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Wednesday, April 4, 2012

Cable Nets - That Was Then, This Is Now

Today's list of cable nets weren't always known by their current names.  Some moved from names to letters, others from one name to another.  And for some, the names and focus continue to change.  The most recent news comes from Discovery Channel who is giving a name change to Planet Green.  Prior to that  incarnation, they were known as Discovery Home and beginning on May 28, they will be known as Destination America.

Will this new brand name finally catch hold, we can only wait and see.  In the meantime, here's a list of other networks that have changed their name.  It is not a complete list so go ahead and add other names in the comment section. As too many nets changed from names to initials, I will exclude those from this list.

Then And Now
Discover Health ... OWN
Movietime... E!
Financial News Network ... CNBC
Court TV ... TruTV
The Comedy Channel and Ha! ... Comedy Central
SciFi ... SyFy
Romance Classics ... WeTV
ZDTV ... TechTV ... G4
CBN Cable Network ... The Family Channel ... Fox Family ... ABC Family
CNN2 ... CNN Headline News ... HLN

So long Planet Green.  We hardly had any time to watch ya.

Does Too Big Help Or Hurt The US Economy?

Today's opinion article in the Wall Street Journal, "How Huge Banks Threaten The Economy" could easily be applied to every other oligopoly operating in the economy.  Certainly, we have all felt the effects that the banks have had on the housing market and mortgages and how the US Government was needed to protect them as they were "too big to fail".  The editorial position is that too big is anti-competitive and that small can "improve competition and market discipline, important forces that were reduced as the industry consolidated."

So should this movement to limit consolidation be applied to other industries?  If we are consistent in our approach, then shouldn't the same principals be applied to the wireless industry.  The FCC did stop AT&T from acquiring T-Mobile but they haven't stopped Verizon and AT&T from having the majority of the market.  Wasn't the break up of AT&T into the Baby Bells that first step only to find the Baby Bells merging into a bigger powerhouse than the original parent.

We've seen consolidation in the airline industry too.  United has merged with Continental and USAir wants American.  The result, less competition and higher fares.  Like the banking industry, the airlines have little competition to alter the marketplace.

And what about the consolidation of cable operators.  Time Warner Cable just acquired the assets of Insight Communication.  Comcast, Time Warner, Cox, Charter, and Cablevision have risen to control almost the entire marketplace.

Each of these industries and company leaders would tell you that big drives employment, innovation, cost efficiencies, and better products.  They would argue that government interference only hurts growth and profitability.  Of course in the case of the banks, without the bailout, most may have gone bankrupt and the economy might have been ruined for a decade or longer.

Limiting the size of companies within industries may be a noble attempt, but eventually the big fish always eat the little fish and subsequently keep getting larger.  Just like the breakup of Ma Bell tried to make the communication smaller, it eventually led to consolidation again.  We may think that small is preferable; but eventually, companies either get bigger, get acquired, or go out of business.

Tuesday, April 3, 2012

Clash Of The Morning News Titans

For those that are fans of the morning news shows, the big story this week has been the return of Katie Couric to a morning co-anchor role; this time however, it is with a different network, ABC and Good Morning America. NBC's Today Show countered by bringing back another former host, their own Meredith Viera, as well as Sarah Palin.  And CBS, pushing with a rare guest  appearance by Oprah Winfrey.  Who needs soap operas when the drams is on which morning show will win the ratings for the week.  Will NBC finally lose its ratings dominance after an extremely long period on top of the leader board?

My wife and I are regular Today Show viewers. But frankly, we have gotten a little tired of the format.  We are in want of more news at the 7 am hour but instead get hit with more programming oriented or other non news interviews.  The personal stories, especially when Ann interviews a guest, have become hard to watch.  She takes on a different voice when she wants to show empathy, but frankly I find it more cringe worthy.  But the Today Show problem is larger than Ann.  It has become about hype not news stories.  The personalities of Al and Ann on screen have  become  larger than the news itself.  And I have struggled to stay tuned in.

Seeing Katie back on the air caused me to switch over and watch.  But beside her, the stories and the way they were hyped and presented, looked almost identical to the Today Show approach.  ABC may see a lift this week, but I don't believe that many will switch over permanently from NBC.

Phone Hacking Gets James Murdoch To Resign, Is Rupert Next?

The British phone hacking scandal that resulted in the closing of News Of The World has claimed another victim.  This time it is BSkyB Chairman James Murdoch, son of Rupert Murdoch.  The phone hacking issue continues to have legs and has not been forgotten; rather, it may truly indicate that more was going on than was first announced.

"The phone-hacking revelations have led to an ongoing public inquiry, conducted by Lord Justice Leveson, into the culture and ethics of the British press.  Mr Murdoch and his father Rupert are expected to give evidence to the inquiry in the coming weeks."  Could that lead to another resignation?  Perhaps more was known from the  top leadership than initially announced.  We can only watch as the drama continues to unfold.

Monday, April 2, 2012

Hey Mel Karmazin, Why Is Everybody Picking On You

As Rodney Dangerfield liked to always say, "I get no respect", it seems that Mel Karmazin may feel the same way.  Known for his very public fight with Sumner Redstone when he headed up Viacom and now he is facing another fight, this with John Malone.  When you are owned by shareholders, there is always a risk of loss of control, unless you hold enough of the shares; in this case, it may be John Malone, who has that control.

A few years ago, Malone was the white knight, coming in to rescue Karmazin and Sirius from the clutches of another player, Charlie Ergan and Dish Network.  Again, someone was trying to push Karmazin out but at the last minute Malone arrived to save him.  Now as Malone turns from white knight to king, it is his turn to take something away from Karmazin.  Will Mel ever get a break?

John Malone has good reasons to want and pick up Sirius.  "If Liberty gets approval, which could be a lengthy process, the company would be able to use its existing stake to take control. Approval also would let Liberty more easily lift its holding in Sirius above 50%, a move that offers Liberty lucrative tax advantages."  How this plays out and what happens next to Karmazin remains to be seen.  But Karmazin likes to be in charge and if Malone takes control, it is likely that once again, Mel will be looking for the next business to manage.  One piece of advice; own it, or someone else will again try to disrespect you.  Thanks Rodney!

Friday, March 30, 2012

Ironic - Netflix Buys DVD.com

After going to such lengths to try to divorce its streaming business from its DVD business, Netflix has decided that it can't do without the DVD association.  So to keep people coming to their Netflix site, they have bought the domain DVD.com.  And to add to the irony, here is the quote from Netflix, "Netflix's recent purchase of DVD.com was reported Friday by Domain Name Wire. In a statement, Netflix said, 'Netflix cares about keeping DVD healthy, and this is just one small investment in keeping DVD healthy.'"  Funny stuff. Netflix and the DVD, together again.

Can RIM And Blackberry Survive?

In the playground game, top of the hill, once you reach the pinnacle you are alone to face others trying to replace you at the top.  For kids, the results tend to not have lasting effects but in the world of big business, once you fall, it is hard to get back to the top.  For those that do, it takes renewed vigor, risk taking, and even some luck.  


RIM and its notable smartphone product line, the Blackberry, were once at the top; today, they have fallen off that perch and may not have the talent or the skills to climb back up.  "BlackBerry's best advantages -- excellent security on its phones and the popular BlackBerry Messenger service -- are no longer enough, he said. Rivals have developed competitive tools."  The Apple iPhone and Google's Android phones have become more preferable by many for both business and personal use.  


I currently possess both an Apple iPhone and a Blackberry Bold 9900.  The iPhone is my personal one; the Blackberry, given by my employer for business.  Where once I preferred the Blackberry, now I find them harder to enjoy.  Too many buttons, both physical and on the screen, and icons that I don't recognize their use till I touch them.  And frankly, once I've embraced the simplicity of Apple products, the harder time I have going back to non Apple products, phones and computers alike.


Will consumers embrace Blackberry again: I personally don't think so.  With the direction that their financials are taking, a massive change would be necessary, but with leadership jumping off, it will only be harder for RIM to get up the mountain on its own. Is RIM a likely target for acquisition?  Perhaps Google may want to consider them but with their pending acquisition of Motorola, the timing may not be right.  Another likely choice could be Microsoft who could use another entry into the smartphone and tablet space.  And of course their is other smartphone makers like LG and Samsung. 


As the Apple and Google fight continues on, and Blackberry sitting on the sidelines, the best course of action may just be an outright sale of the company.

Thursday, March 29, 2012

More Sports Cable Networks Really Mean...

Before cable ruled the TV landscape, if you wanted to watch a football, baseball, or other professional sport, you turned to broadcast TV.  Cable networks opened up the platform for more sports to be shown.  That new competition enabled teams to pay more for athletes and soon the costs were passed on to higher TV rights fees. Broadcast initially relied on ad sales to pay the  bills but cable networks allowed license fees to add another revenue lift to the bottom line.  And as costs got higher, so did the networks' license fees.  Now these same professional games are moving off broadcast as more and more networks pop up.  Now there are regional sports networks like MSG, YES, Sportsnet and others, and unique professional sports networks like NFL, Redzone, MLB, and NHL.  And don't forget sports on ESPN - 1,2,3, Golf, Versus (now NBC Sports Net), Speedchannel, Fuel, and others.  So more sports on more sports cable networks really mean more that these cable networks will keep raising license fees and these fees will be passed on as higher cable bills to the consumer.


Where once sports was accessible and free, now it costs more and more to watch as different leagues are available on different channels.  Sports programming has spread out to too many channels and costs rise at a quicker pace.  "'The success of all these networks will depend on the quality of their sports rights,' David Joyce, an analyst at Miller Tabak & Co. in New York, said in an interview. 'There’s been a lot of competition for those rights and that’s driven up costs.'”


More networks means more bidding wars for the top programming.  NBC will be aggressive to make its Golf Channel unit more valuable by pushing better events on the channel; the same will happen with its former Versus network, now called NBC Sports.  And Fox is likely to do the same to make their channels more competitive and more expensive.  And to compete, ESPN, with 3 channels to fill, will have to pay more for the sports that they want to obtain or retain.  


To pay the higher costs, ad rates and yes the license fees to cable operators will only rise.  The fights that we see between sports networks and their parent companies and cable operators will become more nasty and the consumer will see dropped channels eventually come back on the lineup and lead to further increases in our monthly cable bill.  

Wednesday, March 28, 2012

Harry Potter vs Katniss Everdeen - Which E-Book Rules

Two great characters, two great book series and movies, and now the comparison extends to the e-books.  With Harry Potter books finally available for download, we can start to compare their e-book sales stats. The big difference is that The Hunger Game series is sold through typical channels while Potter took the unusual route of selling access only from its website.  It may just become the preferred way to sell books without paying huge margins to Amazon, Barnes & Noble, or Apple.  is there really a competition between the two, no.  It's great to see that there are still great stories being written that can appeal to both a young and old audience.