The rise of internet streaming, DVD and on-demand, as well as alternative TV usage for gaming has led to a small year over year reduction in live TV viewing, down 5 minutes. At the same time, "Americans added another 5 hours in front of the computer screen in Q2 2012 as well, using the Internet or watching video content." While this usage is being done at the same time as the TV is on or separate, 5 hours seems a substantial increase. In fact, Nielsen research shows "Close to 40 percent of Americans say they now use their tablets and smartphones while watching TV at least once a day. As many as twice that amount of people do it at least once a month."
Our viewing preferences are clearly shifting but is this problematic for live TV? Does a 5 minute reduction mean a growing trend? It seems we have always been multi-taskers in front of our TV sets. Whether reading a magazine, talking on the phone, eating a snack, or playing a game, we have treated the TV as background noise. Only with high involvement type programming, especially sports, are we drawn more into the TV set. So the growing use of computers and tablets while the TV is on seems consistent with how we have always treated our relationship with the TV set. In fact, the large screen size of the TV set makes it ideal for other non-live usage, from Netflix viewing to X-Box gaming. Live TV usage may decline as viewing our our terms becomes more and more valued.
At the same time, content companies may need to shift to more live programming to keep audiences attentive. Live showings of The Voice or American Idol and end of show voting and results are great examples of TV networks taking advantage of the benefit of live programming. News and sports also attract live viewing. It seems the most important requirement remains that the TV set remain in the on position.
Wednesday, November 14, 2012
Tuesday, November 13, 2012
Hurricanes and Technology
Like many others in the Northeast, our home was without power for a number of days. Compared to many others, we were luckier; no property damage, no flooding and no loss of life. And like many, our routines were disrupted. As a family, the loss of power meant no heat, loss of food, and no light. During the day, natural light was plentiful, but night meant candles, flashlights, and a fire in the fireplace.
Worse, was the threat that our mobile devices would run out of power; cellphones for communication, laptop and iPad for entertainment. At night we played games on the iPod, watched DVDs on the laptop or on movies previously downloaded on the iPad. We are a power hungry family. And one night's use meant that they needed recharging
So what did we learn. First, that we needed to go daily to the charging station at the town hall or rec center to juice up. We learned which restaurants had power and which didn't. And the same with neighbors and friends that got power first. We learned that the cloud may be a great way to get content, but that ultimately we need to keep a copy of the content at our fingertips. More downloaded films and more DVDs for that "rainy" day.
Andy while my Verizon cellphone could make calls and get emails, my AT&T phone could not connect. "Among the concerns: that backup-power strategies for cellphone towers based on batteries that can run for eight or 12 hours aren't sufficient in the face of outages that can go on for days." Our electric grid that powers these towers as well as homes and businesses have glaring weaknesses. Lines on poles above ground crash down as trees fall over and poles split. We are held hostage by our respective power companies as they grapple with both the storm and public officials. From town mayors to Governors, all expecting immediate results while some homes have been without power for more than 2 weeks. And our patience gets more and more strained.
Natural forces are not going away. It is not a question of if, but when will the next one strike. In a month, in a year, or in a decade. Regardless, as technology improves, more must be done to protect our power infrastructure and improve how our devices are powered. Solar charging, kinetic charging, or some other quantum leap to stay "juiced". And while we expect the cloud to hold all our data, and our entertainment, we should always consider having backups accessible and ready to use. The hurricane may be over but hopefully it provides an impetus to a better "powered' future.
Worse, was the threat that our mobile devices would run out of power; cellphones for communication, laptop and iPad for entertainment. At night we played games on the iPod, watched DVDs on the laptop or on movies previously downloaded on the iPad. We are a power hungry family. And one night's use meant that they needed recharging
So what did we learn. First, that we needed to go daily to the charging station at the town hall or rec center to juice up. We learned which restaurants had power and which didn't. And the same with neighbors and friends that got power first. We learned that the cloud may be a great way to get content, but that ultimately we need to keep a copy of the content at our fingertips. More downloaded films and more DVDs for that "rainy" day.
Andy while my Verizon cellphone could make calls and get emails, my AT&T phone could not connect. "Among the concerns: that backup-power strategies for cellphone towers based on batteries that can run for eight or 12 hours aren't sufficient in the face of outages that can go on for days." Our electric grid that powers these towers as well as homes and businesses have glaring weaknesses. Lines on poles above ground crash down as trees fall over and poles split. We are held hostage by our respective power companies as they grapple with both the storm and public officials. From town mayors to Governors, all expecting immediate results while some homes have been without power for more than 2 weeks. And our patience gets more and more strained.
Natural forces are not going away. It is not a question of if, but when will the next one strike. In a month, in a year, or in a decade. Regardless, as technology improves, more must be done to protect our power infrastructure and improve how our devices are powered. Solar charging, kinetic charging, or some other quantum leap to stay "juiced". And while we expect the cloud to hold all our data, and our entertainment, we should always consider having backups accessible and ready to use. The hurricane may be over but hopefully it provides an impetus to a better "powered' future.
Monday, November 12, 2012
The Death Of Channel Surfing
Perhaps, I am being overly dramatic, but the truth is that channel surfing is dramatically different today. With the rise of digital channels and the latency of switching the clicker one channel at a time, it is less efficient to click through channels, watching each one for a moment to decide whether to stay on the channel or switch to the next channel on the line-up. Today, it is all about the meta data and the interactive guide that presents 5 channels at a time and what is playing at the moment. With a flick of the page up (or down) button, it is off to the next 5 until one show catches our eye and we either click in on it or click the info button to read the description of the show. In addition, we now search by show, by category (like movies or sports), or take our search to the next level and look deeper in our on-demand or DVR menu for content to view on our schedule.
The art of channel surfing by peaking in on each channel is no longer efficient,. It has become a loss skill. Of course, with all the tons of content accessible to watch, it was time for a new mouse trap to be built, a new way to find and watch. Old fashioned channel surfing may be dead, but the choice of content is alive and well.
The art of channel surfing by peaking in on each channel is no longer efficient,. It has become a loss skill. Of course, with all the tons of content accessible to watch, it was time for a new mouse trap to be built, a new way to find and watch. Old fashioned channel surfing may be dead, but the choice of content is alive and well.
You Tube Following Darwin's Law
The investment in tons of content for You Tube appears to be over. It is "eat or be eaten" for more than half the content projects that You Tube funded. "YouTube figures it will end up re-investing in up to 40 percent of its original channels by the time the renewal process is done." So who gets picked and who doesn't? Well most likely it just takes a look at Google Analytics and ad revenue generated over a period of time. But should the decision be all quantitative or is there something to be said for a good idea.
As broadcasters have come to know, not every series does well immediately out of the gate. Some, including Seinfeld as a great example, need time to get discovered and enjoyed. A little nurturing of the right content can go a long way. And of course the costs associated with getting an idea on air.
But what is Google's true plan, is it to cut its total investments by 60% or take the total dollars and offer to the fewer content companies they are extending renewals to? Is content creation still part of the You Tube strategy or do they have another direction in mind? Certainly working the long tail of content may be a difficult one compared to usage generated from folks like Hulu and Netflix who each aggregate content from major broadcast, cable, and movie studio providers. And perhaps there is more need to focus on a competitive subscription service.
As for the near future, we will let Darwin continue to rule and watch the more successful You Tube Channels survive while the others must either find alternative funding to stay afloat or go away.
As broadcasters have come to know, not every series does well immediately out of the gate. Some, including Seinfeld as a great example, need time to get discovered and enjoyed. A little nurturing of the right content can go a long way. And of course the costs associated with getting an idea on air.
But what is Google's true plan, is it to cut its total investments by 60% or take the total dollars and offer to the fewer content companies they are extending renewals to? Is content creation still part of the You Tube strategy or do they have another direction in mind? Certainly working the long tail of content may be a difficult one compared to usage generated from folks like Hulu and Netflix who each aggregate content from major broadcast, cable, and movie studio providers. And perhaps there is more need to focus on a competitive subscription service.
As for the near future, we will let Darwin continue to rule and watch the more successful You Tube Channels survive while the others must either find alternative funding to stay afloat or go away.
Friday, November 9, 2012
Comics Go Digital
Comic Magazines seem to me to be a lost art. As kids find more colorful comic on the web, the desire to regularly buy the latest print editions seem an activity for past generations. Still, our comic book characters continue to perform extremely well on the big screen. Just look at The Avengers, Iron Man, and The Dark Night as a few examples.
It is time for the content of comics to merge with the digital generation. "DC Comics is making all of its periodical comic books, like Superman, Batman and Wonder Woman, available digitally through Amazon, Barnes & Noble and Apple. With those companies all launching new tablets, DC clearly sees them as an important platform for reading comics." Congratulations comic book fans. Let's hope that DC takes advantage of the interactivity that also comes with digital. At the same time, those stores still devoted to selling print copies better start to diversify their inventory to stay in business.
With the rise of more tables of different sizes into the hands of more consumers, comic content fits especially well. That tablets can do a terrific job of presenting this artwork in full rich colors can add a new appreciation to the material. From zooming further into the picture to enhancing detail, the digital platform seems a real win for both consumers and DC.
It is time for the content of comics to merge with the digital generation. "DC Comics is making all of its periodical comic books, like Superman, Batman and Wonder Woman, available digitally through Amazon, Barnes & Noble and Apple. With those companies all launching new tablets, DC clearly sees them as an important platform for reading comics." Congratulations comic book fans. Let's hope that DC takes advantage of the interactivity that also comes with digital. At the same time, those stores still devoted to selling print copies better start to diversify their inventory to stay in business.
With the rise of more tables of different sizes into the hands of more consumers, comic content fits especially well. That tablets can do a terrific job of presenting this artwork in full rich colors can add a new appreciation to the material. From zooming further into the picture to enhancing detail, the digital platform seems a real win for both consumers and DC.
Thursday, November 8, 2012
Connected TVs and Online Content
With the quickening growth of internet connected TVs and the rise of content available online, consumers are finding it easier to cut the cable cord and focus on the broadband stream. "Nearly
600 million televisions will be connected to the Internet by 2017,
which is up from the 212 million expected at the end of this year,
according to a new report from Digital TV Research." Add to that the recent announcement that CBS has finally agreed to a deal with Hulu to provide its programming for digital streaming and TV programming is now more accessible to consumers without a cable connection.
Consumers are buying these devices, from smart TVs to tablets and smartphones so that they can easily access content, print, audio, and video. As it becomes easier and easier to watch full length shows and movies over the web, the need to subscribe to cable depends on the value the household derives from the subscription. With each price increase, that decision gets revisited.
It is easy to spot the trend, the question is when does it level off and at what level will cable subscription land.
Consumers are buying these devices, from smart TVs to tablets and smartphones so that they can easily access content, print, audio, and video. As it becomes easier and easier to watch full length shows and movies over the web, the need to subscribe to cable depends on the value the household derives from the subscription. With each price increase, that decision gets revisited.
It is easy to spot the trend, the question is when does it level off and at what level will cable subscription land.
Wednesday, November 7, 2012
More Cord Cutting Confirmed
Today's Wall Street Journal echos what Time Warner Cable reported, the loss of quarterly video subscribers. Cablevision, Charter, Dish, Comcast, and others are all reporting sub losses. The only exception for this quarter is DirecTv and they may be benefiting from subs switching from cable to a lower cost provider. And it is apparent that this redistribution of video subscribers will only continue until costs for cable are reduced.
Tuesday, November 6, 2012
Cable Video Subs Dropping for Time Warner Cable
Whether we choose to believe that cord cutting is the reason cable operators are losing subscribers, the truth is that they are. The high costs of a cable subscription service coupled with the cost for broadband access and hardline telephone service means that users are taking it all, dropping all services or cutting back. And with a high cost to subscribe to cable services, the decision to drop the service when budgets are tight can be an easy one. Especially as we rate our broadband access higher than cable.
For Time Warner Cable, the proof in this loss of video subscribers is found in its quarterly earnings statement. "Time Warner Cable lost 140,000 residential video subscribers, more than the 128,000 that analysts had estimated. The cable provider also added fewer Internet and voice customers than analysts projected, a sign Time Warner Cable is struggling to market the correct bundles of services to its customers, said Paul Sweeney, an analyst at Bloomberg Industries." So while broadband and phone is showing gains, video is not. But Time Warner Cable is not alone. other cable operators are facing the same results.
Costs are most likely to blame. As consumers find themselves spending more time on the webthan in front of the TV, the value proposition has changed. And while consumers would prefer a lower cost cable bill, paying for the channels they watch, programming agreements make it difficult for cable operators to carve out lower bundles of service or offer a la carte pricing. As Dish customers learned, if you can't watch The Walking Dead on AMC, you can watch episodes on the web. And it is that transition that is hurting video subscriptions for all cable operators.
We have become show watchers, not network watchers. We barely know what network a show is carried on, especially when we DVR it or watch on demand. We search for the show, not the network. And as these shows are offered on Hulu, Netflix, and other platforms, we can choose the best platform value for our household to watch on. Unfortunately, costs of service continue to rise. And as consumers seek lower, cheaper ground to watch from, eventually, the costs to watch on these new digital platforms will rise as well, and consumers will eventually transition again.
For Time Warner Cable, the proof in this loss of video subscribers is found in its quarterly earnings statement. "Time Warner Cable lost 140,000 residential video subscribers, more than the 128,000 that analysts had estimated. The cable provider also added fewer Internet and voice customers than analysts projected, a sign Time Warner Cable is struggling to market the correct bundles of services to its customers, said Paul Sweeney, an analyst at Bloomberg Industries." So while broadband and phone is showing gains, video is not. But Time Warner Cable is not alone. other cable operators are facing the same results.
Costs are most likely to blame. As consumers find themselves spending more time on the webthan in front of the TV, the value proposition has changed. And while consumers would prefer a lower cost cable bill, paying for the channels they watch, programming agreements make it difficult for cable operators to carve out lower bundles of service or offer a la carte pricing. As Dish customers learned, if you can't watch The Walking Dead on AMC, you can watch episodes on the web. And it is that transition that is hurting video subscriptions for all cable operators.
We have become show watchers, not network watchers. We barely know what network a show is carried on, especially when we DVR it or watch on demand. We search for the show, not the network. And as these shows are offered on Hulu, Netflix, and other platforms, we can choose the best platform value for our household to watch on. Unfortunately, costs of service continue to rise. And as consumers seek lower, cheaper ground to watch from, eventually, the costs to watch on these new digital platforms will rise as well, and consumers will eventually transition again.
Monday, November 5, 2012
Current TV A Good Buy For A Digital Website
The USA Today article on Current TV makes a terrific argument for digital content to be multi-platform. With Current TV up for sale, a likely buyer could be a web brand seeking to expand its presence through cable TV. Sure, CBS could use additional cable networks to add to its roster. Why they spun off Viacom always seemed a questionable move. And other cable networks would love to have access to 60 million homes although any owner change could affect distribution. But additional buyers should come from the web, according to Michael Wolfe, USA Today writer.
"For the likes of The Huffington Post, Vice, TMZ, The Daily Beast, Gawker, BuzzFeed, CollegeHumor, Deadline Hollywood and Business Insider, Current TV could finally be a way to real money. These enterprises, having built major digital brands, now find themselves handicapped by digital business models." His rationale, while web properties barely showed a profit, if any, Current TV "took in $101 million with nearly $12 million in cash flow." Yes, there is still money in TV advertising.
Huffington Post/AOL seems a likely buyer. With a streaming channel on their website, they could provide this additional content to cable homes and grow their audience substantially. To be successful in this digital world seems to require being accessible across multiple platforms. Cable networks have been able to use the web to share its content, both as clips and full shows. TMZ has gone the other direction, moving from a web presence to syndicated programming. Success ultimately comes from being available across multiple platforms to reach an audience wherever they are. While streaming media is making its way to the smart TV, full blown cable access, preferred by many still, may be the best way to grow both revenue and profit. And for that reason alone, Current TV could be a great asset to the right media company.
"For the likes of The Huffington Post, Vice, TMZ, The Daily Beast, Gawker, BuzzFeed, CollegeHumor, Deadline Hollywood and Business Insider, Current TV could finally be a way to real money. These enterprises, having built major digital brands, now find themselves handicapped by digital business models." His rationale, while web properties barely showed a profit, if any, Current TV "took in $101 million with nearly $12 million in cash flow." Yes, there is still money in TV advertising.
Huffington Post/AOL seems a likely buyer. With a streaming channel on their website, they could provide this additional content to cable homes and grow their audience substantially. To be successful in this digital world seems to require being accessible across multiple platforms. Cable networks have been able to use the web to share its content, both as clips and full shows. TMZ has gone the other direction, moving from a web presence to syndicated programming. Success ultimately comes from being available across multiple platforms to reach an audience wherever they are. While streaming media is making its way to the smart TV, full blown cable access, preferred by many still, may be the best way to grow both revenue and profit. And for that reason alone, Current TV could be a great asset to the right media company.
Subscribe to:
Posts (Atom)
