TiVo Seems Ready for IPTV And The Cloud

Great news from the TiVo camp on their partnership with Entone.  "The agreement appears to represent TiVo’s first that will factor in potential cloud DVR services. Last week, TiVo CEO Tom Rogers said his company doesn’t care whether DVR storage is based in the cloud or in the home, but still believes that local storage still hold some advantages."  It also clearly shows that TiVo is following the trend toward more IP based and OTT content opportunities.  There is clearly more push toward IP based distribution and this partnership will foreshadow the direction the cable companies need to proceed.

What To Expect From Next Apple Announcement

Apple is prepping for its next announcement on Tuesday and speculation of its agenda goes from big to small.  Will they finally announce an Apple television set or will the next new thing finally be the apple iWatch?  With Samsung preparing to announce its own smartwatch, Apple might need to as well or be seen as late to the party.  There are others don't expect much more than the planned upgrades to iOS and the next iteration of the iPhone, with cheaper prices and multiple colors.

And what about the Apple TV set top box that has been around for some time but not nearly as popular as other set top devices.  One news article suggests that a new upgrade is coming to the device with more functionality and additional streaming video partnerships.  Could this be enough to increase demand for the $99 box or will a price cut also be in the strategy? 

I think Apple has more potential working with their set top box then trying to build a TV set, especially as cable and broadcast networks remain firmly in bed with cable operators.  We are a decade or more away from a time where serious cord cutting has enough impact that consumers are buying TVs with direct connections to broadband services.  Consumers have become increasingly comfortable with boxes sitting on top, on the side and even behind their TV set, providing additional controls and ergonomic features.  In fact, I think it might be smart for TV manufacturers to go the opposite route and build a monitor only big screen device that requires the functionality of a third party box as its brains.  One less remote to clutter the coffee table and a better consumer experience. 

For now, it is one week till the next Apple announcement. Let's enjoy watching its stock price rise and fall on speculation and expectation. 

Microsoft Making New Acquisition Into Smartphones

If you can't make it, buy it.  Microsoft has announced that it is buying Nokia's handset business in order to take more control over the manufacturing process and build on their past success.  "Microsoft is betting it will have a better chance of narrowing the gap if it seizes complete control over how the mobile devices work with its Windows software."  Given the fickle nature of phone lovers, the race for dominance in the market is fierce.  Where once Nokia held the top position, now it is Apple and Samsung, but that doesn't mean tat Microsoft and Nokia can't get back in the race.  At the same time, it is more than just the device; it is the apps that run behind it.  Microsoft has much more work ahead of it to gain a foothold against the Android and Apple libraries.  Still, anything is possible and the race is far from over. 

CBS And Time Warner Cable Settle At Last

As of 6pm ET last night, Time Warner Cable customers in NY, LA and other markets got their CBS networks turned on.  And with NFL a week away, just in time.  "The companies didn't disclose specific terms of their new retransmission contract, which spells out the amount of money that TWC pays CBS for the rights to carry the CBS-owned TV stations."  And as all their customers know, that means to expect another subscriber rate increase.  So what happens to all those over the air antennas that customers may have bought?  Perhaps back in the closet till the next broadcast network follows the same playbook. 

Could Microsoft Spin Off XBox?

With Steve Ballmer's announcement that he will retire within the next 12 months as Microsoft's CEO, investors may be clamoring for more value from the stock.  According to the report, a possible scenario could have Microsoft spinning off XBox into a separate business.  Certainly, XBox has been one of the true winners in recent years for Microsoft.  And while their operating system has been their main source of revenue, the decline in computer sales has put pressure on the business.  Microsoft needs XBox as well as other new innovations.  Whether their Surface Tablet can achieve that status remains to be seen, but till then, a spin off of XBox seems quite short sighted. 

Amazon Seeks New Wireless Connections to Its Content

The biggest challenge facing OTT content companies like Amazon and Netflix, OTT boxes like Roku, Apple TV, and Aereo, and even smart TV manufacturers like Samsung, is that they all rely on existing broadband providers.   That means that even cable cord cutters still must get their broadband service from their cable or telco provider.  We've seen that when a customer drops cable service, the price of their broadband service rises because they no longer get the discount advantage.  I continue to say that new competition in broadband service is needed to keep price points low.  Well Amazon might just be on the same page. 

"The wireless network, which was tested in Cupertino, California, used spectrum controlled by satellite communications company Globalstar Inc. (GSAT), said the people who asked not to be identified because the test was private."  How far Amazon wants to get into this space remains to be seen although it might make sense, give the capital costs, to partner with other OTT companies to create a wireless/broadband competitor to cable and the telcos.  And while Google is building a fiber based business in Kansas City, a wireless competitor that can effectively handle video streaming would be ideal.  Certainly Dish had been trying this route in trying to acquire Clearwire.  Should GSAT have the spectrum to handle such capacity, Amazon may have found a new business model and a seamless connection from consumer directly to their content. 

Microsoft Post Steve Balmer

While not earth shattering, Microsoft revealed that its CEO, Steve Ballmer, will retire in the next 12 month.  No successor has been named to succeed him in the role.  Many have believed that Microsoft has needed new leadership to compete in a more mobile marketplace.  While its Office software and operating system dominate the business world, consumers have moved to more free-based software from Google and others.  PC sales have also been declining and Microsoft has not been able to break through the tablet or smartphone world with a winning product.  Its biggest success continues to be XBox and it is looking forward to higher revenues from the release of its newest platform. 

So how will the stock market react later today to this news?  Hopefully NASDAQ opens today without a hitch and I suspect analysts will see more positives out of this long term transition.  There is plenty of time to announce a successor.  And time will tell if the next CEO can best steer Microsoft to new highs. 

Political Debates Encourage Temporary Reprieve

While the Time Warner Cable and CBS saga goes on past 2 weeks, both sides have agreed to an exception to their blackout in New York City.  Political elections outweigh US Open Tennis and NFL Football it seems as three different debates will be allowed to air from CBS onto the TWC system.    "The comptroller debate will air Thursday, August 22, from 7 to 8 p.m. The GOP mayoral debate will air at 7 p.m. on August 28 and the Democratic runoff debate at 7 p.m. on Sept. 23." 

Whether the two sides have gotten closer to resolving the renewal has yet to be seen.  To appease viewers, TWC is airing Tennis Channel coverage of the US Open and opening up premium access to some Starz programming.  Of course, consumers would also love to see a decrease in their bills as a sign of passing the savings to the customer.  How long this blackout remains in effect could depend ultimately on the start of the Fall TV season.  Still, CBS must be losing significant revenue from political advertising being pulled off their schedule as a result of not being watchable.  With the first regular season NFL football game and premieres, the amount of losses can only increasing.  What that breakeven is to those losses to the increase in license fee revenue is one the accountants at CBS are likely analyzing on a near constant basis.

TiVo Adds Slingbox Capabilities, Are More Cable Partnerships Coming

TiVo has announced its latest DVR box that seems to do everything from show live and on demand programming to watching streaming video from the web and pushing it out to the TV screen or to any mobile device.  While expensive, with the top of the line box costing $600, it also seems to deliver the kind of rich media experience that heavy video users want, high capacity recorder, TV Everywhere capabilities, and cable and streaming connections.  And of course TiVo is known for a recommendation engine that records shows that might also interest you. 

"The Roamio enhancements could also help the cable industry slow the wave of consumer defections, known as cord-cutters."  The challenge of the cost and the ease of interface with cable operators still matters.  Most cable customers expect their cable operator to deliver them a box ready to plug in and use, with easy installation and service from the company.  Those cable operators already partnering with TiVo deserve praise for seeing the value this option gives to their customers.  Other cable operators need to also start partnering with TiVo.  It becomes too much trouble to make the consumer go through too many steps to get a TiVo and ensure that it works correctly on their cable system.  From getting a CableCard to correct installation and handshake with the cable technology creates trouble.  We should be beyond that for authentication purposes.  It is time for cable operators to get on the TiVo bandwagon and embrace what is an anti-cord cutting machine.