A CNBC story tells us that research from SNL Kagan indicates that "a flattening pace of cord-cutting and a projected broadband boost of 8
million subscribers over the next 10 years, media companies are quickly
shifting the way their content gets delivered to consumers." Truth is, the best way to stream is with broadband. The cost of data from cellular, mainly because of plans that charge by the gigabyte, makes an impact on the household. Households may not be buying higher packages of cable, but they are still getting the basic cable package and bundling broadband. With a broadband package, consumers have wireless accessibility for tablets and smartphones. And they get authenticated access to wireless outside the home. In the Northeast Xfinity, Optimum, Time Warner Cable and others have been building out their wireless platforms to support their subscribers.
Consumers have been moving toward streaming as a preferred way to view content. Streaming both cable and OTT content to watch on all their devices. NBC has just announced that they have already served over 1 billion streams of Olympic content. Time Warner Inc. made a big investment in Hulu, a streaming subscription service. And Disney/ESPN are finally looking at a streaming subscription package for their sports content.
The success of broadband enables cable companies to drive bundling packages in a way to keep households connected to cable TV as they drive broadband subscription growth. And per the report, the strategy has kept cord cutting from becoming a bigger issue.
Friday, August 12, 2016
Huffington Leaving Post
On the surface, the news that Arianna Huffington is leaving the company that she founded and runs to start up a new venture doesn't sound that concerning. Entrepreneurs enjoy the thrill of the start up. And with an acquisition of The Huffington Post, first by AOL and then again as Verizon bought AOL, the notion of being the big fish in a small pond gets lost as the pond becomes an ocean and you become a smaller fish relative to the size.
That Huffington is leaving to start a new venture called Thrive, a health and wellness digital site, does raise a couple questions. One, that Verizon has also just bought Yahoo and Huffington could take the health assets from this acquisition to mold her site as a venture inside of Verizon. Two, that digital health and wellness sites are already plentiful and no site has yet truly broken through. I myself have worked for a couple cable health and wellness sites, including Veria and HealthiNation, and attracting a sizable audience, either on TV or on the web, has been extremely difficult. Given all the niches, health and wellness seems to best occupy the longer tail part of viewing patterns. And third, that Huffington's new venture might have had a better distribution shot staying inside Verizon than operating independently.
So the smell taste fails me when it comes to her motivation to leave. The only argument is that she simply wants to be more independent and occupy the leadership chair in a much smaller business entity. Financial motivation may simply not be an issue for her at this time. While I wish her luck with her health and wellness venture, her best outcome for it will be its future acquisition with another site.
That Huffington is leaving to start a new venture called Thrive, a health and wellness digital site, does raise a couple questions. One, that Verizon has also just bought Yahoo and Huffington could take the health assets from this acquisition to mold her site as a venture inside of Verizon. Two, that digital health and wellness sites are already plentiful and no site has yet truly broken through. I myself have worked for a couple cable health and wellness sites, including Veria and HealthiNation, and attracting a sizable audience, either on TV or on the web, has been extremely difficult. Given all the niches, health and wellness seems to best occupy the longer tail part of viewing patterns. And third, that Huffington's new venture might have had a better distribution shot staying inside Verizon than operating independently.
So the smell taste fails me when it comes to her motivation to leave. The only argument is that she simply wants to be more independent and occupy the leadership chair in a much smaller business entity. Financial motivation may simply not be an issue for her at this time. While I wish her luck with her health and wellness venture, her best outcome for it will be its future acquisition with another site.
Thursday, August 11, 2016
Will Content Glut Reach A Tipping Point?
The rise of digital distribution has created an insatiable thirst for more content to fill the bucket. Video content is being produced not just for broadcast or cable, but for streaming services as well. We are seeing the numbers rise for both short form content, user generated content, and scripted series as well. And as Investopedia tells us, "John Landgraf said the number of scripted television shows next year
could reach 500, from an estimated number between 430 and 450 this year,
driven mainly by a rise in shows commissioned by streaming services." Landgraf, CEO of FX Network, places responsibility on the streaming media services like Netflix and Amazon. But Hulu, of which Fox Networks are an owner, could also be named as well.
The challenges of producing so much content include finding quality programs amid the morass of choice, viewers finding the needle in a haystack of endless content possibilities, and measuring success in today's overly saturated content world. With so much content choice possible to see and hear, focus becomes close to impossible and harder even to search for and find. With such a glut of content, it becomes even more important for us to use recommendation, marketing, and advanced search to help users find a match to content they would enjoy viewing.
The drive to create content is only advancing. In coming years, the numbers will only increase. Today, in fact, Turner announced an investment in Refinery29, a female skewed destination for fashion and entertainment, and one in which Scripps is also an investor, to support more content that could possibly make its way onto their channels. Content is the fuel that runs digital media distribution. Consumer thirst for more helps to drive subscription and cable revenue streams. And with advertising alongside it in some way, deliver more profit to media companies. Have we reached a tipping point? Probably not, although the challenge for creative minds is to make the content produced quality worth watching.
The challenges of producing so much content include finding quality programs amid the morass of choice, viewers finding the needle in a haystack of endless content possibilities, and measuring success in today's overly saturated content world. With so much content choice possible to see and hear, focus becomes close to impossible and harder even to search for and find. With such a glut of content, it becomes even more important for us to use recommendation, marketing, and advanced search to help users find a match to content they would enjoy viewing.
The drive to create content is only advancing. In coming years, the numbers will only increase. Today, in fact, Turner announced an investment in Refinery29, a female skewed destination for fashion and entertainment, and one in which Scripps is also an investor, to support more content that could possibly make its way onto their channels. Content is the fuel that runs digital media distribution. Consumer thirst for more helps to drive subscription and cable revenue streams. And with advertising alongside it in some way, deliver more profit to media companies. Have we reached a tipping point? Probably not, although the challenge for creative minds is to make the content produced quality worth watching.
Tuesday, August 9, 2016
Comcast Says Future Of TV Is X1
Great read in Business Insider called "How the battle for TV's future could take over your whole house". Matt Strauss, EVP of Comcast Video Services, sees TV evolving in a new way. The TV continues to be the centerpiece of the house and that smarter features out of the X1 cable box offers the user more control. "X1 is a cross between an advanced TV guide and a virtual
assistant, and Comcast thinks it will compete with the likes of
Amazon's Alexa-powered Echo and Apple's Siri-powered Apple TV." With a touch of the microphone button on the remote, the X1 box can find channels, shows, answer simple questions, and possibly more.
Strauss believes that the X1 box can be the "hub" for which the home can likely get smarter. As we tend to have TVs in almost every room, attaching an X1 box to each TV that all communicate up to the cloud and share back info, creates a unified smart home experience. And while we may not always want the TV screen to be on, the X1 box is always on. That opens itself up to a larger future.
From my own experience with X1 so far, I see the potential. The next generation of boxes will need to work on voice command without remote button push, like the Amazon Echo. One could say, "X1, what is the weather today", just as we ask Alexa. It could potentially then answer back rather than put answer on screen. Than we could say, "X1 turn TV on or off", again without a remote button push. The future possibilities are endless. Perhaps a partnership for Comcast and Apple Siri to explore.
As to the Comcast plan, As Business Insider suggests, "So for Comcast, winning the future of TV could mean winning the entire house in the process." I agree.
Strauss believes that the X1 box can be the "hub" for which the home can likely get smarter. As we tend to have TVs in almost every room, attaching an X1 box to each TV that all communicate up to the cloud and share back info, creates a unified smart home experience. And while we may not always want the TV screen to be on, the X1 box is always on. That opens itself up to a larger future.
From my own experience with X1 so far, I see the potential. The next generation of boxes will need to work on voice command without remote button push, like the Amazon Echo. One could say, "X1, what is the weather today", just as we ask Alexa. It could potentially then answer back rather than put answer on screen. Than we could say, "X1 turn TV on or off", again without a remote button push. The future possibilities are endless. Perhaps a partnership for Comcast and Apple Siri to explore.
As to the Comcast plan, As Business Insider suggests, "So for Comcast, winning the future of TV could mean winning the entire house in the process." I agree.
Facebook To Stop Ad Blockers From Working
As much as we all seem to hate ads, they are the lifeblood, the revenue, that drives the growth off many media businesses. But too many, too cluttered, too irrelevant, and they make the experience of watching or reading content less enjoyable. In the digital world, ads also tend to slow down the streaming process, as they attempt to figure out which ad to present and run on site. As a result, many users have installed ad blockers to quicken the web load refresh process and let users enjoy only the content.
Facebook says they have figured out how to "block the blockers" to help them assure that ads are seen and their revenue grows. But in an attempt to aid the user, Facebook is also offering more control on what ads to see and what ads to hide. How much more control remains to be seen and whether it is more useful to the viewing experience.
While some use ad blockers to improve the page load, others use ad blockers to improve personal privacy and protection from possible malware. Many want to be anonymous in their viewing process and do not want to be tracked. While my biggest gripe is how ads slow down the page from loading, I also believe that a number of the ads presented are simply not relevant to me. That Facebook wants to improve that experience is helpful, but more importantly, they need to improve the load refresh of the page.
Facebook says they have figured out how to "block the blockers" to help them assure that ads are seen and their revenue grows. But in an attempt to aid the user, Facebook is also offering more control on what ads to see and what ads to hide. How much more control remains to be seen and whether it is more useful to the viewing experience.
While some use ad blockers to improve the page load, others use ad blockers to improve personal privacy and protection from possible malware. Many want to be anonymous in their viewing process and do not want to be tracked. While my biggest gripe is how ads slow down the page from loading, I also believe that a number of the ads presented are simply not relevant to me. That Facebook wants to improve that experience is helpful, but more importantly, they need to improve the load refresh of the page.
Monday, August 8, 2016
Walmart Buys Jet.com To Catch Up To Amazon
Today, Walmart announced that they are indeed buying Amazon competitor Jet.com. Likely to close by end of year, the rationale to purchase seems obvious, play catch up to Amazon. But to make it work, the strategy will require a visible way to make the physical stores and online presence a bigger, better, more enticing experience than what Amazon already offers. Not an easy task.
According to the NY Times, "Under the deal, Walmart and Jet will continue to operate as distinct brands." Walmart believes initially, they will have leverage to price their products lower and yet still profit. But as Amazon demostrates, it is more than just lower prices. Convenience, delivery, a wide range of products and services from many vendors, plus the Prime business of cheaper delivery and streaming content truly helps the Amazon brand.
Walmart and Jet.com, operating independently may not be an ideal fit. Finding the synergistic elements as well as the marketing approach that clearly shows the benefits to the end user are essential. That will take a lot of work. Done well, it could make them a venerable competitor. It could also draw in other brick and mortar retail operations to build out their own delivery operations as well. We see it already with supermarket chains offering home delivery services. And department stores seem willing to ship for free merchandise not already available in store for pickup to the home. So for Walmart, Jet.com must do something more to take away Amazon market share.
Once the acquisition closes, it will be fascinating to see how good a fit the two brands can make. But the real win will be if it adds value to the operation and delivers results that exists today. Retail is a tough world, operating on thin margins. Walmart and Jet must see that this merger is a good move for both.
According to the NY Times, "Under the deal, Walmart and Jet will continue to operate as distinct brands." Walmart believes initially, they will have leverage to price their products lower and yet still profit. But as Amazon demostrates, it is more than just lower prices. Convenience, delivery, a wide range of products and services from many vendors, plus the Prime business of cheaper delivery and streaming content truly helps the Amazon brand.
Walmart and Jet.com, operating independently may not be an ideal fit. Finding the synergistic elements as well as the marketing approach that clearly shows the benefits to the end user are essential. That will take a lot of work. Done well, it could make them a venerable competitor. It could also draw in other brick and mortar retail operations to build out their own delivery operations as well. We see it already with supermarket chains offering home delivery services. And department stores seem willing to ship for free merchandise not already available in store for pickup to the home. So for Walmart, Jet.com must do something more to take away Amazon market share.
Once the acquisition closes, it will be fascinating to see how good a fit the two brands can make. But the real win will be if it adds value to the operation and delivers results that exists today. Retail is a tough world, operating on thin margins. Walmart and Jet must see that this merger is a good move for both.
Friday, August 5, 2016
I Upgraded My Comcast Cable Box
As much as we would love all our devices to work without extra boxes on top, the added features and benefits that a cable boc can bring might just offset working directly from a smart TV. Of course, that depends on the frequency in which devices automatically upgrade and improve their features and benefits.
For now, my TV viewing requires a cable box to watch cable programming, a DVD to watch certain videos, and a Google Chromecast to stream Netflix and other videos. I have yet to add the Apple TV, waiting either for a better price or some wow feature to make me want to buy it.
I did upgrade my Comcast cable DVR box to the new X1. I like the added memory by storing DVR content in the cloud and I like the ease of recording and search. And mostly, I like the voice control on the remote to access and switch channels. Just press the button and say NBC and the box switches the channel. Say the name of a show and it will find it for recording. Overall, I am happy with the upgrade.
But there is still work to be done to improve the X1 more. There is still a long latency switching channels and certain features are cumbersome to access. I wouldn't mind a quicker way to delete a watched show and an undo button if you accidentally erased something (although it may be possible to recover a deleted program). The TV Guide is not as clean as it could be nor easy to navigate smoothly. And the remote still has too many buttons that can make finding the right one to hit a chore. Still, the voice feature is a real winner and one that makes me glad to have upgraded.
For now, my TV viewing requires a cable box to watch cable programming, a DVD to watch certain videos, and a Google Chromecast to stream Netflix and other videos. I have yet to add the Apple TV, waiting either for a better price or some wow feature to make me want to buy it.
I did upgrade my Comcast cable DVR box to the new X1. I like the added memory by storing DVR content in the cloud and I like the ease of recording and search. And mostly, I like the voice control on the remote to access and switch channels. Just press the button and say NBC and the box switches the channel. Say the name of a show and it will find it for recording. Overall, I am happy with the upgrade.
But there is still work to be done to improve the X1 more. There is still a long latency switching channels and certain features are cumbersome to access. I wouldn't mind a quicker way to delete a watched show and an undo button if you accidentally erased something (although it may be possible to recover a deleted program). The TV Guide is not as clean as it could be nor easy to navigate smoothly. And the remote still has too many buttons that can make finding the right one to hit a chore. Still, the voice feature is a real winner and one that makes me glad to have upgraded.
Thursday, August 4, 2016
Who Wants MTV?
Viacom was part of the birth of cable networks. It created MTV and its first music video was from the Buggles, "Video Killed the Radio Star". Many have worried that digital streaming has done the same to cable. Radio has survived but has certainly changed if not weakened. IHeartRadio, a major radio player faces the prospect of bankruptcy. But back to MTV and the question on everyone's mind, do people still want their MTV? (Sorry Dire Straits).
Can MTV and its owner Viacom keep their eye on the business while facing so much scrutiny around the competency of its founder and controlling owner, Sumner Redstone. If quarterly financials are an indication, then not likely. Per the NY Times, "Viacom reported a 29 percent decline in profit in the latest fiscal quarter, putting its management in the hot seat as it continues to wage a brutal fight for control of the entertainment company." Not just double digit but more than a quarter percent drop in profitability. The noise coming from ownership control seems to have created quite a distraction to the running of the business. A shame given the once powerful brands like MTV, Comedy Central and Paramount.
Given that Redstone needs to be ruled competent or incompetent while he currently owns a significant block of shares likely means the inability for an outside company to come in with an acquisition offer. The courts must first decide whether Redstone, his daughter, or someone else has voting authority to those shares. Any offer for Viacom would have to take a backseat until that is first decided. But the media market is changing quickly and the value of MTV et al may no longer be there. Does anybody want their MTV anymore?
Can MTV and its owner Viacom keep their eye on the business while facing so much scrutiny around the competency of its founder and controlling owner, Sumner Redstone. If quarterly financials are an indication, then not likely. Per the NY Times, "Viacom reported a 29 percent decline in profit in the latest fiscal quarter, putting its management in the hot seat as it continues to wage a brutal fight for control of the entertainment company." Not just double digit but more than a quarter percent drop in profitability. The noise coming from ownership control seems to have created quite a distraction to the running of the business. A shame given the once powerful brands like MTV, Comedy Central and Paramount.
Given that Redstone needs to be ruled competent or incompetent while he currently owns a significant block of shares likely means the inability for an outside company to come in with an acquisition offer. The courts must first decide whether Redstone, his daughter, or someone else has voting authority to those shares. Any offer for Viacom would have to take a backseat until that is first decided. But the media market is changing quickly and the value of MTV et al may no longer be there. Does anybody want their MTV anymore?
Wednesday, August 3, 2016
Is Time Warner More Appealing To Apple
Time Warner released its quarterly earnings and the news seems to be well received. With future earnings expected to rise, the content business is growing. At the same time, Time Warner announced plans to buy a 10% stake in Hulu, a streaming competitor of Netflix and Amazon. HBO continues to operate outside the Hulu platform with its subscription service HBO Go. That service is also growing. And lastly, there are rumors that Hulu plans to build a streaming platform to offer live feeds of cable nets. Adding services like CNN, TBS, and TNT to Disney and Fox sounds like the start of a compelling OTT competitor to cable.
Does this make Time Warner a more interesting asset for Apple? To own HBO, cable nets and a piece of Hulu could be a real get for Apple. And it would instantly propel Apple into the video streaming space with major content players. Add to that the Warner Bros studio and Apple could apply its influence into more immersive theatrical film experiences.
Does this make Time Warner a more interesting asset for Apple? To own HBO, cable nets and a piece of Hulu could be a real get for Apple. And it would instantly propel Apple into the video streaming space with major content players. Add to that the Warner Bros studio and Apple could apply its influence into more immersive theatrical film experiences.
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