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Thursday, July 9, 2009

Best Buy And TiVo Partner

Great to read that a consumer electronics chain and a consumer electronics product are partnering. Why not partner with the store consumers use to purchase their big screen TV. "Best Buy will aggressively push TiVo's products in its stores and TiVo will let Best Buy advertise its in-store products and services to Tivo subscribers. Tivo also plans to give its subscribers access to Best Buy's Napster on their TV screens." Except consumers don't tend to buy digital video recorders.

Most consumers expect to get a DVR inside their cable set top box. As more channels become digitized and scrambled, the only way to get these channels is through a box. And how often do you see your local cable operator touting their cable cards so your TV or Tivo could work WITHOUT their box. Probably not. So while these partnerships are nice, the real return will come when Tivo partners with more cable operators. Its current partnership with Comcast has yielded an extremely slow rollout. Cablevision should soon be pushing a network DVR approach. As for the other cable companies; well, it's time for Tivo to close more of these partnerships.

Until then, or until more consumers are aware of the cablecard technology to bypass a cable set top box, I don't expect much to come from this Best Buy Tivo partnership.

Friday, July 3, 2009

Google Shouldn't Become A For Profit Library

Yes the world has gone digital and yes, that means that books and newspapers are also being served in that format. But, Google's plan to digitize every book and serve them to the public for a fee, may not sit well with the owners of that content. And while a settlement was reached four years ago between Google and publishers, the Justice Department believes there is more than meets the eye. "In a letter to the federal judge charged with reviewing the settlement, the Justice Department said it was reviewing concerns that the agreement could violate the Sherman Antitrust Act."

My kids each have a library card, although frankly we spend more time at the local Barnes and Noble than at our public library. Still, I view the library as a public institution that shouldn't be corrupted by big business. It would be one thing if this was a project done by libraries across the nation, another when done by Google with a profit motive in mind. Literature should be preserved and saved in any relevant form, and available for the public at large. Our forefathers created the Library as a means to open this access to all.

"Antitrust experts said the letter was the latest indication that the Justice Department is seriously examining complaints that the agreement would grant Google the exclusive right to profit from millions of so-called 'orphan works,' books that are out of print and whose authors or rights holders are unknown or cannot be found." How will it play out; more to come this Fall.

Thursday, July 2, 2009

TiVo 'Confident' Patent Victory Over Dish Will Be Upheld

When is a victory not a victory; it seems when it involves the Tivo - Dish feud. Each time a court finds in favor of Tivo that Dish illegally used its patented technology, another court overturns on appeal, and forces another round in our judicial system. And who is getting rich in this drama, mainly the lawyers. Until the "final" ruling, Tivo will have to wait for its payout. Yes, I believe that Tivo is on the right side of this argument. And Tivo is confident that it will continue to come out on top.

"'We are confident that the District Court judge's thorough and well-reasoned decision finding EchoStar in contempt of court for violating the injunction and awarding further damages will be upheld once the Federal Circuit has the opportunity to review the merits of the case,' TiVo said in a statement released Thursday. 'The Court of Appeals stayed the District Court's order the previous time this case was heard on appeal and ultimately affirmed the judgment against EchoStar.'" Until then, Dish will still be able to use their DVRs. I say to Dish, pay Tivo and agree to a formal relationship. At the end, your customers will get a better DVR experience!

Wednesday, July 1, 2009

Operators To Miss Tru2way Deadline

Today is July 1 and without much fanfare, cable operators have acknowledged that they are not making today's deadline for tru2way delivery. Consumer electronic manufacturers seem to not be making a big deal although most new TV sets are being made with internet capabilities. Whether they work with the cable operator or not, these sets will be capable of downloading web videos, software, sports scores etc. The added appeal of two way must wait a little longer. "The tru2way specification, based on the Java programming language, lets cable operators deliver interactive TV applications and video programming to any compatible device, such as a set-top box or TV."

As TVs have gone all digital, cable companies have used the opportunity to convert analog signals to digital and require a cable box on TVs to get certain channels. In my home, those channels include TCM, MSNBC, AMC, Cartoon, and others. I expect soon that more will be added to the list. I need to add a box to every set. But I don't need nor do I want a big box in every room. I recently received a DTA device, but learned that while it gave me some channels, it wouldn't give me all my digital channels; Hallmark, yes, Disney or HBO, no. I am now waiting for a slightly bigger box that I am told can still "hide' behind my TV and not take up much space. This new box should have more capabilities.

I look forward to the day that I can work a TV without a box and still "talk" with my computer and other devices and provide complete access to all channels. The key for me is that it can be done without a box tethered to the TV set.

Hopefully, Tru2way technology is the first step to a home solution and interactivity. "The Consumer Electronics Association, which has continuously lobbied the Federal Communications Commission to implement rules requiring cable to open access to retail devices, declined to comment on the tru2way deadline. CEA 'did not sign on to this agreement and therefore we don't want to offer a comment,' said spokeswoman Meghan Henning." If Tru2way doesn't succeed, perhaps the CEA will.

Tuesday, June 30, 2009

Do You Remember the Film Short

I still remember the days when movie houses ran films continuously. You came whenever and watched till you got back to the point you came in. Sometimes there were double features and almost always there were shorts between the feature films. The popularity of these shorts have not gone unnoticed; Pixar likes to put a short in front of each of its animated films. And Turner Classic Movies uses them like those good old days as filler to get the feature to start at the top of the hour.

I bring this up, not just to reminisce, but to recognize that history does in fact repeat itself. These shorts were loaded with B talent; actors not always popular enough to make the big movie. And yet some of these actors become famous because of these shorts. Movie shorts included newsreels, featurettes, documentaries, comedies... Today, these shorts still exist; no longer popular on the big screen, but able to find a home on the small one. Not the TV, but the computer.


I speak of professionally produced scripted shorts found on a number of websites including Crackle, My Damn Channel, and others. Two of my new favorites are Star-ving with David Faustino and Corin Nemec and Wainy Days with David Wain.

While not fronting a big film, they are today's version of what the early short once was, B actors finding a way to showcase their talent. And this short form entertainment remains amusing and fun to watch. The biggest difference between then and now is that today's shorts include advertising while no advertising tended to appear with shorts in the theatre.

Still, the art of the short is not new to the web; it has been around for a long, long time. It is simply appearing on a different screen. I still like the old black and white shorts on TCM and I like discovering new shorts on the PC. They all bring an entertainment value to be enjoyed for quite a while.

Monday, June 29, 2009

Network DVR Closer to Reality

Cablevision's idea to move the DVR to the headend appears to gain some weight as the Supreme Court has rejected arguments by studios and content creators. "The media companies have argued that the use of network DVR, where the programs are stored on the cable company’s servers—in the cloud, as today’s lingo would call it—and “streamed” on demand when users request/record it, violates copyright laws" But is there really a difference between saving shows remotely or saving them on a centralized server. Probably not. My biggest concern is that the current DVRs used by cable companies offer a limited search and playback experience.

Unlike Tivo, their functionality and design are clunky. What's to change even though the programs are saved centrally. Ultimately, it is the software and viewer experience that will determine success. And perhaps it offers Tivo a valuable opportunity to offer its expertise to Cablevision to create a better user experience.

Or will the DVR become an outdated, obsolete product. Once content is available online for distribution across any platform, will the concept simply go away. Why copy for later when it is always available, always on-demand.

US TV prepares for $2bn ad shortfall

How bad will the economy be to TV ad revenue, both broadcast and cable, over the next few years; how about 2 billion dollars in the red. "The Global Media Intelligence report by Screen Digest, the media research firm, says some of the decline will be clawed back by US TV networks by online video advertising, which it expects to triple during the next four years...Screen Digest forecasts US broadcast and cable advertising revenues will fall from $69bn in 2008 to $67bn by 2013." That seems like an awfully big number to absorb. And its affect will certainly continue to hurt the job market and the economy at large over this time period. Online video advertising growth may offset this figure, but it is hard to expect it to have a substantial impact. Some may argue otherwise, but until advertisers feel comfortable with the research and measurable results, that growth may remain stalled.

Friday, June 26, 2009

Hulu, TV.com Getting Higher Ad Rates Than Their Network Counterparts

With less clutter, no fast forwarding, and a closer, more attentive viewing experience on the personal computer, it makes absolute perfect sense that sites like Hulu and TV.com are able to ask for higher CPMs. "Running an ad during The Simpsons on Hulu, for example, costs about $60/CPM, Bloomberg reports; running the same ad during prime-time on TV costs about $20-$40/CPM—or over 60 percent less in some cases." But is it really more profitable?

The challenge facing content creators, broadcast networks and cable especially, is embracing this new distribution path without losing an important revenue stream, cable subscription revenue. Authentication help to maintain a multi-platform customer, but not if it is undermined by free content, outside the security belt. What is in Hulu and TV.com's best interest may not be in the interest of its individual partners. So the question asked, can a higher CPM offset any revenue lost.

As I see it, monthly cable fees charged by cable programmers to distributors tend to grow at an annual inflation rate. It is also a guaranteed revenue stream, changed only by the growth and loss of subscribers in the cable operator footprint. And with the rise of telco distributors, overbuilding cable neighborhoods, the possibility of higher subscriber fees and more cable penetration. The switch to digital also improved subscriber growth. Should enough programming become available on the web, consumers might be encouraged to drop their cable portion of their bill for broadband access only.

It then represents a very slippery slope for sites like Hulu and TV.com and their respective programming partners. I'm sure they would hate to kill off their golden goose. And so the last question to ask is, what should happen to these sites to enable viewers to still watch on their computers, but not give up their cable connection. Perhaps authentication must come to these sites as well.

Thursday, June 25, 2009

For Comcast, FIOS Represents Just Another Market

Even though Comcast and FIOS compete, it shouldn't stop a partnership! In an unusual move, Comcast will sell advertising spots in FIOS markets that overlap its own markets. "Comcast Spotlight, the cable company's ad-sales arm, announced a deal Wednesday with Verizon Communications, under which it will sell local advertising on FiOS TV in at least 10 markets, where both Comcast and Verizon currently provide television service." For advertisers, it certainly assures that their message is seen on cable, regardless of who the service provider may be. Potentially profitable for both companies.

What would really be ironic is if this deal would finally allow FIOS to advertise its services on Comcast and Comcast do the same on FIOS. That would certainly be detente!