iPhones Off The Table, I'm Wearing My Phone

I cannot tell you how many people I see at restaurants who put their smartphone out on the table so as to not miss any important call or text.  And while it seems to have become the norm, I am sure Miss Manners would have a few choice words to say about the behavior.  I also find that a smartphone in a pocket or purse can make it difficult at times to hear the ring or feel the buzz of the phone.  Well a solution is at hand, or more accurately, on the wrist.  Word has it that "Apple is experimenting with wristwatch-like devices made of curved glass, according to people familiar with the company’s explorations, who spoke on the condition that they not be named because they are not allowed to publicly discuss unreleased products."

Functional, no doubt; but let's hope that Apple partners with a fashion designer to that the product looks good too.  We have been hearing rumblings of an iWatch before.  What I hope is that the device is an extension of the iPhone and not intended to replace it completely.  Let it notify the wearer that a call is coming in and who it is from; let it share the latest iMessage, and let it remind us when an upcoming calendar appointment is due.  Would access to Siri be a win, it just might; but, let's get the ergonomics right first.  "Down the road, some people believe that "wearable computers" can replace smartphones as the next big thing."  For now, let it be a part of the iPhone infrastructure.

The Future Of Digital Content Is Exclusivity?

At the LA Innovation Forum on Tuesday, the experts in digital content spoke about the future of the industry.  At the panel Hulu's Jason "Kilar noted that the future of sites like Hulu will be with exclusive content, 'something you can't get somewhere else.'" And while I did not personally attend, I wonder if anyone challenged this notion.  Certainly not that it isn't true; rather, that it is the case for all content.

How did print content survive for so long, exclusive content.  In fact, their challenge is not just exclusive, but that the value of the content is minimized by other content that mimics it, only for less.  Print has been challenged because consumers are being asked to pay when other similar content is available for free.  Think generic drugs verse labeled prescriptions, or generic liquor verse premium liquor.  Once we believe that the premium or exclusive stuff is a better value, we as consumers will migrate back to it.  Hence, the New York Times and Wall Street Journal and other print are seeing digital subscriptions rise.

Distribution platforms that own content have a better means to protect it.  The New York Times has contracts with writers.  But except for Comcast, cable operators don't own their TV networks.  In fact, they make a business of selling content in different "windows" to try to keep content exclusive over periods of time.  Movie studios have made their business selling content across different windows, theatrical, premium, and broadcast TV.

In the movie industry, the exclusivity is threatened when content is moved in front of the pay wall and made available, sometimes illegally, to the masses.  Today's news of Disney classic animation movies not being protected on You Tube is but one example.  For cable operators, the threat is that the networks that they pay a monthly license fee for content is offering the same content to consumers on other mobile platforms.  It eliminates their exclusivity and has these cable operators literally offering broadband service to circumvent their own cable service.  Consumers who don't want to pay for cable can still get their TV shows through Hulu and other websites. 

Of course exclusivity is not the only means to gain consumer share of market.  A better transaction experience, easier download, quality of the stream of content, quantity and variety of product, and other factors affect the buying decision.  And as consumers we are willing to buy digital content once we believe it delivers to us a value proposition that works.

Char Beales To Leave CTAM

For those in the cable industry, CTAM has been the industry group for marketers.  Once representing just cable television, the  group expanded its reach when its initials were renamed to represent the Cable AND Telecommunications Association for Marketing.  I was fortunate enough to have been both a member of the organization as well as a part of the local New York Chapter, involved on a number of committees, including the Blue Ribbon Breakfast, and on the local board as Membership Director and as Vice President.  It was a great experience.

But the role of CTAM has changed a great deal in the last decade.  Controlled by the cable operators, CTAM pushed out alternative distribution providers from becoming members.  In 2011, the CTAM board voted to close all the local US chapters.  For me, it was the nail in the coffin for CTAM as the local chapters created multiple in market events and represented a cable community for its members.  Whether it was an educational panel or a holiday party, local members came together to learn, talk, and share.  And it enabled real relationships to form and grow. Without the chapters, CTAM lost its real connection for me.

So it is with a sad heart to read that CTAM's  president and CEO, Char Beales, will be leaving the helm of the ship she has guided.  For me, she is CTAM.  Whether it is her own decision or one that has been decided by the cable operators who manage the board of directors, Char probably knew that the best days of the organization were behind her.  The last straw for her may just have been seeing the end of the CTAM Summit.

The industry has changed greatly and there are far fewer cable operators to oversee.  The loss of local chapters and the Summit and other conferences makes the role of president much less impactful.  Perhaps the board felt that a "less expensive" salaried president was necessary too.  While Char will help find the next president, the future of CTAM seems to me to be a short one and I predict that it will close for good in a couple of years.

Is Charter Cable For Sale?

Is Charter Cable preparing itself for sale?  "Word has it that Charter just froze all budgets including hiring at its new headquarters in Stamford, CT. "  Speculation is that the tires are being kicked by Time Warner Cable although Cox Communication may also be in the hunt.  At the same time, TWC also announced higher  fourth quarter earnings.  We will just have to stay tuned...

Postal Service Declines The Result of Digital

We all have seen the decline of the US Postal Service as, like any government organization, has high costs and lack of innovation.  And despite their motto to deliver through all types of bad weather, it is in fact the technology environment that has taken the biggest toll.

The quantity of mail flowing through the system keeps declining with the rise of online connectivity and consumer acceptance with the web.  We don't write letters to our family and friends, we send e-mails.  We don't mail our checks to the credit card companies, we pay online.  We don't send as many birthday or anniversary or get well cards because of the speed and ease of social media.  In fact, why send a birthday card when Facebook tells me who's birthday it is today and offers me a quick link to send them some birthday wishes.  I write less checks, I send less cards, I write less letters, I buy less postage stamps.  The world around the post office has changed while the institution stays the same.

So it should come as no surprise that  the Postal Service has decided to lower its costs and adapt to less quantity of mail by reducing its workload.  "The U.S. Postal Service plans to stop delivering letters and other first-class mail on Saturdays beginning Aug. 1, although packages will continue to be delivered."  I am confident that this change will go over with barely a whisper.  Most important mail is delivered digitally.  Packages of any importance don't have to rely on the US Post Office when Fed Ex and UPS are also on the job.  It is a big change for an institution that "started Saturday delivery in 1863."  But as much as we may want to weep nostalgic, change is the only constant/

Hulu Leads Free TV Streaming

"Hulu leads the market for free streaming television services in the U.S." When I read that first line, it took me a moment to clarify this achievement from others. So among streaming providers of television shows offered for free to viewers to watch, Hulu ranks first.  At the same time, viewers are also willing to go directly to the networks' websites to stream shows as well.  And while Hulu led with 43% of TV show streams, "CBS (CBS), the only major broadcast network that does not provide its content to Hulu in the U.S., was second in total streams last year, with 10%."

When you look at TV show streams from subscription based services, Netflix is number one.  In addition, the number of streams are equally split between paid and free TV content.  So where is You Tube in the mix; obviously, You Tube is much more about short form and UGC clips and so was not compared in this study. And while this study does not indicate whether this TV streaming usage has grown from the year prior, it most likely seems that as more TV content finds itself to the web, the number of streams is increasing as well.

Apple iPhone Is Top Smartphone

The new Blackberry is coming, Samsung has the next best thing, but at least for the last quarter, Apple sold more smartphones to lead the market share.  "Apple shipped an estimated 17.7 million phones in the U.S. in the fourth quarter to score a market share of 34 percent. Those numbers were a healthy rise from the same quarter in 2011 when Apple shipped 12.8 million phones and captured a 25 percent share."  Samsung was close behind with 32% share.  Yet despite leading the market, Apple's stock price plunged.  For it is not what you have done that impresses the market, but what you are expected to do.  And as the leader in the space, the only real direction is down. 

Many cite the loss of Steve Jobs, their leader for the problems; others, the lack of innovative products since his passing.  But could Steve really have put another rabbit out of his hat?  As George Costanza of Seinfeld fame knew quite well, its best to leave after your witty remark, at the top of your game.  Jobs did just that and Tim Cook, CEO of Apple may not have his "next big thing" ready to release.  It is why there is so much tweaking of newer iPad, iPhone, and iPod products.  And why there is so much hoping that an Apple TV set could deliver the goods.

For now, enjoy the fact that apple smartphones have the largest market share.  "Though Apple had reason to cheer last quarter, Samsung was the top dog for 2012 as a whole in both shipments and market share. And Apple's latest surge was certainly buoyed by strong demand from holiday shoppers. So Samsung could easily take back the crown this quarter."  And with the new Blackberry on the shelf, the race just keeps on going.

CableCard Distribution Rising

The news out of the cable industry is that CableCards are being deployed at a higher and higher rate.  Year over year, CableCards have grown by 8% to non-cable boxes like TiVo, and the top 9 cable operators saw CableCard deployment increase 22% to their own set top boxes.  "CableCards, developed by CableLabs, provide authentication and encryption to access cable TV programming."  

So that news means that more homes are using set top boxes. At the same time, most of these same top cable companies have also reported declines in the number of households taking a cable subscription.  So what does that mean?  More cards, less homes; obviously, the conversion of cable plants from analog and digital requires that every TV set needs a set top box to unscramble the programming signals.  This the increase in CableCard deployment is simply that, the requirement that more boxes be deployed in the field so all the TV sets in the home can watch cable TV.  If anything,the research may simply indicate that the average home has multiple TV sets.  Good to know.

Is HBO Go On Apple TV A Big Deal?

Would someone explain to me why having the HBO Go App on the Apple TV device is a big deal.  "Adding HBO to the lineup of Apple TV services including Netflix Inc. (NFLX) and Hulu Plus may help the iPhone maker bolster sales of a set-top box that has faced stiff competition from similar video-delivery devices from Roku Inc. and Microsoft Corp.."  But wait, don't I already have an HBO Go app on my iPad and iPhone.  And since I need a cable subscription to watch HBO, I most likely have a cable set top box since one is required on every set to get channels as well as on demand.  So while it may sound great that Apple TV has the service, unless HBO enables a consumer to buy an HBO subscription WITHOUT going through a cable provider, I am less impressed.