Thursday, October 1, 2009

Comcast / NBC - Reaction to Cord Cutting?

Comcast is rumored to be in talks to merge with NBC/Universal.  Comcast's move is designed to aquire NBC/Universal's rich content library in a defensive measure against their customers increasingly accessing content directly over the internet versus paying for access on cable.

By owning content, cable operators can either prevent content from becoming available on the web for free or charge subscription access.   If Comcast actually goes through with the merge and it proves successful commercially, expect a wave of similar mergers and a fundamental shift in the industry.  

Unfortunately, such moves serve to limit consumer web access to programming.   In either case, Comcast's actions recognize the threat that internet access poses to their existing franchise.

Friday, September 25, 2009

RFID Tag meet Broadband Video

I just bought a do-it-yourself home RFID tag system called TouchaTag by Alcatel-Lucent.  RFID stands for radio frequency identification device.   Automatic toll passes, such as EZPass, use RFID technology.   Libraries use RFID tags for book check-out.  My dog has an embedded RFID tag to identify him if he is lost.  Touchatag enables you to create your own Internet of Things by attaching RFID sticker tags to everyday objects and linking these tags to computer commands and websites.  Pass the tag over a reader, and the command(s) or website is activated.

Touchatag's starter kit provides 10 RFID sticker "tags" and a USB connectible tag reader.   Here's a very simple example that I created.   I associated a tag to trigger and log-in to my daughter's math homework site.  She attached the RFID sticker to her homework folder.  To start her math homework online, she just places her folder next to the RFID sticker reader and her homework site appears on the screen.   At first, I didn't think this would be very useful, but we've grown accustomed to just "touching" the folder to begin her homework.

What does this have to do with broadband TV?   I use the same process to access various broadband TV shows, sites, or genres.   For example, if you want to watch The Office or browse what's new on the Action & Adventure channel on Hulu, just define tags and place these on a card with a picture of an office or a DVD case.   Simply touch the tag to the reader and your show appears on your broadband connected TV.

I've just started experimenting, but I can see this becoming more useful when companies introduce tags whose actions can be activated at a distance from a stationary readers or tags than can be pressed to activate.  Some phones, for example, serve as tag readers today.   NFC (near field communication) turns your phone into a an RFID tag reader so that you can activate your favorite TV on your broadband connected TV using your phone.  Here's an example using an iPhone with RFID/NFC.

At some point in the future when tags activate lights, televisions, and stereos, one can press a tag and activate a "mood" via the use of RFID and WIFI in the house.  But, now I'm getting ahead of myself...

Wednesday, September 23, 2009

Wall Street Journal - Right Trend, Wrong Application

Today's Wall Street Journal article TV Shapes Up as Web Battleground highlights a trend that I've highlighted for some time, but poses the wrong question.

Television manufactures will add the means to connect sets directly to broadband internet connections either through direct connect Ethernet cables or WiFi.

The article says that Web-enabled sets will grow to between 88 million and 90 million world-wide by 2013, around 40% of the television market. There are around 90 models on the market that are Web-enabled lead by manufacturers like Sony Corp., Samsung Electronics Co. and Vizio.

Once connected, a set-top box becomes a monitor and/or a computer depending on what applications draw you to connect your set. The article highlights how consumers may use their set top as a substitute for web viewing and debates the correct viewing format (browser or not browser) for television manufactures to use. The core question, however, is what will consumers want to do on their televisions? Past efforts at adding a key board to a TV have failed largely because consumers habitually do not view their televisions as the place to interact with text.

The most obvious use (and killer app) is streaming traditional television, video, and movies directly to televisions using formats increasingly standardized by Adobe's Flash and Microsoft's Silverlight. Whether these formats are ideal is debatable, but designers need to focus on how to make dynamic video content from the web easy for consumers to use in the mode they are already accustomed to viewing television. One cannot need a degree in network engineering to make these connections happen. Ease of use and increasing volume of web deployed video content will lead to consumer demand for web enabled televisions. From there, innovation on user interfaces blending other modes of communication designed to enrich the consumer's viewing experience can occur.

Monday, September 7, 2009

Content Aggregators - Which Model?

Throughout the summer, I've seen a growing number of free and subscription content aggregators.

I will cover content aggregators on later posts in detail.   For now, a Content Aggregator finds relevant and related web "channels" and bring them to one easy to access portal.  A few are offering cable favorites such as A&E, Discovery, etc. 

When content previously offered only through cable access is offered via broadband TV content aggregators, the competitive game gets very interesting for consumers.   How many of you subscribe to cable TV to only receive two or three of your favorite channels or to just get sports?  If a provider offered your favorite cable TV channels a la carte AND you could view these programs on your TV, would you be willing to drop your cable programing and try something new?  This is the promise of content aggregators - subscription, advertising, and hybrid models.

There is advertising supported content on Hulu; subscription supported content on NetFlix; and pay-per-view content on iTunes. Which model will win?  None of them and all of them.  I foresee a world where aggregators emerge enabling you as a consumer to "create" your own cable "package" with much more choice than today.  Aggregators will charge a monthly fee based on the programs you select.  Highly effective aggregators will provide "smart" wizards to guide you in choosing programing and making cost trade-offs. For instance, wait 3 days and you can get your favorite show for free via ad supported model or pay a subscription fee and see it live. You decide.

Therefore, if the programs you select are driven by advertising, then you'll see advertising. If by subscription, it will be included in your monthly subscription. For pay-per-view, you might get 3 viewing events included in your subscription.  Aggregators will compete based on their ease of use and "merchandising" of the exploding number of micro-channels that are emerging.  They will learn your tastes and suggest new "channels" for you to view. Social learning will become more important in driving channel and individual show uptake.  There will always be a place for the nationwide shows such as The Office or 24 to draw us together, but increasingly people will seek programs that appeal to their unique tastes. Witness the splintering of today's cable programming and the difficulty that even today's shows have in reaching audiences that were once common for Happy Days or Mash.

In short, Content Aggregators will be the cable companies of broadband TV offering much wider variety and more flexible payment models.

Tuesday, July 14, 2009

The Empire Strikes Back

Don’t expect our cable friends to go down lightly – TV Everywhere is here. Championed by Time Warner Chief Executive Jeff Bewke, "TV Everywhere," aims to preserve the industry's lucrative subscription business model amid the rise of online video.


Seeing a potential threat from the rise of online video viewing, which remains in its infancy, Comcast and Time Warner recently agreed on a framework for putting programming from cable networks online to satisfy consumer demand while still requiring customers to subscribe to a TV service in order to prevent an erosion in their revenue base.


Comcast is testing a Web authentication system that will allow 5,000 Comcast customers to verify their cable TV subscription and then access programming online in an on-demand format at Fancast.com and Comcast.net. The plan is called “On Demand Online.”


The trial will provide online access for Comcast's TV subscribers to some of TV's most popular programming, including HBO shows like "Entourage" and "True Blood" and TNT's "The Closer." AMC's "Mad Men" and "Breaking Bad" are expected to be included later this summer, and the offering will also include major Hollywood films like "Dark Night" and "Juno."


Networks have joined Comcast and TimeWarner. CBS has joined along with cable network AMC, owned by Cablevision Systems Corp. (CVC); the Food Network, owned by Scripps Networks Interactive Inc. (SNI); and BBC America, owned by the BBC. Along with others, they joined Time Warner's HBO and Turner networks as well as Liberty Media Corp.'s (LMDIA) Starz.


TV Everywhere highlights competing business models – advertiser supported content championed by Hulu.com and YouTube and subscription based models championed by Netflix and now TV Everywhere. Which model emerges as the standard is still in play. Personally, I see hybrid models similar to those available on cable today where HBO is premium content and standard network TV is advertiser supported.

Monday, June 1, 2009

Programming - SciFi

The next series of posts will give you a brief overview of programming available via sites integrated with the devices I have covered in previous posts. In the future, programs will be "aggregated" versus distributed through single channels. In the examples below, Star Trek the original series is aggregated by multiple sites.

I'm going to start with Science Fiction. This is only a sample of programming available which changes everyday. Let me know if a program is not listed that you want and I'll include in subsequent posting.

Science Fiction Programs - available via broadband TV


Friday, May 22, 2009

Say goodbye to TV program guides

I was reading my Sunday paper last week and went to the "Living" section where I noticed the TV programming guide. How quaint - TV programing was listed by time. The very concept of time based TV goes away when you cut the cord.

All broadband TV and movie programming is available right now with no need to ensure you set your DVR or ensure you are near a TV or ensuer you "sling" your favorite programming to your computer or mobile device. Programming is no longer "linear" or serial based on time, but is available concurrently and continuously since programing is contained on a server available 24/7/365. There is no "prime time".

So, the next time you are reading the paper (itself quaint), take a look at the TV programming guide and think about how much better you have it once you've cut the cable TV cord.

Tuesday, May 12, 2009

How to Part 3 – Putting it all Together

In my last two “How To” posts, I described the Internet and TV Worlds with illustrations. This post shows you how to connect the two and “cut the cord”

The illustration to the right shows the Internet and TV worlds alongside of one another with a “wall” between them (which is often the case in many homes).

The next illustration shows the addition of a Digital Video Player and the path from your router through your Digital Video Player to your TV set. Your Digital Video Player can be connected to your router via wireless connection, an Ethernet cable, or a Powerline Ethernet connection.

Whichever broadband transmission method you select, your broadband connection transfers streaming video to your Digital Video Player. Software on your Digital Video Player enables you to interact with the streaming video in such a way that you can select and choose your programming in a manner similar to how you currently use your digital TV. Once you select a program, your Digital Video Player plays the program live on your TV.

Some example of Digital Video Players brands and models are:

Roku
Costs $99.00 ($10 more than the average monthly cable bill) and offers easy connections with Netflix and Amazon. Roku offers a 30 day money back guarantee.

TiVo
Offers a combination DVR with Digital Video Player and offers connections with NetFlix, Amazon, Disney, and a number of music services. Unlike Roku, TiVo may also charge a monthly fee for its TiVo service.

AppleTV
Connects your TV directly to broadband featuring easy integration with iTunes.

Xbox 360 acts as Digital Video Players when connected to a broadband connection featuring integration, for instance, with NetFlix and its own video marketplace.

I will discuss Digital Video Players in-depth in a later post including televisions and Blue-ray players that double as Digital Video Players.

Over time, TV sets will incorporate what is now Digital Video Players within their internal electronics so that these separate devices will no longer be needed. You will simply plug an Ethernet cable into the back of your TV like you plug a coax cable or just provide you TV your broadband wireless information and connect. This is precisely the path that cable took in its early days. Remember separate cable boxes with buttons to press for various channels? Eventually, TVs become “cable ready” incorporating the separate box electronics. The same will occur with broadband TV.

Finally, I would like to briefly sample broadband TV programming which I will cover in-depth through a number of later posts.

New programming is coming online every day as previous posts have illustrated. Some of the most popular broadband programming destination sites are:

Advertising Supported Sites

YouTube – known primarily for User Generated Content, YouTube just announced its intent to provide professionally produced advertiser supported content. See previous post Google Makes it Easier to Cut Cord.

Hulu – is a joint venture of Fox, NBC, and just announced Disney. Hulu is to professional video content what YouTube is to user generated content.

FanCast – is owned by Comcast – the country’s largest cable operator. Talk about hedging your bets! Cable ownership aside, it offers some very strong programming through partnerships with Hulu and through its own content.

Subscription / Rental Sites

Netflix – offers on-demand, streamed TV shows and Movies at no charge with their DVD subscription programs.

Amazon – Amazon offers a set of titles that can be viewed online. See recent post announcing HD programming.

iTunes – rent or buy titles and play through AppleTV or other Digital Playbackdevice. TV Shows and Movies are available for rent or purchase.


Whew. That was a lot of information. Don’t worry, since I’ll devote separate posts to Digital Video Players and Broadband Video Sites and “channels”.

To get started “cutting the cord”, I suggest trying broadband TV on a television that you do not currently have connected to cable and turn it into your broadband TV laboratory. Once you find you like the experience, continue adding Digital Video Players to additional TV’s expanding your broadband connected TVs. With enough TV’s connected through broadband, cut the cord completely as shown in the figure to the right.

Thursday, April 30, 2009

Disney - Cutting the Cord

Walt Disney has agreed to add content and to invest in online video site Hulu. When the deal closes, Hulu will be able to boast content from News Corp, NBC Universal, and now Disney.


Disney will offer -length episodes of its most popular prime-time shows from its ABC network, ABC Family, Disney Channel and SOAPnet will be streamed on Hulu on an ad-supported basis including:


Full-length episodes of ABC primetime programs like Lost, Grey's Anatomy, Desperate Housewives, Ugly Betty, Samantha Who?, Scrubs, Private Practice and popular late night talk show Jimmy Kimmel Live


Cable offerings such as ABC Family's Secret Life of the American Teenager and Disney Channel's Wizards of Waverly Place and Phineas and Ferb.


Full-length episodes of hit ABC Family series like The Secret Life of the American Teenager and Greek

Popular series from ABC Daytime and SOAPnet like General Hospital and The View


Classic series from ABC's library like Hope and Faith, Less Than Perfect, Commander in Chief, Who Wants To Be A Millionaire and Dancing with the Stars


The Disney announcement adds to those recent announcements by YouTube and Amazon that greatly enhance the programming value of broadband video providing you even more reasons to cut the cable TV cord.

Friday, April 24, 2009

How to Part 2: Home TV

This is the second post in a series that show you the basics of how to cut the cable TV cord.

There are second world that most households with broadband access enjoy - the home world of TV. The illustration on the right shows an illustrative Cable TV, Satellite TV, or TV via phone set-up.

In our example, a cable signal comes through a coax cable into your home which is connected to a cable box - in the illustration a digital cable box - which turns the cable signal into channels which you watch on your TV.

Many households connect a Digital Video Recorder (DVR) to their cable boxes to record and store their favorite programming for viewing at any time - called time phasing.

For some households, gaming devices like Microsoft Xbox 360, Sony Playstation, or Nintendo Wii are connected directly to TV's. Almost all of today's gaming devices have internet connectivity which will be useful for when we talk about viewing broadband video.

Finally, we can't forget about the humble TV. Manufactuers are building in devices that connect TVs directly to broadband video requiring no other devices.

In my next "How to" post, I'll describe how to link the world of the internet to the world of TV.

Tuesday, April 21, 2009

Amazon HD - Cut Cable TV Cord and Lose the Blue Ray

Amazon announced today that that its customers can rent box-office favorites and purchase top TV shows in HD from Amazon Video On Demand. Amazon joined YouTube this week in announcing expanded movie and TV content libraries available via broadband.

Customers can select from more than 500 HD TV shows and movies from major studios and networks including Warner Bros. Entertainment Inc., Sony Pictures, Paramount Pictures, Metro-Goldwyn-Mayer Studios Inc., Universal Studios Home Entertainment and Showtime Networks. Amazon Video On Demand offers 40,000 titles in total.


Bill Car, Amazon's VP Music and Video confirmed that Amazon's customers are asking for "movies and TV shows they can watch instantly on their television [via their broadband]"
. With movies and TV episodes in HD, Amazon Video On Demand (VOD) is providing customers with even more choices for entertainment without the need for cable or satellite TV.

To watch Amazon's HD Video on Demand library on your TV, you need a compatible devices (I'll explain these in my next series of posts) including these device manufacturers that have partnered with Amazon on their HD offering:

TV shows will be available on these platforms for purchase for $2.99 and recently released movies available for rent for $3.99 to $4.99.

As you will see, Amazon, YouTube (Google), NBC (Hulu) all realize the trend - that consumers are continuing to cut the cord and go direct through broadband connections to their TVs.

Monday, April 20, 2009

How To Part 1: Computer Home Networks

This is the first post in a series of posts that show you the basics of how to cut the cable TV cord.

There are two worlds that most households with broadband access enjoy - the world of the home computer network and the world of TV. Today, the two rarely meet.

The illustration on the right shows an illustrative home computer network.

Most broadband access is obtained through either a broadband cable from your cable company or broadband DSL access from your phone company.

Typically, cable or DSL modems are supplied by your cable or telephone company as a part of their service plans.

Your modem is typically connected to a router if you use more than one computer. For the purposes of our discussion, assume you have a wireless router which means your broadband internet access can be received by devices either wirelessly or via an Ethernet cable.

Connected to the router can be a number of computing devices including laptops, PC's, gaming consoles, and even printers.

I will assume for many households, this forms the basis of your home computer network. Today, home computer networks are used for accessing the world wide web, e-mail, social networking, downloading and listening to and watching music and movies.

In my next post, I'll describe the other home world - the world of the TV. After that post, I'll show how to bring the two together.

If you don't have broadband access, there are a number of providers and methods for obtaining access which is a prerequisite for viewing real-time or streaming video on the web.

Friday, April 17, 2009

Google Makes it Easier to Cut Cord

Google announced today that its YouTube video network will feature premium Hollywood studio movies and TV shows directly to consumers from a custom page. YouTube becomes the latest to offer first rate Hollywood programming directly on the web.

The premium content will be free to view, but supported by ads with ad revenue shared with content owners. Content from Sony, CBS, Metro-Goldwyn-Mayer, BBC, and independent film studio Lions Gate Entertainment will be available through YouTube.

YouTube still lags Hulu – many of Hulu’s programs are only a few days old when their air on TV where most of those announced by YouTube are older “re-runs” including Fantasy Island, Alf, Party of Five, and the Adams Family.

The move is significant in that YouTube dominates the digital video market with over 100 million unique visitors in January 2009 and over 6.3 billion videos viewed according to ComScore media. YouTube has over 11 times as many videos viewed as the next largest distributor – Fox Interactive.

In addition, YouTube continues to move its model from videos featuring user generated content to those featuring professionally developed programs. Advertisers have been reluctant to place ads next to user generated content for fear that what’s playing could damage their brands. Instead, Google sees premium content as providing a higher return per view compared to user generated content.

In total this means more choice, more flexibility for those of you who have cut the TV cord.

Monday, April 13, 2009

Give Yourself a Raise!

Slide 1

There is a strong economic argument for "Cutting the Cable TV Cord".


As of January 2008, the average monthly home cable bill was $84.59, up 21 percent from two years earlier, according to the Federal Communications Commission – 21%!


The FCC also issued a strongly worded to the cable industry saying that “cable customers have been receiving less from cable companies, but paying the same price or in some cases more…over double the rates they paid a decade ago”.


For what are Americans paying? Most cable packages are organized into multiple tiers:


· Basic Tier – includes local broadcast and public television

· Expanded Basic Tier

· Digital Tier – higher quality, number of channels requiring “digital” set-top box

· Premium Networks – HBO, Showtime, etc.

· Pay-per-View – Programs (e.g. movies) that cost $3-4 per viewing

· Video on Demand – subscribed programming delivered like a virtual “DVR”


What about cable industry regulation? Only basic cable is regulated and this is only the case if Local Franchising Authorities deem that there is insufficient competition.


This means that the vast majority of new programming features and higher end cable is not regulated. Cable companies can charge any rate they choose for non-basic tiers. With basic cable running approximately $50 across the country, many subscribers pay well in excess of the average rate of $85.


Let’s assume you are the average subscriber and you “cut the cable TV cord”. This means that you would save $85/month or $1,020/year. However, this is with post-tax money. We get paid in pre-tax money.


Assume you are in the 15% marginal tax bracket meaning you pay 15% of each extra dollar you earn in Federal Income Taxes next year (2009) from $16,700 to $67,900 per year for married, filing jointly status.


Cutting the cable TV cord is therefore equivalent to a $1,200 annual pay raise. This does not consider state and local taxes. For example, in Pennsylvania where I live, this amounts to 4.2% per dollar above federal rates.


If you are filing single and you earn an extra dollar from in the $33,951-$82,250 annual income range, then you pay 25% marginal tax rate.


Cutting the cable TV cord is equivalent to a $1,360 annual pay raise.


If you make $67,900/year - the high end of the 15% married filing jointly marginal tax rate range - then the increase of $1,200 in pre-tax “pay” is like receiving a 1.8% annual pay raise - which is probably more than you received last year.


While these “pay increases” are not equal to the 21% two year increase the cable companies enjoyed over the past two years, it’s within your control and who can say that in this economy. Best of all, there are many other benefits including more choice and flexibility that go along with these savings.