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Thursday, January 3, 2008

Multimedia - means multiple media

As we all wonder what new media means, the truth is that old media will not completely pass away. Radio did not die when TV emerged; movie theaters did not stop attracting patrons when HBO and Showtime offered movies on TV. And linear TV will not die because of the internet and streaming media. Movie theaters, Newspapers, magazines, radio, and tv all will survive if the content is compelling. But that also means adapting to change. Movie theaters add 3D, newspapers and magazines add compelling content and look at new distribution opportunities like Kindle, and tv prospers with good content and VOD. The internet allows more choice, and more flexibility, but it doesn't necessarily erase the old media's value. The key is to find the synergies, to allow one piece to support and enhance the other. Each asset can provide its own unique advantage, and technology can make it quicker, faster, sharper, and smarter. Embrace change, be willing to see the opportunity through the challenge and see how the pieces can actually fit well together, and not necessarily as separate and distinct.

Wednesday, January 2, 2008

The Potential of the Cable Box

As I look at the cable tv industry as we enter 2008, I look closely at my and my family's own viewing habits. We have not yet upgraded to the HDTV screen, but I look forward to the day. At the same time, I wonder, how much viewing time to I get and how much do my children. I believe they watch 80% to my meager 20% on the family tv, while the bedroom tv is clearly 50/50 split with my wife, a minute fraction should the kids enter the room.

So how are these screens being used. Our DVR and VOD viewing is up dramatically from a year ago. And while pc viewing is also up, the clear preference is to watch on the larger screens. Also up is gaming, on both the pc and the tv. The Wii and playstation are active components, along with the DVD player, although its use has now declined in favor of the immediacy of on demand.

So as VOD has affected DVD usage, why shouldn't cable look to affect third party boxes with gaming. Why shouldn't the cable box allow more wireless activity to a gaming device with the added advantage of renting or buying an interactive game. The potential of the cable box to do more, even if it simply interconnects to third party devices, means the opportunity to sell gaming through the pipe and create another revenue stream. Gaming is not going away; cable should enable and simplify the retail purchase. We as consumers seek immediacy; that is why we prefer on demand to going to Blockbusters. Downloading Wii games through the cable box into the Wii player...priceless.

Tuesday, January 1, 2008

Web Playgrounds of the Very Young


Club Penguin, Webkinz, et al... social networking is starting young and making them web conscious and comfortable. And while Webkinz at least gives you a tangible return in the form of a stuffed animal, Club Penguin believes in the subscription model. Can we as parents and adults trust that the advertising won't kill the golden goose. How can we as parents control the web while allowing our children to become most comfortable with its potential. As my five year old "surfs", she begins to get more computer literate, learning more about Barbie's world and the Nick universe. At the same time, I worry that the ad message becomes so strong that she gets crazy asking for more Barbie stuff. My biggest concern remains the interactive issue; will she realize that she might be a click away from buying something, and I am not close enough to stop it. Is it truly smart marketing to focus the ad message on the under 9 crowd.

My son is 8 and also a fan of the web although his Nintendo DS takes up enough of his time. We purchased a 3 month membership on Club Penguin and while he occasionally goes to the site, when his membership expires, I am not sure I will be quick to renew. One there are too many other sites that offer content for free, two, he is not that active on the site, and three, if I said he could renew but it would come out of his allowance, I am not sure he would want to continue. Kids attention spans are short and this particular playground, while unique today, may not be at the same interest level in a year. Wii, Nintendo, Playstation, and the future of interactive TV could change the level of interest quickly. As an adult, I like the games that are more cooperative than combative, but more so, the games that are played with someone else, rather than alone. Social interaction over the web is nice for now, but I prefer when the real friends come over to play.

Saturday, December 29, 2007

Where Have all the Newspapers Gone?

Just an amazing article in this weekends WSJ that highlights the rise and fall of newspapers. Success came to those that saw diversification and change and recognized new opportunities. Those that held on to old beliefs couldn't adapt. An interesting perspective on the change in reading habits from the evening paper to the morning news, the Walter Cronkite effect and the new readership in the morning with the addition of more female users. Ultimately, expense accounts get slashed as owners seek to improve the bottom line, no longer is first class travel acceptable, and soon the leak becomes a downpour as revenues drop as well. Reading habits continually change and the successful entrepreneurs look ahead to the new paths. Read Paul Steiger's entire article. Well written and eye opening.

The cable industry should pay heed to this industrial change. It too must adapt to technological change as video streaming changes how users receive their content. The cable line-up may simply fade away as the user ultimately decides how, where and when to receive its content. The cable pipeline may become measured in usage as customers stop buying separate cable packaging to make their pc their TV screen.

Friday, December 28, 2007

Video Aggregators - Does You Tube Survive?


When Google realized it couldn't beat You Tube, it felt it had to buy them out. The You Tube phenomenon has become so big, that this year NBC chose to remove its content and bring it in house. NBC and Fox created HULU to showcase their content, while Time Warner and CBS have partnered with VEOH and Viacom with JOOST. Each content provider wants to retain their control and while I see the ad revenue opportunity of long form programming, the short clips seem more valuable as a promotional tool. Wouldn't it be in the content owners best interest to allow You Tube to show clips provided that the clips were from the source and not user generated and were tagged in a way to communicate the linear show and the long form availability on their own platforms. Can't You Tube become more a platform to expand the value of HULU, JOOST, VEOH and others.

It doesn't seem that You Tube will lose its luster. In fact it can become the search engine to support the business. Of final note, these same content owners are not helping these new businesses to grow when the writers strike has stopped more original content from launching on TV and the web. The strike needs to be settled for these sites to grow. For now, no more new Office clips or SNL digital shorts. If the content isn't there, the user will go elsewhere. And while HULU offering Alfred Hitchcock Presents is nice; if viewers weren't watching when it was on TV Land, why should they watch on HULU.

Thursday, December 27, 2007

Report Puts Another Digit On TV Writers Strike, But Main Issue Is Digital

Bear Stearns reports that the writers ask is negligible but that the producers are more concerned by the impact on future negotiations with the other parties - SAG, DGA, etc. "The potentially small financial impact suggests that studios (Alliance of Motion Pictures and Television Producers) are more concerned about setting a precedent in new-media revenue sharing." And while there has been no movement for the two sides to get together again and restart negotiations, the viewer is left to watch leftovers. Obviously this programming has lower costs attached, but it most likely comes with less viewers also. And this programming may be a short term bandaid but will hurt more when the program pipeline is empty in the Fall.

There are two main issues: "Even with residuals from online streaming and paid downloads at the top of the writers' agenda, there's another issue. Bear Stearns notes that the studios (AMPTP) fiercely oppose. The WGA wants to expand its membership to include writers for reality series, hoping to gain bargaining power."

This strike is approaching its 8th week. I am fascinated to see what the late night talk shows will look like without writers. Jon Stewart and Stephen Colbert especially will be most interesting to watch; that they are required to come back but rely on their writers for provocative content - what they do the first night will demonstrate which side of the fence they stand. I'm hoping for a frank expression of the facts followed by boring interviews to fill the time and contractual obligation.

At the end of the day there are no winners, only losers.

Wednesday, December 26, 2007

Facebook is like Hotel California, but you might want to leave

My conversation with a friend over the holiday was whether we were over the hump with Facebook and no longer enjoyed sharing ourselves online to the same extent. I have previously wondered whether Facebook knows what to do with an account when you die and per this writer, you are always listed, long after you decide to check out, figuratively or spiritually.

Have I grown tired of Facebook; not sure yet. It reminds me of friends birthdays so I know to send a note, but so does Plaxo and others. It lets me share meaningless tidbits of my activities or thoughts, like twitter,and it lets me be a voyeur to what others are doing, especially when they don't recall who has access to their info and who doesn't. And while it still remains a point for social interaction, it has lost for me a bit of its thunder. Share info with my friends, fine; share with the world, less fine. Use the info against me, absolutely not.

So my activity on Facebook becomes more a time waster than purposeful. The sharing of my info can be done just as easily with my email address; writing on my wall, simply graffiti with no legitimate point.

Is Facebook losing its luster, will it be surplanted by something more interesting. Or am I simply the wrong demographic, less naive to the openness of all the interconnections. And when I decide to leave for good, can I really check out.

Tuesday, December 25, 2007

StumbleUpon + Wii = Killer App for New TV?

Wait...interactivity, TV, gaming, Wii. Having just bought a Wii for the kids, but not yet at the point of letting it do more than it was initially created to do, I have to say the Wii is great. Exercise for the whole body, not just the thumb or forefinger. My daughter is copying dance moves from Hannah Montana, my son, olympic sports with Mario. And while it is too cold to go outside and run around, the Wii lets couch potatoes become more fit.

Combine the game playing on a big screen TV with interactivity and social networking. Sprinkle in silly extra from You tube, an app I don' care as much about, and the Wii has the potential of being the giant killer. I'm wondering if Steve Jobs sees this opportunity and works his Apple magic into the plan. Macworld is less than a month away.

Monday, December 24, 2007

NBC 'Wrestling' to Fill Strike Schedule

Has the changing entertainment landscape sunk this low...wresting. Are we back to the 1960s and Gorgeous George wrestling? I hope not! The new digital landscape is meant to enhance more creativity, not less. And the old adage of what is old is new again simply means that if you don't learn from history you are bound to repeat it. Hence the writers strike in the late 80's and the lessons that were supposed to be learned, weren't. And here we go again. Are viewers flocking to the web, of course. Cause nothing good is on TV anymore and the old classics can be found on hulu and funny clips on you tube. Get us more creativity on TV again and the viewer will return! I for one am not watching wrestling.