Not that TV viewership is in a death spiral, but it should be noted that TV viewing through the television set is declining. And while the older generation continues to watch at the same levels, it is the younger generations that are bypassing television for other platform consumption. The Wall Street Journal notes that "The viewing slump suggests traditional television is being hurt by intensifying competition from online video outlets such as Google Inc's YouTube and Netflix Inc." But according to the networks, the news isn't all that gloomy. They believe that there is still DVR viewing that will improve these disappointing figures.
For content creators, it doesn't mean that viewers don't like what you are developing, just that they have found alternative platforms to use to watch. Why watch AMC Network's premiere of Breaking Bad when you can watch it at your convenience at a later time through your cheaper Netflix subscription. Except for live programming such as sports, there is less and less desire to watch at the premiere date. Rather consumers can decide at any later point when they wish to watch and where and how to view it.
Should broadcast and cable be worried about this viewership drop. For some, perhaps. "Some big-name cable channels have also experienced sharp declines in the 18-49 demographic, with a 41% decline at MTV and a 27% drop at Comedy Central, both owned by Viacom Inc., and a 13% drop at News Corp's FX. Meanwhile, cable news channels like Fox News, CNN and MSNBC have drawn larger audiences as the presidential election approaches in November." Live breaking news encourages television viewership, but shows like South Park or The Daily Show are just as easily watched away from the television.
And as radio changed as television became more rooted in the home, so too must television programming change as the web takes more of an audience. Perhaps it means bringing back live drama and sitcom TV where the possibility of "an anything can happen" approach makes folks want to watch. Or television has to build up some exclusivity of its content that limits how people can watch. As web programming moves from more short form to long form shows, the threat to broadcast and cable will only get greater.
Friday, October 12, 2012
Thursday, October 11, 2012
For Sale: Premium Network Seeks Like Minded Partner
Liberty Media and John Malone are keeping pretty busy these days. In one corner, they are actively buying shares of SiriusXM while planning a spin off and hopeful merger of Starz with another programmer. "Speculation of a possible future sale ran high shortly after the spin announcement, with some reports that Time Warner Inc.’s Home Box Office unit or CBS’s Showtime premium channel could be possible suitors. Other possible suitors include Comcast (which controls the NBC Universal partnership), News Corp., The Walt Disney Co., and Netflix."
My question is where the value may be for a merger, in the content license deals that Starz owns or in the distribution of its service across cable operators. Does HBO or Showtime really want to manage another distribution channel or do they like the content deals that Starz can bring to their respective premium channels. For folks like Comcast and Disney, I think that it is the subscription revenue that Starz offers and the opportunity to build another vertical path from content creation to distribution.
I also wonder why is Liberty Media willing to sell their asset. Does the premium window no longer interest them? According to Malone, "Unfortunately, other than financial synergies, Liberty really can’t provide Starz with much in the way of operational synergies in this space in the U.S.” Doesn't the same hold true for its other programming entities like Discovery and QVC? Clearly, there may be other reasons stoking this strategic change.
My question is where the value may be for a merger, in the content license deals that Starz owns or in the distribution of its service across cable operators. Does HBO or Showtime really want to manage another distribution channel or do they like the content deals that Starz can bring to their respective premium channels. For folks like Comcast and Disney, I think that it is the subscription revenue that Starz offers and the opportunity to build another vertical path from content creation to distribution.
I also wonder why is Liberty Media willing to sell their asset. Does the premium window no longer interest them? According to Malone, "Unfortunately, other than financial synergies, Liberty really can’t provide Starz with much in the way of operational synergies in this space in the U.S.” Doesn't the same hold true for its other programming entities like Discovery and QVC? Clearly, there may be other reasons stoking this strategic change.
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.
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.
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.
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.
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.
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.
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.
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