Comcast will close its CN8 network

"CN8, the East Coast regional television network run by Comcast Cable, will shut down by year's end, resulting in the loss of local news programs and sports coverage for millions in New Jersey. The network -- launched in 1996 and spanning the East Coast from Virginia to Maine -- will convert to two smaller operations, said company spokesman Tim Fitzpatrick."

Now I always thought that it would be the local networks that would help differentiate the cable operator from its competition. That is why Verizon will never get access to the Comcast Networks, Time Warner's NY1, and Cablevision's News 12. Interesting to learn that Comcast no longer thinks that unique content is an important differentiator. Or perhaps they felt it was simply not strong enough to matter. Whichever the case, it is a moot point. Perhaps for us New Jersey residents who will lose CN8, Comcast will be kind enough to replace it with NY1. For me, content is still king.

Senate Passes Analog Extension Bill

Last month I said that the transition date would be a mess and as most people wait till the last minute to act, an added month would be needed. Well the Senate has heard the chatter. "The Senate on Thursday passed a bill that would keep some analog TV stations on the air for 30 days beyond Feb. 17, 2009 in order to provide public safety announcements and information about the digital TV transition." I believe that they will actually need more than a month. Consumers do not understand what is going on with TV signals. When they finally turn on their TV and see static is when they will finally have to act. "'While there are claims that hundreds of millions of private sector dollars have been spent making Americans aware of the DTV transition, it seems that most Americans have no idea what it really is even if they have heard of it,' the lawmaker said." And while some have heard the message, fewer have comprehended how it will affect them. Extending the deadline is a necessary first step.

Will Web Video Kill Cable TV?

If your under 30, you probably don't own a wired phone; all your calls come to your cellular phone. And today, there are some people who don't have cable TV; rather, they rely on their broadband connection to watch their shows. "Call it Cable 2.0: You get many of the same TV shows and movies, often with fewer commercials. Better yet, you get to watch what you want on your schedule, not the cable network's, and you don't have to pay for anything more than a simple broadband Internet connection."

But will the web replace cable TV? As a distribution platform, I believe yes. But the company that serves you your connection will still charge you for that subscription, with price points to encourage you to take more of their services. Today it is called the Triple Play, tomorrow it will have a different name but essentially will be marketed to do the same thing, keep you from switching to another provider.

The big content companies don't want to give you access without subscription and advertising. That is their bread and butter. NBC and Fox own Hulu; the last thing they want to do is watch their subscriber revenue decline as a result of people downgrading their cable service to rely on web access. Unfortunately, they are on a slippery slope. "Such services offer few live broadcasts, an obvious drawback to sports fans or news hounds. And while cable and satellite services are rapidly expanding their high-definition offerings to satisfy the demand of the growing number of HDTV owners, you'll find very few high-definition video streams today." For those reasons, the numbers that do drop cable completely may be negligible. As deals start moving to the web, the change may occur more quickly.

Cable has its own toolbox to make the set top box a more valuable asset to the home. How the STB differentiates the TV experience from a web based experience will be key to success. And cable should have the backing of the branded content providers who aren't ready to lose the subscription revenue piece of the pie.

PC Magazine Drops Print, Goes All Digital

For PC Magazine, print is dead. Will it drive other magazines and newspapers to follow, only time will tell. For a magazine devoted to computers, it makes perfect sense to drop its print format in favor of digital. It will be interesting to note how this change will affect the content and subscription. "For readers that prefer the traditional magazine feel, a digital version of PCMag will be made available to them. " Perhaps the time is right to make it especially for the Kindle and Sony Reader. This digital version should be different from its free web content. A digital subscription may be the answer.

I find it fascinating to see that the Wall Street Journal continues to make it work with both a print and digital subscription to its content. For some, the digital access may be the bonus; for others it may be the print edition that is nice, but the digital access that is most valuable. The trend is toward less printing and more online; PC Magazine may simply be leading the curve.

BBC America's Ancier: DVR Threat Must Be Solved

What is the threat - that viewers are skipping ads to watch the content. "The ability for viewers to fast-forward through ads using a DVR is the biggest challenge cable programmers face—and they must work with operators to figure out a solution, Garth Ancier, president of BBC Worldwide America, said in a keynote at the Future of Television conference here."

What is the solution, actually there are a few. First recognize why viewers started to use DVRs, too many ads during breaks. They found a technological cure to beat the system. It is nearly impossible to put the cat back into the bag. Still, networks should consider reducing the ad times on linear content and utilize product placement, interactive technology, and other approaches to reach consumers. Second, consider the Network DVR as an opportunity to segment and target ads more effectively and disable trick features when necessary; or perhaps put a brand ad on screen during trick feature usage. Lastly, enhance and expand VOD offerings to include all programming. If content is already recorded, the viewer won't have to take the proactive step to record their show in advance. VOD allows for pre-roll and other ad tricks. Still, if you overload the content with ads, the viewer will seek another alternative. To illustrate, look at Hulu. They limit their ads and have little or no negative consumer issues toward those ads.

These are just a few ideas to consider to solve the DVR threat. Most important it to view technological change as an opportunity, not a threat. Advertising on content is necessary to pay the bills; how it is done must be innovative, less intrusive, consumer targeted, and creative.

AOL is a Media Company

AOL finally has a strategy, or so they say. Its been a couple of years since AOL stopped being a portal and has had a tough time convincing people that it has what it takes to succeed. Unfortunately the AOL brand name has little cache or brand value. It's web properties, however, just may have a chance. Some of their more popular sites include Moviefone, TMZ, and 75 others. Those that front with the AOL name seem to me to have less appeal - AOL Money, AOL Music. If content continues to be king, then the AOL focus on solid content sites should eventually pay off. Still in a down economy, ads will continue to move from print to the web; building and growing content sites will allow Platfom A, their ad network, the chance to aggregate the value of all their content sites and increase their revenue.

So far, it is paying off. "According to comScore Media Metrics, traffic to the portal, which include 20 new niche such as men’s lifestyle channel Asylum.com, rose 7% to 54.3 million unique visitors in October from the same period a year ago. Page views more than doubled to 4.2 billion. The increases marked the 21st month of consecutive growth for AOL." Good luck with the road show.

Web Video Chips Away at TV

One study says that online usage complements TV viewing, others say it cannibalizes. Can we have it both ways? This study suggests the latter, but it also says "online viewers don't mind the commercials too much." My feeling is that compared to the glut on TV, web video advertising is a pleasure. Sites like Hulu limit commercials to just one spot compared to TV which could have 3 minutes of ads. Comparatively, of course you wouldn't mind online commercials.

Another interesting analysis, "almost 60 percent of the respondents said they were willing to provide to advertisers some personal information about themselves in exchange for something of value, such as access to high-quality music videos, store discounts or airline frequent-flyer points." If TV would cut back on the glut of spots and use its technology to target spots and offer interactivity, it would find a more willing viewer as well. Just imagine clicking on a TV spot that would email you a coupon to download and take in to the store. The web may have the connection, but viewers still prefer long form content on their TV set. It will be the interactive potential that will make TV the better choice for the advertising dollar. And this is what Canoe will be able to offer.

TiVo, Domino's Offer Pizza Delivery Service for DVR Subscribers

Order a pizza from your TV, if this sounds familiar, it's because we've seen this before. Now Tivo has announced that it has partnered with Dominoes to let their subscribers order a pizza delivery through their device. "The TiVo service will help Domino's reach customers who might otherwise skip through its commercials on their DVRs, the companies said." As a marketing partnership,it will put the brand in front of customers, but as a service, it will be a dud. Customers are still much more likely to order by phone; they have yet to use their PC to order from a menu. Cable operators used this same marketing ploy years ago to add features to its set top box; it did not work. Customers will gravitate to the device that is easiest and quickest to use. Until the application proves more useful than the phone, customers will find no reason to switch.


"TiVo Chief Executive Officer Thomas Rogers has added shopping and video-on-demand features to attract users as cable and satellite companies roll out their own DVRs. The Alviso, California-based company lost 178,000 net subscribers in the second quarter, finishing with a total of 3.6 million." Tivo should continue to push its partnerships across cable operators as the better DVR for the set top. In addition, it should partner with game boxes like Playstation, Xbox, and Wii, to be their interface as well. It is partnering with those companies that will bring Tivo more customers.

Cable industry group says the Web won't kill TV

Canoe Ventures has a plan, tie together the big cable operators to gain scale, target meaningful subsets within, advertise on brand name video content, and add a technological, interactive component. "Canoe has a direct pipeline into about 60 million cable-watching households in the U.S. and provides Internet service to a third of the country. It plans to use that reach." And with the cable box and remote, the ability to communicate with the consumer and get them to talk back. "For example, it's going to add voting and polling so consumers can vote for their favorite player during a football game or answer ...... the final question on "Jeopardy." It's also planning a feature that will allow you to click a button on your remote control to get a recipe, a sample or a coupon, and another feature that allows you to click on a movie ad to see the full trailer or on a video game ad to see a demo." Kinda cool.

Advertising on TV can no longer be a one-way experience. It is meant not only to build brand awareness, but advertisers also need to see meaningful results. It may not be to actually purchase a product or service, but to request more information be sent perhaps immediately to the TV, or perhaps the email address, or mobile phone, or even snail mail. It is gaining that interaction which is Canoe's next step.

The set top box provides valuable information to better target the message to the home; the cable box to interact. We rely on that box to allow the advanced features to work; VOD, DVR, and such. The challenge is getting the consumer to accept the set top box on every set. The home needs to be "connected" so that the box rests behind the set, not on top of it.