Apple Dazzles Again

Whatever the impact of the Steve Job's announcement that he was taking a medical leave did to the stock price, the subsequent financial release of earnings and performance caused a swift bounce back. Apple excels and continues to outperform all expectations. "Investors focused on Apple's success in boosting production of iPads, which happened faster than analysts predicted. Shoppers also bought iPhones as fast as Apple could make them, helping drive the company's fiscal first-quarter net income up 78 percent from the prior year." Apple knows what the customer wants and is the leader in getting it to market first.

Without Steve Jobs at the helm, the concern is whether there are others inside the company with the same vision to innovate. At least for now, there seems to be much in their pipeline to sustain them for quite a while. Heck Microsoft has been selling the same product for decades.

Other interesting news, while Jobs has stepped down at Apple, he is still retaining his seat on the Disney board. Certainly not as essential a position, but one that hopes means that Jobs will be back from his medical leave to continue to run Apple. Here's to hoping for his good health.

FCC Approves Comcast NBC Merger

One approval down and one to go. The FCC today has approved the merger of Comcast and NBC and the Department of Justice is expected to also approve. Obviously, the conditions for merger have been agreed to and we are on our way to a new mega-brand. "FCC Chairman Julius Genachowski approved of the joint venture late December, saying that ultimately the union would benefit consumers as Comcast promised to add 1,000 hours of news and informational programming to some channels, contribute $20 million in venture funds for minority programs, and $9.95 broadband Internet service for low-income households." Will the consumer gain in this transaction/ to me, the key remains competition. Encourage more competition in the wireless industry so that content can be accessed without a wire through multiple platforms.

For the new Comcast-NBC, the likely official turn the keys over date will be the last Friday in January. And with any merger, I am sure the employees on both sides of the fence are wondering, what does this new company mean to them and their job. WIll they be in or out? In short term all those questions will also be answered.

Apple's Steve Jobs Takes Another Medical Leave

Apple's stock price is zooming with some speculating that it could reach $1000. Verizon has finally secured its iPhone and the iPad 2 is expected to be released this Spring. All has seemed right in Apple Land and that is never a good sign, as pessimists would say. So it is unfortunate news to read that Steve Jobs needs to take a medical leave from his current responsibilities. "While it’s unclear what the reason is for the medical leave, Jobs’ previous medical history includes Pancreatic cancer as well as a liver transplant. In 2004, Jobs contracted Pancreatic Cancer, which he beat. Then Jobs underwent a liver transplant in 2009, and also made a full recovery. During Jobs’ absence in 2009, COO Tim Cook took over Apple’s day-to-day activities, similar to this situation.'

Hopefully more news will come shortly. Apple's earnings for 2010 and fourth quarter are expected tomorrow and additional news may come at that time. Until that release, Apple's stock may see a drop today. Let us hope that the news is not bad. For Apple, it is truly vital that a succession plan is completed and that the innovation that is the heart of Apple's business continues to be embraced.

SAG and AFTRA Approve Contracts

The writers' strike a few years ago still propels bad memories. With many on the street and tons of productions stopped, the only group that seemed to do well were the networks that still had old content to distribute. SAG couldn't get their act together and the WGA learned the hard way that their tactics only cost their members money. I doubt any of them have truly recouped their losses.

So it is a welcome sight to hear read that SAG and AFTRA have quietly negotiated and approved a contract extension. "The new contracts boost base pay rates and contributions to benefit plans. Union negotiators had reached the tentative deal Nov. 7 and recommended it to the membership, with that deal coming only six weeks after talks with the Association of Motion Picture and Television Producers began on Sept. 27." let us hope that the WGA have as easy a time when their renewal is being negotiated. I would hate to see a repeat of history.

Comcast-NBC Deal Closing In

Lots of chatter as 2010 has passed and both sides are eager to close this deal. So what are the stumbling points? "At issue is a condition proposed by the Federal Communications Commission that would require Comcast to offer NBC programming to any online video service that has reached a similar deal for content from at least one of NBC's competitors, such as Walt Disney Co. or News Corp." Some wonder that the conditions imposed could raise additional problems.

Regardless, it seems the cat is so far out of the bag that there is nothing else left to do but approve this merger. Is it good for business, perhaps. Is it good for the consumer? The one thing I can tell you, that no matter what the conditions are, companies and consumers alike often find work arounds. Can't get the answer you want, work around. Build a better mousetrap. Hence cord cutting and IPTV. Napster and file sharing. With technological innovation in the entertainment industry happening at a lightning fast pace, a merger, even of this size, won't stop the consumer from getting the content they desire.

So the question of this merger is simply when and no longer if.

Buy or Wait - iPhone On Verizon Network

What to do, what to do. Buy or wait for the next generation of iPhones for the Verizon Network. Is the 3G network good enough or is it better to wait for the 4G version. And for those that have been waiting, what's another 6 months or year. Frankly these and other questions are being asked as Verizon gets set to presell it's iPhone. And with a 2 year subscription, buying early could satisfy the immediate craving for the device and 2 years will go awfully quick. By then, another cool generation will be released and the natural upgrade process occurs. And like buying a PC, they become obsolete so quickly, no matter when you purchase.

Verizon may also be dropping its discount phone purchase program. With demand so strong, why even consider discounting. So perhaps the best advice is take the plunge. No matter what you do, owning the device is better than continuing to wait to join the party.

MySpace - Sell Or Close Shop

Wave the white flag! A social network leader has risen and the competitor is about to be vanquished. So was the case for Bebo and now for MySpace. "MySpace is cutting 47 percent of its staff amid reports that owner News Corp. is preparing the social-networking website for a possible sale." Can this under performer be resurrected or is it really just the beginning of the end. Without a buyer, it is likely that the business will simply close down. For Fox, owners of MySpace, its purchase a few years ago, never deliver the intended results. Was it poor management, and inability to see the future, or just a better opponent in Facebook? Whatever the case, a sad ending to a once promising website.

Cable Distribution v, Content - Streaming Media

Consumers want their content where they want, what they want, and when they want, whether it is tethered to a wire or not. And they want to pay once for this access. Cable distributors hear that plea and recognize that building an inclusive model with such access keeps subscribers paying, want to proceed with streaming media. Content owners have other ideas.

Content owners like the idea of being paid multiple times for their content and selling to multiple distribution platforms is a revenue winner. That also enables cable customers to cut the cord and switch from one platform to another. Hence the friction between content and distribution.

Now Comcast is announcing that they want to stream the cable content they license to untethered devices like the Apple iPad. "While the initial barrage consisted of warning shots––programmers dispatched carefully worded reminders that such distribution pathways are not authorized by existing affiliate agreements, but stopped short of threatening immediate legal action––many observers believe that this will prove to be the first exchange in yet another long and bloody war between rights holders and operators." Is it time for a response from the FCC?

A merger of content and distribution, ie Comcast and NBCU, would facilitate this step for cable, although other distribution competitors could be shut out of the content. Should the FCC rule that content purchased by a cable operator can be streamed by that operator for the benefit of their customers. Isn't this exactly what Slingbox offers and doesn't Dish integrate Slingbox into their platform's converter box.

To be fair, some content owners have already enabled access. On Demand through authorized boxes can also be accessed. This slippery slope is not flattening and this issue of TV Everywhere will not go away. Other content owners will have to find a comfortable position. Hopefully, an eyeball gained through easier availability will still positively impact revenues. Higher subscriptions and better advertising rates. The future is mobility and Content v Distribution will have to find a common ground.

Verizon To Announce It’s Getting The iPhone; New Edition Unlikely

True, CES was last week, but why spoil an expensive conference with an anticipated announcement. Why not wait to deliver the poorest secret in telecom history, that the iPhone will be finally made available to Verizon customers. Not in 4g with their LTE network, but as version one, in a 3G model. The article speculates that a 4G announcement is possible. The announcement is scheduled for tomorrow in New York. "But given Apple’s penchant to launch new products on its own turf in California, it’s unlikely that it will be the latter." Still better late then never.