Fox News Returns To Dish

While this deal left Fox News off Dish for a month, both sides eventually negotiated a deal to return both Fox News and Fox Business News to the line-up.  And like other negotiations before it, the cycle is once again complete.  Of course, it is only a matter of time for the next cable operator and cable network to go through the same song and dance revolving around contract renewal, network drop, and eventual network re-launch. 

Given that Fox News is the number one rated cable news network, the only surprise may be just how long Dish held out before finally accepting a deal.  We may never know who blinked first, but it seems eventually one side always blinks. 

Live Event Programming Proves Successful

While it has been a few days since the big game, no not the Super Bowl, but the first ever National Championship Game between Ohio State and Oregon, the results have been nothing short of amazing.  Creating a big televised live event, drives users to actually schedule their lives around the viewing as opposed to watching on a time, or even a day delayed basis.  Viewers tuned in, on ESPN, giving them one of their highest ratings ever.  But what also was impressive was how much social media grew as well.  Facebook and Twitter saw huge momentum regarding comments and photos about the game. 

For ESPN, the investment likely paid off with substantial advertising during the game.  Whether social media players drew more revenue remains to be seen.  But live events, and those that deliver competition, draw viewership unlike anything else on television.  It certainly keeps viewers tied to their cable subscriptions to assure access to this programming. 

Just Sunday, we had the Golden Globes, another live event for those who love TV and movies and fashion.  And today's Oscar nomination announcements will lead to another live awards event show.  NFL playoffs are this weekend and the Super Bowl is just a few short weeks away.  NBC has used live Broadway type shows to drive viewership as other networks look deeper into their programming mix to devise other live event programming to pursue viewership and advertising dollars. 

With so many choices of content to watch today across so many platforms, live event based television continues to drive people back to their television sets, even if just for a night.  And once viewers are hooked, it is a rare chance to remind them through promotional ads, what other content is available on that channel.  Live programming is the successful hook to keep them tethered to their television set. 

Apple's Next Big Product?

With all the focus on the release of the Apple Watch, it is clear that Apple wants to continue to innovate and attract consumers.  And while they are not always first in a field, they always seem to put their spin on a product category and build a sizable market base.  The iPod is a great example of a product released after other electronic companies came out with their own mp3 players.  The iPod took market share and eventually the lead because of a design that intuitively worked easier than anything else on the market. 

And so with all the focus on the Apple Watch release, Apple received a patent on a Go Pro-like, "remote digital camera system that can be controlled from a smartwatch", according to Techcrunch.  How soon this product is released remains to be seen.  Still it shows that Apple continues to look forward to new opportunities and in the case of the Apple Watch, seeks to make that product as unique as possible. 

What could Apple name this new wireless remote camera?  While Apple never put the i officially into its Apple Watch, it could make a comeback with the iCam.  Or they will simply call it the Apple Camera.  Suggestions are welcome.  How about iShutter, ActionCam, AppCam, or MovieCam.  And as for GoPro, it seems more competition may be coming. 

Amazon On A Content Roll

Whether it makes money or not, Amazon continues to play in the content sandbox.  That investment led to two Golden Globe awards for its original series, Transparent, just a couple days ago.  Well success must breed success as Amazon has gotten the notable writer and director Woody Allen to agree to come back to the small screen after many years of movie making.  Per Gigaom, " the company announced it’s signed Woody Allen to write and direct a half-hour comedy series. It’s the first TV show Allen has done and will be available exclusively through Prime Instant Video in 2016."  And given the fan base, that could drive more Amazon Prime subscriptions as well. 

Apple Watch, Boom Or Bust

Today's Wall Street Journal reminds us that software ultimately drives the best hardware and as it relates to the future release of the Apple Watch, those apps could be amazing.  With wearable technology a hot topic from this year's CES, watches and other bands are already on the market, capturing heartbeats and steps and more.  But to hear tell it, beyond early adopters, nothing has truly broken the mold. 

So a lot of consumers as well as investors have their eyes on the Apple Watch ready to see if it delivers a home run just as the iPod, iPhone, and iPad certainly have done.  If the Apple Watch finds little appeal, the Apple cache may take a beating; but if it proves to be a winner, some "project the watch will sell 30 million units in its first year, increasing Apple’s value by more than 10% and adding more than $50 billion to its market cap." 

The Apple Watch will certainly look cool, but how it functions is all in the apps and coming up with functions that add real value to our lives.  As the iPhone has created some terrific uses, from holding electronically all my loyalty cards to easier payment with Apple Pay, the Apple Watch could extend some of that functionality to the wrist.  It might also let us chat with Siri to more quickly call up certain functions.  For the next couple months, we will eagerly wait to hear what uniquely the Apple Watch brings to our lifestyle.  Boom or bust, we will have to wait and see.

Apple's App Store Is The Secret Sauce

Apple recently announced its iPhone 6 sales and the increase in share in the smartphone market.  But whether it is the iPhone or iPad or soon to be released Apple Watch, what makes these products run are applications and content.  And with iTunes and the App Store, this software marketplace offer s the fuel to make Apple's technology that much more valuable. 

Apple certainly knew the value of the App Store and we know too.  According to Mashable, "Apple says billings for its App Store jumped 50% year-over-year in 2014, suggesting App Store sales totaled at least $15 billion for the year, based on the more than $10 billion in sales it did in 2013." How many companies would love to have a $15 billion dollar business that is growing at a rapid rate.  And with new iPhones and other new products on the way in 2015, the App Store should only continue to excel.  What is also amazing is that this little side business must have a huge margin with minimal operating costs. 

And despite not being a huge percentage of Apple's total business, it is becoming a substantial one on its own.  As more consumers embrace the Apple ecosystem, more consumers will rely on the online Apple store for software applications and content to keep running their technology.  And that is what the secret sauce is all about.

How High Def Should A Television Be

When Hi Definition TV screens came on the market, it was a quantum leap in television viewing for consumer.  No longer were we confined by a 4:3 panel, now with a wider screen and more pixels, pictures were sharper then ever.  We faced a choice between a plasma screen and LCD and as competition increased, prices dropped.  HD TV was a revolution in the TV experience.

But since then, improvements in the TV screen have been less than enchanting.  With the push toward 3D, we pushed back, not willing to invest in 3D goggles to put over our faces.  And at this year's CES, the push is on for the next evolution of high def, ultra hi def or 4K.  But can a picture get any sharper? 

It took a number of years for content creators to upgrade their programs to HD and most decided to not even bother with 3D.  So will content companies invest again to upgrade to an ultra HD output in order for these new TV sets to be worth their price?  Certainly the early adopters will pay more for a big screen ultra HD TV set, but the average consumer will not.  Even as Ultra HD prices drop, current HD sets will likely drop even more.  And today's millennials are consuming more content through smaller mobile tablets and smartphones anyway.  For me, I don't have the same desire to own an Ultra HD or 4K set like I did when HD TV were first introduced.  Eventually content will be created for 4K, but I suspect that adoption and sales of 4K sets will take a much longer time to occur. 

Digital Continues To Hurt DVD Sales, VOD Down Too

While digital media sales continue to grow, DVDs are not.  It seems that consumers are fully adopting digital sales and subscription media over ownership of DVDs and other physical media.  Not surprising as more televisions are internet ready, more computers have dropped the DVD slot, and consumers are enjoying easy access of content through subscription services like Netflix.  In fact, DVDs and blu-ray discs were down over 10% from last year.  That trend seems likely to continue.

It should be noted that when all the figures of digital and physical media are totaled up, "Total home-video spending was $17.8 billion, dropping 1.8 percent from 2013, according to the report in LA Biz.  This total decline may be partly due to a weak box office, according to the report, but other factors may also be a result.  Consumer spending in general and less dollars focused on entertainment verse other needs may also be to blame.  Like cord cutting and cord shaving, consumers may be using subscription services and digital to pay less but get more content. 

Another interesting note from the report, while consumers have pushed back on physical formats, they also pushed back on VOD.  Total sales fell 6.7% from last year.  Again cord cutting and cord shaving may be to blame with consumers preferring to watch on mobile devices and getting access to programming via You Tube, Netflix, Hulu, Amazon, and other OTT outlets.  Given the push of these subscription services, I would not be surprised to see VOD numbers to continue to drop in 2015.  Until cable operators create an alternative online platform that is added value to its wired approach and touts a true TV Everywhere mentality, VOD will only continue to find a backseat to digital. 

Will Cord Cutters Buy Sling TV?

At the CES, Dish announced the release of Sling TV, a $20 a month bundle of cable networks that include ESPN, Disney, Discovery, HGTV, and Food.  Dish isn't worried that their customer base will switch to this lower priced service and I doubt that cable operators will worry either.  Despite being at a very attractive price point, the new service will not include any broadcast networks, but does include an odd assortment of cable nets, with a little bit for every interest.  I'm not sure how appealing the service will be.

Sling TV will include ESPN, but that might not be enough for the real sports fan who would want all the regional and national sports channels.  The sitcom and drama fan might like TBS and TNT, but they would also want more from other channels like AMC and USA.  The news junky gets CNN but nothing else.  And homes with children might like that Disney is being offered but they most likely would want Nick and Sprout and others.  For me, Sling TV is a little bit for everybody, not enough for anybody.  It looks more like a starter package to upgrade later with a cable operator. 

As to the cord cutters and nevers, Sling TV may be the appetizer to return them to full cord status.  But for the younger demo raised on You Tube, Netflix, and other OTT programming, Sling TV won't offer much incentive to purchase the subscription based service.  And while an OTT service of linear cable nets sounds nice, these same consumers have become more accustomed to on demand of programming they choose to watch at the time they determine.  Will Sling TV become an instant success; I doubt it and will have to wait and see how it is received.