TiVo Wants Its Piece Of The Aereo Market

As Aereo's business model fades away, others are trying to pick up the pieces.  The latest to step in is TiVo who has announced a new DVR box that can receive digital broadcast signals from an at home antenna and deliver DVR functionality, all without a cable subscription.  Per Multichannel, the Roamio OTA box "is also compatible with the TiVo Stream, a Slingbox-like device that can stream live and recorded TV to smartphones and tablets in or out of the user’s home". 

The TiVo box costs under $50 and requires a monthly subscription to TiVo at about $15 a month, a little more expensive than what Aereo charged, but cheaper than a cable subscription.  The service is clearly aimed to the cord cutters and antenna households that might want more functionality and channel availability at a lower price than cable TV.  Given the court decisions against Aereo, this device might be a great solution, but it is not the only one as other services are popping up as well.  With Aereo on the way to oblivion, others are clearly picking at its carcass.

is also compatible with the TiVo Stream, a Slingbox-like device that can stream live and recorded TV to smartphones and tablets in or out of the user’s home - See more at: http://www.multichannel.com/news/technology/tivo-roamio-ota-model-targets-cord-cutters/383346#sthash.TIBw6cO4.dpuf

Is Aereo Dead?

Now that the Supreme Court ruled that Aereo doesn't have the right to repurpose free over the air signals to consumers, now comes news that a federal court also ruled that Aereo can't operate as a cable TV operator either.  Aereo can't seem to find any wiggle room it seems to continue to operate as an OTT service for broadcast signals.  Will Aereo continue to fight or is time to shut down completely?  For consumers seeking a low cost way to get broadcast signals that can be streamed to their mobile devices, it may be time to buy a digital antenna and a sling box.

GameStop Soars Despite Landscape Changes

It is hard to stay relevant for a long time in an ever changing world.  Technological change, environmental change, social change all can either propel or damage commerce.  We have seen such an effect that digital has played on big box stores competing against Amazon or how technological change has hurt the Radio Shack brand.  For those that adapt to changing market forces, like Netflix who moved from DVD to streaming, a future continues, but for those that don't shift to changing conditions, both macro and micro, like Sears, the future looks bleak.

So it is a bit surprising for many that GameStop continues to see record earnings as game use has shifted to tablets and platform games can be downloaded for play rather than purchasing a disc.  But GameStop took advantage of the new gaming platforms from Xbox and Playstation to exceed expectations.  Per the Wall Street Journal, "The retailer previously has struggled with a slowdown in sales of videogame discs as game developers and rivals expanded software downloads and other digital offerings. In one recent example, Electronic Arts Inc. EA +0.55% introduced a subscription service that lets Xbox One owners play EA's games for $4.99 a month."  A subscription service could truly hurt the current GameStop model.

Still, the problem with downloads is that once tired of the game and looking for the next one to buy, consumers are unable to sell it to someone else.  GameStop's service of purchasing and reselling used games appeals to a budget conscious consumer.  Simply put, a downloaded game can't be resold.  But GameStop can't believe that this model will be enough to remain competitive.  It must seek new sources of revenue and adapt to the changing landscape of digital.  A GameStop subscription service might just be a possible future to explore.  For now, congrats on staying relevant, but don't stop keeping your eye on future growth. 

Barnes & Noble Partners With Samsung

A partnership has brewed between these two forces as the Nook is finally a part of the Galaxy line of Samsung tablets.  Per AP, "The 7-inch Samsung Galaxy Tab 4 Nook will sell for $179, the same entry price of the non-branded Samsung Galaxy Tab 4."  According to the report, the new Nook has access to both Google and Nook stores and the device will have a camera on both the front and rear.  

Will customers flock to the new device or wait to see what Apple offers in September?  Regardless, this move from B&N to partner with an established brand like Samsung is a smart one.  It should open more distribution opportunities for both and more access to a wider variety of apps and downloads. 

Playstation Converted Xbox Users To Their Platform

According to a Nielsen report announced by Re/code, "an April Nielsen study found that 31 percent of PS4 owners did not own Sony’s previous console, the PlayStation 3, but did own an Xbox 360 or Wii."  And while no particular analysis has been confirmed, it seems that gamers may be a fickle lot. 

As a parent of a gamer, I was involved in the lunacy of announcements with both Sony and Microsoft introduced last holiday season new gaming platforms that required new games to use.  It meant that Xbox 360 games couldn't run on Xbox One and PS 3 games wouldn't run on PS 4.  My son is always looking at the next new game so that development led him to compare and decide which system best served his future needs.  And he, like the other 31 percent switched from Xbox 360 to PS4.

Would the outcome have been any different if these consoles enabled older versions of games to play, I'm not certain.  But I do know that by having both companies push new gaming platforms, they each pursued a strategy of touting platform superiority.  For Xbox, it was as both a gaming and entertainment console; for Playstation as a better gaming experience.  For pure play interests, PS 4 won.  Given that both companies embraced a due over of their respective platforms, it is a no-brainer that consumers would compare and pick based on which platform best served their interests. 

Apple's Stock Price Echos Investment Strategy

As Apple reaches an all time high in its stock price, it reminds me of the adage, buy on the rumor, sell on the news.  On September 9, Apple is expected to announce new versions of its iPhone, possibly new versions of its iPad, and the first launch in a number of years of a new product, the iWatch.  That is three weeks away so till then we can only speculate on what gets announced.  But for those that are fans of Apple and invest in it as a company as well, that potential news will drive the price up into Septemebr 9. 

Post that date, profit takers will no doubt sell on the news of product releases.  Yet that is short run thinking and for those that invest in the long run, the combination of long run growth and dividend return should continue to make Apple a valued investment.  For it is more than just one or two products; Apple has built an ecosystem where its products work easily with one another, iMac to iPad to iPhone to Apple TV to possibly the iWatch. Products that work seamlessly and easily with one another. 

So enjoy the up and down ride of the stock price.  Some investors will chase the short term profit while others will enjoy the long term journey.

RIP Don Pardo

Don Pardo passed away at the age of 96, with over 4 decades in media.  From radio to television and even on digital, Pardo has touched multiple media platforms.  And while his work was mainly that of voice overs, he occasionally appeared on screen as well.  He was known by multiple generations of fans, in his early days on quiz shows like Jeopardy to his most recent work on Saturday Night Live.  And as these shows have made their way on web and OTT platform, so has Don Pardo.  He will be missed.

Football Equals Primetime Broadcast Ratings

This year, CBS begins to air Thursday Night Football to all its broadcast markets.  Certainly seeing the success that NBC has had with its Sunday Night Football games, CBS wants a similar outcome.  For both broadcasters, it attracts a large Nielsen rated audience in primetime as well as serves as a promotional vehicle to its other primetime shows.  It has previously worked for NBC in past years to raise its ratings and should do the same for CBS.

But this is not a new phenomenon.  For years, ABC was the proud owner of Monday Night Football across its broadcast footprint.  It was the home for Howard Cosell, Frank Gifford, "Dandy Don" Meredith and more recently John Madden.  But a few years ago, ABC made the decision to move its football franchise off broadcast and onto its sister cable network, ESPN.  And while it surely helped ESPN ratings and assured higher license fees, I'm not sure if their ABC parent wouldn't mind now having their Monday night franchise back. 

Now as a football fan, I worry that too many nights of football will kill the golden goose.  It's one thing to commit to a Sunday afternoon of football, but the more hours and more days, the harder it is to stay tuned in.  Sometimes too much of a good thing is simply too much.  Yes Thursday Night football was first on the NFL Network, but with its move to a broadcast network, it will surely ask for bigger rivalry games to attract bigger audiences.  Thursday Night, Sunday Night, and Monday Night might just be too many.  But as we have come to learn, its never about the fan, only about the revenue.

Xbox Entertainment Might Still Have A Future

With Microsoft concentrating on cloud and products, their adventure into video content creation became short lived.  The Xbox gaming platform has been successful, but entertainment is a more risky business.  So with plans to shutter their Xbox Entertainment Studio (XES) arm, the possibility of a sale has emerged.  Per the Hollywood Reporter, "XES is shopping for a new home and has had preliminary talks with Warner Bros. about possibly becoming a stand-alone entity based at the studio. In that scenario, Warners would look to merge XES with Machinima, the video game-centric YouTube network in which it owns a stake." 

Given the rise of OTT platforms, this kind of deal makes tons of sense if the content inside the Xbox pipeline has some value to begin with.  A deal with XES doesn't necessarily automatically deliver a platform deal to the WB.  In addition, I would love to learn through Xbox research how many hours of video content are already being consumed through the platform.  I can only imagine that the vast majority comes through Netflix, Hulu, and You Tube access.  Lastly, one can only hope that the content coming out of XES is both desirable to the core audience and able to deliver some revenue in return.

In this case, it appears XES may have some distribution opportunities on premium cable as well.  Valuable content with cross platform interest that grows audience interest and long term appeal can do quite well.  Their hope is that their Halo franchise is case in point.  For Warner Bros, it is a continued eye on a future outside the traditional platforms of theatrical and television.  The rise of digital distribution across OTT platforms adds another market to mine.  And having content that appeals to the Xbox core audience demo may be a good fit. 

Al Gore Wants The Rest Of His Money

When Al Gore and his partners sold Current TV to Al Jazeera, a portion of their sale was placed in an escrow account for certain potential debts owed prior to the sale.  It seems the date where all bills were to be payed has passed and Gore and partners seek the remainder of their funds.  But with Al Jazeera America, the new name for the network, not doing well in the ratings or ad dollars, those funds remain in limbo.  Yet they have grown their subscriber base from by thirty percent since the sale.  According to the NY Times, Al Jazeera sees growth, but is not ready to deliver the rest of the funds to Gore.  I just wonder if they are still happy with the deal they made. 

A Typical Day In The Internet Of Things

My morning starts as it usually does with my smartwatch gently buzzing my wrist.  I touch it just before my smartphone emits a later ring to remind me to rise.  As I head down the stairs and into the kitchen, I announce to my coffee maker, "start brew" as I walk to the door with today's trash to place it outside for pick up.  The door sensing my closeness, unlocks. Oh how I wish it would open automatically...maybe some day.  As I head to the curb, the door locks behind me, but not to worry; as I return, the door once again unlocks and allows me reentry.  As I enter, my smartwatch buzzes me with some breaking news.

With coffee in hand, I open my tablet to read my morning paper and catch up on any early emails.  It feels a little cool in the house, so I simply say "turn temperature up two degrees" and the HVAC system quickly begins to raise the thermometer setting in the house.  No matter, when everyone finally leaves this morning, the thermometer will automatically adjust to a preset higher temperature.

Its off to the gym.  As I enter my car, my smartwatch tells the car to engage the engine and off I go.  Driving along, I receive a text on my smartphone which is automatically moved to my car screen.  A quick glance and back to the road.  At the gym, I decide on a quick swim or jog today, either way, I can see my heart rate rise and count the distance I've traveled.   I'm also counting calories I've burned as well as eaten on this diet.  A quick bit at their snack bar, paid for with a swipe of my smartwatch over their payment machine.  After the gym, its off to work. 

A long day in the office finally brings me home.  In the car, I speak into my smartwatch to tell my home to cool down the house prior to my arrival.  The front door once again unlocks as I approach.  And as I enter, a preset radio begins to play.  But I am in the mood to watch some television.  "Radio off" I announce, then "TV on".  I follow that command with "Channel NBC" and watch the news.  The cable box knows it is me watching via my smartwatch proximity to the cable box.  Sitting on my couch, I speak "Oven on 450 degrees" as I start to consider making dinner.  The refrigerator counts that I have removed a steak and automatically adds to the grocery list on my apps.  I decide to buy more spices as well and command "grocery list add garlic powder".

As night approaches, I command "Turn down for bedtime".  The drapes in the living room close and the HVAC system changes the temperature for night.  A full day, but one made simpler with the internet of things. 

Three Digital Marketing Trends

It is hard to disagree with the article in ClickZ entitled These 3 Digital Marketing Trends Are About to Change Advertising except to say that it already has.  The three trends cited are programmatic ad buying, real time marketing, and native advertising.  We live in a world of immediacy where information is value.  Our digital landscape has enabled us to not only buy and sell in real time, but to also know more about the consumer then ever before.  And the power of this demographic, psychographic, and sociographic information allows for a more targeted, more customized, more specific ad and marketing message. 

And as real purchase data gets migrated into all this big data, it will only grow more powerful too.  The question is will consumers remain apathetic to the acquiring of all this data through cookies and other means, or will they want to reclaim more of their privacy? Do consumers like that sites feed them display and video ads shortly after a search on best vacuum cleaners perhaps?  Or will they find it a bit unnerving.  Data and research are powerful tools that power programmatic advertising, real time marketing, and even native content marketing.  Its use makes the technological elements that much more useful and effective.  As to trends in the future to look for, my bet is on the rise of e-commerce purchases to future advertising. 

How Are You Getting Your News?

With the recent passing of Robin Williams and Lauren Bacall, it struck me how we are getting our news.  While some continue to use TV and radio for breaking news, the rise of social networking and digital feeds has taken over as the first source of information.  Some heard through push notifications from their Breaking News app, others from their Twitter or Facebook feeds.  It has become our primary source for news and information, literally moments after it happened. 

At the same time, we also find ourselves questioning the info.  Is it a hoax or true?  Do we accept the first tweet as gospel or wait for more verification to authenticate the story.  Because social networking is open to all to post, we don't trust it as much as a more verifiable news outlet.  The adage, trust, but verify, is often taken into consideration.

The other thing I noticed was how quickly online sites used this breaking news to remind us of the great work left behind.  Huffington Post, Buzzfeed , and others quickly created articles like 17 of the most memorable Robin Williams movie quotes and 10 Robin WIlliams TV appearances you forgot about.  We find ourselves both mourning as well as celebrating a life. 

As we have become more and more connected, we expect news and information to be delivered instantaneously.  No longer can we wait for the morning edition of the newspaper to arrive to learn more details or wait till the nightly news on TV for latest updates.  Our smartphones and tablets have become even more important to us in receiving content.  But don't be naive that it is entirely truthful either.  Given the speed of sharing, not all the facts may be in. 

Not Likely To Add Facebook's Messenger

Yes, I too have been asked to download and launch the Facebook Messenger app to converse with my Facebook friends.  And I like many it seems have not launched the service on any of my devices.  Those that really want to text, email, or talk know my email address, cell phone, and hopefully my other contact information too.  Frankly, one more messenger service does not make my life easier. 

When the message app was inside Facebook, it did enable another way to connect to a friend.  But admittedly, I didn't use it that much.  If I didn't post a Happy Birthday message on their wall, it was a message to wish them congratulations.  And like Facebook, when I use the message app inside LinkedIn, it quickly enables a one on one conversation; but I would be equally concerned if LinkedIn tried to create a separate messenger app as well.  Then, it back to the email and text route. 

For those that have made the switch to the Facebook Messenger app, the comments have been less than kind.  Per Huntington Post, "Since Facebook started forcing people to switch over, Messenger has climbed to the top spot for free apps in the Apple App Store. That said, the newest version of the app has a terrible 1-star rating."  At this point, I don't plan to download it. 

When Distribution And Content Can't Work Together

It has become fairly typical to see a content network and cable operator fight over license fees with drops of service and consumer pr to drive a settlement.  It is less so in the world of retail.  A product can't negotiate shelf space in a brick and mortar store and ends up off the rack but the consumer rarely comes between such negotiations.  But in the world of digital and the convergence of retail and content, the consumer is actively included once again.

I speak of the public negotiation going on between Amazon and Hachette, a book publishing company, and a second one now emerging between Amazon and Disney over DVD content.  Amazon is not new to this strategy.  Per the Wall Street Journal, "Amazon briefly cut off pre-orders of physical versions of movies from Time Warner Inc.'s Warner Bros. studio earlier this year before reaching an accord. During contract talks several years ago, Amazon halted customers' ability to buy books from publisher Macmillan."  It is simply unusual to see such negotiations in the retail world being so public.

And while this is playing out in the press, with letters from authors and articles daily, I am most surprised how quiet Amazon's competitors have been.  Where is the marketing and public relations arms from Barnes & Noble, Target, Walmart, and others touting that they indeed carry all these items and at great prices, too.  Certainly, timing is everything and sometimes it makes sense to kick them when they are down.  And lastly, its much easier to find another retailer carrying a DVD or book than it is to switch cable providers.  Just a couple months ago, that is exactly what Stephen Colbert told consumers to do.   While consumers have gotten involved in retailer quarrels, mostly to boycott products, it is a new world when consumers are being involved in retailer and content negotiation issues. 

Netflix v. HBO

One is a cable premium network, the other is a digital streaming service, one requires a cable subscription, the other access to broadband.  Yet both deliver original and licensed content in a subscription format.  As the leader, HBO has normally had to compete with other premium channels including Showtime, Starz, and the upstart Epix on the cable platform, while Netflix sees more competition from Amazon and Hulu.  And as the two services try to crossover into each others space, there is competition brewing between Netflix and HBO.

For HBO, their push into digital is the successful HBO Go app which lets cable authenticated subscribers stream and watch content on their mobile devices; For Netflix, it is access on OTT boxes, including TiVo, who now has some cable MSOs accessing it along side cable premium services.  And as each financial quarter is announced, competition extends to their balance sheet.  "The company's founder and CEO, Reed Hastings, announced in a Facebook post on Wednesday that for the first time, Netflix has pulled in more subscriber revenue than HBO over a three-month period."  While HBO still has more profitability, it has also been doing it a lot longer.  But Netflix continues to disrupt the business model and for that HBO and the other premium cable services need to keep pushing their value and content advantages. 

T - Mobile May Have Other Suitors

Sprint decided to pull its bid to merge with T-Mobile, either because it doubted it would receive FCC approval or simply felt it wasn't a good fit.  But T-Mobile may not be single for long.  Speculation comes that Charlie Ergen and his Dish Network might once again be interested in pursuing a telecommunication company.  Last year he tried to obtain Sprint but lost that fight; T-Mobile might be the next best thing. 

"After buying up billions of dollars worth of spectrum over the past several years, Dish has been scouting for a partner to enter the wireless business as its core video business has matured" according to the WSJ.   At the same time, Dish has been securing more streaming programming partnerships.  On Tuesday they announced a new deal with A&E Networks that includes streaming rights.  It follows a deal in March with Disney Networks.  An acquisition of T-Mobile gets Dish closer to delivering a nationwide streaming service model. 

With AT&T planning to acquire DirecTv, a Dish T-Mobile merger would help to keep them competitive, albeit still smaller in scope and size.  It does help improve the competitive landscape in what is more than just a cellular business model these days.  Broadband access is everything and choice is already limited.  It seems to me that Dish and T-Mobile would be a strong synergistic match. It also brings another legitimate entity into the streaming space. 

Content And Distribution Mergers Kaput

Its summertime and perhaps all the flurry of activity to merge media companies was more hope than reality.  On both the content and distribution side of the business, two attempt to merge operations has failed to materialize, for now.  Last night, Fox has decided to not go after the Time Warner business and Sprint has withdrawn its plans to acquire T-Mobile.  The FCC now can concentrate on fewer remaining acquisition efforts, Comcast - Time Warner Cable and AT&T - DirecTv. 

Still the notion of consolidation is a sound one, assuring an immediate pop in market saturation and more leverage against other bigger entities in the competitive landscape.  That these two deals have failed to materialize could open the doors for other mergers to move forward.  Or simply cause the media industry to pause and reconsider the strategy.  It is the dog days of summer and perhaps all will be refreshed to do battle post Labor Day. 

Gannett Follows The Non Synergy Strategy

Just a day after Tribune, a week after Scripps, and a few months since Time Inc spun off from Time Warner, Gannett has announced that it too will spin off its print business.  While announcing the purchase of cars.com, Gannet decided the time was right to put its publishing arm, including USA Today, into a separately run company.  And while timing of the separation hasn't been announced, it simply confirms that broadcast and digital operations see no room in their 21st century companies for old fashioned print content, despite the potential value of its news gathering and future web subscription businesses. 

So what happens post break up to these publishing companies?  Do they themselves seek to merge together into few, bigger organizations, relying on economies of scale and fewer rivals to attain better market penetration?  Or is it simply the first step in the eventual loss of these notable brands?  One thing is for sure, more of these announcements will come. 

Native Advertising By John Oliver

A very insightful piece.  Funny, yet true.

Print No Longer Part Of A Multi Media Strategy

Content synergy, enabling companies to diversify and present its media across multiple platforms, seems to have a black sheep in the family.  While it seems crucial that content be accessible wherever and whenever the consumer chooses, there are limits.  The notion of content everywhere, on TV, on mobile, on computer, but not on print.  And companies are jettisoning their print businesses to focus on content everywhere else. 

This spinning off of print businesses has increased of late.  Earlier this year we watched Time Warner unload its Time magazine business into a separate company.  Last week, E. W. Scripps and Journal Communications announced plans to "spin off the Milwaukee Journal Sentinel and Scripps' newspapers into a new publicly traded company, Journal Media Group" while merging their broadcast business into its own business.  And today, Tribune Company is splitting its broadcast operations from its printing business and brands like The Chicago Tribune and Los Angeles Times.  Synergy with print media can't be done according to Scripps, Time Warner, and Tribune. 

Each of these new independent print publishing businesses, competing in what is assuredly a very mature business, have to work alone to create new multimedia partnerships.  Pushing hard to transition from print to digital, from test and photo only to the incorporation of video and audio content from new sources.  Each of their parent companies couldn't see ways to do it across businesses and sharing content internally.  Its time for these print companies to either sink or swim.

What went wrong?  Why couldn't they find internal economies of scale to support the old business model while new ones are established?  Why couldn't synergy work?  I think that part of the problem lies in the fact that public owned companies are hard pressed to grow quickly and anything that slows them down must be jettisoned off.  Until print finds its footing in a digital space, it is a mature business with high costs and an uncertain future.  Public companies can't always afford to nurture and be patient. 

Another possibility is that new digital content companies are already pursing old print customers; consumers can go online today and find the news they need from websites and social networks.  Of course, they lack the credibility or full resources of an established news gathering organization.  And in a world of immediacy, we seem to prefer now our news quickly at our fingertips and in short, easy to digest bursts.  That puts print at a disadvantage until they can better connect to the consumer with a continuous and noticeable update of their news feed.  And consumers have to see enough differentiation to agree to pay a subscription fee as opposed to trolling the web for free content.  That may be the most difficult model to maintain.

So expect more companies with broadcast and print businesses to follow suit.  Spin off their old newspaper and print distribution businesses and focus on their broadcast and digital content instead.