The NYT reports that DVRs are saving TV shows by demonstrating that the audiences are watching. "Instead the playback device is offering some shows a lifeline — so much so that network programmers now factor in ratings a full week after a show’s scheduled appearance." And in today's WSJ, Ad Revenues are improving. "For the second consecutive year, marketers are poised to spend more money in advance on commercials for the coming TV season than they did a year earlier, driven in part by unusually high prices for last-minute commercials this spring, according to both buyers and sellers of TV advertising." Put the two articles together, and DVRs are bringing in larger audiences and advertisers are paying for them. Certainly opposite from the thought that DVRs would hurt the TV ad model.
Truth be told, households still watch ads, even on DVRs. Especially when the content of the ads break through the clutter to resonate with the audience watching. Catch them quickly with a hook and hands don't reach for the remote to fast forward through them. In addition, Tivo is working with advertisers to provide better data to improve ad performance. With its latest legal victory, Tivo has also been in the news. Should more cable companies consider including Tivo in their own DVR, viewers would actually appreciate a better search as well as viewing experience. DVRs are in the news and it seems TV has nothing to fear.
Monday, April 25, 2011
Friday, April 22, 2011
Apple In The Clouds
Apple continues to prove itself a leader, not resting on its current success, and quick to adapt to a changing entertainment landscape. As consumers seek a purchase once, play everywhere (POPE) model, businesses have been pushing to centralize content to achieve a successful model. And while Google and others have announced such intentions, Apple seems nimble enough to actually move ahead of them. "Apple Inc has completed work on an online music storage service and is set to launch it ahead of Google Inc, whose own music efforts have stalled, according to several people familiar with both companies' plans."
Obviously the challenge of centralized content is that when the system is down, there is no access. Of course the same holds true when one's own iPod stops working, too. The question is, which model is sturdier and likely to withstand constant use. A centralized approach has perhaps an easier ability to backup and protect it's content and to have secondary means to keep the systems working. "Apple, Amazon and Google are battling for control of new digital media platforms through which everyday users will access their music and videos." It also pushes hard though the WIFI and cellular systems that connect content to device. Apple and others have no control on that piece of the communication puzzle.
But who knows; perhaps, that is the next step in the Apple world. To own a communication company that makes those connections. These vertical businesses are happening in cable. Comcast owning NBC Universal being the latest example. What is stopping Apple from doing the same.
Obviously the challenge of centralized content is that when the system is down, there is no access. Of course the same holds true when one's own iPod stops working, too. The question is, which model is sturdier and likely to withstand constant use. A centralized approach has perhaps an easier ability to backup and protect it's content and to have secondary means to keep the systems working. "Apple, Amazon and Google are battling for control of new digital media platforms through which everyday users will access their music and videos." It also pushes hard though the WIFI and cellular systems that connect content to device. Apple and others have no control on that piece of the communication puzzle.
But who knows; perhaps, that is the next step in the Apple world. To own a communication company that makes those connections. These vertical businesses are happening in cable. Comcast owning NBC Universal being the latest example. What is stopping Apple from doing the same.
Thursday, April 21, 2011
Tivo Wins Again
Talk about a court case never ending and monies that may never appear, but Tivo has won again against Dish and the lawsuit still continues. "A panel of federal appeals judges has found Dish Network Corp. and EchoStar Corp. in contempt of court for failing to abide by an injunction barring them from using technology patented by TiVo Inc. in older Dish set-top boxes. The judges are sending the case back to a lower court to consider whether a work-around technology being used in newer Dish boxes still infringes on TiVo's patents." What is sure to follow is another round of appeals and more delays and by then, the technology will probably be obsolete.
Today, Tivo is to DVRs what Kleenex is to tissues, synonymous in the minds of most consumers. While certainly different in the benefits they offer, not understood by most consumers. And so while this legal fight will surely continue, Tivo must do more to ingratiate itself with both cable and over the top platforms. That means Tivo approved set top boxes, Tivo inside of XBox and Playstation and even a Tivo Apple combination. That is where the real winning will occur.
Today, Tivo is to DVRs what Kleenex is to tissues, synonymous in the minds of most consumers. While certainly different in the benefits they offer, not understood by most consumers. And so while this legal fight will surely continue, Tivo must do more to ingratiate itself with both cable and over the top platforms. That means Tivo approved set top boxes, Tivo inside of XBox and Playstation and even a Tivo Apple combination. That is where the real winning will occur.
Wednesday, April 20, 2011
How Much Would You Pay for An On Demand Movie
If you enjoy the ease of watching a newer released movie in your living room as opposed to driving to your local theater, then the question to you is how much are you willing to pay to get those movies in your home sooner. Movie studios are willing to find out. They are proposing to bring films to your home in 2 months after its theater release as opposed to 4 to 6 months. Direct TV is scheduled to test this new service. "The El Segundo-based satellite television provider will launch so-called premium video on demand Thursday with the Adam Sandler comedy, just 69 days after the film premiered in theaters. Consumers will have to pay $29.99 to rent the Sony Pictures movie for 48 hours. That's the first time a major studio movie has been available on television sets that soon after playing in theaters and at that high a price." Other films will follow.
For consumers who weren't able to watch the film in the theater and can't wait till it premieres in the next window, this option gives them more immediate enjoyment. But at $30 it hardly seems worth it, especially when the price to view in the regular on demand window is under 6 dollars. There is perhaps the rare film, like Avatar, that might justify this higher cost for an earlier window, but I doubt the returns will be impressive.
Still as DVD sales have lost ground to the digital market, studios' willingness to try new ideas is impressive. If for $30 I would own a digital copy of the film and I could access on all my devices, then I might be more inclined to consider. But to rent a movie for that amount, I might as well wait for the cheaper DVD or normal on demand window. With so much product in the marketplace, there is always something to watch.
For consumers who weren't able to watch the film in the theater and can't wait till it premieres in the next window, this option gives them more immediate enjoyment. But at $30 it hardly seems worth it, especially when the price to view in the regular on demand window is under 6 dollars. There is perhaps the rare film, like Avatar, that might justify this higher cost for an earlier window, but I doubt the returns will be impressive.
Still as DVD sales have lost ground to the digital market, studios' willingness to try new ideas is impressive. If for $30 I would own a digital copy of the film and I could access on all my devices, then I might be more inclined to consider. But to rent a movie for that amount, I might as well wait for the cheaper DVD or normal on demand window. With so much product in the marketplace, there is always something to watch.
Tuesday, April 19, 2011
Bigger Push In Over The Top Content Could Hurt Cable Operators
Cable operators should not be surprised by this story in Ad Age. "A group of deep-pocketed companies, including Microsoft and Verizon, are exploring delivering TV service over the web, a move that could disrupt the economics of cable TV and lead to a new generation of "virtual" cable companies that provide TV without owning the pipe into the home." XBox Live is there already; it is simply trying to dominate the home screen in a bigger way. And don't discount Sony Playstation and Wii as well as the rise of web connected TVs. The push is on to bypass cable subscription to bring content directly to the home.
And as these businesses are competing in the cable space, cable operators are doing the same with mobile apps to access cable programming. "The talks point to a future where consumers have the option of buying broadband internet service from one provider and TV service from another. It also promises to make the current dispute between programmers and cable companies over the right to stream content to new devices like iPads look like child's play." A sea change that could change the relationship between cable operator and consumer.
Cable operators with a broadband pipe to the home will have some leverage. The challenge will be in differentiating the value of the service from other broadband suppliers. Access to broadband may not require that a home be wired and wireless players could hit cable revenues hard. If broadband access is seen as a commodity, ultimately the lowest priced service will come out the winner.
Are we talking a revolutionary change in viewing habits; obviously not. But we are seeing a rise in cord shaving and ultimately cord cutting. Early adopters are already using over the top programming while eliminating their cable bill. Others are actually paying cable higher fees for broadband service to improve their streaming. But the rise of alternative players and the competitiveness of broadband services will force cable operators to rethink their business strategies.
And as these businesses are competing in the cable space, cable operators are doing the same with mobile apps to access cable programming. "The talks point to a future where consumers have the option of buying broadband internet service from one provider and TV service from another. It also promises to make the current dispute between programmers and cable companies over the right to stream content to new devices like iPads look like child's play." A sea change that could change the relationship between cable operator and consumer.
Cable operators with a broadband pipe to the home will have some leverage. The challenge will be in differentiating the value of the service from other broadband suppliers. Access to broadband may not require that a home be wired and wireless players could hit cable revenues hard. If broadband access is seen as a commodity, ultimately the lowest priced service will come out the winner.
Are we talking a revolutionary change in viewing habits; obviously not. But we are seeing a rise in cord shaving and ultimately cord cutting. Early adopters are already using over the top programming while eliminating their cable bill. Others are actually paying cable higher fees for broadband service to improve their streaming. But the rise of alternative players and the competitiveness of broadband services will force cable operators to rethink their business strategies.
Monday, April 18, 2011
UltraViolet Helping Warner Bros' Push of Digital Everywhere
Consumers love simplicity. And the rise of Apps on smartphones, iPads, and PCs have enabled consumers to connect with the things they love - music, wine, TV, and movies. Warner Bros. is continuing its leadership approach by working with other movie content companies and distributors to create a seamless application, currently titled 'Digital Everywhere", to find, organize, watch, and share movies.
"'Digital Everywhere' isn't a retailer like iTunes, but rather it gathers all the various ways movies can be bought or rented. It also organizes an individual's entire library of digital movies and TV shows - not just Warner brothers. And it will consumers to access their library from any internet-connected device - a TV, laptop, iPad or smartphone - through a cloud authentication system, called UltraViolet, that will be released this summer from a studio consortium." It aggregates information, organizes your current film library, searches and shares recommendations of new films, and enables you to buy or rent to your platform of choice: iTunes, Amazon, Netflix, etc. With Ultraviolet, information is managed centrally and shared across different technological platforms. And by making search, organization, and purchase easier, consumers should appreciate the ease of use and sales should surely rise.
Warner Bros. maintains a leadership in Hollywood with a willingness to collaborate with its rivals for the good of the movie industry. Ultimately, the consumer will pick the content and not the studio; building an app that strengthens the movie industry as a whole will also bring good fortune to Warner Bros. individually. It is a smart strategic move.
Not yet included in this future App is the role that the cable on demand platform plays. As the TV on demand piece brings a big financial segment, let us hope that Comcast, Time Warner Cable, and other cable operators come on board. Ultimately the consumer will choose which platform to view a movie from. While the app makes it a more level playing field for distribution, it also pushes each distributor to find new ways to differentiate itself from the competition. Without cable in the mix, 'Digital Everywhere' could still succeed and cable operators could find that they are only hurting themselves.
"'Digital Everywhere' isn't a retailer like iTunes, but rather it gathers all the various ways movies can be bought or rented. It also organizes an individual's entire library of digital movies and TV shows - not just Warner brothers. And it will consumers to access their library from any internet-connected device - a TV, laptop, iPad or smartphone - through a cloud authentication system, called UltraViolet, that will be released this summer from a studio consortium." It aggregates information, organizes your current film library, searches and shares recommendations of new films, and enables you to buy or rent to your platform of choice: iTunes, Amazon, Netflix, etc. With Ultraviolet, information is managed centrally and shared across different technological platforms. And by making search, organization, and purchase easier, consumers should appreciate the ease of use and sales should surely rise.
Warner Bros. maintains a leadership in Hollywood with a willingness to collaborate with its rivals for the good of the movie industry. Ultimately, the consumer will pick the content and not the studio; building an app that strengthens the movie industry as a whole will also bring good fortune to Warner Bros. individually. It is a smart strategic move.
Not yet included in this future App is the role that the cable on demand platform plays. As the TV on demand piece brings a big financial segment, let us hope that Comcast, Time Warner Cable, and other cable operators come on board. Ultimately the consumer will choose which platform to view a movie from. While the app makes it a more level playing field for distribution, it also pushes each distributor to find new ways to differentiate itself from the competition. Without cable in the mix, 'Digital Everywhere' could still succeed and cable operators could find that they are only hurting themselves.
Saturday, April 16, 2011
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.
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.
Friday, April 15, 2011
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.
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.
Thursday, April 14, 2011
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.
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.
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