In 1994, Knight Ridder had already imagined a Tablet computer. I guess the fear of losing their print business may have stopped them from making this leap. Still a fun video to watch, especially that is was created over 17 years ago.
Tuesday, April 26, 2011
Can Netflix Keep Growing?
Netflix has successfully transitioned itself from DVD rental to streaming media giant. And consumers have flocked to join the service. "At the end of the first quarter, Netflix had 22.8 million subscribers in the United States, giving it as big a footprint as the biggest American cable operator, Comcast, which reported 22.8 million subscribers at the end of last year." At the same time, Netflix has recognized that content is king and is pushing into original content. So will this bubble burst?
Netflix faces a couple of challenges as well as opportunities. The challenges include a platform with low barriers to entry. Cable companies, Apple, Amazon, Dish/Blockbuster and others make it a very crowded space. Competition also pushes up the price of content. It follows a very simple supply and demand economic pricing model. And lastly, the product is only as good as the broadband path that enables it.
But Netflix also has opportunities. Its large customer base is ripe for an advertising model that would add another revenue stream to their bottom line. And as a leader, they continue to remain innovative and forward-thinking. As they learned from DVDs, the business is ever evolving. And lastly, Netflix might also want to consider new partnerships to compete. As Comcast is owning content networks, Netflix might need to do the same. Vertical models are forming and Netflix may need its own to remain ahead.
Netflix faces a couple of challenges as well as opportunities. The challenges include a platform with low barriers to entry. Cable companies, Apple, Amazon, Dish/Blockbuster and others make it a very crowded space. Competition also pushes up the price of content. It follows a very simple supply and demand economic pricing model. And lastly, the product is only as good as the broadband path that enables it.
But Netflix also has opportunities. Its large customer base is ripe for an advertising model that would add another revenue stream to their bottom line. And as a leader, they continue to remain innovative and forward-thinking. As they learned from DVDs, the business is ever evolving. And lastly, Netflix might also want to consider new partnerships to compete. As Comcast is owning content networks, Netflix might need to do the same. Vertical models are forming and Netflix may need its own to remain ahead.
Monday, April 25, 2011
DVRs Are Helping TV Shows and Ad Revenues Are Improving
The NYT reports that DVRs are saving TV shows by demonstrating that the audiences are watching. "Instead the playback device is offering some shows a lifeline — so much so that network programmers now factor in ratings a full week after a show’s scheduled appearance." And in today's WSJ, Ad Revenues are improving. "For the second consecutive year, marketers are poised to spend more money in advance on commercials for the coming TV season than they did a year earlier, driven in part by unusually high prices for last-minute commercials this spring, according to both buyers and sellers of TV advertising." Put the two articles together, and DVRs are bringing in larger audiences and advertisers are paying for them. Certainly opposite from the thought that DVRs would hurt the TV ad model.
Truth be told, households still watch ads, even on DVRs. Especially when the content of the ads break through the clutter to resonate with the audience watching. Catch them quickly with a hook and hands don't reach for the remote to fast forward through them. In addition, Tivo is working with advertisers to provide better data to improve ad performance. With its latest legal victory, Tivo has also been in the news. Should more cable companies consider including Tivo in their own DVR, viewers would actually appreciate a better search as well as viewing experience. DVRs are in the news and it seems TV has nothing to fear.
Truth be told, households still watch ads, even on DVRs. Especially when the content of the ads break through the clutter to resonate with the audience watching. Catch them quickly with a hook and hands don't reach for the remote to fast forward through them. In addition, Tivo is working with advertisers to provide better data to improve ad performance. With its latest legal victory, Tivo has also been in the news. Should more cable companies consider including Tivo in their own DVR, viewers would actually appreciate a better search as well as viewing experience. DVRs are in the news and it seems TV has nothing to fear.
Friday, April 22, 2011
Apple In The Clouds
Apple continues to prove itself a leader, not resting on its current success, and quick to adapt to a changing entertainment landscape. As consumers seek a purchase once, play everywhere (POPE) model, businesses have been pushing to centralize content to achieve a successful model. And while Google and others have announced such intentions, Apple seems nimble enough to actually move ahead of them. "Apple Inc has completed work on an online music storage service and is set to launch it ahead of Google Inc, whose own music efforts have stalled, according to several people familiar with both companies' plans."
Obviously the challenge of centralized content is that when the system is down, there is no access. Of course the same holds true when one's own iPod stops working, too. The question is, which model is sturdier and likely to withstand constant use. A centralized approach has perhaps an easier ability to backup and protect it's content and to have secondary means to keep the systems working. "Apple, Amazon and Google are battling for control of new digital media platforms through which everyday users will access their music and videos." It also pushes hard though the WIFI and cellular systems that connect content to device. Apple and others have no control on that piece of the communication puzzle.
But who knows; perhaps, that is the next step in the Apple world. To own a communication company that makes those connections. These vertical businesses are happening in cable. Comcast owning NBC Universal being the latest example. What is stopping Apple from doing the same.
Obviously the challenge of centralized content is that when the system is down, there is no access. Of course the same holds true when one's own iPod stops working, too. The question is, which model is sturdier and likely to withstand constant use. A centralized approach has perhaps an easier ability to backup and protect it's content and to have secondary means to keep the systems working. "Apple, Amazon and Google are battling for control of new digital media platforms through which everyday users will access their music and videos." It also pushes hard though the WIFI and cellular systems that connect content to device. Apple and others have no control on that piece of the communication puzzle.
But who knows; perhaps, that is the next step in the Apple world. To own a communication company that makes those connections. These vertical businesses are happening in cable. Comcast owning NBC Universal being the latest example. What is stopping Apple from doing the same.
Thursday, April 21, 2011
Tivo Wins Again
Talk about a court case never ending and monies that may never appear, but Tivo has won again against Dish and the lawsuit still continues. "A panel of federal appeals judges has found Dish Network Corp. and EchoStar Corp. in contempt of court for failing to abide by an injunction barring them from using technology patented by TiVo Inc. in older Dish set-top boxes. The judges are sending the case back to a lower court to consider whether a work-around technology being used in newer Dish boxes still infringes on TiVo's patents." What is sure to follow is another round of appeals and more delays and by then, the technology will probably be obsolete.
Today, Tivo is to DVRs what Kleenex is to tissues, synonymous in the minds of most consumers. While certainly different in the benefits they offer, not understood by most consumers. And so while this legal fight will surely continue, Tivo must do more to ingratiate itself with both cable and over the top platforms. That means Tivo approved set top boxes, Tivo inside of XBox and Playstation and even a Tivo Apple combination. That is where the real winning will occur.
Today, Tivo is to DVRs what Kleenex is to tissues, synonymous in the minds of most consumers. While certainly different in the benefits they offer, not understood by most consumers. And so while this legal fight will surely continue, Tivo must do more to ingratiate itself with both cable and over the top platforms. That means Tivo approved set top boxes, Tivo inside of XBox and Playstation and even a Tivo Apple combination. That is where the real winning will occur.
Wednesday, April 20, 2011
How Much Would You Pay for An On Demand Movie
If you enjoy the ease of watching a newer released movie in your living room as opposed to driving to your local theater, then the question to you is how much are you willing to pay to get those movies in your home sooner. Movie studios are willing to find out. They are proposing to bring films to your home in 2 months after its theater release as opposed to 4 to 6 months. Direct TV is scheduled to test this new service. "The El Segundo-based satellite television provider will launch so-called premium video on demand Thursday with the Adam Sandler comedy, just 69 days after the film premiered in theaters. Consumers will have to pay $29.99 to rent the Sony Pictures movie for 48 hours. That's the first time a major studio movie has been available on television sets that soon after playing in theaters and at that high a price." Other films will follow.
For consumers who weren't able to watch the film in the theater and can't wait till it premieres in the next window, this option gives them more immediate enjoyment. But at $30 it hardly seems worth it, especially when the price to view in the regular on demand window is under 6 dollars. There is perhaps the rare film, like Avatar, that might justify this higher cost for an earlier window, but I doubt the returns will be impressive.
Still as DVD sales have lost ground to the digital market, studios' willingness to try new ideas is impressive. If for $30 I would own a digital copy of the film and I could access on all my devices, then I might be more inclined to consider. But to rent a movie for that amount, I might as well wait for the cheaper DVD or normal on demand window. With so much product in the marketplace, there is always something to watch.
For consumers who weren't able to watch the film in the theater and can't wait till it premieres in the next window, this option gives them more immediate enjoyment. But at $30 it hardly seems worth it, especially when the price to view in the regular on demand window is under 6 dollars. There is perhaps the rare film, like Avatar, that might justify this higher cost for an earlier window, but I doubt the returns will be impressive.
Still as DVD sales have lost ground to the digital market, studios' willingness to try new ideas is impressive. If for $30 I would own a digital copy of the film and I could access on all my devices, then I might be more inclined to consider. But to rent a movie for that amount, I might as well wait for the cheaper DVD or normal on demand window. With so much product in the marketplace, there is always something to watch.
Tuesday, April 19, 2011
Bigger Push In Over The Top Content Could Hurt Cable Operators
Cable operators should not be surprised by this story in Ad Age. "A group of deep-pocketed companies, including Microsoft and Verizon, are exploring delivering TV service over the web, a move that could disrupt the economics of cable TV and lead to a new generation of "virtual" cable companies that provide TV without owning the pipe into the home." XBox Live is there already; it is simply trying to dominate the home screen in a bigger way. And don't discount Sony Playstation and Wii as well as the rise of web connected TVs. The push is on to bypass cable subscription to bring content directly to the home.
And as these businesses are competing in the cable space, cable operators are doing the same with mobile apps to access cable programming. "The talks point to a future where consumers have the option of buying broadband internet service from one provider and TV service from another. It also promises to make the current dispute between programmers and cable companies over the right to stream content to new devices like iPads look like child's play." A sea change that could change the relationship between cable operator and consumer.
Cable operators with a broadband pipe to the home will have some leverage. The challenge will be in differentiating the value of the service from other broadband suppliers. Access to broadband may not require that a home be wired and wireless players could hit cable revenues hard. If broadband access is seen as a commodity, ultimately the lowest priced service will come out the winner.
Are we talking a revolutionary change in viewing habits; obviously not. But we are seeing a rise in cord shaving and ultimately cord cutting. Early adopters are already using over the top programming while eliminating their cable bill. Others are actually paying cable higher fees for broadband service to improve their streaming. But the rise of alternative players and the competitiveness of broadband services will force cable operators to rethink their business strategies.
And as these businesses are competing in the cable space, cable operators are doing the same with mobile apps to access cable programming. "The talks point to a future where consumers have the option of buying broadband internet service from one provider and TV service from another. It also promises to make the current dispute between programmers and cable companies over the right to stream content to new devices like iPads look like child's play." A sea change that could change the relationship between cable operator and consumer.
Cable operators with a broadband pipe to the home will have some leverage. The challenge will be in differentiating the value of the service from other broadband suppliers. Access to broadband may not require that a home be wired and wireless players could hit cable revenues hard. If broadband access is seen as a commodity, ultimately the lowest priced service will come out the winner.
Are we talking a revolutionary change in viewing habits; obviously not. But we are seeing a rise in cord shaving and ultimately cord cutting. Early adopters are already using over the top programming while eliminating their cable bill. Others are actually paying cable higher fees for broadband service to improve their streaming. But the rise of alternative players and the competitiveness of broadband services will force cable operators to rethink their business strategies.
Monday, April 18, 2011
UltraViolet Helping Warner Bros' Push of Digital Everywhere
Consumers love simplicity. And the rise of Apps on smartphones, iPads, and PCs have enabled consumers to connect with the things they love - music, wine, TV, and movies. Warner Bros. is continuing its leadership approach by working with other movie content companies and distributors to create a seamless application, currently titled 'Digital Everywhere", to find, organize, watch, and share movies.
"'Digital Everywhere' isn't a retailer like iTunes, but rather it gathers all the various ways movies can be bought or rented. It also organizes an individual's entire library of digital movies and TV shows - not just Warner brothers. And it will consumers to access their library from any internet-connected device - a TV, laptop, iPad or smartphone - through a cloud authentication system, called UltraViolet, that will be released this summer from a studio consortium." It aggregates information, organizes your current film library, searches and shares recommendations of new films, and enables you to buy or rent to your platform of choice: iTunes, Amazon, Netflix, etc. With Ultraviolet, information is managed centrally and shared across different technological platforms. And by making search, organization, and purchase easier, consumers should appreciate the ease of use and sales should surely rise.
Warner Bros. maintains a leadership in Hollywood with a willingness to collaborate with its rivals for the good of the movie industry. Ultimately, the consumer will pick the content and not the studio; building an app that strengthens the movie industry as a whole will also bring good fortune to Warner Bros. individually. It is a smart strategic move.
Not yet included in this future App is the role that the cable on demand platform plays. As the TV on demand piece brings a big financial segment, let us hope that Comcast, Time Warner Cable, and other cable operators come on board. Ultimately the consumer will choose which platform to view a movie from. While the app makes it a more level playing field for distribution, it also pushes each distributor to find new ways to differentiate itself from the competition. Without cable in the mix, 'Digital Everywhere' could still succeed and cable operators could find that they are only hurting themselves.
"'Digital Everywhere' isn't a retailer like iTunes, but rather it gathers all the various ways movies can be bought or rented. It also organizes an individual's entire library of digital movies and TV shows - not just Warner brothers. And it will consumers to access their library from any internet-connected device - a TV, laptop, iPad or smartphone - through a cloud authentication system, called UltraViolet, that will be released this summer from a studio consortium." It aggregates information, organizes your current film library, searches and shares recommendations of new films, and enables you to buy or rent to your platform of choice: iTunes, Amazon, Netflix, etc. With Ultraviolet, information is managed centrally and shared across different technological platforms. And by making search, organization, and purchase easier, consumers should appreciate the ease of use and sales should surely rise.
Warner Bros. maintains a leadership in Hollywood with a willingness to collaborate with its rivals for the good of the movie industry. Ultimately, the consumer will pick the content and not the studio; building an app that strengthens the movie industry as a whole will also bring good fortune to Warner Bros. individually. It is a smart strategic move.
Not yet included in this future App is the role that the cable on demand platform plays. As the TV on demand piece brings a big financial segment, let us hope that Comcast, Time Warner Cable, and other cable operators come on board. Ultimately the consumer will choose which platform to view a movie from. While the app makes it a more level playing field for distribution, it also pushes each distributor to find new ways to differentiate itself from the competition. Without cable in the mix, 'Digital Everywhere' could still succeed and cable operators could find that they are only hurting themselves.
Saturday, April 16, 2011
Fox, Discovery Nets Back On Time Warner Cable's iPad App
Fox, Discovery Nets Back On Time Warner Cable's iPad App: "Viacom is the only programmer still withholding its programming from Time War..."
They're Back!!!! The networks of Fox and Discovery have been returned to the Time Warner Cable App on the iPad. Was payment made; agreements to launch new channels for the streaming digital rights? No comments yet but an awfully quick turnaround.
They're Back!!!! The networks of Fox and Discovery have been returned to the Time Warner Cable App on the iPad. Was payment made; agreements to launch new channels for the streaming digital rights? No comments yet but an awfully quick turnaround.
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