What You Want, When You Want It

Viewers like their On-Demand and the growth rate for usage is staggering. According to Rentrak, "Video-on-demand orders increased 21% last year, with operators processing 3.8 billion VOD orders in 2008 excluding adult programming." And I wouldn't be surprised to hear that DVR growth is also rising at a very health rate. Consumers care about how they use their time and prefer the immediacy of VOD. In less than a decade, VOD has become well accepted and liked.

There was a time though where consumers were hesitant about using VOD on their remote. There seemed to be a concern that any button pressed would result in a purchase. It took a little time to train the consumer that Free On Demand programming was actually free. That is not the case today. According to last year's findings, "91% were free VOD, while 6% were subscription and 3% were transactional." Over time, that fear has dissipated.

And there is still room for more usage and higher growth rates. The VOD features through the set top box are still clunky and laborious to work through. It still takes too many clicks to find what you are looking for and the search feature is prehistoric compared to the web. We like to describe that process of going in and out of categories as "tree and branches." You meander up and back from click to click to go deeper and deeper into categories and occasionally jump out and start from the beginning in order to find your preferred video. Once a new search function is developed, this current process will be quickly forgotten. To me, it is what continues to hold back the further growth and appeal for VOD. But I am assured, a change is a comin!

Hard Liquor On Broadcast

The car and financial services industries are hurting and the broadcast ad dollar is declining so where to go to find new sources of revenue. Where hard liquor was once a no no on broadcast, now its ad budget is as green as anyone elses. "This year, with network advertising revenue off about $250 million, or 4.2 percent, in the first quarter compared to last year, local affiliates are not only accepting hard liquor ads -- they are actively courting the $451 million distilled-spirits advertising business." Watch Simpsons and drink Chivas!

So what's next. Will we once again allow cigarette ads to appear on TV. Perhaps its time for a Lucky Strike! Cause when it comes to greed, anything goes. What happened to the ethical issues that banned hard spirits the first time. Some might argue that the ban was a voluntary one and that cable nets have been advertising hard liquor for a while. Still allowing spirits to advertise on TV simply brings us further down that slippery slope. Perhaps the ad guidelines for TV networks should be ... ANYTHING GOES!

My Cable Networks Are Losing Their Niches

I can appreciate change and I certainly understand that cable networks must continue to evolve in order to grow ratings, viewership, ad dollars, and of course total revenue. At the same time, each should stay true to their core mission or else they all simply start looking like each other. I make this statement because I recently saw an ad announcing that Cartoon Network will have non-animation, reality programming. Yikes! Does that mean that they will change their name to Cartoon and Live Action Network? Certainly it is not a first as they have shown non-animation films on their channel. It may be by, about, and for kids, bit it is not their core mission - cartoons. And why is it being done, broader demographic reach, bigger ratings, more advertising.

But I don't want to put the blame down on Cartoon; truth is, other cable networks have done the same thing, gone outside their core programming genre:

TV Land - theatrical movies
AMC - Modern movies and original TV series
A&E - syndicated TV series
CNBC - repeats of Deal or No Deal and other shows
TLC - reality (non learning) TV shows

The list goes on and on. Each cable network has broadened its niche so that the network today looks nothing like the network of 5 -10 years ago. For example, Bravo went from classical arts to pop art.

Is this a good or bad thing. That is not for me to decide. Clearly, ratings of each of these networks have improved as well over this same period. Broad programming will have more appeal over niche. It is just that cable programmings appeal was that it could provide the niche programming that broadcast lacked. Now, cable has become the new broadcast network source. And where do the niches go now for content; for the moment, that would be the web.

Daily Show Meets The New York Times

Too funny!

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
End Times
thedailyshow.com
Daily Show Full Episodes Political Humor Newt Gingrich Unedited Interview

Why the NYT would let The Daily Show in their doors is beyond me. Some great lines. "Why is aged news better than real news" Nothing in the paper is about what happened today. And you gotta love the end joke, "What's black and white and red all over?" Not the newspaper, their balance sheet. That is the nail in their coffin!

Digital Transition Equals Digital Divide

"It's the end of the world as we know it..." So go the lyrics and so begins a new chapter in America. The end of analog, over the air, TV and the start of all digital, all the time. For most of us, with cable or satellite, today will come and go without any impact whatsoever. But for those with limited resources, the poor, the elderly, it will mean the end of free TV. Despite the warnings, despite the chance to get a coupon for a converter box, millions may see their TVs become huge paperweights.

And this transition, this digital divide has the potential to lead to a huge gap between the haves and the have-nots. Cable hopes to use this transition as an opportunity to convert non-subscribers into paying ones. Some will finally succumb to the pressure and the lesser of two evils. You see, a converter box alone for over the air signals is not really enough. Your antennae will need to also be recalibrated and turned to be able to catch the digital signal. It might not be that easy. And so, they will learn to live without TV and lose their access to TV's content.

Is enough being done to soften this digital divide and assure that more homes are in the have category? The four month delay certainly helped. But it seems enough stragglers remain. And any divide can hurt this country. Those without tend not to appreciate those that have and some take to criminal activities to prove their point. Cable has a rare opportunity to do more at this time besides just making a buck. Offering free service to homes without cable seeking help getting their antennas and converter boxes to work is one way. Selling an extremely low price connection to broadcast stations only is another. Goodwill by these companies can go a long way.

And for those homes off the beaten path, too far to get a cable line installed; what will they do? In parts of this country, that is a real problem too. It may prove equally opportunistic for satellite companies to offer a similar option. Ultimately, it is about eliminating this digital divide so that every household, once again, has easy access to TV signals. Otherwise, this digital transition will cause an impactful digital divide in this country.

Is Twitter Just A Fad?

If the research is true and not an anomaly, Twitter's growth is over. Usage remains strong, but previous research has shown that 90% or so of these messages come from only 10% of users. In fact Twitter's uasage rate is half of what Facebook is and Facebook has been around longer. This "May definitely brought some surprising results. While YouTube (YouTube reviews) is attracting an ever increasing audience, and Facebook (Facebook reviews) is still growing fast, Twitter’s growth has suddenly stopped, at least according to the numbers from Compete." And while most people don't actually unsubscribe, I wouldn't be surprised to hear that most users have been inactive for more than a month.

I feel so much overlap from what Twitter does and what I get from my other social networking sites. In fact, some people have utilized programs to update all there social networks simultaneously. Thus I get to read the same drivel too many times. Is May's numbers an exception or will the trend show that growth is over? For me, I think I can do without Twitter.

TV Execs Say 'Family Hour' Is a Relic -- I DISAGREE

The ad community calls it a missed opportunity and the TV execs blame the DVR, VOD, and new media. They claim the family doesn't watch together anymore and it is not possible to reach them like the past. I disagree. And so does the Association of National Advertisers. "For their part, ANA-affiliated advertisers don't seem to be buying into the notion that the networks are simply reflecting a new vision of the American family that's moved past 'The Cosbys.'"

As evidence, I point to family friendly programming like American Idol, watchable by any and every age group and a ratings juggernaut. In addition, the networks let cable take over this type of programming mix and Disney Channel, Nickelodeon, and ABC Family have brought family friendly shows to the TV screen. And there are a number of shows doing quite well, including Spongebob, Wizards of Waverly Place, Phineas & Ferb, Hannah Montana, Drake and Josh, and others. These and others are proven easy to watch as a family and so likable that kids are willing to watch the same episode multiple times. And while my family DVRs a number of these programs, my kids prefer watching the commercials and not skipping.

And so audiences have left broadcast for cable and continue to disperse as networks lose their sight of how to reach their audience. Fox did it with American Idol. CBS has Amazing Race. What the networks need to do is bring back family friendly scripted shows. The Family Hour is NOT a relic, but some TV EXECS are!

As The Digital Transition Nears, Broadcasters Compete To Put TV on Mobile Devices

With the digital transition in 3 more days, what is to become with all those analog signals. Well the next avenue for full video remains mobile, both on the handset and in the auto. I spoke of Sirius' need to adapt its technology to provide video as well as audio content. Portability remains a big open business opportunity as is the ability to move video across different screens.

Cellular companies and mobile handsets have a chance to gain this business if the timing and consumer need is rights. "The digital switch will let live video be sent to mobile devices -- phones, computers, car systems -- on the newly available analog spectrum. Contenders include MobiTV, Qualcomm's Flo TV and Transpera." Is this what the consumer wants? Is the timing now? "The young consumers who are more likely to watch television on their mobile phones tend to watch on-demand programs -- videos that can be played whenever the viewer chooses -- rather than live TV, " according to Lewis Ward, Research Manager at IDC. My personal opinion is that live sports is the only reason to buy a mobile video package. Movies on demand for the kids on a long road trip might be an option, but DVDs would seem to be so much cheaper for the amount of use in the car.

I still recall so many years ago when the next big thing was video phones; seeing who you are talking to. Twenty years later, it is still not widely embraced. Skype offers that connection but in my household, 99.9% of our phone use is still over landlines and cellular. Will mobile video take off like cable, barely materialize like video phones, or takeoff and then drop like satellite radio. Digital transition is finally here and the entertainment landscape continues to change.

Is Sirius Done?

Did Sirius make wrong strategic decisions. Was too much time and money wasted buying XM Satellite instead of concentrating on its real competition, free radio and the web? And while content is king, did Sirius spend too much for it without determining whether it could afford it? And could anyone have predicted that the economy would turn south and that the auto industry decline would have hit so hard.

Sirius is in the proverbial "between a rock and a hard place." "Sirius XM, which broadcasts football and baseball games, has lost more than $300 million in the past two quarters and has lost a net of 404,422 subscribers in the first three months of this year. Mel Karmazin, CEO at the New York-based company, said in its earnings press release on May 7 that 'satellite radio is now a cash flow growth story.' That story has yet to help Sirius XM equity shares, down 86 percent in the past 12 months."

And, unfortunately, I am one of their shareholders, not smart enough to sell at the top or willing to take a loss yet while it is at the bottom. I put a lot of faith in John Malone and his financial involvement to stay in for the long haul.

Perhaps there is growth opportunity for Sirius outside the car, through the mobile device and as an Apple iPhone app to extend the subscriber base. Perhaps there is synergy with a TV satellite company like Direct TV to add more subscriber value, and getting TV signals into the car. It is those untapped opportunities that might give Sirius the chance to recover.