Content Stored In The Cloud

We own multiple devices in the home: multiple computers, iPods, and more. And pretty soon, everyone in the household will have an iPad. At the same time, we seek ways to share and hold our content. And while it may not be necessary to have access to the content at all times, we want to make sure it is there and safe when we do want it. So we buy back up digital storage or copy content onto cd-roms. And what we get is multiple copies of the same content filling up tons of storage. We have decentralized storage across each device in each home; now is the time to start centralizing and the solution lies in the cloud.

My first introduction to this concept was when Cablevision announced that it wanted to offer a N-DVR with content saved not on the device but at the central network. For Cablevision, it was an uphill, legal fight. Since then the need for more centralized storage has been turned into the latest buzz word, cloud computing. As defined in Wikipedia, "Cloud computing describes computation, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services."

So Apple is now trying to do the same thing with iTunes. "A deal would provide iTunes customers with a permanent backup of music purchases if the originals are damaged or lost, said the people. The service also would allow downloads to iPad, iPod and iPhone devices linked to the same iTunes account, they said. The move would be a step closer to universal access to content centrally stored on the Internet." Simply, user-friendly, and convenient. Download what you need immediately and store what you want to own and hold. Hopefully Apple will secure agreements from content companies to distribute and store in this manner.

And it seems to me that convenience spells more revenue. The safety of back-up combined with the need to continue to purchase and own. We, as human beings, remain pack rats; it's just nice to know that we don't have to clutter our own drives with digital content.

Banner Year For National and Local Cable Ad Sales

The economy is picking up and businesses are advertising once again. Despite threats of cord cutting and DVR, cable ad sales revenue continues to grow, reaching $27.1 billion dollars in 2010. In fact the CAB calls it the best year ever.

And while national cable ad sales grew near 10%, more impressively, local cable ad sales increased by 20% last year. "Original programming, said CAB, helped attract more dollars across categories to the national cable networks. They also rang up gains with non-linear ads." With interactive advertising and better segmentation technology, along with on demand advertising, cable advertising should continue to advance this year, too.

Of course, the economy must continue to respond. The health of key industries, including the auto market, are necessary. While last year had tons of political advertising, this year must rely on other sectors to pick up the inventory. As employment begins to rebound and consumers are purchasing more items, the economy is rising. And it seems that for 2011, cable advertising has a lot of positive momentum supporting its growth.

Apple iPad 2 Released

Engadget has some great information on the iPad 2 from the event today. And with Steve Jobs in attendance, it made for a bigger impression. Thinner, faster, dual camera.
And I have to say, I want one.

An App Store On Every Block

In real towns, every block seems to be filled with banks, but in the online world, the neighborhood is adding more App Stores. Of course the leader is Apple and it's iTunes and iPhone App library. And Google is making a strong run with it's Android App Store. The latest to enter the fray is Amazon. "The retailer is aiming to tap rising demand for games and entertainment that can be downloaded on mobile phones. That market, which is being pursued by more than 30 app stores, may rise to $40 billion by 2014 from $14.3 billion last year, according to Booz & Co. Competitors are trying to grab business from Google’s own Android Market, which has rankled some users for being cumbersome."

And as more devices enter the market, including the introduction of the iPad 2, they bring in more users and of course more demand for more apps. And while the cost per app may be a few pennies, the volume of sales is enormous. While Apple has the exclusivity, Android does not. And so Amazon and Google will be fighting over a smaller market share while Apple continues to enjoy all the growth. Still the market is growing and competition over the expectation of growing revenues just might bring in even more players.

Hulu Ad Revenue To Double in 2011

Forget about their subscription revenue for a moment, Hulu is on pace to double its ad revenue this year. I guess the digital ad business is no longer pennies or nickels but starting to act like real dollars. "(CEO Jason) Kilar did not address some of the recent controversy surrounding Hulu, including a possible shift toward a pure subscription model, or a widely discussed blog post he produced a few weeks ago that seemed to take some shots at several of the company’s top TV network partners and their business models." He maintains excitement in Hulu's continued growth with subscription and other forms of consumer revenue.

It seems that not only are views rising, but so are the number of unique advertisers and content partners to the Hulu formula. The more to watch, the more people watching, the more desirable for businesses to advertise to these eyeballs. And so far, it seems that Hulu is not hurting the other viewing platforms...yet. But their success can only cause some concern that it may lead viewers to cut the cord with the cable operator.

Did You Multi-Screen The Oscars?

Big events, like the Oscars always seem to ask, how well did it do in the ratings compared to other years. And it seems this year, the social network element of the night seemed to invite more of a multi-screen presence. heck, even the co-host tweeted. So did the audience take advantage of the multi platform offerings?

"The Oscar.com website lured subscribers with 'exclusive cameras and content' at a price of $4.99. For 99 cents, customers could download an application for Apple's iPad, iPhone or iPod Touch that essentially offered the same package of privileged backstage views supplied by multiple cameras and supplemental commentary." I did not take advantage of this content. We dvr and watch with stops and starts. ANd while we were never more than a few minutes behind, we didn't fear missing a moment although there were hardly any amazing moments to miss.

What my wife and I did do was read our twitter feeds. Heck some of the comments (maybe most) were from these feeds and not the tube. It was the water cooler moment sharing what they liked or didn't like about the hosts, the presenters, and even the choices of winners. "The academy reported — via Twitter, naturally — that 1,600 Oscar-related tweets were being sent every minute at one point in the evening." Count us in that number.

And while the show was pretty dull, the other platforms did make the viewing more enjoyable for us. Did it affect the Nielsen ratings for the broadcast; we will soon find out. I suspect more people did watch simply to be a part of the conversation.

Cable Subs Not Being Lured to Dish Network

While cable has been losing subs and Direct TV recently announced that they added almost 300,000 customers in the last quarter, you would have expected that DIsh would announce similar growth. That is not the case. "The number of subscribers fell by 156,000 in the fourth quarter, Dish’s worst quarterly performance ever." So hard to believe, especially as Dish has positioned themselves in the marketplace as appealing to the budget conscious consumer. CEO Charlie "Ergen blamed the subscriber losses on a combination of a sluggish economy, a blackout of some News Corp. channels, heightened competition and poor execution by the company’s management." Can Dish turn it around. With what seems like an opportunity in the market, the telcos and Direct TV have found the winning formula.

Verizon FIOS, Your "Local" Cable Operator

Verizon Fios has started running television and radio advertising in the NYC market touting itself as your local cable operator. The spots feature installers and support staff talking about being your neighbors and in your community. A terrific ad positioning Verizon FIOS as more than just a business, but also part of the neighborhood.

The most amazing part about this new ad campaign is that it borrows from the cable operator playbook from a decade ago. Back then cable pushed its support of local community activities including parades, its local offices, and especially local management and staff ready to serve. It positioned itself against satellite as local and direct, not nationally based like satellite. It pushed this same advantage when the "phone" company became competition, first with its digital phone service, and then when FIOS was formed.

As the telcos became more competitive in the digital cable space, the cable operators responded by becoming less local. Through consolidation of offices, management responsibilities went from local to divisional to regional. The many local offices and management teams closed to be replaced by multi-state regional offices. Cable consciously left the local space to concentrate on economies of scale and cost efficiencies. And with that change, cable operators lost their market positioning as your "local" company.

With the latest Verizon FIOS ads, it is now the telcos positioning themselves as your "local" cable operator. How ironic for the cable companies to lose this competitive edge and so apparent that the telcos have become the aggressors in the market fight. Do consumers truly believe that either FIOS or cable are local; doubtful, but if you say it enough times, a percentage of people slowly begin to believe it is true.

TV Is A Multi-Screen Experience

TV watching is not only for one screen anymore. We blog about it, twitter opinions, and share experiences on Facebook. And when it concerns big events, like the Super Bowl and Academy Awards, we want to be as immersed in it as possible. "The most promising, and interesting, of the list is Oscar Backstage Pass. The app will work on iPhones and iPod Touches (as long as you have a Wi-Fi connection), but those with iPads will have a much better time with it.... ABC plans to provide users with options for eight camera angles not shown to network viewers. So if ABC’s on-air commentators are interviewing someone you care little for, you can watch elsewhere. The app’s live video feed continues during commercials." Viewer controlled experiences that change our behavior from passive to active. And that may mean a rise in ratings too.

And if you seek more interaction, there are other applications that will allow you to vote for your winners, the fashions, trivia, and other contents. It seems we are now no longer satisfied with just a sitback only experience. We want more and we want our opinion heard. These apps may be more prominent among the big night TV events, but it is heading across all TV, from sports to sitcoms. We seek more interaction and control to enjoy the show on our terms. And it just may help the content that we watch.