Passwords Are Problematic

With the latest news that LinkedIn's security was compromised and customer passwords were obtained, we were again reminded to use different passwords for different sites, to make them a complicated assortment of letters, numbers, and symbols, change them often, oh and yes, remember them all.  And yet how many of us do this?  Worse, the ones we do use, we sometimes forget the password, log in name, or both.  And so despite the security breaches, most of us use one or two or at most three for most of our accounts.  Compromised at one site, obtained for all.

We need a better solution to passwords.  With new touch screens and front facing cameras, other choices may be around the corner.  From face or fingerprint recognition to voice, we need a different way to access our accounts and personal information in a way that cannot be used without us being present.  Are these new methods better; hopefully, so.  It is clear that as banks and financial institutions also find that their client passwords are also stolen, that  other means of verification are necessary.

Passwords don't work because we have a hard time remembering all the different passwords that we create, for work, home, email, bank, subscription services, etc.  The password system is compromised the moment we hand write the codes on our laptop, desk, notes app and other places.  It is worse when the institution that uses the password gets itself hacked and shares those passwords across the web.  So the race is on to find the next model of account verification online.  Hurry, we need it now.

Charlie Ergan Speaks

It's worth checking out the article on Charlie Ergan in today's Wall Street Journal.  There has been quite a bit of press recently on his company, Dish Network.  From his latest DVR that completely hops over ads to his fight with AMC Networks and their former parent company Cablevision over Voom, Charlie doesn't seem to mind a battle. 

Although the article speaks only about his Auto Hop service, he clearly has opinions on the future of TV and advertising.  "With the new service, Mr. Ergen aims to force the networks to develop 'more meaningful' ads, using, for example, demographic targeting of viewers."  But how can networks show more "meaningful ads" if ads are immediately skipped over.  What does Charlie really want?

Perhaps his real point is that the networks are offering the same content with less ads on other platforms, like Hulu.  Viewers, like his children, are bypassing cable subscriptions for the web.  "Mr. Ergen, 59 years old, says four of his five children have stopped paying for a TV subscription, and the fifth is living home."  Viewing habits are changing whether Dish is skipping ads or not.  His ploy may be to find ways to get networks to lower their costs to him so he can lower his costs to subscribers and win them back.  At the end of the day, he certainly has gotten the attention of the network executives.

So what is Ergan's next move?  He is also holding on to wireless spectrum with an opportunity to build out a competing service.  The costs to build are enormous and Ergan may want to consider a partnership with an existing mobile carrier.  AT&T couldn't do a deal with T-Mobile.  Perhaps Charlie can.  The future is two way wireless of voice, video, and data and Charlie Ergan seems intent to compete with a cost effective model. 

As to the networks, the Auto Hop feature is already out of the box.  You can't turn back technology.  Tivo and the DVR was the first step; consumers want to skip commercials.  As Ergan intimated in the interview, a new creative approach is needed.  Less breaks and more innovative and targeted ads could help.  Viewers are changing habits and it is time to take notice.

Tablet And Smartphone Over The Computer

Have you watched  your online usage changing?  Are you tracking how much time you spend on your computer verse the time you spend on your tablet or smartphone?  In a very unscientific approach, I have to admit that I too am trending to far greater usage of mobile devices over my computer.

"More than 2/3 of our time on mobile phones is now used for non-communication activities with the average American spending 94 minutes per day utilizing mobile apps vs. 72 minutes of web-based consumption. Mobile is poised to surpass television as the dominant consumer access point for all media. How we experience life, relationships, entertainment, education, exercise, and work have been completely transformed (for better or worse) because of mobile."

Sure during the day, the PC is on for a number of activities; but the smartphone and tablet become easier to travel with from meeting to meeting and faster to access documents and sites.  In our personal lives, these mobile devices are lighter, faster, and easier to use for search, navigation, and usage.  Our shared experiences still exist in front of the TV, But when we seek an individual experience, or even a shared experience through remote connections, the mobile device is better suited.  From watching a movie on Flixster or Netflix to accessing scores from different games, the smartphone and tablet are the ideal devices. And casual gaming on these same handheld devices only add to their value.

Can companies find the secret sauce to mine more revenue from these mobile devices?  " Today, we've already seen apps disrupt multi-billion dollar industries - gaming, retail, media, publishing, small business, photography, and travel."  The space is ripe for commerce, advertising, subscription, and other revenue opportunities.  And in fact, given the speed of growth, the timing is now.

Why HBO Go Can't Become A Standalone Streaming Service

You may love watching Game of Throne or Girls or any number of movies and specials on HBO.  But unless you buy the premium channel from a cable subscriber you can't get access to its streaming sidekick, HBO Go.  True, "People are sick of paying for cable they never use and want to stream everything on their smartphone and laptop instead."  But at the end of the day, it would not be likely to offer the service without the risk of losing cable fees.  Sure HBO shares its license fees with cable operators.  Once HBO offered a streaming service without a TV subscription, cable operators would seek to drop the channel ASAP.

Take it a step further, HBO is owned by Time Warner which also offers basic cable nets like TBS, TNT, and Tru.  Cable operators might take a vindictive approach, like Dish is now doing to AMC Networks, and move them to a hard to find position, or worse, drop these channels as well from the line-up.  For HBO and their parent company Time Warner, there is far more risk in upsetting the current apple cart for an unproven revenue stream. So wish all you might for HBO Go as a standalone offer, the risk of cord cutting is too great for Time Warner to make a move at this time.

Carriers Dealing With Less Calling, More Mobile Usage

It seems that the rise of smartphones have led to less talking on the phone.  These devices have not become less useful; rather, they provide richer alternatives than actually making a call.  We are texting more, watching more, searching more, and interacting more with our devices, but all at he cost of actually speaking less to others through the mobile device.  "In a sea change for consumer behavior, the amount of time spent making old-fashioned voice calls has fallen every year since Apple Inc. introduced the iPhone in 2007. The rub for carriers is that voice billings still account for about two-thirds of what they charge cellphone customers every month."  So now the talk is on how to continue to mine revenue from these devices.

If calling time is down, the carriers  are seeking unlimited calling as a means to charge high knowing that the average cost per call will grow as usage declines.  In addition, we are faced with data usage charges for are 3G and 4G usage.  If we can't find a WIFI hotspot to communicate through, we will soon end up racking more charges for our data plan.

But why are carriers so concerned about this possible loss of call revenue due to downsizing of call plans, it seems that the majority of revenue still comes from voice.  "The moves have helped data revenue increase quickly, but it still is dwarfed by voice charges. Data accounted for 37% of carriers' $169.8 billion in wireless revenue last year, compared with 12% in 2006."  I guess the expectation is that the rise in data revenue won't offset voice declines.  Still, carriers should be focusing on other revenue opportunities beyond voice and data. From ad revenue to e-commerce, carriers are the conduit to the consumer and as a result have a unique opportunity to communicate and promote new ideas.  It may be a cliche, but as one door is closing, it is important for carriers to focus on the new doors that are opening up in front of them in the mobile space.

Apple vs. Google, like Ali vs. Frazier

Don't we love to watch when two big businesses go face to face.  In the early days their was IBM vs DEC, Verizon Wireless vs AT&T, and now we have Apple vs Google.  Where once these two companies worked along side each other, each operating in its distinct world, today they are in full on assault mode.  "The rise of the iPhone and other smartphones changed all that. Mr. Jobs felt blindsided by Google's push into mobile devices with its own Android operating system."  Now they compete with hardware, apps, cloud computing, and everything in between.

And so to keep striking while they can, Apple is set to displace Google Maps with its own map app.  "In the short term, Google will lose some ad revenue and miss out on data about what local businesses people are searching for—which it uses to pitch retailers on buying certain ads. Longer term, it is likely to hurt Google's ability to generate map-related revenue".  Hitting at the pocketbook is clearly what Apple has in mind.  Once Google entered the mobile space, Steve Jobs was adamant that he would do anything it took to beat them.  Well even beyond the grave, the Apple organization is doing just that.

Once they update the operating software and consumers download the update, Google Maps should be replaced with Apple's own version.  Of course any war is made up of multiple battles.  With maps being the first line in the sand, the question is when will the next battle take place.  Could it be in search, against YouTube, or somewhere else.  The war is on, the first battle is set to begin.

For Fun, Let's Sue TiVo

Has TiVo become the Rodney Dangerfield of the electronic industry; no respect.  It seems that everyone loves to sue TiVo.  Although TiVo likes to sue others, too.  "Cisco Systems this week filed a federal lawsuit against TiVo, seeking to void four of the DVR maker's patents -- including the infamous "Time Warp" patent that Dish Network was found to have infringed -- opening a new front in the litigation battle over cable set-tops."  Is there a real case here or is it an attempt to continue to delay until frankly the technology becomes outdated itself.  If anything all these lawsuits will certainly keep the lawyers busy and happy.

Have We Finally Seen The End Of The Yellow Pages On Our Doorstep

They still get delivered to our door but for how much longer.  The last time they have been opened or even touched is when I recycle the older one and replace it with the recent arrival.  Today, any searches for information is online and the  yellow pages directory has become a distant memory.  "But now Yell wants to go one step further. Like so many other fundamentally challenged businesses, it wants to break with the past and move on, by rebranding the company 'Hibu'."

It seems that the Yellow Pages, or the various names that it has been called, has been dead for quite a while.  Online websites have not only provided me with the names and numbers of businesses that I needed to call, some sites have also provided "local" recommendations based on user message boards and feedback.  Convenient and helpful.

While I have not been able to control the curbside delivery of the yellow pages, I have been able to feed it directly to my recycle bin.  For me, the yellow page transition has been too little, too late.  Can they start from scratch to recapture this lost marketplace; doubtful.

Facebook Wants To Build A Phone

Want more competition in the mobile space?  Consider this, Facebook wants to be more than a pretty face in the software space, they want to be in hardware too.  Following the  Google lead, Facebook seems to be gearing up to produce its own mobile phone.  While Google bough Motorola Mobility to make its own phone, Facebook "has hired more than a half dozen former Apple software and hardware engineers who were on the iPhone, and one who worked on the iPad, to build the Facebook Phone, The New York Times reports."  First a phone, then an app store.

Is there room for Facebook and can they bring something new to the table?  We love competition so any new entrant means more innovation and that keeps the industry fresh.  Whether they can succeed or not is another question.