Second Screen Apps Not One Size Fits All

Speaking at the NextTV Summit, ABC's Digital EVP noted that second screen apps aren't effective for all kinds of TV viewing behavior.  "He acknowledged that second-screen apps can work for some kinds of content, including sports, news, reality programming and awards shows."  But according to Chang, they are less effective for the typical shows on television and notes that it is more distracting than complementary.  I also agree with that opinion, especially when being used simultaneously with the on-screen action.

Dramas, especially, that require high involvement viewing require constant attention to the screen.  And while commercials offer a downtime, TV executives prefer to think they are still watching the TV, not leaving the room.  Having another device open only lessens the feeling of being in the action.  Less so, perhaps with comedies, but still viewers want to listen and watch for the laughs.  It is certainly in the live events where anything can happen, sports and award shows for instance, where there is room to add a second screen during the show.    Twitter and Facebook have proven that.  Less though for most other network programming to monetize and more likely the live water cooler for snarky comments.

And so ABC will back off from the use of second screen apps tied to their shows.  According to Chang, there was not enough opportunity to grow revenue and efforts will now be placed on other opportunities.  I expect that other networks will agree with Chang's assessment.

Does Cable Need More Regulation?

According to a Gigaom report, a member of the US House of Representatives wants to propose a bill to limit how larger multi channel programmers can leverage their larger networks to assure carriage of their smaller ones.  It would also eliminate blackouts of broadcast networks despite being out of contract.  And while this bill may appear consumer friendly on the surface, unbundling networks and limiting the negotiation process only stifles growth and opportunity.  It is a short sighted attempt at changing an industry that is already experiencing massive change.

Both networks and operators have more choices for carriage than ever before.  The rise of Over The Top (OTT) platforms and the growth of broadband and wireless has encouraged competition and in fact caused cable operators to see that price hikes have led to a loss of cable subscribers.  Programmers have also found themselves being dropped from cable line-ups.  Rather than create laws to limit the current business model, Congress should be doing more to encourage lower barriers of entry to broadband.  Encourage companies to offer alternative platforms to cable.  Enable new companies to build broadband infrastructures.  Enable competition rather than limit it. 

This proposed bill is not the correct means to the end.  While this bill is unlikely to gain much traction, it still demonstrates that Congress is wrongly focused on where the industry is headed.  Competition is the key to better service and lower prices for the consumer.  The rise of mobile devices is indicative that efforts should instead be on improving and growing our broadband highway. 

Apple Announcement Only About The iPhone

If you are wondering why the stock price today on Apple is dropping, you can blame it on expectations not meeting the announcement.  It was all about the iPhone with no discussion about new products like an Apple television or an iWatch.  Not even a word on a software upgrade to the Apple TV.  And that likely means no new products for Q4.  For competitors like Samsung, it means they have the Holiday Season to sell their new wearable device without Apple breathing down their neck.  Sure its nice to have a new iPhone, but it was a lot of talk for very little new information.  Certainly it gets harder than ever to surprise fans with so much news that leaks out beforehand; but still, it would have been nice to hear about their next device. 

Netflix A Complement To Cable Programming

In a first move for a cable operator, Virgin Media has agreed to add the Netflix app in their menu choices on their cable box.  That means that those Virgin customers that have a Netflix subscription will have access to programming from traditional cable as well as from their streaming OTT service. 

"The agreement marks a breakthrough for Netflix, blurring the line between traditional pay-TV and so-called over-the-top services delivered through the Web, such as Netflix and Amazon.com Inc.’s U.K.-based LoveFilm. Virgin Media customers will be able to search for Netflix shows on the same on-screen guide they use to hunt for pay-TV programs."  No U.S. cable operator has embraced such a move.  For Liberty Global owned Virgin Media, it indicates that they see these OTT services as becoming more added value to their cable service and less competitive.  It provides consumers with an easier ability to watch these streaming videos on the same TV that they watch networks and VOD.  Consumers that simply seek more video choices, this complement creates added value for the cable operator.

Most likely, cable operators like Comcast and Time Warner Cable will closely watch Virgin for signs that this partnership does indeed work or that it only leads to consumers further cutting the cord on their cable service.  Some research has indicated that a majority of consumers actually are both cable and Netflix consumers, speculating that these OTT services aren't what drives consumers to cut the cord.  Other factors like cable costs, disposable income, etc. may be the true drivers.  For now, this partnership between Virgin Media and Netflix challenges the notion that cable and OTT can't work together. 

The Future Of Net Neutrality

Are all video streams created equal or do some have more power over others?  And should money dictate who gets the right -of-way on the information highway?  That certainly may be part of what comes from the District Court case between Verizon and the FCC.

What is true is that yesterday's laws regarding telephone access and telecommunication have changed dramatically with the rise and growth of the internet.  The influx of more devices, broadband and, video streaming have created a more complex superhighway that no longer abides by the old rules. And the result has been a concern about access, speed, and preference.

According to "Susan Crawford, a tech policy expert and professor at the Benjamin N. Cardozo School of Law who served as Special Assistant to President Obama for Science, Technology, and Innovation Policy. 'The question presented by the case is: Does the U.S. government have any role in ensuring ubiquitous, open, world-class, interconnected, reasonably priced Internet access?'” If not, then should the businesses that have built these highways and access points, companies like Verizon, AT&T, Comcast, Time Warner Cable, and others, have the final say in issuing access, speed limits, and right of way?  Ultimately, is the web a regulated, open highway or a private turnpike?

Net neutrality laws were designed to assure that all web traffic was treated equally by the provider of broadband and wireless services.  No favoritism or HOV lanes to the ones that pay an extra fee.  For the companies that have spent huge amounts of capital building these online highways, they believe that "they should have more latitude in deciding what content travels over those networks."  It is a classic case between private business and public policy.  Which way the District Court decides matters little; it is the kind of case that ultimately must find itself in front of the Supreme Court.  Concerns on both sides of the issue are plenty and the final decision will have huge repercussions.

 

Samsung Smartwatch Getting Great Press From Today Show

Thanks to Hoda Kotb and the Today Show, the Samsung Smartwatch has been getting some great press.  While demonstrating the new watch, Hoda accidentally shared her cell phone number as well.  The result, she began to receive call after call as well as voice mail messages.  The resulting flub has led to more press on the Today Show as well as across media.  Great stuff.

Aereo Competitor Shut Down By The Courts

Federal courts sided with the broadcasters against FilmOn X, an Aereo type of product that offers consumers broadband access to broadcast channels.  While not completely stopped, FilmOn X can not continue to operate its business under their lawsuit is settled.  "The injunction issued by (U.S. District Judge Rosemary) Collyer applies nationwide, except in the jurisdiction of the 2nd Circuit, which includes New York, Connecticut and Vermont. The 2nd Circuit's decision in the Aereo case applies in that geographical region, Collyer said."  

How different the Aereo business model is from the FilmOn X model may be at the center of each of their lawsuits.  Can an antenna be an antenna whether it is in the home or situated in another area and operated by a third party?  Can these companies each claim that they are charging for the ancillary service that they offer and not for the broadcast signal itself.  Certainly in the world of digital media rights, these and other concerns need to be addressed.  For now, Aereo may be a bit concerned by this recent ruling. 

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.