What Happens When The Cloud Goes Down

Whether we like it or not, we all seem to be addicted to something.  Some may be more destructive than others, but in the end, we must be capable of living without.  So too is the case with the web.  We are addicted and when our networks shut down, we feel pain.  "The big news over the weekend was an Amazon cloud storage outage that took down services like Instagram, Pinterest, and Netflix in the wee hours of Saturday morning."  Yikes, for some, it may have felt like the world was ending.  No connection to Instagram, what will we do?

And not only did weather affect our websites, so did the decision to change our "official" time.  " To correct for minor decelerations in Earth's rotation, timekeepers added an extra second to the clock on Saturday – bringing Earth roughly four-tenths of a second ahead of the official time instead of six-tenths of a second behind. But one tiny little second change managed to bring down a number of the Web's more well-known sites, such as Reddit, Yelp, Linkedin, all of Gawker media's various Web properties, 4chan, Fark, Stumbleupon, and irate Bay, to name a few."  What will we do when a real catastrophe occur?

It makes me think of all the science fiction tv shows and movies out there that show what happens when we are no longer connected.  Remember  that Twilight Zone episode when a neighborhood is plunged into darkness, no phones, no electricity, and the neighbors panic and turn onto each other.  Will we become so addicted to our web connection that a loss in power will do the same thing to us?  Or can we remain calm and remember to breathe.  Sites may be down but it shouldn't mark the beginning of panic.  At the same time, shouldn't we have back up systems in case of emergency.  They always worked on Star Trek!

A Digital Life Means No Anonymity

We seem to mind less and less that we are being tracked.  Our movements, our likes, and yes even our reading habits are being analyzed over and over again.  "The major new players in e-book publishing—Amazon, Apple and Google—can easily track how far readers are getting in books, how long they spend reading them and which search terms they use to find books. Book apps for tablets like the iPad, Kindle Fire and Nook record how many times readers open the app and how much time they spend reading."  And yet for the convenience of e-reading, we seem to be okay with being tracked.

Now the argument is always that all the data is aggregated and that individual usage remains anonymous, but one has to wonder for how long.  The need for targeting may start out wide but eventually it will begin to move to the individual.  Should we be paranoid; probably not.  But we should be able to opt out.

Would Consumers Drop Their Cable Provider If They Didn't Carry Certain Networks

What if you found out that some of your networks were no longer to be carried on your current channel line-up? What if you were also told that as a good customer, you would immediately see a drop in the cost of your cable bill, say $10 a month, and a commitment to lowering your cable bill by only bringing you a smaller but more favorable line-up of linear networks?  Would you immediately call another platform provider that overbuilds your community? Would you yell and scream but ultimately do nothing with your current cable operator? Or would you thank them for finally getting that rates need to come down in order to keep their customers happy?

Well the test case could be just around the corner.  According to Multichannel, both Dish Network and AT&T U-verse could decide that rather than keep negotiating a lesser license fee increase that they will simply drop all the AMC Networks from their respective line-ups after June 30.  That could mean no AMC, no WE TV, no IFC, and no Sundance Channel.  For AT&T, it is about the license fee increases being proposed for the networks; For Dish, the issue is more than price, it is about the bitter relationship with its former parent company, Cablevision, and their VOOM business.

Could AMC Networks become the test case that cable operators will use to determine what channels they must carry on basic that may affect carrier switching or total cord cutting?  Are these operators willing to take the risk or will it end up like all other negotiations where eventually a deal is hammered out and the networks remain on the air?  AT&T may ultimately find a financial solution but I believe that Dish could just test a scenario of doing without.

Today Show Needs To Change Even More

Today Show finally officially announced this morning that Ann Curry will be stepping away from the anchor desk and pursuing more journalistic endeavors inside NBC News.  As an avid Today Show viewer, Ann never made a strong impression as a co-host, neither jelling with Matt Lauer new carrying well the softer, humanistic pieces. It was simply not a good fit and created some cringe-worthy interviews.  Frankly, not all Ann's fault, wrong person for the wrong segment.

But Ann isn't the only problem with the Today Show.  Look no further than their weather person Al Roker and there lies additional blame.  His personality overwhelms the broadcast, his segments too much about him and less about the weather.  Among his signature bits, "Sunday, Sunday, Sunday" and " These are my people" are annoying at best, but over the top mainly.  He is in fact, best enjoyed when he plays less bombastic and loud. Willard Scott may have been the role model for Al, but Willard never seemed to overwhelm the show like Al always tries to do.

Lastly, changes in the hosting should also go along with changes in the format back to a more newsy approach in the first hour, less so in the second hour.  Sure an interview with a guy that screams on a roller coaster is cute but not worthy for a first hour newscast.  There must be something better to put on.  Pick your segments more wisely and put the human interest and celebrity spotting into hour number 2.

Change for the Today may not be easy but it sure is necessary.  The moment people become disenchanted they break away from their routine and try another show.  Winning back viewers will not be easy, especially if they have found turned away.  Make us like you again, make us respect what you are telling us, and treat us to stories that define best what you want to become.  The Today Show has a long and storied history, let's get back to what makes it click.

Cable Networks Believe Movies Stop Cord Cutting

An article in today's Paid Content states that today's basic cable networks believe that movies on their network help to keep viewers from dropping their cable subscription.    And while I love a good laugh, I don't see any logical correlation between the two.  Here's the quote "As basic cable original series prove to be important product differentiators for over-the-top services like Netflix, some of the networks that produce these shows are actually relying more on high-priced theatrical movie acquisitions to maintain or increase their subscriber counts and drive ad revenue."  

Movies are indeed a comfort staple on TV.  Put a compelling one on and sure enough viewers will stop  and view; it may bring ratings, it may bring ad revenue, but it is not the stickiness that keeps consumers subscribed to cable.  With many of these same titles available uncut and commercial free elsewhere, viewers are not subscribing just so they can see an ad every 5 minutes or a constant bug in the corner of the movie promoting your channel, or worse, a pop up announcing that a new show is coming up next.  Those in fact make me consider dropping cable to find the same movie without interruptions or distractions.

What does keep consumers from cutting the cord, live programming, especially sports, that are not available easily on the web.  Exclusivity of a show not yet available online.  Differentiation is key and movies are not differentiated especially when they are available on so many other platforms.

News Corp To Split, Like Viacom and Time Warner

It seems that News Corp will be taking a page from the divestiture handbook and split itself in half.  Like Viacom and Time Warner, the notion that bigger is better is not paying off and value can be best derived from splitting itself in half.  So where to make the cut?

"News Corp. is mulling splitting its 20th Century Fox film studio, Fox broadcast network and Fox News channel from its newspapers, book publishing assets and education businesses. News Corp.'s publishing assets include The Wall Street Journal, the Times of London, the Sun and The Australian newspaper, as well as HarperCollins book publishing."  So on one side are the future growth businesses with high potential profit margins and on the other, the older print media, with declining revenues and unsure growth.  And by splitting out the two businesses, the hope is also that it unleashes higher stock market valuation.

And yet both sides are content creator businesses, one more in the video side while the other is in print.  But doesn't print hold future promise in digital once consumers fully adjust to the transition of receiving its printed content exclusively through tablets, readers, and other online platforms.  Won't News Corp be missing out on the synergy that each side of the business brings to the other or is it true that big businesses just can't get out of their own way in making this kind of synergy effective.

Perhaps the challenge of companies getting to big in size is that they lack the flexibility and the focus to adapt quickly to changing landscapes and adjust more quickly.  By trimming down, management can better focus on their business and respond more quickly to new opportunities.  Is splitting in half enough or should they split again into even smaller pieces?

The other thought is that News Corp owner, the Murdoch family, may simply be seeking to use a split as an opportunity to divorce the phone hacking drama of its newspaper empire from its broadcast and movie empire.  And once the two businesses are separated and values are unlocked, the newspaper side of the business could be sold for an attractive price.  For now, we focus on the split, but its what they do next that really matters.

Apple Motorola Patent Dispute

Despite the Federal Court's dismissal of the patent lawsuit between Apple and Motorola Mobility, " the International Trade Commission plans to review its own related ruling that the Mac, iPhone and iPad maker is infringing on a Motorola-owned Wi-Fi patent. ... With the ITC revisiting its own ruling, Motorola may find that it has lost yet another potential tool in its fight against Apple."  Does Apple owe any license fees for use of patents; are Motorola's claims untrue?   As technology continues to grow, we are seeing more and more of these types of claims.  And by the time they get settled, there is more chance that the technology has been replaced by something newer and different.

Forcing A la Carte Cable Programming Would Hurt The Cable Industry

Without the packaging of multiple cable networks at one monthly subscription price, most cable networks would fail to reach a large enough audience to succeed.  Not enough license fees, not enough advertising revenue, and not enough accessibility to build an audience and get a Nielsen rating.  "If the U.S. government mandated that TV channels be sold individually, only five to 10 traditional TV networks would survive -- destroying up to $300 billion of value, endangering some 1 million jobs and curtailing consumers' video choices, according to an analysis by Needham & Co."  So why can upstarts in the digital web space survive, less capital and fixed expenses, and small means more flexibility.  Their returns are smaller but such is the case of an upstart trying to change the system.

Consumers may desire paying less for cable, but it is the current system that pays for the content that ultimately finds its way from TV to the web.  Changes in programming are happening thanks to a free economy that  encourages competition and new forms of competition.  But this change must happen over time and not be forced by government intervention.  Letting natural market forces change the nature of how and  where people consume content will ultimately shift and move the content model to other technologies and pricing models.

Does Your Cable Operator Provide TV Everywhere?

According to the research, only one in five cable customers know that their provider offers a TV Everywhere experience.  What that means is that few current cable customers know that they can access TV shows through their cable provider's apps on mobile and computer devices.  Not a good sign for those providers that hoped that by finally offering a TV Everywhere experience, their customers would be less likely to cut the cord and go to the web.

For me, I do know that my cable provider offers shows through their app but I, like I assume most others, have gotten conditioned to look elsewhere for my TV Everywhere content.  With iTunes, Hulu, YouTube, Netflix, and others, my cable app is the last place I would think to go too find content.  Add to that my MLB  access and my TV Everywhere experience seems almost complete.  It seems the real challenge for cable operators is that they are so late to the game.  Dish delivers the slingbox experience which makes their access to linear and DVR programming appealing; other cable operators have been reluctant to offer a similar experience.

The other issue and one that really hurts the cable operator today is the rising costs of a cable subscription.  "It’s all about dollars and the perception of value. Cable subscriptions declined 2.7 percent in the first quarter, according to Bernstein data, as cash-strapped consumers look for less expensive TV viewing alternatives."  By not building a differentiated product, consumers can get a similar viewing experience at a much lower cost.  For them, cable programming is a commodity that can be served anywhere.

And so cable operators are facing some real challenges, a service that has lost its value proposition, a product that  is being served cheaper elsewhere, and a next generation consumer that is becoming more oriented to over the top programming.  For cable operators, they may soon find themselves considering a change in the business model, to a dumb pipeline with wired and wireless access for a monthly fee.  With declining profit margins the cable subscription business may finally be losing some steam.