Hi Def Confusion Reigns - How Big Is It

Is High Definition the next greatest thing? According to Nielsen, and contrary to the CEA, Hi Def penetration is low, only 13.7% of TV households. And most likely, those homes may have multiple TVs, but only 1 may be HDTV. It seems to suggest that content owners need not rush to convert their programming or their channels to the HD format.

More interesting is the fact that the Consumer Electronic Association has measured that same penetration at over 32% of all households. That difference amounts to over 21 million homes that may or may not be HDTV homes.

The CEA believes that difference between their figure and Nielsen is how to define a HDTV household. Those with an HDTV set, but not connected to a converter box able to show an HDTV signal would not count in the Nielsen number. Per B&C, "The CEA’s own research, in fact, indicated that in 2007, only 44% of HDTV owners are actually receiving HD programming."

My own household falls into that mix. We have a HDTV set in the kitchen, but connected directly to the cable wire to the wall; no box. Why - the converter box takes up too much room, and the picture, even if not HD, looks great. In fact, if I could network all my sets to one HD server in the garage, I would upgrade all my sets to HD now. The boxes are space hogs and unsightly.

Most importantly though should not be how many are out there now, but how many will there be in 3 months, 1 year, 5 years, etc. Consumers love the thin ergonomic look for the HD screen, they love the improved picture, and they will continue to purchase HDTV sets. So I would be most interested in the expected growth, because HD is not going away.

Verizon's FiOS TV Bulks Up on 3Q Subs

The fact that Verizon Fios TV is growing should not surprise anyone in the cable industry. As cable companies have tapped the hard wire phone market, Verizon recognized the consumers were less reliant on their hard wire and more reliant on wireless. It stays true to the mantra, what you want when you want it, and the mobility of consumers has led to this revelation.

What the cable industry should be most concerned with is how Verizon intends to build better synergies with Fios with their wireless business. Remote programming of their cable box. Remote access to home security, and other applications that connect the mobile user to their home base.

And so the rumor that Comcast and Time Warner may partner together to purchase Sprint makes sense for strategic reasons. But if this purchase does occur as a partnership, can they mutually agree on the direction of their business without co-opting their unique cable business plans.

Verizon will continue to grow subs - some as customers find dissatisfaction from the service problems of their current provider, others because of an upcoming price war. No matter what marketing cable employs, subs will continue to leave the establishment to try the new guy. That's the battle. But to win the war - to keep them or win the cable customer back: unique programming through VOD channels and web to TV programs, better synergy across the triple or quad businesses, and exceptional service.

My advice turn your service people into the Geek Squad. Offer that expertise to the home on 24 hour notice. Spend the time and effort making each customer beholden to your company for setting up and maintaining their working home network universe of cable, phone, wireless, high speed, security, etc. That is true convergence.

Hulu Readies Its Online TV, Dodging the Insults

Why Hulu? It's the question many will ask. What does Hulu do that neither NBC or Fox can do separately. Whether Hulu can offer to NBC or Fox what You Tube can't is the ultimate answer. The other networks are employing different strategies to provide program access on the internet.

To me, while the web can act as a VOD method to catch shows that you missed on the TV, it should also be used to provide relatable content that augments the show, interactive games, additional footage, background info, that furthers the experience of the show itself.

So if the show is 30 Rock, the episode can certainly be repeated on the web, but how about additional footage of the secondary characters, like the writers of the faux show, to feel immersed in the 30 Rock experience. Now why this experience needs to be accessed thru Hulu as opposed directly through NBC.com or 30Rock.com, will determine whether Hulu as a new business lives or dies.

Net Neutrality a Hot Topic

Inside sources continue to affirm that Comcast has been involved in interfering with hi speed downloads, most notably with file sharing sites like BitTorrent. And this story will continue to grow as I'm sure other ISPs will acknowledge that they do the same. As hi speed data subscribers continue to grow and data files get larger, as in more movie sharing across the web, the broadband highway will get too crowded and bit speed will slow. And while Comcast may be engaging in some shady work, their intention, to allow the majority of other smaller files, like e-mail to flow more smoothly, seems to be their intention. But net neutrality means that all files, no matter how big or small, get equal access across the web.

So either the internet highway has to grow larger to accommodate more traffic, or technology has to adapt to "zip" or "packet" these files into something that reduces the traffic congestion.

Comcast's disruption activity has merely exposed the bigger problem.

Next New Signs Deals With YouTube, TiVo

It was exciting to read the news that one of my favorite video websites, NextNewNetworks.com, has inked distribution deals designed to give a few of their channels wider distribution reach across the web, including YouTube, TiVo, blip.tv, Joost and Veoh. These initial web channels include IndyMogul, Channel Frederator; and Fast Lane Daily. On Indy Mogul, you can find BFX, Backyard Special Effects, with an inside look on how to recreate classic effects like staging a gun battle, making zombies or ripping off a limb. On Channel Frederator, you find great animation, like The Meth Minute 39, and Fast Lane Daily is the latest car news.

And while these and the other NextNewNetwork channels continue to work to find an audience, I am hopeful that either technology or a smart cable company considers ways to get this content off my little screen and onto my big TV. While FCC rules require satellite delivered networks to be sold to all distributors, cable, telco, Direct TV; these web channels could actually negotiate exclusivity deals with only one TV distributor as a unique differentiator in the fight for cable subscribers. And VOD would be a perfect place for these channels - with promotion to tout their availability. Rentrak just announced that VOD usage grew 44% during the first six months of 2007 to over 1.4 orders.

In fact, Comcast just announced its quarterly earnings and basic subscribers dropped by 65,000 homes, because of competition, primarily Verizon coming into their markets. And while pricing is always a differentiator, unique programming exclusively on a platform can be a big plus. So take a look at their shows and imagine watching them instead on a big screen TV.

Verizon Wireless Reaches Deal in Marketing Probe

Interesting to note that as we are dismayed to learn that Comcast may have affected downloads of large files, that trend may not be limited to cable. On the wireless front, Verizon, which had been advertising an unlimited usage plan, also limited high bandwidth usage of its service. ANd while they have agreed to reimburse customers for their false advertising, Verizon has not agreed to end the practice.

As consumers become more adept in their understanding of the wire and wireless space, and content owners offer larger, higher bandwidth programs and files, the communication highway will get more and more crowded. Customers want net neutrality to assure that all content can get through to them; service providers want more bandwidth to handle the content and more rights to manage the utilization of the pipeline. Can both sides co-exist? Movie downloads, HD formats, bigger files - it will only get more crowded. How the highway is managed will be a growing issue.

CondéNet Uses Facebook to Draw Users, Ads

From Media Week: "In June, CondéNet acquired from an independent developer a program called What Are You Wearing? that lets users alert friends about their daily sartorial choices. The app, which is not CondéNet-branded, has landed over 90,000 users thus far, adding 1,000 per day, according to executives."

What a great idea and one that other brands should emulate. CondéNet is attracting like-minded consumers with a common interest through Facebook and helping to increase their interest and passion. What is missing from this set up is the synergy to a CondéNet brand. Shouldn't these like-minded users be a perfect fit back to the Style.com site. They have discovered a passionate audience and their are creative ways to make them more mindful of your brand.

This tactic of using social networking sites like Facebook and My Space to grow a passionate audience harkens back to the days of building grassroot members. The web makes the process that much more efficient and effective. And other brands should seriously consider this method to reach out to its passionate audience.

When Does a Social Networking Site Know Your Not Being Social

Just wondering... What happens when you stop using a site you've registered for. You tried out your own Brightcove Channel, you posted a few photos on Flickr, you registered an avatar on second life, you built a My Space page, and then you stop visiting the site. Are you still counted as a member? Is your site still considered active for metric info or ad sales purposes? How long do you continue to exist on the web before someone or some program notices that you are inactive and finally deletes you from the web. And while all this stuff is virtual, the memory it occupies is real and could be better utilized.

And so the easy answer might be, is to be proactive. Unsubscribe from the respective sites and delete the information. But what happens if you die first, leaving so much clutter. Does your Facebook info stick around for 10 more years? Just wondering...

Comcast Blocks File Sharing

So the recent news that Comcast may be blocking the download experience should not be considered a one-time situation, or even limited to just Comcast. It is most likely a case for all ISPs. As more users stay online and continue to download large files, bandwidth issues will cause latency and error messages. While not acknowledged, ISPs must continue to grow bandwidth space while at the same time watch usage patterns on their system.

Does this give them the right to block access? No. It speaks to the heart of net neutrality and the equality of all sites to the respective user. What might concern ISPs like Comcast is that the pipeline access will eventually lead to removing them as the middleman. Why pay Comcast for access to your programming if you can stream or download them directly to your PC or TV.

In the short run, it is unlikely because these cable networks on the cable line-up receive a monthly license fee for carriage and then your cable company aggregates them and bills the cable customer for access. Cable networks like AMC, Discovery, ESPN, and all the rest do not want to give us those fees, which can add up to 30 % or even more of their revenue stream, the rest made up from advertising. That can be quite a large amount. Technology doesn't yet get you or them ideal programming placement, and these companies would try to find unique ways to make up any shortfalls if they gave up that revenue stream for direct access.

For those video networks without current access to the cable line-up (programmers like NextNewNetworks, Wallstrip, or my new favorite Wine Library TV, etc.), the license fee roadblock doesn't affect them. These new programmers need viewing eyeballs and web streaming/downloads lowers the barriers to entry to get on the PC or TV set. So the blocked access accusations do affect their opportunities and our increased viewing pleasure. Today the issue may be about large movie files on BitTorrent, but take the same issue to other types of internet traffic, and this blockage is a big concern.