See something on your TV screen, click and buy with your remote. Like the couch on the Mad Men set, click and buy from Crate & Barrel. It seems that the idea of adding another revenue model off the TV set is taking form and Pay Pal is working hard to build partnerships to facilitate the sale. Two separate announcements, one with Comcast and another with TiVo, each working with PayPal "to explore enabling new forms of payment on TV". Exciting stuff.
Will consumers embrace this new method of shopping and purchasing? "According to a PayPal survey conducted in October 2011, 49% of TV subscribers show an interest in purchasing goods and services linked to the content they're watching on TV, either directly from their television through their remote control, or on a smartphone or tablet." For me personally, I would be much more inclined to make that purchase off my tablet and reluctant to use my remote. Half the time, I am unsure where the remote is hiding while the iPad is next to me. I also foresee the tablet becoming the ultimate remote offering second screen capability to what is on the big TV.
For these companies, working with PayPal seems a nice first step. I am more intrigued by what Apple has planned for iOS 6 with Passbook. As a virtual wallet, it could become the way to purchase goods off the TV set, too. For the consumer, I wonder how many virtual wallets we will be willing to manage. How interesting the timing of these two announcements. Online purchasing is taking another leap forward.
Tuesday, June 12, 2012
Smart TVs Being Shipped But Are They Being Used
TV manufacturers are shipping their newest TV sets with internet capabilities. These "smart TVs" are becoming the norm of the features of an HDTV set. "Worldwide, nearly 20% of all TVs shipped worldwide in Q1 were smart TVs, with the highest penetration in Japan with 36% followed by China at 30% and Western Europe at 29%." In North America, it accounts for 18%. But just because a TV has these features, are they being fully utilized?
In our house, we are connecting to the web through other boxes attached to the TV. In fact, for my son, his Xbox is the platform for that connection. But his and our viewing habits are not limited to the big screen TV. We are watching internet programming through our iPad and iPod devices. In fact, for personalized viewing, these mobile devices are more ideal.
As more consumers see the variety, ease, and value of taking video through their smart TV, demand and viewership will increase, cord cutting will be greater, and a la carte choice will become the means for watching individual shows on demand. At the end of the day, web content will be ubiquitous, across every device in the home, on demand, and easy to view.
In our house, we are connecting to the web through other boxes attached to the TV. In fact, for my son, his Xbox is the platform for that connection. But his and our viewing habits are not limited to the big screen TV. We are watching internet programming through our iPad and iPod devices. In fact, for personalized viewing, these mobile devices are more ideal.
As more consumers see the variety, ease, and value of taking video through their smart TV, demand and viewership will increase, cord cutting will be greater, and a la carte choice will become the means for watching individual shows on demand. At the end of the day, web content will be ubiquitous, across every device in the home, on demand, and easy to view.
Monday, June 11, 2012
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.
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.
Friday, June 8, 2012
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.
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.
Thursday, June 7, 2012
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.
"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.
Wednesday, June 6, 2012
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.
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.
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.
Tuesday, June 5, 2012
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.
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.
Monday, June 4, 2012
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.
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