Content Everywhere and Anywhere

There is so much talk about video content being accessible everywhere and anywhere. And for the consumer, it is all about paying once for that content. Cable companies like to talk about bundling, triple play packages of voice, data, and video and discounting for buying these bundles of services. The same holds true outside of cable.

People Magazine is bundling the price of online and subscription. "The iPad application for People will be free to readers who subscribe to the magazine, the first step toward what Time Inc., the world’s largest magazine publisher, hopes is a model for the bundling of print and digital sales for all its publications." Not a new concept as the Wall Street Journal also packages a print and digital subscription this way, but one that needs more active marketing to push the value back to the consumer. Until print goes away entirely, the bundle is a good way to move consumers into paying for digital subscriptions. At some point, they can nix the print and perhaps the package can increase the number of digital downloads for the family in exchange for not sending out the print issue. Less production and mail costs, hopefully more net income.

And it keeps pushing value back to Apple and the iPad. A tablet may be a smaller computer but it needs software and content to make it a must-have product. The more content Apple secures for the iPad, the more valuable a device it becomes and more difficult it becomes to compete with.

FIOS Everywhere Only Inside The Home

Verizon has an announcement that will revolutionize the "anywhere" concept - sort of. "Verizon FiOS TV subscribers will get to play with several new multi-platform video applications over the next year, including an iPad app that will allow subscribers to stream live cable network feeds to the Apple tablets. The iPad app, which expects to be launched sometime next year, will allow authenticated FiOS subscribers to view live content from their cable boxes on their iPads from within their own homes". The last four words changes the whole value of the opportunity. Great that Verizon is working with the iPad; Fantastic that content can leave the TV screen; Limiting that it can go no farther than your front door.

It is also interesting to note that content does not include everything on your cable box. Again, according to the article, Verizon is negotiating rights. So right now there is no approved content. How does Slingbox move content and FIOS can't do the same thing. The opportunity to push content off the cable box to a different device like the iPad is a game changer. But not with the two limitations that FIOS faces, geography and approved content. Without both of those issues handled for all content anywhere you travel, the new app will be all smoke and mirrors.

Apple Keeps Innovating

Does Apple ever slow down? It appears not. They seem to have an innate sense of the future and are leading the way with change. The results have been the iPod, the iPhone, and the iPad. Well the need seems to exist for a size smaller than an iPad but bigger than an iPod. "Taiwan's Digitimes newspaper last week reported that Taiwanese companies were starting to assemble a 7-inch iPad for Apple." Smaller, lighter, easier to carry. Could be another piece in the dominance of Apple.

At the same time, talk mounts that Apple TV is being revamped and re-marketed. "Tech analysts expect Apple soon to revamp its under-performing Apple TV gadget, which plugs into a TV so you can watch movies and shows via iTunes, in order to take on the new Google TV service when it launches this fall." Great another box on my TV set and another remote to juggle along with my cable and TV remotes.

What I wish Apple would push farther is home networking. Letting Apple devices in the home talk to each other. If each box acts too independently, than information I put on one device has to be loaded again on other devices. Easy syncing of calendars, phone numbers, photo albums and music, from one device accessed to others. That sharing of content by family members to multiple devices, mobile or resident in the home would vastly improve communication and usage. That movie you downloaded to your iMac is shared with your TV set in the bedroom; that song you downloaded to your iPhone is synced back to your iMac itune library; your calendar is updated with kid doctor appointments for the iPad in the kitchen and your iPod at work. Connected and shared; Apple should push this home networking solution across all its products.

Will Tablets Save the Magazine Industry?

The buzz continues to swirl around iPads and other Tablet devices. While they have yet to go beyond the early adopter, the interest is there and I suspect most are waiting for 2nd and 3rd generation devices at lower price points before finally making their first purchase. But the desire remains to buy one. Perhaps too, they are waiting for that one App that will be the straw needed for purchase. Are digital magazines that straw?

For the magazine industry, the hope is that consumers will buy digital subscriptions; but if they have been comfortable reading articles for free online, why would they buy. "It says iPad magazines and similar stuff will generate $3 billion in advertising and circulation revenue in 2014, assuming that the market expands beyond Apple (AAPL) to include Google (GOOG) and other competitors. But after you account for print dollars the digital versions will cannibalize, that nets out to $1.3 billion in incremental revenue." But in the magazine industry that amount is not really that much.

I have definitely cut back on my magazine subscriptions. Perhaps it is a function of a bad economy and the need to cut costs or the fact that most stories are accessible online. More is needed to preserve the editorial exclusiveness as well as the leadership positioning to be sought after. For example, a bakery is a bakery; they all serve cakes, cookies, etc. I recently took the family to visit Carlos Bakery in Hoboken, the site for its TLC series. The line to get in on Sunday was 2 hours long and continued like that all day. Each group that entered got a ticket and purchased something. Was their food that much better than any other bakery, probably not. But they successfully positioned themselves as unique and famous and a leader. Customers chose to want to visit them. Their multi-platform marketing strategy turned them from simply a bakery into "the" bakery. They differentiated themselves from every other bakery and added a new dimension to marketing.

I believe that the magazine industry can prosper thanks to digital media. They have to find their "multi-platform" strategy to make their brand unique. Those magazines that adapt will survive; unfortunately, those that don't will follow Darwin's law.

Would You Buy Hulu Stock?

Hulu and its partners are ready to go public and perhaps get some value confirmed on their investment. It seems an IPO is being planned and the public will have a chance to share the ride. But will it spell success? Not every IPO is successful and not every new technology is sustained. I mean whatever became of Prodigy.

Hulu has plenty of competition, from cable as well a other streaming services like You Tube, Netflix and Apple. It works with a single ad revenue stream and is trying to break into the subscription revenue model. It makes a little profit, but can that trend continue as cable expands into the streaming space. "An offering would be among the most significant developments for Hulu in its three-year history. Founded as a joint venture of the News Corporation, the Walt Disney Company, NBC Universal and the private equity firm Providence Equity Partners, Hulu aimed to be a counterweight to YouTube and other free video sites." But is it also being used as a chance for these partners to cash out their investment costs and, like the poker table, just work with its winnings.

It's a tough economy, so not every IPO is a winner. I like to dabble in stocks, but I am not a believer in Hulu. Ultimately, I believe its competitors are better positioned in the long run. And when multiple big ego companies own pieces, and you can bet they don't easily get along with each other, Hulu management must have a hard time getting anything approved by its partners. That slows down their ability to adapt quickly to change in an ever changing entertainment landscape.

Cable Wants Tablets

On Demand is extending past the TV set and cable may finally see the light. Keeping their customer entertained, whether tethered to the cable box or not, matters most. And the Tablet seems the next generation device that has caught cable's eye. "At least seven of the ten largest subscription-TV providers in the U.S. are building new tablet-computer applications that offer select TV shows and movies to their existing subscribers, often for little or no additional fee."

Companies like Comcast, Time Warner, and others are finally investing their time and dollars into the space. For example, "Comcast's new application will ask subscribers to log in, and include a search function to display all the available episodes of a show—whether they're on live TV, on traditional video-on-demand or available to watch on the iPad." Let's hope that this investment extends to other smartphone devices as well. Ultimately though, I like the idea of incorporating the sling technology that enables live TV to be viewed remotely. I can wait for on demand when I am back at home, but I like the idea of not missing live events when I'm outside the home.

Distribution companies will also be challenged by the content they are sharing outside the box. Content companies will be offering its content through its own web sites and through other means. It will lead to confusion, a huge supply with little help in search and expertise to lead a viewer through the vast number of offerings. It is hard enough to find things on a cable box, let alone on the web. Choice and convenience are important, but expertise is needed as well.

Tivo Adds Distribution Through Cox

For Tivo fans on a Cox Cable system, you have another choice of set top box with Tivo. And the better news is that Cox and Tivo will enable video on demand through this service. "Cox expects to enable access to VOD for TiVo Premiere DVR users in early 2011 across all major markets, offering up to 15,000 hours of video. The companies touted it as the first time a cable operator will integrate its on-demand service with a third-party retail device." Great news for those that hate their current DVR and seek a better user experience.

Tivo needs these partnerships. With battles with Dish and losing subscribers, like me, forced to take a cable box for HD, VOD, and DVR, Tivo needs to be easily integrated in the set top box world. It is great to read that Cox has joined RCN to move down that road. Let's hope that Comcast pushes Tivo through its "test" over the too many years into actually offering it to consumers. And that Time Warner, Cablevision, Charter, and others add the choice as well.

"Here's Johnny" On The Web

I like many others am a Johnny Carson fan. I had the pleasure during a college summer to attend a Tonight Show taping and watch Johnny. The hour went by very fast. I marveled at his timing and read with interest the stories about him. One I recall is that he took the advice from Jack Benny to let his guests be funny. He would not be upstaged; rather, it would always be Johnny's show that viewers wanted to watch. In fact, he "stole" Jack's timing and those long pauses only helped to make the guests and Johnny funnier.

How nice to see that most of these shows are saved and accessible via the web. "The full Carson collection, which reaches back to October 1962, has been restored, digitized, annotated and transcribed for viewers on the website johnnycarson.com, which will also feature DVD sets available for purchase." When you do a show each night, it is hard to make each one a classic; but the Tonight Show certainly was. The hardest part of being a talk show host is to share the stage. Johnny did it every night, with animals, kids, the elderly, and superstars. Each were treated with class. Each were allowed to talk not be talked over. Johnny let his guests talk and laughed at their stories. He could simply give a look and the scene got funnier. He was a master of timing.

Unfortunately the earliest shows, especially those from his first studio in New York City, were destroyed. Back then, no one thought that there would be a secondary market for this content. But we can't look backward and must be grateful that so much has been saved and restored. And great that it is accessible on the web, too. Here's an idea, put some shows on cable in the on demand space, too. It's time for more people to watch the Carson magic.

Epix Distribution Through Netflix

Epix, the upstart premier movie service, has struck another deal. In a move that will help their bottom line, Epix is offering Netflix a window of films from the Epix film partners. "Wall Street analysts estimated that Netflix would pay about $900 million over the course of five years to Epix, a fledgling competitor to HBO that holds the rights to the film output of Paramount, Lions Gate and MGM."

Recently, Epix has struck deals with Charter and Verizon for carriage of its service. I wonder if those partners are happy with this new deal. In essence, it eliminates any competitive edge that cable was trying to have against Netflix. And most likely, it will also hurt Epix chance of carriage deals with Comcast or Time Warner, unless they feel the need to match the Netflix offering on their platform. Is Iron Man 2 enough of a draw?

"The two-year-old Epix is invisible to most consumers because some big companies like DirectTV and Comcast don’t carry it. But it is preserving the deals it does have by carving out a three-month TV window for films before they are available to Netflix subscribers." Is three months enough? And given how quickly movies are moving through the distribution pipeline, new movie premieres are coming monthly and causing consumers to quickly forget the ones before it. Perhaps that consumption pattern will make this new deal with Netflix a non issue for the cable providers. It's becoming a very competitive marketplace and that tends to be better news for the end consumer.