Cablevision and Fox: Still No Deal

It is more than a week, the NLCS series is over and done and the World Series on Fox begins tomorrow night. And still no agreement. I have already heard from friends in the area; some were able to switch to FIOS and others only wish their area had FIOS. With no end in sight, a dish or antenna seems the next best solution.

In addition, the NFL Network has voiced an opinion. Not about Fox, but about their own need for binding arbitration to conclude a deal. Does any network get a break with Cablevision? The proof is in the pudding. And now the government is involve. "A senior Federal Communications Commission official wants to know whether Fox and Cablevision are negotiating in good faith or are spending all their time running attack ads against each other." To what extent the FCC can impact remains to be seen.

It may also reveal an even bigger issue between programmer and distributor. Part of the hang up is online content. Fox is a partner of Hulu and Cablevision may see Hulu as more a threat than complement. It also illustrates the challenges a Comcast-NBC deal may bring to the industry should the merger be allowed to continue.

Many want this Cablevision and Fox business to go away; unfortunately, its public airing of dirty laundry only goes to further exemplify the issues of content and distribution owned by one entity. On the surface it is about license fees; but dig a little more and it is clear the issues are far more complex.

Goodbye Walkman, CD Player Close Behind

Sony has finally decided to stop producing their once revolutionary cassette player. What, you thought it was already dead; me too. But the official word has just come down. "Sony has sold 220 million cassette Walkman players globally since the product's July 1979 debut that changed lifestyles by popularising music on the go." Except, I was expecting to hear that the portable CD player had also been retired. It seems cassettes have been dead for a good three years.

Sure, stores keep selling CDs but with the number of digital devices in the market place, is anyone using a portable CD player? CDs first appeared only a few years after cassette players; In the late 80's they appeared as options for cars. You would suspect that within the decade, CDs will stop being produced and all music will be sold as digital downloads. We are watching a migration from physical media to digital to eventually cloud. We will no longer physically hold onto something but access everything from the network. It is the direction we are headed or all media as we demand what we want, where we want, when we want, how we want.

It's Hard To Keep The Verizon iPhone Secret

Verizon Wireless had a very good financial quarter, beating the analyst estimates and enjoying high earnings. At the same time, the fourth quarter looks uncertain. The reason, the Apple iPhone. While AT&T grows customers at a high rate, Verizon growth is seen as below average.

Consumers are expecting the iPhone to launch on Verizon in first quarter 2011. And many are waiting to update their phone or switch providers. I am part of that former group. My contract with Verizon has been up for a while and I have no intention of changing my phone till the iPhone is released. I have seen what is out there and know what I want. I believe the same holds true for others. "Verizon Wireless, a joint venture of Verizon and Vodaphone Group, could sell 9 million iPhones a year, Charlie Wolf, an analyst at Needham & Co., has said." And both Apple and Verizon will enjoy a very healthy and profitable 2011.

Networks Say No To Google TV

Cablevision is fighting to not pay for Fox broadcast networks. The networks are excited to be getting license fees from other MSOs to improve their bottom line. So why would the networks want to hurt their new revenue model with a product meant to increase consumer cord cutting. "The move marks an escalation in ongoing disputes between Google and some media companies, which are skeptical that Google can provide a business model that would compensate them for potentially cannibalizing existing broadcast businesses." And by that, the networks mean this new second revenue stream.

Still isn't that what access on a website of full length programming entails. Those not willing to pay for HBO and Showtime simply wait a year for True Blood and Dexter to be released on DVD and out on Netflix. Some buy it later on iTunes. Like the movie industry with windows on release dates to different platforms, a similar model may need to be built for broadcast shows and the web. Watch Modern Family now on cable or 6 months later on Web TV.

Still it is hard for the networks to put the genie back in the bottle. Ad revenue through commercials is not enough and the networks are finally enjoying a second source of revenue through license fees. The challenge is that the consumer is tired of paying more and is ready for ala carte to pay less. They would rather just buy the show they want to watch and no longer the whole network. With free content on the web, the consumer is moving away from the cable box to a cheaper alternative. As the adage goes, "Why buy the cow when the milk is free".

Can Sirius Survive Without Howard Stern

The simple answer appears to be yes; in fact, the savings that Sirius gets by unloading Howard could offset debt and pay for alternative talent. "The company might return cash to shareholders through buybacks or dividends, Karmazin said. Such a move will become increasingly likely as Sirius XM continues to lower its debt and build cash flow, though there’s no target date for such action, he said."

Still, Howard remains a great fit for Sirius and while some audience might defect without him, investments in other alternative programming could bring in a new audience. And "Sirius XM stations, such as Raw Dog Comedy and Playboy Radio, would help retain many of Stern’s listeners if he left, he said."

Howard's contract doesn't expire till December, so there is still time for Howard Stern and Sirius to renew their vows.

No Sports For You

Cablevision and Fox are still fighting. And Cablevision customers have lost three NLCS games and Giants Football game. Unhappiness reigns.

Interesting to note that a Calevision offshoot, MSG is facing the same problem with Dish. MSG is off the air as contracts remain unsigned. And in both cases, Cablevision and MSG are requesting arbitration as the solution. PR ploy or sign of a real attempt to settle, who knows.

What I do know is that the distributor - content relationship has soured in the last few years. It has become increasingly acrimonious and what I would describe as a win - lose relationship. Each wants to win by getting the other party to lose. This strategy has a negative long term result and makes each subsequent negotiation that much worse. And frankly, it is becoming destructive to the health of the cable industry.

Fox - Cablevision Dispute Means No Baseball, No Glee

Cablevision customers missed out last night on game one of the NLCS Giants - Phillies series. Despite ongoing negotiations, neither side could agree on a new contract. And rather than think about the customer, the signal went dark. "News Corp./Fox has argued that Cablevision has focused more on getting the two parties into binding arbitration, which Fox rejects, than reaching a solution." Regardless, Cablevision customers missed Fox's Saturday Night programming.

Of the voices complaining, the one that seems silent is that of Major League Baseball. It is a key time for MLB and they should be furious that the number one market in the country lost a chance to watch their programming. Yet I have not heard or read a word from MLB voicing their dissatisfaction with this outcome.

Now there is one thing worth noting, Fox is a broadcast channel and consumers could have just as easily gone out to their local store, picked up a digital antenna, and tuned in. Yes, it is a backwards step, but it was the fastest solution. The fact that Fox ads argue to switch providers may be nice, but the time it takes to get an installer into the home to switch to another company may take at least a week. By then the negotiations will likely be resolved and Fox will be back on the air.

Should consumers still switch? Well this isn't the first time a network went dark with Cablevision. Those tired of these shenanigans may switch anyway knowing that this scenario will only play out again and again.

30 Rock Live

I loved 30 Rock Live last night. I loved it for many reasons but mostly because it took the chance. The early days of TV, the "Golden Days" as they are now fondly recalled, were all about live TV. Mistakes happened, but the adage "the show must go on" was always present. Not that anything unusual occurred, but the show had fun with it, including Tracy breaking character and a picture falling off the wall.

And the show was performed twice, once for the East Coast and again for the West Coast. Well conceived, well planned, and well executed. With inside jokes and tons of punch lines, [“Why do people do anything? Because they’re rich or they have Attention Deficit Dis — Hey! Look at Lutz’s shirt.”] 30 Rock continues to impress. And perhaps this type of stunt becomes an annual event. I hope new viewers came along for the ride; they are watching another classic on TV.

Verizon and Apple Selling The iPad

It's not the iPhone yet, but we know it is coming; the first official announcement is that an iPad through Verizon will be here shortly. "The two companies announced that Verizon Wireless will begin to sell iPads in retail stores at the end of the month. Verizon will offer three bundles, all featuring an iPad Wi-Fi model and a Verizon MiFi 2200 Intelligent Mobile Hotspot, which will allow it to operate on Verizon's 3G network." No AT&T exclusivity to worry about. No 4G yet either. But that only means next generations with better visuals and faster connections.

So Verizon gets the iPad by November and perhaps the iPhone by March. Important to have done this deal as the upcoming CES Show in January will most certainly be about the tablet and Apple will have lots of competition. Not that I think Apple is worried. As the leader in the space, their devices continue to out perform the field. Heck, Microsoft can't even compete.

I would not be surprised if the iPad is called the must have gift for the Holidays. With its ever-growing number of apps, its retail presence, and now its multiple communication platforms, the Apple iPad is poised for being more than an early adopter toy. It is becoming the must have device for the home.

Even cable operators are getting into the act, building iPad apps to turn the device into a remote for the TV. From access of all on demand content, a trove of data and art on every tv and movie show, and the ability to order and call up the program to the TV, the iPad is gaining even more traction as both an in home and out of home device.

So congrats to Verizon and Apple for finally coming together. The future for both keeps looking brighter!