All Web Traffic Is Not Equal - No Net Neutrality

I guess I am a bit surprised that there has not been much discussion regarding the court's ruling against the FCC and overturning net neutrality. "Federal regulators lacked authority to censure Comcast Corp. for interfering with subscribers’ Internet traffic, a U.S. court said in a decision that could limit the government’s power to police companies’ Web behavior." That is to say that your broadband company can determine which web sites get priority for speeds to your home. This could be most troubling for bandwidth heavy video content companies like Netflix, Amazon, and yes, even Hulu. Instant streaming could be slowed down for other priorities, for example, Comcast's Fancast.

There is much involved in this decision and revisions in policy may need to be considered in order to create a fair and competitive digital landscape. "The decision 'creates a dangerous situation, one where the health and the openness of the Internet is being held hostage' to the behavior of telephone and cable companies that own the wires used for Internet traffic to homes and businesses, said the Open Internet Coalition in an e-mailed statement." For now it is Comcast over the FCC; but in the battle verse the war, there may be more to consider. Comcast's merger application with NBC is also in front of the FCC. And should hard feelings remain, that approval may be affected.

Should You Buy an iPad Today?

A friend of mine wrote me wondering if she should buy her husband an iPad for his birthday. And my advice to her was to wait. It seems I am not alone. "After all the hype, after all the reviews, tweets and blog posts analyzing every detail of the iPad, from the placement of the headphone jack to the reflective qualities of its glass screen, you may still be wondering: Should I buy one?
In one word: no. Well, let me revise that: not yet." And that was my same advice. Despite its potential, it is still a work in progress, just like the iPod and the iPhone were when they were launched. Apple creates amazing machines but they require a learning curve to get them to their best potential. And so the iPod became the iTouch and the iPhone found religion with 3G. The same will hold true for the iPad.

In fact, I can see its potential as a device in each room of the house, just like each TV in your house has its own remote. The beauty is that they all talk, not only to each other, but to your other mobile devices as well. Will the iPad become a more mobile device as well; perhaps in time. "It weighs too much to hold in the hand comfortably as an e-reader. It’s not so easy to sync documents with another computer. The Apple iPad case, which also serves as a stand, isn’t steady enough. And on and on." For this and other reasons, Apple needs time to get feedback, adapt, and grow. They have the appeal, they have the fans, they have the time. They have built another revolutionary device that over time will only get better. Apple is truly a leader in the industry.

An iPad Newsstand

What Apple's iTunes did to the music store, Apple's iPad will do to the newsstand and perhaps even the bookstore. "Some publishers say they also worry iTunes sales leave them at the mercy of Apple, which publishers believe has ambitions for creating an iPad "newsstand" for newspapers and magazines the way it has an iBooks storefront."

As a virtual provider of written material, consumers will find ease and convenience shopping online and stop driving to purchase. For Tower Records and HMV, the lesson was learned far too late; for Barnes & Noble and others, there is still time to adapt and prosper. Create new reasons to come into the store and to even bring the device with them. Make it a social and economic advantage and these new reading devices will be seen as complementary, not destructive to the industry.

And as the subscription business goes, what was once mailed to the home, will now be wirelessly sent. "Some newspaper and magazine companies have resisted selling through iTunes in part because more than seven of every 10 U.S. periodical copies are sold through subscriptions." But subscription revenue has been suffering and iPad could be the shot in the arm for a rebirth. And it allows publishers to update erroneous copy and remain current and time sensitive.

Apples iPad a Sales Winner

Did you buy your iPad? On ABC's TV show, Modern Family, all one character wanted for his birthday was an iPad. And so did many many others. "The company sold some 700,000 devices, Gene Munster, of Piper Jaffray & Co., said yesterday. The Minneapolis-based analyst had previously predicted sales of 200,000 to 300,000, while Sanford C. Bernstein & Co.'s Toni Sacconaghi projected 300,000 to 400,000." That is more than 2x predictions. If that trend continues, Apple will have once again slayed the market. And as new apps get written to extend the iPad's usefulness, more and more consumers will be standing in line at the Apple store to order one. Did you buy your iPad yet?

The potential is enormous. I see one potentially on every coffee table, talking wirelessly to the set top box sharing data on live games, American Idol type voting and more. I see another in the briefcase, for reading during the daily commute, at the beach or pool. I see another in the kitchen, for lists and calendars, sharing data with folks iPhones. I see a whole new relationship with computers and society. The iPad will be that next quantum leap.

Are Apple and Verizon Finally Working Together

The buzz is that the Apple iPhone may have found a new phone partner this Fall and for Verizon customers it could be good news. "The Wall Street Journal reported late Monday that Apple plans to release an iPhone this year that would work on CDMA networks -- a technology used by Verizon Wireless and Sprint Nextel Inc. in the U.S., as well as some carriers overseas." As a fan of the iPhone, I wanted one the moment it came available, but I struggled with its phone capabilities. I was a former AT&T Wireless customer who switched to Verizon one day after number portability was allowed. And having struggled with dropped calls, poor signals, and the inability to make a phone call while sitting in Penn Station, I vowed never to return. Verizon was a welcome relief.

But the Apple iPhone was only available with AT&T and I could not go back; so I have patiently waited. Just yesterday I asked a friend again about their iPhone and their response is they love everything but the phone call feature. Heck, that is what I need a cell phone to do the most. Without that connection, it is simply a brick in my pocket.

The light at the end of the tunnel may finally be in sight. I look forward to the day an official announcement is made and the day the Apple iPhone is first available for connection with my Verizon wireless phone number. For now, I will continue to wait patiently.

DirecTV Puts On ESPN's 3D Glasses

I just spent too much money for a family of four to see "how To Train Your Dragon" in Real 3D this weekend. My kids were excited; I was not. Early on in the film, the 3D created a nice effect of delineating foreground from background. But as the story took root, I nearly forgot that it was in 3D, except that I hated wearing the glasses.

And so networks are launching 3D channels, TV sets are being made with 3D capability, and even blu-ray players come with the 3D option. And I keep wondering why? What works as an added value for a theatre experience, seems silly for a home experience. At the movies, we focus entirely on the screen; at home we multitask, even as we watch movies at home. We chat on the phone, we email, we go on Facebook. Are we really going to keep these glasses on watch at home. And while I love watching sports on TV, I don't think the 3D experience will improve it.

I'll wait for the day that technology enables 3D without the glasses; I may even wait till we build 3D rooms to watch so that we are feeling immersed in the action of the movie or the sport. Until then, no 3D TV set for me.

Will Sirius Stock Price Go Over A Dollar?

Will the stock price go over a dollar? It really seems to depend on whether Howard Stern agrees to his contract renewal; otherwise, it may be the first indication that Sirius is not long for this world. "Analysts are conflicted about their views on Sirius XM(SIRI), with some skeptical about the company's soundness as a stock investment -- and others wholeheartedly confident of its financial strength." It seems the power rests with Howard Stern to keep this ship righted, If Howard goes back to terestrial radio, then I would suspect that consumers would follow and Sirius would start to see tons of defections from its subscription service. Stay tuned.

Fox Subscription a Cable Killer?

On the surface, it sounds like another business model to grow revenue via a subscription model. "The News Corp. subsidiary this morning unveiled Bitbop, a subscription service for smartphone owners that will deliver both streaming and downloadable movies and TV programs to smartphone users." Obviously, mobile is not cable, but the concept is a cable killer.

If Fox Mobile can get subscription revenue in this platform, then why not a subscription model under the web platform. No middle man, more direct contact with the customer. Isn't cable trying to deliver a TV anywhere platform to extend its reach beyond the wire to other boxes? And does this approach intrude on the cable partnership? Most likely, Fox will say its all experimentation to find out where the glue is.

But it is a clue that content owners may be willing to bypass cable subscription revenue if they can get the money directly from the viewer without a need for an intermediary. Cable companies must stay relevant and flexible to changing viewer interest. It's time for the cable companies to embrace SLingbox and other devices that enable programming to be moved from wired boxes to untethered pcs and smartphones. Until then, Fox and others wiwll continue to look to bypass the converter box and sell directly to the viewer.

Web Not Cannibalizing TV Viewership, Rather It Strengthens It

The fear that a new technology will destroy an old one is probably as old as the story of creation. That the rise of web use in a day would in a zero sum game, bring TV viewership down by an equal amount. That is not the case! "Nearly 60% of TV viewers now use the Internet once a month while also watching TV." Yes TV viewers do multitask.

The rise of social networking, the need for shared experiences, and the content on the big tube comes together into a converged usage model. We watch the Oscars, Super Bowl, American Idol, or other program, and simultaneously share our thoughts at the virtual water cooler, through Facebook, instant messaging, or other online program. As more people put their computer into the same room as their TV, that percentage will only rise. And as TV manufacturers add internet access directly into the TV, we could literally approach 100% simultaneous web and TV usage. That convergence is here and actively being embraced.

In addition, this study by Nielsen shows a rise in DVR usage as well as mobile and online. "Online video consumption is up 16% from last year. Of note, approximately 44% of all online video is being viewed in the workplace." I presume, the lunch hour is being used for that time to catch up while eating your sandwich. Let's hope our productivity doesn't suffer too much!