NBC/Fox company NewCo is now Hula

NBC and Fox online company has a new name - Hulu

Web Niche programming Revenue - Part 2

Dell computers replacing the Mac for Lindsey on Wallstrip!

Web's Niche TV Programs Win Sponsors

Terrific article in today's WSJ targeting the long tail of programming that is popping up on the web and the small, but engaged audiences they are reaching. Two of my favorites are mentioned in this article, Wallstrip and NextNewNetworks, and how they are extremely flexible to support their partners so as to find a revenue model. Most notable, the use of in program product placement and editorial content extolling the value of the advertised brand.

Is this a good thing? Obviously, the need to find a revenue model that supports the costs of these "niche" channels is essential. But is editorial and/or entertainment standards being lowered to advance the cause of the ad model. And the fact that these channels are not yet reaching a scalable size to make a big dent, will this collaborative approach lead to more awareness and eyeballs to the channel. That is to say, perhaps the advertising drives brand recognition. As articles such as these appear, more people are learning that these channels exist. Channels like Wallstrip, with the powerful CBS brand behind it, has more potential through synergy with its parent and deep pockets to bankroll its growth.

I will say this, these niche channels are very entertaining and their key to survival is a growing audience and a sustainable revenue model. The long tail of programming can incubate many terrific ideas, but as history proves, reach and ratings do matter. Programming costs money and someone has to pay; and advertisers seek identifiable returns to keep investing their marketing budgets in this long tail of entertainment opportunities. I wish them well and I personally will keep watching!

Sony to Debut CableCARD-Ready PC

Between now and the Consumer Electronics Show next year, it will be fascinating to hear how many more announcements are made regarding CableCARD enabled products for the consumer. On my IMac, I can currently watch unscrambled TV through a ConvertX PVR while surfing on the web. The access to more channels, like HBO or Disney, currently scrambled, would be enabled with an updated box allowing for a CableCARD. And how soon will we have to wait till TIVO announces a new box with a CableCARD reader.

Are these 2 PCs the ultimate devices; I doubt it. But it is good to read that manufacturers are starting to embrace the CableCARD concept.

Taking a well earned week off for vacation!

High School Musical 2 Premieres Tonight

I grew up on Grease. The movie soared at the box office, and the record sales were through the roof. So Disney has hit the motherload, first with High School Musical, and now with its sequel, HSM2. My 5 year old daughter has become a tween because of HSM. It's runaway success, and how quickly Disney refocused its energy to maximize the synergy of this content is something the Harvard Business School should write a case study on. Its energy, story, and music appeals across generations.

No matter how many times the content plays on Disney, it gets ratings. It still sells DVDs, cds, clothing, merchandise, etc. And my family has a lot of it. HSM 2 will only keep this juggernaut going further. And Disney has capitalized with interactive content on the web and pushing across its other content. They have made the Disney Channel a must have across every home with kids.

My only surprise is with all the runs of the original HSM, it has yet to run outside Disney on ABC or even ABC Family Channel. While Disney doesn't air commercials, these other two networks would allow Disney to gain additional advertising revenue off the content airing.

Still Disney reacted very quickly when HSM's success exceeded all expectations, and that refocusing of their energy to realize additional business opportunities should be noted and applauded. No one expected this little movie to be the massive hit it became. Like other movies, it could have simply aired and been done. But Disney was willing to change its plans and move dollars to react successfully to the show's popularity. Not many major companies can adapt that fast. So, until HSM2 songs begin to be played ad nauseum, I'll stick with the first songs, after all, "We're all in this together..."

At Netflix, Victory for Voices Over Keystrokes

Service continues to be a popular subject for me. I was once told, people barely remember good service, but they never forget bad service. I think of the stories I like to tell, and some of the most interesting revolve around a bad service experience and how I resolved it. In fact, I have far more bad experiences to share, than good ones. The exception, of course is exceptional service. Because it is so rare, I do feel compelled to share those stories and in fact go the extra distance to tell others about it.

So reading that Netflix has gone to people power instead of automation, is good at first blush. But to keep the experience exceptional, Netflix needs to also do these things: remember the customer comes first, empower the service rep to resolve quickly, empathy works and rewards works better. Give the customer back more than they expect and they will share that "rare" experience with others. Over deliver!

DirecTV, WOW! Top J.D. Power Study

This study is based on customer satisfaction of cable and satellite providers. Can't be the service, must be the content. I would love to learn what made the difference. Having the triple play, and enjoying the cost advantages, the only thing that would drive me to satellite is the NFL package. I've personally experienced reception problems during bad weather, so it can't be reliability. perhaps the TIVO DVR is a factor, not sure. This announcement of results only has me asking more questions as to why they are superior. I suspect that cable operators have a built in bias against them and satellite is seen as the alternative "good guy". Timely release of research considering my last post on Direct TV.

Cable vs Satellite vs Phone - the key to victory

Listening to the local DJs rambling on this afternoon, and if you must know it was 98.5 FM and the Rocky Allen program, when the topic turned to cable installation. It seems Rocky was describing how he had been stood up by the Direct TV installer for the second time, and he was begging for Comcast to get the NFL package so he wouldn't have to put up with this nonsense anymore.

It got me to thinking, service vs content, which is more important. Like in a restaurant, are customers willing to put up with bad service for a good meal, or do they get fed up and move on. Is one particular package so important, that the customer will put up with bad service. Is Rocky's choice the minority or majority vote, to stay regardless of how bad the service might be. As a football fan, I understand the appeal. But would other customers make the same choice if their particular network was only available on one outlet, and you had to put up with bad service just to get it.

And then the light bulb went on! yes service is important, BUT content ultimately wins out. Take for example the recent launch of the Apple iPhone. Despite bad reception on the AT&T service, the value of the product won out and people switched. Content beat service.

The conclusion - in this age of competition between cable, phone, and satellite - build or acquire unique content that only you control. Customize hardware or create better software, like Time Warner's "Look Back" and "Start Over" programs, build strong brand awareness and brand preference, and grow your customer base.