TV Viewing On Your Terms

According to the Leichtman Research Group, " 76% of U.S. homes have a DVR, subscribe to Netflix or use video-on-demand from a cable or telco provider …26% of homes use two of those services, and 11% use all three ".  As for my household, we are in the 11%.  We are getting more comfortable with technology in the home and more apt to use it more frequently.  Income levels certainly play a part in this research study, as indicated.  But I would also like to know if geography also is an issue.  is DVR, VOD, and Netflix usage higher in major cities than in rural markets.  And is Netflix access taken more through broadband access or by cellular.  Clearly, the study demonstrates a trend toward ubiquitous behavior. 

(76%) of U.S. homes have a DVR, subscribe to Netflix or use video-on-demand from a cable or telco provider - See more at: http://www.multichannel.com/news/technology/76-homes-have-dvr-netflix-or-use-vod-study/386584#sthash.zFv2q2Xu.dpuf

(76%) of U.S. homes have a DVR, subscribe to Netflix or use video-on-demand from a cable or telco provider - See more at: http://www.multichannel.com/news/technology/76-homes-have-dvr-netflix-or-use-vod-study/386584#sthash.zFv2q2Xu.dpuf

We've Got A Security Problem Here

2014 may best be known as the year of the hacker.  Most prominent has been the hacking of Sony, causing personal emails to be shared, a movie to be denied, and threats to be held on management.  And most recently, Sony's Playstation network and Microsoft's XBox network have both been hacked as well, resulting in an overloading of those systems.  Gamers are furious and we can all fear that 2015 will consist of even more cyber security problems. 

The simple truth is that our internet security is at risk for all of us.  As long as we are connected to the web, we are subject to potential hacking of our private data.  And there are so many different ways that hackers try to get us, from bogus emails to tapping our devices when we use an open WIFI connection.  Secure is simply not secure enough.  And from individuals to huge corporations like Sony, we have huge security issues.

For some, the idea of hacking is just a game, a challenge to see if you can break the code.  But for others, the purpose of hacking may be more sinister.  Locks and passwords may not be enough; if there is a will, there seems to always be a way to break the code.  Isn't that what the movie, The Imitation Game, is all about.  Whether for good or evil purposes, many love the idea of a good challenge.  And we are constantly facing threats to our cyber data. 

2014 may represent a pivotal mark, but it wasn't the first.  Last year, it was Edward Snowden that shared classified government information.  We also had the hacking of financial data from The Home Depot and Target. And next year, I am quite certain that more corporations will face similar hacking issues.  We should all be worried; unfortunately, as long as their is secrecy and privacy, there will be others trying to expose it.  For good or evil purposes, it will be a constant in our lives. 

Another Year Ends, Another Network Blackout

What would an end of year be if a cable operator and a cable network weren't in the midst of a license fee renewal.  It seems that it is a constant occurrence with always the same outcome, a network or two gets dropped for a period of time and then it is reinstated at a later date. This year the battle is between Dish and Fox regarding just two of its channels, Fox News Channel and Fox Business Network.  As of this moment, carriage agreements have expired and both have been pulled from the Dish line-up.

And like before, there is the necessary pr and paid advertising telling customers their side of the story in a time where consumers are simply tired of being part of every battle.  Frankly a no win scenario.  Some consumers switch cable operators as a result of the loss of channels, most remain.  Dish and its customers are used to such drops and re-launches.  Remember the AMC fight, the CNN battle? The dance is ongoing with short term suffering for fans of those respective networks.

Of course there are two sides to every story and the cost of cable programming certainly drives at the heart of such negotiations.  Operators will have a hard time paying to carry every possible linear network; those costs cause cable bills to rise.  Sports are a huge component of those costs, yet those networks are the hardest to drop.  Also because most major networks are owned by multi network businesses, leverage becomes a big factor in driving all of its networks to be launched.  Don't think Fox won't use pressure from its Fox Broadcasting, Fox Sports, FX, and others to drive a Fox News and Fox Business renewal.  Size does matter in these fights.  For now, Dish customers have lost access to a couple channels; in the long run, they will be renewed and added back to the line-up.  It is how the dance is done.

Apple iPhone Portends Good Things To Come

With Apple's release of the iPhone 6 and 6 Plus, it regained market interest and put tons of pressure on other smartphone companies.  The latest iPhone release could also generate over 70 million units just in this latest quarter.  And with that number on the street, Apple should see even more good news in 2015.

For one, the release of the Apple iWatch likely requires the iPhone 6 to fully function.  With 70 million plus in sales, the iWatch could prove quite popular. In addition, Apple Pay also requires the latest iPhone.  With security issues facing us today and credit card numbers getting hacked as well, Apple Pay will enjoy increased acceptance and usage.  And that spells another driver in Apple revenue next year.  Lastly, more converts to the iPhone means more usage of the app store and growth in iTunes revenue.  A Beats music subscription might just attract new users too.

Beyond the iPhone and another model in late 2015, Apple will surely update its laptops, Apple TV, and iPads.  With schools embracing Apple computers and tablets and IBM partnering in enterprise applications, Apple can make significant inroads in new industries.  And lastly, Apple might actually surprise some of us with an Apple smart television set.  You never know. 

Dish Finds a Frenemy With Netflix

Demonstrating that cable and streaming content can live side by side, Dish Network has become the first major cable distributor to include Netflix on its set top box.  And like HBO or Showtime, Netflix will be treated as an add on package, purchased separately.  Consumers though don't need to jump from one box to another to enjoy all the content they want.  By including the Netflix app, Dish gives its customers convenience and simplicity in watching whatever content they choose. 

Per the Dish press release, "Additionally, in the future, titles available on Netflix could be integrated into the search functionality across live, recorded and Video On Demand programs for both the Hopper as well as DISH’s forthcoming OTT service."  To me, a fully integrated search feature encompassing all content on Netflix and cable would be truly valued by consumers.  Partnering with Netflix, Dish demonstrates that consumers simply want more content wherever accessible and that consumers will not drop Dish but value the content that is being offered through the set top box. 

Avoiding TV Ad Interruptions

As the holidays approach, gifts may include new Apple TV, TiVo, or Roku boxes, a Slingbox or Hopper or two, a subscription to Netflix or other services designed to help us avoid ad interruptions.  These products are popular, not just because they let us watch TV shows and movies, but because they let us skip through or avoid television ad messages.  And the more comfortable we get using these outlets, the more we seek them for our viewing pleasure. 

For content obtained off our TV, it is just as easy to record first and watch later with our finger pressed on the fast forward button every time an ad appears.  For cord cutters and those watching through OTT platforms like Netflix and Amazon Prime, shows can be viewed without ever an ad in sight.  We pause when we want to and not because an ad is present.  And so as TV ratings decline and we watch our shows on our DVR or mobile device, we can enjoy all our shows without those dreaded commercial break.

For advertisers, the challenge becomes watching ad rates go up for spots on linear TV viewing while viewership declines.  The economics seem off.  Consumers have grown tired of these ad interruptions with the only exception being big event programming like the Super Bowl where the ads become more interesting and note worthy.  For almost all other times, they are an intrusion. 

This trend toward ad skipping and ad avoidance with subscription programming will only continue to grow.  The current model seems broken and it may now be time to revisit the TV ad model.  Branded entertainment, product placement, show sponsorship may now become the ideal means to assure that advertised brands get noticed regardless of where or how the content is being consumed.  You can't avoid ads baked into the content of the show.  Till then, ad avoidance seems like to continue to grow.

The Digital Age At A Crossroads

While Sony's latest movie release, The Interview, may lack any sense of good taste, it is certainly in their right to produce and distribute it.  Why they chose to use an assassination of a live foreign leader, no matter how notorious, is beyond understanding.  But freedom of speech certainly gives them the right, even if it lacks a certain common sense.  Would the movie have even gotten made if it was about a current domestic leader?  Highly doubtful.

Still, two wrongs don't make a right and the work of hackers to infiltrate Sony and release sensitive information from their computers clearly crossed the line as well.  Worse comes threats made from these same hackers alluding to loss of life at movie theaters that go ahead and play the film.  Given such threats, some movie houses have already canceled showings of The Interview. 

The problem with all of this is that by succumbing to these hackers and their threats, it sets a dangerous precedent for future hackers to follow the same playbook.  Like they say about secrets, the moment you share something with someone else, it is no longer a secret.  And the moment we communicate digitally, it is there for eternity.  It may be meant to be shared with one or a few, but like secrets, others will try to access it.  In a world of great freedoms of expression, we sometimes forget our manners.

To the hackers exposing Sony secrets and threatening lives, one wrong move does not condone another.  And as a society, much must be done to stop these hackers from succeeding.  Not so this particular movie can play but that our freedoms remain intact.  And in the future, perhaps as a society we need to regain our politeness, our moral fiber, our consideration of others, for once something is said, it is there for an eternity. 

NBC Playing Nice With Corporate Parent

While CBS seeks to drive additional revenue through a subscription digital network service, NBC Broadcasting has chosen a different route.  Perhaps it is due to NBC being owned by a cable operator, but it also aligns both the programmer and distributor to the same synergistic goals, driving total revenue by backing an authenticated TV Everywhere platform. 

According to today's Wall Street Journal, "NBC is launching a live stream of its broadcast network, part of a broader effort at parent NBCUniversal to make more of its content available online via computers and mobile devices."  Not too many details in the article, notably if the signal will correlate to the subscribers home geography and its affiliates signal, or simply a national feed of the network.  And likely, there will be shows blacked out, including Sunday Night Football and other possible exclusions.  Other questions are whether it is just a live linear feed or if there will also be an on demand component.

Still, despite limited details, the approach by NBC clearly takes into account its parent company, Comcast Cable.  Requiring access to authenticated cable subscribers means added value to cable and an attempt to stop or slow down the rate of cord cutting.  Rather than be a revenue creator like the CBS or even HBO GO models, NBC is supporting the broader cable revenue model with hopefully greater total returns.

As to the marketing of the new authenticated service, NBC doesn't seem to like the TV Everywhere tag.  I agree.  It is reminiscent of the challenges that have plagued cable with the on demand tag being used in so many places it lost any traction with the cable brand.  But I'm not sold on “Watch TV Without the TV" either.  In a world of initials, perhaps branding it as "TVE" might be an interesting way to brand the digital feed of all its networks.  Brainstorming other phrases like Digital Broadcast (Cable) Everywhere.  Still, slowly but surely, TV Everywhere will one day become commonplace. 

Do I Know You?

Spam exhausts me.  From robo telephone calls to emails to regular mailings, I find the scope exhausting and unnerving.  And I suspect that most of you feel the same.  Its intrusive, and worse, a lot of it are scams. 

Lately, one such robo call, and you know who they are because it takes a couple seconds after you say hello for it to switch to either a live person or automated message, responds to my hello with the phrase "Don't hang up...".  I have no idea what comes next because I always hang up.  Another call that I get comes from someone who tells me that my pc has a bug and they have been notified to get in touch with me to help fix it.  Right!  Or you might just win that dream vacation!

On the email front has come a number of requests from Dropbox to tell me that a friend has sent me a file to open.  At first glance, one might click the hyperlink but truth is, the email does not come from Dropbox.  For each of these suspect emails, a quick look at the full email address indicates that it actually comes elsewhere, with many addresses containing the .edu email address.  Spam bank emails also want me to open some attachment too.  But the worst are the ones that look like they come from someone you may know, but clicking on the email address shows that only their name was borrowed, not their true email address.  At times, I believe I get more spam emails a day than real ones.  Delete, delete, delete.

I suspect that the many attempts occurring these days from spammers/scammers must ensnare a few or more people each day.  A shame for the unsuspecting who should be careful what they click or share with unverified accounts.  Unfortunately, its looking to be a growing business.  So be careful what you click.