As the latest Census revealed, the rapid growth in the Hispanic population is quickly being felt. In media, the launch of more Hispanic cable networks including Nat Geo Mundo and others are to take advantage in this large population as Hispanic TV isn't niche programming anymore. "Univision last week attracted more prime-time viewers than NBC, the second time in four weeks that the Spanish-language network edged out one of the Big Four." And while Univision is not consistently beating out NBC and NBC has had some programming issues of late (Jay Leno Show), it shouldn't take away the direction that viewership and ratings are going. From the big three to four when Fox joined and now the five with Univision taking a seat at the table.
It certainly isn't lost on NBC the need to embrace the Hispanic population. In fact, "separately on Tuesday, NBC corporate parent NBCUniversal said it was launching a sales initiative called 'Hispanics at NBCU.'" No doubt other networks, wether publicly or not, will embrace similar initiatives. But it shouldn't extend as a hiring initiative. More importantly, it means more multicultural faces on TV shows too.
Wednesday, April 6, 2011
Tuesday, April 5, 2011
Hulu Plus Could Cause More Cord Shaving
As we discuss the cable operator's concern with downgrades and other cord shaving tactics, let's not forget the success that Hulu is having. Hard to believe, but its subscription service is attracting consumers and is poised to exceed one million subscribers this year. And with a two tier revenue stream of subscriber fees and advertising, Hulu is turning those digital pennies into digital dollars quicker than anyone might have predicted. "Mr. Kilar (Hulu's CEO) also reiterated that the company is on track to approach $500 million in revenue in 2011, up from $263 million in 2010. Its first-quarter revenue grew 90% from 2010."
The warning signs are there for the cable operators to act and to act loudly. What starts out as a small leak in the dam could quickly become a serious problem as more consumers switch to online only for their video consumption. Cable operators must do more to establish themselves as the communication aggregator in the home. Bring on mobility; develop a video security business; build out a national WIFI consortium with the other cable operators; become the indispensable link to the home and its inhabitants. Otherwise, consumers will keep shaving and cutting their service.
The warning signs are there for the cable operators to act and to act loudly. What starts out as a small leak in the dam could quickly become a serious problem as more consumers switch to online only for their video consumption. Cable operators must do more to establish themselves as the communication aggregator in the home. Bring on mobility; develop a video security business; build out a national WIFI consortium with the other cable operators; become the indispensable link to the home and its inhabitants. Otherwise, consumers will keep shaving and cutting their service.
Consumer Reports Supports Cord Shaving
In this May's issue of Consumer Reports, the cable operators are ranked for service with FIOS and AT&T U-Verse coming out on top. In addition, the magazine reports a growing trend toward cord cutting and cord shaving. "While only 1.4% of consumers have cut the cord in the last two years, 7% of current pay-television subscribers are considering canceling their service, according to a Consumer Reports survey."
In fact, Consumer Reports provides suggestions to help consumers lower their monthly cable bills, "including dropping premium channels such as HBO and Showtime; canceling TV service in favor of free, over-to-air broadcast supplemented by a service such as Netflix; and downgrading to a lower-speed broadband tier."
It is precisely this trend that is pushing the cable operators to build mobile apps to augment their delivery of programming and extend the reach of their platform. It is why programmers who fight these mobile apps may find their revenues from license fees begin to drop as consumers shave services to lower their bills. Unless programmers are getting the same license fee from these alternate distribution platforms, they may be in fact getting Netflix pennies for cable dollars.
For now, the premium networks have a far greater chance to be hurt by Netflix and Amazon then the basic networks. For cable subscriptions, consumers are switching providers in their neighborhoods to the lower cost service. So while cable basic subscription drops, telco and satellite subscription is still rising. But as the trend to downgrade accelerates, even those providers will eventually see drops in their base. Adding value to the cable subscription with access to the linear line-up, DVR, and on demand channels remotely can help slow down or perhaps even reverse cord cutting and cord shaving.
In fact, Consumer Reports provides suggestions to help consumers lower their monthly cable bills, "including dropping premium channels such as HBO and Showtime; canceling TV service in favor of free, over-to-air broadcast supplemented by a service such as Netflix; and downgrading to a lower-speed broadband tier."
It is precisely this trend that is pushing the cable operators to build mobile apps to augment their delivery of programming and extend the reach of their platform. It is why programmers who fight these mobile apps may find their revenues from license fees begin to drop as consumers shave services to lower their bills. Unless programmers are getting the same license fee from these alternate distribution platforms, they may be in fact getting Netflix pennies for cable dollars.
For now, the premium networks have a far greater chance to be hurt by Netflix and Amazon then the basic networks. For cable subscriptions, consumers are switching providers in their neighborhoods to the lower cost service. So while cable basic subscription drops, telco and satellite subscription is still rising. But as the trend to downgrade accelerates, even those providers will eventually see drops in their base. Adding value to the cable subscription with access to the linear line-up, DVR, and on demand channels remotely can help slow down or perhaps even reverse cord cutting and cord shaving.
Monday, April 4, 2011
YES Says Cablevision's iPad App Is Unauthorized
Time Warner Cable wasn't the only cable operator to get backlash from their programming partners... YES Says Cablevision's iPad App Is Unauthorized: "YES Network, the regional sports network home of the New York Yankees and N..."
Cablevision Launches Its iPad App
While Time Warner Cable could only go out with a few dozen linear channels, Cablevision is launching its App with 300 live channels. And like TWC, Cablevision believes it has the rights to stream these channels inside the home. "The company insists the streaming option, which requires WiFi but not internet access, is covered by existing contracts that allow it to transmit to screens within the home. It also says it meets advertising standards." Technically, I would love to learn more how Cablevision's methods differentiate from TWC. I would also believe that the Cablevision legal team have also poured over their agreements to confirm their rights. And Cablevision doesn't tend to back off from a legal challenge.
From the article, the technical elements are both physical and customer requirements. "The tech requirements include Optimum digital cable, at least one digital cable box, an Optimum cable modem and WiFi. But subscribers don’t have to get broadband; Cablevision will supply an internet-blocked modem that works with the cable network and the WiFi network. The terms of service spell out several conditions for use, including the need to password protect the home network for security and a ban on using Apple (NSDQ: AAPL) Airplay to transfer audio or video viewed through the app to any other device inside the home." It seems Cablevision has taken additional steps to assure that more channels are accessible. But if I was a customer, I would want to play the app outside my home or at least in the backyard. Customers may agree to the terms but that doesn't mean they will heed them.
For Time Warner Cable, the next steps now include advertising. I saw the full page ad in The New York Times this morning. Will this PR effort help; I doubt it. With such animosity between Programmer and Operator, the only thing that matters are dollars.
From the article, the technical elements are both physical and customer requirements. "The tech requirements include Optimum digital cable, at least one digital cable box, an Optimum cable modem and WiFi. But subscribers don’t have to get broadband; Cablevision will supply an internet-blocked modem that works with the cable network and the WiFi network. The terms of service spell out several conditions for use, including the need to password protect the home network for security and a ban on using Apple (NSDQ: AAPL) Airplay to transfer audio or video viewed through the app to any other device inside the home." It seems Cablevision has taken additional steps to assure that more channels are accessible. But if I was a customer, I would want to play the app outside my home or at least in the backyard. Customers may agree to the terms but that doesn't mean they will heed them.
For Time Warner Cable, the next steps now include advertising. I saw the full page ad in The New York Times this morning. Will this PR effort help; I doubt it. With such animosity between Programmer and Operator, the only thing that matters are dollars.
Friday, April 1, 2011
TWC Adds 17 New Channels To iPad App Overnight
TWC Adds 17 New Channels To iPad App Overnight: "The channel count on Time Warner Cable's iPad app is now up to 37 national ..."
Networks Pulled Off Time Warner Cable App
It seems the TWC lawyers are rethinking their position on their current programmer agreements in enabling streaming of channels on their newest App. "Time Warner Cable pulled 12 networks from Discovery Communications, Fox Cable Networks and Viacom off its iPad streaming-video application on Thursday". And though they claim that the agreements offer TWC these streaming rights, better to work together than bicker.
At the end of the day, what TWC really wants is full live streaming rights of channels that they can offer on a tablet or smartphone to authenticated customers; not strictly inside the confines of the home, but everywhere and anywhere. Will consumers pay dollars for this added feature or will it be demanded as added value to their already high cable bills? Programmers expect higher license fees for new distribution platforms while operators are trying to embrace the new technology to retain and perhaps even grow the subscription base. Without these rights, the threat of cord shaving or worse, cord cutting, remains present.
It may also be in the Networks best interest to work out an extension of these rights. Unless license fee deals are better with streaming media providers, a lost cable sub's revenue will not be matched or exceeded with fees from Netflix or others. And with Hulu and Netflix gaining ground, cable operators and programmers should work together. But be careful, if Networks are getting higher license fees from new platforms, then they will not be compelled to give these streaming rights away to cable operators. And higher fees will only translate in higher cable bills.
At the end of the day, what TWC really wants is full live streaming rights of channels that they can offer on a tablet or smartphone to authenticated customers; not strictly inside the confines of the home, but everywhere and anywhere. Will consumers pay dollars for this added feature or will it be demanded as added value to their already high cable bills? Programmers expect higher license fees for new distribution platforms while operators are trying to embrace the new technology to retain and perhaps even grow the subscription base. Without these rights, the threat of cord shaving or worse, cord cutting, remains present.
It may also be in the Networks best interest to work out an extension of these rights. Unless license fee deals are better with streaming media providers, a lost cable sub's revenue will not be matched or exceeded with fees from Netflix or others. And with Hulu and Netflix gaining ground, cable operators and programmers should work together. But be careful, if Networks are getting higher license fees from new platforms, then they will not be compelled to give these streaming rights away to cable operators. And higher fees will only translate in higher cable bills.
Thursday, March 31, 2011
Fox and Scripps Want Off The Time Warner Cable App
Fox Networks has sent its official letter to TWC demanding that it's channels be removed from the App. "News Corp. joins Scripps Networks Interactive Inc. (SNI) in challenging Time Warner Cable over transmission of live TV signals via an application on Apple Inc.’s iPad without consent. Time Warner Cable customers with Internet service are able to use the app to watch programming within their homes." And at the end of the day, it is all about incremental dollars for rights to stream its content.
I would certainly guess that the Time Warner Cable lawyers pored over each Networks agreements determining which ones gave them the loophole to carry its channel in such a manner. From that analysis, TWC picked its 32 cable channels to post on its App. And as these agreements may not have even considered this kind of distribution path, it seems likely that TWC believes that legally they have the right to offer in this manner.
How popular is this App? How many people have downloaded it and are using it? The fact that usage today is limited to inside the home, it may not truly satisfy the needs of the consumer. For a few dollars more, they could attach a Slingbox and get ALL their LIVE channels, plus DVR, remotely on their smartphone and iPad. And last I heard, Fox and Scripps haven't sued Slingbox or gotten more dollars from them.
I would certainly guess that the Time Warner Cable lawyers pored over each Networks agreements determining which ones gave them the loophole to carry its channel in such a manner. From that analysis, TWC picked its 32 cable channels to post on its App. And as these agreements may not have even considered this kind of distribution path, it seems likely that TWC believes that legally they have the right to offer in this manner.
How popular is this App? How many people have downloaded it and are using it? The fact that usage today is limited to inside the home, it may not truly satisfy the needs of the consumer. For a few dollars more, they could attach a Slingbox and get ALL their LIVE channels, plus DVR, remotely on their smartphone and iPad. And last I heard, Fox and Scripps haven't sued Slingbox or gotten more dollars from them.
Wednesday, March 30, 2011
Should Sirius Worry About Amazon Cloud Drive Service
Amazon may have just beat Apple to the punch with it's Cloud Drive Storage Service, though Apple has been probably not too far behind. It seems that if we are all saving the same songs, video,and other data, wouldn't their be economies of scale to centralize this content and avoid the waste of replication. It turns our devices into receivers and requires constant access to the web, but it makes a ton of sense.
Should Apple be nervous; probably not. Consumers still like to own and the cost to access may be high. Sirius has little to worry about, too. "What does Cloud Drive mean to Sirius XM? Initially very little, but as consumers adopt the service, and combine it with smart phones connected to the dashboard, people will have access to a wealth of personalized playlists that they may begin to listen to instead of Sirius XM." Sirius has already had to contend with iPods and have survived quite well. Consumers don't want to purchase every song they want to listen to; Sirius and terrestrial radio allow listeners to enjoy without incremental purchase. And Sirius brings exclusive content that Amazon can not offer. "Cloud Drive does not offer live content, nor does it provide the depth of news, talk, and sports that Sirius XM does."
Cloud Drive Service will be the buzzword of this decade. DVR content should soon find its way in the clouds as opposed to individual set top boxes. And consumers will get more and more comfortable saving their personal pictures and data in the clouds instead of a hard drive. In our quest for easier mobility, remote access means constant availability whenever and wherever we are. And that is what makes Cloud Drive Service a winner.
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