Fox, Discovery Nets Back On Time Warner Cable's iPad App

Fox, Discovery Nets Back On Time Warner Cable's iPad App: "Viacom is the only programmer still withholding its programming from Time War..."

They're Back!!!! The networks of Fox and Discovery have been returned to the Time Warner Cable App on the iPad. Was payment made; agreements to launch new channels for the streaming digital rights? No comments yet but an awfully quick turnaround.

Comcast Feels The Need For Speed

In Top Gun, one of the classic films of the 1980s, a memorable line continues to be recited today, "I feel the need — the need for speed!". So true in fact as Comcast has raised the speed limit on broadband download. "Comcast's Extreme 105 service, one of the fastest residential broadband offerings in the U.S. with download speeds of up to 105 Megabits per second, is now available to 40 million households or approximately 80% of the operator's footprint." And $105/month is the price when bundled with other services. For over the top consumers, that speed means that movies can download in minutes rather than hours. But the cost savings of cord cutting or cord shaving gets lost when you purchase this "extreme" level of service.

And perhaps that is the point. For cable companies like Comcast, Cablevision, and others that are now concerned about lost revenue from over the top streaming services like Hulu and Netflix, more bandwidth can provide the revenue lost from the cable subscription platform. And likely done with a greater profit margin to boot. As long as consumers need wired broadband to receive content, cable and telco companies will maintain a leadership position.

Still, the concern remains that cable could lose too much revenue from cord cutting and especially cord shaving practices. Customers may not flock to higher speeds and remain comfortable with their current bandwidth speeds. And cable companies should still be concerned that alternative wireless platforms could become sufficient enough to replace wired homes. For cable operators, it is a good first step, and definitely not their last.

Is Twitter In Trouble

We probably know someone that uses Twitter. You might have a Twitter account. I link my blog at @amhunn. And I enjoy reading some other tweets. But I find that some abuse it and tweet too often. So much so that anything of real value gets drowned out by the inane volume of meaningless announcements. And so as we get smarter with Twitter, the fad elements fade and its real value hopefully shines through. Hence the issues facing Twitter. "Just two years ago Twitter was the hottest thing on the web. But in the past year U.S. traffic at Twitter.com, the site users visit to read and broadcast 140-character messages, has leveled off. Nearly half the people who have Twitter accounts are no longer active on the network, according to an ExactTarget report from January 2011."

Can Twitter adapt to a changing landscape and can it find a sustaining revenue stream to support it? I for one would not use Twitter if it required a subscription fee. And if its ads became too prominent, it may also turn off more users. Serious challenges face the company to freshen up its space and turn on more revenue making opportunities.

"Yet even as management tackles its executive and product problems, a major challenge looms: Twitter needs to figure out what it wants to be when it grows up." According to the linked Fortune article, Twitter is actively working on its next move. In the meantime, other social networks are popping up to more quickly take its share of revenue.

To be fair, Twitter offers a real immediacy to news and events and as a conduit of information, has changed the media landscape. But can they generate enough real dollars to continue or will they need to merge with another more established player, like Google or Facebook, to remain viable? Until they prove their independence, a merger seems more than likely, it seems imminent.

Webby Nominations Announced

Another Webby On The Mantle. Hey a 5 word acceptance speech, typical for winners of the annual Webby Award. "The list included Justin Bieber, Angry Birds, Arcade Fire, Foursquare and the Old Spice guy. Presented by The International Academy of Digital Arts and Sciences, the awards will be handed out on May 3." It is time to vote!

Nominations are across numerous categories, not just viral videos. There are awards for websites, interactive advertising, and even mobile. The award recognizes excellence in digital media and legitimizes online video. A worry if viewers ignore their cable subscription and prefer more online content.

So check out some very inventive campaigns, great websites, and wonderful videos. And when it's time for the winners to be announced, enjoy their 5 word acceptance speeches. Its a Truly Remarkable Pleasure - - 5 words!

Cheaper Kindle With Ads...So What

Are you a little price conscious. Wanted a Kindle by Amazon, but waiting for a lower price point. If you don't mind ads with your e-books, your wish has been granted. "Amazon will sell its e-book reader at the lower price by showing ads as screen savers and at the bottom of the home screen, and by selling special offers, similar to Groupon and other daily deal sites." Sounds like a great deal until you hear that the cost savings is only $25.

Considering that your Kindle should last at least 3 years, a $25 savings doesn't seem worth the aggravation of putting up with advertising. "Amazon will show ads from brands like Buick, Procter & Gamble and Visa. The ads will also show up on the home screen, but they will not appear inside e-books." Considering that you get an ad every time you turn it on, the advertising revenue must surely pay for the cost of the Kindle. But $25 less seems hardly worth it. Couldn't Amazon have knocked the price point to well under $100, perhaps $50. I believe at that price point, consumers would flock to grab a Kindle and would further position Amazon the leader in the e-book space. And at that low a price point, consumers would more readily accept the ads.

But at this current discount, the price point is $114, and I don't believe that this particular marketing move will gain much traction. Will some consumers see a $25 savings for ads worth it, sure; but I am doubtful that it will be considered a hit. At the same time, it will be worth watching to see what else comes out from Amazon. They speculate a competing touch screen with the Android OS. Perhaps this ad move is short term till that formal announcement is made.

New And Improved Business Week Adding iPad App

It seems a change of ownership has helped Business Week to survive and blossom in a changing media landscape. On the print side, subscription remains stable and ad pages are up. The magazine reads better and provides a rich variety of content. And recognizing the power of the tablet, Business Week is launching it's iPad App as a free added value for print subscribers, "while non-subs will be charged $2.99 a month for access—a pretty good deal, considering a single newsstand issue goes for $4.99." Notice that the app is purchased by the month, 4 issues, as opposed to singular issues or even an annual subscription.

"Bloomberg’s two main goals are to preserve and expand the print readership, but also appeal to newer, younger readers who prefer to do their reading digitally." As a transition is occurring with consumers from wholly print to wholly digital consumption, this strategy of packaging both plans together builds value, comfort with both platforms, credibility in the digital space, and hopefully increased subscriber loyalty. That the application doesn't simply regurgitate the magazine but utilizes additional content to make it a complementary experience, should surely work to build a larger fan base. That Business Week is embracing the tablet app space shows they are positioning for the future and no longer stuck in the past.

QR Codes Appearing In More Places

Open up The New York Times, or any other newspaper, and look at the ads. If your seeing more and more QR codes, you are not mistake. Print advertising is becoming more and more interactive and the smartphone the conduit to this information. And as consumers we seem to be getting more comfortable keeping our smartphones at the ready, whether to snap a photo, record a video, or click a QR code. Fad or future may be the question, but for now it is the it thing.

So to hear that stores are also using QR codes on the shelves to make their products more interesting should come as no surprise. "According to survey results recently published by Arc Worldwide, 50% of consumers are using their mobile devices while shopping. In response to the increase in smartphone usage and QR code awareness, Macy's, Home Depot, Best Buy and other large retailers have integrated QR codes into retail displays." While I have yet to see these codes appear in any of these stores, I will be on the look out. While TV screens have popped out in these retailers, their loop of programming may quickly be ignored. A QR code linking to a website or video can talk more directly to the consumer about a particular product or service of interest.

If you haven't downloaded a QR code App, the timing is right to start. You just might find yourself reading your morning newspaper with a smartphone in one hand and a coffee in the other; or walking down the aisle with your shopping list and phone out at the ready. But please, don't QR and Drive. :)

Cable Operator and Programmer Fight Over Streaming Rights

The legal fight is on and I suspect that more will be on there way. For the first round, it is between Time Warner Cable and Viacom, and it puts into question what rights are implied in their legal agreement. Time Warner believes that the rights to exhibit in the home extend to streaming devices; Viacom, home for MTV, Nick, Comedy Central and others, believes those are additional rights with additional fees required. "Viacom says the rights are technology and device specific to be negotiated with each distributor and that it 'has always negotiated rights to distribute our content based on specific technologies and devices to ensure that the unique business issues, such as security, product quality and audience measurement, are properly addressed.'” And while Viacom networks were removed from the TWC App, the desire is to have as much robust content available as possible.

And these streaming rights truly represent a slippery slope for operator and programmer alike. While it is nice to extend live and on demand viewing on streaming devices INSIDE the home, the real effort is to enable these same streaming devices to authenticate and receive the full channel line OUTSIDE the home. Hence, the line in the sand by Viacom.

Add to that the fact that they are receiving payment by other over the top distribution platforms, like Hulu and Netflix, demonstrates to the programmers that another revenue distribution stream exists. Giving cable operators this stream for free would seem to hurt that business model. The cable operator's concern is that customers will forsake their cable subscription for over the top. They argue that programmers may gain streaming media revenue but lose out on their cable subscription license fee. But programmers are not seeing it as a zero sum game and believe that it will indeed bring strong revenue growth.

So the fight for streaming rights will be headed to court. Most likely a settlement will be struck and this argument will continue to be negotiated between operator and programmer. Ultimately programmers want to be paid for each platform and cable operators may have to pay and also reduce their profit margin to retain their customer base.

You Tube Offers Another Reason to Shaving or Cutting The Cord

You Tube's latest announcement, a better organization of its content into channels and a push toward more original programming, adds another reason for the consumer to downgrade (shave) or cut their cable subscription. And You Tube believes it can legitimately compete against cable and satellite for viewers. "The site is planning a series of changes to its home page to highlight sets of 'channels' around topics such as arts and sports. About 20 or so of those channels will feature several hours of professionally produced original programming a week, some of these people said. Additional channels would be assembled from content already on the site." Last month, You Tube acquired NextNewNetworks as one step to acquiring original content. Along with Hulu, Netflix, Apple, Amazon, and others, the web is becoming a serious alternative to cable viewership.

In this CNET article, cord cutting remains hard for most households to accomplish. "Between 2008 and 2009 alone, the firm said that 550,000 households cut the cord. Last year, it estimates 1 million households did the same." And those that do sometimes find themselves missing some of the programming unavailable yet on streaming platforms and come back to cable. Still the cable operators are today more affected then telco or satellite as their basic subs are leaving to go to the lower priced alternatives suc as FIOS, U-Verse, Dish, and Direct. Dish may already feel concerned with eventual cord cutting and has just bought out Blockbuster as a potential move to enter the streaming space.

The programmers seem pleased with this new stream and I suspect they don't see these new deals as revenue neutral. Liongate's recent agreement to sell Mad Men syndication to Netflix assumes that this new distribution platform won't hurt its cable and on demand deals. It is why Networks aren't excited about giving away streaming rights to cable for mobile devices when others are willing to pay for those streaming rights. And since cord cutting has not hurt the industry yet, programmers are enjoying the revenue from another revenue stream.

As for You Tube, their mission is now to keep their viewers engaged for longer periods of time. While they enjoy attracting a huge number of uniques, short form video encourages viewers to leave and not necessarily watch more. It is the same strategy some cable networks had when they first introduced their channels. Count TV Guide, E!, Comedy, MTV and others who moved their programming to 30 minutes and longer to keep eyeballs longer, grow ratings, and capture higher ad revenue. Where short form programming was once ideal on the web, viewers have not gotten more accustomed to viewing TV shows and movies on computers, tablets, and smartphones. And that is what is presenting serious competition to the cable platform.