The Price Of Connectivity - Big Brother Retains Control

Don't be mistake, this move by Amazon is only the tip of the iceberg. And how ironic that it affected a George Orwell novel, 1984, that literally talks about Big Brother. While Amazon may be all apologetic and thinking that they were protecting the rights of the copyright holder, their ability to remotely delete content from their device, without notice, and without customer knowledge, spells bad news. It demonstrates first hand the ability of a big company to take information away from the masses, to control what we can and can't own, and to take a piece of our privacy away, one deletion at a time.

"Amazon appears to have deleted other purchased e-books from Kindles recently. Customers commenting on Web forums reported the disappearance of digital editions of the Harry Potter books and the novels of Ayn Rand over similar issues." Without our knowledge and without our consent, it demonstrate oh too well that Big Brother is not only watching what we do, but controlling what we can or can't have. How will this affect Kindle sales and what will the on-going buzz be in the digital community. I'm eager to know how outraged the public will become. Or apathetic. And that is problematic, too!

Widgets And Web Video Added To Verizon’s FiOS TV

I am not a FIOS customer, but I do get the appeal of connecting the web to the TV. In my search for a big screen HDTV, one option that intrigues me is internet access. Some sets offer similar connectivity, others do not. And as a feature on a TV set, I wonder if I don't, will my HDTV purchase be outdated the moment I bring it home. As a cable customer, I have yet to hear what they are planning to do to improve the set top box and the user experience. Verizon/FIOS may have figured it out quicker. "Verizon’s FiOS TV is about to start overflowing with widgets. According to a recent press release, the company will be launching their Widget Bazaar later this month with a few free applications including Facebook, Twitter, and ESPN’s Fantasy Football widget." While they do not yet talk about downloading and viewing web video on the TV, it seems like a natural next step. Do consumers want to converge the web/TV experience or will it inevitable stay two screen but with interactivity associated with each device to the other. or a combination of both. That is certainly the direction it is taking.

1.5 Million Still Don't Have Digital TV

A month later and there are still over 1 and a half million people without TV, and the question is, do they miss it. Is this number entirely accurate? Do they even care? "According to Nielsen, 1.5 million TV households, or 1.3% of the country, remain unready for DTV as of July 12, a month after the June 12 transition date." It certainly is far less than the 5 million number that some thought would be without TV. Still, I wonder why those people have chosen not to get a DTV converter or access via cable, telco, or satellite. Perhaps they know more than we think.

VOD Growing, But Lags Behind DVR Use

VOD has incredible potential to outshine the DVR because it is a reactive device, not a proactive one. There is no advance decision to record a program so as to not miss it. The show or movie is simply available. The challenge, and the reason that VOD has not grown faster, is that the functionality and user friendly buttons are arcane. The tree and branch approach to access programming, the latency for buttons to activate, the occasional drop off, forcing the viewer to restart the search, all hurt its acceptance and appeal. "There are far too many buttons to push, and if you’re chugging through season 4 of Entourage, you have to navigate back and forth between menus in an irritating fashion." Until controls, speed, and userability improves, VOD will continue to lag behind Tivo and the DVR.

UPDATE - iPhone App Store Downloads Cross 1.5 Billion In First Year

Per Silicon Alley..."More than 1.5 billion applications were downloaded from Apple's (AAPL) iPhone App Store in one year, the company said today.

Calling it "the largest applications store in the world," Apple said its app store currently has more than 65,000 apps and 100,000 developers in its iPhone Developer Program.

Apple also said it has shipped more than 40 million devices -- iPod Touches and iPhones -- that use the app store."

Amazing!

MySpace To Become An Entertainment Portal

As Facebook has been clobbering My Space, the suits have come up with a way to differentiate My Space as an entertainment portal. They have hired the head of Sling Media, Jason Hirschhorn, and hope that he can bring back the magic. "That experience should help him figure out how to shoehorn Fox's entertainment assets, MySpace Music, and Hulu content into an entertainment portal people will actually want to use." But can it be done?

My Space seems to still have a core audience in the music space, including singers and bands promoting their own songs and albums. Does that home grown content fly in the world of more professionally produced material or does it augment the value of the community it serves?

I think the one thing these video portal sites lack is that ability to easily search by any number of key words and to recommend based on personal preferences. Viewers, when faced with too many choices, some times choose none of the above. A site that is perceived as delivering an expertise and simplified approach across an aggregate of content may just win over a number of viewers. Otherwise, these individual sites will simply be bookmarked and viewed without a My Space portal approach.

Apple's iPhone App Store The Hottest Gaming Platform

Apple certainly bested Microsoft and Google when it came to the rise of the iPhone and its App store. Obviously learning from its success with iTunes, Apple recognized that hardware sales is nice, coupling it with easy to download content is gold! And others have quickly tried to duplicate this model. Apple remains number 1.

My son recently upgraded his Nintendo DS to a DSi and while I am not one to use it, it needed setup and authorized access to our wireless home network. And then I saw that there is a Nintendo store capable of downloading games to his device. And yet his preference remains to go to Game Stop or Target to pick up new games. So how does Nintendo downloads compare to the Apple App Store; I am not quite sure. And is the iPhone and iPod really trying to compete with the DS. The former seems much more for casual gamers as time wasters; the latter device for more serious gaming. "Apple's platform has attracted heavyweight gaming shops such as Electronic Arts (ERTS), Gameloft, and Sega. And it has allowed important new studios to blossom from scratch, such as Ngmoco, whose Rolando franchise -- including the new Rolando 2 -- may still be the best example of iPhone-unique gameplay, via the phone's multi-touch display and motion sensor." Is Apple looking to push itself further down this path or will Nintendo see this as an opportunity to add phone capabilities to its hardware?

I have yet upgraded my iPod to the new iTouch nor have I purchased an iPhone. For me, its primary use, as a phone, is less appealing. I was once on the AT&T network and converted to Verizon because of better coverage and less dropped calls. And I have heard from other iPhone users that the phone capability still remains weak. Until Apple allows for iPhone to work in the Verizon network, I cannot yet make the switch. Still I appreciate its success and may just upgrade my iPod soon enough.

The success of the Apple App Store goes directly to understanding the consumer need for ease of use, inexpensive pricing, and ergonomic appeal. Essentially they have made it so easy that anyone can master it. And that is their greatest achievement.

Starz To Join Comcast's On-Demand Online Test

Comcast has come up with its own strategy to keep its customers happy in a multiplatform world. Partnering with cable programmers like Starz to allow viewing of content on different screens. "Starz Entertainment is in the mix for Comcast's On-Demand Online test, set to launch this month, with the premium programmer planning to initially make 300 movies and other original programming available through Comcast.net and Fancast.com to Starz subscribers for no additional charge." Starz joins other programmers like TNT, AMC, and Scripps to bring VOD like content to the PC.

It certainly provides additive value to the cable subscription. My biggest question is how do I watch when I am "on the road". Certainly I would rather watch these shows and movies on my big TV screen so having the choice to watch on a PC inside my house does little to whet my appetite. The ability to take my subscription on the go, whether on vacation or even in the office is much more appealing. How Comcast can authenticate me as a subscriber outside their wired garden will deem whether this strategy succeeds or fails. "Comcast will randomly select the 5,000 customers from across the U.S. in the coming weeks, with a focus on testing the company's authentication technology. The service will use a log-on system for streaming content and, in the future, will allow for download content to go." We will have to wait and see how well this works.

Should it prove successful, it could do what Hulu and TV.com cannot; keep cable subscribers from dropping their service to become a broadband only home.

Will Project Canoe Succeed or Fail

Came across this opinion and thought it was worth sharing. According to Phil Leigh, Senior Analyst at Inside Digital Media, Project Canoe is doomed for failure.



He argues that the web is better suited for interactive video and cable is late to the game. he also suggests that cable programmers are less than thrilled to support the cable operator's attempt at targeted advertising, as it potentially could hurt their own advertising sales activities. It is ultimately up to Project Canoe to disprove their critics.

Cable programmers have enjoyed a healthy license fee from cable operators and would be hard pressed to pursue a web based distribution strategy and risk the loss of "cable dollars for digital pennies." The cable financial model requires a two tier revenue strategy of subscription and advertising. As long as that remains healthy, programming will mainly be served through the cable box.