House Passes Bill Pushing DTV Transition Date To June 12

Forget February 17. It never happened. The Digital Apocalypse was averted, for now; actually, for 4 months. Congress finally agreed to extending the date and now their is time to further educate, send out more DTV coupons, answer the questions, and reduce the confusion.

"Some stations have already indicated they are sticking with the Feb. 17 date. The FCC said it had heard from 276 stations to that effect, in addition to 143 stations that had already pulled the plug, and another 60 that said they planned to do so before Feb. 17. The FCC had pointed out that some of those 276 may change their minds once the date changed."

It's kinda like the band aid analogy - should we pull it off quickly and take the pain at once, or should we pull it off slowly to minimize the hurt and reduce the pain. As the pain may have proved too much for a portion of the country, this extension should help to ease the pain.

Study: Ads make watching TV more pleasurable

It's not that viewers like commercials, we just have a better experience when they are included in our shows. This unbiased study, according to the article, does not jibe with current habits. Was it taken during the Super Bowl? For me, that is the one time a year where the commercials are their most entertaining and buzzworthy. All other times, viewers are avoiding commercials like the plague, using their DVRs more than ever as well as VOD. In fact, I have found that the same shows on VOD have far less commercial intrusions than on live TV. This study needs more analysis to determine its validity.

"So if the findings are accurate, why don't people recognize that ads make TV more fun? The study authors have a few ideas, but no firm answers. One is that people don't study themselves -- you don't watch one show with ads, then the same show without ads, and compare the experience. Another aspect is that the ads act a point of contrast -- compared to the commercials, the programs showed study participants can seem more entertaining. And finally, the effect isn't universal -- sometimes ads do not make TV more enjoyable (for instance, if the tone of the ad completely clashes with the tone of the show), and those instances can skew viewers' impressions of ads in general."

The Super Bowl demonstrates that creativity can make ads enjoyable. Too much repetition can kill them. And too many ads between shows can break down the whole ad model.

Charter Cable Close to Bankruptcy

Cable operator, Charter Communications is inching closer to bankruptcy. The fourth largest cable company missed their debt payment and the buzz is that a bankruptcy filing is imminent. The next question is even more uncertain, is this a reorganization under Chapter 11 or a liquidation under Chapter 7. What would the other cable companies prefer to occur; that is, which is easier for them to pick up their pieces. Clearly Time Warner and Comcast are most likely to go after their systems, with Cablevision possibly looking at their Connecticut property.

The cable industry has grown up very quickly, from many operators covering the US to just a handful managing larger and larger regions. And where cable was once the only real game to many networks and clearer signals, the rise of satellite and telco into the competitive fray, and the push from IP programming through broadband bringing more competition, cable is at a new crossroads. With one less big player in the hunt, the need for more cost efficiencies by cable operators will be even more important. Charter may soon be gone, but what hurt them could be hurting the other cable players, too.

Netflix verse Cable Television

It seems the high cost of cable television, combined with a recessionary economy, is the perfect recipe for innovation. Netflix has seen the future and recognizes that the DVD may support the business model today but must adapt as viewership patterns change. Streaming content provides the immediacy that DVD mail delivery cannot match. That domain has been where cable and satellite and now telcos have found their revenue growth. But the higher costs for HBO and Showtime, as well as for VOD buys may have finally opened up an opportunity for Netflix to expand into cable territory.

The article suggests that "Netflix be prepping a deal with HBO? The $9.99/month price tag sounds about right -- cable companies typically charge around $12-$13 a month for HBO service. Or could this be preparation for a deal between Netflix and the upcoming Viacom-MGM-Lions Gate 'Epix' Network, with Netflix asking its customers about "HBO" because Epix has no brand awareness yet?" I don't believe HBO would make this deal with Netflix and hurt their relationships with cable. HBO is currently owned by Time Warner, a major cable player. It seems much more likely that this partnership best serves Epix. Cable is crowded with HBO, Showtime, Starz, and Encore and all their multiplexed services competing for eyeballs. It may be too crowded for Epix to jump in this pool and make an impact. It makes far more sense for Epix to partner with Netflix to stream over their devices. That would be great news for Roku , Blu-ray, Tivo, X-box, and other devices that receive Netflix streams. And at a lower price point, cable subscribers unhappy with these current relationships may simply downgrade to not only save money but get a potentially larger volume of movies to choose.

Cable must begin to see Netflix as a real competitive threat. One that can be overcome, but requiring cable to rethink its set top box.

I Have President Obama's E-Mail Address

For those lucky few that have his e-mail address and have access to his ear, or better yet, his blackberry, are truly in his inner circle. It is simply excited to know that this President is more connected to the real world and the opportunities of social networking. While i doubt he has time to twitter or Facebook, President Obama clearly has a grasp on communicating. His blackberry obsession proves the need to remain "connected" and the importance of relationships. Do I have his e-mail address, no, but I am thrilled to know that he is part of this generation and embraces technology.

Senate passes another DTV Transition extension bill

It's on, it's off, it's on, it's off...no not the clapper, the digital transition bill that could delay the transition date, now only 17 days away. Once again, the Senate has passed a bill to delay the transition; the House must again vote. President Obama wants a delay. What will the House do THIS time?

Per the article, "It’s Take Two on the bill the DTV Transition bill that would postpone the analog switch-off until June 12. The House of Representatives shot down the first one after a unanimous Senate vote, but this this revised bill might make it to Obama’s desk.

The Senate adjusted some wording within the bill that pertains to the budget and first responders. It still has the provision that allows broadcasters to decide when is the right time for them to switch off their analog signals. Just like the first bill, this one also passed unanimously and is headed down the hallway to the the House where they could vote on it as soon as Wednesday, February 4, 2009 if it passes the House Rules Committee in a timely manner.

It seems that with these changes, the bill might receive the 2/3 vote needed which would effectively extended the switch-off to June 12, 2009 and confusing millions of Americans. What a shame. (and a sham)"

Telcos Fight For Survival

Today's Wall Street Journal poses the question, which strategy will succeed, Verizon or AT&T, as they reshape their future. Both telcos would agree that the landline phone business is declining. Younger consumers especially are choosing their wireless device as their primary phone, and not even bothering to take a hardwire line. But the article sees each pushing a different strategy for success. For Verizon, the buzz is FiOS and competing in the cable space; For AT&T, it's pushing the partnership with Apple and the iPhone, and a less aggressive stake in its cable platform, U-verse. So who is more likely to succeed? "Industry observers say it is too early to tell which strategy will pay more dividends. While AT&T has taken a conservative tack, Verizon's FiOS gambit has always been more of a risk financially because it will take time to generate healthy margins on the video business."

For my 2 cents, I like the direction that Verizon has taken. For one, the iPhone success is short term; the iPhone exclusive deal will one day expire and for now Blackberry devices provides a good experience. For some, an iPod device can provide the bells and whistles without the calls. And for me, Verizon's signal and connectivity makes it the superior cellular service.

I like the Verizon strategy because their connectivity is both wireless and wired. They will have the advantage to build synergies off the two platforms and interconnect them in new ways. Ultimately, the connection to the home will provide multiple opportunities to monetize content. By connecting to the customer wherever they are, by any device, TV, PC, cell phone, Verizon is poised to be the glue that manages our communication, information, and entertainment needs. As FiOS reaches scale, it will be able to aggregate its customers and understand their consumption patterns.

In fact, I believe that the next stage for Verizon is to own content. Today Cablevision and Time Warner use their local news operations, News 12 and NY1, to keep consumers on their platform. As Verizon acquires a network or website, it would be able to build a compelling interactive experience that can be merchandised across its wireless and wired platforms. Cable has yet to add a working wireless platform to its triple play model. With content and cable, data, phone and wireless platforms, Verizon has the opportunity to leap ahead of AT&T and the cable operator.

Digital TV Delay Falls Through, Modestly Good News For Cable, Telcos

The digital transition date is on, it's off, it's on, it's... The House failed to approve the bill that was passed in the Senate that would have delayed the transition date till June. And so, for now, the switch will be turned on February 17. For the poor and elderly who have yet to get a digital converter, let alone the voucher to buy for pennies, may be left without their TV signal. For them, the solution is to either do without, purchase a converter (there is no time to get a voucher), or contact your cable, telco, or satellite provider and hook up.

"This is modestly good news for cable companies like Comcast (CMCSA) and Time Warner Cable (TWC), telcos like Verizon (VZ) and AT&T (T), and satellite TV providers like DirecTV (DTV), which expect to sign up incremental customers because of the digital transition. It's also modestly good news for wireless carriers Verizon, AT&T, and Qualcomm (QCOM), which bought billions of dollars worth of analog TV airwaves in last year's FCC auction to use for wireless services."

Will another bill be legislated in time to postpone the switchover. For now, it seems less likely. 20 days left. The clock is ticking

Sirius to be Available on IPhone

If you can't get Howard Stern on your car, how about on your phone. In a move that just might find a new revenue stream, iPhone users will be able to get Sirius on their device. How much it costs and whether current Sirius subscribers get a discount have still not be revealed. Still, it sounds like a terrific way to expand the Sirius audience reach. "According to these sources, the uSirius StarPlayr app will be submitted to the Apple Store by Saturday, January 31st. After submitting, Apple simply needs to approve the iPhone app, and it will go public."

I am also reading that it will be available over a cellphone or WiFi connection. I look forward to reading more details on this new direction.