Need to check a sports score, go on your phone. Looking for a nearby restaurant idea, go on your phone. Catching up on Facebook, go on your phone. And in my case, blocked from reading personal emails at work, go on your phone. The cell phone is the connection to media and information, wherever and whenever. Convenient, compact, and always with you.
"And this rabid consumption only stands to intensify as second-generation devices become more ubiquitous. According to the study, 24 percent of people now own a web-enabled smartphone, while cellphone ownership has fallen from 81 percent to 65 percent since 2009." Also worth noting, consumption of media is not a zero sum game; that is, it is not simply being moved from one device to another. We are consuming more because it has become effortless to interact wherever we are. And the variety of content online continues to grow.
"Indeed, the barriers between traditional TV, DVR, and video-on-demand are rapidly vanishing. Watching television live still commands 78 percent of the total hours viewed, but almost a quarter of TV viewing today occurs through a mixture of DVR, VOD, and online video -- an increase of 49 percent year-to-year." This is good news for content creators developing valuable content for TV. That content can now being viewed live on TV, on DVR, through on demand, online, and on DVD.
And smartphones are being made better to support our media requirements. The iPhone from Apple took them a quantum leap forward with it's touch pad concept and now other device makers have followed with their own versions. Still, our next hump to overcome remains the power source. Longer battery life will only lead to even more media consumption.
Wednesday, September 22, 2010
Tuesday, September 21, 2010
Apple Finding Another Revenue Stream
The Apple iPad/iPhone and iTunes platform was not just smart, it was revolutionary. It has been a game changer in the phone business, music industry and book industry. As it has killed the music store and begun to cripple the book store, Apple has set its sights on its next target, the newsstand. Rather than buy your newspaper subscription from the publisher, you buy your annual subscription through Apple and get accessibility on your iPad and iPhone device. "Publishers are, wisely, worried that Apple's inserting itself as the go-to vendor for publications will make the publishers largely irrelevant, the same way it has made the music companies irrelevant."
Will publishers give up complete control? Will consumers want both print and digital version as they transition consumers. Will digital be the rebirth of the print industry and lead finally to consumers paying again for content and not just reading for free online. iTunes proved that a model can bring consumers back from stealing songs to buying them. Priced competitively with extras that are exclusive inside a walled garden of content, print subscriptions should find their subscription revenue rising.
The timing of new content with the next generation device is typical for Apple. It keeps them on the cutting edge and maintains Apple's leadership position. While Apple has never conquered the PC world with its mac line, despite being a superior product, it has found great success with the ancillary devices that we as consumers are becoming more dependent on. First the phone, then the pad. Apple is making them the must have gadgets for all.
Will publishers give up complete control? Will consumers want both print and digital version as they transition consumers. Will digital be the rebirth of the print industry and lead finally to consumers paying again for content and not just reading for free online. iTunes proved that a model can bring consumers back from stealing songs to buying them. Priced competitively with extras that are exclusive inside a walled garden of content, print subscriptions should find their subscription revenue rising.
The timing of new content with the next generation device is typical for Apple. It keeps them on the cutting edge and maintains Apple's leadership position. While Apple has never conquered the PC world with its mac line, despite being a superior product, it has found great success with the ancillary devices that we as consumers are becoming more dependent on. First the phone, then the pad. Apple is making them the must have gadgets for all.
Monday, September 20, 2010
Big Media Threatened By New Media
Scratch, scratch, scratch. Here that sound. That is the sound of streaming media taking away viewers from cable. Is it a new sound; heck no. Radio heard it from TV. Broadcast heard it from cable. And now cable is hearing it from new media. "The report said companies like Netflix were poised to see solid growth as consumers with moderate income switch to its low-cost, subscription streaming service potentially cutting cable service from companies like Comcast Corp (CMCSA.O) and Time Warner Cable (TWC.N)." It is change at its finest and brings new opportunities and new challenges. Internet content from Apple, Amazon, Netflix, My Damn Channel, Next New Networks, and many many others. ESPN.com isn't the only stream in town.
While Netflix sees growth, cable basic subscribers are declining. Right now, cable is watching its current customers either taking on more services or dropping completely. As customers figure out that they don't need digital phone, that they can downgrade their line-up removing premium services and high costing tiers for movie services that are cheaper and just as robust. And as that trend continues, that they can access broadcast still for free and don't need the cable access.
The world is broadband only and access to all of tons of content. The real worry of cable is that the triple play becomes one play again and that cable doesn't get to aggregate content anymore. TV makers are making internet ready TVs and content creators are selling shows to cable, Apple, and others. Cable must act to differentiate itself if it wants to remain competitive.
While Netflix sees growth, cable basic subscribers are declining. Right now, cable is watching its current customers either taking on more services or dropping completely. As customers figure out that they don't need digital phone, that they can downgrade their line-up removing premium services and high costing tiers for movie services that are cheaper and just as robust. And as that trend continues, that they can access broadcast still for free and don't need the cable access.
The world is broadband only and access to all of tons of content. The real worry of cable is that the triple play becomes one play again and that cable doesn't get to aggregate content anymore. TV makers are making internet ready TVs and content creators are selling shows to cable, Apple, and others. Cable must act to differentiate itself if it wants to remain competitive.
Friday, September 17, 2010
Disney, Nielsen team on Apple iPad app
Has advanced advertising on the set top box just got burned. Does interactivity on the TV screen matter when a device in your lap better augments the viewing experience. Has the Apple iPad proven itself again, beyond that of an e-reader to become the ultimate TV companion. The answer is yes.
While the show, My Generation, may not be the ultimate in water cooler conversation, it will simply be the future answer to a trivia question on which was the first show that had interactive capabilities. "Users who download the app can multi-task between the TV experience and the iPad, which will display polls, trivia and other content timed to be relevant to what is transpiring in the 'Generation' storylines." Rudimentary to start, but the future capabilities seem endless. I'd love to see what ABC and its sports counterpart, ESPN, do with a live sports game.
So how does it work; how does the iPad app know what is on the screen. To me, this is ingenious. "What Nielsen brings to the table is audio watermarking embedded in the broadcast that signals the iPhone {and iPad} through its microphone to trigger timed content. While the technology has always been used by Nielsen strictly for measurement purposes, a new mobile-friendly upgrade opened a new ancillary business for the company and Digimarc Corp., which is teaming up with Nielsen on what it has dubbed its Media Sync Platform."
Interactivity with programming without clutter on the TV screen. In fact, an iPad app seems less intrusive than on-screen. And so much easier to coordinate what you see on screen with an online purchase. The commerce opportunity could be more easily managed through your iPad than through a set top. As ABC and Apple test the partnership, I'm sure more strategic partnership opportunities will emerge along with more revenue streams. Regardless of when, Apple is certainly making its iPad a must have device in the home.
While the show, My Generation, may not be the ultimate in water cooler conversation, it will simply be the future answer to a trivia question on which was the first show that had interactive capabilities. "Users who download the app can multi-task between the TV experience and the iPad, which will display polls, trivia and other content timed to be relevant to what is transpiring in the 'Generation' storylines." Rudimentary to start, but the future capabilities seem endless. I'd love to see what ABC and its sports counterpart, ESPN, do with a live sports game.
So how does it work; how does the iPad app know what is on the screen. To me, this is ingenious. "What Nielsen brings to the table is audio watermarking embedded in the broadcast that signals the iPhone {and iPad} through its microphone to trigger timed content. While the technology has always been used by Nielsen strictly for measurement purposes, a new mobile-friendly upgrade opened a new ancillary business for the company and Digimarc Corp., which is teaming up with Nielsen on what it has dubbed its Media Sync Platform."
Interactivity with programming without clutter on the TV screen. In fact, an iPad app seems less intrusive than on-screen. And so much easier to coordinate what you see on screen with an online purchase. The commerce opportunity could be more easily managed through your iPad than through a set top. As ABC and Apple test the partnership, I'm sure more strategic partnership opportunities will emerge along with more revenue streams. Regardless of when, Apple is certainly making its iPad a must have device in the home.
Thursday, September 16, 2010
Cable Losing Shares
The story may be about Time Warner Cable announcing a loss of subscribers in the third quarter, but once the other cable companies announce their numbers, Time Warner will not be alone. But it is the second line in the NY Post story that really made me chuckle, "Poor home sales and the weak economy, which have families pinching pennies, are seen as the culprits." Perhaps there are other reasons at play too!
The cost of cable has risen faster than the inflation rate. Internet connections, whether tethered or wireless, are more valuable to the home than the cable subscription. And customers are tired of paying for more but essentially getting the same content. Customers are tired of exorbitant cable bills. My own relative recently informed me that their family recently cut the cord. A digital antennae, a broadband connection, and a Netflix subscription, and they estimate a savings of over $500/year. Sure, they are watching their pennies, but they are not doing without. They are getting all the content they want and need through alternative sources. It is competition through technology that is hurting the cable distributor. Yes price is a factor; but choice, convenience and ease of use are working against cable too. Technology is building a better user experience to compete with the cable model and at a lower price.
How will cable respond. Unfortunately, broadband pricing will begin to rise, again most likely faster than inflation. Heavier users will be penalized with additional fees. And cable will try to offset the loss of cable subs through higher pricing to their broadband subs. A wrong strategic move. The barriers to entry in wireless appear lower than cable. New competitors will rise and offer blanket coverage in your community and across the US. Content will continue to fill the IP platform and the consumer shift away from a tethered world will only grow.
The signs are there, Time Warner and the other cable companies. Stop blaming the economy and start changing your strategy to adapt to a changing entertainment landscape. Else your leadership position will fall.
The cost of cable has risen faster than the inflation rate. Internet connections, whether tethered or wireless, are more valuable to the home than the cable subscription. And customers are tired of paying for more but essentially getting the same content. Customers are tired of exorbitant cable bills. My own relative recently informed me that their family recently cut the cord. A digital antennae, a broadband connection, and a Netflix subscription, and they estimate a savings of over $500/year. Sure, they are watching their pennies, but they are not doing without. They are getting all the content they want and need through alternative sources. It is competition through technology that is hurting the cable distributor. Yes price is a factor; but choice, convenience and ease of use are working against cable too. Technology is building a better user experience to compete with the cable model and at a lower price.
How will cable respond. Unfortunately, broadband pricing will begin to rise, again most likely faster than inflation. Heavier users will be penalized with additional fees. And cable will try to offset the loss of cable subs through higher pricing to their broadband subs. A wrong strategic move. The barriers to entry in wireless appear lower than cable. New competitors will rise and offer blanket coverage in your community and across the US. Content will continue to fill the IP platform and the consumer shift away from a tethered world will only grow.
The signs are there, Time Warner and the other cable companies. Stop blaming the economy and start changing your strategy to adapt to a changing entertainment landscape. Else your leadership position will fall.
Wednesday, September 15, 2010
Sirius Could Be More Profitable Without Howard
If Howard Stern chooses not to renew his Sirius deal, it may prove more beneficial to Sirius. Despite losing some Stern devotees, "Sirius can build sales with the money it saves on Stern." Or use some of that money to buy other talent needed to keep the content on Sirius looking exclusive and unique.
Whether it is an improving car industry or overall economy, Sirius subscriber numbers have been growing. Per the S&P analyst in this article, Sirius could add 1.1 million customers in 2010 and another 1.4 in 2011. Finally some healthy growth for them. Beyond Stern, Sirius' mix of sports, music, comedy, talk, and more may finally be appealing for consumers. With new cars including Sirius technology, the ease to subscribe is also a major boost. As Sirius uses free trial to demonstrate its value, the customer base rises. It may slowly becoming a must have feature for every car.
Whether it is an improving car industry or overall economy, Sirius subscriber numbers have been growing. Per the S&P analyst in this article, Sirius could add 1.1 million customers in 2010 and another 1.4 in 2011. Finally some healthy growth for them. Beyond Stern, Sirius' mix of sports, music, comedy, talk, and more may finally be appealing for consumers. With new cars including Sirius technology, the ease to subscribe is also a major boost. As Sirius uses free trial to demonstrate its value, the customer base rises. It may slowly becoming a must have feature for every car.
Is It Time To Buy An iPad
Fourth quarter is just around the corner and stores are gearing up for the holidays when sales really pick up. And in time for the holidays, the next release of the Apple iPad. "Apple is rumored to be working on a second generation of the iPad with FaceTime video conferencing ready by the holiday shopping season." Does a front facing camera on the iPad turn the corner from an intriguing device to a must have? Or, is it really necessary to rush a next version. "Apple has been racing to keep up with demand for the iPad, selling more than 3.27 million by late July and only getting to 24-hour turnaround on orders as of late last month."
With demand what it is why the rush.
With demand what it is why the rush.
Tuesday, September 14, 2010
I Want My MTV
Almost 30 years, the cry of "I Want My MTV" was both a song refrain and the longing of a new generation for programming geared to them. The rise of a channel devoted to music, another to news, and another to sports was the start of the 1000 channel universe of cable programming. New cable networks arose although the mythical number of channels was never met. The cry for MTV brought more programming choice to the medium we love - television, and demonstrated that niche programming can survive.
That is for a time until the desire for more profits outweigh the desire to remain true to the niche one serves. Each channel, MTV included, broadened its programming format to widen its audience interest and raise its Nielsen rating. Every channel started delivering movies, cartoon channels added live action, old movie channels added new movies and tv series. Even MTV stopped showing music videos. Not one channel today has stayed true to its niche.
But the cry for more continues to ring out and today it is in the form of on demand programming. There may not be 1000 channels, but there sure is almost 20,000 hours of on demand programming. But viewers also want to watch content beyond the four walls of their home. The cry today is now for wireless and access everywhere; and with it more choice. While on demand rises, the need remains for access to live programming remotely as well. The cry is for connection - across devices, across platforms, heck even across continents. ALL CONTENT EVERYWHERE. Perhaps we need a new song refrain today to hype our hopes for this next want. "I want my content now".
That is for a time until the desire for more profits outweigh the desire to remain true to the niche one serves. Each channel, MTV included, broadened its programming format to widen its audience interest and raise its Nielsen rating. Every channel started delivering movies, cartoon channels added live action, old movie channels added new movies and tv series. Even MTV stopped showing music videos. Not one channel today has stayed true to its niche.
But the cry for more continues to ring out and today it is in the form of on demand programming. There may not be 1000 channels, but there sure is almost 20,000 hours of on demand programming. But viewers also want to watch content beyond the four walls of their home. The cry today is now for wireless and access everywhere; and with it more choice. While on demand rises, the need remains for access to live programming remotely as well. The cry is for connection - across devices, across platforms, heck even across continents. ALL CONTENT EVERYWHERE. Perhaps we need a new song refrain today to hype our hopes for this next want. "I want my content now".
Monday, September 13, 2010
Viewers Prefer Local News And Miss Local Cable Companies
I read this short article today and it reminded me of what cable distribution initially meant. As people seem to prefer local news, cable was meant to be your local distributor. Municipalities would take bids and select their local cable provider in exchange for local channels and production facilities. Just check down in the lower numbers of your cable line-up for those channels. Yes they are still there. And cable companies built local offices manned by local management to respond to local issues. And they marketed their local presence as something unique, that the telephone company couldn't do.
Today, cable distributors have consolidated their management operations into regional or divisional levels. Most decision making has gone even higher into the corporate building. There seems to be no more local and cable distributors have opted to copy the telephone model today instead of differentiating from it. The local manager no longer exists; in fact, those local buildings may now simply be call centers or warehouses with no General Manager in attendance. Consolidation is king.
As for the story of local news still number one. people still live in neighborhoods and still want to know as much about what is going on outside their front door as in their state, country, and world. Local may have been a buzzword for the early days of cable, but local still does matter.
Today, cable distributors have consolidated their management operations into regional or divisional levels. Most decision making has gone even higher into the corporate building. There seems to be no more local and cable distributors have opted to copy the telephone model today instead of differentiating from it. The local manager no longer exists; in fact, those local buildings may now simply be call centers or warehouses with no General Manager in attendance. Consolidation is king.
As for the story of local news still number one. people still live in neighborhoods and still want to know as much about what is going on outside their front door as in their state, country, and world. Local may have been a buzzword for the early days of cable, but local still does matter.
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