certainly hope for the former as I know a few people on the team and have the utmost respect in what they are doing.  Their challenge is the same one that Apple seems to also face, how to get real content deals with the major cable and broadcast networks.  Truth is, it may be impossible to get linear network deals with these content companies.  They are so deeply in bed with the traditional Pay TV distributors, cable, satellite, and telco, that it is not in their best interest to risk these guaranteed monthly subscriber fees.  And despite having a superior OTT box, Intel Media should recognize the challenges being faced to get such a device into the home.  TiVo has been facing similar challenges for years.  So even if Intel Media gets some content deals, getting consumers to pay Intel for their OTT box and content may be an extremely difficult task.

The article suggests partnerships with Amazon and Samsung although I fail to see immediately what benefit they would derive from such a partnership or how it would best serve Intel.  While its box may be designed for streaming, its DVR feature is most likely meant for linear channels.  For now, Intel Media faces a daunting task, neither content nor distribution and the corporate clock is ticking.  As the article suggests, with its new CEO, this business may become DOA.

VOD Matters

Missed last night's shows on CBS, don't worry, CBS will remind you that you can still watch them through video on demand.  As shows are rated based on both live and VOD viewing, it makes sense to continue to promote them and remind viewers of how easy they are to watch, or catch up, before the next new show airs the following week.  "CBS predicts that increased use of video on demand for time-shifted viewing, binge-viewing and catching up with missed episodes will be 'really transformative' for the television business,  Mr. Poltrack (chief research officer, David Poltrak of CBS) said."  Truth is, on demand has been around for a while and consumers have been using it more and more to watch their shows.  In fact, viewers used to record shows on VHS even before DVRs and even before VOD so Mr. Poltrak should also be reminding his audience to record and watch, too.

So why this news during Ad Week?  Perhaps the fact that CBS is promoting series the day they were viewed.  Certainly for shows that are important to the future of CBS for ratings and ad dollars, it makes sense to promote across the Fall Season, not only before its premiere  but after as well.  With so many premieres on so many networks, broadcast and cable, constant promotion, before and after the linear show date, makes sense for building interest and appeal and viewership, whether on linear or DVR or VOD.  Frankly, it sounds like a no brainer.

DirecTv Eyes OTT Video Platform

DirecTv was no doubt disappointed that their bid for Hulu was rejected.  It seems they still have an interest in adding a video streaming component to their business model.  "CEO Michael White said the satellite TV giant will probably launch a targeted over-the-top video offering, which will be on a smaller scale than Netflix or Hulu."  So the question to ask is, will DirecTv build or buy.

With Hulu off the table and Netflix an unlikely acquisition target, perhaps DirecTv should look at a streaming service like Redbox Instant. Currently in a partnership deal with Verizon, Redbox might like to have the resources of DirecTv as well to help them better compete in a streaming media world.  Whether Verizon and DirecTv could work together might be either a stumbling block or an opportunity for both companies to better advance their footprint as well. 

As far as Redbox Instant is concerned, it has been slow out of the gate to compete at the same level with Hulu, Netflix, or even Amazon Prime.  It has the technology and a current library to work from, a better position to be in for DirecTv, than to try to build another video streaming competitor from scratch.  Perhaps this idea is what White is alluding to at the Goldman Sachs Communacopia conference.  It would certainly make sense to partner rather than build at this moment. 

Native Advertising Makes Ads Look Like Content

How often do we go from website to website, barely looking at the banner ads that fill the top, side, or bottom of the screen?  Sometimes though, they are hard to ignore, especially when they are the same ad, with bright colors and moving images that attract our eye.  But how often do we click on them... rarely, never?  Like commercials on television, banner ads have been the means for advertisers to reach audiences.  But the clutter gets to be so much that we start to ignore and worse, avoid them.

The latest tactic to hit the web is certainly not a new one.  And yes, native advertising has been around for a while. But many viewers may not be aware that they are really ads.  For TV, think of it as integrated or product placement advertising.  Products or services being mentioned and used within the body of the show.  Hard to ignore because they are part of the fabric of the content.   For the web, native advertising looks and acts like content.  But they are indeed sponsored and paid for by third party advertisers hoping to get you to click on them and thus transported to their sites.

How can you differentiate between advertising and true content?  Some websites specifically tell you you that a particular box is sponsored content, others do not.  Words like "Around the Web" or Latest"  are used.  Click them and you open a new page of content, some that bring you to new web content helping sites to improve their ComScore and Google ratings, others to pure advertiser pages.  Facebook and Twitter put these "sponsored" or native ads right in your feed so that it looks like part of the content flow that you read.  It also may ask you to "Like" the content, share or retweet it, or click it and push out to another page.  What seems clear is that presenting ad messages in a more integrated way into content improves the interaction with the ad.  But it also blurs the line.  But let's be clear, it is not new to the world of advertising; it has been learned and reshaped to fit into the digital world.

“It has been found that the less an advertisement looks like an advertisement, and the more it looks like an editorial, the more readers stop, look and read. Therefore, study the graphics used by editors and imitate them. Study the graphics used in advertisements, and avoid them.”  - David Ogilvy

Content Tells Distribution To Lower Your Margin

In what might be referred to as "the pot calling the kettle black", Content company Disney/ABC CEO Bob Iger told a Goldman Sachs Communacopia conference in NY that cable and telco distribution companies need to start lowering their profit margins.  Likely this means lowering the price they charge to consumers although smaller margins can come from a host of other increased expenditures, including the high costs for content.  Certainly distribution companies might just consider lowering their prices should content companies like the one Iger represents also lowered the cost for access to networks like ESPN, Disney, ABC and other networks that they sell. 

I don't begrudge content companies and content distributors from making a reasonable profit, but the profits have run amok.  For Iger to tell his distributors that they are pricing too high and should seek other revenue streams to make up the slack will certainly not be well received.  Those same content distributors can simply ask Iger to take the first cost cut himself and seek other revenues streams as well.  And while it is certainly not a zero sum game, the growth in new revenue that Iger suggests is partly coming at the expense and declines in other businesses.

Iger can argue that distributors should seek lower margins in their video business.  But Iger should also look to ask for some lower margins in his world, too.   Both sides share the blame in the costs for cable TV while both have also been slow in enabling TV Everywhere to truly be ubiquitous.  I hardly doubt that either side will lower their margins when the pressure on both sides of the business is to grow the profits and increase the bottom line.  Before asking his distributors to lower their profit margins, Iger should practice what he preaches and do the same.  It is indeed "the pot calling the kettle black".

Can A New Owner Help Blackberry?

Before Blackberry was Blackberry, it was called Research In Motion (RIM) with the hottest cellular phone on the market.  It was the smartest phone of the day and loyalty, especially by business men and women, was through the roof.  But then Apple's iPhone came along and, despite a name change to its core product, Blackberry never recovered.  Not even with its attempt to compete with its own tablet. Where Blackberry hoped to retain, Apple was poised to innovate and soon loyalty, ever a fleeting thing, eroded.  And so, Blackberry market share went from first to worst and today, the company is poised to be sold.

So what is Fairfax Financial Holdings buying?  "Anaylsts (sic) say that although BlackBerry's hardware business is not worth anything, its service business and patents are still valuable."  While the company is said to have no debt, smartphone innovation continues to move at such a rapid pace, I wonder just how much real value those patents have.  While Blackberry is still trying to make its phone more appealing, the real value may be in the app library and paired devices that make the phone that much more valuable.  Can they really catch up?  With Samsung, Google, Microsoft, and others competing with Apple and its iPhone and iPad products, Blackberry might best be served partnering with someone else.  Google has Motorola and Microsoft has partnered with Nokia; it might just be necessary for the new owners of Blackberry to find their partner.  Otherwise, I suspect that in a few years, the Blackberry brand will be ancient history. 

Apple iPhones Selling Well

Despite initial disappointment that Apple's announcement earlier this month lacked any new information on new products like an iWatch or television, the news was all about the next generation of iPhones.  The stock market wasn't happy with the news and the share price tumbled.  But it seems that consumers still want the latest and greatest and it is expected that Apple will do quite well with this new iPhone release.  "Today's lines for Apple's new iPhones are likely the longest they've ever been and the company will sell up to 6 million units, according to Piper Jaffray analyst Gene Munster."

And who knows, maybe Apple will surprise us next month with more news.

The Money's In Video Games

Of the must haves this year, my son's desire to get Grand Theft Auto V the day it was released ranked pretty high.  He was not alone.  In just its first day, sales of the videogame brought in over 800 million dollars. "At about $60 a pop, that translates to more than 13 million units. It is the highest first-day retail sales in the company's history and the GTA series, which had sold 125 million units before this release. "  Few theatrical films bring in that kind of money and certainly with more marketing dollars thrown at it then any game would need to do.  Gamers know when the next release of games occur.  Social media and visits to Game Stop are sure to remind them when to pre-order their next game. 

True, not every game released makes this kind of return; but, given the intricacies of the game playing, I am surprised that a companion video series hasn't being released at the same time. Certainly there is wide spread appeal for this franchise, numbers that at movie or TV studio would be dying to match.  Congrats.

Our Next Generation Being Raised As Cord Nevers

My daughter has been asking us recently for a Netflix subscription.  Despite having full access to cable, linear, premium channels, and on-demand programming, as well as full use of the DVR, she wants to watch shows on her iPad.  And the shows she wants are shows her friends are watching on Netflix.  She also just downloaded an Amazon rental movie to watch.  My son, on the other hand, prefers watching tons of You Tube videos as well as shows like The Awesomes on Hulu. For them, and countless of other teens, video is streaming and watched on personal devices.  They may be watching still some shows on cable television, but they are increasingly moving away from it.  And when they finally leave the home and start their own households, it will be the broadband connection that matters most to them.

While my kids are not there yet, others are, and cable television is feeling the results of cord cutting.  "The shift in viewing habits is putting pressure on cable, satellite and phone companies by pinching subscriber numbers, which may have a knock-on effect on revenue growth. The impact on the $80 billion pay-TV industry is already being felt, with 2013 on pace to be the first year ever that total U.S. pay-TV subscriptions will decline, falling to 100.8 million from 100.9 million last year, according to researcher IHS."  Younger generations especially will not have the disposable income to buy both cable and broadband access.  They will be forced financially to choose and their preference is a cellular or broadband connection over a fiber line. 

Certainly content companies are recognizing this trend as well.  Although careful not to hurt their current cable revenue stream, they are building windows for streaming access.  And some are going directly to these streaming OTT competitors for exclusive first run airings.  For Netflix, that resulted in their exclusive series, House of Cards, getting multiple Emmy nominations, the first time ever a streaming show was nominated.  As once cable took more Emmy awards from broadcast, so too could streaming shows one day take more Emmy awards from cable.  And as better content goes to streaming so too will more audiences follow.  No longer will the next generation need a cable subscription; they are indeed being raised as future cord nevers. 

Redbox Not Meeting Expectations

Redbox has not been doing well.  The stock is dropping and earnings are down.  The CEO J. Scott Di Valerio "vows to cut the number of consumer promotions, reduce content and operating costs, and repurchase an additional $100M of (Parent Company) Outerwall shares in Q4."  But maybe the problem lies elsewhere. 

While Redbox is better known for its DVD rental business, it has a partnership with Verizon to build out its streaming business model, Redbox Instant.  The challenge is in such a fast paced industry, Netflix, Hulu, and Amazon have all been more aggressive in the streaming video business space, both with cutting distribution deals with strong content partners and more importantly, building a library of exclusive content.  That strategy, most notably seen with Netflix and their show, House of Cards, has earned them Emmy nominations.  It also has led to a huge demand to watch these shows, leading to a rise in subscription revenue.  Redbox Instant has yet to aggressively enter this space.

Certainly Netflix showed that it is possible to stumble through a transition from DVD to streaming media, but that it can also be achieved.  Redbox certainly has the ability to pull off a similar feat, keeping the DVD business afloat while building a valuable streaming subscription business.  Redbox's challenge is that their DVD rentals don't require a subscription to rent, just a credit card for single use viewing.  Getting those customers to convert to streaming will require a creative and innovative marketing effort.  I believe that it can be done.  Competition will only get more fierce and Redbox needs to make a real splash to attract attention.  I suggest an investment in a major content deal and the launch of a signature Redbox exclusive series.  Sure, Netflix, Amazon, and Hulu are all doing that too but the barriers of entry are low enough for Redbox to breakthrough if they are willing to commit. 

Does Netflix Hurt Or Help TV Ratings?

When networks first considered putting their TV shows on cable's on-demand platform, the biggest worry was that it would result in a loss of rating points when the show aired on its linear channel.  But the tactic seemed to gain value as consumers discovered shows and used both on-demand and linear to watch their favorite shows.  In fact, some argued that on-demand helped consumers to rediscover shows or catch up on old plots in order to get current with the new season.

The use of Netflix seems to echo those same finding as on-demand.  New viewers have come to AMC to watch shows like Breaking Bad or Mad Men because they have been able to catch up on previous seasons on Netflix.   "AMC Networks, for example, saw ratings of “Breaking Bad” grow 50% in season four, with viewership for the fifth and final season airing now still climbing."  Cartoon Network, on the other hand, seems to have a different outcome.  They claim to have found a small drop in ratings that they attribute to their new deal with Netflix.  They do claim other factors.  "The drop in ratings is largely attributable to the loss of returning hits such as “Ninjago” in the first part of 2013, the network said."  Perhaps it demonstrates that the best use of Netflix for some content companies is in how it enables viewers to rediscover older seasons in order to encourage viewership in the current season. 

Dramas, especially those where each episode is dependent on the story line from previous episodes, has more to gain from on demand and Netflix.  The challenge for viewers that don't watch a show from day one is that they can't join the action halfway in.  On-demand and Netflix finally allow viewers to "catch up" in order to start watching the shows as they appear on linear channels.  That phenomenon has been called binge viewing.  While cartoons and comedies might not need this type of viewing behavior to enjoy the latest show, dramas seem to especially require it.  That means it is more important to know what happened last week on Homeland then what happened last season on The Big Bang Theory.  Netflix may indeed help some shows and hurt others in the ratings.  No one should have ever thought that it was a one size fit all strategy.

What if...Fuse And Maxim Team Up

Two separate news reports that makes one wonder if a connection should be made.  According to the New York Post, MSG may be interested in selling its Fuse music service.  And according to a separate Variety news story, Maxim magazine has been sold to a media company with the intention of starting a Maxim TV Network.  And while the Post thinks that a likely buyer of Fuse could be Mark Cuban's AXS- TV Network, formerly HDNet, I wonder if Maxim might be a more interesting fit.  With a subscriber base of around 65 million homes, Fuse would bring immediate subscribers to a start-up network like Maxim.  Of course there are a number of stand alone cable networks dying to get near 50 million homes who might be willing to pay up to dramatically improve their subscriber base. 

This of course is pure speculation that Fuse is even for sale.  The network has always been a personal passion for its CEO, James Dolan, and he may be hard pressed to want to give up control.  Selling networks has never been easy for the Dolans so we will have to watch and see how it unfolds.  But if they are indeed a seller, I see a Maxim offer as a likely next step. 

"Young People Can't Afford $100 Cable Bills"

According to Epix CEO Mark Greenberg, cord cutting is nothing new.  Whenever prices get out of whack and competition comes in with cheaper alternatives, consumers tend to choose to change.  He notes that when satellite TV came in to compete with fiber connected cable operators and he sees that today with streaming services.  Others call it cord cutting, Mark calls it competition, and he is right. 

Apple certainly faces the same issue with cheaper smartphones from competitors.  With their latest announcement that their less expensive 5C iPhone was indeed not as cheap as expected, their share price dropped considerably. 

Cable operators with rising license fees and the desire to maintain large profit margins are forced to keep raising the cost of basic cable, driving more and more consumers to seek alternatives.  And Netflix, Redbox Instant, Amazon, and others are there to offer their content at lower monthly costs.  But Mark has some ideas to compete more effectively with these OTT companies and perhaps even winback cord cutters.  "The answer could potentially lie in smaller and smarter bundles, combined with new user interfaces, integration of social networks and better content curation."  He also argues for smaller bundles of networks at lower price points as well as fully embracing the TV Everywhere concept and authenticating content viewing outside the TV box and home. 

For now, it is an acknowledgement that cord cutting is real and that its root cause is price gouging and increased competition.  It is a concept truly not unique to cable but learned across all industries, their products and services.  In cable's case, it just sounds cooler to call it cord cutting. 

Second Screen Apps Not One Size Fits All

Speaking at the NextTV Summit, ABC's Digital EVP noted that second screen apps aren't effective for all kinds of TV viewing behavior.  "He acknowledged that second-screen apps can work for some kinds of content, including sports, news, reality programming and awards shows."  But according to Chang, they are less effective for the typical shows on television and notes that it is more distracting than complementary.  I also agree with that opinion, especially when being used simultaneously with the on-screen action.

Dramas, especially, that require high involvement viewing require constant attention to the screen.  And while commercials offer a downtime, TV executives prefer to think they are still watching the TV, not leaving the room.  Having another device open only lessens the feeling of being in the action.  Less so, perhaps with comedies, but still viewers want to listen and watch for the laughs.  It is certainly in the live events where anything can happen, sports and award shows for instance, where there is room to add a second screen during the show.    Twitter and Facebook have proven that.  Less though for most other network programming to monetize and more likely the live water cooler for snarky comments.

And so ABC will back off from the use of second screen apps tied to their shows.  According to Chang, there was not enough opportunity to grow revenue and efforts will now be placed on other opportunities.  I expect that other networks will agree with Chang's assessment.

Does Cable Need More Regulation?

According to a Gigaom report, a member of the US House of Representatives wants to propose a bill to limit how larger multi channel programmers can leverage their larger networks to assure carriage of their smaller ones.  It would also eliminate blackouts of broadcast networks despite being out of contract.  And while this bill may appear consumer friendly on the surface, unbundling networks and limiting the negotiation process only stifles growth and opportunity.  It is a short sighted attempt at changing an industry that is already experiencing massive change.

Both networks and operators have more choices for carriage than ever before.  The rise of Over The Top (OTT) platforms and the growth of broadband and wireless has encouraged competition and in fact caused cable operators to see that price hikes have led to a loss of cable subscribers.  Programmers have also found themselves being dropped from cable line-ups.  Rather than create laws to limit the current business model, Congress should be doing more to encourage lower barriers of entry to broadband.  Encourage companies to offer alternative platforms to cable.  Enable new companies to build broadband infrastructures.  Enable competition rather than limit it. 

This proposed bill is not the correct means to the end.  While this bill is unlikely to gain much traction, it still demonstrates that Congress is wrongly focused on where the industry is headed.  Competition is the key to better service and lower prices for the consumer.  The rise of mobile devices is indicative that efforts should instead be on improving and growing our broadband highway. 

Apple Announcement Only About The iPhone

If you are wondering why the stock price today on Apple is dropping, you can blame it on expectations not meeting the announcement.  It was all about the iPhone with no discussion about new products like an Apple television or an iWatch.  Not even a word on a software upgrade to the Apple TV.  And that likely means no new products for Q4.  For competitors like Samsung, it means they have the Holiday Season to sell their new wearable device without Apple breathing down their neck.  Sure its nice to have a new iPhone, but it was a lot of talk for very little new information.  Certainly it gets harder than ever to surprise fans with so much news that leaks out beforehand; but still, it would have been nice to hear about their next device. 

Netflix A Complement To Cable Programming

In a first move for a cable operator, Virgin Media has agreed to add the Netflix app in their menu choices on their cable box.  That means that those Virgin customers that have a Netflix subscription will have access to programming from traditional cable as well as from their streaming OTT service. 

"The agreement marks a breakthrough for Netflix, blurring the line between traditional pay-TV and so-called over-the-top services delivered through the Web, such as Netflix and Amazon.com Inc.’s U.K.-based LoveFilm. Virgin Media customers will be able to search for Netflix shows on the same on-screen guide they use to hunt for pay-TV programs."  No U.S. cable operator has embraced such a move.  For Liberty Global owned Virgin Media, it indicates that they see these OTT services as becoming more added value to their cable service and less competitive.  It provides consumers with an easier ability to watch these streaming videos on the same TV that they watch networks and VOD.  Consumers that simply seek more video choices, this complement creates added value for the cable operator.

Most likely, cable operators like Comcast and Time Warner Cable will closely watch Virgin for signs that this partnership does indeed work or that it only leads to consumers further cutting the cord on their cable service.  Some research has indicated that a majority of consumers actually are both cable and Netflix consumers, speculating that these OTT services aren't what drives consumers to cut the cord.  Other factors like cable costs, disposable income, etc. may be the true drivers.  For now, this partnership between Virgin Media and Netflix challenges the notion that cable and OTT can't work together. 

The Future Of Net Neutrality

Are all video streams created equal or do some have more power over others?  And should money dictate who gets the right -of-way on the information highway?  That certainly may be part of what comes from the District Court case between Verizon and the FCC.

What is true is that yesterday's laws regarding telephone access and telecommunication have changed dramatically with the rise and growth of the internet.  The influx of more devices, broadband and, video streaming have created a more complex superhighway that no longer abides by the old rules. And the result has been a concern about access, speed, and preference.

According to "Susan Crawford, a tech policy expert and professor at the Benjamin N. Cardozo School of Law who served as Special Assistant to President Obama for Science, Technology, and Innovation Policy. 'The question presented by the case is: Does the U.S. government have any role in ensuring ubiquitous, open, world-class, interconnected, reasonably priced Internet access?'” If not, then should the businesses that have built these highways and access points, companies like Verizon, AT&T, Comcast, Time Warner Cable, and others, have the final say in issuing access, speed limits, and right of way?  Ultimately, is the web a regulated, open highway or a private turnpike?

Net neutrality laws were designed to assure that all web traffic was treated equally by the provider of broadband and wireless services.  No favoritism or HOV lanes to the ones that pay an extra fee.  For the companies that have spent huge amounts of capital building these online highways, they believe that "they should have more latitude in deciding what content travels over those networks."  It is a classic case between private business and public policy.  Which way the District Court decides matters little; it is the kind of case that ultimately must find itself in front of the Supreme Court.  Concerns on both sides of the issue are plenty and the final decision will have huge repercussions.

 

Samsung Smartwatch Getting Great Press From Today Show

Thanks to Hoda Kotb and the Today Show, the Samsung Smartwatch has been getting some great press.  While demonstrating the new watch, Hoda accidentally shared her cell phone number as well.  The result, she began to receive call after call as well as voice mail messages.  The resulting flub has led to more press on the Today Show as well as across media.  Great stuff.

Aereo Competitor Shut Down By The Courts

Federal courts sided with the broadcasters against FilmOn X, an Aereo type of product that offers consumers broadband access to broadcast channels.  While not completely stopped, FilmOn X can not continue to operate its business under their lawsuit is settled.  "The injunction issued by (U.S. District Judge Rosemary) Collyer applies nationwide, except in the jurisdiction of the 2nd Circuit, which includes New York, Connecticut and Vermont. The 2nd Circuit's decision in the Aereo case applies in that geographical region, Collyer said."  

How different the Aereo business model is from the FilmOn X model may be at the center of each of their lawsuits.  Can an antenna be an antenna whether it is in the home or situated in another area and operated by a third party?  Can these companies each claim that they are charging for the ancillary service that they offer and not for the broadcast signal itself.  Certainly in the world of digital media rights, these and other concerns need to be addressed.  For now, Aereo may be a bit concerned by this recent ruling. 

TiVo Seems Ready for IPTV And The Cloud

Great news from the TiVo camp on their partnership with Entone.  "The agreement appears to represent TiVo’s first that will factor in potential cloud DVR services. Last week, TiVo CEO Tom Rogers said his company doesn’t care whether DVR storage is based in the cloud or in the home, but still believes that local storage still hold some advantages."  It also clearly shows that TiVo is following the trend toward more IP based and OTT content opportunities.  There is clearly more push toward IP based distribution and this partnership will foreshadow the direction the cable companies need to proceed.

What To Expect From Next Apple Announcement

Apple is prepping for its next announcement on Tuesday and speculation of its agenda goes from big to small.  Will they finally announce an Apple television set or will the next new thing finally be the apple iWatch?  With Samsung preparing to announce its own smartwatch, Apple might need to as well or be seen as late to the party.  There are others don't expect much more than the planned upgrades to iOS and the next iteration of the iPhone, with cheaper prices and multiple colors.

And what about the Apple TV set top box that has been around for some time but not nearly as popular as other set top devices.  One news article suggests that a new upgrade is coming to the device with more functionality and additional streaming video partnerships.  Could this be enough to increase demand for the $99 box or will a price cut also be in the strategy? 

I think Apple has more potential working with their set top box then trying to build a TV set, especially as cable and broadcast networks remain firmly in bed with cable operators.  We are a decade or more away from a time where serious cord cutting has enough impact that consumers are buying TVs with direct connections to broadband services.  Consumers have become increasingly comfortable with boxes sitting on top, on the side and even behind their TV set, providing additional controls and ergonomic features.  In fact, I think it might be smart for TV manufacturers to go the opposite route and build a monitor only big screen device that requires the functionality of a third party box as its brains.  One less remote to clutter the coffee table and a better consumer experience. 

For now, it is one week till the next Apple announcement. Let's enjoy watching its stock price rise and fall on speculation and expectation. 

Microsoft Making New Acquisition Into Smartphones

If you can't make it, buy it.  Microsoft has announced that it is buying Nokia's handset business in order to take more control over the manufacturing process and build on their past success.  "Microsoft is betting it will have a better chance of narrowing the gap if it seizes complete control over how the mobile devices work with its Windows software."  Given the fickle nature of phone lovers, the race for dominance in the market is fierce.  Where once Nokia held the top position, now it is Apple and Samsung, but that doesn't mean tat Microsoft and Nokia can't get back in the race.  At the same time, it is more than just the device; it is the apps that run behind it.  Microsoft has much more work ahead of it to gain a foothold against the Android and Apple libraries.  Still, anything is possible and the race is far from over. 

CBS And Time Warner Cable Settle At Last

As of 6pm ET last night, Time Warner Cable customers in NY, LA and other markets got their CBS networks turned on.  And with NFL a week away, just in time.  "The companies didn't disclose specific terms of their new retransmission contract, which spells out the amount of money that TWC pays CBS for the rights to carry the CBS-owned TV stations."  And as all their customers know, that means to expect another subscriber rate increase.  So what happens to all those over the air antennas that customers may have bought?  Perhaps back in the closet till the next broadcast network follows the same playbook.