It is hard to get an accurate count when companies don't want to be counted. In today's Wall Street Journal article, Nielsen hopes to measure usage of both Netflix and Amazon Prime through its audio feed. And while it may garner some information, it comes across as half-baked. First, it only measure on connected TV sets, "Nielsen is still working on a way to measure subscription-video viewing on mobile devices, where such technology won’t work." And second that it is being done without Netflix or Amazon's support.
Of course, getting good data is key to essentially what content owners want to know, "Is putting content on Netflix impacting the viewership on linear and traditional VOD". But as more and more Netflix consumption is on mobile devices, the value of the research may be strained. Common sense may already tell content owners what they implicitly already know. Viewership is shifting from cable and broadcast to digital streaming media. Current research already confirms this trend.
Why doesn't Netflix or Amazon care to be measured by Nielsen. Their revenue comes from subscription to their services and not from advertising. Internally, they know who has subscribed and what they are watching. And so, doing a deal with Nielsen today doesn't seem to be a high priority for either service. For Nielsen and its customers, the data gleaned from this workaround collection process, via audio, may tell a story, just not a complete one. Content owners that are doing programming deals with OTT providers see it as another window of revenue opportunity.
And while it may create an issue of cannibalization that could hurt ad revenue in other windows, it can also help to draw new audiences. Case in point, Breaking Bad on Netflix of older seasons led new audiences to catch up on the series to then head over to AMC to watch the current season play out. A win for both platforms. And one day when Orange Is The New Black sells a cable distribution window, the buzz it has gotten from Netflix should draw large audiences and consequently ad dollars. And Nielsen needs to find a way to accurately measure all streaming usage.
Wednesday, November 19, 2014
Tuesday, November 18, 2014
NYC To Replace Payphones With WIFI
About a year from now, NYC will be offering free wifi access; sure Starbucks offers that now, but the city hopes to create a fast public wifi link using payphone kiosks to transmit a 150 foot perimeter in order to connect. And NYC hopes to profit from this new business venture through advertising on payphone kiosks.
Initially, I thought that such an ambitious plan would enable apartment dwellers across the city to ditch their cable company and get high speed access to watch Netflix and other content without paying an ISP provider. But 150 feet may not reach many people in their homes. At the same time, New Yorkers using that end up using the new wifi service will most likely have to be outside to access. Okay in the summer, less so in the winter. And wouldn't you rather sit down in a nice coffee shop than stand outside and freeze your behind off as you surf the web.
As to advertising, with so many digital billboards already overwhelming our senses in the city, it is hard to imagine that more kiosks will provide a positive ad experience. And per Mashable, "Users will only have to log into the network once, making the transition from one hotspot to the next seamless." Thus no real online ad opportunity.
Such a program seems beneficial to NYC residents with free wifi and free domestic phone capabilities. And if the radius of wifi access can be significantly expanded, a nice alternative to the cable and phone company; in fact, a potential competitor. But as a business, it is hard to see it being profitable for its owners. And while there is worry that a public wifi hotspot could affect our privacy, we have already accepted these wifi hotspots as we enter coffee shops, department stores and other establishments. It seems few of us care about privacy.
Initially, I thought that such an ambitious plan would enable apartment dwellers across the city to ditch their cable company and get high speed access to watch Netflix and other content without paying an ISP provider. But 150 feet may not reach many people in their homes. At the same time, New Yorkers using that end up using the new wifi service will most likely have to be outside to access. Okay in the summer, less so in the winter. And wouldn't you rather sit down in a nice coffee shop than stand outside and freeze your behind off as you surf the web.
As to advertising, with so many digital billboards already overwhelming our senses in the city, it is hard to imagine that more kiosks will provide a positive ad experience. And per Mashable, "Users will only have to log into the network once, making the transition from one hotspot to the next seamless." Thus no real online ad opportunity.
Such a program seems beneficial to NYC residents with free wifi and free domestic phone capabilities. And if the radius of wifi access can be significantly expanded, a nice alternative to the cable and phone company; in fact, a potential competitor. But as a business, it is hard to see it being profitable for its owners. And while there is worry that a public wifi hotspot could affect our privacy, we have already accepted these wifi hotspots as we enter coffee shops, department stores and other establishments. It seems few of us care about privacy.
Monday, November 17, 2014
Apps Changing Internet Usage
Today's Wall Street Journal reminds us that when we enter a particular app on our mobile device, we are essentially entering into a walled garden of specific information, disconnected from the open world wide web. According to the article, we have changed how we surf, spending more time with apps than with an internet browser. "On phones, 86% of our time is spent in apps, and just 14% is spent on the Web, according to mobile-analytics company Flurry."
And we have seemed to fall in love with our apps to find and share information fast. The article worries that once we are inside a particular app or walled garden, we are then subject to its rules and whims, limited by what the particular app wants to allow us to see or do. Most interesting to note, "The Web is built of links, but apps don’t have a functional equivalent." We stay inside the garden unless we choose to venture again outside to seek additional information. And unless we look outside the gates, we may not be exposed to new information.
The article certainly doesn't see apps as bad, but as perhaps the next development of a changing platform. The challenge is to find a way for openness to emerge. The author's conclusion seems a sound one. "It is that in the transition to a world in which services are delivered through apps, rather than the Web, we are graduating to a system that makes innovation, serendipity and experimentation that much harder for those who build things that rely on the Internet. And today, that is pretty much everyone." If that is the case, I'm sure brighter minds are working on new types of app search.
And we have seemed to fall in love with our apps to find and share information fast. The article worries that once we are inside a particular app or walled garden, we are then subject to its rules and whims, limited by what the particular app wants to allow us to see or do. Most interesting to note, "The Web is built of links, but apps don’t have a functional equivalent." We stay inside the garden unless we choose to venture again outside to seek additional information. And unless we look outside the gates, we may not be exposed to new information.
The article certainly doesn't see apps as bad, but as perhaps the next development of a changing platform. The challenge is to find a way for openness to emerge. The author's conclusion seems a sound one. "It is that in the transition to a world in which services are delivered through apps, rather than the Web, we are graduating to a system that makes innovation, serendipity and experimentation that much harder for those who build things that rely on the Internet. And today, that is pretty much everyone." If that is the case, I'm sure brighter minds are working on new types of app search.
Saturday, November 15, 2014
Verizon To Sell A Mobile Cable Subscription
With the purchase of Intel's OnCue business, Verizon is embarking on a plan to offer a mobile version of a cable subscription business according to Wireless Week. Using their LTE mobile spectrum, Verizon plans to deliver a cable-like platform of channels for consumers. And while launch date, subscription pricing, and other information is yet to be announced, it appears that Verizon sees an opportunity to attract cord cutters with a new approach.
Cord cutting continues to grow as 150,000 households shed their cable subscription as of July 1 of this year. According to Mashable, Time Warner Cable and Comcast were hit the worst. Verizon's new pay-TV service could further attract cable customers to shed their physical cord for a mobile cable experience. Verizon already understands the overbuild mentality as it markets its FIOS business in markets with cable providers. Verizon's mobile business could potentially cannibalize some of its own FIOS customers although cable opertaors are more at risk. And FIOS could market a mobile package that delivers the ultimate in a TV Everywhere approach.
As OTT continues to mature, and platforms like Hulu and Netflix attracting subscribers, networks like HBO, SHO, and CBS are developing their own OTT models. Verizon's mobile platform could be a boon to these networks and others. It may also allow Verizon to start over to build and bundle services that consumers actually want to watch at a price point that is acceptable to them. And if successful, this new business could truly disrupt the cable subscription model.
Cord cutting continues to grow as 150,000 households shed their cable subscription as of July 1 of this year. According to Mashable, Time Warner Cable and Comcast were hit the worst. Verizon's new pay-TV service could further attract cable customers to shed their physical cord for a mobile cable experience. Verizon already understands the overbuild mentality as it markets its FIOS business in markets with cable providers. Verizon's mobile business could potentially cannibalize some of its own FIOS customers although cable opertaors are more at risk. And FIOS could market a mobile package that delivers the ultimate in a TV Everywhere approach.
As OTT continues to mature, and platforms like Hulu and Netflix attracting subscribers, networks like HBO, SHO, and CBS are developing their own OTT models. Verizon's mobile platform could be a boon to these networks and others. It may also allow Verizon to start over to build and bundle services that consumers actually want to watch at a price point that is acceptable to them. And if successful, this new business could truly disrupt the cable subscription model.
Friday, November 14, 2014
Data May Be True King When It Comes To Success
Having content to view may not be the same thing as having content that people watch. And when it comes to measuring success, how many watch, who they are, what they like, and where they go may ultimately determine how successful any piece of content can be. The data behind the content, the analytics and insight derived from who is watching a piece of content is imperative to financial success. It is reminiscent of the adage asking if a tree falls in the forest and no one is there to hear it, did it make a sound. That data is crucial especially when it drives advertising dollars.
The buzz on measurement of content, whether linear, on demand, streaming, or download requires that it is properly being collected, that it is accurate and correct, and that the time frame in which it is collected is relevant to the process. And for media buyers, that reaching an audience is not just a size based proposition, but also efficiency to a segment of the population you are trying to reach, whether age based, gender, income, purchasing behavior, etc.
The system today seems far from perfect. Do we count live only views, Live and same day delayed, or +3 day or +7 views. Did the pre-roll play, was the sound on, was it fully visible, and is it a real impression? Questions of fraud remain part of the conversation. Still, with verified data, the value is essential in making content profitable.
The buzz on measurement of content, whether linear, on demand, streaming, or download requires that it is properly being collected, that it is accurate and correct, and that the time frame in which it is collected is relevant to the process. And for media buyers, that reaching an audience is not just a size based proposition, but also efficiency to a segment of the population you are trying to reach, whether age based, gender, income, purchasing behavior, etc.
The system today seems far from perfect. Do we count live only views, Live and same day delayed, or +3 day or +7 views. Did the pre-roll play, was the sound on, was it fully visible, and is it a real impression? Questions of fraud remain part of the conversation. Still, with verified data, the value is essential in making content profitable.
Thursday, November 13, 2014
Like iPods Product Line, iPhones Will Also Lower iPad Sales
Technological cannibalization seems to be the norm and no one is more aware of this impact than Apple. When they introduced the iPhone, many worried that iPod sales would be hurt. And they were right. But the innovation of the iPhone, while cannibalizing iPod sales, also enabled Apple to succeed. The same cycle is now repeating with the iPad.
While iPods continue to sell, they represent a smaller business then before. With the introduction of the iPhone 6 and 6 Plus, Apple recognizes that it will cannibalize sales of its iPad. In fact, it could lead to the drop of the iPad Mini model. At the same time, the iPad may fine more uses in business sectors then in the consumer market. And as iPhone sales makes iPads less desirable, they may also help sell more laptops.
With the MacBook Air and MacBook Pro getting lighter and more powerful, Apple users may find these products, linked with their larger iPhones as the perfect combination. MacBook sales in general have been rising as PC sales are declining. This trend seems likely to continue.
For Apple, they seem to have no problem letting cannibalization occur. It is in their best overall interest to not try to save declining products but to focus on the synergy of their total product line. With the introduction of the iWatch in 2015, that synergy is likely to continue.
While iPods continue to sell, they represent a smaller business then before. With the introduction of the iPhone 6 and 6 Plus, Apple recognizes that it will cannibalize sales of its iPad. In fact, it could lead to the drop of the iPad Mini model. At the same time, the iPad may fine more uses in business sectors then in the consumer market. And as iPhone sales makes iPads less desirable, they may also help sell more laptops.
With the MacBook Air and MacBook Pro getting lighter and more powerful, Apple users may find these products, linked with their larger iPhones as the perfect combination. MacBook sales in general have been rising as PC sales are declining. This trend seems likely to continue.
For Apple, they seem to have no problem letting cannibalization occur. It is in their best overall interest to not try to save declining products but to focus on the synergy of their total product line. With the introduction of the iWatch in 2015, that synergy is likely to continue.
Wednesday, November 12, 2014
Net Neutrality Laws Not The Answer
Do we have a problem with our internet, the simple answer is yes. But regulating access to assure that all content gets equal access may not be the correct course. As many like to say, too much government interference, limits growth, and if treated like a utility, would hamper innovation. Our problem is not that some traffic on the internet superhighway gets clogged; rather, that the whole highway is a traffic jam.
As the Huffington Post pointed out last month, "Americans pay far more and get far less when it comes to the Internet than many other people around the world." Broadband connectivity in the United States is more expensive than other countries and our overall speeds are slower, too. With more and more devices trying to get online, the highway can come to a noticeable stop. In my home, watching a video on a tablet causes other computers in the house to stop loading web content. Too many users on a cable broadband line slows overall speeds.
How do we improve the broadband highway. Not through regulation, but by lowering the barrier to competition. Eliminate cable franchises and open spectrum. Let overbuilding encourage more competition. More competition drives better pricing models and gives consumers more choice. Too much regulation is not the answer. We've recognized the problems but need better solutions.
As the Huffington Post pointed out last month, "Americans pay far more and get far less when it comes to the Internet than many other people around the world." Broadband connectivity in the United States is more expensive than other countries and our overall speeds are slower, too. With more and more devices trying to get online, the highway can come to a noticeable stop. In my home, watching a video on a tablet causes other computers in the house to stop loading web content. Too many users on a cable broadband line slows overall speeds.
How do we improve the broadband highway. Not through regulation, but by lowering the barrier to competition. Eliminate cable franchises and open spectrum. Let overbuilding encourage more competition. More competition drives better pricing models and gives consumers more choice. Too much regulation is not the answer. We've recognized the problems but need better solutions.
Monday, November 10, 2014
Obama Wants Net Neutrality
With two years left on his presidency, President Obama has decided now is the time to speak out on net neutrality. He has asked the FCC to pursue full net neutrality and to enable free and equal internet traffic for all. Whether a data heavy, video driving site like Netflix or a low graphics, easy downloaded website, consumers should be able to access both equally as fast. No HOV lanes, no slow downs by ISPs. I'm almost surprised that he didn't try to have all broadband as a utility, subject to the same rules as water, gas, and electric.
The real challenges for the US regarding internet access are speed and price. Shouldn't more be done to encourage wire and wireless competition. Is net neutrality the better policy course to driving innovation and superior service? Shouldn't the FCC focus instead on opening up more spectrum for more ISPs to enter and compete for users. If internet speeds can be improved, then all traffic will thrive, whether they are in a slower or faster lane. Then how fast any one piece of content is over another will be meaningless if there is no perceptible difference.
The real challenges for the US regarding internet access are speed and price. Shouldn't more be done to encourage wire and wireless competition. Is net neutrality the better policy course to driving innovation and superior service? Shouldn't the FCC focus instead on opening up more spectrum for more ISPs to enter and compete for users. If internet speeds can be improved, then all traffic will thrive, whether they are in a slower or faster lane. Then how fast any one piece of content is over another will be meaningless if there is no perceptible difference.
Friday, November 7, 2014
Should Cablevision Seek A Buyer?
Cablevision announced its third quarter financials and the news suggests trouble. While revenues rose through price increases, growth has stopped. Like other cable operators, Cablevision faced another quarter of cable subscriber drops, losing 56,000 households. The trouble for Cablevision is that while other cable operators see growth in their broadband subscribers, they encountered a drop of 23,000 homes. That spells major trouble. Price increases to current homes may mask some concern, leading to Q3 revenue growth of 3.7%, but continued cable and broadband subscriber drops cannot be overcome with more price increases. The dam may be ready to burst.
So is there an exit strategy? Is CEO Jim Dolan still committed to Cablevision or is he willing to finally jettison the asset and concentrate on his main loves, MSG and his music? Do they have the ability to right this ship? Or is it time for Cablevision to find a buyer?
Cablevision lost a strong leader in Tom Rutledge a few years ago when he left Cablevision to run Charter. Could Ruttledge be interested in acquiring Cablevision and once again taking control over the troubled empire? With Comcast and Time Warner Cable busy on their merger plans, Charter could be the likely front runner. And Rutledge seems to have the Midas touch when it comes to cable operations. Given Cablevision's stumble, the timing might be right to consider making a bid. And the answer to the title is yes, Cablevision should start seeking a buyer.
So is there an exit strategy? Is CEO Jim Dolan still committed to Cablevision or is he willing to finally jettison the asset and concentrate on his main loves, MSG and his music? Do they have the ability to right this ship? Or is it time for Cablevision to find a buyer?
Cablevision lost a strong leader in Tom Rutledge a few years ago when he left Cablevision to run Charter. Could Ruttledge be interested in acquiring Cablevision and once again taking control over the troubled empire? With Comcast and Time Warner Cable busy on their merger plans, Charter could be the likely front runner. And Rutledge seems to have the Midas touch when it comes to cable operations. Given Cablevision's stumble, the timing might be right to consider making a bid. And the answer to the title is yes, Cablevision should start seeking a buyer.
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