Thursday, December 9, 2010
Howard Stern signs new 5-year deal with Sirius
Well despite all the rumors, of Apple and iTunes, Howard Stern renews his deal with Sirius. "The deal, which runs through the end of 2015, provides that Sirius XM can now transmit Stern's show to mobile devices. No other terms will be disclosed, the company said." Good news to listeners and good news for Sirius.
The Color Nook Is Here
E-book lovers get another generation product to satisfy their reading needs, the color Nook by Barnes and Noble. To me it seems a cross between the Kindle and the iPad and blurs the line between tablet and e-reader. Which device to purchase. One that is devoted to reading or one that also serves up video and more. I guess the answer today comes down to consumer needs and price.
It reminds me of the days many years ago when buying my first stereo system. Did you buy the all in one that combined the turntable, receiver, and cassette player or did you buy components. Want to read a book, take out your reader, want to watch a video, take out your iPad. The challenge is that because these devices tend to be more mobile, carrying more than one can be cumbersome and heavy. An all-in-one device seems more appropriate although the fear is that once the power is discharged, you are done. The more you ask of the device, the more power it needs to consume and the shorter the usage between charging.
As the article says, the readers keep improving. and in 5 years, we will marvel at how much more complex they have become. Let's hope that in that time, the power issue is solved, too.
It reminds me of the days many years ago when buying my first stereo system. Did you buy the all in one that combined the turntable, receiver, and cassette player or did you buy components. Want to read a book, take out your reader, want to watch a video, take out your iPad. The challenge is that because these devices tend to be more mobile, carrying more than one can be cumbersome and heavy. An all-in-one device seems more appropriate although the fear is that once the power is discharged, you are done. The more you ask of the device, the more power it needs to consume and the shorter the usage between charging.
As the article says, the readers keep improving. and in 5 years, we will marvel at how much more complex they have become. Let's hope that in that time, the power issue is solved, too.
Wednesday, December 8, 2010
Will Broadband Become Another Utility?
As discussions on net neutrality rage on, one idea that has been pushed has been pay for play. The heavier the usage, like videos and movie streaming, the higher the fees. No more unlimited time. Well, the good folks at Comcast, in an attempt to move their merger with NBC forward, have declared, no usage fees. "Comcast Cable Communications president Neil Smit said the nation's largest cable operator won't push for hefty charges for heavy users of its broadband service, despite recent Federal Communications Commission moves that would appear to open the door for price increases." Great, but for how long? Until the merger is approved, for one year, forever? Sometimes you wonder if these types of pronouncements are more political than true. Just like a politician, much is promised, but less is delivered. Let's just not be naive to the rhetoric.
Tuesday, December 7, 2010
TV Advertising Not Dead
Despite multiple screens that access video programming, the big screen in the house (in the living room, bedroom, kitchen, or perhaps in all three rooms) remains the best experience to watch video programming. HDTV sets, DVRs, sound systems, and such all make the home viewing experience ideal. And the consumer agrees. "Mr. Wieser (Brian Wieser, global director for forecasting at Magna Global) said he foresaw no dire effects on traditional television from the growth of what is known as over-the-top TV, which is delivery of programming through the Internet".
And because TV remains popular, TV advertising is also doing well. "TV is, by his estimates, still gaining share of the overall advertising market, he added, to 40.7 percent in 2010, from 37 percent in 2005." Certainly, slow improvements in the economy are also helping other mediums as well, including print. But the fear that TV's share would erode from computers, smart phones, or tablets, may not be true. While these devices provide flexibility of viewership, they more likely increase viewership usage, not replace the TV set.
With tax cuts being extended by Congress, and more disposable income in the hands of consumers, more ad spending should occur to help push dollars from the wallet into business hands. And with more consumer spending should come more tax revenue. Television programming remains healthy; perhaps another reason Comcast wants to buy NBC.
And because TV remains popular, TV advertising is also doing well. "TV is, by his estimates, still gaining share of the overall advertising market, he added, to 40.7 percent in 2010, from 37 percent in 2005." Certainly, slow improvements in the economy are also helping other mediums as well, including print. But the fear that TV's share would erode from computers, smart phones, or tablets, may not be true. While these devices provide flexibility of viewership, they more likely increase viewership usage, not replace the TV set.
With tax cuts being extended by Congress, and more disposable income in the hands of consumers, more ad spending should occur to help push dollars from the wallet into business hands. And with more consumer spending should come more tax revenue. Television programming remains healthy; perhaps another reason Comcast wants to buy NBC.
Monday, December 6, 2010
Free HDTV
What is old is new again, especially with a tight economy. Consumers are rediscovering the rabbit ears, although this time it is to receive digital broadcast signals. "Some viewers who have decided that they are no longer willing or able to pay for cable or satellite service, including younger ones, are buying antennas and tuning in to a surprising number of free broadcast channels. These often become part of a video diet that includes the fast-growing menu of options available online."
Yes broadband is more important to the consumer than cable programming. And because of Hulu, Netflix, and other web video providers, there is satisfaction with the choice. To compensate, Time Warner has built a new tier at a lower price, offering connection to broadcast and some inexpensive basic cable channels. A downgraded customer is better than one that leaves entirely.
In a separate article in today's NY Times, ESPN conducted a study that proved that cord cutting was not a problem. "The research comes from the same sample that Nielsen uses to project TV ratings. Nielsen verified ESPN’s findings. Similarly, data from the research firm SNL Kagan found that 119,000 customers dropped their cable or satellite subscriptions in the third quarter of this year. There are about 100 million subscriptions nationwide."
Except, look deeper into the analysis, and perhaps there may be a concern. Today's consumers are leaving cable, for telco and satellite. Why? I imagine that their competitive pricing is lower. For networks like ESPN, a sub lost to cable is gained at telco and satellite growth. Subscribers will gravitate to better value. And as TV manufacturers and gaming platforms continue to build easy access to web programming, consumers will eventually gravitate to these choices in greater volume.
So today, the numbers looks low. But like the boy that stuck his finger in the dam to stop the flow of water, other cracks soon develop and the hole gets bigger. The flow moves from trickle to small stream. Programmers will be hurt less than cable companies in the current cord cutting analysis. But it is a trend that will only keep flowing.
Yes broadband is more important to the consumer than cable programming. And because of Hulu, Netflix, and other web video providers, there is satisfaction with the choice. To compensate, Time Warner has built a new tier at a lower price, offering connection to broadcast and some inexpensive basic cable channels. A downgraded customer is better than one that leaves entirely.
In a separate article in today's NY Times, ESPN conducted a study that proved that cord cutting was not a problem. "The research comes from the same sample that Nielsen uses to project TV ratings. Nielsen verified ESPN’s findings. Similarly, data from the research firm SNL Kagan found that 119,000 customers dropped their cable or satellite subscriptions in the third quarter of this year. There are about 100 million subscriptions nationwide."
Except, look deeper into the analysis, and perhaps there may be a concern. Today's consumers are leaving cable, for telco and satellite. Why? I imagine that their competitive pricing is lower. For networks like ESPN, a sub lost to cable is gained at telco and satellite growth. Subscribers will gravitate to better value. And as TV manufacturers and gaming platforms continue to build easy access to web programming, consumers will eventually gravitate to these choices in greater volume.
So today, the numbers looks low. But like the boy that stuck his finger in the dam to stop the flow of water, other cracks soon develop and the hole gets bigger. The flow moves from trickle to small stream. Programmers will be hurt less than cable companies in the current cord cutting analysis. But it is a trend that will only keep flowing.
Friday, December 3, 2010
Sirus Rumor
Not that I believe it or even think that it is a good fit, but the rumor is that Howard Stern will leave Sirius for Apple. "According to the rumor, Howard Stern is about to sign a contract with Apple for $600 million over three years to host a new internet show over iTunes." Perhaps too, this rumor is meant to encourage Sirius to renegotiate a competitive offer. We will jsut have to wait and see.
Thursday, December 2, 2010
Netflix vs Hulu
The battle for online content continues to intrigue us, both for cable companies offering access and those outside the cable cord. The two most mentioned are Hulu and Netflix. Hulu is a partnership of content companies while Netflix works alone. And Netflix is seeing an opportunity through streaming to be more than a DVD provider. In fact, the real play is access to current TV shows not yet on DVD. "The company is in talks with studios about gaining access to current episodes of primetime shows and is willing to pay between $70,000 and $100,000 per episode, according to a person familiar with the matter. Netflix had no comment."
For content creators and distributors, more platforms likely equates to more revenue. Fox and NBC can sell their networks to cable, sell their shows to Hulu through their partnership, and sell again to Netflix. And while some consumers may cut the cord to cable for broadband only, others may actually keep their cable cord and own a Netflix subscription. Dollars are spent and content companies get richer.
Except sometimes new distribution platform upsets an old one. As an example, look at the shortening of the windows from theatrical to DVD to on demand. Fear arises that monies from one platform will simply move over and that additional dollars will not be generated. Or worse, that profits will fall. For the TV market, a similar problem exists. "The studios that supply the networks with shows argue they own the streaming rights to in-season shows. But the broadcast networks that make a profit from repeats -- and stand to lose audiences, ad dollars and syndication revenue if viewers can see those same episodes on Netflix -- argue they control the rights." The rise of streaming can hurt syndication. Still as we have learned from change, the transition is never easy. But if you don't you risk the loss of the entire business model.
Streaming is here and there is nothing to stop it. Syndication has already been hurt by the rise of cable networks, but it still exists. Streaming will coincide with syndication, it will just alter the playing field a bit more.
For content creators and distributors, more platforms likely equates to more revenue. Fox and NBC can sell their networks to cable, sell their shows to Hulu through their partnership, and sell again to Netflix. And while some consumers may cut the cord to cable for broadband only, others may actually keep their cable cord and own a Netflix subscription. Dollars are spent and content companies get richer.
Except sometimes new distribution platform upsets an old one. As an example, look at the shortening of the windows from theatrical to DVD to on demand. Fear arises that monies from one platform will simply move over and that additional dollars will not be generated. Or worse, that profits will fall. For the TV market, a similar problem exists. "The studios that supply the networks with shows argue they own the streaming rights to in-season shows. But the broadcast networks that make a profit from repeats -- and stand to lose audiences, ad dollars and syndication revenue if viewers can see those same episodes on Netflix -- argue they control the rights." The rise of streaming can hurt syndication. Still as we have learned from change, the transition is never easy. But if you don't you risk the loss of the entire business model.
Streaming is here and there is nothing to stop it. Syndication has already been hurt by the rise of cable networks, but it still exists. Streaming will coincide with syndication, it will just alter the playing field a bit more.
FCC Again Pushing Net Neutrality Proposal
A topic that will not go away, net neutrality remains a key issue to the broadband highway. "At the heart of his (FCC Chairman Julius Genachowski) proposal are two broad ideas: 1) ISPs can’t block content or favor one service over another, but 2) variable pricing based on consumer use is OK. So equal to all but fees can benefit some over others. Is it open or not. Or can ISP providers choose how to manage traffic flow. And ultimately, why can't the consumer decide which broadband provider best serves their need. Encourage more competition at the ISP level, whether wireless or wired, so that ultimately, competition not regulation, is the ultimate decider. By lowering these barriers to entry, through tax breaks and other means, a fair market run by many will favor the current monopolistic tendencies that exist today.
Wednesday, December 1, 2010
Sirius Shares Good News
Tons of good news coming out of SiriusXM recently. On the content front, the NFL deal was renewed for 5 years and a new personality joins the team, Dr. Laura Schlessinger. Hopefully a Howard Stern announcement will come shortly. On a subscription front, SiriusXM has surpassed the 20 million subscriber mark in the US. As the economy slowly improves and the Holiday Season is now around us, perhaps the gift of a Sirius subscription will push this number even higher.
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