Tivo Says 'Charge' With Amazon

Tivo and Amazon are taking their partnership to the next level, enabling online users to instantly purchase from their TV set. It is the next step for interactive behavior and should be quickly embraced. It appeals to advertisers as it can move people from interest to purchase with simply the push of a button.

"TiVo has already been in business with Amazon since last year: It offers on-demand TV and movies to TiVo users from Amazon's Unbox store. Ultimately, TiVo says the "buy" feature will be available on TiVo-powered set-top boxes from cable partners like Comcast, as well as TiVo's own standalone DVRs."

And while Tivo's market share is still small, this added feature and benefit may encourage cable operators to make deals with Tivo to get a piece of the action. "Possible customers for its interactive ad technology include the cable and satellite companies and their consortiums, like Project Canoe, a joint effort by six cable operators to create a technology platform to sell customized and interactive ads."

Still, Tivo needs to do a better job to demonstrate why it is better than a cable dvr. To me, Tivo is the Mercedes of video recording, while the cable dvr is the VW. But if you have never experienced a Tivo, you may think the cable dvr is good enough. The challenge to Tivo is to get the consumer to experience the difference and push its appeal, like Apple so successfully has done with its iPhone and iPod.

Tivo is much more user-friendly than the cable dvr, designed to work as a user would expect a recording device to perform. It enables access across the video in 15 minute bites, allowing easier navigation inside the show. It records recommendations and has an easier search feature. And I find it doesn't have the latency issues that the dvr frequently exhibits. Gaining a bigger footprint across additional cable companies should be the win that takes Tivo to the next level; working with Project Canoe may be the impetus to make the other cable operators want to join the Tivo bandwagon.

Pandora's Success With iPhone Bodes Well for Internet Radio

The Sirius-XM merger should have been approved a year ago. The FCC's concern of monopoly is a non issue with technological change, primarily the rise of internet radio. The success of iPhone and applications from Pandora indicate that internet radio represents a clear alternative to subscription radio.

"Internet radio upstart Pandora has streamed 3.3 million songs to iPhone users since the launch of its new mobile application, making it the third most popular such application for the red hot device" The success of the next generation of iPhone is bringing more users to the app. As autos are wired for connectivity to their wireless phones, it will act similarly as a conduit to internet radio. So where does that leave Sirius; it's success remains dependent on exclusive content like Howard Stern, out of market sports, and others. The fight for great content will either make Sirius a winner or a trivia game answer in 5 years.

As for Pandora and the iPhone, internet radio seems to be a highly regarded feature that brings more value to the mobile device. And anything that brings the consumer is bound to bring new advertising opportunities as well. "This level of intense engagement is likely to excite the ad community, which has been patiently waiting for more mass buying options in mobile media."

SAG Formally Rejects AMPTP Contract Offer

Despite the "other" actor's union, AFTRA, agreeing to terms with producers, and the writers strike bringing Hollywood to a standstill earlier this year, SAG continues to believe that they deserve a better deal. True the landscape is changing in digital media, but that comment is trite, change is constant. Digital streaming remains a brand new medium and while companies are investing tons of money in it, no one is making tons of money yet. As we speak, companies are devising new ad monetization software to interface between the content stream and the user to provide relevant messages to segmented audiences. Testing continues on ad overlays, pre-rolls, ads popping in during dvr fast forwards, and other tricks to monetize the new medium.

And while dollar figures are being thrown around, the business is still very young and changing rapidly. SAG's approach should be to watch and learn; sign a short one year term deal so as to not be tied into a long term agreement that may be irrelevant in 2 years. What they should not do is even mention the word "strike" Hollywood learned that it cost them much more than they earned. The Emmy awards became all about cable as broadcast was burned by the strike; less content, less awards. There are only so many reality awards to go around.

So where are they now? It remains to be seen what happens next. I suppose it will remain business as usual in Hollywood. This fight has gone on too long already. Don't like the deal that AFTRA and the Writers Guild have agreed to, then make the term shorter and get back to work.

Dr. Horrible's Sing-Along Blog is Amazing

I've become a fan of Dr. Horrible's Sing-Along blog. Here is the preview.


The first clips have just come up and are available on the Dr. Horrible site. It is incredibly well done, campy and a lot of run. Enjoy!

You Tube Partners with Tivo

Digital downloads on your TV set is the next horizon. Sony continues to make news with Playstation 3 and directly throuh certain Bravia TV sets. Amazon is also pushing its Unbox service to purchase and download content. Tivo currently has a relationship with Amazon. Now Tivo has moved forward with You Tube to offer streaming of its content on TV. Is a Hulu - Tivo deal in their future? Will You Tube users move over from pc to TV to watch; it all depends on breadth of content, ease of navigation, and download speed.

You Tube currently represents the dominate platform choice by users to watch streaming content. Tivo provides another screen, and perhaps size of the TV set will matter. Unfortunately, not every Tivo user will have access to You Tube content. "Not in big numbers anytime soon, though, because while TiVo has 3.8 million subscribers, only about a fifth of them have the necessary equipment -- a TiVo Series 3 or TiVo HD -- for grabbing YouTube content and displaying it on TV screens."

Still, it is another bullet that separates Tivo from others in connecting the web to TV. Tivo recognizes the value of connecting web to TV and is building the platform that is attractive to its users. As they add more content to the box, they become more valuable. They are a force to reckon with.

Sony Offers Video-Downloading

Expect a dogfight in the digital download arena with many boxes capable of attaching to the TV set and the internet, ingesting long and short form content, free and transactional. From the cable box currently connected to your TV set to Tivo, from Playstation 3 offering Sony movies to Roku offering access to your online Netflix subscription. And of course their is Microsoft who has Xbox and Apple with Apple TV to push. And lastly Slingbox may want to own a piece.

"Sony said its service will let users rent or buy movies and rent television shows produced by major studios and production companies -- including Paramount Pictures, Warner Bros. and Sony Pictures -- and watch them on TV sets through its PlayStation Network in the U.S."

Who will survive,who will get gobbled up. Again, content is king and whoever controls it has greater control over which box will survive. That may give Sony an advantage with games and movies. Are you watching this, Nintendo; Wii may need to find a partner, too. Partnerships will matter and as Tivo further integrates into the Comcast cable box, synergies will grow to enhance its appeal and value. Apple has always built customer friendly devices and have passionate loyal customers that will stand in line to get their products. And Microsoft has the resources to maintain a seat at the table.

Digital downloading will create more opportunities for competition and that may spell good news for the customer. And may offer even more advertising options to support revenue growth.

ComScore: Americans Watched 12 Billion Videos In May

Online video usage is gaining speed, growing by 45% from a year earlier and by 10% from last month. You Tube continues to be the dominate site, with a 35% share, although that leadership position appears to be slowly eroding as other sites gain more awareness and usage. In fact, their percentage dropped from 37.9% in April. Surprisingly My Space videos, as measured through Fox Interactive Media, is second, and Hulu (or as some still like to call it Hula) is in 10th place.

And while there is still a huge jump between You Tube and others, Google and You Tube must be feeling the heat as original content on sites like AOL, ABC, and Hulu, appears to have more interest and more likelihood for monetization. Those sites that can create more synergies across other media and help drive traffic to their sites will benefit more in the long run.

And while this is a snapshot for the month, the indication is that online viewing will continue to grow at a fast rate and You Tube will find its share of the pie reducing as these other sites continue to push their content. In June, Disney began showing their full length movies online; that should lead to a bump in their score. Hulu continues to put more content on their site as well and May is the first month that they were out of beta.

I'd love to know more about these online users; are they watching at the office or at home, is most viewing in the daytime or evening, do they prefer snacking or full episodes. How users are using this online content will continue to shape how usage and site preference grows.

SAG stays in stall mode

Sometimes its hard to admit defeat. SAG has no leverage to construct a better deal now that AFTRA and the writers have come to terms on new media participation. Given also that the economy is in a state of flux and the new media market still remains undefined, a short term deal is reasonable. As they fight over digital downloads, mobile usage is another screen with some potential. But as one area grows, another declines. The revenue coming from advertising is not an unlimited bucket of money. It flows to different media, from one screen to another. Ultimately, compensation should be measured regardless of where it is seen, but as a percentage of total business over a period of time.

Kindle is Doing Pretty Well

It seems Kindle is doing pretty well, with celebrities talking it up gratis. Martha Stewart and others continue to mention that they are Kindle users. Increased production, price cuts to appeal to abroader audience, should help drive revenues and increase brand presence. As consumrs continue to embrace the concept of e-books, as they have books on tape, Kindle may be the ultimate device to provide both a video and audio presence for one low price. "The retailer sold 25,000 to 50,000 devices during the first three months of 2008, according to an estimate by Mitchell. Amazon doesn't disclose Kindle figures."

Need a reason to switch from hard copy to e-copy, "The paper edition of ``Sail,'' by James Patterson and Howard Roughan, ranked second on the New York Times bestseller list, sells for $16.79 on Amazon.com while the Kindle version costs $9.99. Customers don't pay extra for download time. Users can also transfer text documents and MP3 music files from their computers, according to Amazon's Web site." Add enough extras, like reading blogs and free books on the web, and the voracious reader will see savings with their Kindle very quickly.