Have You Seen Your CableCard?

Cable companies would have you believe that the CableCard program, designed to enable other devices to interact on the cable pipeline, was a success. But have you ever seen a CableCard? Do you even know that one is in your cable set top box? Heck, I haven't even bothered to look. In fact... "the 10 biggest U.S. cable operators have deployed more than 22.75 million leased set-top boxes with CableCards since the Federal Communications Commission's integrated set-top ban went into effect in July 2007 -- a rule the cable industry claims has cost more than $1 billion to no discernable effect. Meanwhile, those same cable operators have deployed approximately 531,000 CableCards for use in retail devices such as TiVo DVRs, according to figures supplied by the National Cable & Telecommunications Association to the FCC Thursday." That represents a little over 2.3%. Hardly a dent. And demonstrates that the cable companies don't want 3rd party devices touching their cable wires.

It is also why consumer electronic companies, fed up with the cable industry, have bypassed CableCard technology and put their efforts into internet enabled devices. Just go to Best Buy and ask for a CableCard enabled TV set. Good Luck. Now ask for a TV with internet connectivity and Netflix. Pick your model. Cable has made their bed and ultimately will face increasing competition from broadband connectivity.

Can cable catch up? Can they find a more meaningful solution that keeps the consumer tethered to their wire. Or will cord cuttig become that much more of a reality. At the moment, let's be clear, the CableCard model is broken. Consumers and competitors have found the workaround with internet connectivity; no set top box, no problem.

AOL: It's Content Not The Platform

AOL has separated from the mother ship. It is separated from Time Warner and on its own. And while Time Warner also separated its content from its distribution platform, AOL's content wasn't deemed synergistic to Time Warner's growth plans. On its own, AOL is in the midst of building and buying content companies to own a robust line of online content. The latest is Techcrunch.

"TechCrunch and its associated properties and conferences will join the AOL Technology Network while retaining their editorial independence, further bolstering AOL’s position as one of the world’s leading providers of high-quality, tech-oriented content." AOL sees a world of online news and information and a revenue stream derived through the ad platform. But have they learned anything from their time with a cable company? Will they look to build out a walled garden of subscription services, building a license fee model (like the Premium Hulu model) to capture a secondary revenue stream? Will that be one of their next announcements?

I like the commitment that AOL has taken. I'm sure a number of folks are reading content pages and have no clue they are owned by AOL. Whether the corporate name needs to be more visible to the consumer or that synergies can push those consumers from one AOL page to another is uncertain. What is certain is that AOL has become a leaner, meaner fighting machine, hoping to once again become the leader in an ever changing, fast moving industry.

Blackbook To Be Called Playbook

The R.I.M. Tablet officially has a name and it is called the Playbook. No, not like an NFL Playbook, although the sports connection may have been intentional. It's intention to get in front of the Apple iPad with a tablet positioned to attract the business user. "Unlike the most expensive iPads, the PlayBook cannot connect directly to cellular networks. Users will be able, however, to connect to the Internet through a wireless Bluetooth connection to their BlackBerrys or by using Wi-Fi networks." At the same time, Apple is expanding the distribution through retail deals with Target and others.

The key for each is software and content that can run on their respective device. The Playbook will be Flash compatible; the iPad currently is not. In addition, "Amazon said that it would introduce a Kindle e-book application for the PlayBook." It's still Apple's fight to lose, but competition is what keeps innovation advancing.

Theatrical Movies Coming Even Quicker To Your Home

If a family of four wants to go to the movies, admission alone could be $40 or more. Add popcorn, candy, and drinks and that amount could double. We have become a society that can not wait; instant gratification is our mantra. And so the movie windows, the times when a film moves from one distribution platform to another, has shortened. We once had to wait a year to watch a movie go from theater to DVD. But the rise of on demand and the demise of DVD sales has shortened that time period. And now movies are coming to On Demand even sooner.

"Right now, theaters get an exclusive period — 120 days, on average — to serve up new movies. Then the releases appear on television video-on-demand services at a price of about $4.99. Armed with the new copy-blocking technology, studios want to offer new movies on video-on-demand services about 45 days after they arrive in theaters, for a premium price of $24.99." So that family of four can avoid the theater and not wait many months to watch the film. For a higher price, access can come quicker. For the family it translates to a savings of $15 and more when you add refreshments. For studios, it brings a greater share of the revenue split. And if the consumer still thinks the cost to watch is too high, they can wait for the next distribution window, when the On Demand price point drops back down to $5.

It will also mean shorter windows for movies staying in theaters. Why should theater owners show a film at the same time it is accessible at a lower price at home. Movies will rotate through theater screens quickly. Theater owners must improve their business strategy and do more to improve their business. 3D has proved successful. Better seats, better food, better overall experience is another. Cleanliness would also help. Customers want to leave their home for a night out. A night at the movies will now need t be more special to keep the customer coming back for more. Otherwise, theatrical dollars will fall and On Demand dollars will keep rising.

New Content Challenging Old Content

It must be thirty years when the cry of "I want my MTV" first began as the battle cry for consumers pushing cable TV over broadcast. The rise of cable programming has deeply affected broadcast operations and ratings. Finally, the only thing left for broadcast to do was to buy out these cable networks. Why is NBC and ABC healthy - their sister programming and cable channels.

Well nothing lasts forever and the evolution continues with the rise of non cable, online programming. Now we have an upstart going after a cable channel directly. "Vevo, the Web music-video service backed by major labels Universal, Sony and EMI, is moving onto MTV's television turf. As part of a plan to make its music-themed content as widely viewed as possible, Vevo is working to launch a regular TV network that would compete with MTV's music-video network, MTV Hits." And here is the key distribution move. "While Vevo has no deals with the cable or satellite-TV firms at this stage, it is working closely with Web-enabled TV manufacturers, set-top boxes and other devices."

As TV manufacturers are bypassing the set top box, they are incorporating web enable technology into their screens. Programming without a cable cord. Broadband access yes, cable no. Will Vevo and other succeed. The beauty of cable channels is that they discovered a two-tiered revenue stream that broadcast did not till recently. Subscription license fees and ad revenue. That capital enables expenditure in more expensive and hopefully more desirable programming. Internet programming has yet to capture a license fee model although Hulu is trying with its premium level of service. Vevo may not have high programming costs to start but as they grow, new revenue streams will be a necessity.

Blackpad vs iPad

Obviously, I haven't touched a Blackpad. But I can already tell you why it won't be as successful as the Apple iPad. The App Store. Ones has to look only as far at the success of the iPod to see why. Not only is the device simple to use right out of the box, it has the power of the iTune Store behind it to make it even more powerful. No other mp3 wannabe has come close to emulating the appeal of the device. And market share of the iPod confirms it.

Blackberry's new device faces the same problem. It has nothing to back it up. And as it tries to add features to get ahead of the curve, Apple will undoubtedly get to the market faster with its next generation. The iPad strategy will most likely follow its brother the iPod, with each generation giving us more while the past model is given a price discount to keep it on the market. "The BlackPad reportedly will sport as many as two cameras, with one pointed at the user for videoconferencing. " I'm confident that Apple has already planned for its next generation device to also have a camera.

The good news is that competition will keep Apple hungry, working its magic to bring better devices to the public.

Blockbuster To Declare Bankruptcy

Not verified, but likely, the news that today Blockbuster will announce bankruptcy. The end of the brick and mortar video store. The rise of digital and on demand. Buy the DVD at Target or Walmart or rent it inside the home. And while Netflix has been successfully transitioning itself to digital, Blockbuster found itself too late to the game. Once the leader and now looking like a footnote in history. Is it Chapter 7 or 13, I haven't heard. But with Blockbuster already closing stores, the end is near.

Is this a precursor to other brick and mortar stores where digital replaces hard copy. Should Game Stop be worried? Is Barnes & Noble on its last legs? The rise of new technology does not necessarily harbor the end of another. For B&N, it is the rise of the Nook. Being on top doesn't mean staying on top. The leader must continue to innovate and adapt or like Blockbuster, they will eventually fail.

Cable companies are facing the same threat from digital leading to cord cutting of cable and phone in the home. The same learnings apply. Innovate, adapt, or else.

Smartphones Leading Way to More Media Consumption

Need to check a sports score, go on your phone. Looking for a nearby restaurant idea, go on your phone. Catching up on Facebook, go on your phone. And in my case, blocked from reading personal emails at work, go on your phone. The cell phone is the connection to media and information, wherever and whenever. Convenient, compact, and always with you.

"And this rabid consumption only stands to intensify as second-generation devices become more ubiquitous. According to the study, 24 percent of people now own a web-enabled smartphone, while cellphone ownership has fallen from 81 percent to 65 percent since 2009." Also worth noting, consumption of media is not a zero sum game; that is, it is not simply being moved from one device to another. We are consuming more because it has become effortless to interact wherever we are. And the variety of content online continues to grow.

"Indeed, the barriers between traditional TV, DVR, and video-on-demand are rapidly vanishing. Watching television live still commands 78 percent of the total hours viewed, but almost a quarter of TV viewing today occurs through a mixture of DVR, VOD, and online video -- an increase of 49 percent year-to-year." This is good news for content creators developing valuable content for TV. That content can now being viewed live on TV, on DVR, through on demand, online, and on DVD.

And smartphones are being made better to support our media requirements. The iPhone from Apple took them a quantum leap forward with it's touch pad concept and now other device makers have followed with their own versions. Still, our next hump to overcome remains the power source. Longer battery life will only lead to even more media consumption.

Apple Finding Another Revenue Stream

The Apple iPad/iPhone and iTunes platform was not just smart, it was revolutionary. It has been a game changer in the phone business, music industry and book industry. As it has killed the music store and begun to cripple the book store, Apple has set its sights on its next target, the newsstand. Rather than buy your newspaper subscription from the publisher, you buy your annual subscription through Apple and get accessibility on your iPad and iPhone device. "Publishers are, wisely, worried that Apple's inserting itself as the go-to vendor for publications will make the publishers largely irrelevant, the same way it has made the music companies irrelevant."

Will publishers give up complete control? Will consumers want both print and digital version as they transition consumers. Will digital be the rebirth of the print industry and lead finally to consumers paying again for content and not just reading for free online. iTunes proved that a model can bring consumers back from stealing songs to buying them. Priced competitively with extras that are exclusive inside a walled garden of content, print subscriptions should find their subscription revenue rising.

The timing of new content with the next generation device is typical for Apple. It keeps them on the cutting edge and maintains Apple's leadership position. While Apple has never conquered the PC world with its mac line, despite being a superior product, it has found great success with the ancillary devices that we as consumers are becoming more dependent on. First the phone, then the pad. Apple is making them the must have gadgets for all.