Consumers Want What Apple Got

Once again, Apple had higher revenues than projected thanks to the iPod, iPhone, and laptops. "Most impressive: Apple shipped 8.75 million iPhones last quarter, versus expectations around 7 million. Incredibly, iPhone sales more-than doubled vs. the prior year.
Mac sales were solid: 2.94 million shipped, versus expectations around 2.7 million. And Apple's iPod business is still showing signs of life: 10.89 million units shipped vs. 9 million Street consensus." And since iPad numbers weren't part of the quarter, we can only expect stronger revenue for the next quarter. Consider that the more units sold, the more consumers to access the Apple App Store and thus even more business selling bits and bytes. No manufacturing costs, no added labor costs. The rise of the App Store and applications for sale means more revenue and more profit for Apple.

Even more exciting is what Steve Jobs has up his sleeve for his next product. "Apple CEO Steve Jobs took the opportunity to tease new products in the company's earnings release. 'We've launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year,' Jobs said in a canned quote." I can't wait!

Is Lost iPhone A Big Deal?

Normally a lost iPhone is no big deal; just go to the store and buy another one. But when it is a prototype of a next generation phone, it could be a problem. The worst kept secret was that a next generation iPhone would be release; the best kept secret, until yesterday, was what modifications would be made. "From the front, it looks similar to the current iPhone, but it has sharper edges and is a little thinner. The volume and power buttons are stylistically different, and the back of the phone appears to be a ceramic glass, which would enable better reception. That would address a persistent problem that has plagued the iPhone since its inception three years ago."

And while it may at first blush feel like a nightmare, it may, in fact, be a marketing coup. I for one, am now more excited about getting an iPhone. I only wish that the news included more exact dates when it would be made available on the Verizon network. And while Steve Jobs may be angry that his security was compromised, I am confident that he will turn lead into gold, marketing gold! And so take your lumps to get your prototype returned. But in the long run, the Apple brand continues to represent the pinnacle of what a mobile device offers.

BlackArrow Nabs Strategic Investment from NDS

Lots of talk about advertising in the mobile space, less so about the VOD space. But as more people watch on demand, making sure the ads inside the programs are relevant is a big job. And to switch out on the fly and target to the household is the biggest opportunity. "BlackArrow is best known for being able to dynamically insert targeted ads into video-on-demand platforms, and has signed up customers like Comcast an Fox Cable Networks to do so. Without technology like BlackArrow’s, adds that appear in cable VOD systems are typically stitched into the video itself, which limits the flexibility of the ads that can appear."

In the last few years, Black Arrow has been developing these tools and with the latest round of funding from NDS seem ready to finally break through. And as this application can apply to VOD, DVR, and other broadband streams, the opportunities only grow. Providing one trafficking system that can do it all (VOD, DVR, linear broadcast and cable TV and broadband video services) should be an economic boon to cable and broadband content providers that distribute programming.

Cablevision, Comcast, TWC Hook Up On Wi-Fi

"Cablevision Systems, Comcast and Time Warner Cable announced reciprocal agreements Thursday to let their broadband subscribers access any of the operators' Wi-Fi hotspots across the New York metro area. According to the cable companies, no money is changing hands as part of the agreement. As of April 15, authentication for all three operators is present on every access point."

Or you can find your nearest Starbucks, McDonalds, Library, or other establishment outside your home. Get the feeling they are just a little late to the game. Perhaps cable companies need to name their hot spots, else we won't know where to go.

NBC, Fox Team Up for Mobile Content Service

As we become a more mobile, untethered society, it is nice to know that our content will find us. "A consortium composed of some of the nation's biggest broadcasters -- including News Corp.'s Fox, NBC Universal, Gannett Broadcasting, Hearst Television, ION Television and Cox Media Group -- has struck a deal to create a joint venture to develop programming for mobile devices." Great for the networks to find perhaps another revenue stream for subscription to the same content as cable. Sad for the cable companies if we can learn how to move the mobile content around in our home so we can bypass cable. An opportunity for cable companies to enable TV Anywhere through the cable box, i.e. Slingbox. A loss if the cable companies aren't reacting and acting as leaders rather than followers.

I can only point to history to change the future. The cable companies are looking like AOL, once top of the mountain, but soon, a footnote to the future. When you are the leader you must continue to change as external and internal forces change. AOL did not react to changes in broadband and their dial up business and subscription revenue died. As mobility takes a stronger foothold, consumes are enjoying the opportunity to cut their cable cord. Before it becomes a problem, cable companies need to be the choice to offer TV Anywhere. Unless they do, cable companies will become simply a dumb pipe to the home.

Nearly 800,000 U.S. TV households 'cut the cord,' report says

Notice all the HDTV set advertising internet connections. So are blu-ray players, Playstations, XBoxes, and Wiis. Notice how many are offering cableCard connections. None. As consumers have grown tired of their cable provider, they have found respite with broadband. Which means cutting the subscription to cable and perhaps even their hard wired phone and settling with broadband only. With content available through the web there is no need for HBO; rather Netflix, Amazon, Blockbuster, and Apple become their alternative. Hulu for cable and a digital antenna to receive broadcast channels.

"Now, as TechCrunch points out, the estimated 800,000 cord cutters represent less than 1 percent of the 100 million U.S. households (give or take) currently subscribing to a cable/satellite/telco TV carrier, so it's not like we're talking a mass exodus here. But by the end of 2011, the report guesstimates, the number of cord-cutting households in the U.S. will double to about 1.6 million".

It is time for cable companies to wake up and act. Make the internet the friend to your cable box. Add Slingbox and Tivo to the set top box; let third party manufacturers sell a converter box. Stop pretending that the CableCard works. The brick the cable companies require on each of our TV sets makes them look like old, out of touch companies, while Apple and others have built products that are sleek and modern and ergonomically designed. The current cable box is not. Change now or risk more and more cord cutting. Cause once you lose them, it is hard to win them back!

Is 3D TV Dangerous To You Health?

Who would have guessed that watching too much TV was dangerous to your health. Certainly that was a warning our parents' gave us to encourage us as kids to play outside. Perhaps they weren't lying. "Guidelines for Samsung's new line of 3D TVs warn against prolonged exposure to 3D TVs for kids (kids under 6 shouldn't watch at all), teens, pregnant women, the elderly, sleep-deprived people and anyone buzzed on alcohol." Certainly in legally sensitive times, all products have warnings. But now a warning to not watch too much. Will that slow down sales of 3D TV sets? Probably not. Still I am not yet a fan of purchasing one yet. For me a big screen HDTV is exactly what I need, with no glasses required!

Late Night Wars - Conan to TBS

Conan wouldn't move from 11p to 12a, but George Lopez will. And so the late night arena gets even more crowded. Are there enough guests to go around? Or will this proliferation kill the genre. How each show differentiates itself from its rivals and finds its audience will be crucial to success.

Fox was the first option but their 11pm slot is filled with very successful syndicated programming. Why switch a ratings winner with an unknown quantity. For TBS, Conan brings more legitimacy to the late night arena. Still, I would have loved to see him try a show earlier in the night. A show at 7pm, when the audience is awake, might have been an opportunistic move. And with the rise of DVR and VOD, the show could be watched later in the evening by its audience. And it would avoid the clutter, too.

Will Conan be successful? Hard to say. As he may have learned from NBC, his success may just depend on his lead in. Without compelling program beforehand, viewers may be reluctant to turn the channel just to see him. It didn't work with Jay Leno in front of him; hopefully, he has a better chance at TBS.

Are You Tired of Your Cable Box?

Have you ever thought about the differences between accessing content on your TV verse accessing from the web? Do you find yourself making excuses? It's always been this way, no keyboard, it's good enough. Well it isn't. Unfortunately with the control in the hands of cable companies, there is little reason to change. And so if you can't go through the mountain, go around them.

"Most TV sets for sale by 2013 will be able to connect to the Internet right out of the box, setting the stage for companies such as Google Inc., Yahoo! Inc. and Intel Corp., to make televisions a lot more like computers and smartphones." As content companies find revenue models that work without the cable company, they will provide channels through IP technology. Notice that TV manufacturers have stopped trying to work with cable companies. These TV sets don't have Tru2way or CableCard technology to easily connect to programming; no, they are all connecting via the internet. And as more compelling content gets presented through the internet, cable subscription will drop.

Cable companies will complain that there are too many legacy set top boxes out in the market and too expensive to change. But they won't even allow a third party manufacturer to sell a box directly to the consumer. Wouldn't you love to see a Tivo box that can actually access on demand. How about an authorized Apple set top box with internet and cable access. It is time for cable companies to see the future and change else they will become like AOL. Once the top ISP and now simply a footnote.