Apple's iPad Air Ad Takes New Tact

If your were watching the football games this weekend or The Golden Globes, you may have also watched the latest Apple ad for the iPad Air.  If not, here it is:



I have to first admit that when I initially saw it, I did not think it was an Apple branded ad.  Its style and context were a complete departure from their other ads.  But the more I watch it and think about it, the more it reminds me of their first ever ad, "1984", one that separated itself from the pack.  And with this newest ad, I believe they have achieved the same result.  Forbes says it well, "The company wants to show off why people love and use its products. They may be metal, glass and silicon, but what you’re buying is experience. It couldn’t be more removed from most everything the competition is doing."  But it also places the iPad in the hands of artists, risk takers, and professionals, and makes the product an essential element of the process.  And one thing it doesn't say is that you buy it for its lowest price, claims made by Apple competitors.  No, the iPad is meant for more meaningful accomplishments, whether conducting a marching bands routines, taking or creating pictures, or discovering new species.  And this newest ad campaign takes the user on this new journey. 
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Broadcasters And Aereo Get The Attention Of The Supreme Court

Given the new round of funding that Aereo is getting, along with an aggressive rollout plan, the genie may already be out of the bottle.  Still, the Supreme Court has finally agreed to listen to the broadcasters case and decide the validity of the Aereo business.  Of course the earliest the case will begin is April which gives Aereo another quarter to advance its OTT platform. 

And should the Supreme Court deliver a ruling for or against the broadcasters' motion,  I don't expect a massive change in the current license fee structure.  If Aereo wins, consumers still need a strong broadband connection to receive the signals.  And Aereo might still want to make deals with broadcasters and cable networks to get local advertising inventory.  And cable operators will continue to pay broadcasters a license fee given the expense to build out antenna farms.  If Aereo loses, broadcasters will still come up with streaming models to deliver linear feeds of their channels, working with cable operators on an authentication process. 

So let the legal fees add up, the genie is already out of the bottle.

I've Become A Second Screen User

I must admit that lately, with certain television programming, my iPad is part of my experience with the TV show.  And a recent study out of CES indicates that I am not alone.  "About 44 percent of Americans utilize another device while watching television".  Now I must also admit that my second screen doesn't always relate to what is on the big screen.

For lots of programming, you might catch me playing an iPad game while sneaking peaks at the TV and listening for major plot changes.  And yes, some times I am forced to pause and rewind.  But I also admit that I have used my iPad for additional information related to the programming I am watching.  When watching a movie, I sometimes find myself going to IMDB to get more detail on the cast or what else that actor has been in; when watching football, I keep an eye on the CBS Scores for more detail on yards gained by the running back or pass completions.  And they add related Twitter commentary attached to the game I am watching, to share my frustration and/or joy of the results on the field.  I must also admit with award shows coming, it is fun to read the Twitter feed for the snarky comments associated with the programming and the stars being feted.

As a society, we have become much more multi-taskers in our day.  The result is a lost focus at times but we also gain incremental information that was once not available before.  I think for high involvement programming, the second screen may cause us to miss key plot points or plays on the field, but technology also lets us rewind and pause as long as others in the room don't mind.  Are there incremental revenue opportunities from the second screen, I'm not sure.  But if it delivers loyalty to those apps, we may eventually register the other marketing messages that are presented to us.  In the meantime, the use of the second screen will only continue to grow. 

Cable Network Bypassing Cable Operators For OTT

While Comcast says it saw a small increase in basic subscription, Time Warner Cable reported a Q4 drop of 250 million households.  Cord cutting might be slowing down, but no one doubts that it is still occurring in households tired of paying for channels they don't want.  That hurts new and independent cable networks unable to gain any foothold on a cable line-up.  And for the WWE, a decision it seems to bypass the cable operator to offer its brand new linear network as an ala carte service to consumers through streaming platforms.

"The WWE Network launches Feb. 24 as a streaming service for $9.99 per month with a six-month commitment and will include all 12 pay-per-view events."  Cable operators will certainly not like competition for eyeballs to Summer Slam and other monthly event based programming and could retaliate.  Cable networks like USA that carry weekly WWE programming could also decide to stop airing these shows although that also seems unlikely.  So the WWE sees tremendous upside in offering a streaming linear network to augment its media empire and ultimately reach the younger demo that has been embracing streaming video content.  Will they see the value in a $10 monthly service for just one channel?  Hardcore fans that also buy multiple PPV fights will find this to be a better deal.  I also wouldn't be surprised that it could be a better financial deal for WWE to stream rather than split revenue with each of the cable operators for its monthly fights.    

For WWE, the offer of the PPV fights included with the streaming linear subscription model could just be the tactic that assures that they surpass their breakeven level.  And other programmers who have been unable to grow their subscriber base through the cable operator model may look toward the WWE model to help create their own winning streaming linear and on demand subscription service, too.

Who Won The Gaming Platform Wars in 2013

Two new gaming platforms were released late last year and while supply was tight, demand was fierce.  Both Sony and Microsoft are trying to dominate the game platform space with the PlayStation 4 and XBox One respectively, and now we have a winner.  Announced at the CES, the PS4 outsold XBox One 4.2 mm over 3 mm devices in 2013, a healthy differential of 1.2 million consoles.  Ding, ding, ding we have a winner.

And in my own family, my son, faced with the same choice, also opted for a PS4.  His rationale, a better gaming device and more desirable games.  Of course, we had to wait in line for hours on a Sunday morning in front of a Best Buy to get the golden ticket and allow us entry into the store to purchase the player and accessories. 

For him and others that chose the PS4 comes more good news.  Sony announced that the PS4 will be enabled with backwards compatibility in order to play its older games.  In addition, "The company also on Tuesday unveiled a cloud-based TV service featuring live TV, DVR and video on demand."  It seems the next move now rests with Microsoft and their efforts to further differentiate the XBox One.  And let's not forget Nintendo and its Wii U console, a favorite it seems for younger audiences who have not yet graduated to more hard core gaming.  For now congratulations Playstation, you won the first battle of what still looks to be a longer war.

Some CES Devices In Search Of A Problem

While I have not attended CES the last few years, I do enjoy reading and watching the various news media updates on the latest gadgets and devices being highlighted at the show.  But it makes me wonder whether they will be hits or misses.  In some cases, I hear about new products and wonder if they are trying to solve a problem that doesn't exist or even simply creating a solution to a problem they hope people will want solved.

As to misses, I remember the introduction of 3D TV and the accompanying 3D glasses and thought it was something I wouldn't want on the home.  Heck I don't generally like 3D in the movies.  This year, it is the release of 4K, higher resolution than current HD and I wonder how high is high.  I mean, our eyes can only register so much clarity and the rest is wasted.  And the memory requirements to download or store 4K content will only clog an already clogged and sometimes slow broadband stream.  So for me I say 4K doesn't fly with consumers.

I saw devices that provide you a constant commentary on your heartbeat and another wearable device that measure your  golf swing.  I swear other golfers will be fuming if you keep looking down at your tablet or smartphone during a game, and slowing down and distracting what is meant to be a social game.  And while knowing my heartbeat is nice, I don't need speakers to hear it. 

My biggest issue with wearable devices are the ones that cause distraction from our normal activities.  Don't look at your watch phone while driving or your smart bracelet or Google Glasses while walking across a street.  You might get hit by a bus and your heart beat won't matter anymore.

Need to replace your stove.  One new oven includes a tablet that will tell the kids when the dinner is ready.   That one made me chuckle.  So take some of these new consumer electronic announcements for what they are worth.  Some may become the next must have device and others simply solutions searching for a problem.

2014 Media Predictions

It is the first Monday of a new year, CES is set to start again, and the stock market is off to a lukewarm pace.  And so it may just be time to come up with some 2014 media predictions.  So what should we expect from this new year?

Everyone is touting this year as the year for wearable technology.  Samsung offered its Galaxy Gear watch and others have devices to measure calories, steps, and heartbeat.  So the timing seems right for Apple to finally release its iWatch along with "softwear" and software that makes it an integral part of the Apple family.  That means deals with Nike and other companies to bring more connectivity to the devices and more useful data.  And of course the iWatch must be uniquely styled to represent an ergonomic and fashionable device.

What I don't predict and hope that Apple agrees, is a smart TV.  The margins are awful, manufacturers had a huge miss with 3D, and smart TVs can best be created with a box behind the set.  If you have to create a TV set, make a dumb big screen monitor, but let other devices run it. 

And speaking of boxes, its time for Apple TV to get bigger, stronger, better.  I also wouldn't be surprised if TiVo finds itself an acquisition target with Samsung or Apple willing to own.  For me, the box behind the HDTV set will become the most crucial piece of equipment.

In the world of cable, I expect consolidation on both the operator and the programmer side.  Time Warner Cable seems the most likely candidate these days, but should a deal fall through, I think Cablevision remains the next likely candidate.  On the network side, I expect a programmer like AMC Networks and Scripps to both be on the market.  Smaller programmers too will find themselves at risk; perhaps even changing their business model to focus entirely on the streaming marketplace. 

And speaking of streaming, I expect that by year end, Hulu's owners will have tried and failed to get along.  The service will be back up for sale and networks will focus on their own streaming platforms.  TV Everywhere will become (ATC) for Authenticated TV Everywhere and licensing deals with cable operators will include authorizations to stream.  Regardless, cable subscription will continue to drop although at a slower rate.  A better economy will mean that consumers will keep their cable subscription AND subscribe to streaming services like Netflix.  

For print media, Time Inc will disengage from its parent, Time Warner and build extensive video relationships.  Successful print companies will merge their digital and print subscriptions for one price and consumers can choose to donate their print copy to schools, libraries, and other establishments or continue to receive.  Print and broadcast will build better synergies to provide more extensive news coverage and deeper analysis.  Writers will report on air and encourage viewers to visit their site for more coverage. 

Radio may just see a resurgence.  Perhaps it is time for NBC to own some radio stations and here in the NY market to hear the familiar call of "W Ennnn B C".  CBS appears to be finding some success in radio and NBC would like to own a piece.  And streaming music will only get more competitive with Spotify, Pandora, Apple, and others pushing their subscription services through broadcast and cable. 

So those are some of my 2014 predictions.  While I have no research or facts or rumor to back any of it up, it just seems like these scenarios are likely to happen.  How many do I get right; well a scorecard at the end of the year may just be the way to go. 

NY Times To Identify Native Ads As Paid Posts

The New York Times believes in separation of church and state, or in the world of media, the separation of editorial and advertisement.  And to assure that their readers also know the difference, the NYT,  per its publisher, "will set apart such articles online with a different typeface. It will also feature a color bar, the advertiser’s logo and, perhaps most importantly, the label 'paid post.'”  That they will take such measures to clearly differentiate is notable, it may undo the value of native advertising to make users think it is editorial content. 

What it does do is put The New York Times on higher ground in that they so actively showcase the differentiation for the sake of real journalism.  By creating such transparency between ad and editorial, they have set themselves apart from other news and information web sites.  Will others follow and do more to assure their readers of what is independent and what is sponsored; for the sake of the advertising community and the future of advertising, I hope so.

Have a Happy Holiday!

Hulu Confirms Why Owners Didn't Sell

For all the conflict whether the owners should sell off Hulu, the decision to keep onto their prized digital streaming distribution platform appears to have paid off.  In 2013, Hulu can count 5 million paying subscribers and $1 bullion dollars in revenue.  Yes Austin Powers, I said $1 billion dollars!  Not bad for a business that is only five years old. 

Hopefully the owners have now decided that they can indeed work together and build a common strategy in what is shaping as a very competitive streaming entertainment landscape.  Certainly, Hulu is not the leader in the category.  Netflix is twice the size and although it doesn't have the ad stream that Hulu does, it subscription revenue is almost four times higher.  And Amazon Prime, which operates its streaming business inside its mega retail environment, is equally as powerful.  For these and others in the space, it is still a very nascent business.  The growth potential remains enormous.

With Christmas around the corner, more and more consumers will be buying their gaming platforms, tablets, Roku and TiVo and Apple TV boxes, and they will all be looking for content to power these devices.  Streaming and downloads will continue to grow and the broadband infrastructure will have to figure out how to accommodate all this traffic.  And Hulu, Netflix, and others can continue to ride the growth curve.  So kudos Hulu owners for staying with the platform and not selling out; you have hit one milestone and, with a strong strategic plan, on the right path to future success.