It seems as companies have been kicking the tires of Hulu, they have been reluctant to pay the asking price. And while some bids have come close, the additional conditions asked to complete the transaction have proven stumbling blocks. "At stake is the question of whether Hollywood's content companies are ultimately going to be principal players in the new world of digital streaming, or whether they will remain licensors of their products -- outside vendors." That is to say, buyers of Hulu don't want to find themselves competing for streaming platforms with the eventual sellers of Hulu.
As streaming becomes easier to offer and costs to stream decline, distribution platforms become plentiful. A Hulu buyer should want some exclusivity in their content deals to market a competitive differentiation. And that may be needed in both their paid and free models.
What will the current Hulu owners do if they choose to not complete a sale? Perhaps incorporate Hulu into each of their own websites to give it more value. They will also have to figure out what content also gets shared with their cable distribution partners. Comcast, Time Warner, and others all want to offer this content on their VOD and streaming platforms to authenticated users. Clear competition against Hulu's own pay model. Should Dish buy Hulu, Dish would probably want to confirm that they have the exact same rights, if not better, for the content these owners are peddling to cable. A sticky place to be and one that surely complicates the sale of Hulu.
Tuesday, October 4, 2011
Monday, October 3, 2011
Consolidation In Cable To Compete Better
Strike the word local from the cable dictionary. In order to compete against telco and satellite services, the buzzword is consolidation. Comcast reorganized to three regions, Time Warner to two, East and West, and today it is Cox's turn. They first reduced from 11 to 9 and now are combining again into 7 operating divisions. Mark my words, by next year it will be under 5. As businesses mature, it is not necessarily a bad thing. Decisions rise up higher into the organization and local management goes away. What is left is service departments and a few customer service reps.
But in the face of competition, cable once argued that local was better. Where the telco and the satellite providers were national in scope, only cable cared about each community. Perhaps that strategy has proven less profitable as cable is now copying their competitors' national strategic management approach. But it also means less management jobs, and in today's economy, not helpful. Less costs for Cox and others, more operating profit.
But does this national approach spur more cable subscription? Can local help to better push cable over competition? It seems the approach is only about technological updates, more apps, mobile viewing, more on demand choice. Still, the missing piece may still be localism and should cable try to recapture this lost world, it might be a good differentiation move. Till then, stay tuned for more consolidation of cable operations.
But in the face of competition, cable once argued that local was better. Where the telco and the satellite providers were national in scope, only cable cared about each community. Perhaps that strategy has proven less profitable as cable is now copying their competitors' national strategic management approach. But it also means less management jobs, and in today's economy, not helpful. Less costs for Cox and others, more operating profit.
But does this national approach spur more cable subscription? Can local help to better push cable over competition? It seems the approach is only about technological updates, more apps, mobile viewing, more on demand choice. Still, the missing piece may still be localism and should cable try to recapture this lost world, it might be a good differentiation move. Till then, stay tuned for more consolidation of cable operations.
Saturday, October 1, 2011
Cheating On Your Spouse With Your Apple iPhone
Fascinating article today in the NY Time's Opinion Section regarding our iPhone addiction. And not simply an addiction, but love for the device. "The subjects’ brains responded to the sound of their phones as they would respond to the presence or proximity of a girlfriend, boyfriend or family member. In short, the subjects didn’t demonstrate the classic brain-based signs of addiction. Instead, they loved their iPhones." Do I love my wife less, no; do I feel a love for my iPhone, perhaps. I definitely feel a loss if it is not nearby. Call it an addiction or loss, but I agree it evokes an emotion in me.
Friday, September 30, 2011
Amazon Trying To Enhance Its Mobile Play
Sometimes it is easier to build from scratch, other times it is easier to buy. And the latest acquisition attempt buy Amazon seems a smart move to keep in competitive step with Apple. Latest reports have Amazon in high level talks to buy Palm from Hewlett Packard. "Palm makes the webOS mobile operating system. The software is well-regarded by industry observers, but Palm devices have failed in the marketplace."
Like the PC operating system, there seems to be two main players, Apple and the other guy. While Microsoft seems to be fumbling the ball in the mobile space, Amazon looks to be taking a very strategic, forward thinking route to compete with Apple and command more market share. And there is belief that the Palm operating system will mesh with the Android system that Amazon currently uses. "Android apps are written in the programming language Java and versions of webOS can run Java apps, so it should be possible (though perhaps slightly tricky) for Amazon to get the apps on its app store to run on the webOS platform."
It is fascinating to watch a company like Amazon, which started as an online distribution platform for selling and delivering merchandise to an online platform selling and delivering software. And unlike Netflix, Amazon hasn't made a move to divorce its new business from its old. Apple continues to grow too, adding a brick and mortar presence to enhance its online. Perhaps, Amazon may find itself buying a brick and mortar business, too.
Like the PC operating system, there seems to be two main players, Apple and the other guy. While Microsoft seems to be fumbling the ball in the mobile space, Amazon looks to be taking a very strategic, forward thinking route to compete with Apple and command more market share. And there is belief that the Palm operating system will mesh with the Android system that Amazon currently uses. "Android apps are written in the programming language Java and versions of webOS can run Java apps, so it should be possible (though perhaps slightly tricky) for Amazon to get the apps on its app store to run on the webOS platform."
It is fascinating to watch a company like Amazon, which started as an online distribution platform for selling and delivering merchandise to an online platform selling and delivering software. And unlike Netflix, Amazon hasn't made a move to divorce its new business from its old. Apple continues to grow too, adding a brick and mortar presence to enhance its online. Perhaps, Amazon may find itself buying a brick and mortar business, too.
Wednesday, September 28, 2011
A Cheaper Tablet Arrives, Kindle On Fire
Hello tablet competition with the arrival of a new tablet from Amazon at a price point that just might make Apple and others blush. Priced at less than half the price of the iPad, the Kindle Fire may just appeal to the budget conscious consumer seeking a mobile screen for web connection. It may not offer some handy features like a "camera, microphone or 3G connectivity", it does connect to the web and enable streaming of all data. Listen to songs, watch a video, read a book, buy on Amazon, the Kindle Fire may be exactly what the consumer seeks in a lower cost model.
But if brand and the added capabilities that go with the Apple experience are what suit you, than price will not sway you from an iPad purchase. That is certainly what Apple hopes although their October press announcement could include some iPad updates. Still quiet is Barnes & Noble's Nook tablet. Staying on the sideline is not be a smart tactic and B&N is expected to have another trick up their sleeve in order to stay ahead of Amazon in the tablet race. The timing is certainly key as the Holiday Season is just around the corner.
The $199 price point is said to be a loss leader for Amazon. It's unique strategy is to get the Kindle Fire into many hands and make the return on the content that is purchased for the device. To this strategy, content is king, and Amazon needs to announce some unique, exclusive content to drive its distribution strategy. As Apple leads with a brand leader and market share, it is keen to make its return in the purchase and the content. Even without buying downloads, the iPad becomes an important companion in an Apple home, tied to the iPhone and mac. The introduction of the iCloud only solidifies that connectivity of devices. And for the Nook, a differentiation strategy is required to separate yourself from both the Kindle Fire, which shares your Google Android operating system, and the iPad. It's time to see more muscle.
So if you're waiting on the sidelines to buy a tablet, this Holiday could be your time. Enjoy!
But if brand and the added capabilities that go with the Apple experience are what suit you, than price will not sway you from an iPad purchase. That is certainly what Apple hopes although their October press announcement could include some iPad updates. Still quiet is Barnes & Noble's Nook tablet. Staying on the sideline is not be a smart tactic and B&N is expected to have another trick up their sleeve in order to stay ahead of Amazon in the tablet race. The timing is certainly key as the Holiday Season is just around the corner.
The $199 price point is said to be a loss leader for Amazon. It's unique strategy is to get the Kindle Fire into many hands and make the return on the content that is purchased for the device. To this strategy, content is king, and Amazon needs to announce some unique, exclusive content to drive its distribution strategy. As Apple leads with a brand leader and market share, it is keen to make its return in the purchase and the content. Even without buying downloads, the iPad becomes an important companion in an Apple home, tied to the iPhone and mac. The introduction of the iCloud only solidifies that connectivity of devices. And for the Nook, a differentiation strategy is required to separate yourself from both the Kindle Fire, which shares your Google Android operating system, and the iPad. It's time to see more muscle.
So if you're waiting on the sidelines to buy a tablet, this Holiday could be your time. Enjoy!
LightSquared True Wireless Motives
Is LightSquared about political and personal fortune at the expense of the public, or are they truly wanting to build a better mousetrap that will improve connectivity and give consumers another choice? "LightSquared wants to build a network with 40,000 towers across the U.S. using spectrum that was originally set aside for satellite phones. Rather than selling cellphone service directly to consumers, the company plans to offer its network to other wireless carriers and companies such as Best Buy Co."
The 21st Century could soon be declared the beginning of the connected consumer. We feel the need to be connected via the web, whether we are in our house or on an airplane, at the supermarket or riding the subway. And when we are not connected, we feel a loss, unable to make a call, send a tweet, play a game of Words With Friends. Connectivity could soon be declared a required right like food, shelter, and clothing.
Seriously, the need for connectivity, at a low cost, makes the entry of LightSquared an important competitor in what has slowly become a limited market of players. That their entry occurs without interfering with other GPS signals and affecting safety is essential. And lastly, that the politics of lobbying and electorial support can be withdrawn so that the true opportunity for the economics of business to take control. "The debate heated up when the Center for Public Integrity, a nonprofit investigative news organization, published White House emails showing LightSquared officials boasting of campaign donations while trying to schedule meetings with White House officials." This may be "business as usual", but it would be best to remove the politics and let the consumer push for LightSquared support.
The need for more broadband and wireless players in the market is essential. With AT&T's desire to purchase T-Mobile and the cable companies continuing to converge, LightSquared could be a well needed player. Get the technology right and let free market rule,
The 21st Century could soon be declared the beginning of the connected consumer. We feel the need to be connected via the web, whether we are in our house or on an airplane, at the supermarket or riding the subway. And when we are not connected, we feel a loss, unable to make a call, send a tweet, play a game of Words With Friends. Connectivity could soon be declared a required right like food, shelter, and clothing.
Seriously, the need for connectivity, at a low cost, makes the entry of LightSquared an important competitor in what has slowly become a limited market of players. That their entry occurs without interfering with other GPS signals and affecting safety is essential. And lastly, that the politics of lobbying and electorial support can be withdrawn so that the true opportunity for the economics of business to take control. "The debate heated up when the Center for Public Integrity, a nonprofit investigative news organization, published White House emails showing LightSquared officials boasting of campaign donations while trying to schedule meetings with White House officials." This may be "business as usual", but it would be best to remove the politics and let the consumer push for LightSquared support.
The need for more broadband and wireless players in the market is essential. With AT&T's desire to purchase T-Mobile and the cable companies continuing to converge, LightSquared could be a well needed player. Get the technology right and let free market rule,
Tuesday, September 27, 2011
Look Who's Playing Both Sides Of Cord Cutting
It seems that the threat of cord cutting has gotten one distribution company to look at new ways to appeal to these cable cutters. Dish Network, a cable satellite company, owns Slingbox, a terrific technology that allows users to push their linear and on demand programming from their cable box to any pc or mobile device. They recently purchased Blockbuster, to offer consumers new choices for DVD rentals, both in store and streaming. And as the third leg of their stool, they seem to be the top bidder in a race to acquire Hulu, an online video streaming company. "Two sources tell us that satellite TV provider Dish was the highest bidder, coming in around $1.9 billion. It beat out both Amazon and Yahoo."
Will Dish pick up Hulu? It seems from looking at previous behavior, that it is consistent with a new strategy to own the distribution platform and content in multiple forms. With the Echostar parent company, one hopes that the right marketing synergies can be created to enhance the messaging and promote these various services. Dish trails DirecTv, Blockbuster trails Netflix, and a consistent second strategy may not be truly effective. It may be time to turn one of their brands into a true leader.
Perhaps it is too early to talk Dish - Hulu just yet. Others, like Google, may raise their bids. Ultimately, my questions with Hulu still remain unanswered. Will the current partners of Hulu still feel obligated to sell content to them after the sale, or will these networks provide cable distributors with more authenticated exclusivity in order to reduce the threat of cord cutting, something that Hulu seems to encourage. As partners, they were inclined to support with content; once unencumbered, they may not feel such an obligation. And that, to me is a real concern of the true long term value of Hulu.
Will Dish pick up Hulu? It seems from looking at previous behavior, that it is consistent with a new strategy to own the distribution platform and content in multiple forms. With the Echostar parent company, one hopes that the right marketing synergies can be created to enhance the messaging and promote these various services. Dish trails DirecTv, Blockbuster trails Netflix, and a consistent second strategy may not be truly effective. It may be time to turn one of their brands into a true leader.
Perhaps it is too early to talk Dish - Hulu just yet. Others, like Google, may raise their bids. Ultimately, my questions with Hulu still remain unanswered. Will the current partners of Hulu still feel obligated to sell content to them after the sale, or will these networks provide cable distributors with more authenticated exclusivity in order to reduce the threat of cord cutting, something that Hulu seems to encourage. As partners, they were inclined to support with content; once unencumbered, they may not feel such an obligation. And that, to me is a real concern of the true long term value of Hulu.
Monday, September 26, 2011
The Rise Of The Tablet, More Context And More Connectivity
Apple's iPad has led the tablet revolution with others trying desperately to make inroads. From Samsung to Blackberry to the Nook, the table is becoming the must have device. And now Amazon will soon announce its own tablet.
The age of the tablet brings a whole new paradigm to the digital landscape. Hollywood is bracing for digital distribution, Netflix is pushing streaming, and print sees a new opportunity to recapture subscriptions and grow advertising. For The New York Times, digital subscription is growing as consumers are using their iPads at night to catch up on articles they missed earlier in the day. For them, it opens up a whole new viewing time that had died with the demise of the evening newspaper. The table rests in our kitchens, on our coffee tables and in our beds. And with this connectivity, the ads served can speak directly to the users interests and relevant to the time of day. Context and connection.
And as multiple devices talk to each other, the tablet with the smart phone, or perhaps with the big screen TV, data can be shared and connected. As other devices in the home get smarter, connectivity with a mobile device will only be enhanced. Our devices can talk to the refrigerator, HVAC and security system, and every other home appliance. And information can be shared among family members. We will be informed, entertained, and enlightened.
The age of the tablet brings a whole new paradigm to the digital landscape. Hollywood is bracing for digital distribution, Netflix is pushing streaming, and print sees a new opportunity to recapture subscriptions and grow advertising. For The New York Times, digital subscription is growing as consumers are using their iPads at night to catch up on articles they missed earlier in the day. For them, it opens up a whole new viewing time that had died with the demise of the evening newspaper. The table rests in our kitchens, on our coffee tables and in our beds. And with this connectivity, the ads served can speak directly to the users interests and relevant to the time of day. Context and connection.
And as multiple devices talk to each other, the tablet with the smart phone, or perhaps with the big screen TV, data can be shared and connected. As other devices in the home get smarter, connectivity with a mobile device will only be enhanced. Our devices can talk to the refrigerator, HVAC and security system, and every other home appliance. And information can be shared among family members. We will be informed, entertained, and enlightened.
Friday, September 23, 2011
Is LightSquared More Politics Than Capitalism
Politics exists everywhere, not just in Government. Favors are done, cronyism is established, and greed sometimes gets in the way of honest work. So one has to wonder, is LightSquared truly an opportunity for a new player to help balance the power and increase competition in the wireless and broadband industry, or is there more than meets the eye.
From today's column in the NY Post, to this article in Multichannel, it seems that personal gain over mainstream interests could possibly be at stake.
Can LightSquared be a low cost alternative to the current players or will it be so only by interfering with current GPS signals? And if they can't fix the problem, are we being told a fairy tale? That politics is leading this process is the most troublesome. It reeks of greed and may benefit few over the many. Can LightSquared truly overcome the GPS issue or is it being fast tracked to help put money into political hands? I naively hope it is the former. I'd hate to see greed cause poor long term judgment.
Competition is a good thing. If not LightSquared, there are other ways to enhance competition in the broadband industry. Perhaps the Government can incent the utilities to build out their infrastructure to offer a broadband piece. Would the electric, gas, and water companies have an interest? Job creation, economic stimulus, and more choice.
From today's column in the NY Post, to this article in Multichannel, it seems that personal gain over mainstream interests could possibly be at stake.
Can LightSquared be a low cost alternative to the current players or will it be so only by interfering with current GPS signals? And if they can't fix the problem, are we being told a fairy tale? That politics is leading this process is the most troublesome. It reeks of greed and may benefit few over the many. Can LightSquared truly overcome the GPS issue or is it being fast tracked to help put money into political hands? I naively hope it is the former. I'd hate to see greed cause poor long term judgment.
Competition is a good thing. If not LightSquared, there are other ways to enhance competition in the broadband industry. Perhaps the Government can incent the utilities to build out their infrastructure to offer a broadband piece. Would the electric, gas, and water companies have an interest? Job creation, economic stimulus, and more choice.
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