Microsoft Office Comes Too Late To The iPad

With this week's release of the movie "Noah", a now distinct animal was late to board the ark.  Noah had just closed the doors and the animal and his mate were left out to the elements.  Today, with the announcement that Microsoft Office is available on the iPad, Apple CEO Tim Cook could have said the same thing.  He didn't but it still won't matter.  iPad users have found other alternatives to Microsoft Office, some that work quite well in collaborative user environments. 

The Office app may get downloaded and some may actually use it, but will it spark additional revenue in the Office suite of services?  I doubt it.  The rise of cloud based applications from Google and others have made the Office a less important piece of software.  In addition, PC sales have dropped while tablet sales continue to grow.  And users have found apps to support their business and personal needs.  Microsoft's Office has come late to the ark and while it may be lucky enough to get inside, will most likely be soon ignored. 

Personally, I have always liked the Microsoft Office suite and use it daily on my computer.  But it is a different story on my tablet.  That Microsoft has finally acknowledged the need to play in the mobile sandbox is great and with its new leader, the hope is that their is innovation on its way, to become the next generation Microsoft.  It is the potential of what can come next out of Microsoft that I look forward to hearing about.  As to Office on iPad, let the downloads and revenue numbers speak for themselves.

If Comcast Can Do It, Then Why Can't Dish

The maturity of the cable industry, the rise of broadband streaming platforms, and the need for more cost efficiencies have led to Comcast pursing an acquisition of Time Warner Cable.  And if Comcast can do it, then why can't Dish.  That's the thinking of Dish Chairman Charlie Ergan to reach out to his competitor DirecTv to merge.  But while Comcast and Time Warner Cable don't compete given that they each oversee different markets, Dish and DirecTv compete 100% for satellite coverage.  Yet the rationale for the latter to merge makes complete sense.

The threat of wired and wireless cable, telco, and broadband carriage from businesses from Comcast to Verizon to Netflix are much more of a threat to business for Dish then competing with DirecTv.  As they lack an owned broadband platform, they are both much more at risk from future growth.  Combining businesses may not give them programming cost efficiencies, but it will give them technical ones. 

Still a Dish- DirecTv merger has no chance to move forward until the Comcast - Time Warner deal is fully vetted and approved.  Then a real case can be made for these two satellite behemoths to continue.  Ultimately though, as Ergan has correctly tried to do with his efforts with LightSquared, the satellite business needs a two-way broadband connection to position itself against cable and telco.  That is truly the means for getting a more competitive broadband landscape for consumers. 

Movie Attendance in US Dropping

Despite the insatiable interest in movies, attendance at movie houses are dropping.  Revenues grew slightly but only because of increases in ticket prices.  And technology may be partially to blame for this drop in demand but it isn't the only reason.

Consumers today have far more choice to watch movies, from premium cable channels and same day as theater movies on demand through your cable box to subscription streaming services that can provide an all you can eat buffet for a month at less than the cost to individually go to the movies.  And for many on a budget, their entertainment appetite can be satisfied.

But for those that seek a night away from home and desire a "just released" movie, going to the theater becomes a date night or time to hang with your friends.  But for that important college age group, they are choosing to not go that route.  "Frequent filmgoers from 12-24 are likely spending much of their previous moviegoing time watching a variety of other screens."  And that also includes the rise of gaming devices like XBox and Playstation.  They are also on a budget and may be more particular but which movie they will watch in a theater and which ones they will wait for its later release on another platform.

So what are the solutions? There is some speculation that movie prices may drop although only on a pre-determined night and certainly not a weekend.  But I think that will not win back the millennial audience.  That demographic needs for the movie house to once again become a destination point, not just for watching movies, but as a gathering to relax, play, and share.  My ideas range from a one fee to stay all day to a refreshing of the lobby with seating and arcade games and wireless.  From there, sell a richer assortment of refreshments and merchandise.  I might borrow the marketing efforts of gamers and offer to certain films added extras not available elsewhere, ranging from merchandise to mobile links to additional content to connected game play. 

As to the older demographic, the key is convenience, comfort, and cost.  Off peak discounts continue to work as well to stay within their budget.  There is nothing like a night out, away from the home or apartment and with the company of friends and family.  The movies may be watched quietly, but it is and always will be a social experience that allows us to communicate our likes and dislikes about the film and to transport us to other times, worlds, and ideas.  Attendance may be down but there is opportunities to get it growing again.

Disney Acquires More Online Content

The mouse wants to be more hip and that means going where the millennials roam.  While Disney produces tons of content, new generations of viewers are more web focused.  So to capture that audience, Disney is acquiring Maker Studios, an online content company with substantial distribution on You Tube. 

As we know, this online millennial demographic can be very fickle.  Maker has been able to reach them with discovered talent including PewDiePie, but as Disney knows, what is in the pipeline is also important.  Also key for Disney is the synergy of such a purchase.  How will Maker Studios fit in with its broadcast, cable, and theme park businesses?  Will PewDiePie get a show on Disney XD?  This acquisition is clearly opportunistic for Disney and gets them closer inside the You Tube platform and its data, but is that where Disney really wants to be?  Could they have used their current stable of Disney talent to migrate from the cable platform to the online space without investing in the Maker business?

Yes Maker has currently proven itself as a leader in online video content and Disney sees that as a important piece of the puzzle.  In a make it or buy it world, I wonder if Disney's acquisition of Maker Studios best serves its long term interests.  Disney continues to create a large stable of new talent for its young audience base; that they could do the same in building out a stronger online base would have seemed a more preferred strategy.  Yet they have chosen to acquire and the hope is that Maker Studios talent base will bring new ideas to the Disney model and integrate well with all the businesses. 

Consolidation Meets Indie Film Market

Industry consolidation isn't anything new.  On the operator side of the world, all the news is about the proposed Comcast acquisition of Time Warner Cable.  And on the independent film side, the latest plan is that MSG Networks is buying 50% of Tribeca Enterprises and the Tribeca Film Festival.  So where is the consolidation, in the hands of the Dolan family. 

Before MSG spun off, it was part of a larger company, Cablevision Systems, which also owned Rainbow Networks.  Each was spun out into its own public company with Rainbow rebranded after its largest network, AMC Networks which is also the home for IFC and the Sundance Network, both independent film networks.  All these companies, Cablevision, AMC and MSG are owned by the Dolan family with patriarch Charles Dolan heading Cablevision and son Jim heading MSG.  And Jim also sits on the board of directors of AMC. 

Ultimately, with the purchase of Tribeca Film, Jim Dolan will be involved in all three independent film companies - IFC, Sundance, and Tribeca.  Three major players who are also involved in production and distribution of independent films.  Consolidation indeed.  The purchase of Tribeca Films may not kill the world of independent films, but it certainly limits it.  But such is the nature of an industry's life cycle, birth, growth, and maturity.  And we now simply see indie films as smaller budgets run by bigger companies. 

Cord Cutters Take A Small Bite

The headline reads that TV subscriptions fall but when you look at the number of cable cord cutters in 2013, about a quarter of a million homes, total cable subscription remains north of 100 million subscribers.  In total drop, that equates to a quarter of 1 percent.  So, will the number of cord cutters continue to increase, the answer is yes, but given consolidation of cable operators, the rise of broadband subscription, and the close ties of cable operators and programmers to authenticate the TV Everywhere experience, it seems unlikely that cord cutting will impact the economic model for quite some time.

Certainly there will be a transition to a more IP world through the cable box, but the box to the home will still be controlled by the cable operator, offering important revenue opportunities and big data for research and better advertising.  Most likely, OTT content like Netflix will end up working along side the cable universe and no longer seen as a competitor to cable; rather, as another option for the cable customer. 

Unfortunately the costs for cable will continue to rise, causing more households to cut the cord.  But I expect that cable operators will smarten up and figure out new revenue models to win back those cord cutters and creating a better cable/broadband experience for a reasonable monthly fee.  Because as a connected customer, the cable operator has more opportunity to sell in more services too, like security and e-commerce.  As for the cord cutter news, a .25% drop may be a tickle on the back of the throat, but how big it gets remains to be seen. 

Playstation Venturing Beyond Gaming to Video

Given the competition between the Microsoft XBox One platform and Sony Playstation 4 platform, it comes as no surprise Sony is following Microsoft into the world of original video streaming.  They seem to be sharing the same strategy playbook, premiere gaming, original video content, and connectivity with other online streaming platforms.  What differentiates the one from the other certainly depends on the exclusivity and appeal of the games and content that they carry. 

"Sony's foray is the latest example of how videogaming devices are incorporating more entertainment features as they try to broaden their appeal in the living room. The PlayStation already allows users to buy an array of digital downloads, such as TV shows and movies, and can access streaming services. The company recently said it also plans to launch a service to stream games."  These gaming platforms would certainly love to be a cable box , but unlikely as the value of that connection is too important to the cable operator.  Still, we find ourselves with multiple OTT boxes connecting to our TV set, side by side with our cable box.


Original content, exclusive to one platform, will prove difficult for both Sony and Microsoft to demonstrate success. It certainly creates added value for the owner of these gaming devices but I contend that their primary motivation for owning is the exclusive games themselves.  Besides the fact that the content can only be found on one device, it competes for awareness against other OTT content distributors like Amazon, Netflix, and Hulu, that allow themselves to be watched through multiple OTT platforms as well as through mobile devices.  And given the ease of connecting to a show like Netflix's "House of Cards" verse a Playstation show like the newly announced "Powers", consumers will have a far easier time finding and connecting to Netflix. 

So does that mean that Microsoft and Sony eventually open up these "exclusive" shows to other platforms? By keeping them behind their own pay walls, they retain exclusive charm, but limit viewership.  And once they are syndicated to other sites like an Amazon or Netflix, lose their exclusivity and value to the gaming platform.  My advice to both Sony and Microsoft, stick strictly to exclusive games and let your boxes connect to other streaming services like Netflix or Hulu or MLB and compete head-on with the Roku's Chromecast and Apple TV as the preferred device. 

Pandora Following Amazon Price Increase

With so little backlash to the 25% Amazon Prime price increase, it comes as no surprise that other digital streamers would also follow along.  While I speculated that Netflix could easily do the same thing, word comes that Pandora is next to increase its digital subscription.  Pandora, currently the largest online music streamer thinks it can increase its rate even more than Amazon's 25%. 

"Listeners who now pay $36 a year for the service will be asked to pay $3.99 a month, Pandora said today on its blog. For new subscribers, the price will be $4.99 a month, starting in May."  So existing subscribers see a 33% annual increase while new subscribers will pay even more, a 66% increase from earlier pricing.  Customers already paying $3.99 will not see an increase but don't be surprised that even those $3.99 customers will find themselves by next year also paying a dollar more each month. And given how well the Amazon increase was delivered, this news will blow over just as quickly. 

What does it all mean?  As consumers get more and more value and enjoyment from their digital services, the companies can start increasing rates figuring that the value received will leave many to pay the higher amounts.  With revenue coming from either subscription or advertising, both must rise for them to continue to succeed.  And once consumers are loyal to the value of these services, we pay more in order to stay connected in order to continue to enjoy the content they deliver.  As a percentage, the increase seems high, but when seen as about a buck more a month, we are willing to accept it. 

Who Needs A Smart TV?

With so much video content accessible on the web, we all need our TV's to be smart, but we may not need smart TVs.  In a new book on Steve Jobs, we are hearing a different story regarding his interest in selling a smart HDTV.  Where the Isaacson biography said it was part of Job's vision, the latest book says it was not the future for Jobs or Apple, because of little profit margin and product longevity.

I have always felt that Apple shouldn't invest in a TV set; make monitors of many sizes, but an integrated, smart, cable ready HDTV set, no.  A smart TV becomes less important with the release of many connected products that can turn any monitor into a smart TV.  First is the Apple TV box, rumored to be refreshed shortly, that connects to an iTunes library, and other web content.  We also have the Google Chromecast and Roku stick, plus gaming platforms from Microsoft and Sony and of course TiVo.  And now more news of a connected device from Amazon, long rumored and possibly a must have device for Amazon Prime subscribers. 

With so many connected devices, who needs to upgrade their TV set to a smart TV?  Unless marketing can demonstrate to the consumer that a smart TV can deliver a better user experience, unlike what they could get from these other boxes, dongles, and sticks, then the added costs may not be justified.  Plus, it is about the content and the device that better connects to the sources of that content that matters most to the consumer.  Deliver with it a better search experience and recommendation engine, sharing and availability across all your viewing devices, and you have a very valuable connected device.  With Amazon's box launch, competition will only get fiercer. 

Lots Of International Cable Buying

Its seems that cable ownership is getting pretty popular lately.  Here in the US, we've been watching the potential acquisition of Time Warner Cable, first by Charter and now by Comcast.  And internationally, we are hearing more news.

First up, the news that Vodofone, having sold its ownership of Verizon Wireless back to Verizon, has now purchased has Spanish cable and telecommunications giant Ono.  Today comes news that Liberty Global "has agreed to purchase the remaining stake it does not already own in Chilean cable operator VTR".  And while owning the pipes for cable TV is valuable, also providing broadband connectivity makes these deals even more interesting. 

For Liberty and John Malone, ownership of a piece of domestic cable operator Charter as well as its international ownership, truly makes them a global player.  And who knows what the next possible target might be. 

Will Subscribers Drop Amazon Prime Because of Price Increase?

The question should really be how many because price changes obviously affect purchase decisions.  And while a 25% annual price increase sounds like a lot, the monthly increase is slightly more than a dollar.  Amazon Prime bundles both shipping and its video streaming business together so that the value proposition may be different for those that use the service primarily for shipping verse others that care more about online streaming.  Still, for the profitability of Amazon, such a move seemed necessary. 

Subscribers will complain about the price increase and others will likely drop the service.  But I suspect that these complaints quickly go away.  I'm confident that Amazon put all its economics and statistical research together and determined what the price elasticity of their product was to their bottom line.  As one analyst wrote, "He estimated that a quarter of the Prime base was highly sensitive and might rebel. That might cut $800 million, or about 1 percent, from Amazon’s revenue. On the other hand the increased fee from more easygoing customers would add $150 million to the bottom line, which for Amazon would be a lot."  That still results in a net differential of $700 million, a nice increase from subscription revenue. 

Don't expect that this increase will have the same backlash that Netflix felt when it thought to split its DVD mail business from its streaming one.  I suspect a number of Amazon Prime subscribers will not notice the increase when it goes into affect later this year.  It will appear on a credit card bill that will be dutifully paid without much question.  And once this increase is established and proved correct, don't be surprised to hear that Netflix makes the same choice to raise its monthly streaming fee from $7.99 to $8.99.  As a percentage, it may sound like a lot, but to most consumers its only a buck. 

Sports Nets Have Hard Time Getting Carriage

The high costs of sports programming has led to cable operators unwilling to carry their networks.  And since their license fees are among the highest compared to other entertainment networks, cable and satellite operators have found that not carrying these channels hasn't led to subscriber drops while keeping their programming expenses lower.  Time Warner Cable and Dodgers owned SportsNet LA is facing problems getting launched on other cable distributors.  "Armed with information about their customers' viewing habits, other distributors say the data doesn't support paying such a high price for a channel that an overwhelming majority of their subscribers won't watch regularly."

And their network isn't the only one facing these same distribution problems.  "DirecTV, as well as AT&T and other pay-TV providers, also have passed on carrying a new sports channel in Houston. There, too, subscriber outcry and action has been minimal, pay-TV executives say."  College basketball net Pac-12 isn't being carried on DirecTv for the same reasons.

The solution may not be to fans liking.  By charging a per subscriber fee for a network, the costs, though high, are spread out among the entire base.  While a la carte may appear to be an option for carriage, the costs to subscribe by a particular household would be considerably higher.  As an example, a license fee of $4 per month per sub could translate to a consumer buying a la carte as high as $40 to $50 per month, if not higher.  Pricing would obviously depend on the percentage of homes to available homes that subscribed.  And at that level, only rabid fans would be likely to purchase.  Others might wait till later in the season and judging by the success of their team, to decide whether to commit to purchase such an a la carte pacakage. 

And so sports networks are not likely to agree to a la carte terms.  For Dodger fans, they might have to wait for the season to start to see what kind of appeal they bring as well as bring pressure for the cable operator to agree to these higher fees. 

Diddy Might Want His Fuse TV

While previous speculation that AMC Networks could be for sale came last week, today we are back to word that the fuse network is close to being sold.  According to the report, "Sean Combs, the hip-hop mogul now known as Diddy, has bid about $200 million for the Fuse cable-TV channel".  He would combine it with his own music channel Revolt TV and gain wider cable distribution.  Will Jimmy Dolan sell?  Is there other motivation to make such a deal?

For those that don't know, fuse and MSG CEO Jimmy Dolan also fronts a band, JD and the Straight Shot.  If you saw the movie, August:Osage County, you may have actually heard some of their music.  Perhaps a move with Diddy helps JD get his music a wider awareness and notoriety.  Or it is simply the time to cash out.  But given Jimmy Dolan's love of music and the music scene, it is hard to believe that he would let go of fuse completely. 

XBox One Uses Exclusive Content To Drive Sales

Content is king reigns again as Microsoft uses this strategy to drive sales of its Xbox One platform.  The content is Titanfall, a shooter game played socially.  And because it is exclusive, it requires both XBox and membership in Xbox Live.  With all the hype behind the release, Microsoft should see a bump in sales.  But is it enough to overtake Sony and its Playstation 4 system.

Certainly XBox needs this kind of game to drive sales but what it a calculated move to wait almost half a year from the launch of its new platform to release it.  Would it have helped XBox to deliver this game with the initial launch?  I suspect the initial strategy may have been to do just that but that the game simply wasn't ready in time to launch it earlier.  But if it was, why did they wait?

Beside launching a more expensive gaming system then the PS4 and not initially allowing older games to play on this new device, this may have simply been a third strike in missed opportunities.  Clearly the XBox One is not a bad device, it just is not as popular to date as its rival.  Hopefully, the release of Titanfall will be the exclusive content that brings sales figures closer to Playstation.

As for gamers like my son who chose the PS4, they are clearly disappointed that the game is exclusive to the other gaming system.  Will they switch? Will they hope that PS4 has its compelling exclusive content to remind them of the value of their system?  Or will they use an old XBox 360 platform to play the game when it is finally released in that version?

This millennial audience may have a hard time waiting for the next big thing.  They have been raised on immediate consumption and the thought that a future game is on the horizon may be hard to wait for. How many PS4 gamers also buy the XBox One; you never know.

Is AMC Networks For Sale?

Deadline Hollywood posed the question and offered some ideas as to who might be interested in buying the company with networks including AMC, IFC, WE, and Sundance.  Possible acquirers included Scripps (also thought to be for sale), Sony, CBS and others.  But the real question is, do the Dolans want to sell.  For many years, they have been reluctant to consider selling their Cablevision business as well as MSG which included MSG and the Fuse Network.  Months ago, Fuse was also considered for sale but believed to be at a price point too rich for many to consider.  Now with this speculation in Deadline Hollywood, I wonder if there is any fact behind the story or simply something to write.

Of course, one day all these Dolan properties will be sold, Cablevision, AMC, and MSG.  But as a family business, they won't likely sell till they are ready to walk away.  And for son Jimmy Dolan, the prospect of selling MSG and his beloved Knicks seems remote.  One day AMC and Cablevision, but not his Knicks. 

The End Of Banner Ads Part 2

Just a day after Lincoln Millstein predicted at the Media Summit panel that banner ads would be disappearing, his announcement is already coming true.  In today's NY Times, Disney Interactive announced that they are laying off a quarter of their staff.  And buried further down in the article, this little gem: "Mr. Pitaro (James A. Pitaro, the president of the unit, Disney Interactive) said that Disney Online, a collection of websites anchored by Disney.com, would largely abandon display advertising in favor of advertising sponsorships and a greater focus on promoting Disney-branded merchandise."  A very timely announcement. Banner ads don't work; I know as very few people ever click on my display ads on this blog site. 

That a major company like Disney is recognizing that banner ads have lost their impact and their value also demonstrates what Mr. Millstein believed, the need to get back to more creative thinking by content makers and advertisers.  Banner ads have been a stop gap approach to monetizing web content but not an effective one.  What advertising sponsorship means for Disney will have to be watched.  Will it be clearly showcased as advertiser messages or more of a native ad approach, resembling content but pushing an ad over editorial? 

The end of banner ads may not happen as quickly as Mr. Millstein predicts, but the fact that Disney is already agreeing should mean that others will follow this same course.  And Disney, taking another approach, stresses too the promotion of e-commerce on their site.  An opportunity that may not have been fully pursued.  But for every young prince or princess out there, an easy way to get Disney merchandise without going to their theme park.

Digital Hollywood Talks About The End Of Banner Ads

I had the pleasure of attending Digital Hollywood's Media Summit this week, featuring a number of fascinating panels and well regarded speakers.  At Wednesday's Media Strategies panel, I listened as Lincoln Millstein, SVP of Hearst Corp, provided great insights, along with the other panelists.  He went further by providing new examples, outside the web universe, to support his thoughts.  In one answer, he contradicted others by saying that cultures in an organization can change and cited two auto examples with Ford and General Motors.

And in another Q&A asking what the future will hold, he saw an end to banner advertising over the next 1 to 2 years.  Millstein said, "Brands, advertisers, agencies are taking back control of creative." The banner ad no longer works and more innovative ad approaches must be taken.    Of course, we know that banner ads won't completely go away, he later remarked, but their value will greatly diminish. 

Of course, what all content and distribution companies want to know is how do I best monetize my content and my platform.  For most, the source of revenue is either subscription or advertising.  Many believe that better data will help to improve the ad experience.  And personalization is key to a better ad experience.  It was also noted that buying information needs to be combined with interest so that ads aren't being pushed for products and services already purchased.  Ads after purchase are simply wasteful, as one panelist noted. 

Roku Delivers New Streaming Device

Roku has announced its next generation streaming stick that turns any HD TV into a connected set.  And at a price point half of its first generation model, at under $50, Roku is competing directly against Google's Chromecast and even the Apple TV box.  "The other major perk over the Chromecast is you get access to all 1,200 of Roku's apps, or "channels" in Roku's parlance. This includes nearly every major service -- such as Netflix, YouTube, HBO Go, Amazon Instant, MLB.TV, Showtime Anytime, and PBS -- as well as a huge number of niche content sources."  Impressive amount of content to make any consumer satisfied.  It should be available to the public next month.

What excites me more about their efforts is their search capability.  "Besides a new look, the app also integrates Roku's excellent cross-platform search, which scours several major content sources (including Netflix, Amazon Instant, HBO Go, and Hulu Plus) to find where a TV show or movie is available and how much it costs."  For those of us wondering where to find a certain show across content providers, this feature is sure to please. 

Roku clearly has raised the bar and what Google and Apple plan to do with their devices will only keep the competition strong.  Plus at such a low price point, Roku may just have the financial edge too.

Native Ads In The Form Of A Selfie

We all worry that we are being duped on web sites when we see content that is not truly editorial, but paid sponsorship from a company.  These native ads though have become more valuable than banners as more people click on them.  Whether they know it is an ad or not, the caption and photo engages us to click.  Some sites do more to tell us which content is paid and which is not; others do not.

So on the Academy Award telecast on Sunday, we were treated to Ellen DeGeneres taking a selfie with a number of stars using her Samsung Galaxy phone.  Product promotion, native ad, it was a scripted piece.  And from what we now understand, a paid for moment.  "The integration of the Samsung Galaxy Note 3 into the show itself offered another example of why marketers have become so fond of programming like the Oscars and the Super Bowl. They are live shows that tens of millions of viewers deem each year as must-watch television, and they provide numerous alternative ways to engage with consumers beyond traditional commercials." All I can say is brilliant marketing!

But there was unintended product placement, too.  "And during the pizza delivery stunt engineered by Ms. DeGeneres, there were two brand logos clearly visible on the boxes delivered to the theater: Big Mama’s & Papa’s Pizzeria and Coca-Cola."  Unfortunately, neither paid for a sponsorship.  And in fact, the soft drink sponsor was their competitor, Pepsi.  Of course, when programming is live, unintended things happen, too.  At least we didn't have any streakers.

Apple TV Set Top Not A Bad Business

With all the focus on on iPads and iPhones, Apple's set top TV box, priced under $100, continues to do well.  Last year, it sold over a billion dollars in revenue of this product and since inception has "sold more than 13 million units of its 'hobby' product, compared with eight million for the competing Roku set-top."  Not bad numbers given that Apple spends significantly more of its time on its other product line. 

The good news is that Apple recognizes that the Apple TV is not the runt of the litter and plans to put more investment and time into this product.  The hope is that a next generation will be announced before the end of the year.  Having that expectation myself, I have held off buying the Apple TV set top; I am eager for that new release to finally purchase one for at least one of our HD sets. 

Of course, I believe more investors and enthusiasts are still more interested in what next new product will emerge.  Will it be a TV set, a product I don't believe they should release, or a wearable device, like the possibility of an iWatch.  I would be more excited to hear that news.  Until hten, congrats on the good news on Apple TV set top boxes; it may not be as sexy as an iPad or iPhone, but it is a welcome device in the home.