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Tuesday, July 5, 2011

Good News For 3D, CBS Testing For Its Programs

CBS seems to be the first broadcast network actively looking at pushing forward with a 3D broadcast channel. "CBS may be bringing 3D versions of its shows to a 24-hour cable network, and it has already demonstrated 2D-to-3D converted programming privately to several operators, according to industry sources familiar with the project. The broadcast network is considering a strategy to gain distribution for the 3D channel through its retransmission-consent negotiations with cable, satellite and telco TV operators, according to one source." Certainly good news for all the CE companies with an eye on the next generation of products.

While 3D TV sales have slowed, it is partly due to the lack of meaningful 3D content to view. If you believe like me that content is king, then the advancement of 3D by a broadcaster is the push to invigorate demand. "To date, there has been a fairly limited supply of 3D content available through pay-TV operators since the current wave of 3DTV sets hit the market in early 2010. ESPN 3D launched last year and converted to a 24-hour service this past February, although the lineup remains largely reruns of previously aired events. The 3Net channel from Discovery/Sony/IMAX has just one distribution deal so far, with DirecTV." CBS would be the first broadcaster to market and no date the others will quickly follow.

Certainly 3D is a hot commodity, not just for programming, but for gaming as well. My son badly wants the 3D version of his DSi gaming system. And I do see the appeal for 3D when it comes to watching sports on TV. But as I need glasses to see, wearing another set of glasses over my own has always been irritating to me. Nintendo has achieved a 3D effect on it's gaming system without glasses. I look forward to the day when my large screen HDTV viewing on 3D without the glasses is the norm.

Friday, July 1, 2011

Scripps Not For Sale...For Now

Per the latest news, Scripps Networks, home for HGTV and Food Network, are not for sale. "WSJ said that a potential sale has been put off indefinitely, at least partly because the company and the trust that controls it have determined it might be better to wait until there is more clarity on which way the television business is going." Which translates no sale until market conditions improve and we can maximize the potential dollars for these networks.

Uncertainty in the industry is not likely to go away. Heck, that's what makes this industry so interesting. As cable operators are looking for more distribution rights, including out of home linear access, programmers like Scripps are looking for ways to increase their license fees and ad revenue. New distribution paths will lead to more eyeballs once Nielsen and others can figure out how to best measure this new out of home viewership. Ad revenue is also improving and will only grow as this new research is enabled.

The biggest challenge, license fee revenue, comes because consumers are balking at higher cable rates and those rates increase partly because programming costs increase. Can these fees continue to rise and can programmers find new revenue through other distribution platforms?

Perhaps Scripps wants more clarity on this latter issue before once again putting its networks up for sale.

Thursday, June 30, 2011

Young People More Likely To Cut The Cable Cord

According to the latest J.D. Power and Associates survey, the younger you are, the more likely you are to either cut out cable service completely or to drop your pay subscription services. The older generation less likely to change their habits for new technology. In addition the survey found more satisfaction with over the top video services like Netflix and Redbox, then with pay subscription services like HBO or Showtime. "The survey found that Netflix and Redbox has above-average customer satisfaction scores, which were based on six factors: variety of videos provided; ease of use; cost of service; customer service experience; billing; and offerings and promotions."

While the 3% drop of cable services and 6% downgrade of pay services may appear small, the challenge is that it may indicate a trend that will only grow as more of the younger audience begin to change their viewing habits, from linear to on demand. Movies are the biggest threat to the pay services as consumers can access these titles through multiple resources. Where the pay networks can excel is with original content that they own and can limit their distribution paths. Customers that want to watch "Game of Thrones" on HBO must be an HBO subscriber. The longer HBO can withhold the series from DVD and non cable distribution platforms, the better it is to their subscription business.

While cord shaving today is the more serious threat, future cord cutting should not be so easily dismissed. Cable operators need to cut mobile distribution deals so that their linear and on demand lineups remain accessible both inside the home and out. And operators are facing struggles trying to negotiate deals with programmers for access of their networks on mobile devices authenticated with a cable subscription. But that always available coverage by the cable company will be a real game changer against these alternative distribution platforms.

Wednesday, June 29, 2011

Exclusive: Myspace to Be Sold to Specific Media for $35 Million

From All Things D, News that My Space is to be sold by Fox for less than 10% of it's purchase price to Specific Media. Can they really do something with My Space or is this another bad investment. Exclusive: Myspace to Be Sold to Specific Media for $35 Million

Is There Room For Another Social Network?

A simple question, how many social networks do you belong to. I count five for me, although I haven't gone on My Space in over a year and they are getting set to layoff employees and sell the business at a fraction of the purchase price. There is of course Facebook, where I admit, I visit throughout the day as well as LinkedIn for my business networking. There is Twitter, for quick updates of news and gossip. And most recently, Foursquare, where I am still a newbie. So let's call it four for active use; do I need another, not unless it can offer something uniquely better than what I already have.

"On Tuesday, Google introduced a social networking service called the Google+ project — which happens to look a lot like Facebook. ... But the Google+ project will be different in one significant way, which Google hopes will be enough to convince people to use yet another social network. It is meant for sharing with groups — like colleagues, roommates or hiking friends — not with all of one’s friends or the entire Web. It also offers group text messaging and video chat." Is that enough to make a difference? I would suspect that Facebook will quickly add this feature and more before Google+ is fully released.

This is not Google's first attempt at a social network. Previously there was Buzz which didn't get any praise reviews. Still it is hard to count Google out of the picture. They have proven an ability to come and compete and be successful. Their Android product has fared very well against Apple and the iPhone. And tying in Google+ with Android phones in a seamless way may be the right mix of social, group dynamics, and mobility that we need. Can they put it together and out the door before Facebook and others tweak their software? In this fast pace race, it is all about the timing.

Tuesday, June 28, 2011

E-Book Reader Vs Tablet, Can Both Survive?

It seems there is a healthy market today for both e-readers and tablets. In fact, ownership of e-readers is growing faster. "A new Pew report shows that the number of U.S. adults who own a dedicated e-reader (like a Kindle or Nook) has doubled since November 2010, to 12 percent... Pew found that 8 percent of adults own a tablet, compared to 5 percent in November 2010." I think that part of the reason for the e-reader faster growth is the significantly lower price point. And while the e-reader has some limitations, it is starting to become more web friendly. At the same time, it has a better screen for reading, lighter and easier to carry, and for it's primary use, does exactly what it needs to do.

In my own household there is a desire for both a tablet and e-reader. As a commuter, the ease of transporting a reader verse a heavy book is the primary appeal. And with an iPhone in her pocket, she will have the world at her fingertips.

Certainly at some point in the near future, there will be a convergence of these two products. The tablet will get lighter and thinner. It will switch from a rich graphical display to an easy to read print face (especially when bright sun is present), and may be flexible enough to perhaps even be rolled up for transport in a pocket. But until then, the e-reader of today has a great growth opportunity ahead of it.

Monday, June 27, 2011

Foursquare Finds Financial Foothold

Foursquare has found investment interest as it receives $50 million in funding. "The company, which allows users to announce their presence at an ever-growing number of bars, restaurants, offices, arenas, and public spaces recently passed the 10 million user milestone, and just this week inked a deal with American Express to allow Foursquare users with AmEx cards the opportunity to take advantage of cash-back deals." And add me on Friday as one more member.

I went out to the movies, dinner, and the beach this weekend, and each time, I announced my location. And each time, I annoyed my wife as I did it and became fodder for conversation with my friends. Comments like, "so now the crooks know you aren't home" and simply "why?". I have to say I asked myself the same question. None of my three friends on Foursquare live that close to me or did I suspect they would be at any of the places I visited. And I wasn't about to look for other members from their picture, that may also be at the same establishments. And lastly, I have to say, I didn't like having my iPhone beep the location of my friends locations. So after a weekend, I am already considering deleting my app.

Perhaps all I really want is for the location I am visiting to know that I am there and to perhaps treat me with a discount, coupon, or other goodie as a sign of loyalty. As for bumping into friends at locations, I'd rather it be a surprise; otherwise, it starts to look like stalking.

Is it fun to be a "mayor" of a location; I'm not sure I will ever get to know. Perhaps I am missing something, but Foursquare seems more fun as my kids' outdoor recess game. I'd love to hear other opinions, let me know your thoughts.

Friday, June 24, 2011

VOD II: The Empire Strikes Back | InteractiveTV Today

A great article on the future of VOD. Enjoy!
VOD II: The Empire Strikes Back | InteractiveTV Today

Fourstep Partners With American Express

An ideal partnership, matching consumers and their shopping preferences with their preferred credit card company. An innovative way to facilitate the purchase process. "Foursquare users are accustomed to receiving awards in the form of coupons and digital merit badges. But more substantial deals like those being offered to American Express cardholders may bring Foursquare and other location-based services further into the mainstream." As consumers get closer and closer to managing purchases with their smartphone, this arrangement gets Amex one step closer to the process. And it further cements the relationship between retailer and purchase process with deals and coupons as the glue.

"To start, American Express will offer deals at Sports Authority and the clothing retailer H&M, along with a few restaurants in New York, like Union Square Cafe and the barbecue joint Blue Smoke. For example, shoppers who spend $75 at H&M will receive a $10 credit to their American Express accounts. Those who spend $50 at Sports Authority will get a $20 reward." I have been reluctant to join Foursquare, but these kinds of deals get me to reconsider. And I am betting that others will feel the same.

Rewarding loyalty has its rewards and both Amex and Foursquare should see this partnership paying healthy dividends. I look forward to seeing how this partnership can further evolve.