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Wednesday, March 9, 2016

Patience Is No Longer A Virtue

We are no longer a society that reflects patience; rather, instantaneous is our mantra.  Like Veruca Salt in Willy Wonka, "We Want It Now!"  From technology to politics to business, we expect results immediately.  We have no patience for time to allow change to occur.  Broadband must be faster, cars must drive quicker, politics must immediately address and respond t needs, and changes must be immediate.  We have no patience to wait.

TV is no longer linear, it is on demand and streaming.  A letter takes too long to send, a fax somewhat faster, an e-mail more immediate, but a text is instantaneous.  Can't wait a day or two for a package, a drone may help lessen the time it takes for it to arrive.  Time has become our great enemy.  Speed is essential.  And when it doesn't arrive quickly, we become angry.

And our children, seeing us adapt to quicker outcomes, expect it too.  They have learned from adults that our expectations are higher, our drive for immediacy, intense.  We have certainly benefited from these time saving, but we have also started to forget to breathe, to let things play out, and to use time to our advantage, as a way to process and think and learn.  Especially that patience can be a virtue. 

Tuesday, March 8, 2016

Google Fiber, What Happened?

The rise of broadband and the threat of cord cutting seemed to be the perfect recipe for Google to enter into a market and attract cable subscribers to its fast internet pipeline.  First launched in Kansas City and then pushing out to other markets, Google was the big new entrant that could truly upset the apple cart.  But for all the significant investment and buzz, the results have been less so.

According to Multichannel, "Google Fiber ended 2015 with just north of 53,000 video subs, according to a blog post from MoffettNathanson analyst Craig Moffett that pointed to fresh data from the U.S. Copyright Office."  Cable operators must be heaving a sigh of relief.  As other overbuilders have learned, it is hard to come into a community and take from the incumbent.  Was the deal not enough for consumers to switch?  Did the marketing message fail to hit its mark?  Or are we looking at a quiet launch, and the numbers don't yet fit the potential? 

The other thing to note, is that the Google Fiber number reflects the launch of video subscribers and does not report broadband customers.  Regardless, cable operators in these markets shouldn't laugh too hard.  Google has deep pockets and has shown a willingness to invest in projects for long term outcomes.  The fight may have started slow, but it is likely to be a lot more rounds. 

Saturday, March 5, 2016

More Cable Network Drops

If you are searching for Yankee preseason games on YES on your Comcast channel line-up, keeping looking.  A contract dispute has led to the dropping of the channel.  And except for press stories, no word from Comcast to its customers or any rebate for the dropped service.  But they are not alone; droped networks are part of the fabric between cable operator and cable network in the game of contract negotiations and renewal.

More recently, AT&T's U-Verse cable networks have dropped Univision, Galavision, and others in the contract dispute as well.  That drop affects about 6 miilion subscribers although their acquired DirecTv customers are not impacted.  DirecTv operates under separate contracts from U-Verse.  It is a tiring story that repeats itself across the country.  And as cable consolidation continues, expect its impact to become greater in the near future.

Tuesday, March 1, 2016

Driverless Cars Are Not In The Near Future

Driverless cars hit a big bump, literally.  We recently learned in the Huffington Post that Google's testing of their driverless car prototype hit a municipal bus in Northern CA earlier this month.  And while no one was hurt, it does hurt the program.  As to responsibility, Google claims some of it was their fault, but whose fault would it be if it were a serious or even fatal accident?  For now, a human driver is definitely needed.

Still, car manufacturers should continue with cars with driverless support such as help with double parking, self-braking, and other safety measures.  But a completely driverless car, without an attentive driver, will take many, many more years till fruition. 

Wednesday, February 24, 2016

Security Verse Privacy Act 2

Like the election, there are clearly sides in the Apple verse Justice Department debate about privacy and security.  Apple wants to protect its own security and privacy issues while the Justice Department wants to force Apple to unlock an iPhone to enable entry.  As the Justice Department tries to couch it as protecting national security interests in a standalone case, we now learn that this is not just a one off ask.

According to the NY Times, "The Justice Department is demanding Apple’s help in unlocking at least nine iPhones nationwide in addition to the phone used by one of the San Bernardino, Calif., attackers."  Last week it was one phone, now it is 10, and as Apple suspects, the ask will continue to hack its security protocols on its iPhone on even more cases, not just Federal, but State as well.  And once the "master key" is built, many suspect that other countries will also want to have it.  This slippery slope continues to slant downward.

Not that Apple hasn't helped the Government in other cases, it is just that this particular ask raises many more issues than it prevents.  As citizens, we continually worry that our identity, our bank accounts, our medical and other personal information, is being hacked.  It was never as simple as one iPhone, one case, and Apple's arguments continue to resonate to those that wish to have their privacy protected.  It is why I stand behind Apple in this standoff with the Justice Department. 

Friday, February 19, 2016

Unlocking Set Top Box Won't Come Quickly

So the FCC agrees that it is time to let consumers choose which box they want to use to access their cable TV programming.  Good news for TiVo, bad news for cable operators making tons of dollars by "renting" their cable boxes to subscribers.  But don't expect that the FCC vote means anything changes anytime soon.  According to Multichannel, an addition vote won't come til Spring at the earliest.  And then it will take time to implement.

As Multichannel tells us, that could take another 3 years if not longer.  Of course cable operators may simply take the fight to the courts, delaying the start for more years.  Till then, some cable operators have already enabled TiVo as an alternative cable box, others have not.  Some allow a CableCard to unscramble signals but limit the boxes ability to use all the features, notably on demand.  The bottom line, the unlocking of the cable box is many, many years away. 

Thursday, February 18, 2016

Content Not King Confirmed By Yahoo

In last weeks blog, I speculated that content may no longer be king.  Well it seems that Yahoo also doesn't think content is king either.  They have just announced plans to shut down original content sites, including digital magazine sites covering food, parenting, travel and more, while cutting 300 jobs.  As to the original content sites they are keeping, news, finance and lifestyle, they will likely rely on more third party content sites then their own created material.  Ring the Content Is King death bell for Yahoo.

So original content costs more than syndicated content.  And proprietary content is more valuable to a site than open content.  And some combination of each makes a successful digital content strategy.  Just ask Netflix, Hulu, and Amazon Prime.  But Yahoo couldn't make it work with its Yahoo Screen app, another killed idea by a company that is declining quickly in the digital universe.  A once promising brand with a easy to remember brand name has lost its cache and its way.  What happens next to some of their remaining "stars", like Katie Couric and David Pogue?  The hour glass indicates their time at Yahoo may also be nearing an end. 

Wednesday, February 17, 2016

Security Versus Privacy

If you have been seeing the news lately, then you may have heard that the federal courts have ordered Apple to enable the FBI entry into the iPhone of the San Bernardino shooter.  A fairly simple request at first glance, but one that has serious repercussions.  It is a question about democratic freedom and the right to privacy verse security and the greater welfare.  As of today, Apple is defying an order to comply and create a means to get around its security features.

Security verse privacy is not just limited to this particular case, it is an issue that we face every day.  Our right to privacy, up to a point, but lost at times for the sake of security.  We face that test ourselves every time we go through a security line, at the airport, at a concert.  Whenever we are a part of a crowd, our privacy gets squeezed for the purpose of security.  When police go after potential threats and possible criminal behavior, they get judicial authorization to enter homes, to tap phones, to secure computer hard drives, and other means to restrict privacy for the security of the greater population. 

It seems they are on a scale that slides back and forth from one end to the other, from full privacy to full security.  There is little black and white these days in our world but many, many shades of gray.  In Apple's case, it is their Enigma Code, a proprietary security feature on their devices to remove threats of illegal entry.  Privacy AND personal security.  And to find a solution to such a code opens Apple up to removing consumer trust in their product and our personal data. By creating such a "master key" as Tim Cook says in the re/code article, all privacy could potentially be lost.  We face security issues and privacy invasion every day as hackers try to steal everything from credit card and bank information to social security and health records. Creating such a key could potentially open us all up to more threats. 

For the specific iPhone involved in the San Bernardino case, what answers the iPhone may yield are hard to know unless it is unlocked.  And what future privacy issues become created should Apple create a means to unlock its device, could be at stake.  It is a slippery slope and one that cannot be taken lightly.

Tuesday, February 9, 2016

If Content Is Not King, Then What Is

It seems that content is no longer deemed so kingly.  Viacom shares are down, as are CBS, Time Warner, Fox, and Disney.  The future TV viewer cares little for linear TV channels and we are all growing tired of intrusive and too many commercials.  Even this year's Super Bowl ads, usually the cream of the creative crop, were duds.  And given how fragmented viewership is these days, harder than ever to determine what successful content is.  It seems that content may have lost its crown. So who is King of Media?

In the tug of war between content and distribution, the distribution side has to now be carved out into different verticals.  Cable operators saw a reversal in their subscriber numbers, showing growth and a hopeful long term trend away from cord cutting.  But that will take a few quarters to decide.  The cellular companies have been pulling no punches in their ad messaging, with T-Mobile going hard against Verizon.  And digital content platforms like Netflix, Amazon and Hulu may need to find more revenue streams when subscriber growth wanes.  Of the three, Amazon may be more stable given its diversified business that goes beyond content distribution. 

So who is King?  If content has given up the crown, distribution has yet to show that it has more power.  Perhaps Comcast had it right all along; be both content and distribution, NBC Universal and Xfinity, and stay the course.