Why Do Consumers Dislike Their Cable Box

For the most part, consumers seem to like new electronics. If we deem it cool and desirable we are quick to purchase. So homes add devices to their TVs like Wii, Playstation, Xbox, Tivo, Slingbox, DVD players, VCRs, etc. But when it comes to the cable box, it is not put into that former category. In my own home, I own a number of TVs, but only one cable box, despite owning multiple TVs. And I prefer my Tivo to my cable DVR. The cable box has never been viewed as consumer friendly or desirable.

The problem seems to be that the cable box simply overlaps the functionality of the TV set, while those other devices prefer incremental benefit and value. And so, the announcement that Sony, along with other consumer electronic companies, are embracing tru2way, means that those cable functions can now exist inside the TV set, enabling the TV remote to be the singular means to access TV programming.

“The agreement will encourage the development and distribution of interactive and high-value digital content” that can plug into cable without set-top boxes, Sony said. “Key elements of the agreement relate to the deployment of a platform for ‘write once, run anywhere’ applications and to the incorporation of secure digital interfaces that protect consumers' home recording rights, along with copyright owners' rights to secure their digital content.”

Of course that gain means that the cable box will go away. So what will Motorola and Scientific Atlanta do about this loss of business. Eliminating their device, while helpful to consumer adaption of interactive television, means a significant change to their business model. In the short run, most consumers will not go out to replace all their sets, so cable boxes will still be required for some time to come. But change is in the air and bringing plug and play to the TV set will make all these devices far easier to manage from a single remote. And maybe the single remote is really what is most appealing to the consumer.

Content vs Distribution

Great article in Fortune about "The Jeff's" - Bewkes, Immelt, and Zucker - and the planned spinoff of Time Warner Cable from Time Warner Entertainment.

Where verticle integration was once key to control, Time Warners separation of content from distribution seems to indicate otherwise. Each entity would be free to go after more of its own to get larger and stronger. For Time Warner Entertainment, the chance to increase its content holdings with the acquisition of NBCU from GE. And for Time Warner Cable, the chance to work toward the acquisition of the Cablevision Systems, 3.0 million strong, in the NYC metro. Viacom made the decision to sell its cable systems a decade or so ago to concentrate on content ownership.

So, which would you rather be, content king or distribution king?

A look at other industries affected by technological change may provide a clue. For the railroad owner, changes in transportation made the airline owner more convenient and faster. The horse and carriage trade lost out to the automobile. Speed and convenience was again a factor in consumers switching providers. And with the internet, broadband beat dsl and dial-up; speed and convenience.

So now comes the entertainment industry. Cable pricing is going up faster than inflation. Consumers are tired of all the choice and would prefer a la carte, provided that the total cost remained cheaper. Content owners have found a way to directly reach viewers through an internet connection. Just watch the usage rates at Hulu continue to soar. While those that rely on a license fee are reluctant to change the model; aggressive upstarts with nothing to lose are reaching viewers directly through IPTV. As content owners separate from content distributors, watch as a new battle begins to emerge.

Ad-Hungry Nets Develop On-Demand Rivals To Tivo

No matter how easy the DVR and Tivo is to set, viewers would prefer to not have to do anything. And when shows go over their allotted time, these recording devices are not yet smart enough to automatically adapt. Just consider what happened this past week with the American Ido finale. Viewers that didn't add time to the back end heard Ryan Seacrest get cutoff as he announced that the winner was David ... How frustrating!

The downside to not pre-recording shows and relying on the cable VOD version of broadcast is that they can disable the trick features, including fast-forward. So you never miss a show, but you never miss the commercial either.

I still believe that most viewers would prefer to let their VOD manage all recording for them. Especially if it also enables the show to follow the viewer from TV set to TV set. The mobility of the recording is not yet offered with the DVR and this added flexibility could also be marketed as a benefit to the viewer. Start the show in your living room, finish it in the bedroom.

While I don't believe this broadcast VOD service would completely replace the DVR, it would enable viewers to watch shows that they forgot to record only to later here the water coller chatter the next day how funny or engaging the previous night's show has been. Or when the last 10 minutes were not recorded. Now the viewer can tune in and catch up with the shpw.

Cable's Next Revenue Stream

Apple and Steve Jobs are known as the innovators of next generation products, built to be ergonomically designed and easy to use. And so it is easy for folks to speculate where Apple will go next; and inside the home is the next frontier. But as it involves wire and wirless communication, it is also an opportunity for the cable industry. Cable has built the pipe to the home and it is time for them to design the communication inside the home as well. Devices need to speak to all the cable devices: cable box, modem, etc. Apple may try to build the product, but cable should manage the flow.

Today in the home, cable is barely scratching the surface when it offers to show the phone number of the telephone call on the TV set. How about easily pushing content from TV to TV; or letting me see who is at the front door while I'm watching TV in the kitchen.

Apple can build the product; cable can interconnect them in a meaningful way. The business must become more interactive and service oriented. Cable companies have the staff to deliver that exceptional service to make all the devices in the home, whether its the cable box or the pc, the picture frame or the refrigerator, the security system or the wireless phone or the clock radio, talk to each other.

Comcast Interactive Capital Invests in CDN GridNetworks

In a world of what you want when you want it, content remains king. And as consumers demand that this content follow them wherever they go, it offers new business opportunities. For content creators, the question is whether the current content accessible on one device is valuable on another or whether it needs to be massaged to be more valuable in a new format. Screen size, multimedia interactivity, all impact how the content is best enjoyed on different screens.

And behind this accessibility to content is the backbone. Cable provided a wired world to this enjoyment and consumption. And their large pipe quickly forced telcos to become competitive again or risk losing all their customers. And telco has the added advantage of wireless to add another delivery opportunity to support the consumer's desire for mobility.

This new investment by Comcast in gaining more control of the pipe along with the other announcments of partnerships with Sprint in the wifi world is indicative that this fight is going to the streets. The flow of content is big business as these assets are becoming larger and larger files that need space and speed to reach their ultimate destinations. And these announcements are good next steps to assuring that the river of content continues to grow so more content can flow to the user.

Senate Votes to Reverse FCC Decision Allowing Media Consolidation

Should media companies be allowed to own both a tv/radio station and the newspaper in a market? Does it hurt the consumer's ability to get all angles of a news story or is it essential to enable these institutions to survive?

In NYC, Rupert Murdoch owns TV stations and the NY Post; Cablevision is asking to own the cable plant on Long Island, plus News 12, and soon Newsday. And I say that's a good thing.

I am not in favor of government regulation. Less government is preferred over more. I am much more in favor of fair market conditions; lower the barriers to entry to assure that more players can come into the market. Let the consumer decide with their wallet where they want to get their news/information/entertainment. In addition, let new technologies create new means to communicate and share information. Open platforms that enable many more companies to market their products and services.

And so I see nothing wrong with media companies pursuing multiple platforms. It is their means to continued survival. Without allowing the big fish to swallow the little fish the other alternative is that these little fish simply die. If not a bigger company like Cablevision to buy Newsday, the alternative could be that Newsday simply stops publishing a Long Island paper.

Viewership and readership trends change and new avenues now exist via internet sites to provide multiple points of view. Different points of view can still be heard loud and clear. As long as these roads remain wide open, let free market conditions rule.

Amazon Kindle a $750 Million iPod-Like Business By 2010

I don't yet own a Kindle. I do own an iPod. I don't know anyone yet that owns a Kindle or hear anyone buzzing about it on my daily commute in and out of NYC. I always see someone with an iPod. If timing is everything, Amazon hasn't delivered the goods yet. If I were Barnes and Noble, I would be partnering with a company like Apple to create a more user friendly reader device with the same software friendliness that Apple has created with iTunes.

As newspapers and magazines see their print editions decline, and book retailers see their sales hurt, it is time for them to adapt to the same changes in digital download that is affecting audio and video. In essence, start to change or die. Borders chose the latter. And the trends of consumption are moving away from physical to electronic. While printed reading material will always exist, newer generations will feel more comfort with digital reading. The cost savings in manufacturing will enable higher profit margins in publishing. It may even allow advertising to invade book sales and provide an extra opportunity to target readers.

The Cable Box Has Great Potential

My problem with today's cable box is that it is slow to respond, unfriendly, and hard to navigate. It's primary duty is access to DVR and VOD. It is clunky, inflexible to my needs, and inconsiderate to my viewing habits. Recently, my family was watching a movie on demand that we purchased. In the middle of viewing, it abruptly turned to a show to be recorded. Why? Because both turners were set to record and the box couldn't even ask what we wanted to do with this conflict. So it stopped the movie. Disappointing.

At the same time, I am hopeful that we will someday look back and laugh at this early generation of connection. The converter box offers great potential. Combine the advantages of slingbox with the software of Tivo, add in connectivity to gaming a la Wii and Playstation and create a device that talks to all the devices in the home and puts the controls in the hand of the user. Remotely set your thermostat, get activity on your sump pump, know who is at the front door, watch a pre-recorded tv show or your local baseball game on the road, and then set a recording schedule for your dvr from your same hotel room. Wired, wireless, at home, and remotely, interconnectivity and communication is key. The cable box talking to all these devices and easy to use is essential. The company that can deliver this value will win the user and viewer.

Hollywood on Strike Again?!?!

The old adage goes that those who don't learn from their mistakes are bound to repeat them. The recent writers strike should have taught all the parties in Hollywood that a strike does no one any good. Want proof that Hollywood suffers, just look at the recent announcements of all the new shows premiering this Fall. Do you feel the excitement? Neither do I.

The old standards, American Idol for one, despite being the number watched series, is losing viewers. Different year, same format, same silliness, same inane banter. And its success has spawned so many similar shows, including dancing competitions, that the uniqueness and appeal have worn thin.

Broadcast in general has seen viewership decline as cable provides the comfort food of reruns and original series that reach valuable niches. And now online video adds another resource for entertainment away from the TV. The fragmentation of viewing choices naturally leads to a loss of viewership by the old guard.

And an actors strike will only further drive away viewers from broadcast. Both parties are at a loss and both have a financial stake to come to agreeable terms. Stop trying to come up with different rules for different platforms. At the end of the day video content is a stream to be consumed; where there is revenue, there are costs associated against it. Be creative, otherwise you will only further kill the golden goose and have to watch American Gladiator 24/7.