Today's NY Post article continues to confirm that consumers are pushing away from cable subscription, especially given the current economy. "Nearly 18 percent of all US households with TVs are watching old-fashioned broadcasts delivered for free over the airwaves, up from 15 percent of homes last year, according to research firm GfK Media." This 3% rise from last year follows a rise of 1% from the year prior. With cable costs rising and digital antenna and online providing a lower cost alternative, this may be the start of a growing trend. Should we find that next year, the increase in over the air rises greater than 3%, then we can clearly say that this shift is becoming a growing trend.
But cord cutting is only one indication of trouble in cable subscription. The other is cord shaving or cord shifting, the reduction of services to lower monthly charges. "GfK’s report also found that 16 percent of households downgraded TV service this year through March, while only 11 percent of TV households said they had increased service." Is this a trend too, probably so. When the economy eventually does improve, it will be interesting to see if these same households go back to cable again or have found enough satisfaction from over the air and online. I suspect that they will.
Tuesday, June 19, 2012
Microsoft Announces Surface Tablet, But What Does It Do
The announcement of Microsoft's latest tablet, Surface, seemed to follow the Apple cookbook, little notice, no advance word, and then the talking heads. Microsoft seems to be embarking on more of a follower strategy where once in their life cycle they were seen as more the leader. In this case they are copying the Apple playbook and may soon decide they need their own retail presence.
What surprised me most about Microsoft's new tablet is that I get very little about what differentiates it from other tablets, most especially the iPad, and what unique benefits it offers to consumers. "The software giant could incorporate its Skype Internet phone software in a tablet, which could make for a compelling rival to Apple's FaceTime video-calling feature on iPhone and iPad. And integration of Microsoft's popular Kinect camera, used on Xbox, could give a tablet an unusual twist — voice and motion controls." But none of this seemed to be confirmed attributes of the Surface. How strong will the synergy be to other Microsoft operating system PCs; how quickly will a back office app store be started to provide the applications to make the Surface function? Will Microsoft hold off on an iPad friendly Office suite to give its Surface an extra edge?
Some speculate that the USB port on the Surface gives it an immediate edge. Apple continues to believe that the cloud and wireless are the ideal connections. As more and more devices come equipped with blue tooth, the need for any wired ports may become ancient history pretty quickly. As for the future of the Surface, we will wait for its actual release to determine if it is the next Xbox success or Zune failure.
What surprised me most about Microsoft's new tablet is that I get very little about what differentiates it from other tablets, most especially the iPad, and what unique benefits it offers to consumers. "The software giant could incorporate its Skype Internet phone software in a tablet, which could make for a compelling rival to Apple's FaceTime video-calling feature on iPhone and iPad. And integration of Microsoft's popular Kinect camera, used on Xbox, could give a tablet an unusual twist — voice and motion controls." But none of this seemed to be confirmed attributes of the Surface. How strong will the synergy be to other Microsoft operating system PCs; how quickly will a back office app store be started to provide the applications to make the Surface function? Will Microsoft hold off on an iPad friendly Office suite to give its Surface an extra edge?
Some speculate that the USB port on the Surface gives it an immediate edge. Apple continues to believe that the cloud and wireless are the ideal connections. As more and more devices come equipped with blue tooth, the need for any wired ports may become ancient history pretty quickly. As for the future of the Surface, we will wait for its actual release to determine if it is the next Xbox success or Zune failure.
Monday, June 18, 2012
Microsoft Tablet - More To Learn Today
By later this afternoon, we should all finally learn what Microsoft's announcement will reveal and the plan for a tablet should be confirmed. For now, speculation is that it will align with their recent investment with Barnes and Noble and synergy with their Xbox product. The Xbox makes perfect sense as I speculated in an earlier blog. What capabilities B&N bring are less known; could it be that it incorporates an app to read Nook purchased books, possibly. Or that it will use the retail locations of B&N to sell its tablet; certainly not an exclusive relationship as I'm sure every other electronic retailer, Best Buy included, that will also want a piece.
Is Apple worried, of course not. Without an engine of content behind it, like the iTunes app store, Microsoft will have a lot of catching up to do. The Xbox angle will help, but I wonder if it will be enough.
Is Apple worried, of course not. Without an engine of content behind it, like the iTunes app store, Microsoft will have a lot of catching up to do. The Xbox angle will help, but I wonder if it will be enough.
Friday, June 15, 2012
Will A Microsoft Tablet Perform Better Than Their Zune?
Microsoft is scheduled to make a big announcement on Monday. And the advance word is that it will be a tablet, competing with the Apple iPad and others. While historically, Microsoft has licensed it's software on other products, the plan may be for Microsoft to manufacture its own tablet. The question is, can Microsoft catch up to Apple or will this attempt be as unsuccessful as their Zune product, an iPod wannabee? So far the track record for Microsoft hasn't been good, but the mantra must be, never stop trying.
"The problem with this strategy in the tablet market is that Apple and Google have disrupted the business model. Google offers its software for free, and its hardware partners struggle to match Apple on the price and quality of the iPad." For Microsoft, the challenge must be to bring something new to the product line that competitors haven't done before and to make it better. I can imagine that one way to take a bite out of Apple would be to price its table noticeably lower than the iPad. Second would be to build in unique functionality that interacts seamlessly with its Xbox product. A second screen perhaps to make game playing even more immersive or controller elements from the tablet to the screen. Marketing their tablet to their Xbox loyalists could also help capture a significant share quickly, provided that a needed benefit is demonstrated.
So stay tuned for Microsoft's Monday announcement. The tablet space is getting more interesting, indeed.
"The problem with this strategy in the tablet market is that Apple and Google have disrupted the business model. Google offers its software for free, and its hardware partners struggle to match Apple on the price and quality of the iPad." For Microsoft, the challenge must be to bring something new to the product line that competitors haven't done before and to make it better. I can imagine that one way to take a bite out of Apple would be to price its table noticeably lower than the iPad. Second would be to build in unique functionality that interacts seamlessly with its Xbox product. A second screen perhaps to make game playing even more immersive or controller elements from the tablet to the screen. Marketing their tablet to their Xbox loyalists could also help capture a significant share quickly, provided that a needed benefit is demonstrated.
So stay tuned for Microsoft's Monday announcement. The tablet space is getting more interesting, indeed.
Sirius And Liberty Wrestle For Control
The fight for ownership of SiriusXM continues to play out as Liberty Media tries to buy enough shares of the stock to claim ownership of the asset. Mel Karmazin, current CEO, has no interest in ceding control and is known for not liking to be less than lead dog in the fight.
"At the heart of the battle appears to be Mr. Karmazin's conviction that Liberty shouldn't get control of Sirius without paying for it." Which seems to mean that Karmazin is happy to depart if he gets his fair share. With options currently valued near $170 million, the higher Karmazin can get Liberty to pay for the stock, the more money he can earn. And while financial reward may not be Karmazin's only win, it sure can lessen the blow of losing control to Liberty.
But it isn't all about the money and for Karmazin, perhaps the question would be, what would the next act in his career look like. He may not want to start over again with another company and might hope that his work with Sirius can continue a while longer, provided that he can still maintain full control. But should Liberty ultimately take ownership, that might not be possible.
"At the heart of the battle appears to be Mr. Karmazin's conviction that Liberty shouldn't get control of Sirius without paying for it." Which seems to mean that Karmazin is happy to depart if he gets his fair share. With options currently valued near $170 million, the higher Karmazin can get Liberty to pay for the stock, the more money he can earn. And while financial reward may not be Karmazin's only win, it sure can lessen the blow of losing control to Liberty.
But it isn't all about the money and for Karmazin, perhaps the question would be, what would the next act in his career look like. He may not want to start over again with another company and might hope that his work with Sirius can continue a while longer, provided that he can still maintain full control. But should Liberty ultimately take ownership, that might not be possible.
Thursday, June 14, 2012
Sign In With Facebook
It seems every time I open an app, I am given an option to sign in with email or sign in with Facebook. From TripAdvisor to foursquare to casual gaming sites, the option to use Facebook seems to overwhelm the page and choice. And while I am happy to have a single sight to aggregate all my sign ins, I frankly don't want to post everything I do. A vacation picture, yes; a blog, why not. But searches for vacation sights, and announcements of high scores seems just too much information that I wish to share. And frankly simply clutters the data landscape.
So when I do authorize Facebook, I feel the need to go the extra mile; turn off the postings, do not share, and do not reveal. But sometimes you feel the need to look in from the outside to see that you are sharing only what you wish and controlling the information that you want to reveal. It seems a tricky business and a fine line. It seems to be why I prefer when I can sign in with the email address, I do. Perhaps it leads to spam in my email account, but better than spam to my Facebook timeline.
So when I do authorize Facebook, I feel the need to go the extra mile; turn off the postings, do not share, and do not reveal. But sometimes you feel the need to look in from the outside to see that you are sharing only what you wish and controlling the information that you want to reveal. It seems a tricky business and a fine line. It seems to be why I prefer when I can sign in with the email address, I do. Perhaps it leads to spam in my email account, but better than spam to my Facebook timeline.
Wednesday, June 13, 2012
Cord Shaving or Cord Trimming, It's About Reducing Costs
For a couple years, I've been talking about cord shaving, reducing the subscription fee to cable programming by downsizing. Today's Paid Content article gives it a different name, cord trimming, but it means the same thing. Whatever the name, the quest is the same, " if I’m watching my shows on my Xbox 360 and iPad most of the time, why am I paying for whole-home HD DVR service?" As bills for cable, broadband, and telephone rise, consumers are fighting back.
The easiest may be to drop the wired phone. If your wireless phone is always on and with you, why a house number. Second, as the author has found, drop the level of service or negotiate with your provider on the threat of switching providers. Last, take less premium movie services; let Netflix or iTunes provide you with the movies and shows you want to watch. They may be last season, but they still entertain.
We may not be able to full cut the cord on cable programming, but we can find the ways to shave or trim our bills by actively seeking these types of savings.
The easiest may be to drop the wired phone. If your wireless phone is always on and with you, why a house number. Second, as the author has found, drop the level of service or negotiate with your provider on the threat of switching providers. Last, take less premium movie services; let Netflix or iTunes provide you with the movies and shows you want to watch. They may be last season, but they still entertain.
We may not be able to full cut the cord on cable programming, but we can find the ways to shave or trim our bills by actively seeking these types of savings.
Cable Companies Accused of Antitrust
Are cable companies practicing monopolistic behavior, driving pricing up while limiting smaller programmers and new video platforms from growing? Today's Wall Street Journal article has the Justice Department looking deeper into these practices. From talk of lack of net neutrality to pricing, it is reasonable to suspect that such behavior is in fact necessary to maintain the dominance over the customer in an industry that is rapidly seeking new means for distributing content and managing bandwidth.
The cable companies built these digital highways initially for a proprietary video platform; technological changes have enabled content to be consumed on this same highway. The cable companies want these highways to be a toll road; consumers want free travel. Cable companies want to control what you view and from whom, consumers like the a la carte choice and free to view model. And so you have conflict.
Today, that means the Justice Department digging deeper into cable practices including contract requirements that may limit where a programmer can exhibit or how much, and pricing requirements that guarantee they get the same deal as other big distributors. As the largest distributor, Comcast has the largest target on its back. Along with this current probe, Comcast is facing additional lawsuits. "The suit accuses Comcast of violating sections 1 and 2 of the Sherman Act by gobbling up competitors, then overbilling consumers for services." Now this particular lawsuit appears to have been in the courts since 2003. The wheels of justice may move so slow that technological change may find a solution before the courts do.
The cable companies built these digital highways initially for a proprietary video platform; technological changes have enabled content to be consumed on this same highway. The cable companies want these highways to be a toll road; consumers want free travel. Cable companies want to control what you view and from whom, consumers like the a la carte choice and free to view model. And so you have conflict.
Today, that means the Justice Department digging deeper into cable practices including contract requirements that may limit where a programmer can exhibit or how much, and pricing requirements that guarantee they get the same deal as other big distributors. As the largest distributor, Comcast has the largest target on its back. Along with this current probe, Comcast is facing additional lawsuits. "The suit accuses Comcast of violating sections 1 and 2 of the Sherman Act by gobbling up competitors, then overbilling consumers for services." Now this particular lawsuit appears to have been in the courts since 2003. The wheels of justice may move so slow that technological change may find a solution before the courts do.
Tuesday, June 12, 2012
T-Commerce Taking More Shape
See something on your TV screen, click and buy with your remote. Like the couch on the Mad Men set, click and buy from Crate & Barrel. It seems that the idea of adding another revenue model off the TV set is taking form and Pay Pal is working hard to build partnerships to facilitate the sale. Two separate announcements, one with Comcast and another with TiVo, each working with PayPal "to explore enabling new forms of payment on TV". Exciting stuff.
Will consumers embrace this new method of shopping and purchasing? "According to a PayPal survey conducted in October 2011, 49% of TV subscribers show an interest in purchasing goods and services linked to the content they're watching on TV, either directly from their television through their remote control, or on a smartphone or tablet." For me personally, I would be much more inclined to make that purchase off my tablet and reluctant to use my remote. Half the time, I am unsure where the remote is hiding while the iPad is next to me. I also foresee the tablet becoming the ultimate remote offering second screen capability to what is on the big TV.
For these companies, working with PayPal seems a nice first step. I am more intrigued by what Apple has planned for iOS 6 with Passbook. As a virtual wallet, it could become the way to purchase goods off the TV set, too. For the consumer, I wonder how many virtual wallets we will be willing to manage. How interesting the timing of these two announcements. Online purchasing is taking another leap forward.
Will consumers embrace this new method of shopping and purchasing? "According to a PayPal survey conducted in October 2011, 49% of TV subscribers show an interest in purchasing goods and services linked to the content they're watching on TV, either directly from their television through their remote control, or on a smartphone or tablet." For me personally, I would be much more inclined to make that purchase off my tablet and reluctant to use my remote. Half the time, I am unsure where the remote is hiding while the iPad is next to me. I also foresee the tablet becoming the ultimate remote offering second screen capability to what is on the big TV.
For these companies, working with PayPal seems a nice first step. I am more intrigued by what Apple has planned for iOS 6 with Passbook. As a virtual wallet, it could become the way to purchase goods off the TV set, too. For the consumer, I wonder how many virtual wallets we will be willing to manage. How interesting the timing of these two announcements. Online purchasing is taking another leap forward.
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