iPad the Savior of Newspapers and Magazines

Apple's iPad may be what ultimately rescues the newspaper and magazine industry. "Companies are paying newspapers and magazines up to five times as much to place ads in their iPad applications as what similar advertising costs on regular websites." And add to that a rise in subscription and content will remain king once again. The iPad appeal is that it allows print to be refreshed and updated at a moment's notice. it expands the print article to include video to augment the story. Just imagine Sports Illustrated not just writing about a perfect call gone bad by an umpire's poor call, but link the video and watch it along with reading the analysis.

No longer will newspapers be thrown onto the driveway every morning; rather, downloaded to your device. Coupons sent electronically and moved from iPad to mobile phone. And like a printed piece, authorized to be shared with others in your family. Will the iPad replace print altogether. Not immediately. For some, it will be hard to give up print. But over time, it will be the norm.

Cable Can Succeed As Hulu Fails

As Hulu tries to reinvent itself as a subscription service, it loses its foothold on the consumer. "Hulu, the free online TV hub, may be coming to Microsoft's Xbox gaming console soon as a subscription service. Microsoft plans to unveil the deal with Hulu at its E3 conference on June 14, according to tech blog Gear Live." A subscription service, despite where it is offered, causes the consumer to reconsider the value proposition.

At that point, it opens the door for cable to come in with its content and provide added (free) value by offering it online. Such is the case with Comcast which is offering its Fancast service as the opportunity as an authenticated customer to watch programming across multiple screens.

Customers that cut the cord are looking for other distribution platforms beyond cable that offer them the content they desire at a more reasonable price point. And while Netflix's subscription service provides tons of movies, both as streams and DVDs, a Hulu subscription requires the consumer to reassess its value over what cable offers with on demand, DVR, and online and what else is available free to watch over the web.

Will consumers buy Hulu? I strongly doubt that they can convert themselves from free to pay and compete. There is too much free content still accessible to consume. Has Hulu outlived its usefulness - perhaps!

Steve Jobs Believes The iPad Will Help Print Media

Steve Jobs, Apple's CEO, spoke at the Wall Street Journal's AllThingsD Conference and had plenty to say. One thing said loud and clear was the belief that media should be paid and and has value. "And he offered publishers advice: 'The biggest lesson Apple has learned is: Price it aggressively and go for volume. And anytime we haven’t done that, we’ve had more attenuated success.'" That certainly has been the strategy behind the iTune platform which has led to wide usage and revenue.

The iPad and other digital devices offers consumers a faster, better distribution platform for print content. When it is physically printed, its information gets quickly old; we live in an age of now and a need for the most current updates. Offering newspaper and magazine content on a digital window encourages consumers to purchase to get access, provided that this info is not available free elsewhere. Too much free content kills the pay model.

Is Zucker Done At NBC?

When companies are put up for sale, the prevailing winds say don't rock the boat. No sudden movements, no departure from the norm, steady sailing through choppy seas till the sale is completed. Done. Over. And such is the case for the proposed sale of NBC to Comcast. But despite such best efforts, and the rhetoric that management is solid and part of the future, change is being planned. One that comes with no surprises is that Jeff Zucker, long a fixture of NBC, will depart "with an exit package of roughly $30 million to $40 million, under the proposed exit deal, those sources said."

Clearly, NBC ratings have not done well under his stewardship. The Leno - Conan moves were a fiasco. And public opinion has not been very popular. But it is also hard to feel sorry for someone that will lose their job with $30 million plus in their pocket. Change is in the air.

The question that remains is what if the sale doesn't come through. Is it already done in back room hand shakes? Is the public FCC review merely for show? And is the merger of content and distribution, especially broadcast distribution, a good thing? It seems to me that the ship is leaving port, NBC will be in the hands of Comcast, Zucker will be gone. Plans are already being developed for post sale. I leave little hope that the NBC sale to Comcast will be denied.

Flash vs HTML5, Will Apple Blink?

Steve Jobs recently wrote his reasons for not including Flash in the iPad. Content companies seem to think otherwise. NBC and Time Warner both say that they refuse to reformat their video for HTML5 and that Jobs should accept Flash. And so the consumer seeking this content from these providers will be unable to view their favorite NBC or Time Warner Shows on the iPad. Will Jobs acquiesce or will these and other content creators that refuse find themselves missing a huge chunk of audience.


Apple already claims 2 million iPad users since its release a couple months ago. That number is sure to grow as the next generation of iPads are released. For now, it only represents the early adopters. And perhaps the video component of iPad is not the sole reason to purchase one. Users will find its multiple uses so important, that it may become as indispensable to carry as a mobile phone.

So who will blink first, Apple or the content companies. I suspect at the end, Apple's device will be the home run and the others will eventually join up and stop fighting.

Sirius XM to Go Global?

It seems that John Malone's Liberty investment in Sirius XM brings new revenue opportunities to the business model. Liberty's recent rescue of another international satellite company, could enable Sirius to expand around the world. "...speculation has run rampant that perhaps Sirius and WorldSpace could work to bring Sirius XM's programming abroad." Expanding its reach worldwide could significantly impact usage, provided that the programming offered is relevant to the marketplace. More investment in content would be necessary to capture those consumers.

As Sirius' stock price hovers around the dollar mark, it will be interesting to note the effect this news may have on the price. Sirius needs a boost, in an ever struggling economic market. Perhaps other sources need to be considered. Can anyone say Apple iPad app?

Can Tivo Survive As A Stand Alone Box?

Tivo announced its first quarter results and the news was plainly bad. Its deal with Comcast has not blossomed. Other cable companies have yet to license their technology. The courts stayed the Dish ruling and other patent fights are years away from resolution. So what is a company with a great product suppose to do?

Well one deal announced is with best Buy, but surprise, it is not to about its DVR capabilities. "The latest adopter is Best Buy, which will add the TiVo platform to its Insignia house brand of HDTVs at an unspecified date. (The exact phrase is “development is underway.”) Unfortunately, the press release announcing the deal explicitly states that the sets will be using the 'latest TiVo non-DVR software and advanced television service.'”

Will this business model offset the core revenue losses? Will Comcast, Time Warner and others recognize the value of the Tivo software and embrace it into the box? Doubtful. Most likely, they will do an end around. Use web software on mobile and wireless devices like the iPad, laptop, and mobile phone to provide a remote scheduling process that provides all the flexibility, ergonomics, and ease of a web page and then talk to the headend which in turn will program the home's DVR box. Search, recommendations, highlights, and colorful marketing on devices we have made invaluable in the home. Then the choice simply has to be "programmed" to record at the head end and updated in the home machine. And so no need to embrace the Tivo technology at the home set top box.

Can Tivo adapt to this type of future. Can they write the software that runs the engine at the headend. That it seems could be the next home run.

Is Facebook Losing its Luster?

Yes, Facebook dominates the social network scene. Yes, every marketing plan seems to include a social media component involving Facebook. And yes, Facebook got Betty White to host SNL. But is Facebook jumping the shark? Are consumers growing tired of their information being shared too easily. Younger consumers don't seem to mind sharing; older consumers are more wary. Some love posting every thing they do, including what they ate for breakfast, others act more as voyeurs of their "friends" lives.

I believe I have grown my friends list too quickly. Some are not really my friends, more acquaintances. Do they really want to see pictures of my kids? From Zuckerberg's WSJ Op Ed piece, "The challenge is how a network like ours facilitates sharing and innovation, offers control and choice, and makes this experience easy for everyone. These are issues we think about all the time. Whenever we make a change, we try to apply the lessons we've learned along the way. The biggest message we have heard recently is that people want easier control over their information." As Facebook simplifies its privacy features, perhaps it will allow us the opportunity to segment our friends so we can determine how "friendly" we want to be with each and which posts get seen by different segments of friends. It is time for a change. Consumers should get more control back into their lives.

Are We Watching The End Of Broadcast Television?

GE is selling NBC to Comcast and now there is speculation that ABC and CBS are also for sale. Obviously everything is for sale, but the greater question may be what does a potential sale indicate. "Among bankers, CBS appears to be garnering the most attention amid signs (Sumner) Redstone these days isn't dismissing out of hand the notion of selling CBS." As cable companies begin to pay retransmission fees for carriage, the cash flow looks strong. At the same time, ratings for broadcast erode as the cable model becomes more efficient. Will we be looking back and sale that the GE sale of NBC was the beginning of the end for broadcast television?

"While audiences will still show up in droves for tentpole events like the Super Bowl or an awards show, the increased popularity of cable is eating into broadcast networks' bottom line, which is further hampered by the high costs associated with producing series, steep sports-rights fees and expenses tied to owning a news operation. Also weighing on broadcasters is their ownership of local TV stations, which have been hit hard by the ad slowdown. Experts said the networks' real money-making opportunities lie in ancillary businesses, such as international syndication, DVDs and other merchandise, and ownership of a network isn't necessary to reap those benefits." So one day soon, the Super Bowl like other shows before it will move from broadcast to cable to potentially PPV. Affiliates will turn into local cable channels and national broadcast channels will be a distant memory.