The future of connectivity is the tablet and the field of sellers is becoming more and more crowded. The newest entry will come from the toy retailer, Toys R Us and is called the Tabeo. Working with the Google Android operating system, " the Tabeo comes pre-installed with 50 different apps that cover everything from games, to educational titles, to ebooks."
As a kid's tablet, it has some challenges. "With competitors like the MEEP!, Vinci, and LeapPad already targeting kids, this is certainly a sector that might be over-served already." And as kids become more and more internet savvy, they tend to migrate more quickly to their parents' devices. A child's tendency may be to install these same apps on mom or dad's tablet and wait to they upgrade to a newer model in order to "inherit it". At a price point of $150 for a Tabeo, parents might also consider purchasing the Kindle Fire, at a similar price point. And depending how Apple prices its new mini iPad and lowers the price on older iPad models, Tabeo may have a heard time justifying its positioning.
The solution for Toys R Us is not in offering only the same apps from these other tablets on their devices, it is developing unique apps exclusive to their device that drive purchase behavior. Differentiation becomes the marketing solution in the tablet market, not low cost. LeapPad has that in their devices, the Tabeo would need to do the same. The tablet wars are here and with many competitors competing for share, the competition is getting fierce.
Monday, September 10, 2012
Friday, September 7, 2012
Don't You Love Blind Taste Tests
Blind taste tests are great fun. The best ones are probably Coke vs Pepsi but I'm sure there were a few soup blind tests and others to disrupt expectations and try to throw the leader off their perch at the top of the hill. The latest blind taste test is truly unique, comparing search engines. With Google as the leader and Bing the upstart, a blind taste test is a great way for people to see that sometimes their comfort zones need to be challenged.
"Dubbed 'Bing It On,' the commercials will target a young demographic and run over the next few months on MTV, Fox (including during the premieres of "Ben & Kate" and "American Dad"), The CW, FX, ABC Family and Hulu.
An engaging commercial. Even Pepsi had a hard time converting people despite their tastes telling them they preferred Pepsi. Whether it gets people to try Bing for their searches remain to be seen.
Once people have their default search engine, it may be difficult to get them to make a switch. Perhaps Microsoft has the best chance of getting engagement with Bing is by getting companies to use Internet Explorer where Bing is the default. or convincing Apple to put Bing into Safari. There may be simply other ways to encourage more use.
"Dubbed 'Bing It On,' the commercials will target a young demographic and run over the next few months on MTV, Fox (including during the premieres of "Ben & Kate" and "American Dad"), The CW, FX, ABC Family and Hulu.
An engaging commercial. Even Pepsi had a hard time converting people despite their tastes telling them they preferred Pepsi. Whether it gets people to try Bing for their searches remain to be seen.
Once people have their default search engine, it may be difficult to get them to make a switch. Perhaps Microsoft has the best chance of getting engagement with Bing is by getting companies to use Internet Explorer where Bing is the default. or convincing Apple to put Bing into Safari. There may be simply other ways to encourage more use.
Movie Distribution Windows Changing Again
As the physical DVD becomes less desirable, the need is greater to replace this lost revenue through new approaches. Fox believes it has come up with a winning formula, to recapture that revenue; "the studio plans to offer high-definition versions of its films for sale at newly lowered prices about three weeks before making the movies available on discs and through video-on-demand services, studio executives said in interviews." At the right price point, consumers just might be interested in downloading these films for their tablet and/or computer.
The timing certainly seems smart for Fox. With new editions of Amazon Kindles coming out and a new Apple mini iPad on its way, the Holiday Season may be seeing tons of sales of these products. And these devices have an insatiable need for content. Movies, TVseries, books, and music could see a nice bump as consumers fill the pipeline for content to download.
The one question that Fox and others must face is the desire for consumers to rent or buy. Do they want to hold onto all this content that they download or simply rent it when they are interested in using it and able to delete it when they are finished or its use expires. We are generally pack rats, enjoying the feeling of ownership and instant gratification, but a digital stream rental is virtually instant and may be just as good. I'm betting on purchase behavior to prevail.
The timing certainly seems smart for Fox. With new editions of Amazon Kindles coming out and a new Apple mini iPad on its way, the Holiday Season may be seeing tons of sales of these products. And these devices have an insatiable need for content. Movies, TVseries, books, and music could see a nice bump as consumers fill the pipeline for content to download.
The one question that Fox and others must face is the desire for consumers to rent or buy. Do they want to hold onto all this content that they download or simply rent it when they are interested in using it and able to delete it when they are finished or its use expires. We are generally pack rats, enjoying the feeling of ownership and instant gratification, but a digital stream rental is virtually instant and may be just as good. I'm betting on purchase behavior to prevail.
Thursday, September 6, 2012
Tablet Pricing Reminding Me When Calculators Were First Sold
As a kid, I remember getting my first TI (Texas Instruments) Calculator. It was awesome. It not only added and subtracted, but offered features that weren't typically available. I could find the NPV (net present value) or IRR (internal rate of return) and as I recall, it cost a small fortune. But it was cool and a must have. Then Casio came in and others and competition erupted. Prices dropped. Today, these same features and more are available on very inexpensive calculators.
As we watch the tablet industry roll out, first with expensive models, it was only a matter of time that price points would begin to drop as more models and competitors vie for market share. So the announcement from Amazon on its new Kindle Fire and all its pricing levels should come as no surprise. They offer a price point for every type of consumer, from under $80 to $500. Of course the Kindle Fire is at the top of the line with new features, better screen, and faster speeds. It has all the makings of a winner.
Will Apple announce it's mini iPad next week, along with the iPhone, or wait for another date to make that next announcement? Will the mini iPad impress us as well with a price point that also causes excitement? For those that wait, it is clear that the price of tablets will only continue to decline and perhaps one day, like the calculator, be so inexpensive we will likely own more than one.
As we watch the tablet industry roll out, first with expensive models, it was only a matter of time that price points would begin to drop as more models and competitors vie for market share. So the announcement from Amazon on its new Kindle Fire and all its pricing levels should come as no surprise. They offer a price point for every type of consumer, from under $80 to $500. Of course the Kindle Fire is at the top of the line with new features, better screen, and faster speeds. It has all the makings of a winner.
Will Apple announce it's mini iPad next week, along with the iPhone, or wait for another date to make that next announcement? Will the mini iPad impress us as well with a price point that also causes excitement? For those that wait, it is clear that the price of tablets will only continue to decline and perhaps one day, like the calculator, be so inexpensive we will likely own more than one.
Smartphone Makers Race To Deliver Announcements
The smartphone wars are ramping up and the race to deliver the news first, ahead of others and before the critical fourth quarter, looks a bit chaotic. How much so, that both Nokia and Motorola, in an attempt to beat Apple to the gate have announced their phones first, but without some critical information. They missed some details that the consumer would find important to know, such as the cost of the smartphone and which wireless providers would be offering them. In this rush to beat Apple's iPhone announcement next week, one wonders if they did more damage then good to their brand. Rather than focus on what makes their unique phones great, the chatter is on the announcement itself.
Apple, on the other hand, follows the same strategy over and over again. Nothing is formally released early leading to buzz in the market about what if. As anticipation grows, an announcement of a forthcoming event eludes only to news, but only to add to the speculation. And finally, at the announced date, details are set and revealed with emphasis on the new additions and benefits they derive. And of course, the announcement includes availability and cost. It is a formula that continues to work.
With more smartphone devices reaching the consumer, the good news is that there is more choice than ever before. With the coming release of Microsoft's smartphone, Samsung, and of course Blackberry, the field continues to crowd for the race to begin.
Apple, on the other hand, follows the same strategy over and over again. Nothing is formally released early leading to buzz in the market about what if. As anticipation grows, an announcement of a forthcoming event eludes only to news, but only to add to the speculation. And finally, at the announced date, details are set and revealed with emphasis on the new additions and benefits they derive. And of course, the announcement includes availability and cost. It is a formula that continues to work.
With more smartphone devices reaching the consumer, the good news is that there is more choice than ever before. With the coming release of Microsoft's smartphone, Samsung, and of course Blackberry, the field continues to crowd for the race to begin.
Wednesday, September 5, 2012
You Tube Wants A Piece Of the Video Rental Market
Watch out cable TV, watch out Netflix, Amazon, and iTunes, You Tube is augmenting its video business. "YouTube is going to launch VOD-style movie rentals on TVs and connected devices later this year." It is starting to look like movie rentals are becoming ubiquitous, available to everyone across any platform and any service that you connect to. As the video rental stores become less relevant, the need for a DVD rental is now easily replaced with a downloadable rental that exists for your immediate enjoyment.
For the movie industry, the hope is that this on demand business, whether rental or download to own, will replace the revenue and profit earned from the DVD. But just as the DVD replaced the VHS tape, so now the digital copy has replaced the DVD. The world is all about connectivity. Let's only hope we never find ourselves stranded with no internet and no way to watch a video.
For the movie industry, the hope is that this on demand business, whether rental or download to own, will replace the revenue and profit earned from the DVD. But just as the DVD replaced the VHS tape, so now the digital copy has replaced the DVD. The world is all about connectivity. Let's only hope we never find ourselves stranded with no internet and no way to watch a video.
Tuesday, September 4, 2012
How Many Online Video Platforms Will We Have To Subscribe To?
One of the nice things about a cable subscription, believe it or not, is that it aggregates all the channels we watch, basic, premium, on demand, and sells it to us in one monthly bill that we pay. We may become disgruntled at the amount of the bill, but we pay it. Sometimes we wish we could drop channels we don't watch to try and lower our bills, but ultimately we still complain.
Those that cord cut seek out more inexpensive options online. A Netflix subscription at under $10/month becomes a good alternative to basic and premium channels. But demand for the most successful titles has brought competition to the online platform. "Amazon.com has struck a multiyear licensing agreement in the U.S. with Epix, the movie network from Paramount Pictures, MGM and Lionsgate, to stream thousands of movies after Netflix's exclusive online window with Epix expired in August." Of course those that like these titles and don't get Epix from their cable provider will now need to add an Amazon Prime subscription to their online bills. Multiple bills, multiple payments.
And depending on your interest in different types of entertainment, the likelihood is that more individual sites will arise to sell its own subscription service. Whether its multiple newspaper subscriptions, multiple music subscriptions, and now multiple video subscriptions, our entertainment budget continues to rise. There is something to be said for the cable model, one monthly price for music, sports, news, and movies. It is our insatiable appetite for more content that keeps getting us to try and find more without paying more for it.
Those that cord cut seek out more inexpensive options online. A Netflix subscription at under $10/month becomes a good alternative to basic and premium channels. But demand for the most successful titles has brought competition to the online platform. "Amazon.com has struck a multiyear licensing agreement in the U.S. with Epix, the movie network from Paramount Pictures, MGM and Lionsgate, to stream thousands of movies after Netflix's exclusive online window with Epix expired in August." Of course those that like these titles and don't get Epix from their cable provider will now need to add an Amazon Prime subscription to their online bills. Multiple bills, multiple payments.
And depending on your interest in different types of entertainment, the likelihood is that more individual sites will arise to sell its own subscription service. Whether its multiple newspaper subscriptions, multiple music subscriptions, and now multiple video subscriptions, our entertainment budget continues to rise. There is something to be said for the cable model, one monthly price for music, sports, news, and movies. It is our insatiable appetite for more content that keeps getting us to try and find more without paying more for it.
Apple Next Product Releases
Some bits of news post Labor Day that Apple will be holding a press release next Wednesday. The talk is that the next generation of the iPhone will be officially announced and new phones could be hitting the shelves shortly. Some say the phone will be slimmer, others that the screen will be slightly larger. And no doubt folks will be disappointed that it lacked this or that.
The other news, one that may or may not make it into next week's announcement is that Apple will also release its mini iPad in October. Common sense would argue that one announcement a quarter is more than enough and to hold a second conference one month later seems a distraction. Ideally, Apple making next week's announcement about both products would be big news for the company and the industry. We can only stay patient for next week to learn finally what Apple is doing in the iPhone and iPad spaces.
The other news, one that may or may not make it into next week's announcement is that Apple will also release its mini iPad in October. Common sense would argue that one announcement a quarter is more than enough and to hold a second conference one month later seems a distraction. Ideally, Apple making next week's announcement about both products would be big news for the company and the industry. We can only stay patient for next week to learn finally what Apple is doing in the iPhone and iPad spaces.
Saturday, August 25, 2012
Apple Wins Patent Fight Against Samsung
Apple has won its case in court and the jury has agreed that Samsung did indeed infringe on a large number of Apple's patents. And while the award damages exceed $1 billion, the court battle is likely to continue while the appeals process takes over. At the same time, Samsung and other competitors may just have to go back to the drawing board to design tablets and smartphone devices that don't copy Apple. Will this improve competition or limit it? Could it lead to more innovation or slow it down?
This court fight may have hurt Samsung a bit, but it is sure to affect Google and others as well. "The verdict in the trial hardly concludes the legal battles over patents among companies in the mobile business. There are dozens of such cases winding their way through the courts; Samsung and Apple have also been battling in Germany, Australia and elsewhere. Even so, Samsung remains a major supplier of components for Apple products" How ironic, that Samsung may have lost the fight but is also a winner when it comes to producing pieces for Apple devices.
This court fight may have hurt Samsung a bit, but it is sure to affect Google and others as well. "The verdict in the trial hardly concludes the legal battles over patents among companies in the mobile business. There are dozens of such cases winding their way through the courts; Samsung and Apple have also been battling in Germany, Australia and elsewhere. Even so, Samsung remains a major supplier of components for Apple products" How ironic, that Samsung may have lost the fight but is also a winner when it comes to producing pieces for Apple devices.
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