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Wednesday, October 10, 2012

Slingbox Gets An Update

Do you travel frequently?  Do you wish you could watch your shows on multiple devices outside the home.  If you can't wait to watch shows when you are resting comfortably in your own home, then Slingbox may just be the right box for you.  And it's redesign includes an added benefit, the ability to push content from your smartphone and laptop back to the Slingbox and the TV set.  "Both products support up to full 1080p HD-quality streaming of live or recorded TV programming and Ethernet connectivity. In addition, the 500 -- which looks like a conventional set-top box that has been twisted in half -- includes HDMI inputs and outputs, plus dual-band Wi-Fi."  So Hi Def and a new design.

Echostar and Slingbox hope this new product will expand its audience reach beyond "sports fans and techno-geeks”, according to their VP of marketing.  Still, like TiVo, their biggest source of growth will be working with other cable operators to integrate their software into the cable box that currently controls the home.  If not, then the marketing push will be demonstrating just how easy the box can plug and play with the current box sitting under the TV set.

Tuesday, October 9, 2012

iTunes Meet Google Play, On Demand Meet Streaming

Movie night in America, when the family settles down in front of the TV to watch a movie together.  But that situation continues to take many twists and turns.  Today, the tablet and laptop allows more individuals to watch their personal favorite show and no longer need to let majority rule for the control of the content.  And on demand, cable's choice for movies and TV shows on the television set is being usurped by online streaming.  In fact, the rise of the connected TV means that these same web streaming shows can be shown on the television as well as on a mobile device.  The future growth of on demand will compete head on with iTunes, Amazon Prime, Netflix, and Google Play.  "Google TV launched initially back in 2010, a service co-developed by Intel, Sony and Logitech. Now, in an announcement on its blog earlier today, the Internet giant said it would be rolling out the content on its smart TV platform over the coming weeks, starting today."

Big news for Google, more competition in the streaming space for Apple and iTunes.  Certainly Apple fans have been waiting to hear more news about Apple TV.  As these competing services gain more content, they demonstrate that the iTunes model can be copied and their size can be matched.  With so much choice of content to view, consumers will have to decide which service provides the right assortment of content accessible, which service is easiest to navigate, and which service provides an ergonomically better usage and viewing experience.  All this while the cable box, and on demand struggle to compete for consumers with its clunky technology and difficult navigation. And with the rise of tablets, the edge may just to streaming media.



Monday, October 8, 2012

Online Channels Growing To Compete With Cable

Can the rise of online video channels disrupt the current model of cable TV or can both live peacefully together?  Certainly broadcast survived the growth of cable although eventually broadcast networks had to buy their cable counterparts.  With the growth in online video, consumers may be excited to have more choice or they may decide that they don't need cable TV and will continue to cut the cord to their cable subscription.

The disruptive change is coming from Google and their video arm, You Tube.  "Acting more like a TV network every day, YouTube says it will pay money to professional producers of more than 60 new shows it is adding through its YouTube Originals program in the UK, France, Germany and the US."  And You Tube is spending tons of cash to support these endeavors to create original content on their online distribution platform. And while the content quality will improve with professionally produced video, the other side of You Tube, consumer generated videos, may just be relegated to lower placement or worse, lose their place on the platform.

As these original You Tube programs become long form, 30 minutes or longer, they will truly compete head to head with cable television viewing.  With only so many hours in the day to watch, attention to cable will be diverted to online just as, years ago, cable TV diverted attention from broadcast channels to cable programming.  How will the networks respond?  Most likely, an even more truly integrated TV Everywhere approach to assure that all linear content is accessible across multiple devices, both inside AND outside the home.  Today, some cable operators only offer access to mobile devices inside their home.  Networks and Cable Operators may also have to consider buying up these upstarts in order to have more contact in the space. 

As online video takes root, the likely end scenario will be that the big broadcast networks will have the largest audiences as they will have a true TV Everywhere model. The best online video will most likely be behind a pay window and the cable model, if flexible to more a la carte, build your own line-up of channels type of model, could be most customer friendly and successful.  The content model frankly cannot live on advertising revenue alone.  The need for a second stream of revenue, like a subscription service, is necessary to pay the bills.  Without it, the online video model cannot continue to attract the top talent; eventually they all want to be paid more. 

Friday, October 5, 2012

The Washington Post Loves Cord Cutters

If you have successfully weened yourself from cable TV and the various news outlets, then you may have already found alternative sources for your news fix.  But if you haven't or need another push to cut the cord on your cable subscription, The Washington Post may have the answer.  "The Washington Post’s new daily news show The Fold is interesting for a number of reasons: It debuts on Google TV and was made specifically to be viewed on connected TVs, and its target audience are cord cutters who don’t watch cable news anymore."  Will a 15 minute news program satisfy your need?  For those that keep their TV tuned to MSNBC or Fox News, it frankly may not be enough.  But it may be the first step in a 24 hour, online only, linear news stream.

Blockbuster Has No Future

When Dish Network purchased Blockbuster a year and a half ago, the thought was that they would be able to build up a rival streaming business to Netflix.  And despite Toys R Us now announcing their entry into the video streaming space, Dish has decided their is no future streaming business for Blockbuster.  "Dish no longer has plans to use Blockbuster as a nationwide video streaming or DVD-by-mail service, (CEO Charlie) Ergen said."  An interesting decision considering Coinstar and Verizon are now developing their own video streaming business.  What has changed for Dish?

While Ergen did not say what those future plans are, one has to wonder if the plans are simply to shut it down.  "The company has other plans for Blockbuster on which Ergen declined to comment. Dish has spent 'a lot of time' talking with cable networks about an Internet streaming service for live programming, although the service is probably still 'years away,' Ergen said. 'Worst case, we’ll take our money after having wasted some time, not much money, and life goes on,' Ergen said."  As relationships in general between Dish and cable networks have been less than warm, it seems more likely that the reality is closer to a shut down or sale of Blockbuster.

Overall, the streaming space seems already crowded with platforms selling the same video libraries - Apple, Netflix, Amazon, Wal-Mart, Toys R Us, Coinstar/Verizon, etc.  While Blockbuster has a brand value, it may also suffer from being a brick and mortar experience with dvd rentals and not an online identity.  And the struggle of changing its value proposition from store front to a digital business is what ultimately hurt Blockbuster's chances for success.

Thursday, October 4, 2012

Toys R Us Continues Its Push Into Digital

The video streaming business just got more crowded with the arrival of a brand new service from Toys R Us (TRU).  On the  heels of its announcement of its own tablet, TRU will be streaming television and movies under a rental model.  " The site will be powered by Rovi (ROVI)Corp, a digital entertainment technology company." Future plans include apps for Apple and Android devices, as well as their own Tabeo tablet.

Unfortunately, it is a very crowded field already dominated by iTunes, Amazon, and Netflix, with Wal-Mart's Vudu pushing its service as well.  If the titles being offered are all the same, won't customers simply be motivated to seek the lowest priced streaming service.  TRU must also contend with building a video streaming library of comparable size as its competition.  It is hard to imagine that customers will want to use too many different platforms to serve their video consumption strategies.  Netflix and Amazon have built an all you can eat buffet of videos while Apple likes to sell a la carte.  How TRU differentiates its service is crucial to gaining a measurable market share.

Wednesday, October 3, 2012

Motorola Drops Patent Suit Against Apple

The news that Google's Motorola unit was dropping its suit against Apple must be somewhat attributable from Sun Tzu's, "The Art of War". There are times to attack and there are times to withdraw.  And Google must have assessed their chances and given the recent ruling against Samsung, determined that their best move was to retreat.  "In a brief filing with the International Trade Commission on Monday, Motorola Mobility said it was dropping without prejudice a complaint that Apple had infringed on seven Motorola patents."  And so another patent fight with Apple is over and points again to an Apple victory.

Of course The Art of War also says  that strategies continue to change and a withdrawal one day may only lead to a direct confrontation in other ways.  And in a competitive environment, there are differences in a battle victory and the entire war.  Competition between Google and Apple does not end with this patent fight; the war is still on.

Tuesday, October 2, 2012

What Makes A Popular TV Show

The new TV season is here and networks are pushing their promotional blitz touting the most watched, funniest, best show on TV.  And TV execs scour the ratings the day after their show airs to see just how popular and successful their show is.  For some, it may determine whether the show gets picked up for the year or cancelled after only a few episodes.  TV execs have become less and less patient to let a show find its legs and its audience.  Some shows get lucky; Seinfeld really took till its third season to become a hit.  It was the pushing of certain execs that kept it going when it would have been too easy to cancel.

Today, those same execs might want to practice more patience because it is not just ho many are watching their show live, but also how many are watching their show on a delayed basis.  " The biggest takeaway in the television business from the season’s first week is that first impressions of a new show’s success may mean next to nothing now. With about 20 percent of viewers watching episodes of network series on a delayed basis, the initial ratings have to be seasoned with much larger quantities of salt."  I count myself among those 20% and I suspect that number is higher.  Between DVR and on demand, there are many shows I want to watch.  Two of them are on my DVR and are almost a week old, but I intend to record them and get to them even if I fall two or even three weeks behind.

The pleasure of watching shows on my schedule and not the networks is appealing, both because I can watch when it is most convenient to me and that I can watch and fast forward through the commercials.  In fact, it is becoming rarer for me to watch live shows, except for sporting events and award shows.  And so networks need to take total viewing into consideration, not just live, not just 3 days delayed, but in much longer  periods than even 7 days.  Add to that the online and on demand viewing of previous seasons and shows can actually start to demonstrate a growing audience appeal.  Heck I still need to watch the first season of Homeland to catch up to this season's story.


Monday, October 1, 2012

When Will We No Longer Need To Carry Credit Cards

The latest Samsung smartphone commercial shows two people sharing a playlist, not songs, just a playlist.  Not as cool as it should be.  So when will a commercial show a person bumping phones with a store register to authorize a sale?  Now that would be pretty cool.  But we haven't gotten there yet.

Certainly, we are leaning that way and the discussion of mobile payment is a first step.  But most of the apps being discussed still involve a piece of plastic being swiped by a device.  Whether a credit card reader at a store or a device on a smartphone, a physical swipe is still a requirement.  For small businesses and individuals, an app like Square certainly provides a cheaper rate to process than dealing with credit card companies directly.  That rate must certainly rise or it will undoubtedly cause bigger merchandisers to complain about paying more more transaction, despite the large amount of business they deliver.

Can we find ourselves one day leaving our plastic credit cards in a drawer and not in our wallet?  The latest iteration of the iPhone decided not to add an NFC to the mix.  For Apple, it sees that the world is not yet ready for such interaction.  But it is heading that way.