New Mobile DTV Standards

Here's an interesting tidbit in today's Cynopsis.com:

The Advanced Television Systems Committee (ATSC) approved a mobile DTV standard on Friday, clearing the way for broadcasters to transmit digital TV signals to a plethora of mobile devices. The formalization of the standard, in the works since May of 2007, gives chipmakers and gadget manufactures the template they need to develop handheld TVs, DTV-compatible netbooks and tuner-integrated mobile phones that can pick up ad-supported local news, weather and sports programming. In addition to live television, the new ATSC Mobile DTV standard also provides an application framework to enable receivers to bake in a number of interactive services. Look for iTV apps including live viewer voting, polling, advertising applications and audience measurement components to be built into the mobile DTV platform.


So a new DTV standard for mobile phones will enable more interactive applications. Why isn't it first happening in set top boxes? These bricks with wires can barely switch from one channel to another without a noticeable lag, freeze up when trick features are used, and cause more aggravation than enjoyment. And so as phones become more enabled, TVs become less so. It's time for some real convergence of technology. Put similar standards in the converter box and enable consumers to use the device that best appeals to them. For me, a Tivo without the need for a Cablecard or two, just a code that authorizes the cable company to talk to it. It's time to put some 21st thinking into the converter box ASAP.

Will Hulu Save Or Destroy Traditional TV

Hulu is a change agent. Full programs, not just clips, to the viewer provides an alternative to TV viewing. So is it complementary or a predator? The answer is that it depends. Will consumers stop purchasing cable TV subscription because their online subscription provides enough viewing or will consumers recognize that it is not an either or decision and will ultimately consume both.

TV Everywhere is a concept designed to take that choice out of the consumer's hands. It says that only cable subscribers get access to viewing content on other platforms; one must be authorized through cable to get access on the other devices. Hulu currently does not work under the TV Everywhere concept. It offers free viewing, most with less commercials than current cable inserts. So there is an added appeal to switch.

Will Hulu change to a subscription model? Will consumers buy one without the other? Or will Hulu adapt to a TV Everywhere mode and get authorized access via its cable partnerships. If Hulu can get an incremental fee from the MSOs, that seems like a likely route. At the same time, Comcast has created Fancast, a Hulu wannabee. Change is in the air.

Can Twitter Make Money For Itself

Many companies have figured out a way to use Twitter to augment their marketing tactics. It enables better communication to customers, reaches the brand fans, and enables quick feedback on how well the relationship between customer and company is doing. It is working for many companies save one, Twitter. Twitter cannot make money on itself.

I know of two ways to make money - subscription and advertising. As a free service, it would be very difficult for Twitter to start charging for subscription. And what else can they ad to try and build a premium level for a fee. And as for advertising, with only 140 characters and ideally suited for mobile devices, as well as the computer, there is not much room for an ad. Pop ups, no way; banners, how effective can they be. Twitter is an ideal mechanism to support marketing communications for others, but not itself.

There also seems to be two types of users: active twitterers and voyeurs. One constantly inputs info to the point of ad nauseum, the other likes to read what others are doing but has no interest in contributing to the banter. At some point, won't the first group get tired of writing tweets and move on to the next thing. Won't the latter group get bored of reading nothing more than nonsense and find something else to do.

At least for other social networking sites, like Facebook and My Space, there is more to do than post. And with more options come more potential opportunities to add advertising. Twitter seems so limited when compared to others.

Time Warner To Comcast: Some Mergers Don't Make Sense

Time Warner's CEO Jeffrey Bewkes doesn't think NBCU makes sense as an acquisition target for Comcast. Their experience with AOL is prime example that synergy is not easy to come by. And content and distribution together may be a deadly combination. They recently separated the two into different companies, Time Warnr Cable for distribution, Time Warner for content. "Mr. Bewkes pointed to Time Warner Cable's recent spin-off from its corporate parent as a sign of media disaggregation done well." The two didn't play well together in the same sandbox.

Should Comcast heed this advice. Does an NBCU-Comcast entity make sense? Can Comcast compete with ESPN in one area of its company and work closely with them in another. "Speaking at a keynote Q&A at TV Week's Innovation 360 conference in New York, Mr. Bewkes described NBCU as a "very complicated" business that might not make total sense for a cable company such as suitor Comcast with a portfolio that includes a broadcast network and a movie studio." Perhaps it is worth listening to this wisdom. Perhaps content and distribution work better separately, than together.

Bloomberg Wins Business Week

Mike Bloomberg has done extremely well in his career. Building a business, running a major metropolitan city, noticing opportunities and making a mark in the world. His latest, the purchase of Business Week Magazine. "With the move, Bloomberg takes on BusinessWeek’s faltering financial situation, plummeting ad sales and all—and gains its resources, products, standing and valuable brand. Bloomberg’s execs expect to strengthen Bloomberg Television, using that brand and the magazine’s “world-class” journalists, and the company’s web presence." It is a shot in the arm for magazine publishing.

What it says to me is that there is a profitable business opportunity to be exploited. Bloomberg's multimedia approach recognizes that content can live and breathe in multiple forms. His financial backing demonstrates that with better management, a keener approach to using its content and credibility across platforms, and vision of what may be possible with the web and e-books, Business Week can live on quite well. I'm excited for what Bloomberg can accomplish with this well regarded magazine.

Lather, Rinse, Repeat as Needed (Same With Your Cable Box)

Now that the digital conversion has taken affect, every TV requires a cable box to receive channels once accessible directly to the TV set through the cable wire. And now with more boxes, more problems. So why call the cable company for assistance when the answer is always the same: unplug the box, wait 30 seconds, plug back in. What it didn't work; repeat, try again. That is the number one solution for every cable problem! Is it that the cable box is overworked or just a brick in sheep's clothing. These problems don't occur nearly as often with computers, Tivos, Playstations, Wiis, or other devices; the cable box needs continual rebooting. Stuck channel - reboot; no cable guide - reboot; no service - reboot.

Frustrating to say the least. And does it seem that every cable box that gets put in the field has been refurbished. Who is getting the new boxes? And when will Comcast finally get me a Tivo guide in their cable box at my home? I remain frustrated, ready to switch providers and missing the days when I had a Tivo directly connected to the TV WITHOUT a cable box to slow me down. Why do customers switch providers; cost may be one reason, but service and connectivity is definitely another.

Is Leno at 10pm Working?

It is still too early to judge whether the NBC experiment, replacing 5 hours of scripted series with a talk show, is genius or stupidity. But rumblings and aftereffects are being felt. One is a scripted series, Southland, that was meant for 10pm but forced to fill a 9 pm slot. It has been quickly cancelled. Another is the ratings at 11pm of the local newscast that follows Jay. "Late newscasts on local stations affiliated with NBC are reporting significant ratings declines, at least partly because of a ratings drop-off in the 10:30 half-hour that precedes them." And third is a drop in ratings of its perennial late-night staple, The Tonight Show. NBC still says it is bullish on The Jay Leno Show and says it needs to be judged over a year in order to measure its success. For NBC, the bottom line measure is the net profit it delivers; despite lower revenues, Jay' much lower costs will give it greater value to NBC. In isolation, that may be true; but, if other shows are also affected and the TOTAL bottom line of NBC is lower because of Jay's ancillary effect on newscasts, syndication, and late night revenue, then it may not be as successful as first thought. Yes NBC, time will tell.

Is NBCU The Best Fit For Comcast?

Comcast wants content and NBC Universal is for sale, but does that make it the best strategic fit? As the article suggests, Comcast seeks to expand its cable networks, but NBCU is more than just that; it includes broadcast and affiliates, a movie studio, theme park, and more. Would Comcast then have to spin off these non core assets to pare down to what they want. Sure NBCU may be motivated to sell cheap, but cheap doesn't necessarily get you a great deal.

Comcast needs to really determine what business they want to be in and whether this deal strategically, and not just financially, makes sense. And do they really want to own a broadcast channel with local affiliates. Could that add a whole new wrinkle to their distribution business? I'm sure it will raise an eyebrow or two with the FCC. There are plenty of other cable networks that could be ripe for acquisition. The article mentions some, including Discovery and Scripps, but others exist. Those acquisitions come with far less headaches and far more synergy.

"Still, Roberts is an opportunistic dealmaker, and sources said he thinks he can steal NBCU because parent company General Electric is essentially a distressed seller." Sometimes if a deal is too good to be true, it is too good to be true. Comcast must concern itself with its core business, cable distribution, and there they have much bigger issues. If this is a fundamental switch toward content AND away from distribution, that is one thing; but, if it is about both, and NBCU acquisition will cause many more problems and thin out resources, just as Comcast faces growing competitive problems from Verizon and AT&T. Strategically speaking, Comcast needs to decide which battle they want to fight, telco or FCC!

Cable's Loss Is Telco's Gain

I came across this website through an associate and when I scrolled down saw this chart of basic sub growth from Q3 2008 through Q2 2009. It indicates a serious problem for the cable operator:



Over the four quarters cable basic subscription has dropped, while the telcos, AT&T and Verizon, and Direct TV has shown growth. In fact, telco and dish basic growth is greater than cable's loss, indicating that there are still homes that are new to cable television.

Of the cable operators, only Insight has for the most part gained subscribers for three of the four quarters. Comcast has consistently had the most loss for the same period. While cable may be selling more services to their current customers, data and telephone - the triple play, it is finding itself selling to a smaller and smaller universe.

In summary, the incumbent has a serious challenger in the telcos and better do more to reverse this trend or will find itself selling less of its other products and losing serious revenue. Today, AT&T and Verizon's share of the cable universe remains small, but the indication is that they are growing fast. Per the JD Power report, telcos and satellite are beating cable for customer satisfaction. The trend should be disturbing to cable and they need to act FAST or risk losing their lead in the next few years. Customers are dissatisfied with the service, choice, quality, and price. Cable is zero for four and has built for itself a bad reputation in the marketplace. It is time to re-evaluate and change internally, then market that new approach to win back customers. Otherwise, the leak in the dam will only continue to grow!