Dish owes money to Tivo for using its technology on Dish DVR devices, Court appeals have delayed that payment and allowed Dish to continue to use this technology, and Tivo continues to not get paid. And so Dish is back in court to find another way around this patent infringement in order to continue to allow its DVRs to continue to be used by their customers. Otherwise, Dish has one of two options: 1. Turn off their DVRs and upset their customers until new technology can be deployed, or 2) Pay Tivo for its technology, embrace its patent, and let your customers continue to derive pleasure from their DVRs.
It seems the old adage, "I'd rather fight, than switch" is in play here. For some reason, Dish has a basic issue with Tivo preventing it from coming together to reach a common ground. Some times children simply can't learn to play in the same sandbox and despite how much money it will cost Dish, they would rather fight. For me, I'm holding on to my Tivo stock, cause I expect another windfall.
Thursday, June 18, 2009
Wednesday, June 17, 2009
My Space Lays Off 30% of Staff
The future of media is the internet and the future of communication is social networking. My Space, once the darling of this world, is facing hard economic times and laying off 420 people, "as part of an aggressive restructuring that seeks to make the company smaller and more agile. " What has happened in the three years that Fox and Murdoch picked up this business? How is My Space faltering while Facebook seems to be picking up speed? Perhaps part of the problem might rest with ownership. Facebook remains young, aggressive, standalone while My Space was purchased by an old media company trying to augment its media distribution strategy. Change has been occurring quickly in social networking and Facebook has more successfully adapted while My Space lost its stride.
I have both a My Space and Facebook account but have found myself ignoring My Space and concentrating on Facebook. I liked Facebook's uniformity and structure; I found it easier to navigate. My Space, with all its "skins" and busy graphics became more disjointed and less interesting to use. Mostly, I liked how Facebook aggregated the content of my Friends onto one page as I was more interested in reading what they were doing then what I was posting. What does My Space look like today; I haven't been on in a long time so I can't tell you. They lost me and obviously others, too.
"The perceived missteps are numerous. Some observers say it clung too long to a 'portal strategy,' in which it sought to amass an audience around entertainment content. By contrast, Facebook maintained its focus on features that enhance the social-networking experience, such as the "News Feed" that matches the immediacy of Twitter's staccato updates." How will My Space win back its users; that is what their smaller group will be hard pressed to do. Perhaps Murdoch needs to buy Twitter and incorporate those users back into My Space. And obviously come up with something more innovative and unique that will be exclusive to the My Space experience. Otherwise, this might be the beginning of the end for My Space.
I have both a My Space and Facebook account but have found myself ignoring My Space and concentrating on Facebook. I liked Facebook's uniformity and structure; I found it easier to navigate. My Space, with all its "skins" and busy graphics became more disjointed and less interesting to use. Mostly, I liked how Facebook aggregated the content of my Friends onto one page as I was more interested in reading what they were doing then what I was posting. What does My Space look like today; I haven't been on in a long time so I can't tell you. They lost me and obviously others, too.
"The perceived missteps are numerous. Some observers say it clung too long to a 'portal strategy,' in which it sought to amass an audience around entertainment content. By contrast, Facebook maintained its focus on features that enhance the social-networking experience, such as the "News Feed" that matches the immediacy of Twitter's staccato updates." How will My Space win back its users; that is what their smaller group will be hard pressed to do. Perhaps Murdoch needs to buy Twitter and incorporate those users back into My Space. And obviously come up with something more innovative and unique that will be exclusive to the My Space experience. Otherwise, this might be the beginning of the end for My Space.
Tuesday, June 16, 2009
The Death of the TV Business
Great article in Advertising Age called: Sorry, There's No Way to Save the TV Business by Henry Blodget that really reminds us that history tends to repeat itself. Technological change affects businesses and one needs to look no further than the businesses before it to see what will eventually happen to them. Need examples...what the web did to the music industry it is doing to the DVD and video business. The same holds true for distribution.
The article looks at the changing business of newspaper subscription and correctly argues that broadband will do the same to upend the apple cart for cable TV subscription. "After saying all this same stuff for years, the newspaper industry figured out the hard way that, eventually, reality intrudes. You can't stuff the genie back in the bottle. And in the next five to 10 years, the TV industry will figure this out, too." What essentially have been barriers to entry that prevent consumers from seeking content elsewhere, have been lowered such that consumers don't necessarily need to pay as much for their entertainment dollar. "With an internet connection anywhere in the world, you will soon be able to get to almost anything. And not just to your computer -- to your TV."
The death of the TV business is not as the author points out, a question of if; but rather, a question of when. A must read article.
The article looks at the changing business of newspaper subscription and correctly argues that broadband will do the same to upend the apple cart for cable TV subscription. "After saying all this same stuff for years, the newspaper industry figured out the hard way that, eventually, reality intrudes. You can't stuff the genie back in the bottle. And in the next five to 10 years, the TV industry will figure this out, too." What essentially have been barriers to entry that prevent consumers from seeking content elsewhere, have been lowered such that consumers don't necessarily need to pay as much for their entertainment dollar. "With an internet connection anywhere in the world, you will soon be able to get to almost anything. And not just to your computer -- to your TV."
The death of the TV business is not as the author points out, a question of if; but rather, a question of when. A must read article.
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!
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!
Monday, June 15, 2009
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!
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.
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.
Friday, June 12, 2009
Daily Show Meets The New York Times
Too funny!
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!
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| End Times | ||||
| ||||
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.
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.
Thursday, June 11, 2009
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.
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.
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